25D - AGMT RECORDKEEPING SVC 457 PLAN

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SECTION 7 - ANNUITIES 7.1 You may, but are not required to, purchase an annuity under this Agreement. We will reduce the amount We apply to purchase an annuity by any amount necessary to pay applicable taxes and/or annuity purchase fees. We will provide any retirement annuity based on Our existing business practices and rates then in effect for agreements in the same class of business as this Agreement. 7.2 We may require proof that the recipient of annuity payments is living as of each and every date on which any annuity payment becomes payable. We may withhold payments until We receive the requested proof. 7.3 We will issue an individual certificate to each Participant for whom an annuity is purchased. Also, if the state where We issue this Agreement requires, We will issue a certificate to each Participant contributing to the Plan., Any certificate issued will not cancel or alter any terms of this Agreement. 7.4 If We discover that the annuitant's age or any other fact pertaining to the purchase or determination of an annuity amount was misstated, or We discover a clerical error, We will make the following adjustments: (A) We will correct the amount of annuity payable retroactively to the date We purchased the annuity; (B) We will deduct any overpayments resulting from misstatements or errors from amounts payable following the correction of the annuity amount; (C) We will pay any underpayments resulting from misstatements or errors in full with the next payment following the correction of the annuity amount. 7.5 We guarantee that We will purchase annuities on an actuarial basis that is at least equal to the following actuarial basis for a fixed annuity. (A) Form of Annuity: 100% Fixed Life Annuity Actuarial Assumptions: Mortality - 1950 Male Group Annuity Valuation Table, with age setback of 4.8 years plus one-fifth of the number of years from 1895 to the annuitant's year of birth; Interest - 2%; Loading — 8.25%. We will review this guaranteed actuarial basis annually and may change it after We give ninety (90) days' advance written notice to You. We may only change the guaranteed actuarial basis following the first twelve (12) months after the Agreement's Effective Date. We may only change it once in any twelve (12) month period unless You and We agree in writing to make an exception. UL .!l it a 1 u. GA -2020 -IA -0805 1 1 City of Santa Ana - Investment Agreement (specimea).doc 25D-52