Registration No.
Registration No. 811-07659
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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 [ ]
Amendment No. 29 [X]
(Check appropriate box or boxes)
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SEPARATE ACCOUNT No. 49
of
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Exact Name of Registrant)
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THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Name of Depositor)
1290 Avenue of the Americas, New York, New York 10104
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code: (212) 554-1234
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ROBIN WAGNER
VICE PRESIDENT and COUNSEL
The Equitable Life Assurance Society of the United States
1290 Avenue of the Americas, New York, New York 10104
(Name and Address of Agent for Service)
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Please send copies of all communications to:
PETER E. PANARITES
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W., Suite 825
Washington, D.C. 20036
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Approximate Date of Proposed Public Offering:
As soon as practicable after the effective date of the Registration
Statement.
It is proposed that this filing will become effective (check
appropriate box):
[ ] Immediately upon filing pursuant to paragraph (b) of Rule 485
On (date) pursuant to paragraph (b) of Rule 485.
[ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485.
[ ] On (date) pursuant to paragraph (a)(1) of Rule 485.
If appropriate, check the following box:
[ ] This post-effective amendment designates a new effective date for
previously filed post-effective amendment.
Title of Securities Being Registered:
Units of interest in Separate Account under variable annuity contracts.
The registrant hereby amends this registration statement on such 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 said Section 8(a),
may determine.
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EQUITABLE
A combination variable and fixed deferred
annuity contract
PROSPECTUS DATED MAY 1, 2000
WHAT IS THE EQUITABLE _______?
Equitable _____ is a deferred annuity contract issued by THE EQUITABLE LIFE
ASSURANCE SOCIETY OF THE UNITED STATES. It provides for the accumulation of
retirement savings and for income. The contract offers death benefit protection.
It also offers a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options and the
fixed maturity options ("investment options"). This contract may not currently
be available in all states.
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VARIABLE INVESTMENT OPTIONS
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o Alliance Money Market o JPM Core Bond
o Alliance High Yield o Lazard Large Cap Value
o Alliance Common Stock o Lazard Small Cap Value
o EQ/Alliance Aggressive Stock* o MFS Growth with Income
o Alliance Small Cap Growth o MFS Research
o EQ/Alliance Premier Growth o MFS Emerging Growth Companies
o EQ/Alliance Technology o Merrill Lynch Basic Value Equity
o BT Equity 500 Index o Merrill Lynch World Strategy
o BT Small Company Index o Morgan Stanley Emerging Markets
o BT International Equity Index Equity
o Capital Guardian U.S. Equity o EQ/Putnam Growth & Income Value
o Capital Guardian Research o EQ/Putnam Investors Growth
o Capital Guardian International o EQ/Putnam International Equity
o EQ/Evergreen
o EQ/Evergreen Foundation
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* formerly known as Alliance Aggressive Stock.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of our Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio of EQ Advisors Trust. Your investment results in a variable investment
option will depend on the investment performance of the related portfolio.
FIXED MATURITY OPTIONS. You may allocate amounts to one or more fixed maturity
options. These amounts will receive a fixed rate of interest for a specified
period. Interest is earned at a guaranteed rate set by us. We make a market
value adjustment (up or down) if you make transfers or withdrawals from a fixed
maturity option before its maturity date.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA or Roth
IRA.
We offer two versions of the traditional IRA: "Rollover IRA" and "Flexible
Premium IRA." We also offer two versions of the Roth IRA: "Roth Conversion
IRA" and "Flexible Premium Roth IRA."
o An annuity that is an investment vehicle for a qualified defined
contribution or defined benefit plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity
("TSA")-("Rollover TSA").
A contribution of at least $25,000 is required to purchase a contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2000, is a part of one of the registration
statements. The SAI is available free of charge. You may request one by writing
to our processing office or calling 1-800-789-7771. The SAI has been
incorporated by reference into this prospectus. This prospectus and the SAI can
also be obtained from the SEC's Web site at http://www.sec.gov. The table of
contents for the SAI appears at the back of this prospectus.
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY.
THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK
GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL.
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2 CONTENTS OF THIS PROSPECTUS
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Contents of this prospectus
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EQUITABLE ____________
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Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable _________ at a glance--key features 8
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FEE TABLE 10
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Examples 13
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1
CONTRACT FEATURES AND BENEFITS 15
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How you can purchase and contribute to your contract 15
Owner and annuitant requirements 18
How you can make your contributions 18
What are your investment options under the contract? 18
Allocating your contributions 22
Your right to cancel within a certain number of days 22
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2
DETERMINING YOUR CONTRACT'S VALUE 24
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Your account value and cash value 24
Your contract's value in the variable investment options 24
Your contract's value in the fixed maturity options 24
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3
TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 25
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Transferring your account value 25
Dollar cost averaging 25
Rebalancing your account value 25
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"We," "our," and "us" refer to Equitable Life.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
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CONTENTS OF THIS PROSPECTUS 3
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4
ACCESSING YOUR MONEY 27
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Withdrawing your account value 27
How withdrawals are taken from your account value 28
Loan under Rollover TSA contracts 28
Surrendering your contract to receive its cash value 29
When to expect payments 29
Your annuity payout options 30
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5
CHARGES AND EXPENSES 33
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Charges that Equitable Life deducts 33
Charges that EQ Advisors Trust deducts 33
Group or sponsored arrangements 34
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6
PAYMENT OF DEATH BENEFIT 35
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Your beneficiary and payment of benefit 35
How death benefit payment is made 35
Beneficiary continuation option 36
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7
TAX INFORMATION 38
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Overview 38
Transfers among investment options 38
Taxation of nonqualified annuities 38
Special rules for NQ contracts issued in Puerto Rico 39
Individual retirement arrangements (IRAs) 40
Special rules for nonqualified contracts in qualified plans 50
Tax-Sheltered Annuity contracts (TSAs) 50
Federal and state income tax withholding and information reporting 55
Impact of taxes to Equitable Life 56
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8
MORE INFORMATION 57
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About our Separate Account No. 49 57
About EQ Advisors Trust 57
About our fixed maturity options 58
About the general account 59
About other methods of payment 59
Dates and prices at which contract events occur 60
About your voting rights 60
About legal proceedings 61
About our independent accountants 61
Financial statements 61
Transfers of ownership, collateral assignments,
loans, and borrowing 61
Distribution of the contracts 62
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9
INVESTMENT PERFORMANCE 63
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Benchmarks 63
Communicating performance data 72
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10
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 74
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APPENDICES
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I--Purchase considerations for QP contracts A-1
II--Market value adjustment example B-1
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STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
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4 INDEX OF KEY WORDS AND PHRASES
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Index of key words and phrases
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This index should help you locate more information on the terms used in this
prospectus.
PAGE PAGE
account value 24 IRA 40
annuitant 18 IRS 38
annuity payout options 30 investment options 18
beneficiary 35 market adjusted amount 21
business day 60 market value adjustment 21
cash value 24 maturity value 24
conduit IRA 42 minimum death benefit 35
contract date 9 NQ 40
contract date anniversary 9 portfolio cover
contract year 9 processing office 6
contributions to Roth IRAs 47 QP A-1
regular contributions 47 rate to maturity 58
rollover contributions 48 Required Beginning Date 44
conversion contributions 48 Rollover IRA cover
direct custodian-to-custodian transfers 48 Roth Conversion IRA cover
contributions to traditional IRAs 40 Roth IRA 46
regular contributions 41 SAI cover
rollover contributions 43 SEC cover
direct custodian-to-custodian transfers 43 TOPS 6
fixed maturity amount 20 traditional IRA 40
fixed maturity options 20 TSA 50
Flexible Premium IRA cover unit 24
Flexible Premium Roth IRA cover variable investment options 18
To make this prospectus easier to read, we sometimes use different words than in
the contract or supplemental materials. This is illustrated below. Although we
use different words, they have the same meaning in this prospectus as in the
contract or supplemental materials. Your registered representative can provide
further explanation about your contract.
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PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
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fixed maturity options Guarantee Periods (Guaranteed Fixed
Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
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WHO IS EQUITABLE LIFE? 5
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Who is Equitable Life?
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We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing business
since 1859. Equitable Life is a subsidiary of AXA Financial, Inc. (previously,
The Equitable Companies Incorporated). The majority shareholder of AXA
Financial, Inc. is AXA, a French holding company for an international group of
insurance and related financial services companies. As a majority shareholder,
and under its other arrangements with Equitable Life and Equitable Life's
parent, AXA exercises significant influence over the operations and capital
structure of Equitable Life and its parent. No company other than Equitable
Life, however, has any legal responsibility to pay amounts that Equitable Life
owes under the contract.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$_____ billion in assets as of December 31, 1999. For over 100 years Equitable
Life has been among the largest insurance companies in the United States. We are
licensed to sell life insurance and annuities in all fifty states, the District
of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is
located at 1290 Avenue of the Americas, New York, N.Y. 10104.
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6 WHO IS EQUITABLE LIFE?
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HOW TO REACH US
You may communicate with our processing office as listed below for any of the
following purposes:
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FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
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Equitable ___________
P.O. Box 13014
Newark, NJ 07188-0014
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FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
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Equitable ___________
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
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FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT
BY REGULAR MAIL:
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Equitable ___________
P.O. Box 1547
Secaucus, NJ 07096-1547
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FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT
BY EXPRESS DELIVERY:
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Equitable ___________
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
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REPORTS WE PROVIDE:
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o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar quarter
(four per year); and
o annual statement of your contract values as of the close of the contract
year.
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TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQ ACCESS SYSTEMS:
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TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQ Access is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options; and
o the daily unit values for the variable investment options.
You can also:
o change your allocation percentages and/or transfer among the investment
options (anticipated to be available through EQ Access on or about May 1,
2000); and
o obtain or change your personal identification number (PIN) (anticipated to
be available through EQ Access on or about May 1, 2000).
TOPS and EQ Access is normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. You may use EQ Access by
visiting our Website at http://www.equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or Internet are genuine. For example, we will require
certain personal identification information before we will act on telephone or
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of telephone or Internet instructions, we may be liable for any losses arising
out of any act or omission that constitutes negligience, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following
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WHO IS EQUITABLE LIFE? 7
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telephone or Internet instructions we reasonably believe to be genuine.
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CUSTOMER SERVICE REPRESENTATIVE:
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You may also use our toll-free number (1-800-789-7771) to speak with
one of our customer service representatives. Our customer service
representatives are available on any business day from 8:30 a.m. until
5:30 p.m., Eastern Time.
You should send all contributions, notices, and requests to our processing
office at the address above.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your registered representative;
(2) conversion of a traditional IRA contract to a Roth Conversion IRA or
Flexible Premium Roth IRA contract;
(3) election of the rebalancing program;
(4) requests for loans under Rollover TSA contracts;
(5) spousal consent for loans under Rollover TSA contracts;
(6) tax withholding election; and
(7) election of the beneficiary continuation option.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF
REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options; and
(4) contract surrender and withdrawal requests.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) dollar cost averaging;
(2) rebalancing;
(3) substantially equal withdrawals; and
(4) systematic withdrawals; and
(5) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners both must sign.
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8 EQUITABLE _____ AT A GLANCE -- KEY FEATURES
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Equitable ________ at a glance -- key features
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PROFESSIONAL Equitable ________ variable investment options invest in different portfolios
INVESTMENT managed by professional investment advisers.
MANAGEMENT
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FIXED MATURITY o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years.
OPTIONS
o Each fixed options maturity option offers a guarantee of principal and interest rate if you hold it
to maturity.
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If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a
market value adjustment due to differences in interest rates. This may increase or decrease any
value that you have left in that fixed maturity option. If you surrender your contract, a market
value adjustment may also apply.
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TAX ADVANTAGES o On earnings inside the contract No tax on any dividends, interest, or capital gains until you make
withdrawals from your contract or receive annuity payments.
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o On transfers inside the contract No tax on transfers among investment options.
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If you are buying a contract to fund a retirement plan that already provides tax deferral under
sections of the Internal Revenue Code (such as IRA, QP and Rollover TSA), you should do so for the
contract's features and benefits other than tax deferral. In such situations, the tax deferral
of the contract does not provide additional benefits.
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CONTRIBUTION AMOUNTS o Initial minimum: $25,000
o Additional minimum: $1,000
Maximum contribution limitations may apply.
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ACCESS TO YOUR MONEY o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Contract surrender
You may incur income tax and a tax penalty for certain withdrawals.
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PAYOUT OPTIONS o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(Registered Trademark) payout options
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ADDITIONAL FEATURES o Dollar cost averaging
o Account value rebalancing (quarterly, semiannually, and annually)
o Unlimited free transfers
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EQUITABLE________ AT A GLANCE -- KEY FEATURES 9
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<TABLE>
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FEES AND CHARGES o Daily charges on amounts invested in variable investment options for mortality and expense
risks charge and administrative charge at an annual rate of up to 0.50%.
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The "contract date" is the effective date of a contract. This usually is the business day we receive
your initial contribution. Your contract date will be shown in your contract. The 12-month period
beginning on your contract date and each 12-month period after that date is a "contract year." The
end of each 12-month period is your "contract date anniversary."
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o Under Flexible Premium IRA and Flexible Premium Roth IRA contracts, if your account value at the
end of the contract year is less than $25,000, we deduct an annual administrative charge equal to
$30 or during the first two contract years 2% of your account value, if less. If your account value
is $25,000 or more, we will not deduct the charge.
o We deduct a charge for taxes such as premium taxes that may be imposed in your state. This charge is
generally deducted from the amount applied to an annuity payout option.
o We deduct a $350 annuity administrative fee from amounts applied to the Variable Immediate Annuity
payout option.
o Annual expenses of EQ Advisors Trust portfolios are calculated as a percentage of the average daily
net assets invested in each portfolio. These expenses include management and advisory fees ranging
from 0.25% to 1.15% annually, 12b-1 fees of 0.25% annually, and other expenses.
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ANNUITANT ISSUE AGES NQ: 0-83
Rollover IRA: 20-83; Roth Conversion IRA: 20-83; Rollover TSA: 20-85; QP: 20-75;
Flexible Premium IRA: 20-70 and Flexible Premium Roth IRA; 20-83
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THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY. ALSO, ALL FEATURES OF
THE CONTRACT ARE NOT NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES.
For more detailed information we urge you to read the contents of this
prospectus, as well as your contract. Please feel free to speak with your
registered representative, or call us, if you have any questions.
CURRENTLY, YOU MAY PURCHASE A CONTRACT ONLY IF YOU ARE A PARTICIPANT IN AN
ACCOUNT ESTABLISHED UNDER A FEE-BASED PROGRAM SPONSORED AND MAINTAINED BY A
REGISTERED BROKER-DEALER OR OTHER FINANCIAL INTERMEDIARY WE APPROVE. WE MAY, IN
THE FUTURE, OFFER THIS CONTRACT THROUGH OTHER MEANS. THE FEES AND EXPENSES OF A
FEE-BASED PROGRAM ARE SEPARATE FROM AND IN ADDITION TO THE FEES AND EXPENSES OF
THE CONTRACT. PLEASE CONSULT WITH YOUR PROGRAM SPONSOR FOR MORE DETAILS ABOUT
YOUR FEE-BASED PROGRAM.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, fees and/or charges that are different
from those in the contracts offered by this prospectus. Not every contract is
offered through the same distributor. Upon request, your registered
representative can show you information regarding other Equitable Life annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the Equitable Life annuity contracts.
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10 FEE TABLE
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Fee table
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The fee table below will help you understand the various charges and expenses
that apply to your contract. The table reflects charges you will directly incur
under the contract, as well as charges and expenses of the portfolios that you
will bear indirectly. Charges for taxes, such as premium taxes, may also apply.
Also, an annuity administrative fee will apply if you choose the Variable
Immediate Annuity option. Each of the charges and expenses is more fully
described in "Charges and expenses" later in this prospectus. For a complete
description of portfolio charges and expenses, please see the attached
prospectus for EQ Advisors Trust. The table does not reflect any fees and
charges imposed by your fee-based program.
The fixed maturity options are not covered by the fee table and examples.
However, a market value adjustment (up or down) may apply as a result of a
withdrawal, transfer or surrender of amounts from a fixed maturity option.
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CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN ANNUAL
PERCENTAGE OF DAILY NET ASSETS
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Mortality and expense risks charge and administrative charge(1) 0.50%
Total annual expenses 0.50%
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Flexible Premium IRA and Flexible Premium Roth IRA contracts only: charges we
deduct from your account value on each contract date anniversary.
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Maximum annual administrative charge(2)
If your account value on a contract date anniversary
is less than $25,000 $30
If your account value on a contract date anniversary
is $25,000 or more $0
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CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST
CERTAIN TRANSACTIONS
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Charge if you elect a Variable Immediate Annuity payout option $350
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FEE TABLE 11
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EQ ADVISORS TRUST ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
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TOTAL
OTHER ANNUAL
EXPENSES EXPENSES
MANAGEMENT (AFTER EXPENSE (AFTER EXPENSE
FEES(3) 12B-1 FEES(4) LIMITATION)(5) LIMITATION)(6)
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<S> <C> <C> <C> <C>
Alliance Money Market 0.34% 0.25% 0.03% 0.62%
Alliance High Yield 0.60% 0.25% 0.03% 0.88%
Alliance Common Stock 0.46% 0.25% 0.02% 0.73%
EQ/Alliance Aggressive Stock 0.60% 0.25% 0.02% 0.87%
Alliance Small Cap Growth 0.75% 0.25% 0.05% 1.05%
EQ/Alliance Premier Growth 0.90% 0.25% 0.10% 1.25%
EQ/Alliance Technology 0.90% 0.25% 0.00% 1.15%
BT Equity 500 Index 0.25% 0.25% 0.10% 0.60%
BT Small Company Index 0.25% 0.25% 0.25% 0.75%
BT International Equity Index 0.35% 0.25% 0.40% 1.00%
Capital Guardian U.S. Equity 0.65% 0.25% 0.05% 0.95%
Capital Guardian Research 0.65% 0.25% 0.05% 0.95%
Capital Guardian International 0.85% 0.25% 0.10% 1.20%
EQ/Evergreen 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen Foundation 0.60% 0.25% 0.10% 0.95%
JPM Core Bond 0.45% 0.25% 0.10% 0.80%
Lazard Large Cap Value 0.65% 0.25% 0.05% 0.95%
Lazard Small Cap Value 0.75% 0.25% 0.10% 1.10%
MFS Growth with Income 0.60% 0.25% 0.10% 0.95%
MFS Research 0.65% 0.25% 0.05% 0.95%
MFS Emerging Growth Companies 0.65% 0.25% 0.10% 1.00%
Merrill Lynch Basic Value Equity 0.60% 0.25% 0.10% 0.95%
Merrill Lynch World Strategy 0.70% 0.25% 0.25% 1.20%
Morgan Stanley Emerging Markets Equity 1.15% 0.25% 0.35% 1.75%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% 0.95%
EQ/Putnam Investors Growth 0.65% 0.25% 0.15% 1.05%
EQ/Putnam International Equity 0.85% 0.25% 0.15% 1.25%
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</TABLE>
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Notes:
(1) A portion of this charge is for providing the guaranteed minimum death
benefit. The charge shown is the maximum amount we may charge.
(2) During the first two contract years, this charge is equal to the lesser of
$30 or 2% of your account value, if it applies.
(3) The management fees shown reflect revised management fees, effective May 1,
2000, as approved by shareholders at a meeting on April 14, 2000. The
management fees or the maximum management fees, if a maximum applies, for
each portfolio cannot be increased without a vote of that portfolio's
shareholders.
(4) Portfolio shares are all subject to fees imposed under the distribution
plan (the "Rule 12b-1 Plan") adopted by EQ Advisors Trust pursuant to Rule
12b-1 under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts. Prior to October 18, 1999, the
total annual expenses for the Alliance Small Cap Growth portfolio were
limited to 1.20% under an expense limitation arrangement related to that
portfolio's Rule 12b-1 Plan. The arrangement is no longer in effect. The
amounts shown have been restated to reflect the expenses that would have
been incurred in 1999, absent the expense limitation agreement.
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12 FEE TABLE
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(5) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. See footnote (6) for any expense limitation
agreements. On October 18, 1999, the Alliance portfolios (other than
EQ/Alliance Premier Growth) became part of the portfolios of EQ Advisors
Trust. The "Other Expenses" for these portfolios have been restated to
reflect the estimated expenses that would have been incurred had these
portfolios been portfolios of EQ Advisors Trust for the entire year ended
December 31, 1999. The restated expenses reflect an increase of 0. % for
each of these portfolios.
(6) Equitable Life, EQ Advisors Trust's manager, has entered into an expense
limitation agreement with respect to certain portfolios. Under this
agreement Equitable Life has agreed to waive or limit its fees and assume
other expenses. Under the expense limitation agreement, total annual
operating expenses of certain portfolios (other than interest, taxes,
brokerage commissions, capitalized expenditures, extraordinary expenses,
and 12b-1 fees) are limited as a percentage of the average daily net assets
of the following portfolios: 1.75% for Morgan Stanley Emerging Markets
Equity; 1.25% for EQ/Alliance Premier Growth and EQ/Putnam International
Equity; 1.20% for Merrill Lynch World Strategy and Capital Guardian
International; 1.15% for EQ/Alliance Technology; 1.10% Lazard Small Cap
Value; 1.00% for BT International Equity Index; 0.95% for MFS Emerging
Growth Companies, for Capital Guardian U.S. Equity, Capital Guardian
Research, EQ/Evergreen, EQ/Evergreen Foundation, Lazard Large Cap Value,
MFS Growth with Income, MFS Research, Merrill Lynch Basic Value Equity,
EQ/Putnam Growth & Income Value, and EQ/Putnam Investors Growth; 0.90% for
JPM Core Bond; 0.75% for BT Small Company Index; 0.60% for BT Equity 500
Index. The expense limitations for the EQ/Alliance Premier Growth, BT
Equity 500 Index, JPM Core Bond, MFS Growth with Income, MFS Research, MFS
Emerging Growth Companies, Merrill Lynch Basic Value Equity and EQ/Putnam
International Equity portfolios reflect an increase effective on May 1,
2000. The expense limitation for the EQ/Evergreen portfolio reflects a
decrease effective on May 1, 2000.
Absent the expense limitation, the "Other Expenses" for 1999 on an
annualized basis for each of the portfolios would have been as follows:
0.99% for Morgan Stanley Emerging Markets Equity; 1.5% for EQ Alliance
Technology; 0.22% for EQ/Alliance Premier Growth; 0.31% for EQ/Putnam
International Equity; 0.45% for Merrill Lynch World Strategy; 0.65% for
Capital Guardian International; 0.25% for Lazard Small Cap Value; 0.48% for
BT International Equity Index; 0.16% for MFS Emerging Growth Companies;
0.33% for Capital Guardian U.S. Equity; 0.46% for Capital Guardian
Research; 1.86% for EQ/Evergreen; 1.06% for EQ/Evergreen Foundation; 0.20%
for Lazard Large Cap Value; 0.36% for MFS Growth with Income; 0.16% for MFS
Research; 0.16% for Merrill Lynch Basic Value Equity; 0.15% for EQ/Putnam
Growth & Income Value; 0.18% for EQ/Putnam Investors Growth; 0.19% for JPM
Core Bond; 0.70% for BT Small Company Index; 0.17% for BT Equity 500 Index;
and % for Alliance Technology. Initial seed capital was invested on April
30, 1999 for the EQ/Alliance Premier Growth, Capital Guardian U.S. Equity,
Capital Guardian Research, and Capital Guardian International portfolios
and will be invested on or about May 1, 2000 for the Alliance Technology
portfolio and therefore expenses for those portfolios have been estimated.
Each portfolio may at a later date make a reimbursement to Equitable Life
for any of the management fees waived or limited and other expenses assumed
and paid by Equitable Life pursuant to the expense limitation agreement
provided that, among other things, such portfolio has reached sufficient
size to permit such reimbursement to be made and provided that the
portfolio's current annual operating expenses do not exceed the operating
expense limit determined for such portfolio. For more information see the
prospectus for EQ Advisors Trust.
<PAGE>
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FEE TABLE 13
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
EXAMPLES
The examples below show the expenses that a hypothetical contract owner would
pay in the situations illustrated. We assume that a $1,000 contribution is
invested in one of the variable investment options listed and a 5% annual return
is earned on the assets in that option.(1)
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AT THE END OF EACH PERIOD SHOWN,
THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alliance Money Market $ $ $ $
Alliance High Yield $ $ $ $
Alliance Common Stock $ $ $ $
EQ/Alliance Aggressive Stock $ $ $ $
Alliance Small Cap Growth $ $ $ $
EQ/Alliance Premier Growth $ $
EQ/Alliance Technology
BT Equity 500 Index $ $ $ $
BT Small Company Index $ $ $ $
BT International Equity Index $ $ $ $
Capital Guardian U.S. Equity $ $
Capital Guardian Research $ $
Capital Guardian International $ $
EQ/Evergreen
EQ/Evergreen Foundation
JPM Core Bond $ $ $ $
Lazard Large Cap Value $ $ $ $
Lazard Small Cap Value $ $ $ $
MFS Growth with Income $ $
MFS Research $ $ $ $
MFS Emerging Growth Companies $ $ $ $
Merrill Lynch Basic Value Equity
Merrill Lynch World Strategy
Morgan Stanley Emerging Markets Equity $ $ $ $
EQ/Putnam Growth & Income Value $ $ $ $
EQ/Putnam Investors Growth $ $ $ $
EQ/Putnam International Equity $ $ $ $
- ------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
14 FEE TABLE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity payout option at the end of any of the periods shown
in the examples. This is because if the amount applied to purchase an
annuity payout option is less than $2,000, or the initial payment is less
than $20, we may pay the amount to you in a single sum instead of as
payments under an annuity payout option. See "Accessing your money."
IF YOU ELECT A VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued (see note (1) above), and you
elect a Variable Immediate Annuity payout option, the expenses shown in the
example would, in each case, be increased by $______, based on the average
amount applied to annuity payout options in 1999. See "Annuity administrative
fee" in "Charges and expenses."
<PAGE>
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CONTRACT FEATURES AND BENEFITS 15
- --------------------------------------------------------------------------------
1
Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum contribution amount of $25,000 to purchase
a contract. The following table summarizes our rules regarding contributions to
your contract. All ages in the table refer to the age of the annuitant named in
the contract.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining contract
benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AVAILABLE FOR
CONTRACT FOR ANNUITANT LIMITATIONS ON
TYPE ISSUE AGES SOURCE OF CONTRIBUTIONS CONTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NQ 0 through 83 o After-tax money. o No additional contributions after age 84.
o Paid to us by check or transfer of
contract value in a tax-deferred
exchange under Section 1035 of the
Internal Revenue Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 83 o Rollovers from a qualified plan. o No rollover or direct transfer
contributions after age 84.
o Rollovers from a TSA.
o Contributions after age 70 1/2 must be
o Rollovers from another traditional net of required minimum distributions.
individual retirement arrangement.
o Regular IRA contributions are not
o Direct custodian-to-custodian transfers permitted.
from another traditional individual
retirement arrangement.
Although we accept ongoing regular contributions under the Rollover IRA, we intend that this
contract be used for rollover contributions. Please refer to "Withdrawals, payments and
transfers of funds out of traditional IRAs" in "Tax Information" for a discussion of conduit
IRAs.
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion IRA 20 through 83 o Rollovers from another Roth IRA. o No additional rollover or direct transfer
contributions after age 84.
o Conversion rollovers from a traditional
IRA. o Conversion rollovers after age 70 1/2 must be
net of required minimum
o Direct transfers from another Roth IRA. distributions for the traditional IRA you
are rolling over.
o You cannot roll over funds from a
traditional IRA if your adjusted gross
income is $100,000 or more.
o Regular after-tax contributions are not
permitted.
Only rollover and direct transfer contributions are permitted under the Roth Conversion IRA
contract.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
16 CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AVAILABLE FOR
CONTRACT FOR ANNUITANT LIMITATIONS ON
TYPE ISSUE AGES SOURCE OF CONTRIBUTIONS CONTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Rollover TSA 20 through 85 o Rollovers from another TSA contract or o Regular ongoing payroll contributions
arrangement. are not permitted.
o Rollovers from a traditional IRA which o No additional rollover or direct transfer
was a "conduit" for TSA funds contributions after age 86.
previously rolled over.
o Contributions after age 70 1/2 must be
o Direct transfers from another contract or net of required minimum distributions.
arrangement under Section 403(b) of the
Internal Revenue Code, complying
with IRS Revenue Ruling 90-24.
This contract is not necessarily available in your state.
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o Only transfer contributions from an o Regular ongoing payroll contributions
existing qualified plan trust as a change are not permitted.
of investment vehicle under the plan.
o No additional transfer contributions
o The plan must be qualified under after age 76.
Section 401(a) of the Internal Revenue
Code. o For defined benefit plans, employee
contributions are not permitted.
o For 401(k) plans, transferred
contributions may only include o Contributions after age 70 1/2 must be
employee pre-tax contributions. net of any required minimum distributions.
Please refer to Appendix I for a discussion of purchase considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
Flexible Premium IRA 20 through 70 o "Regular" traditional IRA contributions. o No regular IRA contributions in the
calendar year you turn age 70 1/2 and
o Rollovers from a qualified plan. thereafter.
o Rollovers from a TSA. o Total regular contributions may not
exceed $2,000 for a year.
o Rollovers from another traditional
individual retirement arrangement. o No additional rollover or direct transfer
contributions after age 71.
o Direct custodian-to-custodian transfers
from another traditional individual o Rollover and direct transfer contributions
retirement arrangement. after age 70 1/2 must be net of required
minimum distributions.
- ------------------------------------------------------------------------------------------------------------------------------------
Although we accept rollover and direct transfer contributions under the Flexible Premium IRA
contract, we intend that this contract be used for ongoing regular contributions. Please
refer to "Withdrawals, payments and transfer of funds out of traditional IRAs" in "Tax
Information" for a discussion of conduit IRAs.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
CONTRACT FEATURES AND BENEFITS 17
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AVAILABLE FOR
CONTRACT FOR ANNUITANT LIMITATIONS ON
TYPE ISSUE AGES SOURCE OF CONTRIBUTIONS CONTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Flexible Premium 20 through 83 o Regular after-tax contributions. o No additional regular after-tax
Roth IRA contributions after age 84.
o Rollovers from another Roth IRA.
o No additional rollover or direct transfer
o Conversion rollovers from a traditional contributions after age 84.
IRA.
o Direct transfers from another Roth IRA. o Contributions are subject to income limits
and other tax rules. See "Tax information--
Contributions to Roth IRAs."
Although we accept rollover and direct transfer contributions under the Flexible Premium
Roth IRA contract, we intend that this contract be used for ongoing regular contributions.
Please refer to "Withdrawals, payments and transfers of funds out of traditional IRAs" in
"Tax Information" for a discussion of conduit IRAs.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See "Tax information" for a more detailed discussion of sources of contributions
and certain contribution limitations. We may refuse to accept any contribution
if the sum of all contributions under all Equitable ___________ contracts with
the same annuitant would then total more than $1,500,000. We may also refuse to
accept any contribution if the sum of all contributions under all Equitable Life
annuity accumulation contracts that you own would then total more than
$2,500,000.
For information on when contributions are credited under your contract see
"Dates and prices at which contract events occur" in "More information" later in
this prospectus.
<PAGE>
- --------------------------------------------------------------------------------
18 CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different than the owner. A joint owner
may also be named. Only natural persons can be joint owners. This means that an
entity such as a corporation cannot be a joint owner.
Under all IRA and Rollover TSA contracts the owner and annuitant must be the
same person.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix I for more
information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's QP or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to Equitable Life. We do not accept third-party
checks endorsed to us except for rollover contributions, tax-free exchanges or
trustee checks that involve no refund. All checks are subject to our ability to
collect the funds. We reserve the right to reject a payment if it is received in
an unacceptable form.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose. Additional contributions may also be made under our automatic
investment program. Methods of payment are discussed in detail in "More
information" later in this prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the payments. If any information is missing or
unclear, we will try to obtain that information. If we are unable to obtain all
of the information we require within five business days after we receive an
incomplete application or form, we will inform the registered representative
submitting the application on your behalf. We will then return the contribution
to you unless you specifically direct us to keep your contribution until we
receive the required information.
- --------------------------------------------------------------------------------
Our "business day" is any day the New York Stock Exchange is open for trading.
- --------------------------------------------------------------------------------
SECTION 1035 EXCHANGES
You may apply the value of an existing nonqualified deferred annuity contract
(or life insurance or endowment contract) to purchase an Equitable ________ NQ
contract in a tax-free exchange if you follow certain procedures as shown in the
form that we require you to use. Also see "Tax information" later in this
prospectus.
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options and the fixed
maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any of the variable investment options will depend on
the investment performance of the underlying portfolios. Listed below are the
currently available portfolios, their investment objectives, and their advisers.
- --------------------------------------------------------------------------------
You can choose from among variable investment options.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CONTRACT FEATURES AND BENEFITS 19
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PORTFOLIOS OF EQ ADVISORS TRUST
- ---------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alliance Money Market High level of current income while preserving Alliance Capital Management L.P.
assets and maintaining liquidity
- ---------------------------------------------------------------------------------------------------------------------------
Alliance High Yield High return by maximizing current income and, Alliance Capital Management L.P.
to the extent consistent with that objective,
capital appreciation
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock Long-term growth of capital and increasing Alliance Capital Management L.P.
income
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Aggressive Stock Long-term growth of capital Alliance Capital Management L.P.
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth Long-term growth of capital Alliance Capital Management L.P.
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth Long-term growth of capital Alliance Capital Management L.P.
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology Long-term growth of capital Alliance Capital Management L.P.
- ---------------------------------------------------------------------------------------------------------------------------
BT Equity 500 Index Replicate as closely as possible (before Bankers Trust Company
deduction of portfolio expenses) the total
return of the Standard & Poor's 500 Composite
Stock Price Index
- ---------------------------------------------------------------------------------------------------------------------------
BT Small Company Index Replicate as closely as possible (before Bankers Trust Company
deduction of portfolio expenses) the
total return of the Russell 2000 Index
- ---------------------------------------------------------------------------------------------------------------------------
BT International Equity Index Replicate as closely as possible (before Bankers Trust Company
deduction of portfolio expenses) the total
return of the Morgan Stanley Capital
International Europe, Australia, Far East
Index
- ---------------------------------------------------------------------------------------------------------------------------
Capital Guardian U.S. Equity Long-term growth of capital Capital Guardian Trust Company
- ---------------------------------------------------------------------------------------------------------------------------
Capital Guardian Research Long-term growth of capital Capital Guardian Trust Company
- ---------------------------------------------------------------------------------------------------------------------------
Capital Guardian International Long-term growth of capital by investing Capital Guardian Trust Company
primarily in non-United tates equity
securities
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Capital appreciation Evergreen Asset Management Corp.
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
20 CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
PORTFOLIOS OF EQ ADVISORS TRUST
- ------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQ/Evergreen Foundation In order of priority, reasonable income, Evergreen Asset Management Corp.
conservation of capital, and capital
appreciation
- ------------------------------------------------------------------------------------------------------------------------------
JPM Core Bond High total return consistent with moderate J. P. Morgan Investment Management Inc.
risk of capital and maintenance of
liquidity
- ------------------------------------------------------------------------------------------------------------------------------
Lazard Large Cap Value Capital appreciation Lazard Asset Management
- ------------------------------------------------------------------------------------------------------------------------------
Lazard Small Cap Value Capital appreciation Lazard Asset Management
- ------------------------------------------------------------------------------------------------------------------------------
MFS Growth with Income Reasonable current income and long-term Massachusetts Financial Services Company
growth of capital and income
- ------------------------------------------------------------------------------------------------------------------------------
MFS Research Long-term growth of capital and future Massachusetts Financial Services Company
income
- ------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies Long-term capital growth Massachusetts Financial Services Company
- ------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Basic Value Equity Capital appreciation and secondarily, Merrill Lynch Asset Management, L.P.
income
- ------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch World Strategy High total investment return Merrill Lynch Asset Management, L.P.
- ------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Long-term capital appreciation Morgan Stanley Asset Management
Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value Capital growth, current income is a Putnam Investment Management, Inc.
secondary objective
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth Long-term growth of capital and any Putnam Investment Management, Inc.
increased income that results from this
growth
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity Capital appreciation Putnam Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Other important information about the portfolios is included in the prospectus
for EQ Advisors Trust attached at the end of this prospectus.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. You can allocate your contributions to one or more of these fixed
maturity options. These amounts become part of our general account assets. They
will accumulate interest at the "rate to maturity" for each fixed maturity
option. The total amount you allocate to and accumulate in each fixed maturity
option is called the "fixed maturity amount." The fixed maturity options are not
available in contracts issued in Maryland.
<PAGE>
- --------------------------------------------------------------------------------
CONTRACT FEATURES AND BENEFITS 21
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution. This rate will never be less than
3%. If you make any withdrawals or transfers from a fixed maturity option before
the maturity date, we will make a "market value adjustment" that may increase or
decrease any fixed maturity amount you have left in that fixed maturity option.
We will discuss the market value adjustment below and in greater detail later in
this prospectus in "More information."
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on February 15th for each of the maturity years 2001 through
2010. Not all of these fixed maturity options will be available for annuitant
ages 76 and older. See "Allocating your contributions" below. As fixed maturity
options expire, we expect to add maturity years so that generally 10 fixed
maturity options are available at any time.
We will not accept allocations to a fixed maturity option if on the date the
contribution is to be applied:
o the fixed maturity option's maturity date is within the current calendar year;
or
o the rate to maturity is 3% or less.
YOUR CHOICES AT THE MATURITY DATE. We will notify you on or before December 31st
of the year before each of your fixed maturity options is scheduled to mature.
At that time, you may choose to have one of the following take place on the
maturity date, as long as none of the conditions listed above or in "Allocating
your contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option, or
into any of the variable investment options; or
(b) withdraw the maturity value.
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the fixed
maturity option that will mature next.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract or when we make deductions for charges) from a fixed
maturity option before it matures we will make a market value adjustment, which
will increase or decrease any fixed maturity amount you have in that fixed
maturity option. The amount of the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount being
withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate an
amount to a fixed maturity option to the time that you take a withdrawal, the
market value adjustment will be negative. Likewise, if interest rates drop at
the end of that time, the market value adjustment will be positive. Also, the
amount of the market value adjustment, either up or down, will be greater the
longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
<PAGE>
- --------------------------------------------------------------------------------
22 CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this prospectus. Appendix II to this prospectus provides an example of how the
market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose either of two ways to allocate your contributions under your
contract: self-directed and principal assurance.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options and fixed maturity options. Allocations must be in whole
percentages and you may change your allocations at any time. However, the total
of your allocations must equal 100%. If the annuitant is age 76 or older, you
may allocate contributions to fixed maturity options if their maturities are
five years or less. Also, you may not allocate amounts to fixed maturity options
with maturity dates that are later than the February 15th immediately following
the date annuity payments are to begin.
PRINCIPAL ASSURANCE ALLOCATION
You can elect this allocation program with a minimum initial contribution of
$25,000. You select a fixed maturity option and we specify the portion of your
initial contribution to be allocated to that fixed maturity option in an amount
that will cause the maturity value to equal the amount of your entire initial
contribution on the fixed maturity option's maturity date. The maturity date you
select generally may not be later than 10 years, or earlier than 7 years from
your contract date. You allocate the rest of your contribution to the variable
investment options however you choose.
For example, if your initial contribution is $50,000, and on January 18, 2000
you chose the fixed maturity option with a maturity date of February 15, 2010,
since the rate to maturity was ____% on January 18, 2000, we would have
allocated $____ to that fixed maturity option and the balance to your choice of
variable investment options. On the maturity date your value in the fixed
maturity option would be $______.
The principal assurance allocation is only available for annuitant ages 75 or
younger when the contract is issued. If you are purchasing a Rollover IRA,
Flexible Premium IRA, QP or Rollover TSA contract, before you select a maturity
year that would extend beyond the year in which you will reach age 70 1/2, you
should consider whether your value in the variable investment options or your
other traditional IRA funds are sufficient to meet your required minimum
distributions. See "Tax information."
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it to
us for a refund. To exercise this cancellation right you must mail the contract
directly to our processing office within 10 days after you receive it. In some
states, this "free look" period may be longer.
Generally, your refund will equal your account value under the contract and will
reflect (i) any investment gain or loss in the variable investment options (less
the daily charges we deduct), and (ii) any positive or negative market value
adjustments in the fixed maturity options through the date we receive your
contract. However, some states require that we refund the full amount of your
contribution (not reflecting (i) and (ii) above). For any IRA contract returned
to us within seven days after you receive it, we are required to refund the full
amount of your contribution.
We may require that you wait six months before you may apply for a contract with
us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have received
your contribution or not.
<PAGE>
- --------------------------------------------------------------------------------
CONTRACT FEATURES AND BENEFITS 23
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Please see "Tax information" for possible consequences of cancelling your
contract.
If you fully convert an existing traditional IRA contract to a Roth Conversion
IRA or Flexible Premium Roth IRA contract, you may cancel your Roth Conversion
IRA or Flexible Premium Roth IRA contract and return to a Rollover IRA or
Flexible Premium IRA contract, whichever applies. Our processing office or your
registered representative can provide you with the cancellation instructions.
<PAGE>
- --------------------------------------------------------------------------------
24 DETERMINING YOUR CONTRACT'S VALUE
- --------------------------------------------------------------------------------
2
Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the (i) values you have in the variable
investment options, (ii) market adjusted amounts in the fixed maturity options
and (iii) value you have in the loan reserve account (applies for Rollover TSA
contracts only). These amounts are subject to certain fees and charges discussed
in "Charges and expenses."
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value less the amount
of any outstanding loan plus accrued interest (applicable to Rollover TSA
contracts only).
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the charges that we deduct under the contract.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
The unit value for each variable investment option depends on the investment
performance of that option less daily charges for mortality and expense risks
and administrative expenses. On any day, your value in any variable investment
option equals the number of units credited to that option, adjusted for any
units purchased for or deducted from your contract under that option, multiplied
by that day's value for one unit. The number of your contract units in any
variable investment option does not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal;
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of a variable investment option;
(iv) decreased to reflect a transfer of your loan amount to the loan reserve
account under a Rollover TSA contract.
A description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date is
the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value.
<PAGE>
- --------------------------------------------------------------------------------
TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 25
- --------------------------------------------------------------------------------
3
Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer some
or all of your account value among the investment options, subject to the
following:
o You may not transfer to a fixed maturity option that matures in the current
calendar year, or that has a rate to maturity of 3% or less.
o If the annuitant is 76 or older, you must limit your transfers to fixed
maturity options to those with maturities of five years or less. Also, the
maturity dates may be no later than the February 15th immediately following
the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date the transfer may cause a market value adjustment.
You may request a transfer in writing or by telephone using TOPS. (We anticipate
that transfers will be available on or about May 1, 2000 online by using
EQAccess.) You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We may, at any time, restrict the use of market timers and other agents acting
under a power of attorney who are acting on behalf of more than one contract
owner. Any agreements to use market timing services to make transfers are
subject to our rules in effect at that time.
We will confirm all transfers in writing.
DOLLAR COST AVERAGING
Dollar cost averaging allows you to gradually transfer amounts from the Alliance
Money Market option to the other variable investment options by periodically
transferring approximately the same dollar amount to the other variable
investment options you select. This will cause you to purchase more units if the
unit's value is low and fewer units if the unit's value is high. Therefore, you
may get a lower average cost per unit over the long term. This plan of
investing, however, does not guarantee that you will earn a profit or be
protected against losses.
If your value in the Alliance Money Market option is at least $5,000, you may
choose, at any time, to have a specified dollar amount of your value transferred
from that option to the other variable investment options. You can select to
have transfers made on a monthly, quarterly or annual basis. The transfer date
will be the same calendar day of the month as the contract date, but not later
than the 28th day of the month. You can also specify the number of transfers or
instruct us to continue making the transfers until all amounts in the Alliance
Money Market option have been transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the Alliance Money Market option at
the time the program is elected, divided by the number of transfers scheduled to
be made.
If, on any transfer date, your value in the Alliance Money Market option is
equal to or less than the amount you have elected to have transferred, the
entire amount will be transferred. The dollar cost averaging program will then
end. You may change the transfer amount once each contract year, or cancel this
program at any time.
----------
You may not elect dollar cost averaging if you are participating in the
rebalancing program.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
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26 TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
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(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis. Rebalancing will occur on the same day of
the month as the contract date).
While your rebalancing program is in effect, we will transfer amounts among each
variable investment option so that the percentage of your account value that you
specify is invested in each option at the end of each rebalancing date. Your
entire account value in the variable investment options must be included in the
rebalancing program.
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Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your registered representative or
other financial adviser before electing the program.
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You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect, we will process the
transfer as requested; the rebalancing program will remain in effect unless you
request that it be canceled in writing.
You may not elect the rebalancing program if you are participating in the dollar
cost averaging program. Rebalancing is not available for amounts you have
allocated in the fixed maturity options.
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ACCESSING YOUR MONEY 27
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4
Accessing your money
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WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. For the tax consequences of withdrawals, see
"Tax information."
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METHOD OF WITHDRAWAL
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SUBSTANTIALLY MINIMUM
CONTRACT LUMP SUM SYSTEMATIC EQUAL DISTRIBUTION
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NQ Yes Yes No No
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Rollover IRA Yes Yes Yes Yes
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Flexible Premium IRA Yes Yes Yes Yes
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Roth Conversion IRA Yes Yes Yes No
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Flexible Premium Yes Yes Yes No
Roth IRA
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QP Yes No No Yes
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Rollover TSA Yes* No No Yes
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* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity Contracts (TSAs)" in "Tax Information."
We impose no withdrawal charge for withdrawals out of the Equitable __________
variable annuity contract. However, withdrawals, including withdrawals made to
pay all or part of any fee that may be associated with the fee-based program,
may be subject to income tax and a 10% penalty tax, as described in "Tax
Information", later in this prospectus. In addition, the fee-based program
sponsor may apply a charge if you decide to no longer participate in the
program. You should consult with your program sponsor for more details about
your particular fee-based arrangement.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time. The
minimum amount you may withdraw is $1,000. If you request to withdraw more than
90% of a contract's current cash value, after a withdrawal, we will treat it as
a request to surrender the contract for its cash value. See "Surrendering your
contract to receive its cash value" below.
SYSTEMATIC WITHDRAWALS
(NQ and all IRA contracts)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value.
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly, and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would be
less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59 1/2 and 70 1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change the
amount or percentage in any contract year in which you have already taken a lump
sum withdrawal. You can cancel the systematic withdrawal option at any time.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All IRA contracts)
The substantially equal withdrawals option allows you to receive distributions
from your account value without triggering the 10% additional federal tax
penalty, which normally applies to distributions made before age 59 1/2. See
"Tax information." Once you begin to take substantially equal withdrawals, you
should not stop them or change the pattern of your withdrawals until the later
of age 59 1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on those withdrawals.
You may elect to take substantially equal withdrawals at any time before age
59 1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later
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28 ACCESSING YOUR MONEY
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than the 28th day of the month. You may not elect to receive the first payment
in the same contract year in which you took a lump sum withdrawal. We will
calculate the amount of your substantially equal withdrawals. The payments will
be made monthly, quarterly or annually as you select. These payments will
continue until we receive written notice from you to cancel this option or you
take a lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year in
which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, Flexible Premium IRA, QP and Rollover TSA
Contracts Only -- See "Tax information")
We offer the minimum distribution withdrawal option to help you meet required
minimum distributions under federal income tax rules. You may elect this option
in the year in which you reach age 70 1/2. The minimum amount we will pay out is
$250, or if less your account value. If your account value is less than $500
after the withdrawal, we will treat it as a request to surrender the contract
for its cash value. See "Surrendering your contract to receive its cash value"
below. You may elect the method you want us to use to calculate your minimum
distribution withdrawals from the choices we offer. Currently, minimum
distribution withdrawal payments will be made annually.
We will calculate your annual payment based on your account value at the end of
the prior calendar year based on the method you choose.
Under Rollover TSA contracts, you may not elect minimum distribution withdrawals
if a loan is outstanding.
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For Rollover IRA, Flexible Premium IRA, QP and Rollover TSA contracts, we will
send a form outlining the distribution options available before you reach age
70-1/2 (if you have not begun your annuity payments before that time).
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HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options. If there is
insufficient value or no value in the variable investment options, any
additional amount of the withdrawal required or the total amount of the
withdrawal will be withdrawn from the fixed maturity options in order of the
earliest maturity date(s) first. A market value adjustment may apply to
withdrawals from the fixed maturity options.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are taking minimum distribution withdrawals.
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may
only take a loan with the written consent of your spouse. Your contract contains
further details of the loan provision. Also, see "Tax information" for general
rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum loan
amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account
value, subject to any limits under the federal income tax rules. The term of a
loan is five years. However, if you use the loan to acquire your primary
residence, the term is 10 years. The term may not extend beyond the earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
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ACCESSING YOUR MONEY 29
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(3) the date a death benefit is paid (the outstanding loan will be deducted from
the death benefit amount).
Interest will accrue daily on your outstanding loan at a rate we set. The loan
interest rate will be equal to the Moody's Corporate Bond Yield Averages for Baa
bonds for the calendar month ending two months before the first day of the
calendar quarter in which the rate is determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options. If there is insufficient value or no value in the variable
investment options, any additional amount of the loan will be subtracted from
the fixed maturity options in order of the earliest maturity date(s) first. A
market value adjustment may apply.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar amount
of the loan repaid from the loan reserve account to the investment options
according to the allocation percentages we have on our records.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions.) For a surrender to be effective, we must
receive your written request and your contract at our processing office. We will
determine your cash value on the date we receive the required information. All
benefits under the contract will terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Choosing your annuity payout options"
below. For the tax consequences of surrenders, see "Tax information."
If you purchase this contract through a fee-based arrangement and later
terminate the arrangement, your contract will continue in force.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you withdraw
and, upon surrender, payment of the cash value. We may postpone such payments or
applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the fixed maturity options
(other than for death benefits) for up to six months while you are living. We
also may defer payments for a reasonable amount of time (not to exceed 10 days)
while we are waiting for a contribution check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
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30 ACCESSING YOUR MONEY
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YOUR ANNUITY PAYOUT OPTIONS
Equitable _______________ offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments, which can be either level or
increasing, and others enable you to receive variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age.
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
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Variable Immediate Annuity Life annuity (not available in
payout options New York)
Life annuity with period
certain
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Income Manager payout Life annuity with a period
options (available for certain
annuitants age 83 or less Period certain annuity
at contract issue)
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o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following the
annuitant's death with this payout option, it provides the highest monthly
payment of any of the life annuity options, so long as the annuitant is
living.
o Life annuity with period certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain cannot
extend beyond the annuitant's life expectancy. A life annuity with a period
certain is the form of annuity under the contract that you will receive if you
do not elect a different payout option. In this case, the period certain will
be based on the annuitant's age and will not exceed 10 years.
o Life annuity with refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount applied
to purchase the annuity option has been recovered, payments to the beneficiary
will continue until that amount has been recovered. This payout option is
available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15 or 20 years. The guaranteed period may not
exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of the
payments as a single sum payment with the rest paid in monthly annuity
payments. Currently, this payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with refund
certain payout options are available on a single life or joint and survivor life
basis. The joint and survivor life annuity guarantees payments for the rest of
the annuitant's life and, after the annuitant's death, payments continue to the
survivor. We may offer other payout options not outlined here. Your registered
representative can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments that will be based
either on the tables of guaranteed annuity purchase factors in your contract or
on our then current annuity purchase factors, whichever is more favorable for
you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your registered representative. Before you select a variable
immediate annuity payout option, you should read the prospectus which contains
important information that you should know. Variable Immediate Annuities may be
funded through your choice of available variable investment options investing in
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ACCESSING YOUR MONEY 31
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portfolios of EQ Advisors Trust. The contract also offers a fixed annuity option
that can be elected in combination with the variable annuity payout options. The
amount of each variable annuity payment will fluctuate, depending upon the
performance of the variable investment options, and whether the actual rate of
investment return is higher or lower than an assumed base rate.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout annuity
contracts. The other payout annuity contracts provide higher or lower income
levels, but do not have all the features of the Income Manager payout annuity
contract. You may request an illustration of the Income Manager payout annuity
contract from your registered representative. Income Manager payout options are
described in a separate prospectus that is available from your registered
representative. Before you select an Income Manager payout option, you should
read the prospectus which contains important information that you should know.
Both Income Manager payout options provide guaranteed level payments (NQ and IRA
contracts). The Income Manager (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only).
For QP and Rollover TSA contracts, if you want to elect an Income Manager payout
option, we will first roll over amounts in such contract to a Rollover IRA
contract. You will be the owner of the Rollover IRA contract.
You may choose to apply only part of the account value of your Equitable
contract to an Income Manager payout annuity. In this case, we will consider any
amounts applied as a withdrawal from your Equitable contract. For the tax
consequences of withdrawals, see "Tax information."
Depending upon your circumstances, the purchase of an Income Manager contract
may be done on a tax-free basis. Please consult your tax adviser.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on the
payout option that you choose and the timing of your purchase as it relates to
market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return your
contract before annuity payments begin unless you are applying only some of your
account value to an Income Manager contract. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Equitable ____________ contract date. Except with
respect to the Income Manager annuity payout options, where payments are made on
the 15th day of each month, you can change the date your annuity payments are to
begin anytime before that date as long as you do not choose a date later than
the 28th day of any month. Also, that date may not be later than:
(i) if the annuitant was not older than 83 when the contract was issued, the
contract date anniversary that follows the annuitant's 90th birthday;
(ii) if the annuitant was age 84 but not older than age 85 when the contract was
issued, the annuitant's age at issue plus seven years;
The above may be different in some states.
Before the last day by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments have
begun, no change can be made other than transfers (if permitted in the
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32 ACCESSING YOUR MONEY
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future) among the variable investment options if a Variable Immediate Annuity is
selected and withdrawals (subject to a market value adjustment) if an Income
Manager Annuity payout option is chosen.
The amount of the annuity payments will depend on the amount applied to purchase
the annuity and the applicable annuity purchase factors. Annuity purchase
factors are the factors applied to determine your periodic payments under the
annuity payout options. The guaranteed annuity purchase factors are those
factors specified in your contract. The current annuity purchase factors are
those factors that are in effect at any given time. Annuity purchase factors are
based on interest rates, mortality table, frequency of payments, the form of
annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in
certain instances.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less than
$2,000 or the initial payment under the form elected is less than $20 monthly,
we reserve the right to pay the account value in a single sum rather than as
payments under the payout option chosen.
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CHARGES AND EXPENSES 33
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5
Charges and expenses
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CHARGES THAT EQUITABLE LIFE DEDUCTS
MORTALITY AND EXPENSE RISKS CHARGE AND ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the minimum death
benefit, as well as administrative expenses under the contract. The daily charge
is equivalent to an annual rate of up to 0.50% of the net assets in each
variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that the
mortality assumptions reflected in our guaranteed annuity payment tables, shown
in each contract, will differ from actual mortality experience. Lastly, we
assume a mortality risk to the extent that at the time of death, the minimum
death benefit exceeds the account value of the contract. The expense risk we
assume is the risk that it will cost us more to issue and administer the
contracts than we expect.
We may reduce or eliminate the mortality and expense risks charge and
administrative charge if we believe that the risks or administrative expenses
for which this charge are imposed are reduced or eliminated. We will not permit
a reduction or elimination of this charge where it would be unfairly
discriminatory.
ANNUAL ADMINISTRATIVE CHARGE (FLEXIBLE PREMIUM IRA AND FLEXIBLE PREMIUM ROTH IRA
CONTRACTS ONLY)
Under Flexible Premium IRA and Flexible Premium Roth IRA contracts, we deduct an
administrative charge from your account value on each contract date anniversary.
We deduct the charge if your account value on the last business day of the
contract year is less then $25,000. If your account value on such date is
$25,000 or more, we do not deduct the charge. During the first two contract
years, the charge is equal to $30 or, if less, 2% of your account value. The
charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options on
a pro rata basis. If there is not enough value in the variable investment
options, we will deduct all or a portion of the charge from the fixed maturity
options in order of the earliest maturity date(s) first. If you surrender your
contract during the contract year, we will deduct a pro rata portion of the
charge.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
FEE-BASED EXPENSES
The fees and expenses of a fee-based program are separate from and in addition
to the fees and expenses of the contract. Please consult with your program
sponsor for more details about your fee-based program.
CHARGES THAT EQ ADVISORS TRUST DEDUCTS
EQ Advisors Trust deducts charges for the following types of fees and expenses:
o Management fees ranging from 0.25% to 1.15%.
o 12b-1 fees of 0.25%.
o Operating expenses, such as trustees' fees, independent auditors' fees, legal
counsel fees, administrative service fees, custodian fees, and liability
insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of EQ Advisors Trust are purchased at their net asset value, these fees
and expenses are, in effect, passed on to the variable investment options and
are reflected in their unit values. For more information about these charges,
please refer to the prospectus for EQ Advisors Trust following this
prospectus.
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34 CHARGES AND EXPENSES
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GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the mortality and
expense risks charge, or change the minimum contribution requirements. We also
may offer variable investment options that invest in shares of EQ Advisors Trust
that are not subject to the 12b-1 fee. Group arrangements include those in which
a trustee or an employer, for example, purchases contracts covering a group of
individuals on a group basis. Group arrangements are not available for IRA
contracts. Sponsored arrangements include those in which an employer allows us
to sell contracts to its employees or retirees on an individual basis.
Our costs for mortality generally vary with the size and stability of the group
or sponsoring organization, among other factors. We take all these factors into
account when reducing charges. To qualify for reduced charges, a group or
sponsored arrangement must meet certain requirements, such as requirements for
size and number of years in existence. Group or sponsored arrangements that have
been set up solely to buy contracts or that have been in existence less than six
months will not qualify for reduced charges.
We also may establish different rates to maturity for the fixed maturity options
under different classes of contracts for group or sponsored arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules, the
Employee Retirement Income Security Act of 1974, or both. We make no
representations with regard to the impact of these and other applicable laws on
such programs. We recommend that employers, trustees, and others purchasing or
making contracts available for purchase under such programs seek the advice of
their own legal and benefits advisers.
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PAYMENT OF DEATH BENEFIT 35
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6
Payment of death benefit
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YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you a written confirmation when we receive your request. Under jointly
owned contracts, the surviving owner is considered the beneficiary, and will
take the place of any other beneficiary. You may be limited as to the
beneficiary you can designate in a Rollover TSA contract. In a QP contract, the
beneficiary must be the trustee.
The death benefit is equal to your account value, or, if greater, the minimum
death benefit. The minimum death benefit is equal to your total contributions
less withdrawals. We determine the amount of the death benefit as of the date we
receive satisfactory proof of the annuitant's death and any required
instructions for the method of payment. Under Rollover TSA contracts, we will
deduct the amount of any outstanding loan plus accrued interest from the amount
of the death benefit.
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
beneficiary who is the surviving spouse of the owner/annuitant can choose to be
treated as the successor owner/annuitant and continue the contract. Only a
spouse can be a successor owner/annuitant. A successor owner/annuitant can only
be named under NQ and IRA contracts.
For Rollover IRA and Flexible Premium IRA contracts, a beneficiary may be able
to have limited ownership as discussed under "Beneficiary continuation option"
below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner can change after the original owner's death.
When you are not the annuitant under an NQ contract and you die before annuity
payments begin, the beneficiary named to receive the death benefit upon the
annuitant's death will automatically become the successor owner. If you do not
want the beneficiary to be the successor owner, you should name a specific
successor owner. You may name a successor owner at any time by sending
satisfactory notice to our processing office. If the contract is jointly owned
and the first owner to die is not the annuitant, the surviving owner becomes the
sole contract owner. This person will be considered the successor owner for
purposes of the distribution rules described in this section. The surviving
owner automatically takes the place of any other beneficiary designation.
Unless the surviving spouse of the owner who has died (or in the case of a joint
ownership situation, the surviving spouse of the first owner to die) is the
successor owner for this purpose, the entire interest in the contract must be
distributed under the following rules:
o The cash value of the contract must be fully paid to the designated
beneficiary (new owner) by December 31st of the fifth calendar year after your
death (or in a joint ownership situation, the death of the first owner to
die).
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new owner's
life expectancy). Payments must begin no later than December 31st following
the calendar year of the non-annuitant owner's death. Unless this alternative
is elected, we will pay any cash value on December 31st of the fifth calendar
year following the year of your death (or the death of the first owner to
die).
o If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the
annuity payout option you have chosen. If you have
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36 PAYMENT OF DEATH BENEFIT
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not chosen an annuity payout option as of the time of the annuitant's death, the
beneficiary will receive the death benefit in a single sum. However, subject to
any exceptions in the contract, our rules and any applicable requirements under
federal income tax rules, the beneficiary may elect to apply the death benefit
to one or more annuity payout options we offer at the time. See "Your annuity
payout options" in "Accessing your money" earlier in this prospectus. Please
note that if you are both the contract owner and the annuitant, you may elect
only a life annuity or an annuity that does not extend beyond the life
expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole beneficiary or the joint owner, then your spouse may elect to receive the
death benefit or continue the contract as successor owner/annuitant.
If your surviving spouse decides to continue the contract, then on the contract
date anniversary following your death, we will increase the account value to
equal your current minimum death benefit, if it is higher than the account
value. The increase in the account value will be allocated to the investment
options according to the allocation percentages we have on file for your
contract. In determining whether the minimum death benefit will continue to
grow, we will use your surviving spouse's age (as of the contract date
anniversary).
BENEFICIARY CONTINUATION OPTION
Upon your death under a Rollover IRA, Flexible Premium IRA, Roth Conversion IRA
or Flexible Premium Roth IRA contract, a beneficiary may generally elect to keep
the contract in your name and receive distributions under the contract instead
of receiving the death benefit in a single sum. In order to elect this option,
the beneficiary must be an individual and meet all of the requirements below
that apply. (Certain trusts with only individual beneficiaries will be treated
as individuals.) This election must be made within 60 days following the date we
receive proof of your death. We will increase the account value to equal the
death benefit if the death benefit is greater than the account value. Except as
noted in the next sentence, the beneficiary continuation option will be
available on or after May 1, 2000, depending on when we receive regulatory
approval in your state. For Rollover IRA and Flexible Premium IRA contracts, a
similar beneficiary continuation option will be available until the beneficiary
continuation option described in this prospectus is available. Please contact
our processing office for further information.
Under the beneficiary continuation option:
o The contract continues in your name for the benefit of your beneficiary but no
additional contributions will be permitted.
o The beneficiary may make transfers among the investment options.
o The death benefit provisions will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value. Any partial withdrawal must be at least $1,000.
o Upon the death of the beneficiary, any remaining death benefit will be paid in
a lump sum to the person the beneficiary designates.
For Traditional IRA contracts only, if you die AFTER the "Required Beginning
Date" for required minimum distributions (see "Tax information"), the contract
will continue if:
(a) You were receiving minimum distribution withdrawals from this contract; and
(b) The pattern of minimum distribution withdrawals you 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 you chose before your death. We will be able to tell your beneficiary
whether this option is available to them. You should contact our processing
office for further information.
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PAYMENT OF DEATH BENEFIT 37
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For all of the above contracts, if you die BEFORE the Required Beginning Date
(and therefore you were not taking minimum distribution withdrawals under the
contract) the beneficiary may elect one of the following two beneficiary
continuation options.
1. Payments over life expectancy period. The beneficiary can receive annual
minimum distributions based on the beneficiary's life expectancy. If there is
more than one beneficiary, the shortest life expectancy is used. These minimum
distributions must begin by December 31st of the calendar year following the
year of your death; a spouse beneficiary may choose to delay beginning these
minimum distributions until the December 31st of the calendar year in which you
would have turned age 70 1/2.
2. Five Year Rule. The beneficiary can take withdrawals as desired. If the
beneficiary does not withdraw the entire account value by the December 31st of
the fifth calendar year following your death, we will pay any amounts remaining
under the contract to the beneficiary by that date. If you have more than one
beneficiary, and one of them elects this option, then all of your beneficiaries
will receive this option.
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38 TAX INFORMATION
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7
Tax information
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OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Equitable Accumulator contracts owned by United States
taxpayers. The tax rules can differ, depending on the type of contract, whether
NQ, Rollover IRA, Flexible Premium IRA, Roth Conversion IRA, Flexible Premium
Roth IRA, QP or Rollover TSA. Therefore, we discuss the tax aspects of each type
of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change. We
cannot predict whether, when, or how these rules could change. Any change could
affect contracts purchased before the change.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state income
and other state taxes, federal income tax and withholding rules for non-U.S.
taxpayers, or federal gift and estate taxes. Transfers of the contract, rights
under the contract, or payments under the contract may be subject to gift or
estate taxes. You should not rely only on this document, but should consult your
tax adviser before your purchase.
If you are buying a contract to fund a retirement plan that already provides tax
deferral under sections of the Internal Revenue Code (IRA), you should do so for
the contract's features and benefits other than tax deferral. In such
situations, the tax deferral of the contract does not provide additional
benefits.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income. If the IRS determines that making transfers among
investment options causes the annuity owner to be treated as the owner of the
assets funding the annuity contract, then such transfers will trigger taxation
for nonqualified annuities. As of the date of this prospectus, the IRS has not
made this determination.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than your
spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount pledged
will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation, partnership,
trust, or other non-natural person).
All nonqualified deferred annuity contracts that Equitable Life and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew that
were not taxable.
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TAX INFORMATION 39
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For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any unrecovered
investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the contract.
If you withdraw an amount which is more than the earnings in the contract as of
the date of the withdrawal, the balance of the distribution is treated as a
return of your investment in the contract and is not taxable.
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o The contract that is the source of the funds you are using to purchase the NQ
contract is another nonqualified deferred annuity contract or life insurance
or endowment contract.
o The owner and the annuitant are the same under the source contract and the
Equitable Accumulator Express NQ contract. If you are using a life insurance
or endowment contract the owner and the insured must be the same on both sides
of the exchange transaction.
The tax basis of the source contract carries over to the Equitable ___________
(SM) NQ contract. A recent case permitted an owner to direct the proceeds of a
partial withdrawal from one nonqualified deferred annuity contract to a
different insurer to purchase a new nonqualified deferred annuity contract on a
tax-deferred basis. Special forms, agreement between the carriers, and provision
of cost basis information may be required to process this type of exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as ordinary
income (not capital gain) to the extent it exceeds your investment in the
contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59 1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax. The
extra penalty tax does not apply to pre-age 59 1/2 distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life (or
life expectancy) or the joint lives (or joint life expectancy) of you and a
beneficiary.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Under current law we treat income from NQ contracts as U.S. source. A Puerto
Rico resident is subject to U.S. taxation on such U.S. source income. Only
Puerto Rico source income of Puerto Rico residents is excludable from U.S.
taxation.
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40 TAX INFORMATION
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Income from NQ contracts is also subject to Puerto Rico tax. The calculation of
the taxable portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for U.S.
tax paid. Depending on your personal situation and the timing of the different
tax liabilities, you may not be able to take full advantage of this credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types of
such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds the
assets for the benefit of the IRA owner. The assets can include mutual funds and
certificates of deposit. In an individual retirement annuity, an insurance
company issues an annuity contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o "traditional IRAs," typically funded on a pre-tax basis including SEP-IRAs
and SIMPLE-IRAs, issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs, first available in 1998, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required to
combine IRA values or contributions for tax purposes. For further information
about individual retirement arrangements, you can read Internal Revenue Service
Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication
is usually updated annually, and can be obtained from any IRS district office or
the IRS Web site (http://www.irs.ustreas.gov).
Equitable Life designs its traditional IRA contracts to qualify as individual
retirement annuities under Section 408(b) of the Internal Revenue Code. You may
purchase the contract as a traditional IRA or Roth IRA. The traditional IRAs we
offer are the Rollover IRA and Flexible Premium IRA. The versions of the Roth
IRA available are the Roth Conversion IRA and Flexible Premium Roth IRA. This
prospectus contains the information that the IRS requires you to have before you
purchase an IRA. This section of the prospectus covers some of the special tax
rules that apply to IRAs. The next section covers Roth IRAs. Education IRAs are
not discussed in this prospectus because they are not available in individual
retirement annuity form.
The Equitable ________________ IRA contract has been approved by the IRS as to
form for use as a traditional IRA. We have submitted the Roth IRA version for
formal IRS approval. This IRS approval is a determination only as to the form of
the annuity. It does not represent a determination of the merits of the annuity
as an investment. The IRS approval does not address every feature possibly
available under the Equitable Accumulator(SM) IRA contract. Although we do not
have IRS approval as to form, we believe that the version of the Roth IRA
currently offered complies with the requirements of the Internal Revenue Code.
CANCELLATION
You can cancel an Equitable ________________ IRA contract by following the
directions under "Your right to cancel within a certain number of days" in
"Contract features and benefits" earlier in the prospectus. You can cancel an
Equitable ________________ Roth Conversion IRA contract issued as a result of a
full conversion of an Equitable Accumulator Rollover(SM) IRA or Flexible Premium
IRA contract by following the instructions in the request for full conversion
form. The form is available from our processing office or your registered
representative. If you cancel an IRA contract, we may have to withhold tax, and
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TAX INFORMATION 41
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we must report the transaction to the IRS. A contract cancellation could have an
unfavorable tax impact.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS)
Contributions to traditional IRAs. Individuals may make three different
types of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
Regular traditional IRA, direct transfer, and rollover contributions may be made
to a Flexible Premium IRA contract. We only permit direct transfer and rollover
contributions under a Rollover IRA contract. See "Rollovers and transfers"
below.
REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS
LIMITS ON CONTRIBUTIONS. Generally, $2,000 is the maximum amount that you may
contribute to all iras (including roth iras) in any taxable year. when your
earnings are below $2,000, your earned income or compensation for the year is
the most you can contribute. This $2,000 limit does not apply to rollover
contributions or direct custodian-to-custodian transfers into a traditional IRA.
you cannot make regular traditional ira contributions for the tax year in which
you reach age 70 1/2 or any tax year after that.
SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional iras
(and roth iras discussed below). Even if one spouse has no compensation or
compensation under $2,000, married individuals filing jointly can contribute up
to $4,000 for any taxable year to any combination of traditional IRAs and Roth
IRAs. (Any contributions to Roth IRAs reduce the ability to contribute to
traditional IRAs and vice versa.) The maximum amount may be less if earned
income is less and the other spouse has made ira contributions. No more than a
combined total of $2,000 can be contributed annually to either spouse's
traditional and Roth IRAs. Each spouse owns his or her traditional IRAs and Roth
IRAs even if the other spouse funded the contributions. a working spouse age 70
1/2 or over can contribute up to the lesser of $2,000 or 100% of "earned income"
to a traditional IRA for a nonworking spouse until the year in which the
nonworking spouse reaches age 70 1/2.
DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions that
you can deduct for a tax year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special federal
income tax rules. Your Form W-2 will indicate whether or not you are covered by
such a retirement plan.
IF YOU ARE NOT COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, you can
make fully deductible contributions to your traditional IRAs for each tax year
up to $2,000 or, if less, your earned income.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
adjusted gross income (AGI) is BELOW THE LOWER DOLLAR FIGURE IN A PHASE-OUT
RANGE, you can make fully deductible contributions to your traditional IRAs. For
each tax year, your fully deductible contribution can be up to $2,000 or, if
less, your earned income.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls within a phase-out range, you can make PARTIALLY DEDUCTIBLE
CONTRIBUTIONS to your traditional IRAs.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls ABOVE THE HIGHER FIGURE IN THE PHASE-OUT RANGE, you may not deduct any
of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA
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42 TAX INFORMATION
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contributions phases out with AGI between $32,000 and $42,000 in 2000. This
range will increase every year until 2005 when the range is $50,000-$60,000.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $52,000 and $62,000 in 2000. This
range will increase every year until 2007 when the range is $80,000-$100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional IRA
contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with AGI of between
$150,000 and $160,000.
To determine the deductible amount of the contribution in 2000, you determine
AGI and subtract $32,000 if you are single, or $52,000 if you are married and
file a joint return with your spouse. The resulting amount is your excess AGI.
You then determine the limit on the deduction for traditional IRA contributions
using the following formula:
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($10,000-excess AGI) times $2,000 (or earned Equals the adjusted
divided by $10,000 x income, if less) = deductible
contribution
limit
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NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
$2,000 per person limit. See "Excess contributions" below. You must keep your
own records of deductible and nondeductible contributions in order to prevent
double taxation on the distribution of previously taxed amounts. See
"Withdrawals, payments and transfers of funds out of traditional IRAs" below.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records pertaining
to such contributions until interests in all traditional IRAs are fully
distributed.
WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make your
regular traditional IRA contributions for a tax year.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than $2,000; or
o regular contributions of more than earned income for the year, if that
amount is under $2,000; or
o regular contributions to a traditional IRA made after you reach age 70 1/2;
or
o rollover contributions of amounts which are not eligible to be rolled over.
For example, after-tax contributions to a qualified plan or minimum
distributions required to be made after age 70 1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income. It
is also not subject to the 10% additional penalty tax on early
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TAX INFORMATION 43
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distributions, discussed below under "Early distribution penalty tax." You do
have to withdraw any earnings that are attributed to the excess contribution.
The withdrawn earnings would be included in your gross income and could be
subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from a qualified retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
RECHARACTERIZATIONS
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
ROLLOVERS AND TRANSFERS
Rollover contributions may be made to a traditional IRA from these sources:
o qualified plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial
accounts); and
o other traditional IRAs.
Any amount contributed to a traditional IRA after you reach age 70 1/2 must be
net of your required minimum distribution for the year in which the rollover or
direct transfer contribution is made.
ROLLOVERS FROM QUALIFIED PLANS OR TSAS
There are two ways to do rollovers:
o Do it yourself
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your qualified plan or TSA will be net of 20%
mandatory federal income tax withholding. If you want, you can replace the
withheld funds yourself and roll over the full amount.
o Direct rollover
You tell your qualified plan trustee or TSA issuer/custodian/fiduciary to
send the distribution directly to your traditional IRA issuer. Direct
rollovers are not subject to mandatory federal income tax withholding.
All distributions from a TSA or qualified plan are eligible rollover
distributions, unless the distribution is:
o only after-tax contributions you made to the plan; or
o required minimum distributions after age 70 1/2 or separation from service;
or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o a hardship withdrawal; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
o a qualified domestic relations order distribution to a beneficiary who is
not your current spouse or former spouse.
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44 TAX INFORMATION
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ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently than
once in every 12-month period.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited traditional IRA to one or more other traditional
IRAs. Also, in some cases, traditional IRAs can be transferred on a tax-free
basis between spouses or former spouses as a result of a court-ordered divorce
or separation decree.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a traditional IRA at any time. you do not need to wait
for a special event like retirement.
TAXATION OF PAYMENTs. Earnings in traditional iras are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your contract
and annuity payments from your contract. Death benefits are also taxable. Except
as discussed below, the total amount of any distribution from a traditional IRA
must be included in your gross income as ordinary income.
If you have ever made nondeductible IRA contributions to any traditional IRA (it
does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. You must keep permanent tax records of all of your
nondeductible contributions to traditional IRAs. At the end of any year in which
you have received a distribution from any traditional IRA, you calculate the
ratio of your total nondeductible traditional IRA contributions (less any
amounts previously withdrawn tax free) to the total account balances of all
traditional IRAs you own at the end of the year plus all traditional IRA
distributions made during the year. Multiply this by all distributions from the
traditional IRA during the year to determine the nontaxable portion of each
distribution.
In addition, a distribution is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" above; or
o the entire amount received is rolled over to another traditional IRA (see
"Rollovers and transfers" above); or
o in certain limited circumstances, where the traditional IRA acts as a
"conduit," you roll over the entire amount into a qualified plan or TSA
that accepts rollover contributions. To get this conduit traditional IRA
treatment:
o the source of funds you used to establish the traditional IRA must
have been a rollover contribution from a qualified plan, and
o the entire amount received from the traditional IRA (including any
earnings on the rollover contribution) must be rolled over into
another qualified plan within 60 days of the date received.
Similar rules apply in the case of a TSA.
However, you may lose conduit treatment if you make an eligible rollover
distribution contribution to a traditional IRA and you commingle this
contribution with other contributions. In that case, you may not be able to roll
over these eligible rollover distribution contributions and earnings to another
qualified plan or TSA at a future date. The Rollover IRA contract can be used as
a conduit IRA if amounts are not commingled.
Distributions from a traditional IRA are not eligible for favorable five-year
averaging (or, in some cases, ten-year averaging and long-term capital gain
treatment) available to certain distributions from qualified plans.
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REQUIRED MINIMUM DISTRIBUTIONS
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your traditional iras beginning at age 70 1/2.
WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION. The first
required minimum distribution is for the calendar year in which you turn age 70
1/2. You have the choice to take this first required minimum distribution during
the calendar year you actually reach age 70 1/2, or to delay taking it until the
first three-month period in the next calendar year (January 1 -April 1).
Distributions must start no later than your "required beginning date," which is
April 1st of the calendar year after the calendar year in which you turn age 70
1/2. If you choose to delay taking the first annual minimum distribution, then
you will have to take two minimum distributions in that year -- the delayed one
for the first year and the one actually for that year. Once minimum
distributions begin, they must be made at some time each year.
HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches
to taking required minimum distributions -- "account-based" or "annuity-based."
Account-based method. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by a
life expectancy factor from IRS tables. This gives you the required minimum
distribution amount for that particular IRA for that year. The required minimum
distribution amount will vary each year as the account value and your life
expectancy factors change.
You have a choice of life expectancy factors, depending on whether you choose a
method based only on your life expectancy, or the joint life expectancies of you
and another individual. You can decide to "recalculate" your life expectancy
every year by using your current life expectancy factor. You can decide instead
to use the "term certain" method, where you reduce your life expectancy by one
every year after the initial year. If your spouse is your designated beneficiary
for the purpose of calculating annual account-based required minimum
distributions, you can also annually recalculate your spouse's life expectancy
if you want. If you choose someone who is not your spouse as your designated
beneficiary for the purpose of calculating annual account-based required minimum
distributions, you have to use the term certain method of calculating that
person's life expectancy. If you pick a nonspouse designated beneficiary, you
may also have to do another special calculation.
You can later apply your traditional IRA funds to a life annuity-based payout.
You can only do this if you already chose to recalculate your life expectancy
annually (and your spouse's life expectancy if you select a spousal joint
annuity). For example, if you anticipate exercising your guaranteed minimum
income benefit or selecting any other form of life annuity payout after you are
age 70 1/2, you must have elected to recalculate life expectancies.
Annuity-based method. If you choose an "annuity-based" method, you do not have
to do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary, or for a
period certain not extending beyond applicable life expectancies.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No.
If you want, you can choose a different method and a different beneficiary for
each of your traditional IRAs and other retirement plans. For example, you can
choose an annuity payout from one IRA, a different annuity payout from a
qualified plan, and an account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE? No, unless you affirmatively select an annuity payout
option or an account-based withdrawal option such as our minimum distribution
withdrawal option. Because the options we offer do not cover every option
permitted under federal income tax rules, you may prefer to do your own required
minimum distribution calculations for one or more of your traditional IRAs.
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WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
However, the IRS will let you calculate the required minimum distribution for
each traditional IRA that you maintain, using the method that you picked for
that particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount, you
may choose to take your annual required minimum distribution from any one or
more traditional IRAs that you own.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that your age 70 1/2 is approaching. If you do
not select a method with us, we will assume you are taking your required minimum
distribution from another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? If you die
after either (a) the start of annuity payments, or (b) your required beginning
date, your beneficiary must receive payment of the remaining values in the
contract at least as rapidly as under the distribution method before your death.
In some circumstances, your surviving spouse may elect to become the owner of
the traditional IRA and halt distributions until he or she reaches age 70 1/2.
If you die before your required beginning date and before annuity payments
begin, federal income tax rules require complete distribution of your entire
value in the contract within five years after your death. Payments to a
designated beneficiary over the beneficiary's life or over a period certain that
does not extend beyond the beneficiary's life expectancy are also permitted, if
these payments start within one year of your death. A surviving spouse
beneficiary can also (a) delay starting any payments until you would have
reached age 70 1/2 or (b) roll over your traditional IRA into his or her own
traditional IRA.
SUCCESSOR ANNUITANT AND OWNER
If your spouse is the sole primary beneficiary and elects to become the
successor annuitant and owner, no death benefit is payable until your surviving
spouse's death.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA as
collateral for a loan or other obligation. If you borrow against your IRA or use
it as collateral, its tax-favored status will be lost as of the first day of the
tax year in which this prohibited event occurs. If this happens, you must
include the value of the traditional IRA in your federal gross income. Also, the
early distribution penalty tax of 10% will apply if you have not reached age
59 1/2 before the first day of that tax year.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59 1/2. The extra
penalty tax does not apply to pre-age 59 1/2 distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o used to pay certain extraordinary medical expenses (special federal income
tax definition); or
o used to pay medical insurance premiums for unemployed individuals (special
federal income tax definition); or
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o used to pay certain first-time home buyer expenses (special federal income
tax definition; $10,000 lifetime total limit for these distributions from
all your traditional and Roth IRAs); or
o used to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy), or over the joint lives of you
and your beneficiary (or your joint life expectancy) using an IRS-approved
distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager (Life Annuity with a Period Certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments
under a method we select based on guidelines issued by the IRS (currently
contained in IRS Notice 89-25, Question and Answer 12). Although substantially
equal withdrawals and Income Manager payments are not subject to the 10% penalty
tax, they are taxable as discussed in "Withdrawals, payments and transfers of
funds out of traditional IRAs" above. Once substantially equal withdrawals or
Income Manager annuity payments begin, the distributions should not be stopped
or changed until the later of your reaching age 59 1/2 or five years after the
date of the first distribution, or the penalty tax, including an interest charge
for the prior penalty avoidance, may apply to all prior distributions under
either option. Also, it is possible that the IRS could view any additional
withdrawal or payment you take from your contract as changing your pattern of
substantially equal withdrawals or Income Manager payments for purposes of
determining whether the penalty applies.
ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS)
This section of the prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Equitable __________ Roth IRA contract is designed to qualify as a Roth
individual retirement annuity under Sections 408A and 408(b) of the Internal
Revenue Code.
CONTRIBUTIONS TO ROTH IRAS
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth IRAs
("direct transfers").
Regular after-tax, direct transfer, and rollover contributions may be made to a
Flexible Premium Roth IRA contract. We only permit direct transfer and rollover
contributions under the Roth Conversion IRA contract. See "Rollovers and direct
transfers" below. If you use the forms we require, we will also accept
traditional IRA funds which are subsequently recharacterized as Roth IRA funds
following special federal income tax rules.
REGULAR CONTRIBUTIONS TO ROTH IRAS
LIMITS ON REGULAR CONTRIBUTIONS. Generally, $2,000 is the maximum amount that
you may contribute to all IRAs (including Roth IRAs) in any taxable year. This
$2,000 limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs
reduce your ability to contribute to traditional iras and vice versa. When your
earnings are below $2,000, your earned income or compensation for the year is
the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion above under traditional IRAS.
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48 TAX INFORMATION
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With a Roth IRA, you can make regular contributions when you reach 70 1/2, as
long as you have sufficient earnings. But, you cannot make contributions for any
year that:
o your federal income tax filing status is "married filing jointly" and your
adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your adjusted gross
income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your adjusted gross
income is between $95,000 and $110,000.
If you are married and filing separately and your adjusted gross income is
between $0 and $10,000 the amount of regular contributions you are permitted to
make is phased out. If your adjusted gross income is more than $10,000 you
cannot make regular Roth IRA contributions.
WHEN YOU CAN MAKE CONTRIBUTIONS. Same as traditional IRAs.
DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible.
ROLLOVERS AND DIRECT TRANSFERS
WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE-IRA, in a taxable
"conversion" rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under Section
401(a) of the Internal Revenue Code, or a TSA under Section 403(b) of the
Internal Revenue Code. You may make direct transfer contributions to a Roth IRA
only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over, or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee, or issuer to transfer the first Roth IRA funds directly
to Equitable Life, as the Roth IRA issuer. You can make direct transfer
transactions only between identical plan types (for example, Roth IRA to Roth
IRA). You can also make rollover transactions between identical plan types.
However, you can only use rollover transactions between different plan types
(for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions
only once in any 12-month period for the same funds. Trustee-to-trustee or
custodian-to-custodian direct transfers can be made more frequently than once a
year. Also, if you send us the rollover contribution to apply it to a Roth IRA,
you must do so within 60 days after you receive the proceeds from the original
IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
CONVERSION CONTRIBUTIONS TO ROTH IRAS
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from
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a traditional IRA to another traditional IRA, the conversion rollover
transaction is not tax-free. Instead, the distribution from the traditional IRA
is generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. (If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.)
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59 1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your adjusted gross income exceeds $100,000. (For this purpose, your
adjusted gross income is computed without the gross income stemming from the
traditional IRA conversion.) You also cannot make conversion contributions to a
Roth IRA for any taxable year in which your federal income tax filing status is
"married filing separately."
Finally, you cannot make conversion contributions to a Roth IRA to the extent
that the funds in your traditional IRA are subject to the annual required
minimum distribution rule applicable to traditional IRAs beginning at age
70 1/2.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
DISTRIBUTIONS FROM ROTH IRAS
Distributions include withdrawals from your contract, surrender of your contract
and annuity payments from your contract. Death benefits are also distributions.
The following distributions from Roth IRAs are free of income tax:
o Rollovers from a Roth IRA to another Roth IRA;
o Direct transfers from a Roth IRA to another Roth IRA;
o "Qualified Distributions" from Roth IRAs; and
o Return of excess contributions or amounts recharacterized to a traditional
IRA.
QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you reach age 59 1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or not
the one from which the distribution is being made). It is not possible to have a
tax-free qualified distribution before the year 2003 because of the five-year
aging requirement.
NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Non-qualified distributions from Roth
IRAs are distributions that do not meet the qualifying event and five-year aging
period tests described above. Such distributions are potentially taxable as
ordinary income. Nonqualified distributions receive return-of-investment-first
treatment. Only the difference between the amount of the distribution and the
amount of contributions to all of your Roth IRAs is taxable. You have to reduce
the amount of contributions to all of your Roth IRAs to reflect any previous
tax-free recoveries.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You
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50 TAX INFORMATION
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may have to retain all income tax returns and records pertaining
to such contributions and distributions until your interests in all Roth IRAs
are distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to
the special favorable five-year averaging method (or, in certain cases,
favorable ten-year averaging and long-term capital gain treatment) available in
certain cases to distributions from qualified plans.
REQUIRED MINIMUM DISTRIBUTIONS AT DEATH
Same as traditional IRA under "What are the required minimum distribution
payments after you die?" Lifetime required minimum distributions do not apply.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
Same as traditional IRA.
EXCESS CONTRIBUTIONS
Same as traditional IRA, except that regular contributions made after age 70 1/2
are not "excess contributions."
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your adjusted gross income is in excess of $100,000 in the conversion year).
You can withdraw or recharacterize any contribution to a Roth IRA before the due
date (including extensions) for filing your federal income tax return for the
tax year. If you do this, you must also withdraw or recharacterize any earnings
attributable to the contribution.
EARLY DISTRIBUTION PENALTY TAX
Same as traditional IRA.
For Roth IRAs, special penalty rules may apply to amounts withdrawn attributable
to 1998 conversion rollovers.
SPECIAL RULES FOR NONQUALIFIED CONTRACTS IN QUALIFIED PLANS
Under QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix I.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to this Equitable ___________
Rollover TSA contract:
o a rollover from another TSA contract or arrangement that meets the
requirements of Section 403(b) of the Internal Revenue Code, or
o a full or partial direct transfer of assets ("direct transfer") from another
contract or arrangement that meets the requirements of Section 403(b) of the
Internal Revenue Code by means of IRS Revenue Ruling 90-24.
With appropriate written documentation satisfactory to us, we will accept
rollover contributions from "conduit IRAs" for TSA funds.
If you make a direct transfer, you must fill out our transfer form.
EMPLOYER-REMITTED CONTRIBUTIONS. The Equitable ___________ Rollover TSA contract
does not accept employer-remitted contributions. However, we provide the
following discussion as part of our description of restrictions on the
distribution of funds directly transferred, which include employer-remitted
contributions to other TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free
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transfer or tax-deferred rollover contributions from another 403(b) arrangement
are not subject to these annual contribution limits.) Commonly, some or all of
the contributions made to a TSA are made under a salary reduction agreement
between the employee and the employer. These contributions are called "salary
reduction" or "elective deferral" contributions. However, a TSA can also be
wholly or partially funded through nonelective employer contributions or
after-tax employee contributions. Amounts attributable to salary reduction
contributions to TSAs are generally subject to withdrawal restrictions. Also,
all amounts attributable to investments in a 403(b)(7) custodial account are
subject to withdrawal restrictions discussed below.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You may make rollover contributions
to your Equitable ___________ Rollover TSA contract from TSAs under Section
403(b) of the Internal Revenue Code. Generally, you may make a rollover
contribution to a TSA when you have a distributable event from an existing TSA
as a result of your:
o termination of employment with the employer who provided the TSA funds; or
o reaching age 59 1/2 even if you are still employed; or
o disability (special federal income tax definition).
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a distribution.
We accept direct transfers of TSA funds under the Revenue Ruling 90-24 only if:
o you give us acceptable written documentation as to the source of the funds,
and
o the Equitable ___________ contract receiving the funds has provisions at
least as restrictive as the source contract.
Before you transfer funds to an Equitable ___________ Rollover TSA contract, you
may have to obtain your employer's authorization or demonstrate that you do not
need employer authorization. For example, the transferring TSA may be subject to
Title I of ERISA, if the employer makes matching contributions to salary
reduction contributions made by employees. In that case, the employer must
continue to approve distributions from the plan or contract.
Your contribution to the Equitable Accumulator Rollover TSA must be net of the
required minimum distribution for the tax year in which we issue the contract
if:
o you are or will be at least age 70 1/2 in the current calendar year, and
o you have separated from service with the employer who provided the funds to
purchase the TSA you are transferring or rolling over to the Equitable
___________ Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA; or
o direct rollover from another TSA; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
Further, you must use the same elections regarding recalculation of your life
expectancy (and if applicable, your spouse's life expectancy) if you have
already begun to receive required minimum distributions from or with respect to
the TSA from which you are making your contribution to the Equitable ___________
Rollover TSA. You must also elect or have elected a minimum distribution
calculation method requiring recalculation of your life expectancy (and if
applicable, your spouse's life expectancy) if you elect an annuity payout for
the funds in this contract subsequent to this year.
DISTRIBUTIONS FROM TSAS
GENERAL. Depending on the terms of the employer plan and your employment status,
you may have to get your employer's consent to take a loan or withdrawal. Your
employer will tell us this when you establish the TSA through a direct transfer.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred
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to this contract and any future earnings on the amount transferred as not
eligible for withdrawal until one of the following events happens:
o you are separated from service with the employer who provided the funds to
purchase the TSA you are transferring to the Equitable Accumulator Rollover
TSA; or
o you reach age 59 1/2; or
o you die;
o or you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
If any portion of the funds directly transferred to your TSA contract is
attributable to amounts that you invested in a 403(b)(7) custodial account, such
amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to your
TSA contract that represents your December 31, 1988 account balance attributable
to salary reduction contributions to a TSA annuity contract and earnings. To
take advantage of this grandfathering you must properly notify us in writing at
our processing office of your December 31, 1988 account balance if you have
qualifying amounts transferred to your TSA contract.
THIS PARAGRAPH APPLIES ONLY TO PARTICIPANTS IN A TEXAS OPTIONAL RETIREMENT
PROGRAM. Texas Law permits withdrawals only after one of the following
distributable events occur:
(1) the requirements for minimum distribution (discussed under "Required
minimum distributions" below) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of higher
education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you are
vested, we will refund to the employer any amounts provided by an employer's
first-year matching contribution. We reserve the right to change these
provisions without your consent, but only to the extent necessary to maintain
compliance with applicable law. Loans are not permitted under Texas Optional
Retirement Programs.
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributors
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" below. In addition, TSA distributions may be subject
to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we do not track your
investment in the contract, if any, it is your responsibility to determine how
much of the distribution is taxable.
DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount
received in excess of the investment in the contract is taxable. We will report
the total amount of the distribution. The amount of any partial distribution
from a TSA prior to the annuity starting date is generally taxable, except to
the extent that the distribution is treated as a withdrawal of after-tax
contributions. Distributions are normally treated as pro rata withdrawals of
after-tax contributions and earnings on those contributions.
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ANNUITY PAYMENTS. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded from
income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed on
your (or your beneficiary's) final tax return.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Death benefit distributions from a TSA generally receive the same tax treatment
as distributions during your lifetime. In some instances, distributions from a
TSA made to your surviving spouse may be rolled over to a traditional IRA.
LOANS FROM TSAS
You may take loans from a TSA unless restricted by the employer (for example,
under an employer plan subject to ERISA). If you cannot take a loan, or cannot
take a loan without approval from the employer who provided the funds, we will
have this information in our records based on what you and the employer who
provided the TSA funds told us when you purchased your contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan exceeds permissable limits under federal income tax rules when made, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. Under Proposed Treasury Regulations
the entire unpaid balance of the loan is includable in income in the year of the
default.
TSA loans are subject to federal income tax limits and may also be subject to
the limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all other loans to
the participant from all qualified plans of the employer, cannot exceed the
lesser of:
(1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued
benefits; and
(2) $50,000 reduced by the excess (if any) of the highest outstanding loan
balance over the previous twelve months over the outstanding loan balance
of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless the loan is
used to acquire the participant's primary residence. Equitable Accumulator
Rollover TSA contracts have a term limit of 10 years for loans used to
acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level payments
over the term of the loan, with payments being made at least quarterly.
The amount borrowed and not repaid may be treated as a distribution if:
o the loan does not qualify under the conditions above;
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the employer
who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as a
distribution.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over any "eligible rollover distribution" from a TSA into another
eligible retirement plan, either directly or within 60 days of your receiving
the distribution. To the extent rolled over, a distribution remains
tax-deferred.
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54 TAX INFORMATION
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You may roll over a distribution from a TSA to another TSA or to a traditional
IRA. A spousal beneficiary may roll over death benefits only to a traditional
IRA.
The taxable portion of most distributions will be eligible for rollover, except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period of
10 years or more, hardship withdrawals, and required minimum distributions under
federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling 90-24
are not distributions.
REQUIRED MINIMUM DISTRIBUTIONS
Same as traditional IRA with these differences:
WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION. The minimum
distribution rules force TSA participants to start calculating and taking annual
distributions from their TSAs by a required date. Generally, you must take the
first required minimum distribution for the calendar year in which you turn age
70 1/2. You may be able to delay the start of required minimum distributions for
all or part of your account balance until after age 70 1/2, as follows:
o For TSA participants who have not retired from service with the employer who
provided the funds for the TSA by the calendar year the participant turns age
70 1/2, the required beginning date for minimum distributions is extended to
April 1 following the calendar year of retirement.
o TSA plan participants may also delay the start of required minimum
distributions to age 75 of the portion of their account value attributable to
their December 31, 1986 TSA account balance, even if retired at age 70 1/2.
We will know whether or not you qualify for this exception because it will
only apply to people who establish their Equitable Accumulator Rollover TSA
by direct Revenue Ruling 90-24 transfers. If you do not give us the amount of
your December 31, 1986 account balance that is being transferred to the
Equitable Accumulator Rollover TSA on the form used to establish the TSA, you
do not qualify.
SPOUSAL CONSENT RULES
This will apply to you if you establish your Equitable Accumulator Rollover TSA
by direct Revenue Ruling 90-24 transfer. Your employer will tell us on the form
used to establish the TSA whether or not you need to get spousal consent for
loans, withdrawals, or other distributions. If you do, you will need such
consent if you are married when you request a withdrawal under the TSA contract.
In addition, unless you elect otherwise with the written consent of your spouse,
the retirement benefits payable under the plan must be paid in the form of a
qualified joint and survivor annuity. A qualified joint and survivor annuity is
payable for the life of the annuitant with a survivor annuity for the life of
the spouse in an amount not less than one-half of the amount payable to the
annuitant during his or her lifetime. In addition, if you are married, the
beneficiary must be your spouse, unless your spouse consents in writing to the
designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments will
be made to your surviving spouse in the form of a life annuity unless at the
time of your death a contrary election was in effect. However, your surviving
spouse may elect, before payments begin, to receive payments in any form
permitted under the terms of the TSA contract and the plan of the employer who
provided the funds for the TSA.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59 1/2. This is in addition to any
income tax. There are exceptions to the extra penalty tax. No penalty tax
applies to pre-age 59 1/2 distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income tax
definition); or
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o if you are separated from service, any form of payout after you are age 55;
or
o only if you are separated from service, a payout in the form of substantially
equal periodic payments made at least annually over your life (or your life
expectancy), or over the joint lives of you and your beneficiary (or your
joint life expectancy) using an IRS-approved distribution method.
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable. The
rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this purpose.
You cannot elect out of withholding unless you provide us with your correct
Taxpayer Identification Number and a United States residence address. You cannot
elect out of withholding if we are sending the payment out of the United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of traditional
IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA
and is taxable.
o We are required to withhold on the gross amount of a distribution from a Roth
IRA unless you elect out of withholding. This may result in tax being
withheld even though the Roth IRA distribution is not taxable in whole or in
part.
Special withholding rules apply to foreign recipients and United States citizens
residing outside the United States. We do not discuss these rules here. Certain
states have indicated that state income tax withholding will also apply to
payments from the contracts made to residents. In some states, you may elect out
of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state or
any required forms, call our processing office at the toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $14,700 in periodic annuity payments in
1999, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective unless
and until you revoke it. You may revoke or change your withholding election at
any time.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
IRAs and Roth IRAs.
You cannot elect out of withholding if the payment is an "eligible rollover
distribution" from a qualified plan or TSA.
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56 TAX INFORMATION
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If a non-periodic distribution from a qualified plan or TSA is not an "eligible
rollover distribution" then the 10% withholding rate applies.
MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. An eligible rollover distribution from a TSA can be rolled over to
another TSA or a traditional IRA. An eligible rollover distribution from a
qualified plan can be rolled over to another qualified plan or traditional IRA.
All distributions from a TSA or qualified plan are eligible rollover
distributions unless they are on the following list of exceptions:
o any after-tax contributions you made to the plan; or
o any distributions which are required minimum distributions after age 70 1/2
or separation from service; or
o hardship withdrawals; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancy) of you and
your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse; or
o a qualified domestic relations order distribution to a beneficiary who is not
your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
IMPACT OF TAXES TO EQUITABLE LIFE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
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ABOUT OUR SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of our Separate Account No. 49.
We established Separate Account No. 49 in 1996 under special provisions of the
New York Insurance Law. These provisions prevent creditors from any other
business we conduct from reaching the assets we hold in our variable investment
options for owners of our variable annuity contracts, including these contracts.
We are the legal owner of all of the assets in Separate Account No. 49 and may
withdraw any amounts that exceed our reserves and other liabilities with respect
to variable investment options under our contracts. The results of Separate
Account No. 49's operations are accounted for without regard to Equitable Life's
other operations.
Separate Account No. 49 is registered under the Investment Company Act of 1940
and is classified by that act as a "unit investment trust." The SEC, however,
does not manage or supervise Equitable Life or Separate Account No. 49.
Each subaccount (variable investment option) within Separate Account No. 49
invests solely in class IB shares issued by the corresponding portfolio of EQ
Advisors Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from, Separate Account No. 49, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate Separate Account No. 49 or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against Separate Account No. 49
or a variable investment option directly);
(5) to deregister Separate Account No. 49 under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to Separate Account No. 49;
and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT EQ ADVISORS TRUST
EQ Advisors Trust is registered under the Investment Company Act of 1940. It is
classified as an "open-end management investment company," more commonly called
a mutual fund. EQ Advisors Trust issues different shares relating to each
portfolio.
Equitable Life serves as the investment manager of EQ Advisors Trust. As such,
Equitable Life oversees the activities of the investment advisers with respect
to EQ Advisors Trust and is responsible for retaining or discontinuing the
services of those advisers. (Prior to September 1999 EQ Financial Consultants,
Inc., the predecessor to AXA Advisors, LLC and an affiliate of Equitable Life,
served as investment manager to EQ Advisors Trust.)
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth)
were part of The Hudson River Trust. On October 18, 1999, these portfolios
became corresponding portfolios of EQ Advisors Trust.
EQ Advisors Trust does not impose sales charges or "loads" for buying and
selling its shares. All dividends and other distributions on shares are
reinvested in full. The Board of Trustees of EQ Advisors Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about EQ Advisors Trust, its investment objectives,
policies, restrictions, risks, expenses, the Rule 12b-1 Plan relating to its
Class IB shares, and other aspects
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of its operations, appears in the prospectus for EQ Advisors Trust attached at
the end of this prospectus, or in its SAI which is available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
The rates to maturity for new allocations as of January 18, 2000 and the related
price per $100 of maturity value were as follows:
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FIXED MATURITY
OPTIONS WITH
FEBRUARY 15TH RATE TO MATURITY PRICE
MATURITY DATE OF AS OF PER $100 OF
MATURITY YEAR JANUARY 18, 2000 MATURITY VALUE
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2001 4.79% $95.07
2002 5.41% $89.62
2003 5.58% $84.60
2004 5.75% $79.61
2005 5.87% $74.83
2006 5.97% $70.28
2007 5.99% $66.23
2008 6.03% $62.30
2009 6.09% $58.45
2010 6.15% $54.78
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HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity that applies on the
withdrawal date to new allocations to the same fixed maturity option.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
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Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that same
fixed maturity option on the date of the calculation.
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If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment that
would have applied if you had withdrawn the entire value in that fixed maturity
option. This percentage is equal to the percentage of the value in the fixed
maturity option that you are withdrawing. See Appendix II for an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which
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the "current rate to maturity" in (1)(c) would apply, we will use the rate at
the next closest maturity date. If we are no longer offering new fixed maturity
options, the "current rate to maturity" will be determined in accordance with
our procedures then in effect. We reserve the right to add up to 0.25% to the
current rate in (1)(c) above for purposes of calculating the market value
adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held in
this separate account. We may, subject to state law that applies, transfer all
assets allocated to the separate account to our general account. We guarantee
all benefits relating to your value in the fixed maturity options, regardless of
whether assets supporting fixed maturity options are held in a separate account
or our general account.
We have no specific formula for establishing the rates to maturity for the fixed
maturity options. We expect the rates to be influenced by, but not necessarily
correspond to, among other things, the yields that we can expect to realize on
the separate account's investments from time to time. Our current plans are to
invest in fixed-income obligations, including corporate bonds, mortgage-backed
and asset-backed securities, and government and agency issues having durations
in the aggregate consistent with those of the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the contracts,
we are not obligated to invest those assets according to any particular plan
except as we may be required to by state insurance laws. We will not determine
the rates to maturity we establish by the performance of the nonunitized
separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the fixed maturity options, as well as our general
obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations of
all jurisdictions where we are authorized to do business. Because of exemptions
and exclusionary provisions that apply, interests in the general account have
not been registered under the Securities Act of 1933, nor is the general account
an investment company under the Investment Company Act of 1940. However, the
market value adjustment interests under the contracts are registered under the
Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS
We accept initial contributions sent by wire to our processing office by
agreement with certain broker-dealers. The transmittals must be accompanied by
information we require to allocate your contribution. Wire orders not
accompanied by complete information may be retained as described in "How you can
make your contributions."
Even if we accept the wire order and essential information, a contract generally
will not be issued until we receive and accept a properly completed application.
In certain cases we may issue a contract based on information forwarded
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electronically. In these cases, you must sign our Acknowledgement of Receipt
form.
Where we require a signed application, no financial transactions will be
permitted until we receive the signed application and have issued the contract.
Where we require an Acknowledgement of Receipt form, financial transactions are
only permitted if you request them in writing, sign the request and have it
signature guaranteed, until we receive the signed Acknowledgement of Receipt
form.
After your contract has been issued, additional contributions may be transmitted
by wire.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day is any day the New York Stock Exchange is open for trading. We
calculate unit values for our variable investment options as of the end of each
business day. Our business day usually ends at 4:00 p.m., Eastern time, for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all the
required information.
o If your contribution, transfer or any other transaction request, containing
all the required information, reaches us on a non-business day or after
4:00 p.m. on a business day, we will use the next business day.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the unit value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o Transfers to or from variable investment options will be made at the unit
value next determined after the close of the business day.
o Transfers to a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of EQ Advisors Trust we have the right to vote on
certain matters involving the portfolios, such as:
o the election of trustees;
o the formal approval of independent auditors selected for EQ Advisors Trust;
or
o any other matters described in the prospectus for EQ Advisors Trust or
requiring a shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is taken.
If we do not receive instructions in time from all contract owners, we will vote
the shares of a portfolio for which no instructions have been received in the
same proportion as we vote shares of that portfolio for which we have received
instructions. We will also vote any shares that we are entitled to vote directly
because of amounts we have in a portfolio in the same proportions that contract
owners vote.
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VOTING RIGHTS OF OTHERS
Currently, we control EQ Advisors Trust. EQ Advisors Trust shares are sold to
our separate accounts and an affiliated qualified plan trust. In addition, EQ
Advisors Trust shares are held by separate accounts of insurance companies both
affiliated and unaffiliated with us. Shares held by these separate accounts will
probably be voted according to the instructions of the owners of insurance
policies and contracts issued by those insurance companies. While this will
dilute the effect of the voting instructions of the contract owners, we
currently do not foresee any disadvantages because of this. The Board of
Trustees of EQ Advisors Trust intends to monitor events in order to identify any
material irreconcilable conflicts that may arise and to determine what action,
if any, should be taken in response. If we believe that a response to any of
those events insufficiently protects our contract owners, we will see to it that
appropriate action is taken.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to Separate Account No. 49 require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount of
reserves we are holding for that annuity in a variable investment option divided
by the annuity unit value for that option. We will cast votes attributable to
any amounts we have in the variable investment options in the same proportion as
votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
Equitable Life and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings is likely to have a material adverse effect
upon Separate Account No. 49, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT ACCOUNTANTS
The financial statements of Equitable Life incorporated in this prospectus by
reference to the Annual Report on Form 10-K at December 31, 1999 and 1998, and
for the three years ended December 31, 1999, have been so incorporated in
reliance on the report of PricewaterhouseCoopers LLP, independent accountants,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as the consolidated
financial statements of Equitable Life, are in the SAI. The SAI is available
free of charge. You may request one by writing to our processing office or
calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity payments
begin. We will continue to treat you as the owner until we receive notification
of any change at our processing office. You cannot assign your NQ contract as
collateral or security for a loan. Loans are also not available under your NQ
contract. In some cases, an assignment or change of ownership may have adverse
tax consequences. See "Tax information" earlier in this prospectus.
You cannot assign or transfer ownership of an IRA contract except by surrender
to us. Loans are not available and you cannot assign IRA contracts as security
for a loan or other obligation.
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For limited transfers of ownership after the owner's death see "Beneficiary
continuation option for Rollover IRA and Flexible Premium IRA contracts" in
"Payment of death benefit" earlier in this prospectus. You may direct the
transfer of the values under your IRA contract to another similar arrangement.
Under federal income tax rules, in the case of such a transfer, we will impose a
withdrawal charge, if one applies.
DISTRIBUTION OF THE CONTRACTS
Equitable Distributors, Inc. ("EDI"), an indirect, wholly owned subsidiary of
Equitable Life, is the distributor of the contracts and has responsibility for
sales and marketing functions for Separate Account No. 49. EDI serves as the
principal underwriter of Separate Account No. 49. EDI is registered with the SEC
as a broker-dealer and is a member of the National Association of Securities
Dealers, Inc. EDI's principal business address is 1290 Avenue of the Americas,
New York, New York 10104. Under a distribution agreement between EDI, Equitable
Life, and certain of Equitable Life's separate accounts, including Separate
Account No. 49, Equitable Life paid EDI distribution fees of $46,957,345 for
1999, $35,452,793 for 1998, and $9,566,343 for 1997, as the distributor of
certain contracts, other than the contracts described in this prospectus, which
have not been previously offered and as the principal underwriter of several
Equitable Life separate accounts, including Separate Account No. 49.
The contracts will be sold by registered representatives of EDI, as well as by
affiliated and unaffiliated broker-dealers with which EDI has entered into
selling agreements. We do not generally pay direct commissions for the sale of
these contracts within a fee-based program. We may, however, pay broker-dealer
sales compensation that will generally not exceed 7% of total contributions made
under the contracts. EDI may also receive compensation and reimbursement for its
marketing services under the terms of its distribution agreement with Equitable
Life. Broker-dealers receiving sales compensation will generally pay a portion
of it to their registered representatives as commissions related to sales of the
contracts. The offering of the contracts is intended to be continuous.
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9
Investment performance
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We provide the following tables to show five different measurements of the
investment performance of the variable investment options and/or the portfolios
in which they invest. We include these tables because they may be of general
interest to you. THE RESULTS SHOWN REFLECT PAST PERFORMANCE. THEY DO NOT
INDICATE HOW THE VARIABLE INVESTMENT OPTIONS MAY PERFORM IN THE FUTURE. THEY
ALSO DO NOT REPRESENT THE RESULTS EARNED BY ANY PARTICULAR INVESTOR. YOUR
RESULTS WILL DIFFER.
Table 1 shows the average annual total return of the variable investment
options. Average annual total return is the annual rate of growth that would be
necessary to achieve the ending value of a contribution invested in the variable
investment options for the periods shown.
Table 2 shows the growth of a hypothetical $1,000 investment in the variable
investment options over the periods shown.
Tables 3, 4, and 5 show the rates of return of the variable investment options
on an annualized, cumulative, and year-by-year basis.
All tables take into account all fees and charges under the contract, but do not
reflect the charges for any applicable taxes such as premium taxes or the
applicable annuity administrative fee, if any. Any fees and expenses associated
with the fee-based program are also not included. If the charges were reflected
they would effectively reduce the rates of return shown.
In all cases, the results shown are based on the actual historical investment
experience of the portfolios in which the variable investment options invest. In
some cases, the results shown relate to periods when the variable investment
options and/or the contracts were not available. In those cases, we adjusted the
results of the portfolios to reflect the charges under the contracts that would
have applied had the investment options and/or contracts been available. The
contracts are being offered for the first time in 2000.
For the "Alliance" portfolios (other than EQ/Alliance Premier Growth), we have
adjusted the results prior to October 1996, when Class IB shares for these
portfolios were not available, to reflect the 12b-1 fees currently imposed.
Finally, the results shown for the Alliance Money Market and Alliance Common
Stock options for periods before March 22, 1985 reflect the results of the
variable investment options that preceded them. The "Since portfolio inception"
figures for these options are based on the date of inception of the preceding
variable investment options. We have adjusted these results to reflect the
maximum investment advisory fee payable for the portfolios, as well as an
assumed charge of 0.06% for direct operating expenses.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth)
were part of The Hudson River Trust. On October 18, 1999, these portfolios
became corresponding portfolios of EQ Advisors Trust. In each case, the
performance shown is for the indicated EQ Advisors Trust portfolio and any
predecessor that it may have had.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
BENCHMARKS
Tables 3 and 4 compare the performance of variable investment options to market
indices that serve as benchmarks. Market indices are not subject to any charges
for investment advisory fees, brokerage commission or other operating expenses
typically associated with a managed portfolio. Also, they do not reflect the
mortality and expense risks charge and administrative charges. Comparisons with
these benchmarks, therefore, may be of limited use. We include them because they
are widely known and may help you to understand the universe of securities from
which each portfolio is likely to select its holdings. Benchmark data reflect
the reinvestment of dividend income. The benchmarks include:
<PAGE>
- --------------------------------------------------------------------------------
64 INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ALLIANCE MONEY MARKET: Salomon Brothers Three-Month T-Bill Index.
ALLIANCE HIGH YIELD: Merrill Lynch High Yield Master Index.
ALLIANCE COMMON STOCK: Standard & Poor's 500 Index.
EQ/ALLIANCE AGGRESSIVE STOCK: 50% Russell 2000 Index and 50% Standard & Poor's
Mid-Cap Total Return Index.
ALLIANCE SMALL CAP GROWTH: Russell 2000 Growth Index.
EQ/ALLIANCE PREMIER GROWTH: Standard & Poor's 500 Index.
BT EQUITY 500 INDEX: Standard & Poor's 500 Index.
BT SMALL COMPANY INDEX: Russell 2000 Index.
BT INTERNATIONAL EQUITY INDEX: Morgan Stanley Capital International Europe,
Australia, Far East Index.
CAPITAL GUARDIAN U.S. EQUITY: Standard & Poor's 500 Index.
CAPITAL GUARDIAN RESEARCH: Standard & Poor's 500 Index.
CAPITAL GUARDIAN INTERNATIONAL: Morgan Stanley Capital International Europe,
Australia, Far East Index.
EQ/EVERGREEN: Russell 2000 Index.
EQ/EVERGREEN FOUNDATION: 60% Standard & Poor's 500 Index/40% Lehman Brothers
Aggregate Bond Index.
JPM CORE BOND: Salomon Brothers Broad Investment Grade Bond.
LAZARD LARGE CAP VALUE: Standard & Poor's 500 Index.
LAZARD SMALL CAP VALUE: Russell 2000 Index.
MFS GROWTH WITH INCOME: Standard & Poor's 500 Index.
MFS RESEARCH: Standard & Poor's 500 Index.
MFS EMERGING GROWTH COMPANIES: Russell 2000 Index.
MERRILL LYNCH BASIC VALUE EQUITY: Standard & Poor's 500 Index.
MERRILL LYNCH WORLD STRATEGY: 36% Standard & Poor's 500 Index/24% Morgan Stanley
Capital International Europe, Australia, Far East Index/21% Salomon Brothers
U.S. Treasury Bond 1 Year + 14% Salomon Brothers World Government Bond
(excluding U.S.)/and 5% Three-Month U.S. Treasury Bill.
MORGAN STANLEY EMERGING MARKETS EQUITY: Morgan Stanley Capital International
Emerging Markets Free Price Return Index.
EQ/PUTNAM GROWTH & INCOME VALUE: Standard & Poor's 500 Index.
EQ/PUTNAM INVESTORS GROWTH: Standard & Poor's 500 Index.
EQ/PUTNAM INTERNATIONAL EQUITY: Morgan Stanley Capital International Europe,
Australia, Far East Index.
LIPPER SURVEY. The Lipper Variable Insurance Products Performance Analysis
Survey (Lipper Survey) records the performance of a large group of variable
annuity products, including managed separate accounts of insurance companies.
According to Lipper Analytical Services, Inc., the data are presented net of
investment management fees, direct operating expenses and asset-based charges
applicable under annuity contracts. Lipper data provide a more accurate picture
than market benchmarks of the Equitable ________________ performance relative to
other variable annuity products.
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE 65
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TABLE 1
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
LENGTH OF INVESTMENT PERIOD
- -----------------------------------------------------------------------------------------------------------------------------------
SINCE SINCE
1 3 5 10 OPTION PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION* INCEPTION**
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Alliance Money Market
- -----------------------------------------------------------------------------------------------------------------------------------
Alliance High Yield
- -----------------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Aggressive Stock
- -----------------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth
- -----------------------------------------------------------------------------------------------------------------------------------
BT Equity 500 Index
- -----------------------------------------------------------------------------------------------------------------------------------
BT Small Company Index
- -----------------------------------------------------------------------------------------------------------------------------------
BT International Equity Index
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Foundation
- -----------------------------------------------------------------------------------------------------------------------------------
JPM Core Bond
- -----------------------------------------------------------------------------------------------------------------------------------
Lazard Large Cap Value
- -----------------------------------------------------------------------------------------------------------------------------------
Lazard Small Cap Value
- -----------------------------------------------------------------------------------------------------------------------------------
MFS Research
- -----------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies
- -----------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Basic Value Equity
- -----------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch World Strategy
- -----------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The variable investment option inception dates are: Alliance Money Market,
Alliance High Yield, Alliance Common Stock, and EQ/Alliance Aggressive
Stock (October 16, 1996); Alliance Small Cap Growth, MFS Research, MFS
Emerging Growth Companies, Merrill Lynch Basic Value Equity, Merrill Lynch
World Strategy, EQ/Putnam Growth & Income Value, EQ/Putnam Investors
Growth, and EQ/Putnam International Equity (May 1, 1997); BT Equity 500
Index, BT Small Company Index, BT International Equity Index, JPM Core
Bond, Lazard Large Cap Value, Lazard Small Cap Value, and Morgan Stanley
Emerging Markets Equity (December 31, 1997). EQ/Evergreen, EQ/Evergreen
Foundation, and MFS Growth With Income (December 31, 1998). The inception
dates for the variable investment options that became available less than
one year ago and are therefore not shown in this table are: EQ/Alliance
Premier Growth, Capital Guardian U.S. Equity, Capital Guardian Research,
and Capital Guardian International (April 30, 1999) and EQ/Alliance
Technology (anticipated to become available on or about May 1, 2000,
subject to regulatory clearance).
** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the table are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding portfolios
of EQ Advisors Trust on October 18, 1999. The portfolio inception dates
are: Alliance Money Market (July 13, 1981); Alliance High Yield (January 2,
1987); Alliance Common Stock (January 13, 1976); EQ/Alliance Aggressive
Stock (January 27, 1986); Alliance Small Cap Growth, MFS Research, MFS
Emerging Growth Companies, Merrill Lynch Basic Value Equity, Merrill Lynch
World Strategy, EQ/Putnam Growth & Income Value, EQ/Putnam Investors
Growth, and EQ/Putnam International Equity (May 1, 1997); BT Equity 500
Index, BT Small Company Index, BT International Equity Index, JPM Core
Bond, Lazard Large Cap Value, and Lazard Small Cap Value (December 31,
1997); Morgan Stanley Emerging Markets Equity (August 20, 1997); and
EQ/Evergreen, EQ/Evergreen Foundation, MFS Growth with Income (December 31,
1998). The inception dates for the portfolios that became available less
than one year ago and are therefore not shown in the tables are:
EQ/Alliance Premier Growth, Capital Guardian U.S. Equity, Capital Guardian
Research, and Capital Guardian International (April 30, 1999); and
EQ/Alliance Technology (anticipated to become effective on or about May 1,
2000 subject to regulatory clearance).
<PAGE>
- --------------------------------------------------------------------------------
66 INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TABLE 2
GROWTH OF $1,000 UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
LENGTH OF INVESTMENT PERIOD
- --------------------------------------------------------------------------------------------------------------------------
SINCE
1 3 5 10 PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION*
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alliance Money Market
- --------------------------------------------------------------------------------------------------------------------------
Alliance High Yield
- --------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock
- --------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Aggressive Stock
- --------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth -- -- --
- --------------------------------------------------------------------------------------------------------------------------
BT Equity 500 Index -- -- --
- --------------------------------------------------------------------------------------------------------------------------
BT Small Company Index -- -- --
- --------------------------------------------------------------------------------------------------------------------------
BT International Equity Index -- -- --
- --------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen
- --------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Foundation
- --------------------------------------------------------------------------------------------------------------------------
JPM Core Bond -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Lazard Large Cap Value -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Lazard Small Cap Value -- -- --
- --------------------------------------------------------------------------------------------------------------------------
MFS Research -- -- --
- --------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Basic Value Equity
- --------------------------------------------------------------------------------------------------------------------------
Merrill Lynch World Strategy
- --------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity -- -- --
- --------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value -- -- --
- --------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth -- -- --
- --------------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity -- -- --
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ---------------
* Portfolio inception dates are shown in Table 1.
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE 67
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TABLE 3
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE MONEY MARKET --
- ---------------------------------------------------------------------------------------------------------------------------------
Lipper Money Market --
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmark --
- ---------------------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD --
- ---------------------------------------------------------------------------------------------------------------------------------
Lipper High Current Yield --
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmark --
- ---------------------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK
- ---------------------------------------------------------------------------------------------------------------------------------
Lipper Growth
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmark
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Aggressive Stock --
- ---------------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Growth --
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmark --
- ---------------------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Lipper Small Company Growth -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmark -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
BT EQUITY 500 INDEX -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmark -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
BT SMALL COMPANY INDEX -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Lipper Small Cap -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmark -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
BT INTERNATIONAL EQUITY INDEX -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Lipper International -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmark -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
EQ EVERGREEN
- ---------------------------------------------------------------------------------------------------------------------------------
EQ EVERGREEN FOUNDATION
- ---------------------------------------------------------------------------------------------------------------------------------
JPM CORE BOND -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Lipper Intermediate Investment Grade Debt -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmark -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
LAZARD LARGE CAP VALUE -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Lipper Capital Appreciation -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmark -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
LAZARD SMALL CAP VALUE -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Lipper Small Cap -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmark -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
68 INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TABLE 3 (CONTINUED)
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MFS RESEARCH 22.93% -- -- -- -- 23.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Lipper Growth 25.82% -- -- -- -- 28.73%
- ------------------------------------------------------------------------------------------------------------------------------------
Benchmark 28.58% -- -- -- -- 31.63%
- ------------------------------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES 33.24% -- -- -- -- 33.57%
- ------------------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 15.97% -- -- -- -- 22.72%
- ------------------------------------------------------------------------------------------------------------------------------------
Benchmark (2.54)% -- -- -- -- 14.53%
- ------------------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH BASIC VALUE EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income
- ------------------------------------------------------------------------------------------------------------------------------------
Benchmark
- ------------------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH WORLD STRATEGY
- ------------------------------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Benchmark
- ------------------------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY (27.71)% -- -- -- -- (33.35)%
- ------------------------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets (30.50)% -- -- -- -- (36.28)%
- ------------------------------------------------------------------------------------------------------------------------------------
Benchmark (25.34)% -- -- -- -- (28.92)%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE 11.75% -- -- -- -- 16.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 15.54% -- -- -- -- 21.32%
- ------------------------------------------------------------------------------------------------------------------------------------
Benchmark 28.58% -- -- -- -- 31.63%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INVESTORS GROWTH 34.99% -- -- -- -- 36.08%
- ------------------------------------------------------------------------------------------------------------------------------------
Lipper Growth 25.82% -- -- -- -- 28.73%
- ------------------------------------------------------------------------------------------------------------------------------------
Benchmark 28.58% -- -- -- -- 31.63%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INTERNATIONAL EQUITY 18.34% -- -- -- -- 16.41%
- ------------------------------------------------------------------------------------------------------------------------------------
Lipper International 12.17% -- -- -- -- 9.06%
- ------------------------------------------------------------------------------------------------------------------------------------
Benchmark 20.00% -- -- -- -- 13.43%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ---------------
* Portfolio inception dates are shown in Table 1.
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE 69
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TABLE 4
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEAR 20 YEARS INCEPTION*
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE MONEY MARKET 4.08% 12.81% 21.14% 52.62% -- 167.86%
- ---------------------------------------------------------------------------------------------------------------
Lipper Money Market 4.84% 15.34% 26.25% 66.09% -- 214.68%
- ---------------------------------------------------------------------------------------------------------------
Benchmark 5.05% 16.35% 28.27% 69.88% -- 214.45%
- ---------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (6.28)% 33.18% 51.57% -- -- 186.45%
- ---------------------------------------------------------------------------------------------------------------
Lipper High Current Yield (0.44)% 26.80% 43.00% 145.62% -- 182.21%
- ---------------------------------------------------------------------------------------------------------------
Benchmark 3.66% 29.90% 53.96% 186.01% -- 239.69%
- ---------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 27.83% 100.38% 153.56% 389.49% 2,284.72% 2,373.10%
- ---------------------------------------------------------------------------------------------------------------
Lipper Growth 22.86% 84.52% 138.97% 388.00% 2,185.68% 3,490.04%
- ---------------------------------------------------------------------------------------------------------------
Benchmark 28.58% 110.85% 193.91% 479.62% 2,530.43% 2,919.92%
- ---------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE AGGRESSIVE STOCK (0.90)% 30.98% 61.91% 399.92% -- 608.45%
Lipper Mid-Cap Growth 12.16% 58.64% 102.73% 334.88% -- 448.32%
- ---------------------------------------------------------------------------------------------------------------
Benchmark 8.28% 63.35% 106.12% 360.30% -- 494.67%
- ---------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH (5.35)% -- -- -- -- 18.99%
- ---------------------------------------------------------------------------------------------------------------
Lipper Small Company Growth (0.33)% -- -- -- -- 28.98%
- ---------------------------------------------------------------------------------------------------------------
Benchmark 1.23% -- -- -- -- 29.23%
- ---------------------------------------------------------------------------------------------------------------
BT EQUITY 500 INDEX 23.94% -- -- -- -- 23.94%
- ---------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index 26.78% -- -- -- -- 26.78%
- ---------------------------------------------------------------------------------------------------------------
Benchmark 28.58% -- -- -- -- 28.58%
- ---------------------------------------------------------------------------------------------------------------
BT SMALL COMPANY INDEX (3.24)% -- -- -- -- (3.24)%
- ---------------------------------------------------------------------------------------------------------------
Lipper Small Cap 1.53% -- -- -- -- 1.49%
- ---------------------------------------------------------------------------------------------------------------
Benchmark (2.54)% -- -- -- -- (2.54)%
- ---------------------------------------------------------------------------------------------------------------
BT INTERNATIONAL EQUITY INDEX 18.95% -- -- -- -- 18.95%
- ---------------------------------------------------------------------------------------------------------------
Lipper International 12.17% -- -- -- -- 12.23%
- ---------------------------------------------------------------------------------------------------------------
Benchmark 20.00% -- -- -- -- 20.00%
- ---------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN
- ---------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN FOUNDATION
- ---------------------------------------------------------------------------------------------------------------
JPM CORE BOND 7.99% -- -- -- -- 7.99%
- ---------------------------------------------------------------------------------------------------------------
Lipper Intermediate Investment Grade Debt 7.23% -- -- -- -- 7.23%
- ---------------------------------------------------------------------------------------------------------------
Benchmark 8.72% -- -- -- -- 8.72%
- ---------------------------------------------------------------------------------------------------------------
LAZARD LARGE CAP VALUE 18.92% -- -- -- -- 18.92%
- ---------------------------------------------------------------------------------------------------------------
Lipper Capital Appreciation 24.16% -- -- -- -- 24.09%
- ---------------------------------------------------------------------------------------------------------------
Benchmark 28.58% -- -- -- -- 28.58%
- ---------------------------------------------------------------------------------------------------------------
LAZARD SMALL CAP VALUE (7.95)% -- -- -- -- (7.95)%
- ---------------------------------------------------------------------------------------------------------------
Lipper Small Cap 1.53% -- -- -- -- 1.53%
- ---------------------------------------------------------------------------------------------------------------
Benchmark (2.54)% -- -- -- -- (2.54)%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
70 INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TABLE 4 (CONTINUED)
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MFS RESEARCH 22.93% -- -- -- -- 41.74%
- -----------------------------------------------------------------------------------------------------------------
Lipper Growth 25.82% -- -- -- -- 52.86%
- -----------------------------------------------------------------------------------------------------------------
Benchmark 28.58% -- -- -- -- 57.60%
- -----------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES 33.24% -- -- -- -- 62.08%
- -----------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 15.97% -- -- -- -- 42.16%
- -----------------------------------------------------------------------------------------------------------------
Benchmark (2.54)% -- -- -- -- 25.40%
- -----------------------------------------------------------------------------------------------------------------
MERRILL LYNCH BASIC VALUE EQUITY
- -----------------------------------------------------------------------------------------------------------------
Lipper Growth & Income
- -----------------------------------------------------------------------------------------------------------------
Benchmark
- -----------------------------------------------------------------------------------------------------------------
MERRILL LYNCH WORLD STRATEGY
- -----------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio
- -----------------------------------------------------------------------------------------------------------------
Benchmark
- -----------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY (27.71)% -- -- -- -- (42.51)%
- -----------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets (30.50)% -- -- -- -- (45.67)%
- -----------------------------------------------------------------------------------------------------------------
Benchmark (25.34)% -- -- -- -- (36.71)%
- -----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE 11.75% -- -- -- -- 29.03%
- -----------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 15.54% -- -- -- -- 38.49%
- -----------------------------------------------------------------------------------------------------------------
Benchmark 28.58% -- -- -- -- 57.60%
- -----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INVESTORS GROWTH 34.99% -- -- -- -- 67.21%
- -----------------------------------------------------------------------------------------------------------------
Lipper Growth 25.82% -- -- -- -- 52.86%
- -----------------------------------------------------------------------------------------------------------------
Benchmark 28.58% -- -- -- -- 57.60%
- -----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INTERNATIONAL EQUITY 18.34% -- -- -- -- 28.85%
- -----------------------------------------------------------------------------------------------------------------
Lipper International 12.17% -- -- -- -- 15.88%
- -----------------------------------------------------------------------------------------------------------------
Benchmark 20.00% -- -- -- -- 23.42%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
- ---------------------
* Portfolio inception dates are shown in Table 1.
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE 71
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TABLE 5
YEAR-BY-YEAR RATES OF RETURN:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Alliance Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Alliance High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Aggressive Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
BT Equity 500 Index -- -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
BT Small Company Index -- -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
BT International Equity Index -- -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Foundation
- ------------------------------------------------------------------------------------------------------------------------------------
JPM Core Bond -- -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Lazard Large Cap Value -- -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Lazard Small Cap Value -- -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
MFS Research -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch World Strategy
- ------------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Market
Equity -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ---------------
+ Returns for these portfolios represent less than 12 months of performance.
The returns are as of each portfolio inception date as shown in Table 1.
<PAGE>
- --------------------------------------------------------------------------------
72 INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMUNICATING PERFORMANCE DATA
In reports or other communications to contract owners or in advertising
material, we may describe general economic and market conditions affecting our
variable investment options and the portfolios and may compare the performance
or ranking of those options and the portfolios with:
o those of other insurance company separate accounts or mutual funds included
in the rankings prepared by Lipper Analytical Services, Inc., Morningstar,
Inc., VARDS, or similar investment services that monitor the performance of
insurance company separate accounts or mutual funds;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective contract owners advertisements or
other communications that include evaluations of a variable investment option or
portfolio by nationally recognized financial publications. Examples of such
publications are:
- --------------------------------------------------------------------------------
Barron's Investment Management Weekly
Morningstar's Variable Annuity Money Management Letter
Sourcebook Investment Dealers Digest
Business Week National Underwriter
Forbes Pension & Investments
Fortune USA Today
Institutional Investor Investor's Business Daily
Money The New York Times
Kiplinger's Personal Finance The Wall Street Journal
Financial Planning The Los Angeles Times
Investment Adviser The Chicago Tribune
- --------------------------------------------------------------------------------
Lipper Analytical Services, Inc. (Lipper) compiles performance data for peer
universes of funds with similar investment objectives in its Lipper Survey.
Morningstar, Inc. compiles similar data in the Morningstar Variable Annuity/Life
Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800 mutual
funds underlying variable annuity and life insurance products. It divides these
actively managed portfolios into 25 categories by portfolio objectives. The
Lipper Survey contains two different universes, which reflect different types of
fees in performance data:
o The "separate account" universe reports performance data net of investment
management fees, direct operating expenses and asset-based charges
applicable under variable life and annuity contracts, and
o The "mutual fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects only
charges that relate to the underlying mutual fund.
The Morningstar Variable Annuity/Life Report consists of nearly 700 variable
life and annuity funds, all of which report their data net of investment
management fees, direct operating expenses and separate account level charges.
VARDS is a monthly reporting service that monitors approximately 2,500 variable
life and variable annuity funds on performance and account information.
YIELD INFORMATION
Current yield for the Alliance Money Market option will be based on net changes
in a hypothetical investment over a given seven-day period, exclusive of capital
changes, and then "annualized" (assuming that the same seven-day result would
occur each week for 52 weeks). Current yield for the Alliance High Yield option
will be based on net changes in a hypothetical investment over a given 30-day
period, exclusive of capital changes, and then "annualized" (assuming that the
same 30-day result would occur each month for 12 months).
"Effective yield" is calculated in a similar manner, but when annualized, any
income earned by the investment is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because any earnings are
compounded weekly for the Alliance Money Market option.
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE 73
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The current yields and effective yields assume the deduction of all contract
charges and expenses other than any charge for taxes such as premium tax. See
"Yield Information for the Alliance Money Market Option and Alliance High Yield
Option" in the SAI.
<PAGE>
- --------------------------------------------------------------------------------
74 INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
- --------------------------------------------------------------------------------
10
Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's annual report on Form 10-K for the year ended December 31, 1999
is considered to be a part of this prospectus because it is incorporated by
reference.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act") will be considered to
become part of this prospectus because they are incorporated by reference.
Any statement contained in a document that is, or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our annual report on
Form 10-K and quarterly reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a Web site that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the site is
http://www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person to
whom this prospectus is delivered, a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to The
Equitable Life Assurance Society of the United States, 1290 Avenue of the
Americas, New York, New York 10104. Attention: Corporate Secretary (telephone:
(212) 554-1234).
<PAGE>
- --------------------------------------------------------------------------------
APPENDIX I: PURCHASE CONSIDERATIONS FOR QP CONTRACTS A-1
- --------------------------------------------------------------------------------
Appendix I: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Equitable Accumulator(SM) QP
contract should discuss with their tax advisers whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether the
plan provisions permit the investment of plan assets in the QP contract, the
distribution of such an annuity, the purchase of the guaranteed minimum income
benefit, and the payment of death benefits in accordance with the requirements
of the federal income tax rules. The QP contract and this prospectus should be
reviewed in full, and the following factors, among others, should be noted.
Assuming continued plan qualification and operation, earnings on qualified plan
assets will accumulate value on a tax-deferred basis even if the plan is not
funded by the Equitable Accumulator(SM) QP contract or another annuity.
Therefore, you should purchase an QP _____ contract to fund a plan for the
contract's features and benefits other than tax deferral. This QP contract
accepts transfer contributions only and not regular, ongoing payroll
contributions. For 401(k) plans under defined contribution plans, no employee
after-tax contributions are accepted.
Under defined benefit plans, we will not accept rollovers from a defined
contribution plan to a defined benefit plan. We will only accept transfers from
a defined benefit plan or a change of investment vehicles in the plan. For
defined benefit plans, the maximum percentage of actuarial value of the plan
participant/employee's normal retirement benefit that can be funded by a QP
contract is 80%. The account value under a QP contract may at any time be more
or less than the lump sum actuarial equivalent of the accrued benefit for a
defined benefit plan participant/employee. Equitable Life does not guarantee
that the account value under a QP contract will at any time equal the actuarial
value of 80% of a participant/employee's accrued benefit. If overfunding of a
plan occurs, withdrawals from the QP contract may be required. A market value
adjustment may apply.
Further, Equitable Life will not perform or provide any plan recordkeeping
services with respect to the QP contracts. The plan's administrator will be
solely responsible for performing or providing for all such services. There is
no loan feature offered under the QP contracts, so if the plan provides for
loans and a participant/ employee takes a loan from the plan, other plan assets
must be used as the source of the loan and any loan repayments must be credited
to other investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70 1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants
approaching or over age 70 1/2; and
Finally, because the method of purchasing the QP contract and the features of
the QP contract may appeal more to plan participants/employees who are older and
tend to be highly paid, and because certain features of the QP contract are
available only to plan participants/employees who meet certain minimum and/or
maximum age requirements, plan trustees should discuss with their advisers
whether the purchase of the QP contract would cause the plan to engage in
prohibited discrimination in contributions, benefits or otherwise.
<PAGE>
- --------------------------------------------------------------------------------
APPENDIX II: MARKET VALUE ADJUSTMENT EXAMPLE B-1
- --------------------------------------------------------------------------------
Appendix II: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated on
February 15, 2001 to a fixed maturity option with a maturity date of February
15, 2010 (nine years later) at a hypothetical rate to maturity of 7.00%,
resulting in a maturity value at the maturity date of $183,846. We further
assume that a withdrawal of $50,000 is made four years later on February 15,
2004.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
HYPOTHETICAL ASSUMED RATE TO MATURITY ON
FEBRUARY 15, 2004
-------------------------------------------------------
5.00% 9.00%
- --------------------------------------------------------------------------------------------------------------
As of February 15, 2004 (before withdrawal)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
(1) Market adjusted amount $144,048 $119,487
- --------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,080 $131,080
- --------------------------------------------------------------------------------------------------------------
(3) Market value adjustment: $12,968 $(11,593)
(1) - (2)
- --------------------------------------------------------------------------------------------------------------
ON FEBRUARY 15, 2004 (AFTER WITHDRAWAL)
- --------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with
withdrawal: (3) x [$50,000/(1)] $4,501 $(4,851)
- --------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount:
[$50,000 - (4)] $45,499 $54,851
- --------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $85,581 $76,229
- --------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,032 $106,915
- --------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $94,048 $69,487
- --------------------------------------------------------------------------------------------------------------
</TABLE>
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a portion of a negative market
value adjustment is realized. On the other hand, if a withdrawal is made when
rates have decreased from 7.00% to 5.00% (left column), a portion of a positive
market value adjustment is realized.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
PAGE
Unit Values 2
Custodian and Independent Accountants 2
Yield Information for the Alliance Money Market Option and
Alliance High Yield Option 2
Financial Statements 4
HOW TO OBTAIN AN EQUITABLE ACCUMULATOR STATEMENT OF ADDITIONAL INFORMATION FOR
SEPARATE ACCOUNT NO. 49
Send this request form to:
Equitable Accumulator
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an SAI for Separate Account No. 49 dated May 1, 2000.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
(SAI 9AMLF (5/00))
<PAGE>
Equitable ____________ THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
A combination variable and fixed 1290 AVENUE OF THE AMERICAS
deferred annuity contract NEW YORK, NEW YORK 10104
STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 2000
- --------------------------------------------------------------------------------
This statement of additional information ("SAI") is not a prospectus. It should
be read in conjunction with the related Equitable _________ prospectus, dated
May 1, 2000. That prospectus provides detailed information concerning the
contracts and the variable investment options, as well as the fixed maturity
options, that fund the contracts. Each variable investment option is a
subaccount of Equitable Life's Separate Account No. 49. The fixed maturity
options are part of Equitable Life's general account. Definitions of special
terms used in the SAI are found in the prospectus.
A copy of the prospectus is available free of charge by writing the processing
office (Post Office Box 1547, Secaucus, NJ 07096-1547), by calling
1-800-789-7771 toll free, or by contacting your registered representative.
TABLE OF CONTENTS
Unit Values 2
Custodian and Independent Accountants 2
Yield Information for the Alliance Money Market
Option and Alliance High Yield Option 2
Financial Statements 4
Copyright 2000 The Equitable Life Assurance Society of the United States.
All rights reserved. Accumulator ________ is a service mark of
The Equitable Life Assurance Society of the United States.
SAI 9A 5/00
<PAGE>
- --------------------------------------------------------------------------------
2
- --------------------------------------------------------------------------------
UNIT VALUES
Unit values are determined at the end of each valuation period for each of the
variable investment options. We may offer other annuity contracts and
certificates which will have their own unit values for the variable investment
options. They may be different from the unit values for the Equitable
______.
The unit value for a variable investment option for any valuation period is
equal to: (i) the unit value for the preceding valuation period multiplied by
(ii) the net investment factor for that option for that valuation period. A
valuation period is each business day together with any preceding non-business
days. The net investment factor is:
(a/b) - c
where:
(a) is the value of the variable investment option's shares of the corresponding
portfolio at the end of the valuation period. Any amounts allocated to or
withdrawn from the option for the valuation period are not taken into
account. For this purpose, we use the share value reported to us by EQ
Advisors Trust.
(b) is the value of the variable investment option's shares of the corresponding
portfolio at the end of the preceding valuation period. (Any amounts
allocated or withdrawn for that valuation period are taken into account.)
(c) is the daily mortality and expense risks charge and administrative charge
relating to the contracts, times the number of calendar days in the
valuation period. These daily charges are at an effective annual rate not to
exceed a total of 0.50%.
CUSTODIAN AND INDEPENDENT ACCOUNTANTS
Equitable Life is the custodian for the shares of EQ Advisors Trust owned by
Separate Account No. 49.
The financial statements of Separate Account No. 49 as at December 31, 1999 and
for the periods ended December 31, 1999 and 1998 and the consolidated financial
statements of Equitable Life as at December 31, 1999 and 1998 and for each of
the three years ended December 31, 1999 included in this SAI have been so
included in reliance on the reports of PricewaterhouseCoopers LLP, independent
accountants, given on the authority of said firm as experts in auditing and
accounting.
YIELD INFORMATION FOR THE ALLIANCE MONEY MARKET OPTION AND
ALLIANCE HIGH YIELD OPTION
ALLIANCE MONEY MARKET OPTION
The Alliance Money Market option calculates yield information for seven-day
periods. The seven-day current yield calculation is based on a hypothetical
contract with one unit at the beginning of the period. To determine the
seven-day rate of return, the net change in the unit value is computed by
subtracting the unit value at the beginning of the period from a unit value,
exclusive of capital changes, at the end of the period.
The net change is then reduced by the average administrative charge factor
(explained below). This reduction is made to recognize the deduction of the
annual administrative charge which is not reflected in the unit value.
Unit values reflect all other accrued expenses of the Alliance Money Market
option but do not reflect any charges for applicable taxes such as state or
local premium taxes.
The adjusted net change is divided by the unit value at the beginning of the
period to obtain what is called the adjusted base period rate of return. This
seven-day adjusted base period return is then multiplied by 365/7 to produce an
annualized seven-day current yield figure carried to the nearest one-hundredth
of one percent.
<PAGE>
- --------------------------------------------------------------------------------
3
- --------------------------------------------------------------------------------
The actual dollar amount of the annual administrative charge that is deducted
from the Alliance Money Market option will vary for each contract depending upon
the percentage of the account value allocated to the Alliance Money Market
option. To determine the effect of the annual administrative charge on the
yield, we start with the total dollar amounts of the charges deducted from the
option during the 12-month period ending on the last day of the prior year. The
amount is multiplied by 7/365 to produce an average administrative charge factor
which is used in all weekly yield computations for the ensuing year. The average
administrative charge factor is then divided by the number of Alliance Money
Market units as of the end of the prior calendar year, and the resulting
quotient is deducted from the net change in unit value for the seven-day period.
The effective yield is obtained by modifying the current yield to take into
account the compounding nature of the Alliance Money Market option's
investments, as follows: the unannualized adjusted base period return is
compounded by adding one to the adjusted base period return, raising the sum to
a power equal to 365 divided by 7, and subtracting one from the result, i.e.,
effective yield = (base period return + 1 )[superscript: 365/7] - 1. The
Alliance Money Market option yields will fluctuate daily. Accordingly, yields
for any given period do not necessarily represent future results. In addition,
the value of units of the Alliance Money Market option will fluctuate and not
remain constant.
ALLIANCE HIGH YIELD OPTION
The Alliance High Yield option calculates yield information for 30-day periods.
The 30-day current yield calculation is based on a hypothetical contract with
one unit at the beginning of the period. To determine the 30-day rate of return,
the net change in the unit value is computed by subtracting the unit value at
the beginning of the period from a unit value, exclusive of capital changes, at
the end of the period.
The net change is then reduced by the average administrative charge factor
(explained below). This reduction is made to recognize the deduction of the
annual administrative charge which is not reflected in the unit value.
Unit values reflect all other accrued expenses of the Alliance High Yield option
but do not reflect any withdrawal charges or charges for applicable taxes such
as state or local premium taxes.
The adjusted net change is divided by the unit value at the beginning of the
period to obtain the adjusted base period rate of return. This 30-day adjusted
base period return is then multiplied by 365/30 to produce an annualized 30-day
current yield figure carried to the nearest one-hundredth of one percent.
The actual dollar amount of the annual administrative charge that is deducted
from the Alliance High Yield option will vary for each contract depending upon
the percentage of the account value allocated to the Alliance High Yield option.
To determine the effect of the annual administrative charge on the yield, we
start with the total dollar amounts of the charges deducted from the option
during the 12-month period ending on the last day of the prior year. The amount
is multiplied by 30/365 to produce an average administrative charge factor which
is used in all 30-day yield computations for the ensuing year. The average
administrative charge factor is then divided by the number of Alliance High
Yield units as of the end of the prior calendar year, and the resulting quotient
is deducted from the net change in unit value for the 30-day period.
The yield for the Alliance High Yield option will fluctuate daily. Accordingly,
the yield for any given period does not necessarily represent future results. In
addition, the value of units of the Alliance High Yield option will fluctuate
and not remain constant.
ALLIANCE MONEY MARKET OPTION AND ALLIANCE HIGH YIELD OPTION YIELD INFORMATION
The yields for the Alliance Money Market option and Alliance High Yield option
reflect charges that are not normally reflected in the yields of other
investments. Therefore, they may be lower when compared with yields of other
investments. The yields for the Alliance Money Market option and Alliance High
Yield option should not be compared to the return on fixed rate investments
which guarantee rates of interest for specified
<PAGE>
- --------------------------------------------------------------------------------
4
- --------------------------------------------------------------------------------
periods, such as the fixed maturity options. Nor should the yields be compared
to the yields of money market options made available to the general public.
Because the Equitable _______ contracts described in the prospectus
are being offered for the first time in 2000, no yield information is presented.
FINANCIAL STATEMENTS
The consolidated financial statements of Equitable Life included herein should
be considered only as bearing upon the ability of Equitable Life to meet its
obligations under the contracts.
<PAGE>
PART C
OTHER INFORMATION
-----------------
Item 24. Financial Statements and Exhibits.
(a) Financial Statements
(to be filed by amendment).
(b) Exhibits.
The following exhibits are filed herewith:
1. Resolutions of the Board of Directors of The Equitable Life
Assurance Society of the United States ("Equitable") authorizing
the establishment of the Registrant, incorporated herein by
reference to exhibit(1) to Registration Statement No. 333-05593 on
June 10, 1996.
2. Not applicable.
3. (a) Form of Distribution Agreement dated as of January 1, 1998
among The Equitable Life Assurance Society of the United
States for itself and as depositor on behalf of certain
separate accounts and Equitable Distributors, Inc.,
incorporated herein by reference to Exhibit 3(b) to
Registration Statement no. 333-05593, filed May 1, 1998.
(b) Form of Sales Agreement among Equitable Distributors, Inc.,
as Distributor, a Broker-Dealer (to be named) and a General
Agent (to be named), incorporated herein by reference to
Exhibit 3(b) to Registration Statement No. 333-05593 filed
June 7, 1996.
C-1
<PAGE>
4. (a) Form of group annuity contract no. 1050-94IC, incorporated
herein by reference to Exhibit 4(a) to the Registration
Statement on Form N-4 (File No. 33-83750), filed February 27,
1998.
(b) Forms of group annuity certificate nos. 94ICA and 94ICB,
incorporated herein by reference to Exhibit 4(b) to the
Registration Statement on Form N-4 (File No. 33-83750), filed
February 27, 1998.
C-2
<PAGE>
(c) Forms of endorsement nos. 94ENIRAI, 94ENNQI and 94ENMVAI to
contract no. 1050-94IC and data pages nos. 94ICA/BIM and
94ICA/BMVA, incorporated herein by reference to Exhibit 4(c)
to the Registration Statement on Form N-4 (File No.
33-83750), filed February 27, 1998.
(d) Form of endorsement No. 98ENJONQI to Contract Form No.
1050-94IC and the Certificates under the Contract,
incorporated herein by reference to Exhibit 4(n) to
Registration Statement No. 333-05593 filed December 31, 1997.
(e) Form of endorsement No. 98Roth to Contract Form No. 1050-94IC
and the Certificates under the Contract, incorporated herein
by reference to Exhibit 4(o) to Registration Statement No.
333-05593 filed December 31, 1997.
(f) Form of Custodial Owned Roth IRA endorsement no. 98COROTH to
Contract No. 1050-94IC, incorporated herein by reference to
Exhibit 4(p) to Registration Statement No. 333-05593, filed
May 1, 1998.
(g) Form of data pages for Equitable ___________.
5. Form of Enrollment Form/Application for Equitable ___________ to
be filed by Amendment.
6. (a) Restated Charter of Equitable, as amended January 1, 1997,
incorporated herein by reference to Exhibit 6(a) to
Registration Statement No. 333-05593 filed March 6, 1997.
(b) By-Laws of Equitable, as amended November 21, 1996,
incorporated herein by reference to Exhibit 6(b) to
Registration Statement No. 333-05593 filed March 6, 1997.
7. Not applicable.
8. Form of Participation Agreement among EQ Advisors Trust,
Equitable, Equitable Distributors, Inc. and EQ Financial
Consultants, Inc. (now AXA Advisors, LLC), incorporated by
reference to the Registration Statement of EQ Advisors Trust
on Form N-1A. (File Nos. 333-17217 and 811-07953).
9. Opinion and Consent of Dodie Kent, Assistant Vice President and
Counsel of Equitable Life, as to the legality of the securities
being offered, dated February 4, 2000.
10. (a) Consent of Independent Public Accountants to be filed by
Amendment.
(b) Powers of Attorney incorporated herein by reference to
Exhibit No. 10(b) to Registration Statement No. 333-79379
filed on May 26, 1999.
(c) Power of Attorney.
11. Not applicable.
12. Not applicable.
13. (a) Formulae for Determining Money Market Fund Yield for a
Seven-Day Period, incorporated herein by reference to Exhibit
13(a) to Registration Statement No. 333-05593 filed
June 7, 1996.
C-3
<PAGE>
(b) Formulae for Determining Cumulative and Annualized Rates of
Return, incorporated herein by reference to Exhibit 13(b) to
Registration Statement No. 333-05593 filed June 7, 1996.
(c) Formulae for Determining Standardized Performance Value and
Annualized Average Performance Ratio incorporated herein by
reference to Exhibit 13(c) to Registration Statement No.
333-05593 filed June 7, 1996.
C-4
<PAGE>
Item 25: Directors and Officers of Equitable.
Set forth below is information regarding the directors and principal
officers of Equitable. Equitable's address is 1290 Avenue of Americas,
New York, New York 10104. The business address of the persons whose
names are preceded by an asterisk is that of Equitable.
POSITIONS AND
NAME AND PRINCIPAL OFFICES WITH
BUSINESS ADDRESS EQUITABLE
- ---------------- ---------
DIRECTORS
Francoise Colloc'h Director
AXA
23, Avenue Matignon
75008 Paris, France
Henri de Castries Director
AXA
23, Avenue Matignon
75008 Paris, France
Joseph L. Dionne Director
198 North Wieton Road
New Canaan, CT 06840
Denis Duverne Director
AXA
23, Avenue Matignon
75008 Paris, France
Jean-Rene Fourtou Director
Aventis
25 Quai Paul Doumer
92408 Courbevoie Cedex,
France
Norman C. Francis Director
Xavier University of Louisiana
7325 Palmetto Street
New Orleans, LA 70125
C-5
<PAGE>
POSITIONS AND
NAME AND PRINCIPAL OFFICES WITH
BUSINESS ADDRESS EQUITABLE
- ---------------- ---------
Donald J. Greene Director
LeBouef, Lamb, Greene & MacRae
125 West 55th Street
New York, NY 10019-4513
John T. Hartley Director
Harris Corporation
1025 NASA Boulevard
Melbourne, FL 32919
John H.F. Haskell, Jr. Director
SBC Warburg Dillon Read LLC
299 Park Avenue, 40th Floor
New York, NY 10171
Mary R. (Nina) Henderson Director
Best Foods
International Plaza
700 Sylvan Avenue
Englewood Cliffs, NJ 07632-9976
W. Edwin Jarmain Director
Jarmain Group Inc.
121 King Street West
Suite 2525
Toronto, Ontario M5H 3T9,
Canada
George T. Lowy Director
Cravath, Swaine & Moore
825 Eighth Avenue
New York, NY 10019
C-6
<PAGE>
POSITIONS AND
NAME AND PRINCIPAL OFFICES WITH
BUSINESS ADDRESS EQUITABLE
- ---------------- ---------
Didier Pineau-Valencienne Director
Credit Suisse First Boston
64, rue de Miromesmil
75008 Paris, France
George J. Sella, Jr. Director
P.O. Box 397
Newton, NJ 07860
Peter J. Tobin Director
St. John's University
8000 Utopia Parkway
Jamaica, NY 11439
Dave H. Williams Director
Alliance Capital Management Corporation
1345 Avenue of the Americas
New York, NY 10105
OFFICER-DIRECTORS
- -----------------
*Michael Hegarty President, Chief Operating
Officer and Director
*Edward D. Miller Chairman of the Board,
Chief Executive Officer
and Director
*Stanley B. Tulin Vice Chairman of the Board,
Chief Financial Officer and Director
OTHER OFFICERS
- --------------
*Leon Billis Executive Vice President
*Derry Bishop Executive Vice President and
Chief Agency Officer
*Harvey Blitz Senior Vice President
*Kevin R. Byrne Senior Vice President and Treasurer
*John A. Caroselli Executive Vice President
Selig Ehrlich Senior Vice President and Chief
Actuary
*Alvin H. Fenichel Senior Vice President and
Controller
C-7
<PAGE>
POSITIONS AND
NAME AND PRINCIPAL OFFICES WITH
BUSINESS ADDRESS EQUITABLE
- ---------------- ---------
*Paul J. Flora Senior Vice President and Auditor
*Robert E. Garber Executive Vice President and
Chief Legal Officer
*James D. Goodwin Vice President
*Edward J. Hayes Senior Vice President
*Mark A. Hug Senior Vice President
*Craig Junkins Senior Vice President
*Donald R. Kaplan Vice President and Chief Compliance
Officer and Associate General
Counsel
*Michael S. Martin Executive Vice President and Chief
Marketing Officer
*Richard J. Matteis Executive Vice President
*Peter D. Noris Executive Vice President and Chief
Investment Officer
*Brian S. O'Neil Executive Vice President
*Anthony C. Pasquale Senior Vice President
*Pauline Sherman Senior Vice President, Secretary
and Associate General Counsel
*Samuel B. Shlesinger Senior Vice President
*Richard V. Silver Senior Vice President and
General Counsel
*Jose Suquet Senior Executive Vice President and
Chief Distribution Officer
*Gregory Wilcox Executive Vice President
*R. Lee Wilson Executive Vice President
*Naomi J. Weinstein Vice President
*Maureen K. Wolfson Vice President
C-8
<PAGE>
Item 26. Persons Controlled by or Under Common Control with the Insurance
Company or Registrant.
Separate Account No. 49 of The Equitable Life Assurance Society of the
United States (the "Separate Account") is a separate account of Equitable.
Equitable, a New York stock life insurance company, is a wholly owned
subsidiary of AXA Financial, Inc. (the "Holding Company"), a publicly traded
company.
The largest stockholder of the Holding Company is AXA which as of
October 4, 1999 beneficially owned 58.1% of the Holding Company's outstanding
common stock. AXA is able to exercise significant influence over the operations
and capital structure of the Holding Company and its subsidiaries, including
Equitable. AXA, a French company, is the holding company for an international
group of insurance and related financial services companies.
C-9
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
The Equitable Companies Incorporated (l991) (Delaware)
Donaldson, Lufkin & Jenrette, Inc. (1993) (Delaware) (41.8%) (See
Addendum B(1) for subsidiaries)
The Equitable Life Assurance Society of the United States (1859)
(New York) (a)(b)
The Equitable of Colorado, Inc. (l983) (Colorado)
EVLICO, INC. (1995) (Delaware)
EVLICO East Ridge, Inc. (1995) (California)
GP/EQ Southwest, Inc. (1995) (Texas)
Franconom, Inc. (1985) (Pennsylvania)
Frontier Trust Company (1987) (North Dakota)
Gateway Center Buildings, Garage, and Apartment Hotel, Inc.
(inactive) (pre-l970) (Pennsylvania)
Equitable Deal Flow Fund, L.P.
Equitable Managed Assets (Delaware)
EREIM LP Associates (99%)
EML Associates, L.P. (19.8%)
Alliance Capital Management L.P. (2.7% limited partnership
interest)
ACMC, Inc. (1991) (Delaware)(s)
Alliance Capital Management L.P. (1988) (Delaware)
(39.3% limited partnership interest)
EVCO, Inc. (1991) (New Jersey)
EVSA, Inc. (1992) (Pennsylvania)
Prime Property Funding, Inc. (1993) (Delaware)
Wil Gro, Inc. (1992) (Pennsylvania)
Equitable Underwriting and Sales Agency (Bahamas) Limited (1993)
(Bahamas)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-10
<PAGE>
The Equitable Companies Incorporated (cont.)
Donaldson Lufkin & Jenrette, Inc.
The Equitable Life Assurance Society of the United States (cont.)
Fox Run, Inc. (1994) (Massachusetts)
STCS, Inc. (1992) (Delaware)
CCMI Corporation (1994) (Maryland)
FTM Corporation (1994) (Maryland)
Equitable BJVS, Inc. (1992) (California)
Equitable Rowes Wharf, Inc. (1995) (Massachusetts)
Camelback JVS, Inc. (1995) (Arizona)
ELAS Realty, Inc. (1996) (Delaware)
100 Federal Street Realty Corporation (Massachusetts)
Equitable Structured Settlement Corporation (1996) (Delaware)
Prime Property Funding II, Inc. (1997) (Delaware)
Sarasota Prime Hotels, Inc. (1997) (Florida)
ECLL, Inc. (1997) (Michigan)
Equitable Holdings LLC (1997) (New York) (into which Equitable Holding
Corporation was merged in 1997)
EQ Financial Consultants, Inc. (l97l) (Delaware) (a) (b)
ELAS Securities Acquisition Corp. (l980) (Delaware)
100 Federal Street Funding Corporation (Massachusetts)
EquiSource of New York, Inc. (1986) (New York) (See
Addendum A for subsidiaries)
Equitable Casualty Insurance Company (l986) (Vermont)
EREIM LP Corp. (1986) (Delaware)
EREIM LP Associates (1%)
EML Associates (.02%)
Equitable Distributors, Inc. (1988) (Delaware) (a)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-11
<PAGE>
The Equitable Companies Incorporated (cont.)
Donaldson Lufkin & Jenrette, Inc.
The Equitable Life Assurance Society of the United States (cont.)
Equitable Holdings, LLC (cont.)
Equitable JVS, Inc. (1988) (Delaware)
Astor/Broadway Acquisition Corp. (1990) (New York)
Astor Times Square Corp. (1990) (New York)
PC Landmark, Inc. (1990) (Texas)
Equitable JVS II, Inc. (1994) (Maryland)
EJSVS, Inc. (1995) (New Jersey)
Donaldson, Lufkin & Jenrette, Inc. (1985 by EIC; 1993 by EQ and
EHC) (Delaware) (34.4%) (See Addendum B(1) for
subsidiaries)
JMR Realty Services, Inc. (1994) (Delaware)
Equitable Investment Corporation (l97l) (New York)
Stelas North Carolina Limited Partnership (50% limited
partnership interest) (l984)
Equitable JV Holding Corporation (1989) (Delaware)
Alliance Capital Management Corporation (l991) (Delaware) (b)
(See Addendum B(2) for subsidiaries)
Equitable Capital Management Corporation (l985)
(Delaware) (b)
Alliance Capital Management L.P. (1988)
(Delaware) (14.8% limited partnership interest)
EQ Services, Inc. (1992) (Delaware)
EREIM Managers Corp. (1986) (Delaware)
ML/EQ Real Estate Portfolio, L.P.
EML Associates, L.P.
(a) Registered Broker/Dealer (b) Registered Investment
Advisor
C-12
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM A - SUBSIDIARY
OF EQUITABLE HOLDINGS, LLC
HAVING MORE THAN FIVE SUBSIDIARIES
-------------------------------------------------------
EquiSource of New York, Inc. (formerly Traditional Equinet Business Corporation
of New York) has the following subsidiaries that are brokerage companies to
make available to Equitable Agents within each state traditional (non-equity)
products and services not manufactured by Equitable:
EquiSource of Alabama, Inc. (1986) (Alabama)
EquiSource of Arizona, Inc. (1986) (Arizona)
EquiSource of Arkansas, Inc. (1987) (Arkansas)
EquiSource Insurance Agency of California, Inc. (1987) (California)
EquiSource of Colorado, Inc. (1986) (Colorado)
EquiSource of Delaware, Inc. (1986) (Delaware)
EquiSource of Hawaii, Inc. (1987) (Hawaii)
EquiSource of Maine, Inc. (1987) (Maine)
EquiSource Insurance Agency of Massachusetts, Inc. (1988)
(Massachusetts)
EquiSource of Montana, Inc. (1986) (Montana)
EquiSource of Nevada, Inc. (1986) (Nevada)
EquiSource of New Mexico, Inc. (1987) (New Mexico)
EquiSource of Pennsylvania, Inc. (1986) (Pennsylvania)
EquiSource of Puerto Rico, Inc. (1997) (Puerto Rico)
EquiSource Insurance Agency of Utah, Inc. (1986) (Utah)
EquiSource of Washington, Inc. (1987) (Washington)
EquiSource of Wyoming, Inc. (1986) (Wyoming)
C-13
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM B - INVESTMENT SUBSIDIARIES
HAVING MORE THAN FIVE SUBSIDIARIES
------------------------------------
Donaldson, Lufkin & Jenrette, Inc. has the following subsidiaries, and
approximately 150 other subsidiaries, most of which are special purpose
subsidiaries (the number fluctuates according to business needs):
Donaldson, Lufkin & Jenrette, Securities Corporation (1985)
(Delaware) (a) (b)
Wood, Struthers & Winthrop Management Corp. (1985)
(Delaware) (b)
Autranet, Inc. (1985) (Delaware) (a)
DLJ Real Estate, Inc.
DLJ Capital Corporation (b)
DLJ Mortgage Capital, Inc. (1988) (Delaware)
Alliance Capital Management Corporation (as general partner) (b) has the
following subsidiaries:
Alliance Capital Management L.P. (1988) (Delaware) (b)
Alliance Capital Management Corporation of Delaware, Inc.
(Delaware)
Alliance Fund Services, Inc. (Delaware) (a)
Alliance Fund Distributors, Inc. (Delaware) (a)
Alliance Capital Oceanic Corp. (Delaware)
Alliance Capital Management Australia Pty. Ltd.
(Australia)
Meiji - Alliance Capital Corp. (Delaware) (50%)
Alliance Capital (Luxembourg) S.A. (99.98%)
Alliance Eastern Europe Inc. (Delaware)
Alliance Barra Research Institute, Inc. (Delaware)
(50%)
Alliance Capital Management Canada, Inc. (Canada)
(99.99%)
Alliance Capital Management (Brazil) Llda
Alliance Capital Global Derivatives Corp. (Delaware)
Alliance International Fund Services S.A.
(Luxembourg)
Alliance Capital Management (India) Ltd. (Delaware)
Alliance Capital Mauritius Ltd.
Alliance Corporate Finance Group, Incorporated
(Delaware)
Equitable Capital Diversified Holdings, L.P. I
Equitable Capital Diversified Holdings, L.P. II
Curisitor Alliance L.L.C. (Delaware)
Curisitor Holdings Limited (UK)
Alliance Capital Management (Japan), Inc.
Alliance Capital Management (Asia) Ltd.
Alliance Capital Management (Turkey), Ltd.
Cursitor Alliance Management Limited (UK)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-14
<PAGE>
AXA GROUP CHART
The information listed below is dated as of January 1, 1999; percentages
shown represent voting power. The name of the owner is noted when AXA
indirectly controls the company.
AXA INSURANCE AND REINSURANCE BUSINESS HOLDING
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Assurances IARD France 100% by AXA France Assurance
AXA Assurances Vie France 88.1% by AXA France Assurance
and 11.9% by AXA Collectives
AXA Courtage IARD France 100% by AXA France Assurance
and AXA Global Risks
AXA Conseil Vie France 100% by AXA France Assurance
AXA Conseil IARD France 100% by AXA France Assurance
AXA Direct France 100% by AXA
Direct Assurances IARD France 100% by AXA Direct
Direct Assurances Vie France 100% by AXA Direct
Tellit Vie Germany 100% by AKA-CKAG
Axiva France 100% by AXA France Assurance
and AXA Conseil Vie
Juridica France 100% by AXA France Assurance
AXA Assistance France France 100% by AXA Assistance SA
AXA Collectives France AXA France Assurance, AXA
Assurances IARD and AXA
Courtage IARD Mutuelle
Societe Beaujon France 100% by AXA
Lor Finance France 99.3% by AXA
Jour Finance France 100% by AXA Conseil and
by AXA Assurances IARD
Financiere 45 France 99.8% by AXA
Mofipar France 99.9% by AXA
NSM Vie France 40.1% by AXA France Assurance
Saint Georges Re France 100% by France Assurance
AXA Global Risks France 100% owned by AXA France
Assurance, AXA Courtage
Assurance Mutuelle, and AXA
Assurances IARD Mutuelle
Argovie France 94% by Axiva
AXA Assistance SA France 76.8% by AXA and 23.2% by AXA
France Assurance
S.P.S. Reassurance France 69.9% by AXA Reassurance
AXA Participations France 50% by AXA, 25% by AXA Global
Risks and 25% by AXA Courtage
IARD
Colisee Excellence France 100% by Financiere Mermoz
Financiere Mermoz France 100% by AXA
C-15
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Assistance SA France 76.8% by AXA and 23.2% by AXA
France Assurance
S.P.S. Reassurance France 69.9% by AXA Reassurance
AXA Participations France 50% by AXA, 25% by AXA Global
Risks and 25% by AXA Courtage
IARD
Colisee Excellence France 100% by Financiere Mermoz
Financiere Mermoz France 100% by AXA
AXA France Assurance France 100% by AXA
Thema Vie France 99.6% by Axiva
AXA-Colonia Konzern AG (AXA-
CKAG) Germany 39.7% by Vinci BV, 25.6% by
Kolnische Verwaltungs and
9.4% by AXA
Finaxa Belgium Belgium 100% by AXA
AXA Belgium Belgium 86.1% by Royale Belge and 13.9%
by Parcolvi
De Kortrijske Verzekering Belgium 99.8% by AXA Belgium
Juris Belgium 100% owned by AXA Belgium
Royale Belge Belgium 51.2% by AXA Holdings Belgium,
44.5% by AXA and 3.2% by AKA
Global Risks
Royale Belge 1994 Belgium 97.8% by Royale Belge and 2%
by UAB
UAB Belgium 100% by Royale Belge
Ardenne Prevoyante Belgium 99.4% by Royale Belge
GB Lex Belgium 55% by Royale Belge, 25% by
Royale Belge 1994, 10% by
Juridica and 10% by AXA
Conseil IARD
Royale Belge Re Belgium 100% by Royale Belge
Parcolvi Belgium 100% by Vinci Belgium Holding
BV
Vinci Belgium Belgium 99.5% by Vinci BV
Finaxa Luxembourg Luxembourg 100%
AXA Assurance IARD Luxembourg Luxembourg 100% by AXA Holding Luxembourg
AXA Assurance Vie Luxembourg Luxembourg 100% by AXA Holding Luxembourg
Royale UAP Luxembourg 100% by AXA Holding Luxembourg
Paneurolife Luxembourg 90% by different companies of
the AXA Group
Paneurore Luxembourg 100% by different companies of
the AXA Group
Crealux Luxembourg 100% by Royale Belge
Futur Re Luxembourg 100% by AXA Global Risks
AXA Holding Luxembourg Luxembourg 100% by Royale Belge
AXA Aurora Spain 30% owned by AXA and 40%
by AXA Participations
Reaseguros Aurora Vida SA de Spain 97% owned by Aurora Iberica SA
Seguros y Reaseguros de Seguros y Reaseguros and
1.5% by AXA
Hilo Direct Seguros y Reaseguros Spain 71.4% by AXA Aurora
Ayuda Legal Spain 88% by AXA Aurora Iberica SA de
Seguros y Reaseguros and 12% by
Aurora Vida
AXA Aurora Iberica SA de Spain 99.8% by AXA Aurora
Seguros y Reaseguros
AXA Assicurazioni Italy 83.7% owned by AXA, 12% by
Grupo UAP Italiana, 2.2% by
AXA Conseil Vie and 2.1%
by AXA Collectives
Eurovita Italy 30% owned by AXA Assicurazioni,
19% by AXA Conseil Vie and 19%
by AXA Collectives
Gruppo UAP Italia (GUI) Italy 97% by AXA Participations and
3% by AXA Collectives
UAP Vita Italy 62% by AXA
Allsecures Vita Italy 100% by AXA
AXA Equity & Law Plc U.K. 99.9% by AXA
AXA Equity & Law Life U.K. 100% by Sun Life Holdings Plc
Assurance Society
Sun Life lle de Man U.K. 100% owned by Sun Life
Assurance
AXA Global Risks U.K. 51% owned by AXA Global
Risks (France) and 49% by
AXA Courtage IARD
Sun Life and Provincial U.K. 71.6% by AXA and AXA
Holdings (SLPH) Equity & Law Plc
Sun Life Corporation Plc U.K. 100% by AXA Sun Life Holdings
Plc
Sun Life Assurance Society Plc U.K. 100% by AXA Sun Life Holdings
Plc
AXA Provincial Insurance U.K. 100% by SLPH
English & Scottish U.K. 100% by AXA UK
AXA UK U.K. 100% by AXA
Servco U.K. 100% by AXA Sun Life Holdings
Plc
AXA Sun Life Plc U.K. 100% by AXA Sun Life Holdings
Plc
AXA Leven The Nether- 100% by Nieuw Rotterdam
lands Verzekeringen
AXA Nederland BV The Nether- 55.4% by Royale Belge and 38.9%
lands by Gelderland BV
UNIROBE Groep BV The Nether- 100% by UAP Nieuw Rotterdam
lands Holding
AXA Levensverzekeringen The Nether- 100% by UAP Nieuw Rotterdam
lands Verzekeringen
AXA Schade The Nether- 100% by UAP Nieuw Rotterdam
lands Verzekeringen
Societe Generale d'Assistance The Nether- 100% by AXA Assistance Holding
lands
Gelderland BV The Nether- 100% by Royale Belge
lands
AXA Zorg The Nether- 100% by UAP Nieuw Rotterdam
lands Verzekeringen
Vinci BV The Nether- 100% by AXA
lands
AXA Portugal Companhia de Portugal 96.2% by different companies
Serguros SA of the AXA Group
AXA Portugal Companhia de Portugal 87.6% by AXA Conseil Vie and
Serguros de Vida SA 7.5% by AXA Participations
AXA Compagnie d' Assurances Switzerland 100% by AXA Participations
AXA Compagnie d' Assurances Switzerland 95% by AXA Participations
sur la Vie
AXA Al Amane Assurances Morocco 52% by AXA Participations and
15% by Empargne Croissance
AXA Canada Inc. Canada 100% by AXA
Empargne Croissance Morocco 99.3% by AXA Al Amane
Assurances
Colonia Nordstern Leben Germany 50% by AXA-CKAG and 50% by
Colonia Nordstern Versicherungs
Kolnische Verwaltungs Germany 67.7% by Vinci BV, 23% by AXA
Colonia Konzern AG and 8.8% by
AXA
Sicher Direkt Versicherung Germany 50% by AXA Direct and 50% by
AXA-CKAG
AXA Colonia Krankenversicherung Germany 51% by AXA-CKAG, 39.6% by AXA
Colonia Lebenversicherung and
12% by Deutsche
Arzleversicherung
Colonia Nordstern Versicherungs Germany 100% by AXA-CKAG
C-16
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA non life Insurance Cy. Ltd. Japan 100% by AXA Direct
AXA Life Insurance Japan 100% by AXA
Dongbu AXA Life Korea 50% by AXA
Insurance Co. Ltd.
Sime AXA Berhad Malaysia 30% owned by AXA and
AXA Reassurance
AXA Insurance Investment Singapore 88.7% by AXA and 11.41% by AXA
Holdings Pte Ltd Courtage IARD
AXA Life Insurance Singapore 100% owned by AXA
AXA Insurance Hong Kong 82.5% owned by AXA Investment
Holdings Pte Ltd and 17.5%
by AXA
National Mutual Asia Ltd Hong Kong 53.8% by National Mutual
Holdings, Ltd and 20% by Detura
The Equitable Companies U.S.A. 43% by AXA, Financiere 45
Incorporated 3.2%, Lorfinance 6.4%, AXA
Equity & Law Life Association
Society 4.1% and AXA
Reassurance 2.9% and 0.4% by
Societe Beaujon
The Equitable Life Assurance U.S.A. 100% owned by The Equitable
Society of the United States Companies Incorporated
(ELAS)
National Mutual Holdings Ltd Australia 42.1% by AXA and 8.9% by
AXA Equity & Law Life
Assurance Society
The National Mutual Life Australia 100% owned by National Mutual
Association of Australasia Holdings Ltd
National Mutual International Australia 100% owned by National Mutual
Holdings Ltd
Australian Casualty & Life Ltd Australia 100% owned by National Mutual
Holdings Ltd
National Mutual Health Australia 100% owned by National Mutual
Insurance Pty Ltd Holdings Ltd
Detura Hong Kong 75% by National Mutual Holdings
AXA Insurance Pte Ltd Singapore 100% by AXA Insurance
Investment Holdings Pte Ltd
AXA Reinsurance Asia Pte Ltd Singapore 100% by AXA Reassurance
C-17
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Reassurance France 100% owned by AXA, AXA
Assurances IARD and AXA Global
Risks
AXA Re Finance France 79% owned by AXA Reassurance
AXA Cessions France 100% by AXA
AXA Reinsurance U.K. Plc U.K. 100% owned by AXA Re U.K.
Holding
AXA Re U.K. Company Limited U.K. 100% owned by AXA Reassurance
AXA Reinsurance Company U.S.A. 100% owned by AXA America
AXA America U.S.A. 100% owned by AXA Reassurance
AXA Gobal Risks US U.S.A. 96.4% by AXA Global Risks and
3.6% by Colonia Nordstern
Versicherungs AG
AXA Re Life Insurance Company U.S.A. 100% owned by AXA America
C.G.R.M. Monaco 100% owned by AXA Reassurance
Nordstern Colonia Osterreich Austria 88.5% by Colonia Nordstern
Versicherungs and 11.5% by
Colonia Nordstern Leben
Royale Belge International Belgium 100% by Royale Belge
Investissement
AXA Holding Belgium Belgium 75% by AXA, 17.7% by AXA Global
Risks and 7.4% by Various
Companies of the Group
Assurances de la Poste Belgium 50% by Royale Belge
Assurances de la Poste Vie Belgium 50% by Royale Belge
AXA Asset Management LTD U.K. 91% by AXA Investment Managers
and 9% by National Mutual
Funds Management
AXA Sun Life Holdings Plc U.K. 100% by SLPH
C-18
<PAGE>
AXA FINANCIAL BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Compagnie Financiere de Paris France 100% AXA and the Mutuelles
(C.F.P.)
AXA Banque France 98.7% owned by Compagnie
Financiere de Paris
AXA Credit France 65% owned by Compagnie
Financiere de Paris
AXA Gestion FCP France 100% owned by AXA Investment
Managers Paris
Sofapi France 100% owned by Compagnie
Financiere de Paris
Soffim Holding France 100% owned by Compagnie
Financiere de Paris
Sofinad France 100% by Compagnie
Financiere de Paris
Banque des Tuileries France 100% by Compagnie
Financiere de Paris
Banque de marches et d'arbitrage France 18.5% by AXA and 8.2% by AXA
Courtage IARD
AXA Investment Managers France 100% by various companies
AXA Investment Managers Paris France 100% owned by AXA Investment
Managers
Colonia Bausbykasse Germany 66.7% by AXA-CKAG and 31.1% by
Colonia Nordstern Leben
Banque IPPA Belgium 99.9% by Royale Belge
Royal Belge Investissement Belgium 100% by Royale Belge
ANHYP Belgium 98.8% by Royale Belge
AXA Sun Life Asset Management U.K. 66.7% owned by SLPH and 33.3%
by AXA Asset Management Ltd.
C-19
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Alliance Capital Management U.S.A. 57.7% held by ELAS
Donaldson Lufkin & Jenrette U.S.A. 70.9% owned by Equitable
Holdings Corp. and ELAS
National Mutual Funds Australia 100% owned by National
Management (Global) Ltd Mutual Holdings Ltd
C-20
<PAGE>
AXA REAL ESTATE BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
S.G.C.I. France 100% by AXA
Transaxim France 100% owned by Compagnie
Parisienne de Participations
Compagnie Parisienne de France 100% owned by Sofinad
Participations (C.P.P.)
Monte Scopeto France 100% owned by Compagnie
Parisienne de Participations
Colisee Jeuneurs France 99.9% by Colisee Suresnes
Colisee Delcasse France 100% by Colisee Suresnes
Colisee Victoire France 99.7% by S.G.C.I.
Colisee Suresnes France 100% by Various Companies and
the Mutuelles
Colisee 21 Matignon France 99.4% by S.G.C.I. and 0.6% by
AXA
C-21
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Colisee Saint Georges France 100% by SGCI
AXA Millesimes France 92.9% owned by AXA and the
Mutuelles
AXA Immobiller France 100% by AXA
C-22
<PAGE>
OTHER AXA BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
C-23
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
NOTES
-----
1. The year of formation or acquisition and state or country of incorporation
of each affiliate is shown.
2. The chart omits certain relatively inactive special purpose real estate
subsidiaries, partnerships, and joint ventures formed to operate or
develop a single real estate property or a group of related properties,
and certain inactive name-holding corporations.
3. All ownership interests on the chart are 100% common stock ownership
except: (a) AXA Financial, Inc.'s 39.7% interest in Donaldson, Lufkin &
Jenrette, Inc. and Equitable Holdings, LLC's 34.4% interest in same; (b) as
noted for certain partnership interests; (c) Equitable Life's ACMC, Inc.'s
and Equitable Capital Management Corporation's limited partnership
interests in Alliance Capital Management L.P.; and (d) as noted for certain
subsidiaries of Alliance Capital Management Corp. of Delaware, Inc.
4. The following entities are not included in this chart because, while they
have an affiliation with The Equitable, their relationship is not the
ongoing equity-based form of control and ownership that is characteristic
of the affiliations on the chart, and, in the case of the first entity, it
is under the direction of at least a majority of "outside" trustees:
EQ Advisors Trust
Separate Accounts
5. This chart was last revised on October 1, 1999.
C-24
<PAGE>
Item 27. Number of Contractowners
Currently, there are no holders of the contracts to be offered.
Item 28. Indemnification
Indemnification of Principal Underwriter
To the extent permitted by law of the State of New York and subject to
all applicable requirements thereof, Equitable Distributors, Inc. has
undertaken to indemnify each of its directors and officers who is made or
threatened to be made a party to any action or proceeding, whether civil or
criminal, by reason of the fact the director or officer, or his or her testator
or intestate, is or was a director or officer of Equitable Distributors, Inc.
Undertaking
Insofar as indemnification for liability arising under the Securities
Act of 1933 ("Act") may be permitted to directors, 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) Equitable Distributors, Inc., an indirect wholly owned subsidiary
of Equitable, is the principal underwriter for Separate Account No. 49. The
principal business address of Equitable Distributors, Inc. is 1290 Avenue of
the Americas, New York, NY 10104.
(b) Set forth below is certain information regarding the directors and
principal officers of Equitable Distributors, Inc. The business address of the
persons whose names are preceded by an asterisk is that of Equitable
Distributors, Inc.
C-25
<PAGE>
NAME AND PRINCIPAL POSITIONS AND OFFICES WITH UNDERWRITER
BUSINESS ADDRESS (EQUITABLE DISTRIBUTORS, INC.)
- ---------------- ----------------------
*Jose S. Suquet Chairman of the Board and Director
James A. Shepherdson, III Co-Chief Executive Officer, Co-President,
660 Newport Center Drive Managing Director, and Director
Suite 1200
Newport Beach, CA 92660
Greg Brakovich Co-Chief Executive Officer, Co-President,
660 Newport Center Drive Managing Director, and Director
Suite 1200
Newport Beach, CA 92660
Edward J. Hayes Director
200 Plaza Drive
Secaucus, NJ 07096-1583
*Charles Wilder Director
Michael Dibbert President, Financial Institution Channel
Alex MacGillwray President, Broker-Dealer Channel
Patrick Muler President, Wirehouse Channel
Van Rubiano President, Life Insurance Division
Hunter Allen Senior Vice President
660 Newport Center Drive
Suite 1200
Newport Beach, CA 92660
Elizabeth Forget Senior Vice President
660 Newport Center Drive
Suite 1200
Newport Beach, CA 92660
Al Haworth Senior Vice President
660 Newport Center Drive
Suite 1200
Newport Beach, CA 92660
Stuart Hutchins Senior Vice President
660 Newport Center Drive
Suite 1200
Newport Beach, CA 92660
Ken Jaffe Senior Vice President
660 Newport Center Drive
Suite 1200
Newport Beach, CA 92660
Michael McDaniel Senior Vice President
660 Newport Center Drive
Suite 1200
Newport Beach, CA 92660
*Patrick O'Shea Vice President and Chief
Financial Officer
*Norman J. Abrams Vice President and Counsel
Debora Buffington Vice President and Chief Compliance
660 Newport Center Drive Officer
Newport Beach, CA 92660
*Ronald R. Quist Vice President and Treasurer
*Linda Galasso Vice President and Secretary
*Francesca Divone Assistant Secretary
(c) The information under "Distribution of the Contracts" in the
Prospectus forming a part of this Registration Statement is incorporated herein
by reference.
Item 30. Location of Accounts and Records
C-26
<PAGE>
The records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and Rules 31a-1 to 31a-3 thereunder are
maintained by Equitable at 1290 Avenue of the Americas, New York, New York
10104, 135 West 50th Street, New York, NY 10020, and 200 Plaza Drive, Secaucus,
NJ 07096. The contract files will be kept at Vantage Computer System, Inc., 301
W. 11th Street, Kansas City, Mo. 64105.
Item 31. Management Services
Not applicable.
Item 32. Undertakings
The Registrant hereby undertakes:
(a) 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) 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
postcard 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) 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.
Equitable represents that the fees and charges deducted under the Certificates
described in this Registration Statement, in the aggregate, in each case, are
reasonable in relation to the services rendered, the expenses to be incurred,
and the risks assumed by Equitable under the respective Certificates. Equitable
bases its representation on its assessment of all of the facts and
circumstances, including such relevant factors as: the nature and extent of such
services, expenses and risks, the need for Equitable to earn a profit, the
degree to which the Certificates include innovative features, and regulatory
standards for the grant of exemptive relief under the Investment Company Act of
1940 used prior to October 1996, including the range of industry practice. This
representation applies to all certificates sold pursuant to this Registration
Statement, including those sold on the terms specifically described in the
prospectuses contained herein, or any variations therein, based on supplements,
endorsements, data pages, or riders to any Certificate or prospectus, or
otherwise.
The Registrant hereby represents that it is relying on the November 28, 1998
no-action letter (Ref. No. IP-6-88) relating to variable annuity contracts
offered as funding vehicles for retirement plans meeting the requirements of
Section 403(b) of the Internal Revenue Code. Registrant further represents that
it will comply with the provisions of paragraphs (1)-(4) of that letter.
C-27
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Registrant has caused this Registration Statement to be signed
on its behalf, in the City and State of New York, on this 4th day of
February, 2000.
SEPARATE ACCOUNT No. 49 OF
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
(Registrant)
By: The Equitable Life Assurance
Society of the United States
(Depositor)
By: /s/ Naomi J. Weinstein
---------------------------------
Naomi J. Weinstein
Vice President,
The Equitable Life Assurance
Society of the United States
C-28
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Depositor, has caused this Registration Statement to be signed
on its behalf, in the City and State of New York, on this 4th day of February,
2000.
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
(Depositor)
By: /s/ Naomi J. Weinstein
---------------------------------
Naomi J. Weinstein
Vice President,
The Equitable Life Assurance
Society of the United States
As required by the Securities Act of 1933, this Registration Statement
has been signed by the following persons in the capacities and on the date
indicated:
PRINCIPAL EXECUTIVE OFFICERS:
*Michael Hegarty President, Chief Operating Officer
and Director
*Edward D. Miller Chairman of the Board, Chief
Executive Officer and Director
PRINCIPAL FINANCIAL OFFICER:
*Stanley B. Tulin Vice Chairman of the Board
Chief Financial Officer and Director
PRINCIPAL ACCOUNTING OFFICER:
*Alvin H. Fenichel Senior Vice President and Controller
February 4, 2000
*DIRECTORS:
Francoise Colloc'h Donald J. Greene George T. Lowy
Henri de Castries John T. Hartley Edward D. Miller
Joseph L. Dionne John H.F. Haskell, Jr. Didier Pineau-Valencienne
Denis Duverne Michael Hegarty George J. Sella, Jr.
Jean-Rene Fourtou Mary R. (Nina) Henderson Peter J. Tobin
Norman C. Francis W. Edwin Jarmain Stanley B. Tulin
Dave H. Williams
*By: /s/Naomi J. Weinstein
------------------------
Naomi J. Weinstein
Attorney-in-Fact
February 4, 2000
C-29
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. TAG VALUE
- ----------- ---------
4(g) Form of data pages EX-99.4g
9. Opinion and consent of Dodie Kent, Esq. EX-99.9
10(c) Power of Attorney EX-99.10c
C-30
EQUITABLE ACCUMULATOR [NAV] (IRA)
DATA
PART A -- THIS PART LISTS YOUR PERSONAL DATA.
OWNER: [JOHN DOE] [Owner must be the Annuitant]
ANNUITANT: [JOHN DOE] Age: [60] Sex: [Male]
CONTRACT NUMBER: [00000]
ENDORSEMENTS ATTACHED: Endorsement Applicable to [IRA, Roth IRA]
Contracts
Endorsement Applicable to Market Value Adjustment
Terms
Rider to Endorsement Applicable to Market Value
Adjustment Terms
ISSUE DATE: [October 1, 1999]
CONTRACT DATE: [October 1, 1999]
ANNUITY COMMENCEMENT DATE: [August 22, 2027]
[APPLICABLE FOR ANNUITANT ISSUE AGE 20 THROUGH 83 FOR ROLLOVER
TRADITIONAL IRA, CONVERSION ROTH IRA AND FLEXIBLE PREMIUM ROTH IRA]
[APPLICABLE FOR ANNUITANT ISSUE AGE 20 THROUGH 70 FOR FLEXIBLE PREMIUM
TRADITIONAL IRA]
THE MAXIMUM MATURITY AGE IS AGE [90] -- SEE SECTION 7.03.
The Annuity Commencement Date may not be later than the
Processing Date which follows your [90th] birthday.
[APPLICABLE FOR TRADITIONAL IRA CONTRACTS]
However, if you choose a date later than age 70 1/2, distribution of
at least the minimum payments required must commence by April 1 of the
calendar year following the calendar year in which you attain age
70 1/2 (see item 2 of the Endorsement Applicable to IRA Contracts).
GUARANTEED BENEFITS: Guaranteed Minimum Death Benefit
BENEFICIARY: [JANE DOE]
No. 94ICIA/B Data page 1 [(NAV)]
<PAGE>
DATA PAGES (CONT'D)
PART B -- THIS PART DESCRIBES CERTAIN PROVISIONS OF YOUR CONTRACT.
INITIAL CONTRIBUTION RECEIVED (SEE SECTION 3.02): [$25,000.00]
INVESTMENT OPTIONS AVAILABLE (SEE PART II); YOUR ALLOCATION IS ALSO SHOWN.
INVESTMENT OPTIONS ALLOCATION (SEE SECTION 3.01)
- ------------------ -----------------------------
o [Alliance Aggressive Stock Fund
o Alliance Common Stock Fund [$15,000.00]
o Alliance High Yield Fund
o Alliance Money Market Fund [$2,500.00]
o Alliance Small Cap Growth Fund
o BT Small Company Index Fund
o BT Equity 500 Index Fund
o BT International Equity Index Fund
o Capital Guardian International Fund [$2,500.00]
o Capital Guardian Research Fund
o Capital Guardian U.S. Equity Fund
o EQ/Alliance Premier Growth Fund
o EQ/Putnam Growth & Income Value Fund [$2,500.00]
o EQ/Putnam International Equity Fund
o EQ/Putnam Investors Growth Fund
o JPM Core Bond Fund
o Lazard Large Cap Value Fund
o Lazard Small Cap Value Fund
o MFS Emerging Growth Companies Fund
o MFS Growth with Income Fund
o MFS Research Fund [$2,500.00]
o Morgan Stanley Emerging Markets Equity Fund]
o GUARANTEE PERIODS [(CLASS I)]
EXPIRATION DATE AND GUARANTEED RATE
[February 15, 2001
February 15, 2002
February 15, 2003
February 15, 2004
February 15, 2005
February 15, 2006
February 15, 2007
February 15, 2008
February 15, 2009
February 15, 2010]
----------------------
TOTAL: [$25,000.00]
Investment Options shown are Investment Funds of our Separate Account No. 49 and
Guarantee Periods shown are in the Guaranteed Period Account. See Endorsement
Applicable to Market Value Adjustment Terms.
No. 94ICIA/B Data page 2 [(NAV)]
<PAGE>
DATA PAGES (CONT'D)
BUSINESS DAY (SEE SECTION 1.05): A Business Day for this Contract will mean
generally any day on which the New York Stock Exchange is open for trading.
PROCESSING DATES (SEE SECTION 1.18): A Processing Date is each Contract Date
anniversary.
AVAILABILITY OF INVESTMENT OPTIONS (SEE SECTION 2.03): (See Data pages, Part C;
Allocation Restrictions)
ALLOCATION OF CONTRIBUTIONS (SEE SECTION 3.01): Except as indicated below, your
initial and any subsequent Contributions are allocated according to your
instructions.
If you have elected Principal Assurance a portion of your initial Contribution
is allocated by us to a Guarantee Period you have selected. The remaining
portion of your initial Contribution is allocated to the Investment Funds
according to your instructions. Any subsequent Contributions will be allocated
according to your instructions. (See Data pages, Part C; Allocation
Restrictions)
CONTRIBUTION LIMITS (SEE SECTION 3.02):
[THE FOLLOWING PARAGRAPH WILL BE INCLUDED FOR THE TRADITIONAL IRA MARKET:]
We will only accept initial Contributions of at least [$25,000] in the form
of either a rollover Contribution or a direct custodian-to-custodian
transfer from other traditional individual retirement arrangements.
Subsequent Contributions may be made in an amount of at least [$1,000].
Subsequent Contributions may be "regular" IRA Contributions (limited to a
maximum of [$2,000] a year), rollover Contributions or direct transfers.
Rollover Contributions and direct transfers are not subject to the [$2,000]
annual limit. "Regular" IRA Contributions may not be made for the taxable
year in which you attain age [70 1/2] and thereafter. Rollover and direct
transfer Contributions may be made at any time until you attain age [84]*.
However, any amount contributed after you attain age [70 1/2] must be net
of your minimum distribution for the year in which the rollover or direct
transfer Contribution is made (see item 2 Annuity Commencement Date in
Endorsement Applicable to IRA Certificates).
[FLEXIBLE PREMIUM TRADITIONAL IRA CERTIFICATES WILL REFLECT THE
FOLLOWING:]
We will only accept an initial Contribution of at least [$2,000] in
the form of a: (i) "Regular" (deductible or non-deductible) IRA
Contribution; (ii) rollover Contribution, or (iii) direct
custodian-to-custodian transfer from other traditional individual
retirement arrangements. Rollover Contributions and
custodian-to-custodian transfers must be derived from "regular" IRA
Contributions. Subsequent Contributions may be made in an amount of at
least [$50]. Subsequent Contributions may be "regular" IRA
Contributions (limited to a maximum of [$2,000] a year), rollover
Contributions or direct transfers. Rollover Contributions and direct
transfers are not subject to the [$2,000] annual limit. "Regular" IRA
Contributions may not be made for the taxable year in which you attain
age [70 1/2] and thereafter. Rollover and direct transfer
Contributions may be made at any time until you attain age [71].
However, any amount contributed after you attain age [70 1/2] must be
net of your minimum distribution for the year in
No. 94ICIA/B Data page 3 [(NAV)]
<PAGE>
DATA PAGES (CONT'D)
which the rollover or direct transfer Contribution is made (see item 2
Annuity Commencement Date in Endorsement Applicable to IRA
Certificates).
[THE FOLLOWING PARAGRAPH WILL BE INCLUDED FOR THE ROTH IRA MARKET:]
We will only accept initial Contributions of at least [$25,000] in the form
of either a rollover Contribution from Traditional IRAs, or Roth IRAs, or
direct custodian-to-custodian transfers from other Roth IRAs. Subsequent
Contributions may be made in an amount of at least [$1,000]. We will not
accept "regular" IRA Contributions to Roth IRAs. Rollover Contributions and
direct custodian-to-custodian transfers can be made any time until you
attain age [84]*.
[FLEXIBLE PREMIUM ROTH IRA CERTIFICATES WILL REFLECT THE FOLLOWING:]
We will only accept an initial Contribution of at least [$2,000] in
the form of either a (i) standard Roth IRA Contribution; (ii) rollover
Contribution from Traditional IRAs, or Roth IRAs, or (iii) direct
custodian-to-custodian transfers from other Roth IRAs. Subsequent
Contributions may be made in an amount of at least [$50]. We will not
accept "regular" IRA Contributions to Roth IRAs. Rollover
Contributions and direct custodian-to-custodian transfers can be made
any time until you attain age [84]*.
We may refuse to accept any Contribution if the sum of all Contributions under
your Contract would then total more than $1,500,000. We reserve the right to
limit aggregate Contributions made after the first Contract Year to 150% of
first year Contributions. We may also refuse to accept any Contribution if the
sum of all Contributions under all Equitable Life annuity accumulation contracts
that you own would then total more than $2,500,000.
TRANSFER RULES (SEE SECTION 4.02): Transfers among the Investment Options may be
made at any time during the Contract Year. (See Data pages, Part C)
ALLOCATION OF WITHDRAWALS (SEE SECTION 5.01): Lump Sum Withdrawals - You must
provide withdrawal instructions indicating from which Investment Options the
Lump Sum Withdrawal and any withdrawal charge will be taken.
[APPLICABLE FOR TRADITIONAL IRA CONTRACTS]
Minimum Distribution Withdrawals - Unless you specify otherwise, Minimum
Distribution Withdrawals will be withdrawn on a pro rata basis from your
Annuity Account Value in the Investment Funds.
If there is insufficient value or no value in the Investment Funds, any
additional amount of the withdrawal required or the total amount of the
withdrawal, as applicable, will be withdrawn from the Guarantee Periods in order
of the earliest Expiration Date(s) first.
No. 94ICIA/B Data page 4 [(NAV)]
<PAGE>
DATA PAGES (CONT'D)
WITHDRAWAL RESTRICTIONS (SEE SECTION 5.01):
[APPLICABLE FOR TRADITIONAL IRA CONTRACTS]
Minimum Distribution Withdrawals - May be elected in the year in which you
attain age 70 1/2 or at a later date. Minimum Distribution Withdrawals will
be made annually.
[APPLICABLE FOR ROTH IRA CONTRACTS]
None
MINIMUM WITHDRAWAL AMOUNT (SEE SECTION 5.01): [Lump Sum Withdrawals minimum -
$1,000; Systematic Withdrawals minimum - $250.]
[APPLICABLE FOR TRADITIONAL IRA CONTRACTS]
Minimum Distribution Withdrawals minimum - [$250.]
MINIMUM AMOUNT OF ANNUITY ACCOUNT VALUE AFTER A WITHDRAWAL (SEE SECTION 5.02):
Requests for a withdrawal must be for either (a) 90% or less of the Cash Value
or (b) 100% of the Cash Value (surrender of the Certificate).
We will NOT exercise our rights, described in Sections 5.02(b) and 5.02(c), to
terminate the Certificate.
DEATH BENEFIT AMOUNT (SEE SECTION 6.01):
The death benefit is equal to the Annuity Account Value or, if greater, the
Guaranteed Minimum Death Benefit defined below.
Guaranteed Minimum Death Benefit
The Annuity Account Value or, if greater, the Guaranteed Minimum Death Benefit.
The Guaranteed Minimum Death Benefit is the sum of all Contributions made, less
(a) any tax charge that applies and
(b) the sum of all prior withdrawals and associated withdrawal charges, if
any.
NORMAL FORM OF ANNUITY (SEE SECTION 7.04): [Life Annuity 10 Year Period Certain]
ANNUITIZATION AGE LENGTH OF PERIOD CERTAIN
----------------- ------------------------
[Up to age 79 10
80 through 81 9
82 through 83 8
84 through 86 7
87 through 89 6
90 5]
No. 94ICIA/B Data page 5 [(NAV)]
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DATA PAGES (CONT'D)
AMOUNT OF ANNUITY BENEFIT (SEE SECTION 7.05): The amount applied to provide the
Annuity Benefit will be (1) the Annuity Account Value for any life annuity form
or (2) the Cash Value for any period certain only annuity form except that if
the period certain is more than five years the amount applied will be no less
than 95% of the Annuity Account Value.
INTEREST RATE TO BE APPLIED IN ADJUSTING FOR MISSTATEMENT OF AGE OR SEX (SEE
SECTION 7.06): 6% per year
MINIMUM AMOUNT TO BE APPLIED TO AN ANNUITY (SEE SECTION 7.06): $2,000, as well
as minimum of $20 for initial monthly annuity payment.
WITHDRAWAL CHARGES (SEE SECTION 8.01): None
CHARGES DEDUCTED FROM ANNUITY ACCOUNT VALUE (SEE SECTION 8.02):
[THE FOLLOWING PARAGRAPH WILL BE INCLUDED FOR FLEXIBLE PREMIUM IRAS (BOTH
TRADITIONAL AND ROTH)]
[Annual Administrative Charge: We will deduct a charge if your Annuity
Account Value on each Contract Date anniversary before the deduction of any
other charges is less than [$25,000.] During the first two Contract Years
the charge is equal to the lesser of 2% of your account value or [$30].
Thereafter, the charge is [$30] for each Contract Year. If your Annuity
Account Value on the Contract Date anniversary is [$25,000] or more, the
charge will equal zero.]
Charges for State Premium and Other Applicable Taxes: A charge for applicable
taxes, such as state or local premium taxes generally will be deducted from the
amount applied to provide an Annuity Benefit under Section 7.02. In certain
states, however, we may deduct the charge from Contributions rather than at the
Annuity Commencement Date.
The above charges will be deducted from the Annuity Account Value in the
Investment Funds on a pro rata basis. If there is insufficient value in the
Investment Funds, all or a portion of the charge will be deducted from the
Annuity Account Value with respect to the Guarantee Periods in order of the
earliest Expiration Date(s) first.
NUMBER OF FREE TRANSFERS (SEE SECTION 8.03): Unlimited
DAILY SEPARATE ACCOUNT CHARGES (SEE SECTION 8.04):
[Mortality and Expense Risks and Administration Charge: Annual rate not to
exceed 0.50% (equivalent to a daily rate of 0.0013698%).]
No. 94ICIA/B Data page 6 [(NAV)]
<PAGE>
DATA PAGES (CONT'D)
PART C -- THIS PART LISTS THE TERMS WHICH APPLY TO THE ENDORSEMENT
APPLICABLE TO MARKET VALUE ADJUSTMENT TERMS (MVA ENDORSEMENT).
ALLOCATION RESTRICTIONS (SEE SECTION 3.01): If you are age 76 or older,
allocations may be made only to Guarantee Periods with maturities of five years
or less; however, in no event may allocations be made to Guarantee Periods with
maturities beyond the February 15th immediately following the Annuity
Commencement Date.
TRANSFERS AT EXPIRATION DATE (SEE ITEM 1 OF MVA ENDORSEMENT): If no election is
made with respect to amounts in the Guaranteed Period Account as of the
Expiration Date, such amounts will be transferred into the Guarantee Period with
the earliest Expiration Date.
MARKET VALUE ADJUSTMENT (MVA) ON TRANSFERS AND WITHDRAWALS (SEE ITEM 2 OF MVA
ENDORSEMENT): The MVA (positive or negative) resulting from a withdrawal or
transfer of a portion of the amount in a Guarantee Period will be a percentage
of the MVA that would be applicable upon a withdrawal of all the Annuity Account
Value from a Guarantee Period. This percentage is determined by (i) dividing the
amount of the withdrawal or transfer from the Guarantee Period by (ii) the
Annuity Account Value in such Guarantee Period prior to the withdrawal or
transfer.
TRANSFER RULES (SEE SECTION 4.02): Transfers may not be made to a Guarantee
Period maturing in the current calendar year. Guarantee Periods to which
transfers may be made are limited based on your attained age (see Allocation
Restrictions above).
MVA FORMULA (SEE ITEM 3 OF MVA ENDORSEMENT): The Guaranteed Rate for new
allocations to a Guarantee Period is the rate we have in effect for this purpose
even if new allocations to that Guarantee Period would not be accepted at the
time. This rate will not be less than 3%.
The current rate percentage we use in item (c) of the formula is 0.00%. For
purposes of calculating the MVA only, we reserve the right to add up to 0.25% to
such current rate percentage.
SEPARATE ACCOUNT (SEE ITEM 5 OF MVA ENDORSEMENT): The portion of the assets of
Separate Account No. 46 equal to the reserves and other contract liabilities
will not be chargeable with liabilities which arise out of any other business we
conduct.
No. 94ICIA/B Data page 7 [(NAV)]
The Equitable Life Assurance Society February 4, 2000
of the United States
1290 Avenue of the Americas
New York, NY 10104
Dear Sirs:
This opinion is furnished in connection with the filing by The
Equitable Life Assurance Society of the United States ("Equitable Life") and
Separate Account No. 49 of Equitable Life ("Separate Account No. 49") of the
Form N-4 Registration Statement of Equitable Life and Separate Account No. 49
under the Securities Act of 1933 (File No. 333-79379) and of the Registration
Statement of Separate Account No. 49 under the Investment Company Act of 1940
("1940 Act") included in the same Form N-4. The Registration Statement covers an
indefinite number of units of interest ("Units") in Separate Account No. 49.
The Units are purchased with contributions received under individual
annuity contracts and certificates Equitable Life offers under a group annuity
contract (collectively, the "Certificates"). As described in the prospectus
included in the Form N-4 Registration Statement, the Certificates are designed
to provide for retirement income benefits.
I have examined such corporate records of Equitable Life and provisions
of the New York Insurance Law as are relevant to authorization and issuance of
the Certificates and such other documents and laws as I consider appropriate. On
the basis of such examination, it is my opinion that:
1. Equitable Life is a corporation duly organized and validly existing
under the laws of the State of New York.
2. Separate Account No. 49 was duly established pursuant to the provisions
of New York Insurance Law.
3. The assets of Separate Account No. 49 are owned by Equitable Life;
Equitable Life is not a trustee with respect thereto. Under New York
law, the income, gains and losses, whether or not realized, from assets
allocated to Separate Account No. 49 must be credited to or charged
against such account, without regard to the other income, gains or
losses of Equitable Life.
4. The Certificates provide that the portion of the assets of Separate
Account No. 49 equal to the reserves and other contract liabilities with
respect to Separate Account No. 49 shall not be chargeable with
liabilities arising out of any other business Equitable Life may conduct
and that Equitable Life reserves the right to transfer assets of
Separate Account No. 49 in excess of such reserves and contract
liabilities to the general account of Equitable Life.
5. The Certificates (including any Units credited thereunder) have been
duly authorized and when issued in accordance with applicable regulatory
approvals will represent validly issued and binding obligations of
Equitable Life.
I hereby consent of the use of this opinion as an exhibit to the
Registration Statement.
Very truly yours,
/s/Dodie Kent
-------------
Dodie Kent
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints, Mark A. Hug, James D. Goodwin, Pauline Sherman, Michael F. McNelis,
Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary P. Breen and each
of them (with full power to each of them to act alone), his or her true and
lawful attorney-in-fact and agent, with full power of substitution to each, for
him or her and on his or her behalf and in his or her name, place and stead, to
execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others, and to have full power and authority to do or cause to be done in the
name and on behalf of the undersigned each and every act and thing requisite and
necessary or appropriate with respect thereto to be done in and about the
premises in order to effectuate the same, as fully to all intents and purposes
as the undersigned might or could do in person, hereby ratifying and confirming
all that said attorneys-in-fact and agents, or any of them, may do or cause to
be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
11th day of August, 1999.
/s/ Alvin H. Fenichel
---------------------
Alvin H. Fenichel
59838v2
