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EXHIBIT 4(h)(3)
MERRILL LYNCH LIFE INSURANCE COMPANY
TAX-SHELTERED ANNUITY ENDORSEMENT
The Certificate to which this endorsement is attached is amended as follows:
1. The Annuitant is the Participant, "you." The Certificate under the
contract is not transferable and may not be sold, assigned, discounted or
pledged as security for a loan or as security for any other obligation, other
than to Merrill Lynch Life Insurance Company. Annuity payments under the
contract cannot be surrendered, commuted, assigned, encumbered or anticipated
in any way. Your interest under the contract is nonforfeitable.
2. Premiums must be paid by an organization described in Section
403(b)(1)(A) of the Internal Revenue Code, "IRC." The Participants must be
employees of such an organization. Premium payments will be limited as
provided in IRC Section 402(g). Payments in excess of such amounts will be
returned by Merrill Lynch Life Insurance Company as permitted by law.
3. Distributions under the contract must satisfy the minimum distribution
rules in IRC Section 401(a)(9), including the incidental death benefit
requirement. The Annuity Date may not be later than the Required Beginning
Date. The term "Required Beginning Date" will mean the following:
a.) For years beginning before 1997, Required Beginning Date means
April 1 of the calendar year following the calendar year you attain
age 70 1/2. If you attained age 70 1/2 before January 1, 1988, or you
are in a governmental plan or a church plan [as defined in IRC Section
401(a)(9)(C)], Required Beginning Date means April 1 of the calendar
year following the later of (i) the calendar year you attain age 70
1/2, or (ii) the calendar year you retire.
b.) For years beginning in 1997 and after, Required Beginning Date
means April 1 of the calendar year following the later of (i) the
calendar year you attain age 70 1/2, or (ii) the calendar year you
retire. Except in the case of a governmental plan or a church plan
[as defined in IRC Section 401(a)(9)(C)], if you are a 5% owner (as
defined in IRC Section 416), Required Beginning Date means April 1 of
the calendar year following the calendar year you attain age 70 1/2.
4. If you die before the Annuity Date and your surviving spouse continues
this contract in force under the provisions of the contract, the Annuity Date
may be any date prior to the later of (i) December 31 of the calendar year
immediately following the calendar year in which you died, and (ii) December 31
of the calendar year in which you would have obtained age 70 1/2.
5. Under "OPTION 1 - PAYMENTS OF A FIXED AMOUNT," the term over which
annuity payments are made may not exceed your life expectancy, or the joint
life expectancy of you or your spouse (or, if you are not married, a designated
second person), at the Annuity Date.
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If you die before the Annuity Date, the term may not exceed the life expectancy
of your surviving spouse.
6. Under "OPTION 2 - PAYMENTS FOR A FIXED PERIOD," the period may not
exceed your life expectancy, or the joint life expectancy of you and your
spouse (or, if you are not married, a designated second person), at the Annuity
Date. If you die before the Annuity Date, the period may not exceed the life
expectancy of your surviving spouse.
7. Under "OPTION 4 - LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10 OR 20
YEARS," the guarantee period selected may not exceed your life expectancy or
the joint life expectancy of you and your spouse, (or, if you are not married a
designated second person), at the Annuity Date. If you die before the Annuity
Date, the guarantee period selected may not exceed the life expectancy of your
surviving spouse.
8. Under "OPTION 5 - LIFE ANNUITY WITH GUARANTEED RETURN OF NET ACCOUNT
VALUE," the period required for distribution of the net account value may not
exceed your life expectancy or the joint life expectancy of you and your
spouse, (or, if you are not married, a designated second person), at the
annuity date. If you die before the Annuity Date, the period required for
distribution of such net account value may not exceed the life expectancy of
your surviving spouse.
9. If "OPTION 6 - JOINT AND SURVIVOR LIFE ANNUITY" is chosen, the second
person must be your spouse if you have a spouse. If you die before the Annuity
Date, Option 6 is not available to the beneficiary.
10. Life expectancy will be determined according to Internal Revenue
Service regulations and rulings.
11. Distributions for the contract attributable to contributions made
pursuant to a salary reduction agreement may be made only (1) after you attain
age 59 1/2, (2) upon separation from service, (3) upon death or disability, or
(4) for an amount not greater than the total of such contributions in the case
of hardship. Any withdrawal from the contract shall effect a surrender of the
contract to the extent of such withdrawal. Any premium payments thereafter may
be made only with Merrill Lynch Life Insurance Company's consent.
12. You, your spouse, or your former spouse, who is the alternate payee
under a Qualified Domestic Relations Order, "Distributee," may elect to have
any portion of an eligible rollover distribution paid directly to an eligible
retirement plan. This is called a direct rollover. An eligible rollover
distribution, "Distribution," is any distribution unless it is:
a.) One of a series of substantially equal periodic payments (made
at least annually) for the life (or life expectancy) of the
Distributee or the joint lives (or joint life expectancies) of the
Distributee and the Distributee's Designated Beneficiary, or for a
specified period of ten years or more; or
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b.) Any required distribution under IRC Section 403(b)(10); or
c.) Any part of a distribution that is not includible in income.
An eligible retirement plan is an IRC Section 403(b) annuity or an individual
retirement plan as defined in Internal Revenue Code Section 7701(a)(37), "IRA,"
that accepts Distributions. However, in the case of a Distribution to the
surviving spouse, an eligible retirement plan is an IRA.
This section 12 applies to all Distributions made after December 31, 1992.
This endorsement controls over any contrary provisions of the contract.
MERRILL LYNCH LIFE INSURANCE COMPANY
By /s/ Barry G. Skolnick
Secretary