SUPPLEMENT TO
EQUITABLE ACCUMULATOR(SM) SELECT
(IRA, NQ, AND QP)
PROSPECTUS DATED MAY 1, 1998, AND
TAX SHELTERED ANNUITY SUPPLEMENT DATED JUNE 18, 1998
Combination Variable and Fixed Deferred Annuity Certificates
Issued By
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus supplement (SUPPLEMENT) adds to or changes certain information
contained in the Profile and Prospectus dated May 1, 1998, and the Tax Sheltered
Annuity prospectus supplement (TSA SUPPLEMENT) dated June 18, 1998. Capitalized
terms have the same meaning as in the Prospectus and TSA Supplement.
This prospectus supplement provides information on the following enhancements to
the Equitable Accumulator Select Certificates: (1) a new Investment Fund and a
new Guarantee Period; and (2) a new Beneficiary Continuation Option.
Information is also provided regarding the reduction in the interest rate
credited under the Guaranteed Minimum Income Benefit benefit base and the
Guaranteed Minimum Death Benefit from 6% to 5% (from 4% to 3% for amounts in the
Alliance Money Market Fund and the Guarantee Periods). The guaranteed minimum
annuity purchase factors used in calculating the Guaranteed Minimum Income
Benefit will be based on interest at 2.5% for all years.
(1) NEW INVESTMENT OPTIONS
- --------------------------
IN THE THIRD PARAGRAPH ON THE COVER PAGE OF THE PROSPECTUS, THE NUMBER OF
VARIABLE INVESTMENT FUNDS AVAILABLE IS CHANGED FROM 17 TO 18.
THE FOLLOWING IS ADDED UNDER ITEM 4 "INVESTMENT OPTIONS" AT THE END OF THE LIST
OF THE EQAT INVESTMENT FUNDS ON PAGE 3 OF THE PROFILE AND AT THE END OF THE
THIRD COLUMN UNDER THE LIST OF INVESTMENT FUNDS ON THE COVER PAGE OF THE
PROSPECTUS:
o MFS Growth with Income
IN ITEM 4 OF THE PROFILE IN THE PARAGRAPH FOLLOWING THE LIST OF INVESTMENT
FUNDS, AND THROUGHOUT THE PROSPECTUS, THE DISCUSSION OF AVAILABLE GUARANTEE
PERIODS (REFERRED TO AS GUARANTEED FIXED INTEREST ACCOUNTS IN THE PROFILE) IS
CHANGED. THE GUARANTEE PERIOD MATURING IN 1999 IS NO LONGER AVAILABLE FOR
ALLOCATION. A GUARANTEE PERIOD WITH AN EXPIRATION DATE OF FEBRUARY 15, 2009 IS
ADDED.
- --------------------------------------------------------------------------------
Copyright 1999 The Equitable Life Assurance Society of the United States,
New York, New York 10104. All rights reserved.
Accumulator is a service mark and baseBUILDER is a registered service mark of
The Equitable Life Assurance Society of the United States.
SUPPLEMENT DATED JANUARY 4, 1999
PROS 4ACS SUPP5 (1/99)
<PAGE>
IN ITEM 5 "EXPENSES" BEGINNING ON PAGE 3 OF THE PROFILE, THE FOLLOWING
INFORMATION IS ADDED AT THE END OF THE TABLE OF EXPENSES:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
TOTAL TOTAL EXAMPLES
ANNUAL ANNUAL TOTAL Total Annual
CERTIFICATE PORTFOLIO ANNUAL Expenses at End of:
INVESTMENT FUNDS CHARGES CHARGES CHARGES (1) (2)
1 Year 10 Years
<S> <C> <C> <C> <C> <C>
MFS Growth with Income 1.60% 0.85% 2.45% $27.98 $313.31
- --------------------------------------------------------------------------------------------------
</TABLE>
THE FOLLOWING IS ADDED AT THE END OF THE TABLE UNDER "HRT AND EQAT ANNUAL
EXPENSES (AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)" ON
PAGE 6 OF THE PROSPECTUS:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
INVESTMENT TOTAL
MANAGEMENT & OTHER ANNUAL
PORTFOLIOS ADVISORY FEES 12B-1 FEE(5) EXPENSES EXPENSES
- ---------- ------------- --------- -------- --------
<S> <C> <C> <C> <C>
MFS Growth with Income (7) 0.55% 0.25% 0.05% 0.85%
- -------------------------------------------------------------------------------------------------
</TABLE>
THE FOLLOWING IS ADDED AT THE END OF THE FIRST PARAGRAPH UNDER FOOTNOTE (7) ON
PAGE 7 OF THE PROSPECTUS:
The MFS Growth with Income Portfolio had initial seed capital invested on
December 31, 1998.
THE FOLLOWING IS ADDED AT THE END OF THE SECOND PARAGRAPH UNDER FOOTNOTE (7):
The total annual operating expenses for the MFS Growth with Income Portfolio is
limited to 0.85% of the average daily net assets.
THE FOLLOWING IS ADDED AFTER THE THIRD PARAGRAPH UNDER FOOTNOTE (7):
For the MFS Growth with Income Portfolio which had initial seed capital invested
on December 31, 1998, absent the expense limitation, we estimate that the other
expenses for 1999 will be 0.777%.
THE FOLLOWING IS ADDED AFTER THE "EXAMPLES" TABLE UNDER THE EQAT INVESTMENT
FUNDS ON PAGE 8 OF THE PROSPECTUS:
- ----------------------------------------------------------------------
AT THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------
MFS Growth with Income $27.98 $86.05 -- --
THE FOLLOWING REPLACES THE SECOND SENTENCE UNDER THE DESCRIPTION OF
"MASSACHUSETTS FINANCIAL SERVICES COMPANY" ON PAGE 12 OF THE PROSPECTUS:
MFS advises MFS Research and MFS Growth with Income, domestic equity portfolios,
and MFS Emerging Growth Companies, an aggressive equity portfolio.
2
<PAGE>
THE FOLLOWING IS ADDED AT THE END OF THE TABLE UNDER "INVESTMENT POLICIES AND
OBJECTIVES OF HRT'S PORTFOLIOS AND EQAT'S PORTFOLIOS" BEGINNING ON PAGE 13 OF
THE PROSPECTUS:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
EQAT PORTFOLIO INVESTMENT POLICY OBJECTIVE
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MFS Growth with Income Primarily equity securities that the adviser Reasonable current income
considers to be of high or improving investment and long-term growth of
quality with due regard for both probable capital and income
income and probable safety of capital.
-------------------------------------------------------------------------------------------------------------
</TABLE>
THE FOLLOWING IS ADDED AT THE END OF THE ADVISORY FEE TABLE FOR THE EQAT
PORTFOLIOS ON PAGE 34 OF THE PROSPECTUS:
--------------------------------------------------------
MAXIMUM
INVESTMENT
ADVISORY FEE
EQAT PORTFOLIO (ANNUAL RATE)
--------------------------------------------------------
MFS Growth with Income 0.55%
(2) BENEFICIARY CONTINUATION OPTION
- -----------------------------------
THE FOLLOWING IS ADDED AFTER THE SECOND PARAGRAPH UNDER "HOW DEATH BENEFIT
PAYMENT IS MADE" -- "SUCCESSOR ANNUITANT/CERTIFICATE OWNER" ON PAGE 25 OF THE
PROSPECTUS:
Beneficiary Continuation Option for Traditional IRA Certificates
Upon the death of the Annuitant under a Traditional IRA Certificate, a
non-spouse beneficiary may elect to keep the Certificate in the name of the
deceased Annuitant, and receive distributions under the Certificate instead of
the death benefit being paid in a lump sum. The beneficiary's choices are
subject to the conditions in the following paragraphs and depend in part on
whether the Annuitant dies before or after the "Required Beginning Date" for
required minimum distributions. "Required Beginning Date" is discussed in Part 7
under "Distributions from Traditional IRA Certificates".
If the Annuitant dies after the "Required Beginning Date" for required minimum
distributions, the Certificate will continue if: (i) the Annuitant was receiving
Minimum Distribution Withdrawals from this Certificate; and (ii) the pattern of
Minimum Distribution Withdrawals the Annuitant chose was based in part on the
life of the designated beneficiary. The withdrawals will then continue to be
paid to the beneficiary on the same basis as the Annuitant chose before death.
Our "Minimum Distribution Withdrawals" are described in Part 4. We will have a
record as to whether this option is available to the beneficiary. The
beneficiary's ability to elect this option may be limited based on the
calculation method the Annuitant chose to determine the required minimum
distribution amounts. You should contact our Processing Office for further
information.
If the Annuitant dies before the "Required Beginning Date" (and therefore was
not taking Minimum Distribution Withdrawals under the Certificate), the
beneficiary may begin taking Minimum Distribution Withdrawals under the
Certificate. The Annuity Account Value will be reset to the death benefit and
that amount will be applied to provide the withdrawals. These withdrawals will
commence by December 31 of the calendar year following the Annuitant's death and
will be based on the beneficiary's life expectancy. If there is more than one
beneficiary, the shortest life expectancy is used.
3
<PAGE>
The designated beneficiary must be a natural person and of legal age at the time
of election. To elect this option the appropriate form must be completed and
sent to our Processing Office within 30 days following the date we receive proof
of the Annuitant's death. This option may not currently be available in all
states. Your registered representative can provide information about state
availability, or you may contact our Processing Office.
While the distributions are in effect, the beneficiary may transfer the
Certificate's Annuity Account Value among the Investment Options. However,
subsequent contributions will not be permitted and the Guaranteed Minimum Income
Benefit and the death benefit (including the Guaranteed Minimum Death Benefit)
provisions will no longer be in effect. Although the only withdrawals that will
be permitted are Minimum Distribution Withdrawals, the beneficiary may choose at
any time to withdraw all of the Annuity Account Value and no withdrawal charges
will apply.
================================================================================
IN THE PROFILE AND THROUGHOUT THE PROSPECTUS, "5% ROLL UP TO AGE 80" REPLACES
"6% ROLL UP TO AGE 80."
IN THE TABLE UNDER "EXPENSES" IN ITEM 5 OF THE PROFILE, PLEASE NOTE THAT THE
EXPENSE NUMBERS WILL BE SLIGHTLY LOWER THAN THE NUMBERS SHOWN DUE TO THE
REDUCTION IN THE INTEREST RATE CREDITED UNDER THE GUARANTEED MINIMUM INCOME
BENEFIT BENEFIT BASE.
THE FOLLOWING REPLACES THE THIRD PARAGRAPH UNDER "DEATH BENEFIT" IN ITEM 9 OF
THE PROFILE:
5% Roll Up to Age 80 -- We add interest to the initial amount at 5% (3% for
amounts in the Alliance Money Market Fund and Guaranteed Fixed Interest
Accounts) through the annuitant's age 80 (or at the annuitant's death, if
earlier). The 5% interest rate will still apply for amounts in the Alliance
Money Market Fund under the Special Dollar Cost Averaging program discussed in
item 10 "OTHER INFORMATION."
IN THE TABLE UNDER THE HEADING "EXAMPLES" ON PAGE 8 OF THE PROSPECTUS, PLEASE
NOTE THAT THE NUMBERS WILL BE SLIGHTLY LOWER THAN THE NUMBERS SHOWN DUE TO THE
CHANGE IN THE INTEREST RATE CREDITED UNDER THE GUARANTEED MINIMUM INCOME BENEFIT
BENEFIT BASE.
THE FOLLOWING REPLACES THE FIRST PARAGRAPH UNDER THE HEADING "BASEBUILDER
BENEFITS" ON PAGE 22 OF THE PROSPECTUS:
The baseBUILDER option provides guaranteed benefits in the form of a Combined
Guaranteed Minimum Income Benefit and Guaranteed Minimum Death Benefit. The
combined benefit is available for Annuitant issue ages 20 through 75 and is
subject to an additional charge (see "baseBUILDER Benefits Charge" in Part 5 of
the Prospectus). baseBUILDER provides a degree of protection for you while the
Annuitant lives (Income Benefit), as well as for the beneficiary should the
Annuitant die. As part of baseBUILDER you will have a choice of two Guaranteed
Minimum Death Benefit options for Annuitant issue ages 20 through 75: (i) a 5%
Roll Up to Age 80 or (ii) an Annual Ratchet to Age 80. The Guaranteed Minimum
Death Benefit choices are still provided under the Certificate even if you do
not elect baseBUILDER. The two choices are also provided for Annuitant issue
ages 0 through 19 under NQ Certificates and for Annuitant issue ages 76 through
79.
4
<PAGE>
THE FOLLOWING REPLACES THE THIRD PARAGRAPH AND THE CHART FOLLOWING THE PARAGRAPH
UNDER THE HEADING "GUARANTEED MINIMUM INCOME BENEFIT" ON PAGE 23 OF THE
PROSPECTUS:
Illustrated below are Guaranteed Minimum Income Benefit amounts per $100,000 of
initial contribution, for a male Annuitant age 60 (at issue) on Contract Date
anniversaries as indicated below, assuming no subsequent contributions,
withdrawals, or loans under TSA Certificates, and assuming there were no
allocations to the Alliance Money Market Fund or the Guaranteed Period Account.
---------------------------------------------------------------
Guaranteed Minimum
Income Benefit -- Annual Income
Contract Date Payable for Life with
Anniversary at Exercise 10 Year Period Certain
---------------------------------------------------------------
7 $ 8,315
10 10,341
15 14,924
---------------------------------------------------------------
THE FOLLOWING REPLACES THE FIRST THREE PARAGRAPHS UNDER THE SUBHEADING
"GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 24 OF THE PROSPECTUS AND THE SECOND
PARAGRAPH UNDER THE SUBHEADING "GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 4 OF
THE TSA SUPPLEMENT:
Applicable for Annuitant Issue Ages 0 through 79 under NQ Certificates; 20
through 79 under Traditional IRA, Roth IRA and TSA Certificates; and 20 through
70 under QP Certificates
You elect either the "5% Roll Up to Age 80" or the "Annual Ratchet to Age 80"
Guaranteed Minimum Death Benefit when you apply for a Certificate. Once elected,
the benefit may not be changed.
5% Roll Up to Age 80 -- On the Contract Date, the Guaranteed Minimum Death
Benefit is equal to the initial contribution. Thereafter, the Guaranteed Minimum
Death Benefit is credited with interest at 5% (3% for amounts in the Alliance
Money Market Fund and the Guarantee Periods) on each Contract Date anniversary
(compounded annually) through the Annuitant's age 80 (or at the Annuitant's
death, if earlier), and 0% thereafter. An interest rate of 5% will apply for
amounts in the Alliance Money Market Fund under the Special Dollar Cost
Averaging program. Under TSA Certificates, while a loan is outstanding, the
amount in the loan reserve account will be credited with interest at 3%.
On the date that a subsequent contribution is applied, your current Guaranteed
Minimum Death Benefit will increase by the dollar amount of the subsequent
contribution. On the date that a withdrawal is made, your Guaranteed Minimum
Death Benefit will be adjusted for the withdrawal. See "How Withdrawals Affect
Your Guaranteed Minimum Income Benefit and Guaranteed Minimum Death Benefit"
below.
THE FOLLOWING REPLACES THE INFORMATION UNDER THE HEADING "HOW WITHDRAWALS AFFECT
YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT" ON
PAGE 30 OF THE PROSPECTUS:
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
5
<PAGE>
Guaranteed Minimum Income Benefit benefit base -- Your current Guaranteed
Minimum Income Benefit benefit base (described below) will be reduced on a
dollar-for-dollar basis as long as the sum of your withdrawals in a Contract
Year is 5% or less of the beginning of Contract Year Guaranteed Minimum Death
Benefit. Once you take a withdrawal that causes the sum of your withdrawals in a
Contract Year to exceed 5% of the beginning of Contract Year Guaranteed Minimum
Death Benefit, that withdrawal and any subsequent withdrawals in that same
Contract Year will reduce your current Guaranteed Minimum Income Benefit benefit
base on a pro rata basis.
5% Roll Up to Age 80 -- If you elect the 5% Roll Up to Age 80 Guaranteed
Minimum Death Benefit, your current Guaranteed Minimum Death Benefit will be
reduced on a dollar-for-dollar basis as long as the sum of your withdrawals in a
Contract Year is 5% or less of the beginning of Contract Year Guaranteed Minimum
Death Benefit. Once you take a withdrawal that causes the sum of your
withdrawals in a Contract Year to exceed 5% of the beginning of Contract Year
Guaranteed Minimum Death Benefit, that withdrawal and any subsequent withdrawals
in that same Contract Year will reduce your current Guaranteed Minimum Death
Benefit on a pro rata basis.
Annual Ratchet to Age 80 -- If you elect the Annual Ratchet to Age 80
Guaranteed Minimum Death Benefit, each withdrawal will always reduce your
current Guaranteed Minimum Death Benefit on a pro rata basis.
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of the Annuity Account Value (as of the
Transaction Date) that is being withdrawn and we reduce your current benefit by
that same percentage. For example, if your Annuity Account Value is $30,000 and
you withdraw $12,000, you have withdrawn 40% ($12,000/ $30,000) of your Annuity
Account Value. If your Guaranteed Minimum Death Benefit was $40,000 prior to the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new
Guaranteed Minimum Death Benefit after the withdrawal would be $24,000 ($40,000
- - $16,000).
The timing of your withdrawals and whether they exceed the 5% threshold
described above can have a significant impact on your Guaranteed Minimum Income
Benefit or Guaranteed Minimum Death Benefit.
THE FOLLOWING REPLACES THE INFORMATION UNDER THE SUBHEADING "GUARANTEED MINIMUM
INCOME BENEFIT BENEFIT BASE" ON PAGE 30 OF THE PROSPECTUS AND THE PARAGRAPH
UNDER THE SUBHEADING "GUARANTEED MINIMUM INCOME BENEFIT ON PAGE 4 OF THE TSA
SUPPLEMENT:
On the Contract Date, the Guaranteed Minimum Income Benefit benefit base is
equal to the initial contribution. Thereafter, the Guaranteed Minimum Income
Benefit benefit base is credited with interest at 5% (3% for amounts in the
Alliance Money Market Fund and the Guarantee Periods) on each Contract Date
anniversary (compounded annually) through the Annuitant's age 80, and 0%
thereafter. An interest rate of 5% will apply for amounts in the Alliance Money
Market Fund under the Special Dollar Cost Averaging program. Under TSA
Certificates, while a loan is outstanding, the amount in the loan reserve
account will be credited with interest at 3%.
On the date that a subsequent contribution is applied, your current Guaranteed
Minimum Income Benefit benefit base will increase by the dollar amount of the
subsequent contribution. On the date that a withdrawal is made, your Guaranteed
Minimum Income Benefit benefit base will be reduced by (i) the dollar amount of
the withdrawal or (ii) the percentage of the Annuity Account Value being
withdrawn, as explained above.
6
<PAGE>
Your Guaranteed Minimum Income Benefit benefit base is applied to guaranteed
minimum annuity purchase factors to determine the Guaranteed Minimum Income
Benefit. The guaranteed minimum annuity purchase factors are based on (i)
interest at 2.5%, and (ii) mortality tables that assume increasing longevity.
These interest and mortality factors are generally more conservative than the
basis underlying current annuity purchase factors, which means that they would
produce less periodic income for an equal amount applied.
Your Guaranteed Minimum Income Benefit benefit base does not create an Annuity
Account Value or a Cash Value and is used solely for purposes of calculating
your Guaranteed Minimum Income Benefit.
7
<PAGE>
THE FOLLOWING REPLACES APPENDIX III ON PAGE 58 OF THE PROSPECTUS:
APPENDIX III: GUARANTEED MINIMUM DEATH BENEFIT EXAMPLE
- --------------------------------------------------------------------------------
Under the Certificates the death benefit is equal to the Annuity Account Value
or, if greater, the Guaranteed Minimum Death Benefit (see "Guaranteed Minimum
Death Benefit" on page 5 of this Supplement and on page 24 of the Prospectus).
The following is an example illustrating the calculation of the Guaranteed
Minimum Death Benefit. Assuming $100,000 is allocated to the Investment Funds
(with no allocation to the Alliance Money Market Fund or the Guarantee Periods),
no subsequent contributions, no transfers, no withdrawals, and no loans under a
TSA Certificate, the Guaranteed Minimum Death Benefit for an Annuitant age 45
would be calculated as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
End of 5% Roll Up to Age 80 Annual Ratchet to Age 80
Contract Annuity Guaranteed Minimum Guaranteed Minimum
Year Account Value Death Benefit Death Benefit
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 $105,000 $105,000(1) $105,000(3)
2 $115,500 $110,250(2) $115,500(3)
3 $129,360 $115,763(2) $129,360(3)
4 $103,488 $121,551(1) $129,360(4)
5 $113,837 $127,628(1) $129,360(4)
6 $127,497 $134,010(1) $129,360(4)
7 $127,497 $140,710(1) $129,360(4)
--------------------------------------------------------------------------------------------------------------------
</TABLE>
The Annuity Account Values for Contract Years 1 through 7 are determined based
on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%,
12.00% and 0.00%. We are using these rates solely to illustrate how the benefit
is determined. The rates of return bear no relationship to past or future
investment results.
5% ROLL UP TO AGE 80
(1) At the end of Contract Years 1 and again at the end of Contract Years 4
through 7, the death benefit will be equal to the Guaranteed Minimum Death
Benefit.
(2) At the end of Contract Years 2 and 3, the death benefit will be equal to
the Annuity Account Value since it is higher than the current Guaranteed
Minimum Death Benefit.
ANNUAL RATCHET TO AGE 80
(3) At the end of Contract Years 1, through 3, the Guaranteed Minimum Death
Benefit is equal to the current Annuity Account Value.
(4) At the end of Contract Years 4 through 7, the Guaranteed Minimum Death
Benefit is equal to the Guaranteed Minimum Death Benefit at the end of the
prior year since it is equal to or higher than the current Annuity Account
Value.
8
<PAGE>
SUPPLEMENT TO
EQUITABLE ACCUMULATOR(SM) SELECT
(IRA, NQ AND QP)
PROSPECTUS DATED MAY 1, 1998 AND
TAX SHELTERED ANNUITY SUPPLEMENT DATED JUNE 18, 1998
COMBINATION VARIABLE AND FIXED DEFERRED ANNUITY CERTIFICATES
Issued By:
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus supplement (SUPPLEMENT) changes certain information in the
Equitable Accumulator (IRA, NQ and QP) prospectus dated May 1, 1998, and the Tax
Sheltered Annuity prospectus supplement dated June 18, 1998 (TSA SUPPLEMENT).
This Supplement describes the baseBUILDER(R) Combined Guaranteed Minimum Income
Benefit anD Guaranteed Minimum Death Benefit offered to Annuitant issue ages 76
through 83. Capitalized terms in this supplement have the same meaning as in the
Prospectus and TSA Supplement.
The versions of the Combined Guaranteed Minimum Income Benefit and Guaranteed
Minimum Death Benefit discussed on page 22 of the prospectus under "baseBUILDER
Benefits" and page 4 of the TSA Supplement are not available for Annuitant issue
ages 76 through 83. The combined benefit available for these issue ages was
offered under prospectus supplements dated May 1, 1998 and June 18, 1998.
The interest rate credited under the Guaranteed Minimum Income Benefit benefit
base and the Guaranteed Minimum Death Benefit will be reduced from 4% to 3%. The
guaranteed minimum annuity purchase factors used in calculating the Guaranteed
Minimum Income Benefit will be based on interest at 2.5% for all years.
The charge for the benefit described in this Supplement is 0.30% of the
Guaranteed Minimum Income Benefit benefit base in effect on a Processing Date.
THE EXERCISE DATES AND PERIOD CERTAIN FOR THE GUARANTEED MINIMUM INCOME BENEFIT
APPLICABLE TO THE COMBINED BENEFIT IS AS FOLLOWS:
The Guaranteed Minimum Income Benefit may be exercised only within 30 days
following the 7th or later Contract Date anniversary, but in no event later
than the Annuitant's age 90.
The period certain will be 90 less the Annuitant's age at exercise.
THE GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE TO THE COMBINED BENEFIT IS AS
FOLLOWS:
3% Roll Up to Age 85 - On the Contract Date, the Guaranteed Minimum Death
Benefit is equal to the initial contribution. Thereafter, the Guaranteed
Minimum Death Benefit is credited with interest at 3% on each Contract Date
anniversary (compounded annually) through the Annuitant's age 85 (or at the
Annuitant's death, if earlier), and 0% thereafter.
On the date that a subsequent contribution is applied, your current
Guaranteed Minimum Death Benefit will increase by the dollar amount of the
subsequent contribution. On the date that a withdrawal is made, your
Guaranteed Minimum Death Benefit will be adjusted for the withdrawal.
- --------------------------------------------------------------------------------
Copyright 1999 The Equitable Life Assurance Society of the United States,
New York, New York 10104. All rights reserved.
Accumulator is a service mark and baseBUILDER is a registered service mark of
The Equitable Life Assurance Society of the United States.
SUPPLEMENT DATED JANUARY 4, 1999
PROS 4ACS SUPP6 (1/99)
<PAGE>
THE FOLLOWING REPLACES THE THIRD PARAGRAPH AND THE CHART FOLLOWING THE PARAGRAPH
UNDER THE HEADING "GUARANTEED MINIMUM INCOME BENEFIT" ON PAGE 23 OF THE
PROSPECTUS:
Illustrated below are Guaranteed Minimum Income Benefit amounts per $100,000 of
initial contribution, for a male Annuitant age 76 (at issue) on Contract Date
anniversaries as indicated below, assuming no subsequent contributions,
withdrawals, or loans under TSA Certificates.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Contract Date Form of Guaranteed Minimum Income
Anniversary at Exercise Annuity Benefit -- Annual Income
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
7 Life with 7 Year Period Certain $ 11,647.84
14 Life only 21,587.70
------------------------------------------------------------------------------------------------------------
</TABLE>
THE FOLLOWING REPLACES THE INFORMATION UNDER THE HEADING "HOW WITHDRAWALS AFFECT
YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT" ON
PAGE 30 OF THE PROSPECTUS:
Withdrawals will reduce your guaranteed benefits on either a
dollar-for-dollar basis or on a pro rata basis as explained below:
Your current Guaranteed Minimum Income Benefit benefit base (described
below) and your current Guaranteed Minimum Death Benefit will be reduced on
a dollar-for-dollar basis as long as the sum of your withdrawals in a
Contract Year is 3% or less of the beginning of Contract Year Guaranteed
Minimum Death Benefit. Once you take a withdrawal that causes the sum of
your withdrawals in a Contract Year to exceed 3% of the beginning of
Contract Year Guaranteed Minimum Death Benefit, that withdrawal and any
subsequent withdrawals in that same Contract Year will reduce your current
Guaranteed Minimum Income Benefit benefit base and your current Guaranteed
Minimum Death Benefit on a pro rata basis.
Reduction on a dollar-for-dollar basis means that your current benefit will
be reduced by the dollar amount of the withdrawal. Reduction on a pro rata
basis means that we calculate the percentage of the Annuity Account Value
(as of the Transaction Date) that is being withdrawn and we reduce your
current benefit by that same percentage. For example, if your Annuity
Account Value is $30,000 and you withdraw $12,000, you have withdrawn 40%
($12,000/ $30,000) of your Annuity Account Value. If your Guaranteed
Minimum Death Benefit was $40,000 prior to the withdrawal, it would be
reduced by $16,000 ($40,000 x .40) and your new Guaranteed Minimum Death
Benefit after the withdrawal would be $24,000 ($40,000 - $16,000).
The timing of your withdrawals and whether they exceed the 3% threshold
described above can have a significant impact on your Guaranteed Minimum
Income Benefit or Guaranteed Minimum Death Benefit.
THE FOLLOWING REPLACES THE FIRST TWO PARAGRAPH UNDER THE HEADING "GUARANTEED
MINIMUM INCOME BENEFIT BENEFIT BASE" ON PAGE 30 OF THE PROSPECTUS:
On the Contract Date, the Guaranteed Minimum Income Benefit benefit base is
equal to the initial contribution. Thereafter, the Guaranteed Minimum
Income Benefit benefit base is credited with interest at 3% on each
Contract Date anniversary (compounded annually) through the Annuitant's age
85, and 0% thereafter.
On the date that a subsequent contribution is applied, your current
Guaranteed Minimum Income Benefit benefit base will increase by the dollar
amount of the subsequent contribution. On the date that a withdrawal is
made, your Guaranteed Minimum Income Benefit benefit base will be reduced
by (i) the dollar amount of the withdrawal or (ii) the percentage of the
Annuity Account Value being withdrawn, as explained above.
2
<PAGE>
Your Guaranteed Minimum Income Benefit benefit base is applied to
guaranteed minimum annuity purchase factors to determine the Guaranteed
Minimum Income Benefit. The guaranteed minimum annuity purchase factors are
based on (i) interest at 2.5%, and (ii) mortality tables that assume
increasing longevity. These interest and mortality factors are generally
more conservative than the basis underlying current annuity purchase
factors, which means that they would produce less periodic income for an
equal amount applied.
3
<PAGE>
THE FOLLOWING REPLACES APPENDIX III ON PAGE 58 OF THE PROSPECTUS:
APPENDIX III: GUARANTEED MINIMUM DEATH BENEFIT EXAMPLE
- --------------------------------------------------------------------------------
Under the Certificates the death benefit is equal to the Annuity Account Value
or, if greater, the Guaranteed Minimum Death Benefit (see "Guaranteed Minimum
Death Benefit" on page 1 of this Supplement and on page 24 of the Prospectus).
The following is an example illustrating the calculation of the Guaranteed
Minimum Death Benefit. Assuming $100,000 is allocated to the Investment Funds,
no subsequent contributions, no withdrawals, and no loans under a TSA
Certificate, the Guaranteed Minimum Death Benefit for an Annuitant age 76 would
be calculated as follows:
--------------------------------------------------------------------
End of 3% Roll Up to Age 85
Contract Annuity Guaranteed Minimum
Year Account Value Death Benefit
--------------------------------------------------------------------
1 $105,000 $103,000(1)
2 $115,500 $106,090(1)
3 $129,360 $109,273(1)
4 $103,488 $112,551(2)
5 $113,837 $115,927(2)
6 $127,497 $119,405(1)
7 $127,497 $122,987(1)
--------------------------------------------------------------------
The Annuity Account Values for Contract Years 1 through 7 are determined based
on hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%,
12.00% and 0.00%. We are using these rates solely to illustrate how the benefit
is determined. The rates of return bear no relationship to past or future
investment results.
(1) For Contract Years 1 through 3, and 6 through 7 the death benefit is equal
to the Annuity Account Value.
(2) For Contract Years 4 and 5, the death benefit is equal to the Guaranteed
Minimum Death Benefit.
4
<PAGE>
SUPPLEMENT TO
EQUITABLE ACCUMULATOR(SM) SELECT
(IRA, NQ, AND QP)
PROSPECTUS DATED MAY 1, 1998, AND
TAX SHELTERED ANNUITY SUPPLEMENT DATED JUNE 18, 1998
Combination Variable and Fixed Deferred Annuity Certificates
Issued By
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus supplement (SUPPLEMENT) updates certain information contained in
the Profile and Prospectus dated May 1, 1998, and the Tax Sheltered Annuity
prospectus supplement (TSA SUPPLEMENT) dated June 18, 1998. Capitalized terms
have the same meaning as in the Prospectus and TSA Supplement.
This prospectus supplement provides information on a new Investment Fund and a
new Guarantee Period.
IN THE THIRD PARAGRAPH ON THE COVER PAGE OF THE PROSPECTUS, THE NUMBER OF
VARIABLE INVESTMENT FUNDS AVAILABLE IS CHANGED FROM 17 TO 18.
THE FOLLOWING IS ADDED UNDER ITEM 4 "INVESTMENT OPTIONS" AT THE END OF THE LIST
OF THE EQAT INVESTMENT FUNDS ON PAGE 3 OF THE PROFILE AND AT THE END OF THE
THIRD COLUMN UNDER THE LIST OF INVESTMENT FUNDS ON THE COVER PAGE OF THE
PROSPECTUS:
o MFS Growth with Income
IN ITEM 4 OF THE PROFILE IN THE PARAGRAPH FOLLOWING THE LIST OF INVESTMENT
FUNDS, AND THROUGHOUT THE PROSPECTUS, THE DISCUSSION OF AVAILABLE GUARANTEE
PERIODS (REFERRED TO AS GUARANTEED FIXED INTEREST ACCOUNTS IN THE PROFILE) IS
CHANGED. THE GUARANTEE PERIOD MATURING IN 1999 IS NO LONGER AVAILABLE FOR
ALLOCATION. A GUARANTEE PERIOD WITH AN EXPIRATION DATE OF FEBRUARY 15, 2009 IS
ADDED.
IN ITEM 5 "EXPENSES" BEGINNING ON PAGE 3 OF THE PROFILE, THE FOLLOWING
INFORMATION IS ADDED AT THE END OF THE TABLE OF EXPENSES:
<TABLE>
<CAPTION>
- ---------------------------------------- ----------------- ---------------- ----------------- ----------------------------
TOTAL TOTAL EXAMPLES
ANNUAL ANNUAL TOTAL Total Annual
CERTIFICATE PORTFOLIO ANNUAL Expenses at End of:
INVESTMENT FUNDS CHARGES CHARGES CHARGES (1) (2)
1 Year 10 Years
<S> <C> <C> <C> <C> <C>
MFS Growth with Income 1.60% 0.85% 2.45% $27.98 $313.31
- ---------------------------------------- ----------------- ---------------- ----------------- ----------------------------
</TABLE>
Copyright 1999 The Equitable Life Assurance Society of the United States,
New York, New York 10104. All rights reserved.
Accumulator is a service mark of
The Equitable Life Assurance Society of the United States.
SUPPLEMENT DATED JANUARY 4, 1999
PROS 4ACS SUPP7 (1/99)
<PAGE>
THE FOLLOWING IS ADDED AT THE END OF THE TABLE UNDER THE "HRT AND EQAT ANNUAL
EXPENSES (AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)" ON
PAGE 6 OF THE PROSPECTUS:
<TABLE>
<CAPTION>
- -------------------------------------- -------------------- -------------------- -------------------- --------------------
INVESTMENT TOTAL
MANAGEMENT & OTHER ANNUAL
PORTFOLIOS ADVISORY FEES 12B-1 FEE(5) EXPENSES EXPENSES
- ---------- ------------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
MFS Growth with Income (7) 0.55% 0.25% 0.05% 0.85%
- -------------------------------------- -------------------- -------------------- -------------------- --------------------
</TABLE>
THE FOLLOWING IS ADDED AT THE END OF THE FIRST PARAGRAPH UNDER FOOTNOTE (7) ON
PAGE 7 OF THE PROSPECTUS:
The MFS Growth with Income Portfolio had initial seed capital invested on
December 31, 1998.
THE FOLLOWING IS ADDED AT THE END OF THE SECOND PARAGRAPH UNDER FOOTNOTE (7):
The total annual operating expenses for the MFS Growth with Income Portfolio is
also limited to 0.85% of the average daily net assets.
THE FOLLOWING IS ADDED AFTER THE THIRD PARAGRAPH UNDER FOOTNOTE (7):
For the MFS Growth with Income Portfolio which had initial seed capital invested
on December 31, 1998, absent the expense limitation, we estimate that the other
expenses for 1999 will be 0.777%.
THE FOLLOWING IS ADDED AFTER THE "EXAMPLES" TABLE UNDER THE EQAT INVESTMENT
FUNDS ON PAGE 8 OF THE PROSPECTUS:
- -------------------------------------------------------------------------
AT THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------------------------------------------------------------------
MFS Growth with Income $27.98 $86.05 -- --
THE FOLLOWING REPLACES THE SECOND SENTENCE UNDER THE DESCRIPTION OF
"MASSACHUSETTS FINANCIAL SERVICES COMPANY" ON PAGE 12 OF THE PROSPECTUS:
MFS advises MFS Research and MFS Growth with Income, domestic equity portfolios,
and MFS Emerging Growth Companies, an aggressive equity portfolio.
THE FOLLOWING IS ADDED AT THE END OF THE TABLE UNDER "INVESTMENT POLICIES AND
OBJECTIVES OF HRT'S PORTFOLIOS AND EQAT'S PORTFOLIOS" BEGINNING ON PAGE 13 OF
THE PROSPECTUS:
<TABLE>
<CAPTION>
-------------------------------- ------------------------------------------------- ------------------------------
EQAT PORTFOLIO INVESTMENT POLICY OBJECTIVE
-------------------------------- ------------------------------------------------- ------------------------------
<S> <C> <C>
MFS Growth with Income Primarily equity securities that the adviser Reasonable current income
considers to be of high or improving investment and long-term growth of
quality with due regard for both probable capital and income
income and probable safety of capital.
-------------------------------- ------------------------------------------------- ------------------------------
</TABLE>
2
<PAGE>
THE FOLLOWING IS ADDED AT THE END OF THE ADVISORY FEE TABLE FOR THE EQAT
PORTFOLIOS ON PAGE 34 OF THE PROSPECTUS:
---------------------------------------------------
MAXIMUM
INVESTMENT
ADVISORY FEE
EQAT PORTFOLIO (ANNUAL RATE)
---------------------------------------------------
MFS Growth with Income 0.55%
3
