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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
Pre-Effective Amendment No.
Post-Effective Amendment No.
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT
OF 1940 X
Amendment No.
IDS LIFE VARIABLE ACCOUNT 10
___________________________________________________________________
(Exact Name of Registrant)
IDS Life Insurance Company
___________________________________________________________________
(Name of Depositor)
80 South 8th Street, P.O. Box 534, Minneapolis, MN 55440-0534
___________________________________________________________________
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-4085
Susan Miley, IDS Tower 10, Minneapolis, MN 55440-0010
___________________________________________________________________
(Name and Address of Agent for Service)
It is proposed that this filing will become effective: As soon as
practicable.
DECLARATION REQUIRED BY RULE 24f-2(a)(1)
An indefinite number of shares of securities of the Registrant is
being registered by this Registration Statement.
The Registrant hereby amends the Registration Statement under the
Securities Act of 1933 on such date or dates as may be necessary to
delay its effective date until the Registrant shall file a further
amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933 or until the
Registration Statement shall become effective on such date as the
Commission acting pursuant to Section 8(a) may determine.
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CROSS REFERENCE SHEET
Cross reference sheet showing location in the prospectus of the information
called for by the items enumerated in Part A and B of Form N-4.
Negative answers omitted from prospectus are so indicated.
<TABLE><CAPTION>
PART A PART B
Section Section in Statement of
Item No. in Prospectus Item No. Additional Information
<S> <C> <S> <C>
1 Cover page 15 Cover page
2 Key terms 16 Table of Contents
3(a) Expense Summary 17(a) NA
(b) The ________ Annuity in brief (b) NA
(c) About IDS Life*
4(a) Condensed financial information
(b) Performance information 18(a) NA
(c) NA (b) NA
(c) Independent Auditors
5(a) Cover page; About IDS Life (d) NA
(b) The variable account (e) NA
(c) The funds (f) Principal underwriter
(d) Cover page; The funds
(e) Voting rights 19(a) Distribution of the contracts*; About
(f) NA IDS Life*
(g) NA (b) Charges*
6(a) Charges 20(a) Principal underwriter
(b) Charges (b) Principal underwriter
(c) Charges (c) NA
(d) Distribution of the contracts (d) NA
(e) The funds
(f) NA 21(a) Performance information
(b) Performance information
7(a) Buying your annuity; Benefits in case of
death; The annuity payout period 22 Calculating annuity payouts
(b) The variable account; Making the most of
your annuity, Transferring money between 23(a) NA
charge accounts
(c) The funds; Charges (b) NA
(d) Cover page
8(a) The annuity payout period
(b) Buying your annuity
(c) The annuity payout period
(d) The annuity payout period
(e) The annuity payout period
(f) The annuity payout period
9(a) Benefits in case of death
(b) Benefits in case of death
10(a) Buying your annuity; Valuing your
investment
(b) Valuing your investment
(c) Buying your annuity; Valuing your
investment
(d) NA
11(a) Surrendering your contract
(b) TSA - Special surrender provisions
(c) Surrendering your contract
(d) Buying your annuity
(e) The ________ Annuity in brief
12(a) Taxes
(b) Key terms
(c) NA
13 NA
14 Table of contents of the Statement of
Additional Information
*Designates section in the prospectus, which is hereby incorporated by reference in this statement of Additional Information.
/TABLE
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IDS Life ___________ Annuity
Prospectus
__________, 1995
The __________ Annuity is an individual deferred fixed/variable
annuity contract offered by IDS Life Insurance Company (IDS Life),
a subsidiary of American Express Financial Corporation. Purchase
payments may be allocated among different accounts, providing
variable and/or fixed returns and payouts. The annuity is
available for qualified and nonqualified retirement plans.
IDS Life Variable Account 10
Sold by: IDS Life Insurance Company, IDS Tower 10, Minneapolis, MN
55440-0010, Telephone: 612-671-3131.
THIS PROSPECTUS CONTAINS THE INFORMATION ABOUT THE VARIABLE ACCOUNT
THAT YOU SHOULD KNOW BEFORE INVESTING. Refer to "The variable
account" in this prospectus.
THE PROSPECTUS IS ACCOMPANIED OR PRECEDED BY THE RETIREMENT ANNUITY
MUTUAL FUND PROSPECTUS FOR IDS LIFE AGGRESSIVE GROWTH FUND, IDS
LIFE INTERNATIONAL EQUITY FUND, IDS LIFE CAPITAL RESOURCE FUND, IDS
LIFE MANAGED FUND, INC., IDS LIFE SPECIAL INCOME FUND, INC. AND IDS
LIFE MONEYSHARE FUND, INC. PLEASE KEEP THESE PROSPECTUSES FOR
FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION, OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
IDS LIFE IS NOT A FINANCIAL INSTITUTION, AND THE SECURITIES IT
OFFERS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY ANY FINANCIAL INSTITUTION NOR ARE THEY INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR
ANY OTHER AGENCY. INVESTMENTS IN THIS ANNUITY INVOLVE INVESTMENT
RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
A Statement of Additional Information (SAI) dated ___________
(incorporated by reference into this prospectus) has been filed
with the Securities and Exchange Commission (SEC), and is available
without charge by contacting IDS Life at the telephone number above
or by completing and sending the order form on the last page of
this prospectus. The table of contents of the SAI is on the last
page of this prospectus.
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Table of Contents
Key Terms.......................................................
The _________ Annuity in brief..................................
Expense summary.................................................
Condensed financial information.................................
Financial statements............................................
Performance information.........................................
The variable account............................................
The funds.......................................................
IDS Life Aggressive Growth Fund............................
IDS Life International Equity Fund.........................
IDS Life Capital Resource Fund.............................
IDS Life Managed Fund......................................
IDS Life Special Income Fund...............................
IDS Life Moneyshare Fund...................................
The fixed account...............................................
Buying your annuity.............................................
The retirement date........................................
Beneficiary................................................
How to make purchase payments..............................
Charges.........................................................
Contract administrative charge.............................
Mortality and expense risk fee.............................
Surrender charge...........................................
Premium taxes..............................................
Valuing your investment.........................................
Number of units............................................
Accumulation unit value....................................
Net investment factor......................................
Factors that affect variable subaccount
accumulation units.........................................
Making the most of your annuity.................................
Automated dollar-cost averaging............................
Transferring money between accounts........................
Transfer policies..........................................
How to request a transfer or a surrender...................
Surrendering your contract......................................
Surrender policies.........................................
Receiving payment when you request a surrender.............
TSA special surrender provisions................................
Changing ownership..............................................
Benefits in case of death.......................................
The annuity payout period.......................................
Annuity payout plans.......................................
Death after annuity payouts begin..........................
Taxes...........................................................
Voting rights...................................................
Distribution of the contracts...................................
About IDS Life .................................................
Regular and special reports.....................................
Table of contents of the Statement of Additional Information....
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Key terms
These terms can help you understand details about your annuity.
Annuity - A contract purchased from an insurance company that
offers tax-deferred growth of the investment until earnings are
withdrawn, and that can be tailored to meet the specific needs of
the individual during retirement.
Accumulation unit - A measure of the value of each variable
subaccount before annuity payouts begin.
Annuitant - The person on whose life or life expectancy the annuity
payouts are based.
Annuity payouts - An amount paid at regular intervals under one of
several plans available to the owner and/or any other payee. This
amount may be paid on a variable or fixed basis or a combination of
both.
Annuity unit - A measure of the value of each variable subaccount
used to calculate the annuity payouts you receive.
Beneficiary - The person designated to receive annuity benefits in
case of the owner's or annuitant's death.
Close of business - When the New York Stock Exchange (NYSE) closes,
normally 3 p.m. Central time.
Code - Internal Revenue Code of 1986, as amended.
Contract value - The total value of your annuity before any
applicable surrender charge and any contract administrative charge
have been deducted.
Contract year - A period of 12 months, starting on the effective
date of your contract and on each anniversary of the effective
date.
Fixed account - An account to which you may allocate purchase
payments. Amounts allocated to this account earn interest at rates
that are declared periodically by IDS Life.
IDS Life - In this prospectus, "we," "us," "our" and "IDS Life"
refer to IDS Life Insurance Company.
Mutual funds (funds) - _____________________ mutual funds or
portfolios, each with a different investment objective. (See "The
funds.") You may allocate your purchase payments into variable
subaccounts investing in shares of any or all of these funds.
Owner (you, your) - The person who controls the annuity (decides on
investment allocations, transfers, payout options, etc.). Usually,
but not always, the owner is also the annuitant. The owner is
responsible for taxes, regardless of whether he or she receives the
annuity's benefits.
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Purchase payments - Payments made to IDS Life for an annuity.
Qualified annuity - An annuity purchased for a retirement plan
that is subject to applicable federal law and any rules of the plan
itself. These plans include:
o Individual Retirement Annuities (IRAs)
o Simplified Employee Pension Plans (SEPs)
o Section 401(k) plans
o Custodial and trusteed pension and profit-sharing plans
o Tax-Sheltered Annuities (TSAs)
o Section 457 plans.
All other annuities are considered nonqualified annuities.
Retirement date - The date when annuity payouts are scheduled to
begin. This date is first established when you start your
contract. You can change it in the future.
Surrender charge - A deferred sales charge that may be applied if
you surrender your annuity before the retirement date.
Surrender value - The amount you are entitled to receive if you
surrender your annuity. It is the contract value minus any
applicable surrender charge and contract administrative charge.
Valuation date - Any normal business day, Monday through Friday,
that the NYSE is open. The value of each variable subaccount is
calculated at the close of business on each valuation date.
Variable account - Consists of _________ separate subaccounts to
which you may allocate purchase payments; each invests in shares of
one mutual fund. (See "The variable account.") The value of your
investment in each variable subaccount changes with the performance
of the particular fund.
The __________ Annuity in brief
Purpose: The _____________ Annuity is designed to allow you to
build up funds for retirement. You do this by making one or more
investments (purchase payments) that may earn returns that increase
the value of the annuity. Beginning at a specified future date
(the retirement date), the annuity provides lifetime or other forms
of payouts to you or to anyone you designate.
Ten-day free look: You may return your annuity to your financial
advisor or our Minneapolis office within 10 days after it is
delivered to you and receive a full refund of the contract value.
No charges will be deducted. However, you bear the investment risk
from the time of purchase until return of the contract; the refund
amount may be more or less than the payment you made. (Exception:
if the law so requires, all of your purchase payment will be
refunded.)
Accounts: You may allocate your purchase payments among any or all
of:
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o _______ variable subaccounts, each of which invests in a
mutual fund with a particular investment objective. The value
of each variable subaccount varies with the performance of the
particular fund. We cannot guarantee that the value at the
retirement date will equal or exceed the total of purchase
payments allocated to the variable subaccounts. (p.__)
o one fixed account, which earns interest at rates that are
adjusted periodically by IDS Life. (p.__)
Buying your annuity: Your financial advisor will help you complete
and submit an application. Applications are subject to acceptance
at our Minneapolis office. You may buy a nonqualified annuity or a
qualified annuity including an IRA. Payment may be made either in
a lump sum or installments:
o Minimum initial purchase payment - $2,000 ($1,000 for qualified
annuities) unless you pay in installments by means of a bank
authorization or under a group billing arrangement such as a
payroll deduction.
o Minimum additional purchase payment - $50.
o Minimum installment payment - $50 monthly; $23.08 biweekly
(scheduled payment plan billing).
o Maximum first-year payment(s) - $50,000 to $1,000,000 depending
on your age.
o Maximum payment for each subsequent year - $50,000 to 100,000
depending upon your age. (p.__)
Transfers: Subject to certain restrictions you may redistribute
your money among accounts without charge at any time until annuity
payouts begin, and once per contract year among the variable
subaccounts thereafter. You may establish automated transfers
among the fixed account and variable subaccount(s). (p.__)
Surrenders: You may surrender all or part of your contract value at
any time before the retirement date. You also may establish
automated partial surrenders. Surrenders may be subject to charges
and tax penalties and may have other tax consequences; also,
certain restrictions apply. (p.__)
Changing ownership: You may change ownership of a nonqualified
annuity by written instruction, however, such changes of
nonqualified annuities may have federal income tax consequences.
Certain restrictions apply concerning change of ownership of a
qualified annuity. (p.__)
Benefits in case of death: If you or the annuitant dies before
annuity payouts begin, we will pay the beneficiary an amount at
least equal to the contract value. (p.__)
Annuity payouts: The contract value of your investment can be
applied to an annuity payout plan that begins on the retirement
date. You may choose from a variety of plans to make sure that
payouts continue as long as they are needed. If you purchased a
qualified annuity, the payout schedule must meet the requirements
of the qualified plan. Payouts may be made on a fixed or variable
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PAGE 8
basis, or both. Total monthly payouts may include amounts from
each variable subaccount and the fixed account. During the annuity
payout period, you cannot be invested in more than five variable
subaccounts at any one time unless we agree otherwise. (p.__)
Taxes: Generally, your annuity grows tax-deferred until you
surrender it or begin to receive payouts. (Under certain
circumstances, IRS penalty taxes may apply.) Even if you direct
payouts to someone else, you will still be taxed on the income if
you are the owner. (p.__)
Charges: Your ___________ Annuity is subject to a $30 annual
contract administrative charge, a 1.25% mortality and expense risk
charge, a surrender charge, and any applicable premium taxes that
may be imposed by state or local governments and deducted as
applicable either from your purchase payments or upon total
withdrawal or when annuity payouts begin. (p.__)
Expense summary
The purpose of this summary is to help you understand the various
costs and expenses associated with your annuity.
You pay no sales charge when you purchase the annuity. All costs
that you bear directly or indirectly for the variable subaccounts
and underlying mutual funds are shown below. Some expenses may
vary as explained under "Contract charges."
Direct charges. These are deducted directly from the contract
value. They include:
Surrender charge: You may pay surrender charges on any surrender
within the first eight contract years. The surrender charge starts
at 7% of any purchase payments surrendered during the first three
contract years, then declines by 1% per year from 6% in the fourth
year to 2% in the eighth year. No charge applies after 8 contract
years. Contract earnings may be surrendered without charge at
anytime.
Annual contract administrative charge: $30, waived when contract
value, or total purchase payments (less any payments surrendered)
equals or exceeds $25,000 on your contract anniversary.
Indirect charges. The variable account pays these expenses out of
its assets. They are reflected in the variable subaccount's daily
accumulation unit value and are not charged directly to your
account. They include:
Mortality and expense risk fee: 1.25% per year, deducted from the
variable account as a percentage of the average daily net assets of
the underlying fund.
Operating expenses of underlying mutual funds: management fees and
other expenses deducted as a percentage of average net assets as
follows: *
[Table to be added by amendment]<PAGE>
PAGE 9
* Premium taxes imposed by some state and local governments are not
reflected in this table.
** Annualized operating expenses of underlying mutual funds at
_______, 1995.
<TABLE>
<CAPTION>
IDS Life IDS Life IDS Life IDS Life
Aggressive International Capital IDS Life Special IDS Life
Growth Equity Resource Managed Income Moneyshare
Example:* You would pay the following expenses on a $1,000 investment, assuming 5% annual
return and surrender at the end of each time period:
<S> <C> <C> <C> <C> <C> <C>
1 year $ $ $ $ $ $
3 years
5 years
10 years
You would pay the following expenses on the same investment assuming no surrender or the
selection of an annuity payout plan at the end of each time period:
1 year $ $ $ $ $ $
3 years
5 years
10 years
</TABLE>
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
* In this example, the $30 annual contract administrative charge is
approximated as a ____% charge based on the expected average
contract size.
Financial statements
[To be filed by amendment]:
Performance information
Performance information for the variable subaccounts may appear
from time to time in advertisements or sales literature. In all
cases, such information reflects the performance of a hypothetical
investment in a particular account during a particular time period.
Calculations are performed as follows:
Simple yield - Account HM (investing in Moneyshare Fund): Income
over a given seven-day period (not counting any change in the
capital value of the investment) is annualized (multiplied by 52)
by assuming that the same income is received for 52 weeks. This
annual income is then stated as an annual percentage return on the
investment.
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Compound yield - Account HM (investing in Moneyshare Fund):
Calculated like simple yield, except that, when annualized, the
income is assumed to be reinvested. Compounding of reinvested
returns increases the yield as compared to a simple yield.
Yield - Account HS (investing in Special Income): Net investment
income (income less expenses) per accumulation unit during a given
30-day period is divided by the value of the unit on the last day
of the period. The result is converted to an annual percentage.
Average annual total return: Expressed as an average annual
compounded rate of return of a hypothetical investment over a
period of one, five and 10 years (or up to the life of the account
if it is less than 10 years old). This figure reflects deduction
of all applicable charges, including the contract administrative
charge, mortality and expense risk fee and surrender charge,
assuming a surrender at the end of the illustrated period.
Optional total return quotations may be made that do not reflect a
surrender charge deduction (assuming no surrender).
Aggregate total return: Represents the cumulative change in the
value of an investment over a specified period of time (reflecting
change in a subaccount's accumulation unit value). This figure
reflects the deduction of all applicable charges, including the
contract administrative charge, mortality and expense risk fee and
surrender charge, assuming a surrender at the end of the
illustrated period. Optional total return quotations may be made
that do not reflect a surrender charge deduction (assuming no
surrender). The calculation assumes reinvestment of investment
earnings. Aggregate total return may be shown by means of
schedules, charts or graphs.
Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of
the fund in which the subaccount invests, and the market conditions
during the given time period. Such information is not intended to
indicate future performance. Because advertised yields and total
return figures include all charges attributable to the annuity,
which has the effect of decreasing advertised performance,
subaccount performance should not be compared to that of mutual
funds that sell their shares directly to the public. (See the SAI
for a further description of methods used to determine yield and
total return for the subaccounts.)
If you would like additional information about actual performance,
contact your financial advisor.
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The variable account
Purchase payments can be allocated to any or all of the subaccounts
of the variable account that invest in shares of the following
funds:
SubAccount
IDS Life Aggressive Growth Fund HA
IDS Life International Equity Fund HI
IDS Life Capital Resource Fund HC
IDS Life Managed Fund HD
IDS Life Special Income Fund HS
IDS Life Moneyshare Fund HM
Each variable subaccount meets the definition of a separate account
under federal securities laws. Income, capital gains and capital
losses of each subaccount are credited or charged to that
subaccount alone. No variable subaccount will be charged with
liabilities of any other account or of our general business. All
obligations arising under the contracts are general obligations of
IDS Life.
The variable account was established under Minnesota law on August
23, 1995 and is registered as a unit investment trust under the
Investment Company Act of 1940 (the 1940 Act). This registration
does not involve any supervision of our management or investment
practices and policies by the SEC.
The funds
IDS Life Aggressive Growth Fund
Objective: capital appreciation. Invests primarily in common stock
of small-and medium-size companies. The fund also may invest in
warrants or debt securities or in large well-established companies
when the portfolio manager believes such investments offer the best
opportunity for capital appreciation.
IDS Life International Equity Fund
Objective: capital appreciation. Invests primarily in common stock
of foreign issuers and foreign securities convertible into common
stock. The fund also may invest in certain international bonds if
the portfolio manager believes they have a greater potential for
capital appreciation than equities.
IDS Life Capital Resource Fund
Objective: capital appreciation. Invests primarily in U.S. common
stocks listed on national securities exchanges and other securities
convertible into common stock, diversified over many different
companies in a variety of industries.
IDS Life Managed Fund
Objective: maximum total investment return. Invests primarily in
U.S. common stocks listed on national securities exchanges,
securities convertible into common stock, warrants, fixed income
securities (primarily high-quality corporate bonds) and
money-market instruments. The fund invests in many different
companies in a variety of industries.<PAGE>
PAGE 12
IDS Life Special Income Fund
Objective: to provide a high level of current income while
conserving the value of the investment for the longest time period.
Invests primarily in high-quality, lower-risk corporate bonds
issued by many different companies in a variety of industries, and
in government bonds.
IDS Life Moneyshare Fund
Objective: maximum current income consistent with liquidity and
conservation of capital. Invests in high-quality money market
securities with remaining maturities of 13 months or less. The
fund also will maintain a dollar-weighted average portfolio
maturity not exceeding 90 days. The fund attempts to maintain a
constant net asset value of $1 per share.
The Internal Revenue Service (IRS) has issued final regulations
relating to the diversification requirements under Section 817(h)
of the Code. Each mutual fund intends to comply with these
requirements.
The U.S. Treasury and the IRS have indicated they may provide
additional guidance concerning how many variable subaccounts may be
offered and how many exchanges among variable subaccounts may be
allowed before the owner is considered to have investment control
and thus is currently taxed on income earned within variable
subaccount assets. We do not know at this time what the additional
guidance will be or when action will be taken. We reserve the
right to modify the contract, as necessary, to ensure that the
owner will not be subject to current taxation as the owner of the
variable subaccount assets.
We intend to comply with all federal tax laws to ensure that the
contract continues to qualify as an annuity for federal income tax
purposes. We reserve the right to modify the contract as necessary
to comply with any new tax laws.
IDS Life is the investment manager for each of the IDS Life funds.
The investment manager cannot guarantee that the funds will meet
their investment objectives. Please read the prospectuses for the
funds for complete information on investment risks, deductions,
expenses and other facts you should know before investing. It is
available by contacting IDS Life at the address or telephone number
on the front of this publication, or from your financial advisor.
The fixed account
Purchase payments can also be allocated to the fixed account. The
cash value of the fixed account increases as interest is credited
to the account. Purchase payments and transfers to the fixed
account become part of the general account of IDS Life, the
company's main portfolio of investments. Interest is credited
daily and compounded annually. We may change the interest rates
from time to time.
Because of exemptive and exclusionary provisions, interests in the
fixed account have not been registered under the Securities Act of
1933 (1933 Act), nor is the fixed account registered as an<PAGE>
PAGE 13
investment company under the 1940 Act. Accordingly, neither the
fixed account nor any interests in it are generally subject to the
provisions of the 1933 or 1940 Acts, and we have been advised that
the staff of the SEC has not reviewed the disclosures in this
prospectus that relate to the fixed account. Disclosures regarding
the fixed account, however, may be subject to certain generally
applicable provisions of the federal securities laws relating to
the accuracy and completeness of statements made in prospectuses.
Buying your annuity
Your financial advisor will help you prepare and submit your
application, and send it along with your initial purchase payment
to our Minneapolis office. As the owner, you have all rights and
may receive all benefits under the contract. Annuities cannot be
owned in joint tenancy. You cannot buy an annuity or be an
annuitant if you are 91 or older. (In Pennsylvania, the annuitant
must be under age 79.)
When you apply, you can select:
o the account(s) in which you want to invest;
o how you want to make purchase payments; and
o a beneficiary.
The contract provides for allocation of purchase payments to the
subaccounts of the variable account and/or to the fixed account in
even 1% increments.
If your application is complete, we will process it and apply your
purchase payment to your account(s) within two days after we
receive it. If your application is accepted, we will send you a
contract. If we cannot accept your application within five days,
we will decline it and return your payment. We will credit
additional purchase payments to your account(s) at the next close
of business.
The retirement date
Upon processing your application we will establish the retirement
date to the maximum age or date as specified below. You can also
select a date within the maximum limits. This date can be aligned
with your actual retirement from a job, or it can be a different
future date, depending on your needs and goals and on certain
restrictions. You can also change the date, provided you send us
written instructions at least 30 days before annuity payouts begin.
For nonqualified annuities, the retirement date must be:
o no earlier than the 60th day after the contract's effective
date; and
o no later than the annuitant's 85th birthday (or before the 10th
contract anniversary, if purchased after age 75).
For qualified annuities, to avoid IRS penalty taxes, the retirement
date generally must be:
o on or after the annuitant reaches age 59 1/2; and<PAGE>
PAGE 14
o by April 1 of the year following the calendar year when the
annuitant reaches age 70 1/2.
If you are taking the minimum IRA or TSA distributions as required
by the Code from another tax-qualified investment, or in the form
of partial surrenders from this annuity, annuity payouts can start
as late as the annuitant's 85th birthday or the 10th contract
anniversary.
Certain restrictions on retirement dates apply to participants in
the Texas Optional Retirement Program. (See "Special surrender
provisions.")
Beneficiary
If death benefits become payable before the retirement date, your
named beneficiary will receive all or part of the contract value.
If there is no named beneficiary, then you or your estate will be
the beneficiary. (See "Benefits in case of death" for more about
beneficiaries.)
If single payment:
o Minimum purchase payment:
Nonqualified: $2,000
Qualified: $1,000
o Minimum additional purchase payment: $50
If installment payments:
o Minimum installment payment(s): $50 monthly; $23.08 biweekly
(scheduled payment plan billing)
Installments must total at least $600 in the first year.*
*If you make no purchase payments for 24 months, and your previous
payments total $600 or less, we have the right to give you 30 days'
written notice and pay you the total value of your contract in a
lump sum. This right does not apply to contracts sold to New
Jersey residents.
Maximum first-year payment(s):
This maximum is based on your age or age of the annuitant (whomever
is older) on the effective date of the contract.
Up to age 75 $1 million
76 to 85 $500,000
86 to 90 $50,000
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PAGE 15
Maximum payment for each subsequent year**: $100,000 Up to age 85
$ 50,000 Ages 86-90
**These limits apply in total to all IDS Life annuities you own.
We reserve the right to increase maximum limits. For qualified
annuities the qualified plan's limits on annual contributions also
apply.
How to make purchase payments
1 By letter
Send your check along with your name and account number to:
Regular mail:
IDS Life Insurance Company
Box 74
Minneapolis, MN 55440-0074
Express mail:
IDS Life Insurance Company
733 Marquette Avenue
Minneapolis, MN 55402
2 By scheduled payment plan
Your financial advisor can help you set up:
o an automatic payroll deduction, salary reduction, or other group
billing arrangement; or
o a bank authorization.
Charges
Contract administrative charge
This fee is for establishing and maintaining your records. We
deduct $30 from the contract value on your contract anniversary.
This $30 charge is waived if your contract value, or total purchase
payments less any payments surrendered, equals or exceeds $25,000
on your contract anniversary.
If you surrender your contract, the charge will be deducted at the
time of surrender regardless of the contact value or purchase
payments made. The charge cannot be increased and does not apply
after annuity payouts begin.
Mortality and expense risk fee
This fee is to cover the mortality risk and expense risk and is
applied daily to the variable subaccounts and reflected in the unit
values of the subaccounts. The variable subaccounts pay this fee
at the time that dividends are distributed from the funds in which
they invest. Annually the fee totals 1.25% of the variable <PAGE>
PAGE 16
subaccounts' average daily net assets. Approximately two-thirds of
this amount is for our assumption of mortality risk, and one-third
is for our assumption of expense risk. This fee does not apply to
the fixed account.
Mortality risk arises because of our guarantee to pay a death
benefit and our guarantee to make annuity payouts according to the
terms of the contract, no matter how long a specific annuitant
lives and no matter how long the entire group of IDS Life
annuitants live. If, as a group, IDS Life annuitants outlive the
life expectancy we have assumed in our actuarial tables, then we
must take money from our general assets to meet our obligations.
Expense risk arises because the contract administrative charge
cannot be increased and may not cover our expenses. Any deficit
would have to be made up from our general assets.
We do not plan to profit from the contract administrative charge.
However, we do hope to profit from the mortality and expense risk
fee. We may use any profits realized from this fee for any proper
corporate purpose, including, among others, payment of distribution
(selling) expenses. We do not expect that the surrender charge,
discussed in the following paragraphs, will cover sales and
distribution expenses.
Surrender charge
A surrender charge applies to all purchase payments surrendered in
the first eight contract years. The surrender amount you request
is determined by drawing from your total contract value in the
following order:
o First we surrender any contract earnings (contract value minus
all purchase payments received and not previously
surrendered). There is no surrender charge on contract
earnings. Note: Contract earnings are determined by looking
at the entire contract value, not the earnings of any
particular variable subaccount or the fixed account.
o If necessary, we surrender amounts representing purchase
payments not previously surrendered. The surrender charge
rate on these purchase payments is as follows:
Surrender charge as
percent of purchase
payments surrendered Contract year
7 1-3
6 4
5 5
4 6
3 7
2 8
0 After 8 years
The surrender charge is calculated so that the total amount minus
any surrender charge equals the amount you request.
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For a partial surrender, the surrender charge equals the amount
requested, divided by 1 less the surrender charge rate, times the
surrender charge rate.
Example of surrender charge on purchase payments:
you request a $1,000 partial surrender and the surrender charge
rate is 5%:
$1,000 partial surrender = $1,052.63
.95
Total amount surrendered.........$1,052.63
Surrender charge rate.............X 0.05
Total surrender charge ..........$ 52.63
Waiver of Surrender Charges
There are no surrender charges for:
o contract earnings
o minimum required distributions after you reach age 70 1/2;
(for certain qualified plans)
o contracts settled using an annuity payout plan; and
o death benefits.
If your contract includes a "Waiver of Surrender Charges for
Nursing Home Confinement" Annuity Endorsement, we will waive
surrender charges that are normally assessed upon full or partial
surrender if you provide proof satisfactory to us that, as of the
date you request the surrender, you or the annuitant are confined
to a nursing home and have been for the prior 90 days.
To qualify, the nursing home must meet the following criteria:
o be licensed by an appropriate licensing agency to provide
nursing care;
o provide 24-hour-a-day nursing services;
o have a doctor available for emergency situations;
o have a nurse on duty or on call at all times;
o maintain clinical records; and
o have appropriate methods for administering drugs.
To the extent permitted by state law, this endorsement is included
in contracts issued when the owner and annuitant are under age 76
on the date that we issue the contract.
Other information on charges: American Express Financial
Corporation makes certain custodial services available to some
custodial and trusteed pension and profit sharing plans and 401(k)
plans funded by IDS Life annuities. Fees for these services start
at $30 per calendar year per participant. A termination fee for
owners under 59 1/2 will be charged (fee waived in case of death or
disability).
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Possible group reductions: In some cases (for example an employer
making the annuity available to employees) lower sales and
administrative expenses may be incurred due to the size of the
group, the average contribution and the use of group enrollment
procedures. In such cases, we may be able to reduce or eliminate
the contract administrative and surrender charges. However, we
expect this to occur infrequently.
Premium taxes
Certain state and local governments impose premium taxes which may
reach to 3.5%. These taxes are dependent upon the state of
residence or the state in which the contract was sold and are
deducted as applicable. In some cases, premium taxes are deducted
from your purchase payments before they are allocated. In other
cases, the deduction is made when you surrender your contract or
when annuity payouts begin.
Valuing your investment
Here is how your accounts are valued:
Fixed account: The amounts allocated to the fixed account are
valued directly in dollars and equal the sum of your purchase
payments, plus interest earned, less any amounts surrendered or
transferred.
Variable subaccounts: Amounts allocated to the variable
subaccounts are converted into accumulation units. Each time you
make a purchase payment or transfer amounts into one of the
variable subaccounts, a certain number of accumulation units are
credited to your contract for that subaccount. Conversely, each
time you take a partial surrender, transfer amounts out of a
variable subaccount, or are assessed a contract administrative
charge, a certain number of accumulation units are subtracted from
your contract.
The accumulation units are the true measure of investment value in
each subaccount during the accumulation period. They are related
to, but not the same as, the net asset value of the underlying
fund. The dollar value of each accumulation unit can rise or fall
daily depending on the performance of the underlying mutual fund
and on certain fund expenses. Here is how unit values are
calculated:
Number of units
To calculate the number of accumulation units for a particular
subaccount, we divide your investment, after deduction of any
premium taxes, by the current accumulation unit value.
Accumulation unit value
The current accumulation unit value for each variable subaccount
equals the last value times the subaccount's current net investment
factor.
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Net investment factor
o Determined each business day by adding the underlying mutual
fund's current net asset value per share, plus per share amount
of any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the accumulation unit value may increase or decrease.
You bear this investment risk in a variable subaccount.
Factors that affect variable subaccount accumulation units
Accumulation units may change in two ways; in number and in value.
Here are the factors that influence those changes:
The number of accumulation units you own may fluctuate due to:
o additional purchase payments allocated to the variable
subaccount(s);
o transfers into or out of the variable subaccount(s);
o partial surrenders;
o surrender charges; and/or
o contract administrative charges.
Accumulation unit values may fluctuate due to:
o changes in underlying mutual fund(s) net asset value;
o dividends distributed to the variable subaccount(s);
o capital gains or losses of underlying mutual funds;
o mutual fund operating expenses; and/or
o mortality and expense risk fees.
Making the most of your annuity
Automated dollar-cost averaging
You can use automated transfers to take advantage of dollar-cost
averaging (investing a fixed amount at regular intervals). For
example, you might have a set amount transferred monthly from a
relatively conservative variable subaccount to a more aggressive
one, or to several others.
This systematic approach can help you benefit from fluctuations in
accumulation unit values caused by fluctuations in the market
value(s) of the underlying mutual fund(s). Since you invest the
same amount each period, you automatically acquire more units when
the market value falls, fewer units when it rises. The potential
effect is to lower the average cost per unit. For specific
features contact your financial advisor.
How dollar-cost averaging works
Amount Accumulation Number of units
Month invested unit value purchased
Jan $100 $20 5.00
Feb 100 16 6.25
Mar 100 9 11.11<PAGE>
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Apr 100 5 20.00
May 100 7 14.29
June 100 10 10.00
July 100 15 6.67
Aug 100 20 5.00
Sept 100 17 5.88
Oct 100 12 8.33
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more units
when the per unit market price is low
(arrow in table pointing to August) and fewer units when the per
unit market price is high.
You have paid an average price of only $10.81 per unit over the 10
months, while the average market price actually was $13.10.
Dollar-cost averaging does not guarantee that any variable
subaccount will gain in value, nor will it protect against a
decline in value if market prices fall. However, if you can
continue to invest regularly throughout changing market conditions,
it can be an effective strategy to help meet your long term goals.
Transferring money between accounts
You may transfer money from any one subaccount, or the fixed
account, to another subaccount or to the fixed account before the
annuity payouts begin. If we receive your request before the close
of business, we will process it that day. Requests received after
the close of business will be processed the next business day.
There is no charge for transfers. Before making a transfer, you
should consider the risks involved in switching investments.
We may suspend or modify transfer privileges at any time. Certain
restrictions apply to transfers involving the fixed account. (For
information on transfers after annuity payouts begin, see "The
annuity payout period.")
Transfer policies
o Before annuity payouts begin, you may transfer contract values
between the variable subaccounts, or from the variable
subaccount(s) to the fixed account at any time. However, if you
have made a transfer from the fixed account to the variable
subaccount(s), you may not make a transfer (including automated
transfers) from any variable subaccount back to the fixed
account until the next contract anniversary.
o You may transfer contract values from the fixed account to the
variable subaccount(s) once a year during a 31-day transfer
period starting on each contract anniversary (except for
automated transfers, which can be set up at any time for
transfer periods of your choosing subject to certain minimums.)
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o If we receive your transfer request within 30 days before the
contract anniversary date, the transfer from the fixed account
to the variable subaccount(s) will be effective on the
anniversary.
o If we receive your request on or within 30 days after the
contract anniversary date, the transfer from the fixed account
to the variable subaccount(s) will be effective on the day we
receive it.
o We will not accept requests for transfers from the fixed account
at any other time.
o Once annuity payouts begin, no transfers may be made to or from
the fixed account, but transfers may be made once per contract
year among the variable subaccounts. During the annuity payout
period, you cannot be invested in more than five variable
subaccounts at anyone time unless we agree otherwise.
How to request a transfer or a surrender
1 By letter
Send your name, account number, Social Security Number or Taxpayer
Identification Number and signed request for a transfer or
surrender to:
Regular mail:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Express mail:
IDS Life Insurance Company
733 Marquette Avenue
Minneapolis MN 55402
Minimum amount
Mail transfers: $250 or entire account balance
Mail surrenders: $250 or entire account balance
Maximum amount
Mail transfers: None (up to contract value)
Mail surrenders: None (up to contract value)
2 By phone
Call between 7 a.m. and 6 p.m. Central time:
1-800-437-0602 (toll free) or
(612) 671-4738 (Minneapolis/St. Paul area)
TTY service for the hearing impaired:
1-800-285-8846 (toll free)
Minimum amount
Phone transfers: $250 or entire account balance
Phone surrenders: $250 or entire account balance<PAGE>
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Maximum amount
Phone transfers: None (up to contract value)
Phone surrenders: $50,000
We answer phone requests promptly, but you may experience delays
when the call volume is unusually high. If you are unable to get
through, use the mail procedure as an alternative.
We will honor any telephone transfer or surrender request believed
to be authentic and will use reasonable procedures to confirm that
they are. This includes asking identifying questions and tape
recording calls. A telephone surrender will not be allowed within
30 days of a phoned-in address change. As long as the procedures
are followed, neither IDS Life nor its affiliates will be liable
for any loss resulting from fraudulent requests.
Telephone transfers or surrenders are automatically available. You
may request that telephone transfers or surrenders not be
authorized from your account by writing IDS Life.
3 By automated transfers and automated partial surrenders
Your financial advisor can help you set up automated transfers
among your accounts or partial surrenders from the accounts.
You can start or stop this service by written request or other
method acceptable to IDS Life. You must allow 30 days for IDS Life
to change any instructions that are currently in place.
o Automated transfers from the fixed account to any one of the
variable subaccount(s) may not exceed an amount that, if
continued, would deplete the fixed account within 12 months.
o Automated surrenders may be restricted by applicable law under
some contracts.
o You may not make additional purchase payments if automated
partial surrenders are in effect.
o Automated partial surrenders may result in IRS taxes and
penalties on all or part of the amount surrendered.
Minimum amount
Automated transfers or surrenders: $50
Maximum amount
Automated transfers or surrenders: None (except for automated
transfers from the fixed
account)
Surrendering your contract
As owner, you may surrender all or part of your contract at any
time before annuity payouts begin by sending a written request or
calling IDS Life. For total surrenders we will compute the value
of your contract at the close of business after we receive your
request. We may ask you to return the contract. You may have to <PAGE>
PAGE 23
pay surrender charges (see "Surrender charge") and IRS taxes and
penalties (see "Taxes"). No surrenders may be made after annuity
payouts begin.
Surrender policies
If you have a balance in more than one account and request a
partial surrender, we will withdraw money from all your accounts in
the same proportion as your value in each account correlates to
your total contract value, unless you request otherwise.
Receiving payment when you request a surrender
By regular or express mail:
o Payable to owner.
o Mailed to address of record.
By wire:
o Request that payment be wired to your bank;
o Bank account must be in the same ownership as your contract;
o Pre-authorization required. For instructions, contact your
financial advisor.
Payment normally will be sent within seven days after receiving
your request. However, we may postpone the payment if:
-the surrender amount includes a purchase payment check that
has not cleared;
-the NYSE is closed, except for normal holiday and weekend
closings;
-trading on the NYSE is restricted, according to SEC rules;
-an emergency, as defined by SEC rules, makes it impractical
to sell securities or value the net assets of the accounts; or
-the SEC permits us to delay payment for the protection of
security holders.
TSA special surrender provisions
Participants in Tax-Sheltered Annuities: The Code imposes certain
restrictions on your right as owner to receive early distributions
from a TSA:
o Distributions attributable to salary reduction contributions
made after Dec. 31, 1988, plus the earnings on them, or to
transfers or rollovers of such amounts from other contracts, may
be made from the TSA only if:
-you have attained age 59 1/2;
-you have become disabled as defined in the Code;
-you have separated from the service of the employer who
purchased the annuity; or
-the distribution is made to your beneficiary because of your
death.<PAGE>
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o If you encounter a financial hardship (within the meaning of the
Code), you may receive a distribution of all contract values
attributable to salary reduction contributions made after Dec.
31, 1988, but not the earnings on them.
o Even though a distribution may be permitted under the above
rules, it still may be subject to IRS taxes and penalties. (See
"Taxes.")
o The above restrictions on the right to receive a distribution do
not affect the availability of the amount credited to the
contract as of Dec. 31, 1988. The restrictions do not apply to
transfers or exchanges of contract value within the annuity, or
to another registered variable annuity contract or investment
vehicle available through the employer.
o If the contract has a loan provision, the right to receive a
loan from your fixed account is described in detail in your
contract. You may borrow from the contract value allocated to
the fixed account.
o For certain types of contributions under a TSA contract to be
excluded from taxable income, the employer must comply with
certain nondiscrimination requirements. You should consult your
employer to determine whether the nondiscrimination rules apply
to you.
Participation in the Portland Public Schools TSA program: IDS Life
will guarantee that your fixed account surrender value will not be
less than the purchase payments paid, less any amounts previously
surrendered, provided:
o all purchase payments under the contract have been allocated
only to the fixed account; and
o there have been no transfers of fixed account contract values to
any variable subaccount. If payments are allocated to a
variable subaccount or monies are transferred from the fixed
account to a variable subaccount, the guarantee does not apply.
Participants in the Texas Optional Retirement Program: You cannot
receive any distribution before retirement unless you become
totally disabled or end your employment at a Texas college or
university. This restriction affects your right to:
o surrender all or part of your annuity at any time; and
o move up your retirement date.
If you are in the program for only one year, the portion of the
purchase payments made by the state of Texas will be refunded to
the state with no surrender charge. These restrictions are based
on an opinion of the Texas Attorney General interpreting Texas law.
<PAGE>
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Changing ownership
You may change ownership of your nonqualified annuity at any time
by filing a change of ownership with us at our Minneapolis office.
The change will become binding upon us when we receive and record
it. We will honor any change of ownership request believed to be
authentic and will use reasonable procedures to assure that it is.
However, we take no responsibility for the validity of the change.
If you have a nonqualified annuity, you may lose your tax
advantages by transferring, assigning or pledging any part of it.
(See "Taxes.")
If you have a qualified annuity, you may not sell, assign,
transfer, discount or pledge your contract as collateral for a
loan, or as security for the performance of an obligation or for
any other purpose to any person except IDS Life. However, if the
owner is a trust or custodian, or an employer acting in a similar
capacity, ownership of a contract may be transferred to the
annuitant.
Benefits in case of death
If you or the annuitant dies (or, for qualified annuities, if the
annuitant dies) before annuity payouts begin, we will pay the
beneficiary as follows:
For contracts issued in all states except Oregon, Texas and
Washington:
If death occurs before the annuitant's 75th birthday, the
beneficiary receives the greatest of:
o the contract value;
o the contract value as of the most recent sixth contract
anniversary, minus any surrenders since that anniversary; or
o purchase payments, minus any surrenders.
If death occurs on or after the annuitant's 75th birthday, the
beneficiary receives the greater of:
o the contract value; or
o the contract value as of the most recent sixth contract
anniversary, minus any surrenders since that anniversary.
For contracts issued in Oregon, Texas and Washington:
If death occurs before the annuitant's 75th birthday, the
beneficiary receives the greater of:
o purchase payments minus any surrenders; or
o the contract value.
If death occurs on or after the annuitant's 75th birthday, the
beneficiary receives the contract value.
<PAGE>
PAGE 26
If your spouse is sole beneficiary under a nonqualified annuity and
you die before the retirement date, your spouse may keep the
annuity as owner. To do this your spouse must, within 60 days
after we receive proof of death, give us written instructions to
keep the contract in force.
Under a qualified annuity, if the annuitant dies before reaching
age 70 1/2 and before the retirement date, and the spouse is the
only beneficiary, the spouse may keep the annuity in force until
the date on which the annuitant would have reached age 70 1/2. To
do this, the spouse must give us written instructions within 60
days after we receive proof of death.
Payments: We will pay the beneficiary in a single sum unless you
have given us other written instructions, or the beneficiary may
receive payouts under any annuity payout plan available under this
contract if:
o the beneficiary asks us in writing within 60 days after we
receive proof of death;
o payouts begin no later than one year after death; and
o the payout period does not extend beyond the beneficiary's life
or life expectancy.
When paying the beneficiary, we will determine the contract's value
at the next close of business after our death claim requirements
are fulfilled. Interest, if any, will be paid from the date of
death at a rate no less than required by law. We will mail payment
to the beneficiary within seven days after our death claim
requirements are fulfilled. (See "Taxes.")
The annuity payout period
As owner of the contract, you have the right to decide how and to
whom annuity payouts will be made starting at the retirement date.
You may select one of the annuity payout plans outlined below, or
we will mutually agree on other payout arrangements. The amount
available for payouts under the plan you select is the contract
value on your retirement date. No surrender charges are deducted
under the payout plans listed below.
You also decide whether annuity payouts are to be made on a fixed
or variable basis, or a combination of fixed and variable. Amounts
of fixed and variable payouts depend on:
o the annuity payout plan you select;
o the annuitant's age and, in most cases, sex;
o the annuity table in the contract;
o the amounts you allocated to the account(s) at settlement.
In addition, for variable payouts only, amounts depend on the
investment performance of the subaccount(s) you select. These
payouts will vary from month to month because the performance of
the underlying mutual funds will fluctuate. (In the case of fixed
annuities, payouts remain the same from month to month.)
For information with respect to transfers between accounts after
annuity payouts begin, see Transfer policies.
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Annuity payout plans
You may choose any one of these annuity payout plans by giving us
written instructions at least 30 days before contract values are to
be used to purchase the payout plan.
o Plan A - Life annuity - no refund: Monthly payouts are made
until the annuitant's death. Payouts end with the last payout
before the annuitant's death; no further payouts will be made.
This means that if the annuitant dies after only one monthly payout
has been made, no more payouts will be made.
o Plan B - Life annuity with five, 10 or 15 years certain: Monthly
payouts are made for a guaranteed payout period of five, 10 or 15
years that the annuitant elects. This election will determine the
length of the payout period to the beneficiary if the annuitant
should die before the elected period has expired. The guaranteed
payout period is calculated from the retirement date. If the
annuitant outlives the elected guaranteed payout period, payouts
will continue until the annuitant's death.
o Plan C - Life annuity - installment refund: Monthly payouts are
made until the annuitant's death, with our guarantee that payouts
will continue for some period of time. Payouts will be made for at
least the number of months determined by dividing the amount
applied under this option by the first monthly payout, whether or
not the annuitant is living.
o Plan D - Joint and last survivor life annuity - no refund:
Monthly payouts are made to the annuitant and a joint annuitant
while both are living. If either annuitant dies, monthly payouts
continue at the full amount until the death of the surviving
annuitant. Payouts end with the death of the second annuitant.
o Plan E - Payouts for a specified period: Monthly payouts are
made for a specific payout period of 10 to 30 years chosen by the
annuitant. Payouts will be made only for the number of years
specified whether the annuitant is living or not. Depending on the
time period selected, it is foreseeable that an annuitant can
outlive the payout period selected. In addition, a 10% IRS penalty
tax could apply under this payout plan. (See "Taxes.")
Restrictions for some qualified plans: If you purchased a
qualified annuity, you must select a payout plan that provides for
payouts:
o over the life of the annuitant;
o over the joint lives of the annuitant and a designated
beneficiary;
o for a period not exceeding the life expectancy of the
annuitant; or
o for a period not exceeding the joint life expectancies
of the annuitant and a designated beneficiary.
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If we do not receive instructions: You must give us written
instructions for the annuity payouts at least 30 days before the
annuitant's retirement date. If you do not, we will make payouts
under Plan B, with 120 monthly payouts guaranteed.
If monthly payouts would be less than $20: We will calculate the
amount of monthly payouts at the time the contract value is used to
purchase a payout plan. If the calculations show that monthly
payouts would be less than $20, we have the right to pay the
contract value to the owner in a lump sum.
Death after annuity payouts begin
If you or the annuitant dies after annuity payouts begin, any
amount payable to the beneficiary will be provided in the annuity
payout plan in effect.
Taxes
Generally, under current law, any increase in your contract value
is taxable to you only when you receive a payout or surrender.
(See detailed discussion below.) Any portion of the annuity
payouts and any surrenders you request that represent ordinary
income are normally taxable. You will receive a 1099 tax
information form for any year in which a taxable distribution was
made.
Annuity payouts under nonqualified annuities: A portion of each
payout will be ordinary income and subject to tax, and a portion of
each payout will be considered a return of part of your investment
and will not be taxed. All amounts received after your investment
in the annuity is fully recovered will be subject to tax.
Tax law requires that all nonqualified deferred annuity contracts
issued by the same company to the same owner during a calendar year
are to be taxed as a single, unified contract when distributions
are taken from any one of such contracts.
Annuity payouts under qualified annuities: Under a qualified
annuity, the entire payout generally will be includable as ordinary
income and subject to tax except to the extent that contributions
were made with after-tax dollars. If you or your employer invested
in your contract with pre-tax dollars as part of a qualified
retirement plan, such amounts are not considered to be part of your
investment in the contract and will be taxed when paid to you.
Surrenders: If you surrender part or all of your contract before
your annuity payouts begin, your surrender payment will be taxed to
the extent that the value of your contract immediately before the
surrender exceeds your investment. You also may have to pay a 10%
IRS penalty for surrenders before reaching age 59 1/2. For
qualified annuities, other penalties may apply if you surrender
your annuity before your plan specifies that you can receive
payouts.
<PAGE>
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Death benefits to beneficiaries: The death benefit under an
annuity is not tax-exempt. Any amount received by the beneficiary
that represents previously deferred earnings within the contract,
is taxable as ordinary income to the beneficiary in the year(s) he
or she receives the payment(s).
Annuities owned by corporations, partnerships or trusts: Any
annual increase in the value of annuities held by such entities
generally will be treated as ordinary income received during that
year. This provision is effective for purchase payments made after
Feb. 28, 1986. However, if the trust was set up for the benefit of
a natural person only, the income will continue to be tax-deferred.
Penalties: If you receive amounts from your contract before
reaching age 59 1/2, you may have to pay a 10% IRS penalty on the
amount includable in your ordinary income. However, this penalty
will not apply to any amount received by you or your beneficiary:
o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal
periodic payments, made at least annually, over your life or
life expectancy (or joint lives or life expectancies of you and
your beneficiary); or
o if it is allocable to an investment before Aug. 14, 1982 (except
for qualified annuities).
For a qualified annuity, other penalties or exceptions may apply if
you surrender your annuity before your plan specifies that payouts
can be made.
Withholding, generally: If you receive all or part of the contract
value from an annuity, withholding may be imposed against the
taxable income portion of the payout. Any withholding that is done
represents a prepayment of your tax due for the year. You take
credit for such amounts on the annual tax return that you file.
If the payout is part of an annuity payout plan, the amount of
withholding generally is computed using payroll tables. You can
provide us with a statement of how many exemptions to use in
calculating the withholding. As long as you've provided us with a
valid Social Security Number or Taxpayer Identification Number, you
can elect not to have any withholding occur.
If the distribution is any other type of payment (such as a partial
or full surrender) withholding is computed using 10% of the taxable
portion. Similar to above, as long as you've provided us with a
valid Social Security Number or Taxpayer Identification Number, you
can elect not to have this withholding occur.
Some states also impose withholding requirements similar to the
federal withholding described above. If this should be the case,
any payment from which federal withholding is deducted may also
have state withholding deducted. The withholding requirements may
differ if payment is being made to a non-U.S. citizen or if the
payment is being delivered outside the United States.
<PAGE>
PAGE 30
Withholding from qualified annuities: If you receive directly all
or part of the contract value from a qualified annuity (except an
IRA), mandatory 20% income tax withholding generally will be
imposed at the time the payout is made. This mandatory withholding
is in place of the elective withholding discussed above. This
mandatory withholding will not be imposed if:
o instead of receiving the distribution check, you elect to have
the distribution rolled over directly to an IRA or another
eligible plan;
o the payout is one in a series of substantially equal periodic
payouts, made at least annually, over your life or life
expectancy (or the joint lives or life expectancies of you and
your designated beneficiary) or over a specified period of 10
years or more; or
o the payment is a minimum distribution required under the Code.
Payments made to a surviving spouse instead of being directly
rolled over to an IRA may also be subject to mandatory 20% income
tax withholding.
State withholding also may be imposed on taxable distributions.
Transfer of ownership of a nonqualified annuity: If you make such
a transfer without receiving adequate consideration, the transfer
is considered a gift, and also may be considered a surrender for
federal income tax purposes. If the gift is a currently taxable
event, the amount of deferred earnings at the time of the transfer
will be taxed to the original owner, who also may be subject to a
10% IRS penalty as discussed earlier. In this case, the new
owner's investment in the annuity will be the value of the annuity
at the time of the transfer.
Collateral assignment of a nonqualified annuity: If you
collaterally assign or pledge your contract, earnings on purchase
payments you made after Aug. 13, 1982 will be taxed to you like a
surrender.
Important: Our discussion of federal tax laws is based upon our
understanding of these laws as they are currently interpreted.
Federal tax laws or current interpretations of them may change.
For this reason and because tax consequences are complex and highly
individual and cannot always be anticipated, you should consult a
tax advisor if you have any questions about taxation of your
contract.
Tax qualifications
The contract is intended to qualify as an annuity for federal
income tax purposes. To that end, the provisions of the contract
are to be interpreted to ensure or maintain such tax qualification,
notwithstanding any other provisions of the contract. We reserve
the right to amend the contract to reflect any clarifications that
may be needed or are appropriate to maintain such qualification or
to conform the contract to any applicable changes in the tax
qualification requirements. We will send you a copy of any such
amendments.
<PAGE>
PAGE 31
Voting rights
As a contract owner with investments in the variable subaccount(s)
you may vote on important mutual fund policies until annuity
payouts begin. Once they begin, the person receiving them has
voting rights. We will vote fund shares according to the
instructions of the person with voting rights.
Before annuity payouts begin, the number of votes is determined by
applying the percentage interest in each variable subaccount to the
total number of votes allowed to the subaccount.
After annuity payouts begin, the number of votes is equal to:
o the reserve held in each subaccount for the contract,
divided by
o the net asset value of one share of the applicable underlying
mutual fund.
As we make annuity payouts, the reserve for the annuity decreases;
therefore, the number of votes also will decrease.
We calculate votes separately for each subaccount not more than 60
days before a shareholders' meeting. Notice of these meetings,
proxy materials and a statement of the number of votes to which the
voter is entitled, will be sent.
We will vote shares for which we have not received instructions in
the same proportion as the votes for which we have received
instructions. We also will vote the shares for which we have
voting rights in the same proportion as the votes for which we have
received instructions.
Distribution of the contracts
IDS Life, a registered broker/dealer, is the sole distributor of
the contract. IDS Life pays total commissions of up to 7.0% of the
total purchase payments received on the contracts. A portion of
this total commission is paid to district and division managers of
the selling representative.
About IDS Life
The ____________ Annuity is issued by IDS Life, a wholly owned
subsidiary of American Express Financial Corporation, which itself
is a wholly owned subsidiary of the American Express Company, a
financial services company headquartered in New York City.
IDS Life is a stock life insurance company organized in 1957 under
the laws of the State of Minnesota and located at IDS Tower 10,
Minneapolis, MN 55440-0010. IDS Life conducts a conventional life
insurance business in the District of Columbia and all states
except New York.
<PAGE>
PAGE 32
American Express Financial Advisors Inc. offers mutual funds,
investment certificates and a broad range of financial management
services. IDS Life offers insurance and annuities.
American Express Financial Advisors Inc. serves individuals and
businesses through its nationwide network of more than 175 offices
and more than 8000 financial advisors.
Other subsidiaries provide investment management and related
services for pension, profit-sharing, employee savings and
endowment funds of businesses and institutions.
Regular and special reports
Services
To help you track and evaluate the performance of your annuity, we
provide:
Quarterly statements showing the value of your investment.
Annual reports containing required information on the annuity and
its underlying investments.
A personalized annuity progress report detailing the cumulative
return since the contract was purchased and the average annual rate
of return on your investments. This report, which is unique in the
industry, is available upon request from your financial advisor.
Table of contents of the Statement of Additional Information
IDS Life Preferred Retirement Account.........
Performance information.......................
Calculating annuity payouts...................
Rating agencies...............................
Principal underwriter.........................
Independent auditors..........................
Mortality and expense risk fee................
Prospectus....................................
Financial statements -
[To be filed by amendment]
<PAGE>
PAGE 33
__________________________________________________________________
Please check the appropriate box to receive a copy of the Statement
of Additional Information for:
_____ IDS Life ___________ Annuity
_____ IDS Life ___________ Mutual Funds
Please return this request to:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Your name _______________________________________________________
Address _________________________________________________________
City ______________________ State ______________ Zip ___________
<PAGE>
PAGE 34
STATEMENT OF ADDITIONAL INFORMATION
for
__________ ANNUITY
IDS Life Variable Account 10
_____, 1995
IDS Life Variable Account 10 is a separate account established and
maintained by IDS Life Insurance Company (IDS Life).
This Statement of Additional Information, dated _____, 1995, is not
a prospectus. It should be read together with the Account's
prospectus, dated _____, 1995, which may be obtained from your
financial advisor, or by writing or calling IDS Life at the address
or telephone number below.
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440
612-671-3131
<PAGE>
PAGE 35
TABLE OF CONTENTS
IDS Life Preferred Retirement Account.........................p.
Performance Information.......................................p.
Calculating Annuity Payouts...................................p.
Rating Agencies...............................................p.
Principal Underwriter.........................................p.
Mortality and Expense Risk Fee................................p.
Independent Auditors..........................................p.
Prospectus....................................................p.
Financial Statements
[To be filed by Amendment]..........................p.
<PAGE>
PAGE 36
IDS LIFE PREFERRED RETIREMENT ACCOUNT
The __________ Annuity may be used to fund the IDS Life Preferred
Retirement Account (PRA) as a way to build tax-deferred retirement
income. The PRA can be used to supplement, or as an alternative
to, a non-deductible IRA or other retirement plan.
The advantages of the IDS Life Preferred Retirement Account over a
non-deductible IRA are shown below:
IDS Life Preferred Non-deductible IRA
Retirement
Account
_____________________________________________________________
Maximum $50,000 to $1 million $2,000 per year
amount you initially, then $50,000 (only $250 for
can to $100,000 per year non-working spouse)
contribute depending on your
age. (spouse can have
own plan)
______________________________________________________________
Highest age The later of age 85 70 1/2 years old
you can or the 10th contract
contribute anniversary
______________________________________________________________
Types of Any type: wages, Generally limited
income you investment income, to income from
can gifts, inheritance, employment
contribute etc.
______________________________________________________________
Records None required, but You must keep all
you must IDS Life furnishes you records yourself
keep regular reports
for your files
______________________________________________________________
Reports you None You must report all
must file contributions and
with the withdrawals each
IRS year
______________________________________________________________
Age at which The later of age 85 70 1/2 years old
you must or the 10th contract
begin anniversary
withdrawals
______________________________________________________________
<PAGE>
PAGE 37
PERFORMANCE INFORMATION
The following performance figures are calculated on the basis of
historical performance of the funds. The performance figures
relating to these funds assume that the contract was in existence
prior to _________________, which it was not. Beginning
__________________, when these funds became available as investment
options under the contract, actual values will be used for the
calculations.
Calculation of yield for Subaccount HM (Investing in IDS Life
Moneyshare Fund)
Subaccount HM, which invests in IDS Life Moneyshare Fund, Inc.,
calculates an annualized simple yield and a compound yield based on
a seven-day period.
The simple yield is calculated by determining the net change in the
value of a hypothetical subaccount having the balance of one
accumulation unit at the beginning of the seven-day period. (The
net change does not include capital change, but does include a pro
rata share of the annual contract charges, including the annual
contract administrative charge and the mortality and expense risk
fee.) The net change in the subaccount value is divided by the
value of the subaccount at the beginning of the period to obtain
the return for the period. That return is then multiplied by 365/7
to obtain an annualized figure. The value of the hypothetical
subaccount includes the amount of any declared dividends, the value
of any shares purchased with any dividend paid during the period
and any dividends declared for such shares. The variable
subaccount's yield does not include any realized or unrealized
gains or losses, nor does it include the effect of any applicable
surrender charge.
The subaccount calculates its compound yield according to the
following formula:
365/7
Compound Yield = [(return for seven-day period +1) ] - 1
On _____________, the account's annualized simple yield was ____%
and its compound yield was ____%.
The rate of return, or yield, on the subaccount's accumulation unit
may fluctuate daily and does not provide a basis for determining
future yields. Investors must consider, when comparing an
investment in subaccount HM with fixed annuities, that fixed
annuities often provide an agreed-to or guaranteed fixed yield for
a stated period of time, whereas the variable subaccount's yield
fluctuates. In comparing the yield of subaccount HM to a money
market fund, you should consider the different services that the
annuity provides.
Calculation of yield for Subaccount HS (Investing in IDS Life
Special Income Fund)
Subaccount HS invests in IDS Life Special Income Fund, Inc.
Quotations of yield will be based on all investment income earned
<PAGE>
PAGE 38
during a particular 30-day period, less expenses accrued during the
period (net investment income) and will be computed by dividing net
investment income per accumulation unit by the value of an
accumulation unit on the last day of the period, according to the
following formula:
YIELD = 2[(a-b + 1)6 - 1]
cd
where: a = dividends and investment income earned during the
period.
b = expenses accrued for the period (net of
reimbursements).
c = the average daily number of accumulation units
outstanding during the period that were entitled to
receive dividends.
d = the maximum offering price per accumulation unit on
the last day of the period.
Yield on the subaccount is earned from the increase in the net
asset value of shares of the fund in which the subaccount invests
and from dividends declared and paid by the fund, which are
automatically invested in shares of the fund.
On _______, 1995, the subaccount's annualized yield was ____%.
Calculation of average annual total return
Quotations of average annual total return for a subaccount will be
expressed in terms of the average annual compounded rate of return
of a hypothetical investment in the annuity contract over a period
of one, five and 10 years (or, if less, up to the life of the
account), calculated according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000.
T = average annual total return.
n = number of years.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
The following performance figures are calculated on the basis of
historical performance of the funds.
<PAGE>
PAGE 39
Average Annual Total Return For Period Ended: _______, 1995
<TABLE><CAPTION>
Average Annual Total Return with Surrender
Since
Subaccount investing in: 1 Year 5 Year 10 Year Inception
IDS LIFE
<S> <C> <C> <C> <C>
Aggressive Growth Fund (1/92)*
Capital Resource Fund (10/81)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
Average Annual Total Return without Surrender
Since
Subaccount investing in: 1 Year 5 Year 10 Year Inception
IDS LIFE
Aggressive Growth Fund (1/92)*
Capital Resource Fund (10/81)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
</TABLE>
* inception dates of the funds are shown in parentheses.
Aggregate Total Return
Aggregate total return represents the cumulative change in the
value of an investment over a specified period of time (reflecting
change in a subaccount's accumulation unit value) and is computed
by the following formula:
ERV - P
P
where: P = a hypothetical initial payment of $1,000.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
The Securities and Exchange Commission requires that an assumption
be made that the contract owner surrenders the entire contract at
the end of the one, five and ten year periods (or, if less, up to
the life of the account) for which performance is required to be
calculated. In addition, performance figures may be shown without
the deduction of a surrender charge. Total return figures reflect
the deduction of the contract administrative charge and mortality
and expense risk fee.
Performance of the subaccounts may be quoted or compared to
rankings, yields, or returns as published or prepared by
independent rating or statistical services or publishers or
publications such as The Bank Rate Monitor National Index,
Barron's, Business Week, Donoghue's Money Market Fund Report,
Financial Services Week, Financial Times, Financial World, Forbes,
Fortune, Global Investor, Institutional Investor, Investor's Daily,
Kiplinger's Personal Finance, Lipper Analytical Services, Money,<PAGE>
PAGE 40
Mutual Fund Forecaster, Newsweek, The New York Times, Personal
Investor, Stanger Report, Sylvia Porter's Personal Finance, USA
Today, U.S. News and World Report, The Wall Street Journal and
Wiesenberger Investment Companies Service.
CALCULATING ANNUITY PAYOUTS
The Variable Account
The following calculations are done separately for each of the
subaccounts of the variable account. The separate monthly payouts,
added together, make up your total variable annuity payout.
Initial Payout: To compute your first monthly payment, we:
o determine the dollar value of your annuity as of the valuation
date seven days before the retirement date and then deduct any
applicable premium tax.
o apply the result to the annuity table contained in the contract
or another table at least as favorable. The annuity table shows
the amount of the first monthly payment for each $1,000 of value
which depends on factors built into the table, as described below.
Annuity Units: The value of your subaccount is then converted to
annuity units. To compute the number credited to you, we divide
the first monthly payment by the annuity unit value (see below) on
the valuation date on (or next day preceding) the seventh calendar
day before the retirement date. The number of units in your
subaccount is fixed. The value of the units fluctuates with the
performance of the underlying mutual fund.
Subsequent Payouts: To compute later payouts, we multiply:
o the annuity unit value on the valuation date on or immediately
preceding the seventh calendar day before the payout is due; by
o the fixed number of annuity units credited to you.
Annuity Table: The table shows the amount of the first monthly
payment for each $1,000 of contract value according to the age and,
when applicable, the sex of the annuitant. (Where required by law,
we will use a unisex table of settlement rates.) The table assumes
that the contract value is invested at the beginning of the annuity
payout period and earns a 5% rate of return, which is reinvested
and helps to support future payouts.
Substitution of 3.5% Table: If you ask us at least 30 days before
the retirement date, we will substitute an annuity table based on
an assumed 3.5% investment rate for the 5% table in the contract.
The assumed investment rate affects both the amount of the first
payout and the extent to which subsequent payouts increase or
decrease. Using the 5% table results in a higher initial payment,
but later payouts will increase more slowly when annuity unit
values are rising and decrease more rapidly when they are
declining.
<PAGE>
PAGE 41
Annuity Unit Values: This value was originally set at $1 for each
variable subaccount. To calculate later values we multiply the
last annuity value by the product of:
o the net investment factor; and
o the neutralizing factor. The purpose of the neutralizing factor
is to offset the effect of the assumed investment rate built into
the annuity table. With an assumed investment rate of 5%, the
neutralizing factor is 0.999866 for a one day valuation period.
Net Investment Factor:
o Determined each business day by adding the underlying mutual
fund's current net asset value per share plus per share amount of
any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the net investment factor may be greater or less than
one, and the accumulation unit value may increase or decrease. You
bear this investment risk in a variable subaccount.
The Fixed Account
Your fixed annuity payout amounts are guaranteed. Once calculated,
your payout will remain the same and never change. To calculate
your annuity payouts we:
o take the value of your fixed account at the retirement date or
the date you have selected to begin receiving your annuity payouts;
then
o using an annuity table we apply the value according to the
annuity payout plan you select; and
o the annuity payout table we use will be the one in effect at the
time you choose to begin your annuity payouts. The table will be
equal to or greater than the table in your contract.
RATING AGENCIES
The following chart reflects the ratings given to IDS Life by
independent rating agencies. These agencies evaluate the financial
soundness and claims-paying ability of insurance companies based on
a number of different factors. This information does not relate to
the management or performance of the variable subaccounts of the
annuity. This information relates only to the fixed account and
reflects IDS Life's ability to make annuity payouts and to pay
death benefits and other distributions from the annuity.
Rating agency Rating
A.M. Best A+
(Superior)
Duff & Phelps AAA
Moody's Aa2
<PAGE>
PAGE 42
PRINCIPAL UNDERWRITER
The principal underwriter for the variable account is IDS Life,
which offers the variable annuities on a continuous basis.
INDEPENDENT AUDITORS
[To be filed by Amendment]
MORTALITY AND EXPENSE RISK FEE
IDS Life has represented to the SEC that:
IDS Life has reviewed publicly available information regarding
products of other companies. Based upon this review, IDS Life has
concluded that the mortality and expense risk fee is within the
range of charges determined by industry practice. IDS Life will
maintain at its administrative office, and make available on
request of the SEC or its staff, a memorandum setting forth in
detail the variable products analyzed and the methodology, and
results of, its comparative review.
IDS Life has concluded that there is a reasonable likelihood that
the proposed distribution financing arrangements made with respect
to the contracts will benefit the variable account and investors in
the contracts. The basis for such conclusion is set forth in a
memorandum which will be made available to the SEC or its staff on
request.
PROSPECTUS
The prospectus dated __________, 1995,is hereby incorporated in
this Statement of Additional Information by reference.
<PAGE>
PAGE 43
PART C.
Item 24. Financial Statements and Exhibits
(a) To be filed by amendment.
(b) Exhibits:
1. Resolution of the Board of Directors of IDS Life establishing
the IDS Life Variable Account 10 dated August 23, 1995, filed
electronically herewith.
2. Not applicable.
3. Not applicable.
4.1 Copy of Qualified Deferred Annuity Contract to be filed by
amendment.
4.2 Copy of Non-Qualified Deferred Annuity Contract filed
electronically herewith.
4.3 Copy of Deferred Annuity Contract (IRA) to be filed by
amendment.
5 Form of Application for IDS Life Variable to be filed by
amendment.
6.1 Copy of Certificate of Incorporation of IDS Life dated July
24, 1957, filed electronically herewith.
6.2 Copy of Amended By-Laws of IDS Life filed electronically
herewith.
7. Not applicable.
8. Not applicable.
9. Opinion of counsel to be filed by amendment.
10. Consent of Independent Auditors to be filed by amendment.
11. Financial Statement Schedules and Report of Independent
Auditors to be filed by amendment.
12. Not applicable.
13. Copy of schedule for computation of each performance quotation
provided in the Registration Statement in response to Item 21,
filed electronically herewith.
<PAGE>
PAGE 44
14. Financial Data Schedule to be filed by amendment.
15 Power of Attorney to sign this Registration Statement dated
August 23, 1995, filed electronically herewith.
Item 25. Directors and Officers of the Depositor (IDS
Life Insurance Company)
<TABLE><CAPTION>
Positions and
Name Principal Business Address Offices with Depositor
<S> <C> <C>
Timothy V. Bechtold IDS Tower 10 Vice President-Risk
Minneapolis, MN 55440 Management Products
David J. Berry IDS Tower 10 Vice President
Minneapolis, MN 55440
Alan R. Dakay IDS Tower 10 Vice President-
Minneapolis, MN 55440 Institutional Insurance
Marketing
Robert M. Elconin IDS Tower 10 Vice President
Minneapolis, MN 55440
Morris Goodwin Jr. IDS Tower 10 Vice President and Treasurer
Minneapolis, MN 55440
Lorraine R. Hart IDS Tower 10 Vice President-Investments
Minneapolis, MN 55440
David R. Hubers IDS Tower 10 Director
Minneapolis, MN 55440
James M. Jensen IDS Tower 10 Vice President-Insurance
Minneapolis, MN 55440 Product Development
Richard W. Kling IDS Tower 10 Director and President
Minneapolis, MN 55440
Paul F. Kolkman IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President
Ryan R. Larson IDS Tower 10 Vice President-
Minneapolis, MN 55440 Annuity Product
Development
Janis E. Miller IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Variable Assets
<PAGE>
PAGE 45
Item 25. Directors and Officers of the Depositor (IDS Life Insurance Company
(cont'd)
James A. Mitchell IDS Tower 10 Director, Chairman of
Minneapolis, MN 55440 the Board and Chief
Executive Officer
Barry J. Murphy IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Client Service
Mary O. Neal IDS Tower 10 Vice President-
Minneapolis, MN 55440 Sales Support
James R. Palmer IDS Tower 10 Vice President-Taxes
Minneapolis, MN 55440
Stuart A. Sedlacek IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-Assured
Assets
F. Dale Simmons IDS Tower 10 Vice President-
Minneapolis, MN 55440 Real Estate
Loan Management
William A. Stoltzmann IDS Tower 10 Vice President, General
Minneapolis, MN 55440 Counsel and Secretary
Melinda S. Urion IDS Tower 10 Director, Executive
Minneapolis, MN 55440 Vice President and
Controller
</TABLE>
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
IDS Life Insurance Company is a wholly owned subsidiary
of American Express Financial Corporation. American
Express Financial Corporation is a wholly owned
subsidiary of American Express Company (American
Express).
The following list includes the names of major
subsidiaries of American Express.
Jurisdiction
Name of Subsidiary of Incorporation
I. Travel Related Services
American Express Travel Related New York
Services Company, Inc.
II. International Banking Services
American Express Bank Ltd. Connecticut
<PAGE>
PAGE 46
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
III. Companies engaged in Investors
Diversified Financial Services
American Centurion Life Insurance Company New York
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
Jurisdiction
Name of Subsidiary of Incorporation
American Express Financial Advisors Inc. Delaware
American Express Financial Corporation Delaware
American Express Minnesota Foundation Minnesota
American Express Service Corporation Delaware
American Express Tax and Business
Services Inc. Minnesota
American Express Trust Company Minnesota
American Partners Life Insurance Company Arizona
IDS Advisory Group Inc. Minnesota
IDS Aircraft Services Corporation Minnesota
IDS Cable Corporation Minnesota
IDS Cable II Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
IDS Certificate Company Delaware
IDS Deposit Corp. Utah
IDS Fund Management Limited U.K.
IDS Futures Corporation Minnesota
IDS Futures III Corporation Minnesota
IDS Insurance Agency of Alabama Inc. Alabama
IDS Insurance Agency of Arkansas Inc. Arkansas
IDS Insurance Agency of Massachusetts Inc. Massachusetts
IDS Insurance Agency of Mississippi Inc. Mississippi
IDS Insurance Agency of Nevada Inc. Nevada
IDS Insurance Agency of New Mexico Inc. New Mexico
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Ohio Inc. Ohio
IDS Insurance Agency of Texas Inc. Texas
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS International, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
IDS Management Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Plan Services of California, Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Real Estate Services, Inc. Delaware
IDS Realty Corporation Minnesota
IDS Sales Support Inc. Minnesota
IDS Securities Corporation Delaware
Investors Syndicate Development Corp. Nevada
<PAGE>
PAGE 47
Item 27. Number of Contractowners
None.
Item 28. Indemnification
The By-Laws of the depositor provide that it shall
indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that
he is or was a director, officer, employee or agent of
this Corporation, or is or was serving at the direction
of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture,
trust or other enterprise, to any threatened, pending or
completed action, suit or proceeding, wherever brought,
to the fullest extent permitted by the laws of the State
of Minnesota, as now existing or hereafter amended,
provided that this Article shall not indemnify or protect
any such director, officer, employee or agent against any
liability to the Corporation or its security holders to
which he would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless
disregard of his obligations and duties.
Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to director, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Item 29. Principal Underwriters
(a) IDS Life is the principal underwriter for IDS Life
Accounts F, IZ, JZ, G, H and N, IDS Life Variable
Annuity Fund A, IDS Life Variable Annuity Fund B,
IDS Life Account RE, IDS Life Account MGA and IDS
Life Account SBS.
(b) This table is the same as our response to Item 25 of
this Registration Statement.
<PAGE>
PAGE 48
(c)
<TABLE><CAPTION>
Name of Net Underwriting
Principal Discounts and Compensation on Brokerage Other
Underwriter Commissions Redemption Commissions Compensation
<S> <C> <C> <C> <C>
IDS Life None None None None
</TABLE>
Item 30. Location of Accounts and Records
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) Registrant undertakes to file a post-effective
amendment to this registration statement as
frequently as is necessary to ensure that the
audited financial statements in the
registration statement are never more than 16
months old for so long as payments under the
variable annuity contracts may be accepted.
(b) Registrant undertakes to include either (1) as
part of any application to purchase a contract
offered by the prospectus, a space that an
applicant can check to request a Statement of
Additional Information, or (2) a post card or
similar written communication affixed to or
included in the prospectus that the applicant
can remove to send for a Statement of
Additional Information.
(c) Registrant undertakes to deliver any Statement
of Additional Information and any financial
statements required to be made available under
this Form promptly upon written or oral
request.
(d) Registrant represents that it is relying upon
the no-action assurance given to the American
Council of Life Insurance (pub. avail. Nov. 28,
1988). Further, Registrant represents that it
has complied with the provisions of paragraphs
(1)-(4) of that no-action letter.
<PAGE>
PAGE 49
SIGNATURES
As required by the Securities Act of 1933 and the Investment
Company Act of 1940, IDS Life Insurance Company, on behalf of the
Registrant has duly caused this Registration Statement to be signed
on its behalf in the City of Minneapolis, and State of Minnesota,
on the 6th day of September, 1995.
IDS LIFE VARIABLE ANNUITY ACCOUNT 10
(Registrant)
By IDS Life Insurance Company
(Sponsor)
By /s/ Richard W. Kling*
Richard W. Kling
President
As required by the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the
capacities indicated on the 6th day of September, 1995.
Signature Title
/s/ James A. Mitchell* Chairman of the Board
James A. Mitchell and Chief Executive
Officer
/s/ Richard W. Kling* Director and President
Richard W. Kling
/s/ David R. Hubers* Director
David R. Hubers
/s/ Paul F. Kolkman* Director and Executive Vice
Paul F. Kolkman President
/s/ Janis E. Miller* Director and Executive Vice
Janis E. Miller President, Variable Assets
/s/ Barry J. Murphy* Director and Executive Vice
Barry J. Murphy President, Client Service
<PAGE>
PAGE 50
Signature Title
/s/ Stuart A. Sedlacek* Director and Executive Vice
Stuart A. Sedlacek President, Assured Assets
/s/ Melinda S. Urion* Director, Executive Vice
Melinda S. Urion President and Controller
*Signed pursuant to Power of Attorney dated August 23, 1995, filed
electronically herewith.
___________________________
Mary Ellyn Minenko
<PAGE>
PAGE 51
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement is comprised of the following papers
and documents:
The Cover Page.
Cross-reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
IDS LIFE VARIABLE ACCOUNT 10
EXHIBIT INDEX
Exhibit 1 Resolution of the Board of Directors of IDS Life.
Exhibit 4.2 Copy of Non-Qualified Deferred Annuity Contract.
Exhibit 6.1 Copy of Certificate of Incorporation of IDS Life.
Exhibit 13 Copy of schedule for computation of each
performance quotation in response to Item 21.
Exhibit 15 Power of Attorney to sign this registration
Statement.
<PAGE>
PAGE 1
CONSENT IN WRITING IN LIEU
OF MEETING OF BOARD OF DIRECTORS
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY
By this consent in writing in lieu of a meeting of the Board of
Directors of IDS Life Insurance Company, a Minnesota corporation,
we the Directors of said Corporation do hereby consent to and
authorize the adoption of the following resolution to be effective
immediately upon receipt by the Secretary of the Corporation:
WHEREAS, This Board of Directors has determined that it
is desirable for the Corporation to develop a new flexible premium
deferred combination fixed and variable annuity contract to be
issued by the Corporation. Now, therefore, be it
RESOLVED, That IDS Life Variable Account 10, comprised
of one or more subaccounts, is hereby established as a separate
account in accordance with Section 61A.14, Minnesota Statutes;
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized and directed to establish such
subaccounts within such separate account as they determine to be
appropriate;
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized and directed, as they may deem
appropriate from time to time and in accordance with applicable
laws and regulations to: establish further any subaccounts; change
the designation of the separate account to another designation; and
deregister the separate account;
<PAGE>
PAGE 2
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized and directed to accomplish all
filings, registrations, and applications for exemptive relief
necessary to carry the foregoing into effect.
/s/ David R. Hubers /s/ Janis E. Miller
David R. Hubers Janis E. Miller
/s/ Richard W. Kling /s/ James A. Mitchell
Richard W. Kling James A. Mitchell
/s/ Paul F. Kolkman /s/ Barry J. Murphy
Paul F. Kolkman Barry J. Murphy
/s/ Stuart A. Sedlacek
Stuart A. Sedlacek
/s/ Melinda S. Urion
Melinda S. Urion
Received by the Vice President, General Counsel
and Secretary
August 23, 1995
/s/ William A. Stoltzmann
William A. Stoltzmann
<PAGE>
PAGE 1
IDS Life Insurance Company
IDS Tower 10
Minneapolis, Minnesota 55440
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
Annuitant: John Doe
Contract Date: October 1, 1995
Contract Number: 9300-1234567
Retirement Date: October 1, 2015
This is a deferred annuity contract. It is a legal contract
between you, as the owner, and us, IDS Life Insurance Company.
PLEASE READ YOUR CONTRACT CAREFULLY.
If the annuitant is living on the Retirement Date, upon your
request, we will begin to pay you monthly annuity payments. Any
payments made by us are subject to the terms of this contract.
We issue this contract in consideration of your application and the
payment of the purchase payments.
Signed for and issued by IDS Life Insurance Company in Minneapolis,
Minnesota, as of the contract date shown above.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE
INVESTMENT RESULTS OF THE VARIABLE SUBACCOUNTS, ARE VARIABLE AND
NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT. SEE PAGE 9 FOR VARIABLE
PROVISIONS.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS
If for any reason you are not satisfied with this contract, return
it to us or our representative within 10 days after you receive it.
Upon such cancellation we will refund an amount equal to the sum
of: (1) the contract value; and (2) any premium tax charges paid.
This contract will then be considered void from its start.
President
Secretary
<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions Important words and meanings/Page 3
General Provisions Entire contract; Incontestability;
Benefits based upon incorrect data;
State Laws; Federal Laws; Reports
to owner; Evidence of survival;
Protection of proceeds; Payments by
us; Voting rights/Page 4
Ownership and Beneficiary Owner rights; Change of ownership;
Beneficiary; Change of Beneficiary;
Assignment/Page 5
Payments to Beneficiary Describes options and amounts
payable upon death/Page 6
Purchase Payments Purchase payments amounts and
intervals; Payment limits;
Allocation of purchase
payments/Page 7
Contract Value Describes the fixed and variable
account contract values; Interest
to be credited; Contract
administrative charge; Premium
taxes; Transfers of Contract
Values/Page 8
Fixed and Variable Accounts Describes the variable subaccounts,
accumulation units and values; Net
investment factor; Mortality and
expense risk charge; Annuity unit
value/Page 9
Surrender Provisions Surrender of the contract for its
surrender value; Surrender Charges;
Waiver of Surrender Charges; Rules
for surrender/Page 11
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 13
Table of Settlement Rates Tables showing amount of first
variable annuity payment and the
guaranteed fixed annuity payments
for the various payment plans/Page
15<PAGE>
PAGE 3
CONTRACT DATA
Annuitant: John Doe
Contract Number: 9300-1234567
Contract Owner: John Doe
Contract Date: October 1, 1995
Retirement Date: October 1, 2015
Deferred Annuity Contract ("New Flexible Annuity")
Upon issuance of this contract your purchase payments have been
scheduled to be paid and applied to the fixed and variable
subaccounts as shown below. You may change the amount, frequency
and allocations as provided in this contract. Refer to the
purchase payments provision on Page 7.
Amount Submitted With Application: None
Scheduled Purchase Payment:
Annual Amount: $1,200
Purchase
Payments
Variable Allocation
Subaccounts Mutual Fund Percentage
HC IDS Life Capital Resource Fund 10%
HS IDS Life Special Income Fund 10%
HM IDS Life Moneyshare Fund 10%
HD IDS Life Managed Fund 10%
HI IDS Life International Equity Fund 10%
HA IDS Life Aggressive Growth Fund 10%
HE IDS Life Equity Income Fund 10%
HG IDS Life Global Yield Fund 10%
HB IDS Life Government Bond Fund 10%
Fixed Account 10%
Schedule of Surrender Charges
Surrender Charge Applied to
Contract Year Purchase Payments Surrendered
1 Through 3 7%
4 6%
5 5%
6 4%
7 3%
8 2%
Thereafter 0%
Contract Administrative Charge: $30 annually. Charge is waived if
contract value, or purchase payments less surrenders, equals or
exceeds $25,000. See Page 8.
Maximum Purchase Payments Permitted:
1st contract year: $1,000,000
Each contract year thereafter: $ 100,000<PAGE>
PAGE 4
Fixed Account Guaranteed Interest Rate: 3% Annual Effective Rate
As of the date this contract was issued, any amounts allocated to
the fixed account will earn interest, for the first year, at the
annual effective rate of 4.65%. New rates may be declared from
time to time.
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
annuitant - The person or persons on whose life monthly annuity
payments depend.
you, your - The owner of this contract. The owner may be someone
other than the annuitant. The owner may be changed as provided in
this contract.
we, our, us - IDS Life Insurance Company
accumulation unit - An accumulation unit is an accounting unit of
measure. It is used to calculate the contract value prior to
settlement.
annuity unit - An annuity unit is an accounting unit of measure.
It is used to calculate the value of annuity payments from the
variable subaccounts on and after the retirement date.
contract date - It is the date from which contract anniversaries,
contract years, and contract months are determined. Your contract
date is shown under Contract Data.
contract anniversary - The same day and month as the contract date
each year that the contract remains in force.
contract value - The sum of the Fixed Account Contract Value (which
receives a declared interest rate) and the Variable Account
Contract Value (which varies with the investment performance of the
elected subaccounts) for this contract.
retirement date - The date shown under Contract Data on which
annuity payments are to begin. This date may be changed as
provided in this contract. You will be notified prior to the
retirement date in order to select an appropriate annuity payment
plan.
settlement - The application of the contract value of this contract
to an Annuity Payment plan to provide annuity payments.
valuation date - A valuation date is each day the New York Stock
Exchange is open for trading.
valuation period - A valuation period is the interval of time
commencing at the close of business on each valuation date and
ending at the close of business on the next valuation date.
<PAGE>
PAGE 5
fixed account - The fixed account is made up of all our assets
other than those in any separate account.
variable subaccounts - The portfolios of the Variable Account. The
subaccounts available on the contract date are named under Contract
Data.
fixed annuity - A fixed annuity is an annuity with payments which
are guaranteed by us as to dollar amount during the annuity payment
period.
variable annuity - A fixed annuity is an annuity with payments
which (1) are not predetermined or guaranteed as to dollar amount;
and (2) vary in amount with the investment experience of one or
more of the variable subaccounts.
written request - A request in writing signed by you and delivered
to us at our home office.
GENERAL PROVISIONS
Entire Contract
This contract form is the entire contract between you and us.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under this contract.
Incontestable
This contract is incontestable from its date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age or sex that is incorrect, benefits will be recalculated on the
basis of the correct data. Any underpayments made by us will be
made up immediately. Any overpayments made by us will be
subtracted from the future payments.
State Laws
This contract is governed by the law of the state in which it is
delivered. The values and benefits of this contract are at least
equal to those required by such state.
Federal Laws
This contract is intended to qualify as an annuity contract for
Federal income tax purposes. To that end, the provisions of this
contract are to be interpreted to ensure or maintain such tax
qualification, despite any other provisions to the contrary. We <PAGE>
PAGE 6
reserve the right to amend this contract to reflect any
clarifications that may be needed or are appropriate to maintain
such qualification or to conform the contract to any applicable
changes in the tax qualification requirements. We will send you a
copy of any such amendments.
Reports to Owner
At least once a year we will send you a statement showing the
contract value and the cash surrender value of this contract. This
statement will be based on any laws or regulations that apply to
contracts of this type.
Evidence of Survival
Where any payments under this contract depend on the recipient or
annuitant being alive on a given date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making the payments.
Protection of Proceeds
Payments under this contract are not assignable by any beneficiary
prior to the time they are due. To the extent allowed by law,
payments are not subject to the claims of creditors or to the legal
process.
Payments By Us
All sums payable by us are payable from our home office. Any
payment of a variable annuity or surrender based on the variable
contract value shall be payable only from the variable subaccounts.
Voting Rights
So long as federal law requires, we will give certain voting rights
to contract owners. As contract owner, if you have voting rights
we will send a notice to you telling you the time and place of a
shareholder meeting. The notice will also explain matters to be
voted upon and how many votes you get.
OWNERSHIP AND BENEFICIARY
Owner's Rights
As long as the annuitant is living and unless otherwise provided in
this contract, you may exercise all rights and privileges provided
in this contract or allowed by us.
Change of Ownership
You can change the ownership of this contract by written request on
a form approved by us. The change must be made while the annuitant
is living. Once the change is recorded by us, it will take effect
as of the date of your request, subject to any action taken or
payment made by us before the recording.
<PAGE>
PAGE 7
Beneficiary
Beneficiaries are those you name, in a form satisfactory to us, to
receive benefits of this contract if you or the annuitant die while
this contract is in force.
Only those beneficiaries who are living when death benefits become
payable may share in the benefits, if any. If no beneficiary is
then living, we will pay the benefits to you, if living, otherwise
to your estate.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
recorded by us, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the
recording.
Assignment
While the annuitant is living, you can assign this contract or any
interest in it. Your interest and the interest of any beneficiary
is subject to the interest of the assignee. An assignment is not a
change of ownership and an assignee is not an owner as these terms
are used in this contract. Any amounts payable to the assignee
will be paid in a single sum.
A copy of any assignment must be submitted to us at our home
office. Any assignment is subject to any action taken or payment
made by us before the assignment was recorded at our home office.
We are not responsible for the validity of any assignment.
PAYMENTS TO BENEFICIARY
Death Benefits Before the Retirement Date
If the annuitant or owner dies before the retirement date and the
annuitant's age 75, while this contract is in force we will pay to
the beneficiary the greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary less any amounts surrendered; or
3. the purchase payments paid less any amounts surrendered.
If the annuitant or owner dies before the retirement date and on or
after the annuitant's 75th birthday, while this contract is in
force, we will pay to the beneficiary the greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary, less any amounts surrendered.
<PAGE>
PAGE 8
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the annuitant or owner whichever first
occurs. The beneficiary may elect to receive payment anytime
within 5 years after the date of death.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we receive
due proof of death; and
2. payments begin no later than one year after the date of death;
and
3. the plan provides payments over a period which does not exceed
the life of the beneficiary, or the life expectancy of the
beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the contract value as of the valuation date on or
next following the date on which due proof of death is received at
our Home Office.
Spouse Option to Continue Contract Upon Owner's Death
If the owner's death occurs prior to the retirement date, the
owner's spouse, if designated as sole beneficiary, may elect in
writing to forego receipt of the death benefit and instead continue
this contract in force as owner. The election by the spouse must
be made within 60 days after we receive due proof of death.
Death Benefit After the Retirement Date
If the annuitant or owner dies after the retirement date, the
amount payable, if any, will be as provided in the Annuity Payment
Plan then in effect.
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments you make for this contract and
the benefits it provides. Purchase payments must be paid or mailed
to us at our home office or to an authorized agent. If requested,
we'll give you a receipt for your purchase payments. Upon payment
to us, purchase payments become our property.
Net purchase payments are that part of your purchase payments
applied to the contract value. A net purchase payment is equal to
the purchase payment less any applicable premium tax charge.
<PAGE>
PAGE 9
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date this contract terminates by
surrender or otherwise; or (2) the date on which annuity payments
begin.
Subject to the Payment Limits Provision you may: (1) stop and/or
restart purchase payments; or (2) increase or decrease the amount
of your purchase payments; or (3) change the interval of your
purchase payments.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments in the
first or later contract years may not exceed the amounts shown
`under Contract Data. We reserve the right to increase the
maximums.
Minimum Purchase Payments - Upon issue of this contract, a purchase
payment intended as a Single Purchase Payment must be at least
$2,000. Additional purchase payments must be at least $50. If you
intend to make installment purchase payments such payments, on an
annualized basis, must be at least equal to $600.
We also reserve the right to cancel this contract if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 24 months; and
(2) less than $600 in purchase payments have been paid under this
contract. In this event we will give you 30 days written notice of
our intent to cancel this contract. Upon such cancellation we will
pay you the contract value in one sum. This contract will then
terminate.
Allocation of Purchase Payments
You instruct us on how you want your purchase payments allocated
among the fixed account and variable subaccounts. Your choice for
each account may be made in any whole percent from 0% to 100% as
long as the total adds up to 100%. Your allocation instructions as
of the Contract Date are shown under Contract Data. By written
request, or by another method agreed to by us, you may change your
choice of accounts or percentages. The first net purchase payment
will be allocated as of the end of the valuation period during
which we make an affirmative decision to issue this contract. Net
purchase payments after the first will be allocated as of the end
of the valuation period during which we receive the payment at our
home office.
<PAGE>
PAGE 10
CONTRACT VALUE
Contract Value
The contract value at any time is the sum of: (1) the Fixed
Account Contract Value; and (2) the Variable Account Contract
Value.
If: (1) part or all of the contract value is surrendered; or (2)
charges described herein are made against the contract value; then
a number of accumulation units from the variable subaccounts and an
amount from the fixed account will be deducted to equal such
amount. For the surrenders, deductions will be made from the fixed
or variable subaccounts that you specify. Otherwise, the number of
units from the variable subaccounts and the amount from the fixed
account will be deducted in the same proportion that you interest
in each bears to the total contract value.
Fixed Account Contract Value
The fixed account contract value at any time will be: (1) the sum
of all amounts credited to the fixed account under this contract;
less (2) any amounts deducted for charges or surrenders.
Interest to be Credited
We will credit interest to the fixed account contract value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine
from time to time. However, we guarantee that the rate will not be
less than the Guaranteed Interest Rate shown under the Contract
Data.
Interest to be Credited
We will credit interest to the fixed account contract value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine
from time to time. However, we guarantee that the rate will not be
less than the Guaranteed Interest Rate shown under Contract Data.
Variable Account Contract Value
The variable account contract value at any time will be: (1) the
sum of the value of all variable subaccount accumulation units
under this contract resulting from purchase payments so allocated,
or transfers among the variable and fixed accounts; less (2) any
units deducted for charges or surrenders.
Contract Administrative Charge
We charge a fee for establishing and maintaining our records for
this contract. The charge is $30 per year and is deducted from the
contract value at the end of each contract year or, if earlier,
when the contract is fully surrendered. We waive this charge if <PAGE>
PAGE 11
your contract value or your total purchase payments, less any
purchase payments surrendered, equals or exceeds $25,000. The
charge does not apply after settlement of this contract under an
annuity payment plan.
Premium Tax Charges
A charge will be made by us against the contract value of this
contract at the time that any premium taxes not previously deducted
are payable.
Transfers of Contract Values
While this contract is in force prior to the settlement date,
transfer of contract values may be made as outlined below:
1. You may transfer all or a part of the values held in one or more
of the variable subaccounts to another one or more of the
variable subaccounts. Subject to item 2, you may also transfer
values held in one or more of the variable subaccounts to the
fixed account.
2. On or within the 30 days after a contract anniversary you may
transfer values from the fixed account to one or more of the
variable subaccounts. Only one such transfer is allowed during
this period each year. If such a transfer is made, no transfers
from a variable subaccount to the fixed account may be made
until the next contract anniversary.
You may make a transfer by written request. Transfer requests may
also be made according to telephone procedures or automated
transfer procedures that are then currently in effect, if any.
There is no fee or charge for these transfers. However, the
minimum transfer amount is $250, or if less, the entire value in
the account from which the transfer is being made. Smaller
minimums may apply to automated transfer procedures. This transfer
privilege may be suspended or modified by us at any time.
FIXED AND VARIABLE ACCOUNT
The Fixed Accounts
The fixed account is our general account. It is made up of all of
our assets other than: (1) those in the variable subaccounts; and
(2) those in any other segregated asset account.
The Variable Account
The variable account is a separate investment account of ours. It
consists of several subaccounts which are named under Contract
Data. We have allocated a part of our assets for this contract to
the variable accounts. Such assets remain our property. However,
they may not be charged with the liabilities from any other
business in which we may take part.
<PAGE>
PAGE 12
Investments of the Variable Account
Purchase payments applied to the variable subaccounts will be
allocated as specified by the owner. Each variable subaccount will
buy, at net asset value, shares of the fund shown for that
subaccount under Contract Data or as later added or changed.
We may change the mutual funds from which the variable subaccounts
buy shares if laws or regulations change, the existing funds become
unavailable or in our judgment, the funds are no longer suitable
for the subaccounts. If any of these situations occur, we would
have the right to substitute funds other than those shown under
Contract Data. We may also add additional subaccounts investing in
other funds.
When required, we would first seek approval of the Securities and
Exchange Commission and, the insurance regulator of the state where
this contract is delivered.
Valuation of Assets
Mutual fund shares in the variable subaccounts will be valued at
their net asset value.
Variable Account Accumulation Units
The company will credit net purchase payments and amounts of
variable subaccount transfers in the form of accumulation units.
The number of units to be credited to each subaccount will be
determined by dividing the net amount allocated to that subaccount
by the unit value of the subaccount. In the case of the initial
net purchase payment, units will be credited on the date we make an
affirmative decision to issue this contract. For additional
payments, units will be credited as of the valuation period during
which the purchase payment is received.
The amount of any Contract Administrative Charge, or other
applicable charges or partial surrenders from the variable account
contract value will reduce the number of units credited to the
contract in the variable subaccounts. A transfer out of a
subaccount will reduce the number of units credited to the contract
in that subaccount while a transfer into a subaccount will increase
the number of units.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable
subaccounts was arbitrarily set at $1 when the first mutual fund
shares were bought. The value for any later valuation period is
found as follows:
The accumulation unit value for each variable subaccount for
the last prior valuation period is multiplied by the net
investment factor for the same account for the next following
valuation period. The result is the accumulation unit value.
The value of an accumulation unit may increase or decrease from
on valuation period to the next.
<PAGE>
PAGE 13
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable subaccount from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such subaccount for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of
a. the net asset value per share of the mutual fund held in the
variable subaccount determined at the end of the current
valuation period; plus
b. the per share amount of any dividend or capital gain
distributions made by the mutual fund held in the variable
subaccount, if the "ex-dividend" date occurs during the
current valuation period.
(2) is the net asset value per share of the mutual fund held in the
variable subaccount, determined at the end of the last prior
valuation period.
(3) is a factor representing the mortality and expense risk charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable subaccounts equal, on an
annual basis, to 1.25% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under contracts of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction will
be: (1) made from each variable subaccount; and (2) computed on a
daily basis.
Annuity Unit Value
The value of an Annuity Unit for each variable subaccount was
arbitrarily set at $1 when the first mutual funds were bought. The
value for any later valuation period is found as follows:
1. The annuity unit value for each variable subaccount for the last
prior valuation period is multiplied by the net investment
factor for the subaccount for the valuation period for which the
annuity unit value is being calculated.
2. The result is multiplied by an interest factor. This is done to
neutralize the assumed investment rate which is built into the
annuity tables on page 15.
<PAGE>
PAGE 14
SURRENDER PROVISIONS
Surrender
By written request and subject to the rules below you may:
1. surrender this contract for the total surrender value; or
2. partially surrender this contract for a part of the surrender
value.
Surrender Value
The surrender value at any time will be:
1. the contract value;
2. minus the contract administrative charge;
3. minus any surrender charge.
Surrender Charges
A surrender charge may apply during the first eight contract years.
To determine the charge during this period for a partial or total
surrender we first divide the contract value into two parts.
1. Contract earnings - This is the contract value minus the sum of
all purchase payments we have received that have not been
previously surrendered.
2. Purchase payments - These are the total purchase payments we
received that have not been previously surrendered.
We will then surrender your contract value in the following order
so that the amount surrendered, less any surrender charge that
applies, equals your requested surrender amount:
1. Contract Earnings, if any, are surrendered first. There is no
surrender charge on contract earnings.
2. Next, if necessary, we surrender purchase payments not
previously surrendered.
The surrender charge shown under Contract Data applies to purchase
payments surrendered.
Determining Contract Earnings
Contract Earnings are determined by looking at the entire contract
value, not just the earnings of a certain variable subaccount or
the fixed account.
For example, the gains you may have in a certain variable
subaccount or interest earned in the fixed account may be offset by
losses in another variable subaccount. This may result in not
having any contract earnings available at the time of surrender.
At the time of a surrender, we will surrender any amounts
representing contract earnings first in order to minimize any
applicable surrender charge.
<PAGE>
PAGE 15
Waiver of Surrender Charges
There are no surrender charges for:
1. Death benefit payments; or
2. Contracts settled under an Annuity Payment Plan
Rules For Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method agreed to by
us: (a) while this contract is in force; and (b) prior to the
earlier of the retirement date or the death of the annuitant.
2. Unless we agree otherwise, you must surrender an amount equal
to at least $250 or the entire contract value, if less. The
contract value after a partial surrender must be at least $600.
3. The amount surrendered, less any charges, will normally be paid
to you within seven days of our receipt of your written
surrender request and the return of this contract, if required.
For surrenders from the fixed account, we have the right to
defer payment to you for up to 6 months from the date we receive
your request.
4. For partial surrenders, if you do not specify from which
accounts the surrender is to be made, the surrender will be made
from the variable subaccounts and fixed account in the same
proportion as your interest in each bears to the contract
value.
5. Any amounts surrendered and charges which apply cannot be
repaid.
Upon surrender for the full surrender value this contract will
terminate. We may require that you return the contract to us
before we pay the full surrender value.
Suspension of Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable subaccounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is restricted; or
3. When an emergency exists as a result of which: (a) disposal of
securities held in the variable subaccounts is not reasonably
practicable; or (b) it is not reasonably practicable to fairly
determine the value of the net assets of the variable account;
or
4. During any other period when the Securities and Exchange
Commission, by order, so permits for the protection of security
holders.
<PAGE>
PAGE 16
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
ANNUITY PROVISIONS
Settlement
When settlement occurs, the contract value will be applied to make
annuity payments. The first payment will be made as of the
retirement date. This date is shown under Contract Data. Before
payments begin we will require satisfactory proof that the
annuitant is alive. We may also require that you exchange this
contract for a supplemental contract which provides the annuity
payments.
Change of Retirement Date
You may change the retirement date shown for this contract. Tell
us the new date by written request. However, the retirement date
may not be later than the later of: (1) the annuitant's 85th
birthday; or (2) the tenth contract anniversary. Also, if you
select a new date, it must be at least 30 days after we receive
your written request at our home office.
Annuity Payment Plans
Subject to the terms of this contract, annuity payments may be made
on a fixed dollar basis, a variable basis, or a combination of
both. You can schedule receipt of annuity payments according to
one of the Plans A through E below or another plan agreed to by us.
Plan A - This provides monthly annuity payments during the
lifetime of the annuitant. No payments will be made after the
annuitant dies.
Plan B - This provides monthly annuity payments during the
lifetime of the annuitant with a guarantee by us that payments
will be made for a period of at least five, ten, or fifteen
years. You must select the guaranteed period.
Plan C - This provides monthly annuity payments during the
lifetime of the annuitant with a guarantee by us that payments
will be made for a certain number of months. We determine the
number of months by dividing the amount applied under this Plan
by the amount of the first monthly annuity payment.
Plan D - Monthly payments will be paid during the lifetime of
the annuitant and a joint annuitant. When either the annuitant
or the joint annuitant dies we will continue to make monthly
payments during the lifetime of the survivor. No payments will
be paid after the death of both the annuitant and joint
annuitant.
<PAGE>
PAGE 17
Plan E - (Installments for a specified period) This provides
monthly annuity payments for a period of years. The period of
years may be no less than 10 nor more than 30.
By written request to us at least 30 days before the Retirement
Date, you may select the Plan. If not at least 30 days before the
Retirement Date we have not received at our home office your
written request to select a Plan, we will make fixed-dollar
payments according to Plan B with payments guaranteed for ten
years.
If the amount to be applied to a Plan would not provide an initial
monthly payment of at least $20, we have the right to make a lump
sum payment of the contract value.
Allocation of Contract Values at Settlement
At the time of settlement under an Annuity Payment Plan you may
reallocate your contract value to the Fixed Account to provide
fixed dollar payments and/or among the variable subaccounts to
provide variable annuity payments. Unless we agree otherwise, you
may use a maximum of five variable subaccounts at any one time
during settlement.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
will never be less than the amount of the first payment. At
settlement, the fixed account contract value will be applied to the
applicable Annuity Table. This will be done in accordance with the
Payment Plan chosen. The amount payable for each $1,000 so applied
is shown in Table B on page 16.
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of the variable subaccounts.
Determination of First Variable Annuity Payment
At settlement, the variable account contract value will be applied
to the applicable Annuity Table. This will be done: (1) on the
valuation date on or next preceding the 7th calendar day before the
retirement date; and (2) in accordance with the Payment Plan
chosen. The amount payable for the first payment for each $1,000
so applied is shown in Table A on page 15.
<PAGE>
PAGE 18
Variable Annuity Payments After the First Payment
Variable annuity payments after the first vary in amount. The
amount changes with the investment performance of the variable
subaccounts. The dollar amount of variable annuity payments after
the first is not fixed. It may change from month to month. The
dollar amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is divided by the
value of an annuity unit as of the valuation date on or next
preceding the 7th calendar day before the retirement date. This
result establishes the fixed number of annuity units for each
monthly annuity payment after the first. This number of annuity
units remains fixed during the annuity payment period.
2. The fixed number of annuity units is multiplied by the annuity
unit value as of the valuation date on or next preceding the 7th
calendar day before the date the payment is due. This result
establishes the dollar amount of the payment.
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
Exchange of Annuity Units
After annuity payouts begin, annuity units of any variable
subaccount may be exchanged for units of any of the other variable
subaccounts. This may be done no more than once a year. Unless we
agree otherwise you may use a maximum of five variable subaccounts
at any one time. Once annuity payments start no exchanges may be
made to or from any fixed annuity.
TABLE OF SETTLEMENT RATES
Table A below shows the amount of the first monthly variable
annuity payment, based on a 5% assumed investment return, for each
$1,000 of value applied under any Payment Plan. the amount of the
first and all subsequent monthly fixed dollar annuity payments for
each $1,000 of value applied under any Payment Plan will be based
on our fixed dollar Table of Settlement Rates in effect on the
settlement date. Such rates are guaranteed to be not less than
those shown in Table B. The amount of such annuity payments under
Plans A, B, and C will depend upon the sex and the adjusted age of
the annuitant on the date of settlement. The amount of such
annuity payments under Plan D will depend upon the sex and the
adjusted age of the annuitant and joint annuitant on the date of
settlement. Adjusted age shall be equal to the age nearest
birthday minus an "adjustment" depending on the calendar year of
birth of the annuitant as follows:
Calendar Year of Annuitant's Birth Adjustment
Prior to 1920 0
1920 through 1924 1
1925 through 1929 2
1930 through 1934 3
1935 through 1939 4
<PAGE>
PAGE 19
1940 through 1944 5
1945 through 1949 6
1950 through 1959 7
1960 through 1969 8
1970 through 1979 9
1980 through 1989 10
After 1989 11
TABLE A - Dollar Amount of First Monthly Variable Annuity Payment
Per $1000 Applied
<TABLE><CAPTION
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Adjusted Age of Female Annuitant
Life 5 Years 10 Years 15 Years With Adj.
Adj. Income Certain Certain Certain Refund Male 10 Years 5 Years Same 5 Years 10 Years
Age* M F M F M F M F M F Age Younger Younger Age Older Older
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 5.89 5.44 5.86 5.43 5.79 5.40 5.67 5.34 5.68 5.33 55 4.73 4.88 5.04 5.21 5.38
60 6.46 5.89 6.42 5.87 6.28 5.80 6.07 5.69 6.13 5.70 60 4.94 5.15 5.37 5.61 5.83
65 7.27 6.51 7.18 6.47 6.91 6.34 6.52 6.14 6.74 6.21 65 5.23 5.52 5.83 6.17 6.49
66 7.47 6.66 7.36 6.61 7.06 6.47 6.62 6.24 6.88 6.33 66 5.30 5.61 5.95 6.30 6.65
67 7.68 6.82 7.56 6.77 7.21 6.60 6.71 6.34 7.04 6.46 67 5.38 5.70 6.07 6.45 6.82
68 7.91 7.00 7.76 6.93 7.36 6.74 6.81 6.44 7.19 6.60 68 5.46 5.80 6.20 6.61 7.01
69 8.15 7.19 7.98 7.11 7.52 6.89 6.90 6.54 7.36 6.74 69 5.54 5.92 6.34 6.79 7.21
70 8.41 7.39 8.21 7.31 7.68 7.04 6.98 6.65 7.54 6.90 70 5.63 6.03 6.49 6.97 7.42
71 8.69 7.62 8.46 7.51 7.84 7.21 7.07 6.75 7.73 7.06 71 5.73 6.16 6.65 7.17 7.66
72 8.99 7.86 8.71 7.74 8.01 7.38 7.15 6.86 7.92 7.24 72 5.84 6.30 6.83 7.39 7.90
73 9.31 8.12 8.98 7.98 8.18 7.56 7.23 6.96 8.13 7.42 73 5.95 6.44 7.02 7.62 8.17
74 9.65 8.41 9.27 8.23 8.35 7.74 7.30 7.06 8.35 7.63 74 6.07 6.60 7.22 7.87 8.46
75 10.02 8.72 9.57 8.51 8.52 7.93 7.37 7.15 8.58 7.84 75 6.19 6.77 7.44 8.14 8.77
76 10.41 9.05 9.88 8.80 8.68 8.12 7.43 7.24 8.83 8.06 76 6.33 6.96 7.68 8.43 9.10
77 10.84 9.42 10.21 9.11 8.85 8.31 7.49 7.32 9.08 8.31 77 6.48 7.15 7.94 8.75 9.45
78 11.29 9.81 10.55 9.44 9.00 8.51 7.54 7.40 9.36 8.56 78 6.64 7.37 8.22 9.08 9.83
79 11.78 10.24 10.90 9.80 9.16 8.70 7.59 7.46 9.64 8.83 79 6.81 7.60 8.52 9.45 10.24
80 12.29 10.71 11.27 10.17 9.30 8.88 7.63 7.52 9.93 9.13 80 6.99 7.85 8.84 9.83 10.67
81 12.85 11.22 11.64 10.55 9.44 9.06 7.66 7.58 10.25 9.43 81 7.19 8.12 9.12 10.25 11.12
82 13.44 11.76 12.01 10.96 9.57 9.23 7.69 7.62 10.58 9.76 82 7.41 8.42 9.56 10.69 11.61
83 14.06 12.36 12.40 11.38 9.69 9.40 7.72 7.66 10.92 10.10 83 7.64 8.73 9.97 11.17 12.12
84 14.73 13.00 12.78 11.81 9.80 9.55 7.74 7.69 11.27 10.47 84 7.89 9.07 10.40 11.67 12.66
85 15.42 13.70 13.16 12.25 9.90 9.68 7.76 7.72 11.65 10.85 85 8.17 9.44 10.86 12.20 13.24
* Adjusted age of annuitant.
M = Male
F = Female
Table A above is based on the "1983 Individual Annuitant Mortality Table A." Settlement rates for any age, or any combination
of age and sex not shown above, will be calculated on the same basis as those rates shown in the table above. Such rates will
be furnished by us upon request.
<PAGE>
PAGE 20
PLAN E - Dollar Amount of Each Monthly Variable Dollar Annuity
Payment Per $1,000 Applied (based on 5% AIR)
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
10 $10.51 17 $7.20 24 $5.88
11 $ 9.77 18 6.94 25 5.76
12 9.16 19 6.71 26 5.65
13 8.64 20 6.51 27 5.54
14 8.20 21 6.33 28 5.45
15 7.82 22 6.17 29 5.36
16 7.49 23 6.02 30 5.28
Table B - Dollar Amount of Each Monthly Fixed Dollar Annuity
Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Adjusted Age of Female Annuitant
Life 5 Years 10 Years 15 Years With Adj.
Adj. Income Certain Certain Certain Refund Male 10 Years 5 Years Same 5 Years 10 Years
Age* M F M F M F M F M F Age Younger Younger Age Older Older
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.42 4.10 55 3.51 3.69 3.88 4.06 4.23
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.86 4.48 60 3.76 3.99 4.24 4.49 4.79
65 6.10 5.35 6.03 5.32 5.81 5.22 5.46 5.05 5.43 4.97 65 4.07 4.38 4.72 5.07 5.39
66 6.29 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.56 5.08 66 4.15 4.48 4.84 5.21 5.55
67 6.50 5.67 6.41 5.50 5.66 5.26 5.70 5.20 5.70 5.20 67 4.23 4.58 4.97 5.36 5.73
68 6.73 5.85 6.62 5.80 6.28 5.65 5.76 5.37 5.85 5.33 68 4.31 4.69 5.10 5.53 5.92
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 6.00 5.47 69 4.40 4.80 5.25 5.70 6.12
70 7.23 6.25 7.07 6.18 6.61 5.96 5.96 5.60 6.16 5.61 70 4.50 4.93 5.40 5.89 6.34
71 7.51 6.47 7.32 6.39 6.78 6.14 6.05 5.71 6.33 5.76 71 4.60 5.06 5.57 6.10 6.57
72 7.80 6.71 7.58 6.62 6.96 6.31 6.14 5.83 6.51 5.93 72 4.71 5.20 5.75 6.31 6.82
73 8.12 6.97 7.85 6.86 7.14 6.50 6.23 5.94 6.70 6.10 73 4.83 5.35 5.94 6.55 7.09
74 8.45 7.26 8.14 7.12 7.32 6.69 6.31 6.04 6.90 6.28 74 4.95 5.51 6.15 6.80 7.37
75 8.82 7.56 8.44 7.39 7.49 6.89 6.38 6.14 7.11 6.48 75 5.08 5.68 6.37 7.07 7.69
76 9.21 7.90 8.76 7.69 7.67 7.09 6.49 6.24 7.33 6.68 76 5.22 5.87 6.61 7.36 8.01
77 9.62 8.26 9.09 8.01 7.84 7.29 6.51 6.33 7.56 6.90 77 5.37 6.07 6.87 7.67 8.36
78 10.07 8.65 9.44 8.34 8.01 7.49 6.57 6.41 7.80 7.13 78 5.54 6.29 7.15 8.01 8.74
79 10.55 9.07 9.80 8.69 8.17 7.69 6.62 6.48 8.05 7.38 79 5.71 6.52 7.45 8.37 9.14
80 11.06 9.53 10.17 9.07 8.33 7.89 6.66 6.55 8.32 7.64 80 5.90 6.78 7.77 8.76 9.57
81 11.61 10.03 10.55 9.46 8.48 8.08 6.70 6.61 8.60 7.91 81 6.10 7.05 8.12 9.17 10.02
82 12.19 10.57 10.94 9.87 8.61 8.26 6.73 6.66 8.89 8.21 82 6.32 7.34 8.49 9.61 10.51
83 12.81 11.16 11.33 10.30 8.74 8.43 6.76 6.70 9.20 8.51 83 6.55 7.65 8.90 10.08 11.02
84 13.46 11.79 11.72 10.74 8.86 8.59 6.79 6.74 9.52 8.83 84 6.80 7.99 9.33 10.58 11.56
85 14.16 12.48 12.12 11.19 8.97 8.74 6.81 6.77 9.85 9.18 85 7.07 8.36 9.78 11.11 12.13
* Adjusted age of annuitant.
M = Male
F = Female
Table B above is based on the "1983 Individual Annuitant Mortality Table A" assuming a 3% annual effective interest rate.
Settlement rates for any age, or any combination of age and sex not shown above, will be calculated on the same basis as those
rates shown in the table above. Such rates will be furnished by us upon request. Amounts shown in the Table below are based
on assuming a 3% annual effective interest rate.
</TABLE>
PLAN E - Dollar Amount of Each Monthly Fixed Dollar Annuity Payment
Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
10 $9.61 17 $6.23 24 $4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
<PAGE>
PAGE 21
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440
<PAGE>
PAGE 1
CERTIFICATE OF INCORPORATION
OF
IDS LIFE INSURANCE COMPANY
We, the undersigned, for the purpose of forming an
insurance corporation under and pursuant to the provisions of the
Minnesota Statutes, Chapter 300 relating thereto, and of any
amendments thereof, do hereby associate ourselves as a body
corporate and do hereby adopt the following Articles of
Incorporation:
ARTICLE I
The name of this Corporation shall be IDS Life
Insurance Company.
ARTICLE II
The purposes of and general nature of its business
shall be:
(a) To engage in the general business of a life
insurance company, and to effect all forms, types,
variations and combinations of life insurance,
endowment or annuity contracts or policies, on a
group or individual basis, for the payment of
money in a single sum or in installments upon the
contingencies of death, disability or
survivorship. To provide in such policies or
contracts supplemental thereto, for additional
benefits in the event of the death of the insured
by accidental means, total and permenent [sic]
disability of the insured, or specific
dismemberment or disablement suffered by the
insured.
(b) To engage in the general business of an accident
and health insurance company, for the purpose of
effecting insurance against loss or damage by the
sickness, bodily injury or death by accident of
the assured or his dependents, on a group or
individual basis; to effect all forms, types,
variations and combinations of policies or
contracts of insurance providing for indemnities
in the event of death, sickness or disability.
(c) To effect contracts of reinsurance or co-insurance
of any individual or group risk underwritten by
this Corporation, to reinsure risks of this
Corporation or any part thereof with any other
company or to reinsure the whole of or any portion
of the risks of any other company.
(d) To effect all other contracts of insurance
authorized by clauses (4) and (5)(a) of
subdivision 1 of Section 60.29 of Minnesota
Statutes.
<PAGE>
PAGE 2
(e) To have one or more offices and to conduct
business in this state or elsewhere.
(f) To acquire, hold and dispose of shares of stock,
notes, bonds or other evidences of indebtedness or
securities of any other corporation or
corporations.
(g) To transact all business and to do all other
things necessary or incidental to the foregoing
purposes.
ARTICLE III
The duration of this Corporation shall be perpetual.
ARTICLE IV
The principal place of transacting the business of this
Corporation shall be the City of Minneapolis, State of Minnesota.
ARTICLE V
2/9/72
10/18/85
The capital stock of this Corporation shall consist of
One Hundred Thousand (100,000) shares of stock with a par value of
Thirty Dollars ($30.00) per share. The amount of stated capital of
this Corporation shall be Three Million Dollars ($3,000,000).
ARTICLE VI
(1) The general management of this Corporation shall
be vested in a Board of Directors.
(2) The names and post office addresses of the members
of the first Board of Directors are respectively as follows:
Joseph M. Fitzsimmons 800 Investors Building
Minneapolis 2, Minnesota
John W. McCartin 800 Investors Building
Minneapolis 2, Minnesota
Virgil C. Sullivan 800 Investors Building
Minneapolis 2, Minnesota
A. Edward Archibald 800 Investors Building
Minneapolis 2, Minnesota
Harold E. Miller, M.D. 1531 Medical Arts Building
Minneapolis 2, Minnesota
Said named Directors shall serve as such until the
first annual meeting of the shareholders of the Corporation and
until their successors have been duly elected and qualified.
<PAGE>
PAGE 3
ARTICLE VII
The first Board of Directors of this Corporation shall
have full power and authority to make and adopt By-Laws for the
government of this Corporation and its affairs as they may deem
advisable or necessary and as shall not be inconsistent with the
provisions of these Articles. The By-Laws may be amended or
altered by the shareholders at any regular or special meeting
called therefor.
ARTICLE VIII
These Articles of Incorporation may be amended by the
affirmative vote of the holders of a majority of the voting power
of the capital stock.
ARTICLE IX
The first meeting of the Corporation shall be a meeting
of the Incorporators and Subscribers to the capital stock of the
Corporation. Three days' written notice of such meeting shall be
given unless there is a written Waiver of Notice.
ARTICLE X
The names and post office addresses of the
Incorporators are as follows:
Lloyd J. Muehlberg 800 Investors Building
Minneapolis 2, Minnesota
Joseph F. Grinnell 800 Investors Building
Minneapolis 2, Minnesota
Edward M. Burke 800 Investors Building
Minneapolis 2, Minnesota
IN TESTIMONY WHEREOF we have set our hands this 23rd day of July,
1957.
IN PRESENCE OF: Lloyd J. Muehlberg
M. Gould Joseph F. Grinnell
D. Fairchild Edward M. Burke
State of Minnesota )
) SS.
County of Hennepin )
<PAGE>
PAGE 4
On this 23rd day of July, 1957, before me, a Notary
Public, personally appeared Lloyd J. Muehlberg, Joseph F. Grinnell,
and Edward M. Burke, to me known to be the persons named in and who
executed the foregoing instrument, and they acknowledged to me that
they executed the same as their free act and deed and for the uses
and purposes therein expressed.
(Notarial seal) Helen M. Bochnak
Helen M. Bochnak
Notary Public, Hennepin County, Minn.
My Commission Expired Nov. 12, 1958
APPROVAL OF COMMISSIONER OF INSURANCE
The foregoing Certificate of Incorporation of Investors
Syndicate Life Insurance and Annuity Company is hereby approved
this 24th day of July, 1957.
Cyril C. Sheehan
Commissioner of Insurance
State of Minnesota
J.O.M.
<PAGE>
PAGE 1
Performance Calculations
NON-MONEY MARKET SUBACCOUNTS
TOTAL RETURN
The total return is the percentage change between the initial
investment at the beginning of the period and the total value of
the investment at the end of the period.
Total Return = Ending Total Value - Initial Investment
Initial Investment
The ending total value includes income and capital gains
distributions treated as reinvested. It also reflects deductions
for the contract administrative charge, variable account
administrative charge and the mortality and expense risk charge.
AVERAGE ANNUAL TOTAL RETURN
The average annual total return of a subaccount reflects the
average annual compounded rate of return of a hypothetical
investment over a period of one, five and ten years (or, if less,
up to the life of the subaccount), calculated according to the
following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1000.
T = average annual total return.
n = number of years.
ERV = ending redeemable value of a hypothetical $1,000
payment made at the beginning of the one, five
or ten year periods (or fractional portion
thereof).
The average annual total return without withdrawal charge reflects
the deduction of the contract administrative charge, variable
account administrative charge and mortality and expense risk
charge.
The average annual total return with withdrawal charge reflects the
above deductions and assumes the contract owner withdraws the
entire contract at the end of the one, five and ten year periods.
YIELD
Yield quotations will be based on all investment income earned
during a particular 30-day period, less expenses accrued during the
period (net investment income) and will be computed by dividing net
investment income per share by the value of a share on the last day
of the period, according to the following formula:
YIELD = 2 [( a - b + 1)6 - 1]
cd
<PAGE>
PAGE 2
a = dividends and interest earned during the period.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of shares outstanding during the
period that were entitled to receive dividends.
d = the maximum offering price per share on the last day of
the period.
MONEY MARKET SUBACCOUNT
SIMPLE YIELD
Simple yield for the money market subaccount will be based on the
net change in the value of a hypothetical investment (exclusive of
capital changes) from the beginning of a seven day period for which
the return will be quoted. A prorata share of fund expenses
accrued over the seven day period is subtracted. The difference is
divided by the value of the subaccount at the beginning of the
period to obtain the base period return. The base period return is
annualized by multiplying by 365/7.
COMPOUND YIELD
Calculation of coumpound yield begins with the same base period
return used in the calculation of yield, which is then annualized
to reflect compounding according to the following formula:
Compound Yield = [(Base Period Return + 1)365/7] - 1
<PAGE>
PAGE 1
IDS LIFE INSURANCE COMPANY
IDS Life Variable Account 10
POWER OF ATTORNEY
City of Minneapolis
State of Minnesota
Each of the undersigned, as a director of IDS Life Insurance
Company (IDS Life), sponsor of the unit investment trust consisting
of the IDS Life Variable Account 10 in connection with the filing
of a registration statement on Form N-4 under the Securities Act of
1933 and the Investment Company Act of 1940, hereby constitutes and
appoints William A. Stoltzmann, Mary Ellyn Minenko and Colleen
Curran or any one of them, as his/her attorney-in-fact and agent,
to sign for him/her in his/her name, place and stead any and all
filings, applications (including applications for exemptive
relief), periodic reports, registration statements (with all
exhibits and other documents required or desirable in connection
therewith), other documents, and amendments thereto and to file
such filings, applications periodic reports, registration
statements, other documents, and amendments thereto with the
Securities and Exchange Commission, and any necessary states, and
grants to any or all of them the full power and authority to do and
perform each and every act required or necessary in connection
therewith.
/s/ David R. Hubers
David R. Hubers
/s/ Richard W. Kling
Richard W. Kling
/s/ Paul F. Kolkman
Paul F. Kolkman
/s/ Janis E. Miller
Janis E. Miller
/s/ James A. Mitchell
James A. Mitchell
/s/ Barry J. Murphy
Barry J. Murphy
/s/ Stuart A. Sedlacek
Stuart A. Sedlacek
/s/ Melinda S. Urion
Melinda S. Urion
Dated: August 23, 1995
