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JANUARY 23, 1997 SUPPLEMENT TO
PROSPECTUS DATED OCTOBER 1, 1996
GOLD TRACK
THE FOLLOWING INFORMATION SUPPLEMENTS THE PROSPECTUS DATED OCTOBER 1, 1996 FOR
THE TRAVELERS SEPARATE ACCOUNT QP FOR VARIABLE ANNUITIES.
THE CONTRACTS
NONQUALIFED/UNFUNDED DEFERRED COMPENSATION PLANS
The Contract may also be issued for nonqualified and unfunded deferred
compensation plans which do not qualify for special tax treatment under the
Internal Revenue Code. Under such Contract, the entity sponsoring the
nonqualified deferred compensation plan will be the Contract Owner and will
possess all rights under the Contract. Participants in the deferred
compensation plan will not have any rights under, or beneficial interests in,
the Contract.
The Contract Owner may, therefore, make all elections under the Contract and is
entitled to receive all benefit payments under the Contract. The Contract Owner
may direct Travelers to make certain benefit payments directly to Participants
or their beneficiaries. The Contract Owner also has all rights to determine the
investment of the amounts held under the Contract among the various Funding
Options; provided, however, that in its sole discretion, the Contract Owner may
elect to follow the directions of the Participants as to the investment of the
amounts held under the Contract. Any such direction by the Contract Owner to
Travelers to make any benefit payments to Participants or their beneficiaries,
and/or any election by the Company to follow the direction of Participants as
to the investment among the Funding Options may be revoked or amended by the
Contract owner at its sole discretion.
FEDERAL TAX CONSIDERATIONS
Nonqualified annuity contracts are taxed under Section 72 of the
Internal Revenue Code. Increases in the value of a nonqualified annuity
contract issued to an individual or for the beneficial ownership of an
individual are generally deferred from tax until distribution. However, if a
nonqualified annuity is owned by other than an individual (e.g., by a
corporation), the increases in value are includible in income annually. Since
the Contract Owner of any Contract issued in connection with a
nonqualified/unfunded deferred compensation plan will be the company sponsoring
the plan, and the individual participants will have no direct or indirect
ownership or beneficial interest in the Contract, the Contract Owner will be
taxed annually on the increase in value.
L-XXXXX 1/97
