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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 2 (File No. 33-52518) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 3 (File No. 811-3217) X
IDS LIFE ACCOUNT F
IDS LIFE ACCOUNT IZ
IDS LIFE ACCOUNT JZ
IDS LIFE ACCOUNT G
IDS LIFE ACCOUNT H
IDS LIFE ACCOUNT N
___________________________________________________________________
(Exact Name of Registrant)
IDS Life Insurance Company
___________________________________________________________________
(Name of Depositor)
IDS Tower 10, Minneapolis, MN 55440-0010
___________________________________________________________________
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-3678
Mary Ellyn Minenko, IDS Tower 10, Minneapolis, MN 55440-0010
___________________________________________________________________
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b) of Rule 486
on (date) pursuant to paragraph (b) of Rule 486
60 days after filing pursuant to paragraph (a) of Rule 486
X on April 29, 1994, pursuant to paragraph (a) of Rule 486
The Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to section
24f-2 of the Investment Company Act of 1940. Registrant's Rule
24f-2 Notice for its most recent fiscal year will be filed on or
about February 25, 1994.
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<TABLE>
<CAPTION>
CROSS REFERENCE SHEET
Cross reference sheet showing location in the prospectus of the information
called for by the items enumerated in Part A and B of Form N-4.
Negative answers omitted from prospectus are so indicated.
PART A PART B
Page Number in
Page Number Statement of
Item No. in Prospectus Item No. Additional Information
<C> <C> <C> <C>
1 3 15 32
2 6-7 16 33
3(a) 9-10 17(a) NA
(b) 7-9 (b) NA
(c) 30*
4(a) 10
(b) 11-12 18(a) NA
(c) 10-11 (b) NA
(c) 39
5(a) 30-31 (d) NA
(b) 12 (e) NA
(c) 12-13 (f) 39
(d) 13
(e) 30 19(a) 39
(f) NA (b) 16-18*
6(a) 16-18 20(a) 39
(b) 17 (b) 39
(c) 18 (c) NA
(d) NA (d) NA
(e) 13
(f) NA 21(a) 34-36
(b) 34-36
7(a) 14
(b) 12,20-21 22 35-37
(c) 13,20-21
(d) 3 23(a) NA
(b) NA
8(a) 25-27
(b) 15
(c) 25-27
(d) 37
(e) 27
(f) 25
9(a) 25
(b) 25
10(a) 14,15-16,18-19
(b) 13
(c) 14,15-16,18-19
(d) NA
11(a) 22-24
(b) 24
(c) 23
(d) 15
(e) 7
12(a) 27-29
(b) 3
(c) NA
13 NA
14 31
*Designates page number in the prospectus, which is hereby incorporated by
reference in this Statement of Additional Information.
</TABLE>
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IDS Life Employee Benefit Annuity
Prospectus
April 29, 1994
The Employee Benefit Annuity is a flexible premium group deferred
fixed/variable annuity contract (the contract) offered by IDS Life
Insurance Company (IDS Life) a subsidiary of IDS Financial
Corporation (IDS). Participation in the contract will be accounted
for separately by the issuance of a certificate showing the
participant's interest under the contract.
The contract is a group deferred annuity in which purchase payments
are accumulated on a fixed and/or variable basis and retirement
benefits are paid to the participant on a fixed or variable basis
or a combination of both. It is available for an employer-
sponsored plan (the plan) and, a salary-reduction plan that meets
the requirements of Section 403(b) of the Code.
IDS Life Accounts F, IZ, JZ, G, H and N
Sold by: IDS Life Insurance Company, IDS Tower 10 Minneapolis, MN
55440-0010 Telephone: 612-671-3131.
THIS PROSPECTUS CONTAINS THE INFORMATION ABOUT THE VARIABLE
ACCOUNTS THAT YOU SHOULD KNOW BEFORE INVESTING. Refer to "The
variable accounts" in this prospectus.
THE PROSPECTUS IS ACCOMPANIED OR PRECEDED BY THE RETIREMENT ANNUITY
MUTUAL FUND PROSPECTUS FOR IDS LIFE AGGRESSIVE GROWTH FUND, IDS
LIFE INTERNATIONAL EQUITY FUND, IDS LIFE CAPITAL RESOURCE FUND, IDS
LIFE MANAGED FUND, INC., IDS LIFE SPECIAL INCOME FUND, INC. AND IDS
LIFE MONEYSHARE FUND, INC. PLEASE KEEP THESE PROSPECTUSES FOR
FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION, OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
IDS LIFE IS NOT A BANK AND THE SECURITIES IT OFFERS ARE NOT
DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY ANY BANK
NOR ARE THEY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
A Statement of Additional Information (SAI) dated April 29, 1994
(incorporated by reference into this prospectus) has been filed
with the Securities and Exchange Commission (SEC), and is available
without charge by contacting IDS Life at the telephone number above
or by completing and sending the order form on the last page of
this prospectus. The table of contents of the SAI is on the last
page of this prospectus.
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Table of Contents
Key Terms.....................................................p.
The Employee Benefit Annuity in brief.........................p.
Expense summary...............................................p.
Condensed financial information...............................p.
Financial statements..........................................p.
Performance information.......................................p.
The variable accounts.........................................p.
The funds.....................................................p.
Aggressive Growth Fund...................................p.
International Equity Fund................................p.
Capital Resource Fund....................................p.
Managed Fund.............................................p.
Special Income Fund......................................p.
Moneyshare Fund..........................................p.
The fixed account.............................................p.
Buying the contract...........................................p.
Setting the retirement date...................................p.
Beneficiary...................................................p.
Two ways to make purchase payments............................p.
Charges.......................................................p.
Contract administrative charge...........................p.
Mortality and expense risk fee...........................p.
Surrender charge.........................................p.
Other information on charges.............................p.
Premium taxes............................................p.
Valuing your investment.......................................p.
Number of units..........................................p.
Accumulation unit value..................................p.
Net investment factor....................................p.
Factors that affect variable account
accumulation units.......................................p.
Making the most of your annuity...............................p.
Automated dollar - cost averaging during the
accumulation period......................................p.
How dollar - cost averaging works........................p.
Transferring money between accounts......................p.
Transfer policies........................................p.
Three ways to request a transfer or a surrender..........p.
Surrendering a certificate....................................p.
Surrender policies.......................................p.
Receiving a payment when a participant requests
a surrender..............................................p.
Special surrender provisions.............................p.
Changing ownership............................................p.
Benefits in case of death.....................................p.
The annuity payout period.....................................p.
Annuity payout plans.....................................p.
Death after annuity payouts begin........................p.
Transfers between accounts after annuity
payouts begin............................................p.
Taxes.........................................................p.
Voting Rights.................................................p.
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About IDS Life................................................p.
Regular and special reports...................................p.
Table of contents of the Statement of
Additional Information........................................p.
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Key terms
These terms can help you understand details about your annuity.
Annuity - A contract purchased from an insurance company that
offers tax-deferred growth of the investment until earnings are
withdrawn, and that can be tailored to meet the specific needs of
the individual during retirement.
Accumulation unit - A measure of the value of each variable account
before annuity payouts begin.
Annuitant - The participant on whose life or life expectancy the
annuity payouts are based.
Annuity payouts - An amount paid at regular intervals under one of
several plans available to a participant and/or any other payee.
This amount may be on a variable or fixed basis or a combination of
both.
Annuity unit - A measure of the value of each variable account used
to calculate the annuity payouts a participant receives.
Beneficiary - The person designated to receive annuity benefits in
case of a participant's death. Each participant may name a
beneficiary in accordance with the applicable provisions of any
plan and the Code.
Certificate - The document delivered to each participant that
evidences the participant's coverage under the contract.
Certificate value - The total value of the certificate before any
applicable surrender charge and any administrative charge have been
deducted.
Certificate year - A period of 12 months, starting on the effective
date of the certificate and on each anniversary of the effective
date.
Close of business - When the New York Stock Exchange (NYSE) closes,
normally 3:00 p.m. Central time.
Code - Internal Revenue Code of 1986, as amended.
Contract owner (owner) - The person or party entitled to ownership
rights stated in the contract and in whose name the contract is
issued.
Fixed account - An account to which a participant may allocate
purchase payments. Amounts allocated to this account earn interest
at rates that are declared periodically by IDS Life.
IDS Life - In this prospectus, "we," "us," "our," and "IDS Life"
refer to IDS Life Insurance Company.
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Mutual funds (funds) - Six IDS Life Retirement Annuity mutual
funds, each with a different investment objective. (See "The
funds.") Purchase payments can be allocated into variable accounts
investing in shares of any or all of these funds.
Participant - The person named in the certificate who is entitled
to exercise all rights and privileges of ownership under the
certificate, except as reserved by the owner. In this prospectus,
"you" and "your" refer to the participant.
Purchase payments - Payments made to IDS Life under the contract by
or on behalf of a participant.
Retirement date - The date when annuity payouts are scheduled to
begin. Participants select this date when they enroll in the
certificates subject to the terms of the plan. It can be changed
in the future.
Surrender charge - A deferred sales charge that may be applied if a
participant surrenders the certificate before the retirement date.
Surrender value - The amount a participant is entitled to receive
if the certificate is surrendered. It is the certificate value
minus any applicable surrender charge and administrative charge.
Valuation date - Any normal business day, Monday through Friday,
that the NYSE is open. The value of each variable account is
calculated at the close of business on each valuation date.
Variable accounts - Six separate accounts to which a participant
may allocate purchase payments; each invests in shares of one
mutual fund. (See "The variable accounts.") The value of your
investment in each variable account changes with the performance of
the particular fund.
The Employee Benefit Annuity in brief
Purpose: The Employee Benefit Annuity is designed to allow you to
build up funds for retirement. This is done by making one or more
investments (purchase payments) that may earn returns that increase
the value of your certificate. Beginning at a specified future
date (the retirement date), the contract and related certificate
provide you with lifetime or other forms of annuity payouts.
Ten-day free look: You may return a certificate to the financial
planner or our Minneapolis office within 10 days after it is
delivered and receive a full refund of the certificate value. No
charges will be deducted. However, you bear the investment risk
from the time of purchase until return of the certificate; the
refund amount may be more or less than the payment made.
(Exception: If the law so requires, all of the purchase payment
will be refunded.)
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Accounts: You may allocate purchase payments among any or all of:
o six variable accounts, each of which invests in mutual funds
with a particular investment objective. The value of each
variable account varies with the performance of the particular
fund. We cannot guarantee that the value at the retirement date
will equal or exceed the total of purchase payments allocated to
the variable accounts. (p.)
o one fixed account, which earns interest at rates that are
adjusted periodically by IDS Life. (p.)
Buying the contract: An IDS personal financial planner will help
the owner complete and submit an application for a contract and
help you complete and submit an enrollment form for the
certificate. Applications and enrollment forms are subject to
acceptance at our Minneapolis office. The maximum amount of
purchase payments is determined by any restrictions imposed by the
plan and the Code.
o Minimum purchase payment - $2,000 ($1,000 for qualified
annuities) unless you pay in installments by means of a bank
authorization or under a group billing arrangement such as a
payroll deduction.
o Minimum installment payment - $25.
o Maximum first-year payment(s) - $50,000 to $1,000,000 depending
on your age.
o Maximum payment for each subsequent year - $50,000. (p.)
Transfers: You may redistribute money among accounts without charge
at any time until annuity payouts begin, and once per year
thereafter. You may establish automated transfers among the fixed
and variable account(s), subject to certain restrictions. (p.)
Surrenders: You may surrender all or part of your certificate
value at any time before the retirement date subject to certain
restrictions imposed by the Code and any plan. Surrenders may be
subject to charges and tax penalties and may have other tax
consequences. (p.)
Changing ownership: Restrictions apply concerning change of
ownership of rights under a contract or certificate. (p.)
Payment in case of death: If the participant dies before annuity
payouts begin, we will pay the beneficiary an amount at least equal
to the certificate value. (p.)
Annuity payouts: The certificate value of your investment can be
applied to an annuity payout plan that begins on your retirement
date. You may choose from a variety of plans to make sure that
payouts continue as long as they are needed. Payouts may be made
on a fixed or variable basis, or both. Total monthly payouts
include amounts from each variable account and the fixed account.
(p.)
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Taxes: Generally your certificate value grows tax deferred until
you surrender it or begin to receive payouts. (Under certain
circumstances, IRS penalty taxes may apply.) Even if you direct
payouts to someone else, you will still be taxed on the
distribution. Certain state and local governments impose premium
taxes. (p.)
Charges: Your certificate is subject to an annual administrative
charge of $30. We charge the variable accounts a mortality and
expense risk fee of 1% of average daily net assets on an annual
basis.
Expense summary
The purpose of this summary is to help the owner and participant
understand the various costs and expenses associated with the
contract and related certificates.
There is no sales charge when purchasing the contract or
certificate. All direct and indirect costs for the variable
accounts and underlying mutual funds are shown below. Some
expenses may vary as explained under "Certificate charges."
Direct charges. These are deducted directly from the certificate
value. They include:
o Surrender charge - A surrender charge applies to surrenders
within the first 11 certificate years. The surrender charge is
8% of the amount surrendered in the first through fourth
certificate years, and then declines by 1% per year from 7% in
the 5th certificate year to 1% in the 11th certificate year.
The surrender charge is further limited so that it will never
exceed 8.5% of aggregate purchase payments made to the
certificate.
o Annual administrative charge - $30.
Indirect charges. The variable account pays these expenses out of
its assets. They are reflected in the variable account's daily
accumulation unit value and are not charged directly to the
account. They include:
o Mortality and expense risk fee - 1% per year, deducted from the
variable account as a percentage of the average daily net assets
of the underlying fund.
o Operating expenses of underlying mutual funds - management fees
and other expenses deducted as a percentage of average net
assets as follows: *
<TABLE>
<CAPTION>
Aggressive International Capital Special
Growth Equity Resource Managed Income Moneyshare
<S> <C> <C> <C> <C> <C> <C>
Management fees .__% .__% .__% .__% .__% .__%
Other expenses .__ .__ .__ .__ .__ .__
Total** .__% .__% .__% .__% .__% .__%
/TABLE
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* Premium taxes imposed by some state and local governments are not
reflected in this table.
**Annualized operating expenses of underlying mutual funds at Dec.
31, 1993.
Example*
As a participant, you would pay the following expenses on a $1,000
investment, assuming 5% annual return and surrender at the end of
each time period:
1 year $_____ $_____ $_____ $_____ $_____ $_____
3 years _____ _____ _____ _____ _____ _____
5 years _____ _____ _____ _____ _____ _____
10 years _____ _____ _____ _____ _____ _____
You would pay the following expenses on the same investment
assuming no surrender:
1 year $_____ $_____ $_____ $_____ $_____ $_____
3 years _____ _____ _____ _____ _____ _____
5 years _____ _____ _____ _____ _____ _____
10 years _____ _____ _____ _____ _____ _____
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
* In this example, the $__ annual administrative charge is
approximated as a .___% charge based on IDS Life's average
certificate size.
Condensed financial information
(unaudited)
The following tables give per-unit information about the financial
history of each variable account.
Financial statements
The SAI dated April 29, 1994, contains:
o complete audited financial statements of the variable accounts
including:
- statements of net assets as of Dec. 31, 1993;
- statements of operations for the year ended Dec. 31, 1993;
and
- statements of changes in net assets for the years ended
Dec. 31, 1993 and Dec. 31, 1992 (for Accounts IZ and
JZ, the period from Jan. 13, 1992 when they commenced
operations, to Dec. 31, 1992).
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o complete audited financial statements for IDS Life including:
- consolidated balance sheets as of Dec. 31, 1993 and Dec.
31, 1992; and
- related consolidated statements of income and cash flows
for each of three years in the period ended Dec. 31, 1993.
Performance information
Performance information for the variable accounts may appear from
time to time in advertisements or sales literature. In all cases,
such information reflects the performance of a hypothetical
investment in a particular account during a particular time period.
Calculations are performed as follows:
Simple yield - Account H (investing in Moneyshare Fund): Income
over a given seven-day period (not counting any change in the
capital value of the investment) is annualized (multiplied by 52)
by assuming that the same income is received for 52 weeks. This
annual income is then stated as an annual percentage return on the
investment.
Compound yield - Account H: Calculated like simple yield, except
that, when annualized, the income is assumed to be reinvested.
Compounding of reinvested returns increases the yield as compared
to a simple yield.
Yield - all other accounts: Net investment income (income less
expenses) per accumulation unit during a given 30-day period is
divided by the value of the unit on the last day of the period.
The result is converted to an annual percentage.
Average annual total return: Expressed as an average annual
compounded rate of return of a hypothetical investment over a
period of one, five and ten years (or up to the life of the account
if it is less than ten years old). This figure reflects deduction
of all applicable charges, including the administrative charge,
mortality and expense risk fee and surrender charge, assuming a
surrender at the end of the illustrated period. Optional total
return quotations may be made that do not reflect a surrender
charge deduction (assuming no surrender).
Aggregate total return: Represents the cumulative change in value
of an investment for a given period (reflecting change in an
account's accumulation unit value). The calculation assumes
reinvestment of investment earnings. Aggregate total return may be
shown by means of schedules, charts or graphs.
Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of
the fund in which the account invests, and the market conditions
during the given time period. Such information is not intended to
indicate future performance. Because advertised yields and total
return figures include all charges attributable to the
certificates, which has the effect of decreasing advertised
performance, account performance should not be compared to that of
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mutual funds that sell their shares directly to the public. (See
the SAI for a further description of methods used to determine
yield and total return for the accounts.)
If you would like additional information about actual performance,
contact your financial planner.
The variable accounts
Purchase payments can be allocated to any or all of the variable
accounts that invest in shares of the following funds:
IDS Life Account Established
Aggressive Growth Fund JZ Sept. 20, 1991
International Equity Fund IZ Sept. 20, 1991
Capital Resource Fund F May 13, 1981
Managed Fund N April 12, 1985
Special Income Fund G May 13, 1981
Moneyshare Fund H May 13, 1981
Each variable account meets the definition of a separate account
under federal securities laws. Income, capital gains and capital
losses of each account are credited or charged to that account
alone. No variable account will be charged with liabilities of any
other account or of our general business.
All variable accounts were established under Minnesota law and are
registered together as a single unit investment trust under the
Investment Company Act of 1940 (the 1940 Act). This registration
does not involve any supervision of our management or investment
practices and policies by the SEC.
The funds
Aggressive Growth Fund
Objective: capital appreciation. Invests primarily in common stock
of small and medium-size companies. The fund also may invest in
warrants or debt securities or in large well-established companies
when the portfolio manager believes such investments offer the best
opportunity for capital appreciation.
International Equity Fund
Objective: capital appreciation. Invests primarily in common stock
of foreign issuers and foreign securities convertible into common
stock. The fund also may invest in certain international bonds if
the portfolio manager believes they have a greater potential for
capital appreciation than equities.
Capital Resource Fund
Objective: capital appreciation. Invests primarily in U.S. common
stocks listed on national securities exchanges and other securities
convertible into common stock, diversified over many different
companies in a variety of industries.
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Managed Fund
Objective: maximum total investment return. Invests primarily in
U.S. common stocks listed on national securities exchanges,
securities convertible into common stock, warrants, fixed income
securities (primarily high-quality corporate bonds), and
money-market instruments. The fund invests in many different
companies in a variety of industries.
Special Income Fund
Objective: to provide a high level of current income while
conserving the value of the investment for the longest time period.
Invests primarily in high-quality, lower-risk corporate bonds
issued by many different companies in a variety of industries, and
in government bonds.
Moneyshare Fund
Objective: maximum current income consistent with liquidity and
conservation of capital. Invests in high-quality money market
securities with remaining maturities of 13 months or less. The
fund also will maintain a dollar-weighted average portfolio
maturity not exceeding 90 days. The fund attempts to maintain a
constant net asset value of $1 per share.
The Internal Revenue Service (IRS) has issued final regulations
relating to the diversification requirements under section 817(h)
of the Code. Each mutual fund intends to comply with these
requirements.
The U.S. Treasury and the IRS have indicated they may provide
additional guidance concerning investment control-how many variable
accounts may be offered and how many exchanges among variable
accounts may be allowed before the participant is considered to
have investment control and thus is currently taxed on income
earned within variable account assets. We do not know at this time
what the additional guidance will be or when action will be taken.
We reserve the right to modify the contract/certificate, as
necessary, to ensure that the participant will not be subject to
current taxation as the owner of the variable account assets.
We intend to comply with all federal tax laws to ensure that the
contract/certificate continues to qualify as an annuity for federal
income tax purposes. We reserve the right to modify the
contract/certificate as necessary to comply with any new tax laws.
We are the investment adviser for each of the funds. We cannot
guarantee that the funds will meet their investment objectives.
Please read the Retirement Annuity Mutual Fund prospectus for
complete information on investment risks, deductions, expenses and
other facts you should know before investing. It is available by
contacting IDS Life at the address or telephone number on the front
of this publication, or from your financial planner.
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The fixed account
Purchase payments can also be allocated to the fixed account. The
cash value of the fixed account increases as interest is credited
to the account. Purchase payments and transfers to the fixed
account become part of the general account of IDS Life, the
company's main portfolio of investments. Interest is credited
daily and compounded annually. We may change the interest rates
from time to time.
Because of exemptive and exclusionary provisions, interests in the
fixed account have not been registered under the Securities Act of
1933 (1933 Act), nor is the fixed account registered as an
investment company under the 1940 Act. Accordingly, neither the
fixed account nor any interests in it are generally subject to the
provisions of the 1933 or 1940 Acts, and we have been advised that
the staff of the SEC has not reviewed the disclosures in this
prospectus that relate to the fixed account. Disclosures regarding
the fixed account, however, may be subject to certain generally
applicable provisions of the federal securities laws relating to
the accuracy and completeness of statements made in prospectuses.
Buying the contract
An IDS financial planner will help the owner prepare and submit an
application. The financial planner will also help each participant
prepare and submit an enrollment form. These forms will be sent to
our Minneapolis office. Unless otherwise provided in the contract,
the owner has all rights under the contract. Your interest under
the contract, as evidenced by your certificate, is subject to the
terms of the owner's contract and the plan.
When you enroll in the certificate, you can select:
o the account(s) in which you want to invest;
o the date you want to start receiving annuity payouts (the
retirement date); and
o a beneficiary.
The owner selects the frequency with which it will make purchase
payments.
If the application and enrollment forms are complete, we will
process them within two days after we receive them. If the
application is accepted, we will send the owner a contract. If
your enrollment form is accepted, we will send you a certificate.
If we cannot accept an application or enrollment form within five
days, we will decline it and return any payment. We will credit
additional purchase payments to the account(s) at the next close of
business.
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PAGE 15
Setting the retirement date
You will start receiving annuity payouts on the retirement date you
select. This date can be aligned with actual retirement from a
job, or it can be a different future date, depending on your needs
and goals and on certain restrictions. You can also change the
date, provided you send us written instructions at least 30 days
before annuity payouts begin.
To avoid IRS penalty taxes, the retirement date generally must be:
o on or after you reach age 59 1/2; and
o by April 1 of the year following the calendar year when you
reach age 70 1/2.
If you are taking the minimum 403(b) plan distributions as required
by the Code from another tax-qualified investment, or in the form
of partial surrenders under the certificate, retirement payments
can start as late as your 85th birthday or the 10th contract
anniversary.
Certain restrictions on retirement dates apply to participants in
the Texas Optional Retirement Program. (See "Special surrender
provisions".)
Beneficiary
If death benefits become payable before the retirement date, your
named beneficiary will receive all or part of the certificate
value. If there is no named beneficiary, then your estate will be
the beneficiary. (See "Payment in case of death" for more about
beneficiaries.)
How to make purchase payments
Minimum purchase payments
$25 monthly
Installments must total at least $300 per year**
**If no purchase payments have been made on a participant's behalf
for 24 months, and previous payments total $600 or less, we have
the right to pay the participant the total value of the certificate
in a lump sum. This right does not apply to contracts sold to New
Jersey residents.
Minimum lump sum purchase payment
Initial payment: $1,000
Minimum additional purchase payment(s): $50
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PAGE 16
Maximum first - year payment(s):
This maximum is based the participant's age on the effective date
of the certificate.
Up to age 75 $1 million
76 to 85 $500,000
86 to 90 $50,000
Maximum payment for each subsequent year: $50,000**
**These limits apply in total to all IDS Life annuities you own.
We reserve the right to increase maximum limits or reduce age
limits. The plan's limits on annual contribution also apply.
By scheduled payment plan
Your financial planner can help the owner set up an automatic
salary reduction arrangement.
Charges
Administrative charge
This fee is for establishing and maintaining records for each
certificate under the contract. We deduct $30 from the certificate
value at the end of each certificate year.
If a participant surrenders a certificate, the annual charge will
be deducted at the time of surrender. The annual charge cannot be
increased and does not apply after annuity payouts begin.
Mortality and expense risk fee
This fee is to cover the mortality risk and expense risk and is
applied daily to the variable accounts and reflected in the unit
values of the accounts. Annually it totals 1% of their average
daily net assets. Approximately two-thirds of this amount is for
our assumption of mortality risk, and one-third is for our
assumption of expense risk. This fee does not apply to the fixed
account.
Mortality risk arises because of our guarantee to make annuity
payouts according to the terms of the contract and certificates, no
matter how long a specific annuitant lives and no matter how long
the entire group of IDS Life annuitants live. If, as a group, IDS
Life annuitants outlive the life expectancy we have assumed in our
actuarial tables, then we must take money from our general assets
to meet our obligations. If, as a group, IDS Life annuitants do
not live as long as expected, we could profit from the mortality
risk fee.
Expense risk arises because the administrative charge cannot be
increased and may not cover our expenses. Any deficit would have
to be made up from our general assets. We could profit from the
expense risk fee if the annual administrative charge is more than
sufficient to meet expenses.
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PAGE 17
We do not plan to profit from the administrative charge. However,
we do hope to profit from the mortality and expense risk fee. We
may use any profits realized from this fee for any proper corporate
purpose, including, among others, payment of distribution (selling)
expenses. We do not expect that the surrender charge, discussed in
the following paragraphs, will cover sales and distribution
expenses.
Surrender charge
If part or all of a certificate is surrendered within the first 11
certificate years, the following surrender charge applies:
______________________________________________________________
Surrender Charge as
Percent of
Certificate Year Amount Surrendered
1 8%
2 8
3 8
4 8
5 7
6 6
7 5
8 4
9 3
10 2
11 1
12 and later 0
The surrender charge is further limited so that it will never
exceed 8.5% of aggregate purchase payments made to the certificate.
IDS Life reserves the right to reduce or eliminate the surrender
charge.
In the case of a partial surrender, the surrender charge is
deducted from the certificate value remaining after you are paid
the partial surrender amount requested. For example, if you
requested a partial surrender net check amount of $1,000 and the
surrender charge rate were 5%, you would receive the $1,000
requested and the surrender charge amount would be $52.63 for a
total withdrawal from the certificate of $1,052.63.
No surrender charge: There is no surrender charge on amounts
surrendered:
o after the eleventh certificate year;
o due to a participant's retirement under the plan on or after age
55;
o due to the death of the participant; or
o upon settlement of the certificate under an annuity payout plan.
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PAGE 18
Other information on charges
Possible group reductions - In some cases lower sales and
administrative expenses may be incurred due to the size of the
group, the average contribution and the use of group enrollment
procedures. In such cases, we may be able to reduce or eliminate
the contract administrative and surrender charges. However, we
expect this to occur infrequently.
Premium taxes
Certain state and local governments may impose premium taxes. A
charge may be made by us against the certificate value for any
state premium taxes to the extent the taxes are payable.
Valuing your investment
Here is how your accounts are valued:
Fixed account: The amounts allocated to the fixed account are
valued directly in dollars and equal the sum of your purchase
payments, plus interest earned, less any amounts surrendered or
transferred.
Variable accounts: Amounts allocated to the variable accounts are
converted into accumulation units. Each time you make a purchase
payment or transfer amounts into one of the variable accounts, a
certain number of accumulation units are credited to your
certificate for that account. Conversely, each time you take a
partial surrender, transfer amounts out of a variable account, or
are assessed a contract administrative charge, a certain number of
accumulation units are subtracted from your certificate.
The accumulation units are the true measure of investment value in
each account during the accumulation period. They are related to,
but not the same as, the net asset value of the underlying fund.
The dollar value of each accumulation unit can rise or fall daily
depending on the performance of the underlying mutual fund and on
certain fund expenses. Here is how unit values are calculated:
Number of units:
To calculate the number of accumulation units for a particular
account, we divide the investment, after deduction of any premium
taxes, by the current accumulation unit value.
Accumulation unit value:
The current accumulation unit value for each variable account
equals the last value times the account's current net investment
factor.
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PAGE 19
Net investment factor:
o Determined each business day by adding the underlying mutual
fund's current net asset value per share, plus per share amount
of any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the accumulation unit value may increase or decrease.
The investor bears this investment risk in a variable account.
Factors that affect variable account accumulation units
Accumulation units may change in two ways; in number and in value.
Here are the factors that influence those changes:
The number of accumulation units owned may fluctuate due to:
o additional purchase payments allocated to the variable accounts;
o transfers into or out of the account(s);
o partial surrenders;
o surrender charges; and/or
o administrative charges.
Accumulation unit values may fluctuate due to:
o changes in underlying mutual fund(s) net asset value;
o dividends distributed to the variable account(s);
o capital gains or losses of underlying mutual funds;
o mutual fund operating expenses; and/or
o mortality and expense risk fees.
Making the most of your annuity
Automated dollar-cost averaging during the accumulation period
You can use automated transfers to take advantage of dollar-cost
averaging (investing a fixed amount at regular intervals). For
example, you might have a set amount transferred monthly from a
relatively conservative variable account to a more aggressive one,
or to several others.
This systematic approach can help you benefit from fluctuations in
accumulation unit values caused by fluctuations in the market
value(s) of the underlying mutual fund(s). Since you invest the
same amount each period, you automatically acquire more units when
the market value falls, fewer units when it rises. The potential
effect is to lower the average cost per unit and increase the long-
term return. For specific features contact your financial planner.
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PAGE 20
How dollar-cost averaging works
Amount Accumulation Number of units
Month invested unit value purchased
Jan $100 $20 5.00
Feb 100 16 6.25
Mar 100 9 11.11
Apr 100 5 20.00
May 100 7 14.29
June 100 10 10.00
July 100 15 6.67
Aug 100 20 5.00
Sept 100 17 5.88
Oct 100 12 8.33
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more units
when the per unit market price is low
(arrow in table pointing to August) and fewer units when the per
unit market price is high.
You have paid an average price of only $10.81 per unit over the 10
months, while the average market price actually was $13.10.
Dollar-cost averaging does not guarantee that any variable account
will gain in value, nor will it protect against a decline in value
if market prices fall. However, if you can continue to invest
regularly throughout changing market conditions, it can be an
effective strategy to help meet your long term goals.
Transferring money between accounts
You may transfer money from any one account, including the fixed
account, to another before the annuity payouts begin. If we
receive your request before the close of business, we will process
it that day. Requests received after the close of business will be
processed the next business day. There is no charge for transfers.
Before making a transfer, you should consider the risks involved in
switching investments.
We may suspend or modify transfer privileges at any time. Certain
restrictions apply to transfers involving the fixed account. In
addition, any restriction imposed by the plan will apply. (For
information on transfers after annuity payouts begin, see "The
annuity payout period.")
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Transfer policies
o Subject to any restrictions imposed by the plan, you may
transfer certificate values between the variable accounts, or
from the variable account(s) to the fixed account at any time.
However, if a transfer has been made from the fixed account to
the variable account(s), you may not make a transfer from any
variable account back to the fixed account until the next
eligible transfer period as defined in the plan, if any, or
otherwise until the next certificate anniversary.
o You may transfer certificate values from the fixed account to
the variable account(s) once per certificate year, (except for
automated transfers, which can be set up for transfer periods of
your choosing subject to certain minimums.)
o No transfers may be made to or from the fixed account once
annuity payouts begin.
Three ways to request a transfer or surrender
1 By letter
Send your name, account number, Social Security number or Tax
Identification number and signed request for a transfer or
surrender to:
Regular mail:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Express mail:
IDS Life Insurance Company
733 Marquette Avenue
Minneapolis MN 55402
Minimum amount
Mail transfers: $250 and if less, the certificate value
Mail surrenders: $250 and if less, the certificate value
Maximum amount
Mail transfers: None - up to the certificate value
Mail surrenders: None - up to the certificate value
2 By phone
For salary reduction only.
Call between 7 a.m. and 6 p.m. Central time:
1-800-437-0602 (toll free) or
(612) 671-4738 (Minneapolis/St. Paul area)
Minimum amount
Phone transfers: $250 or the entire account balance
Phone surrenders: $100
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PAGE 22
Maximum amount
Phone transfers: None - up to the certificate value
Phone surrenders: $50,000
TTY service for the hearing impaired:
1-800-285-8846 (toll free)
We answer phone requests promptly, but you may experience delays
when the call volume is unusually high. If unable to get through,
you can use the mail procedure as an alternative.
o We will honor any telephone transfer or surrender request
believed to be authentic and will use reasonable procedures to
confirm that they are. This includes asking identifying
questions and tape recording calls. As long as the procedures
are followed, neither IDS Life nor its affiliates will be liable
for any loss resulting from fraudulent requests.
o You may request that telephone surrenders not be authorized from
an account by writing IDS Life.
3 By automated transfers
o Your financial planner can help you set up automated transfers
among your accounts.
You can start or stop this service by written request or other
method acceptable to IDS Life after the service has been in effect
for a period of 12 consecutive months. You must allow 30 days for
IDS Life to change any instructions that are currently in place.
o Automated transfers from the fixed to variable account(s) may
not exceed an amount that, if continued, would deplete the fixed
account within 12 months.
o Automated transfers are subject to all of the contract
provisions and terms, including transfer of certificate values
between accounts.
Minimum amount
Automated transfers: $50
Maximum amount
Automated transfers: None - except for automated.
Surrendering a certificate
Subject to certain restrictions imposed by the Code and any
restrictions imposed by the plan, you may surrender all or part of
your certificate at any time before annuity payouts begin by
sending a written request or calling us. For total surrenders we
will compute the value of the certificate at the close of business
after we receive the request. We may ask you to return the
certificate. You may have to pay surrender charges (see "Surrender
charge") and IRS taxes and penalties (see "Taxes"). No surrenders
may be made after annuity payouts begin.
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PAGE 23
Surrender policies
If you have a balance in more than one account and request a
partial surrender, we will withdraw money from all of your accounts
in the same proportion as your value in each account correlates to
the total certificate value, unless requested otherwise.
Receiving payment when a participant requests a surrender
By regular or express mail:
o Payable to participant.
o Normally mailed to address of record within seven days after
receiving the request. However, we may postpone the payment if:
-the surrender amount includes a purchase payment check that
has not cleared;
-the NYSE is closed, except for normal holiday and weekend
closings;
-trading on the NYSE is restricted, according to SEC rules;
-an emergency, as defined by SEC rules, makes it impractical
to sell securities or value the net assets of the accounts; or
-the SEC permits us to delay payment for the protection of
security holders.
Special surrender provisions
The Code imposes certain restrictions on a participant's right to
receive early distributions attributable to salary reduction
contributions from a Tax Sheltered Annuity (TSA):
o Distributions attributable to salary reduction contributions
made after Dec. 31, 1988, plus the earnings on them, or to
transfers or rollovers of such amounts from other contracts, may
be made from the TSA only if:
-the participant has attained age 59-1/2;
-the participant has become disabled as defined in the Code;
-the participant has separated from the service of the
employer who purchased the contract; or
-the distribution is made to the participant's beneficiary
because of death.
o If you should encounter a financial hardship (within the meaning
of the Code), you may receive a distribution of all certificate
values attributable to salary reduction contributions made after
Dec. 31, 1988, but not the earnings on them.
o Even though a distribution may be permitted under the above
rules, it still may be subject to IRS taxes and penalties. (See
"Taxes.")
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PAGE 24
o The above restrictions on the right to receive a distribution do
not affect the availability of the amount transferred or rolled
over credited to the certificate as of Dec. 31, 1988. The
restrictions do not apply to transfers or exchanges of
certificate values within the annuity, or to another registered
variable annuity contract or investment vehicle available
through the employer.
o The contract and related certificates have a loan provision. The
right to receive a loan from your fixed account continues to
exist and is described in detail in the contract and
certificate. As a participant, you may borrow from the
certificate value allocated to the fixed account.
o For certain types of contributions under a TSA contract to be
excluded from taxable income, the employer must comply with
certain nondiscrimination requirements.
Participation in the Portland Public Schools TSA program: We will
guarantee that the fixed account surrender value will not be less
than the purchase payments paid, less any amounts previously
surrendered, provided:
o all purchase payments under the certificate have been allocated
only to the fixed account; and
o there have been no transfers of fixed account certificate values
to any variable account. If payments are allocated to a
variable account or monies are transferred from the fixed
account to a variable account, the guarantee does not apply.
Participation in the Texas Optional Retirement Program:
Participants of this program cannot receive any distribution before
retirement unless they become totally disabled or end their
employment at a Texas college or university. This restriction
affects a participant's right to:
o surrender all or part of the certificate at any time; and
o move up the retirement date.
If a participant is in the program for only one year, the portion
of the purchase payments made by the state of Texas will be
refunded to the state with no surrender charge. These restrictions
are based on an opinion of the Texas Attorney General interpreting
Texas law.
Changing ownership
The contract and related certificates cannot be sold, assigned,
transferred, discounted or pledged as collateral for a loan or as
security for the performance of an obligation or for any other
purpose to any person other than IDS Life. Your vested rights
under the certificate are nonforfeitable.
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PAGE 25
Benefits in case of death
If you die before annuity payouts begin, we will pay your
beneficiary as follows:
If death occurs before your 75th birthday, the beneficiary receives
the greater of:
o the certificate value; or
o purchase payments made to the certificate, minus any surrenders.
If death occurs on or after your 75th birthday, the beneficiary
receives the certificate value.
If your spouse is sole beneficiary and you die before the
retirement date, your spouse may keep the certificate in force. To
do this your spouse must, within 60 days after we receive proof of
death, give us written instructions to keep the certificate in
force. If you die before reaching age 70 1/2, your spouse may keep
the certificate in force until the date on which you would have
reached age 70 1/2.
Payments: We will pay the beneficiary in a single sum unless you
have given us other written instructions, or the beneficiary may
receive payments under any annuity payout plan available under this
contract if:
o the beneficiary asks us in writing within 60 days after we
receive proof of death;
o payments begin no later than one year after death; and
o the payment period does not extend beyond the beneficiary's life
or life expectancy.
When paying the beneficiary, we will determine the certificate's
value at the next close of business after our death claim
requirements are fulfilled. Interest, if any, will be paid from
the date of death at a rate no less than required by law. We will
mail payment to the beneficiary within seven days after our death
claim requirements are fulfilled. (See "Taxes.")
The annuity payout period
As the participant, you have the right to decide how and to whom
annuity payouts will be made starting at the retirement date. You
may select one of the annuity payout plans outlined below, or we
will mutually agree on other payout arrangements. The amount
available for payouts under the plan you select is the certificate
value on the retirement date. No surrender charges are deducted
under the payout plans listed below.
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PAGE 26
The contract and related certificates allow you to determine
whether payouts are to be made on a fixed or variable basis, or a
combination of fixed and variable. Amounts of fixed and variable
payouts depend on:
o the annuity payout plan you select;
o your age;
o the annuity table in the contract and related certificates;
o the amounts allocated to the account(s) at settlement on the
retirement date.
In addition, for variable payouts only, amounts depend on:
o the investment performance of the account(s) selected.
These payouts will vary from month to month because the performance
of the underlying mutual funds will fluctuate. (In the case of
fixed annuities, payouts remain the same from month to month.)
Annuity payout plans
You may choose any one of these annuity payout plans by giving IDS
Life written instructions at least 30 days before certificate
values are to be used to purchase the payout plan:
o Plan A - Life annuity - no refund: Monthly payouts are made
until the annuitant's death. Payouts end with the last payout
before the annuitant's death; no further payouts will be made.
This means that if the annuitant dies after only one monthly payout
has been made, no more payouts will be made.
o Plan B - Life annuity with five, ten or fifteen years certain:
Monthly payouts are made for a guaranteed payout period of five,
ten or fifteen years that the annuitant elects. This election will
determine the length of the payout period to the beneficiary if the
annuitant should die before the elected period has expired. The
guaranteed payout period is calculated from the retirement date.
If the annuitant outlives the elected guaranteed payout period,
payouts will continue until the annuitant's death.
o Plan C - Life annuity - installment refund: Monthly payouts are
made until the annuitant's death, with our guarantee that payouts
will continue for some period of time. Payouts will be made for at
least the number of months determined by dividing the amount
applied under this option by the first monthly payout, whether or
not the annuitant is living.
o Plan D - Joint and last survivor life annuity - no refund:
Monthly payouts are made to the annuitant and a joint annuitant
while both are living. If either annuitant dies, monthly payouts
continue at the full amount until the death of the surviving
annuitant. Payouts end with the death of the second annuitant.
o Plan E - Payouts for a specified period (available as a fixed
payout only.): Monthly payouts are made for a specific payout
period of 10 to 30 years chosen by the annuitant. Payouts will be
made only for the number of years specified whether the annuitant
is living or not. Depending on the time period selected, it is
foreseeable that an annuitant can outlive the payout period
selected. In addition, a 10% IRS penalty tax could apply under
this payout plan. (See "Taxes".)
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PAGE 27
Restrictions on payout options: Because the certificate was
purchased under the plan, you must select a payout plan that
provides for payouts:
o over the life of the annuitant;
o over the joint lives of the annuitant and a designated
beneficiary;
o for a period not exceeding the life expectancy of the
annuitant; or
o for a period not exceeding the joint life expectancies
of the annuitant and a designated beneficiary.
If we do not receive instructions: You must give us written
instructions for the annuity payouts at least 30 days before your
retirement date. If not, IDS Life will make payouts under Plan B,
with 120 monthly payouts guaranteed, unless this option is contrary
to applicable provisions of the plan or the Code.
If monthly payouts would be less than $20: We will calculate the
amount of monthly payouts at the time the certificate value is used
to provide annuity payouts. If the calculations show that monthly
payouts would be less than $20, IDS Life has the right to pay the
certificate value to the participant in a lump sum.
Death after annuity payouts begin
If the annuitant dies after annuity payouts begin, any amount
payable to the beneficiary will be as provided in the annuity
payout plan in effect.
Transfers between accounts after annuity payouts begin
After the annuity payouts begin, as the annuitant, you may transfer
the value of the annuity from one variable account to another once
each year. You must send IDS Life written instructions to do this.
We will make the transfer at the next close of business after we
receive your instructions.
Taxes
Generally, under current law, in your certificate value is taxable
when you receive a payout or surrender except to the extent that
contributions were made with after-tax dollars. (See detailed
discussion below.) Any portion of the annuity payouts and any
surrenders requested that represent ordinary income are normally
taxable. You will receive a 1099 tax information form for any year
in which a taxable distribution was made.
Annuity payouts: The entire payout generally will be includable as
ordinary income and subject to tax. If you or your employer
invested in the certificate with pre-tax dollars, such amounts are
not considered to be part of your investment in the certificate and
will be taxed when paid to you.
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PAGE 28
Surrenders: Generally, if you surrender part or all of the
certificate before annuity payouts begin, the surrender payment
will be taxed. You also may have to pay a 10% IRS penalty for
surrenders before reaching age 59 1/2. Other penalties may apply
if you surrender the certificate before the plan specifies that you
can receive payouts.
Death benefits to beneficiaries: The death benefit under an
annuity is not tax exempt. Any amount received by the beneficiary
that represents previously deferred earnings within the
certificate, is taxable as ordinary income to the beneficiary in
the year(s) he or she receives the payments.
Penalties: If you receive amounts from the certificate before
reaching age 59 1/2, you may have to pay a 10% IRS penalty on the
amount includable in your ordinary income. However, this penalty
will not apply to any amount received:
o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal
periodic payments, made at least annually, over your life or
life expectancy (or joint lives or life expectancies of you and
your designated beneficiary); or
o after you separate from service after attaining age 55.
Other penalties or exceptions may apply if you surrender your
certificate before your plan specifies that payments can be made.
Mandatory withholding: If you receive directly all or part of the
certificate value, mandatory 20% income tax withholding generally
will be imposed at the time the payout is made. Any withholding
that is done represents a prepayment of tax due for the year and
you would take credit for such amounts on the annual tax return you
file. This mandatory withholding will not be imposed if:
o instead of receiving the distribution check, you elect to have
the distribution rolled over directly to an IRA or another
eligible plan;
o the payment is one in a series of substantially equal periodic
payments, made at least annually, over your life or life
expectancy (or the joint lives or life expectancies of you and
your designated beneficiary) or over a specified period of 10
years or more; or
o the payment is a minimum distribution required under the Code.
Payments made to a surviving spouse instead of being directly
rolled over to an IRA may also be subject to 20% income tax
withholding.
Elective withholding: If the distribution is not subject to
mandatory withholding as described above, your can elect not to
have any withholding occur. To do this you must provide us with a
valid Social Security number or Taxpayer Identification number.
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PAGE 29
If you would like withholding to apply, you can provide us with a
statement of how many exemptions to use in calculating the
withholding.
If the payout is part of an annuity payout plan, the amount of
withholding generally is computed using payroll tables. If the
distribution is any other type of payment, withholding is computed
using 10% of the taxable portion.
Some states also impose withholding requirements similar to the
federal withholding described above. State withholding also may be
imposed on taxable distributions.
Important: Our discussion of federal tax laws is based upon our
understanding of these laws as they are currently interpreted.
Federal tax laws or current interpretations of them may change.
For this reason and because tax consequences are complex and highly
individual and cannot always be anticipated, a tax adviser should
be consulted if there are any questions about taxation of the
contract and/or related certificates.
Voting rights
An owner or participant with investments in the variable account(s)
may vote on important mutual fund policies until annuity payouts
begin. Once they begin, the person receiving them has voting
rights. We will vote fund shares according to the instructions of
the person with voting rights.
Before annuity payouts begin, the number of votes is determined by
applying the percentage interest in each variable account to the
total number of votes allowed to the account.
After payouts begin, the number of votes is equal to:
o the reserve held in each account for the contract or
certificate, divided by
o the net asset value of one share of the applicable underlying
mutual fund.
As we make annuity payouts, the reserve for the annuity decreases;
therefore, the number of votes also will decrease.
We calculate votes separately for each account not more than 60
days before a shareholders' meeting. Notice of these meetings,
proxy materials and a statement of the number of votes to which the
voter is entitled, will be sent.
We will vote shares for which we have not received instructions in
the same proportion as the votes for which we have received
instructions. We also will vote the shares for which we have
voting rights in the same proportion as the votes for which we have
received instructions.
Substitution: Shares of any of the underlying funds may not always
be available for purchase by the variable accounts, or we may
decide that further investment in any such fund's shares is no<PAGE>
PAGE 30
longer appropriate in view of the purposes of the variable account.
In either event, shares of another registered open-end management
investment company may be substituted both for fund shares already
purchased by the variable account and for purchases to be made in
the future. In the event of any substitution pursuant to this
provision, we may make appropriate endorsement to the contract and
certificates to reflect the substitution.
We reserve the right to split or combine the value of accumulation
units. In effecting such change of unit values, strict equity will
be preserved and no change will have a material effect on the
benefits under the certificates or on any other provisions of the
contract and related certificates.
About IDS Life
The Employee Benefit Annuity is issued by IDS Life, a wholly owned
subsidiary of IDS, which itself is a wholly owned subsidiary of the
American Express Company (American Express), a financial services
company headquartered in New York City.
IDS Life is a stock life insurance company organized in 1957 under
the laws of the State of Minnesota and located at IDS Tower 10,
Minneapolis, MN 55440-0010. IDS Life conducts a conventional life
insurance business in the District of Columbia and all states
except New York.
The IDS family of companies offers not only insurance and
annuities, but also mutual funds, investment certificates and a
broad range of financial management services.
As a subsidiary of IDS, IDS Life is part of a 100-year tradition of
excellent service and responsible financial management. Today, the
IDS group of companies owns or manages assets of more than $__
billion.
IDS Financial Services, Inc. serves individuals and businesses
through its nationwide network of more than ___ offices and more
than _____ planners.
Other subsidiaries provide investment management and related
services for pension, profit-sharing, employee savings and
endowment funds of businesses and institutions.
Regular and special reports
Services
To help you track and evaluate the performance of your annuity, we
provide:
Quarterly statements showing the value of your investment.
Annual reports containing required information on the annuity and
its underlying investments.
<PAGE>
PAGE 31
A personalized annuity progress report detailing the cumulative
return since the certificate was purchased and the average annual
rate of return on the investments. This report, which is unique in
the industry, is available upon request from your financial
planner.
Table of contents of the Statement of Additional Information
Performance information.......................p.
Rating agencies...............................p.
Principal underwriter.........................p.
Independent auditors..........................p.
Prospectus....................................p.
Financial statements -
IDS Life Accounts F, IZ, JZ, G, H and N...........p.
IDS Life Insurance Company........................p.
___________________________________________________________________
Please check the appropriate box to receive a copy of the Statement
of Additional Information for:
_____ IDS Life Employee Benefit Annuity
_____ IDS Life Retirement Annuity Mutual Funds
Please return this request to:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Your name _______________________________________________________
Address _________________________________________________________
City ______________________ State ______________ Zip ___________
<PAGE>
PAGE 32
STATEMENT OF ADDITIONAL INFORMATION
for
IDS LIFE EMPLOYEE BENEFIT ANNUITY
IDS LIFE ACCOUNTS F, IZ, JZ, G, H and N
April 29, 1994
IDS Life Accounts F, IZ, JZ, G, H and N are separate accounts
established and maintained by IDS Life Insurance Company (IDS
Life).
This Statement of Additional Information dated April 29, 1994, is
not a prospectus. It should be read together with the accounts'
prospectus, dated April 29, 1994, which may be obtained from your
IDS financial planner, or by writing or calling IDS Life at the
address or telephone number below.
IDS Life Insurance Company
P10/199
P.O. Box 74
Minneapolis, MN 55440-0074
612-671-3131
<PAGE>
PAGE 33
TABLE OF CONTENTS
Performance Information.......................................p. 3
Calculating Annuity Payouts...................................p. 5
Rating Agencies...............................................p. 7
Principal Underwriter.........................................p. 8
Independent Auditors..........................................p. 8
Mortality and Expense Risk Charge.............................p. 8
Prospectus....................................................p. 8
Financial Statements
- IDS Life Accounts F,IZ,JZ,G,H and N..............p.
- IDS Life Insurance Company.......................p.
<PAGE>
PAGE 34
PERFORMANCE INFORMATION
Calculation of yield for Account H
IDS Life Account H, which invests in IDS Life Moneyshare Fund,
Inc., calculates an annualized simple yield and a compound yield
based on a seven-day period.
The simple yield is calculated by determining the net change in the
value of a hypothetical account having the balance of one
accumulation unit at the beginning of the seven-day period. (The
net change does not include capital change, but does include a pro
rata share of the annual contract charges, including the annual
contract administrative charge and the mortality and expense risk
fee.) The net change in the account value is divided by the value
of the account at the beginning of the period to obtain the return
for the period. That return is then multiplied by 365/7 to obtain
an annualized figure. The value of the hypothetical account
includes the amount of any declared dividends, the value of any
shares purchased with any dividend paid during the period and any
dividends declared for such shares. The variable account's
(account) yield does not include any realized or unrealized gains
or losses, nor does it include the effect of any applicable
surrender charge.
The account calculates its compound yield according to the
following formula:
Compound Yield = [return for seven-day period +1) 365/7] - 1
On Dec. 31, 1993, the Account's annualized yield was ___% and its
compound yield was ___%.
The rate of return, or yield, on the account's accumulation unit
may fluctuate daily and does not provide a basis for determining
future yields. Investors must consider, when comparing an
investment in Account H with fixed annuities, that fixed annuities
often provide an agreed-to or guaranteed fixed yield for a stated
period of time, whereas the account's yield fluctuates. In
comparing the yield of Account H to a money market fund, you should
consider the different services that the annuity provides.
Calculation of yield for non-money market accounts
For an account other than the money market account, quotations of
yield will be based on all investment income earned during a
particular 30-day period, less expenses accrued during the period
(net investment income) and will be computed by dividing net
investment income per accumulation unit by the value of an
accumulation unit on the last day of the period, according to the
following formula:
YIELD = 2[(a-b + 1)6 - 1]
cd
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PAGE 35
where: a = dividends and investment income earned during the
period
b = expenses accrued for the period (net of reimbursements)
c = the average daily number of accumulation units
outstanding during the period that were entitled to
receive dividends
d = the maximum offering price per accumulation unit on the
last day of the period
Yield on the account is earned from the increase in the net asset
value of shares of the fund in which the account invests and from
dividends declared and paid by the fund, which are automatically
invested in shares of the fund.
Calculation of average annual total return
Quotations of average annual total return for an account will be
expressed in terms of the average annual compounded rate of return
of a hypothetical investment in the annuity contract over a period
of one, five and 10 years (or, if less, up to the life of the
account), calculated according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five
or ten year (or other) period at the end of the
one, five or ten year (or other) period (or
fractional portion thereof)
Account total return figures reflect the deduction of the contract
administrative charge and mortality and expense risk fee.
Performance figures will be shown with and may be shown without the
deduction of a surrender charge. The Securities and Exchange
Commission (SEC) requires that an assumption be made that the
contract owner surrenders the entire contract at the end of the
one, five and ten year periods (or, if less, up to the life of the
account) for which performance is required to be calculated.
Aggregate total return
Aggregate total return represents the cumulative change in the net
asset value of shares of the fund in which the subaccount invests
over a specified period of time and is computed by the following
formula:
ERV - P
P
<PAGE>
PAGE 36
where: P = a hypothetical initial payment of $1,000
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof)
Performance of the accounts may be quoted or compared to rankings,
yields, or returns as published or prepared by independent rating
or statistical services or publishers or publications such as The
Bank Rate Monitor National Index, Barron's, Business Week,
Donoghue's Money Market Fund Report, Financial Services Week,
Financial Times, Financial World, Forbes, Fortune, Global Investor,
Institutional Investor, Investor's Daily, Kiplinger's Personal
Finance, Lipper Analytical Services, Money, Mutual Fund Forecaster,
Newsweek, The New York Times, Personal Investor, Stanger Report,
Sylvia Porter's Personal Finance, USA Today, U.S. News and World
Report, The Wall Street Journal and Wiesenberger Investment
Companies Service.
CALCULATING ANNUITY PAYOUTS
The Variable Account
The following calculations are done separately for each of the
variable accounts. The separate monthly payouts, added together,
make up your total variable annuity payout.
Initial Payout: To compute your first monthly payment, we:
o determine the dollar value of your annuity as of the valuation
date seven days before the retirement date and then deduct any
applicable premium tax.
o apply the result to the annuity table contained in the contract
or another table at least as favorable. The annuity table shows
the amount of the first monthly payment for each $1,000 of value
which depends on factors built into the table, as described below.
Annuity Units: The value of your account is then converted to
annuity units. To compute the number credited to you, we divide
the first monthly payment by the annuity unit value (see below) on
the valuation date on (or next day preceding) the seventh calendar
day before the retirement date. The number of units in your
account is fixed. The value of the units fluctuate with the
performance of the underlying mutual fund.
Subsequent Payouts: To compute later payouts, we multiply:
o the annuity unit value on the valuation date on or immediately
preceding the seventh calendar day before the payout is due; by
o the fixed number of annuity units credited to you.
<PAGE>
PAGE 37
Annuity Table: The table shows the amount of the first monthly
payment for each $1,000 of contract value according to the age and,
when applicable, the sex of the annuitant. (Where required by law,
we will use a unisex table of settlement rates.) The table assumes
that the contract value is invested at the beginning of the annuity
payout period and earns a 5% rate of return, which is reinvested
and helps to support future payouts.
Substitution of 3.5% Table: If you ask us at least 30 days before
the retirement date, we will substitute an annuity table based on
an assumed 3.5% investment rate for the 5% table in the contract.
The assumed investment rate affects both the amount of the first
payout and the extent to which subsequent payouts increase or
decrease. Using the 5% table results in a higher initial payment,
but later payouts will increase more slowly when annuity unit
values are rising and decrease more rapidly when they are
declining.
Annuity Unit Values: This value was originally set at $1 for each
variable account. To calculate later values we multiply the last
annuity value by the product of:
o the net investment factor; and
o the neutralizing factor. The purpose of the neutralizing factor
is to offset the effect of the assumed investment rate built into
the annuity table. With an assumed investment rate of 5%, the
neutralizing factor is 0.999866 for a one day valuation period.
Net Investment Factor:
o Determined each business day by adding the underlying mutual
fund's current net asset value per share plus per share amount of
any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the net investment factor may be greater or less than
one, and the accumulation unit value may increase or decrease. You
bear this investment risk in a variable account.
The Fixed Account
Your fixed annuity payout amounts are guaranteed. Once calculated,
your payout will remain the same and never change. To calculate
your annuity payouts we:
o take the value of your fixed account at the retirement date or
the date you have selected to begin receiving your annuity payouts;
then
o using an annuity payout table we apply the value according to
the annuity payout plan you select; and
o the annuity payout table we use will be the one in effect at the
time you choose to begin your annuity payouts. The table will be
equal to or greater than the table in your contract.
<PAGE>
PAGE 38
RATING AGENCIES
The following chart provides information on the relevance of
ratings* given to IDS Life by independent rating agencies that
evaluate the financial soundness of insurance companies. IDS Life
has one of the most liquid and highest quality balance sheets of
the largest insurance companies in the industry.**
Rating Agency Rating Relevance of Rating
A.M. Best A+ Reflects A.M. Best's opinion
(Superior) regarding IDS Life's strong
distribution network, favorable
overall balance sheet profile,
consistently improving
profitability, adequate level of
capitalization and asset-liability
management expertise.
Duff & Phelps AAA Reflects Duff & Phelps' opinion
regarding IDS Life's consistently
excellent profitability record,
stable operating leverage,
leadership position in chosen
markets and effective use of
asset/liability management
techniques.
Moody's Aa2 Reflects Moody's opinion regarding
IDS Life's leadership position in
financial planning, strong
asset/liability management and
good capitalization. IDS Life has
a strong market focus, and it
greatly emphasizes quality
service.
A.M. Best rates over 1,600 insurance companies on a 15 level scale
with letters ranging from A++ to F to "NA" ratings based on a
company's financial strength and claims paying ability.
Duff & Phelps rates over 125 companies for claims-paying ability
with 19 rating categories from AAA to CCC-.
Moody's rates over 80 companies for financial strength with 19
rating categories ranging from Aaa to C.
* Ratings relate to IDS Life's ability to fulfill its obligations
under its contracts and not to the management or performance of the
separate accounts.
** Measured by comparing the 15 largest life insurance companies'
investments in below investment grade (junk) bonds, mortgages and
real estate to a percentage of those companies' total assets.
<PAGE>
PAGE 39
PRINCIPAL UNDERWRITER
The principal underwriter for the accounts is IDS Life which offers
the variable annuities on a continuous basis.
Surrender charges received by IDS Life for 1993, 1992 and 1991,
aggregated $_________, $3,649,836 and $3,264,084, respectively.
Commissions paid by IDS Life for 1993, 1992 and 1991, aggregated
$__________, $10,334,092 and $5,205,239, respectively. The
surrender charges were applied toward payment of commissions.
INDEPENDENT AUDITORS
The financial statements of the accounts and of IDS Life appearing
in this Statement of Additional Information have been audited by
Ernst & Young, independent auditors, 1400 Pillsbury Center,
Minneapolis, MN 55402, to the extent indicated in their reports.
Ernst & Young are experts in accounting and auditing.
MORTALITY AND EXPENSE RISK CHARGE
IDS Life has represented to the SEC that:
IDS Life has reviewed publicly available information regarding
products of other companies. Based upon this review, IDS Life has
concluded that the mortality and expense risk charge is within the
range of charges determined by industry practice. IDS Life will
maintain at its principal office, and make available on request of
the SEC or its staff, a memorandum setting forth in detail the
variable products analyzed and the methodology, and results of, its
comparative review.
IDS Life has concluded that there is a reasonable likelihood that
the proposed distribution financing arrangements made with respect
to the annuities will benefit the variable account and investors in
the annuities. The basis for such conclusion is set forth in a
memorandum which will be made available to the SEC or its staff on
request.
PROSPECTUS
The prospectus dated April 29, 1994, is hereby incorporated in this
Statement of Additional Information by reference.
<PAGE>
PAGE 40
PART C.
Item 24. Financial Statements and Exhibits
(a) Not applicable.
(b) Exhibits:
1. Copy of Resolution of the Executive Committee of the Board of
Directors of IDS Life establishing Accounts C, D, E, F, G,
and H adopted May 13, 1981, filed electronically herewith.
1.2 Copy of Resolution of the Board of Directors of IDS Life
establishing Account N on April 17, 1985, filed electronically
herewith.
1.3 Copy of Resolution of the Board of Directors of LDS Life
establishing Accounts IZ and JZ on September 20, 1991, filed
electronically herewith.
2. Not applicable.
3. Not applicable.
4. Copy of Group Deferred Fixed/Variable Contract (form 34607)
filed electronically herewith.
5. Copy of Group Deferred Fixed/Variable Certificate (form 34610-
MN) filed electronically herewith.
6.1 Copy of Articles of Incorporation of IDS Life dated July 24,
1957, filed electronically herewith.
6.2 Copy of Amendment to By-Laws of IDS Life filed eletronically
herewith.
7. Not applicable.
8. Not applicable.
9. Opinion of counsel and consent to its use as to the legality
of the securities registered will be filed with Registrant's
24f-2 notice on or about February 25, 1994.
10. Not applicable.
11. Not applicable.
12. Not applicable.
13. Copy of Schedule for computation of each performance quotation
filed electronically herewith.
14. Power of Attorney dated September 24, 1992, filed
electronically herewith.
<PAGE>
PAGE 41
Item 25. Directors and Officers of the Depositor
<TABLE><CAPTION>
Positions and Positions and
Name & Principal Offices with Name & Principal Offices with
Business Address Depositor Business Address Depositor
<S> <C> <C> <C>
Timothy V. Bechtold Vice President, Ryan R. Larson Vice President,
IDS Tower 10 Ins. Product IDS Tower 10 Annuity Product
Minneapolis, MN Development Minneapolis, MN Development
David J. Berry Vice President James A. Mitchell Director; President
IDS Tower 10 IDS Tower 10 and Chief Executive
Minneapolis, MN Minneapolis, MN Officer
John L. Burbidge Vice President Patricia A. Mitshulis Vice President,
IDS Tower 10 IDS Tower 10 Real Estate Loan
Minneapolis, MN Minneapolis, MN Management
Alan R. Dakay Vice President, Mary O. Neal Vice President,
IDS Tower 10 Institutional IDS Tower 10 Sales Support
Minneapolis, MN Insurance Minneapolis, MN
Marketing
William H. Dudley Vice President James R. Palmer Vice President,
IDS Tower 10 IDS Tower 10 Taxes
Minneapolis, MN Minneapolis, MN
Lorraine R. Hart Vice President, ReBecca K. Roloff Director; Executive
IDS Tower 10 Investments IDS Tower 10 Vice President,
Minneapolis, MN Minneapolis, MN Operations
David R. Hubers Director William A. Smith Director
IDS Tower 10 IDS Tower 10
Minneapolis, MN Minneapolis, MN
Roger P. Husemoller Vice President, Jeffrey E. Stiefler Chairman of the
IDS Tower 10 Intercorporate IDS Tower 10 Board and Director
Minneapolis, MN Insurance Minneapolis, MN
Operations
Thomas J. Kelly Vice President, William A. Stoltzmann Vice President,
IDS Tower 10 Insurance IDS Tower 10 General Counsel
Minneapolis, MN New Business Minneapolis, MN and Secretary
Richard W. Kling Director; Jeffrey Sullivan Vice President
IDS Tower 10 Executive Vice IDS Tower 10 and Medical
Minneapolis, MN President, Minneapolis, MN Director
Marketing and
Products Melinda Urion Director, Vice
IDS Tower 10 President, Controller
Paul F. Kolkman Director; Minneapolis, MN and Treasurer
IDS Tower 10 Vice President,
Minneapolis, MN Finance Daniel J. Willis Vice President,
IDS Tower 10 Annuity New Business/
Christopher Kudrna Director; Vice Minneapolis, MN 1035 Services
IDS Tower 10 President, Systems
Minneapolis, MN and Technology
Development
/TABLE
<PAGE>
PAGE 42
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
IDS Life Insurance Company is a wholly owned subsidiary
of IDS Financial Corporation. IDS Financial Corporation
is a wholly owned subsidiary of American Express Company
(American Express).
The following list includes the names of major
subsidiaries of American Express.
Jurisdiction
Name of Subsidiary of Incorporation
I Travel Related Services
American Express Travel Related
Services Company, Inc. New York
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Investment Services
Shearson Lehman Brothers Holdings Inc. Delaware
IV. Companies engaged in Investors
Diversified Financial Services
IDS Financial Corporation Delaware
IDS Certificate Company Delaware
Investors Syndicate Development Corp. Nevada
IDS Financial Services Inc. Delaware
IDS Securities Corporation Delaware
IDS Bank & Trust Minnesota
IDS Real Estate Services, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
American Enterprise Life Insurance
Company Indiana
IDS International, Inc. Delaware
IDS Fund Management Limited U.K.
IDS Insurance Agency of North
Carolina Inc. North Carolina
IDS Insurance Agency of Arkansas Inc. Arkansas
IDS Insurance Agency of Alabama Inc. Alabama
IDS Insurance Agency of Massachusetts
Inc. Massachusetts
IDS Insurance Agency of Nevada Nevada
IDS Insurance Agency of New Mexico Inc. New Mexico
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS Advisory Group Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Management Corporation Minnesota
IDS Futures Corporation Minnesota
<PAGE>
PAGE 43
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
Jurisdiction
Name of Subsidiary of Incorporation
IDS Cable Corporation Minnesota
IDS Realty Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Futures III Corporation Minnesota
IDS Cable II Corporation Minnesota
IDS Partnership Services Corporation Minnesota
American Express Minnesota Foundation Minnesota
IDS Deposit Corp. Utah
IDS Sales Support Inc. Minnesota
IDS Plan Services of California, Inc. Minnesota
American Enterprise Investment
Services, Inc. Minnesota
IDS Aircraft Services Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
Mankato Ventures
Item 27. Number of Contractowners
On Jan. 31, 1994, there were 1,245 contract owners of the
Employee Benefit Annuity.
Item 28. Indemnification
The By-Laws of the depositor provide that it shall
indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that
he is or was a director, officer, employee or agent of
this Corporation, or is or was serving at the direction
of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture,
trust or other enterprise, to any threatened, pending or
completed action, suit or proceeding, wherever brought,
to the fullest extent permitted by the laws of the State
of Minnesota, as now existing or hereafter amended,
provided that this Article shall not indemnify or protect
any such director, officer, employee or agent against any
liability to the Corporation or its security holders to
which he would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless
disregard of his obligations and duties.
Item 29. Principal Underwriters
(a) IDS Life is the principal underwriter for IDS Life
Accounts F, IZ, JZ, G, H and N, IDS Life Variable
Annuity Fund A, IDS Life Variable Annuity Fund B,
IDS Life Account RE, IDS Life Account MGA and IDS
Life Account SLB.
(b) This table is the same as our response to Item 25 of
this Registration Statement.
<PAGE>
PAGE 44
(c)
<TABLE>
<CAPTION>
Name of Net Underwriting
Principal Discounts and Compensation on Brokerage
Underwriter Commissions Redemption Commissions Compensation
<S> <C> <C> <C> <C>
IDS Life None $4,408,562 None None
</TABLE>
Item 30. Location of Accounts and Records
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) Registrant undertakes that it will file a post-
effective amendment to this registration statement
as frequently as is necessary to ensure that the
audited financial statements in the registration
statement are never more than 16 months old for so
long as payments under the variable annuity
contracts may be accepted.
(b) Registrant undertakes that it will include either
(1) as part of any application to purchase a
contract offered by the prospectus, a space that an
applicant can check to request a Statement of
Additional Information, or (2) a post card or
similar written communication affixed to or included
in the prospectus that the applicant can remove to
send for a Statement of Additional Information.
(c) Registrant undertakes to deliver any Statement of
Additional Information and any financial statements
required to be made available under this Form
promptly upon written or oral request to IDS Life
Contract Owner Service at the address or phone
number listed in the prospectus.
(d) Registrant represents that it is relying upon the
no-action assurance given to the American Council of
Life Insurance (pub. avail. Nov. 28, 1988).
Further, Registrant represents that it has complied
with the provisions of paragraphs (1) -(4) of that
no-action letter.
<PAGE>
PAGE 45
SIGNATURES
As required by the Securities Act of 1933 and the Investment
Company Act of 1940, IDS Life Insurance Company, on behalf of the
Registrant, has caused this Registration Statement to be signed on
its behalf in the City of Minneapolis, and State of Minnesota, on
the 28th day of February, 1994.
IDS LIFE ACCOUNT F
IDS LIFE ACCOUNT IZ
IDS LIFE ACCOUNT JZ
IDS LIFE ACCOUNT G
IDS LIFE ACCOUNT H
IDS LIFE ACCOUNT N
(Registrant)
By IDS Life Insurance Company
(Sponsor)
By /s/ James A. Mitchell*
James A. Mitchell
President
As required by the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the
capacities indicated on the 28th day of February, 1994.
Signature Title
/s/ James A. Mitchell* Director, President and Chief
James A. Mitchell Executive Officer
Director and Executive Vice
Richard W. Kling President, Marketing and Products
/s/ Paul F. Kolkman* Director and Vice President,
Paul F. Kolkman Finance
/s/ Melinda Urion* Director, Vice President,
Melinda Urion Controller and Treasurer
/s/ David R. Hubers* Director
David R. Hubers
/s/ Christopher R. Kudrna* Director and Vice President,
Christopher R. Kudrna Systems and Technology
Development
/s/ ReBecca K. Roloff* Director and Executive Vice
ReBecca K. Roloff President, Operations
<PAGE>
PAGE 46
Signature Title
/s/ William A. Smith* Director
William A. Smith
/s/ Jeffrey E. Stiefler* Director and Chairman of the
Jeffrey E. Stiefler Board
* Signed pursuant to Power of Attorney dated Sept. 24, 1992, filed
as Exhibit 14 to Registration Statement No. 811-3217/33-52518,
which has been incorporated by reference into this Registration
Statement.
_____________________________
Mary Ellyn Minenko
<PAGE>
PAGE 47
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 2
This Post-Effective Amendment is comprised of the following papers
and documents:
The Cover Page.
Cross-reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
IDS LIFE ACCOUNTS F, IZ, JZ, G, H AND N
Registration Number 33-52518/811-3217
EXHIBIT INDEX
Exhibit 1. Copy of Resolution of the Executive Committee of the
Board of Directors of IDS Life establishing Accounts
C, D, E, F, G, and H adopted May 13, 1981.
Exhibit 1.2 Copy of Resolution of the Board of Directors of IDS
Life establishing Account N on April 17, 1985.
Exhibit 1.3 Copy of Resolution of the Board of Directors of LDS
Life establishing Accounts IZ and JZ on September 20,
1991.
Exhibit 4. Copy of Group Deferred Fixed/Variable Contract (form
34607).
Exhibit 5. Copy of Group Deferred Fixed/Variable Certificate (form
34610-MN).
Exhibit 6.1 Copy of Articles of Incorporation of IDS Life dated
July 24, 1957.
Exhibit 6.2 Copy of Amendment to By-Laws of IDS Life.
Exhibit 13. Copy of Schedule for computation of each performance
quotation.
Exhibit 14. Power of Attorney dated September 24, 1992.
<PAGE>
PAGE 1
IDS LIFE INSURANCE COMPANY
MINUTES OF THE ANNUAL MEETING OF THE BOARD OF DIRECTORS
MAY 13, 1981
The Annual Meeting of the Board of Directors of IDS
Life Insurance Company, a Minnesota corporation, was held at 10:45
a.m., Wednesday, May 13, 1981, at the offices of the Corporation,
IDS Tower, Minneapolis, Minnesota, immediately following
adjournment of the Annual Meeting of Stockholders of the
Corporation, pursuant to written notice duly given.
Mr. W.D. Scott, Chairman of the Board, called the
meeting to order and presided as Chairman. Mr. D.H. Bruer,
Assistant Secretary of the Corporation, acted as Secretary of the
meeting. All members of the Board elected at said Annual Meeting
of Stockholders were present, except Messrs. Ceithaml and Haase,
together with Messrs. R.N. Latzer, Vice President, Investments, and
R.J. O'Brien, Vice President, General Counsel and Secretary, of the
Corporation.
The Chairman stated that the first item to consider was
approval of minutes of the meeting of the Board held February 11,
1981, copies of which had been distributed to all members of the
Board, and the following resolution was duly adopted:
RESOLVED, That the minutes of the regular meeting
of the Board held February 11, 1981, as presented
to this meeting, are approved.
The Chairman stated that the next item to consider was
the designation of an Executive Committee. Thereupon, after
discussion, the following resolutions were duly adopted:
RESOLVED, That an Executive Committee of the Board
is created to consist of four members which
Committee shall, subject at all times to the
control and direction of the Board, have and
exercise the authority of the Board in the
management of the business of the Corporation in
the interval between meetings of the Board;
further
RESOLVED, That Messrs. George F. Ceithaml, Charles
R. Orem, Joseph R. Pickering and Walter D. Scott
are designated members of said Executive
Committee, to serve at the pleasure of the Board,
and that Joseph R. Pickering is designated
Presiding Officer of such Executive Committee:
further
RESOLVED, That such Committee may meet upon call
of the Presiding Officer or any two members on
annuities", and asked Mr. Pickering to comment
thereon. Mr. Pickering directed the Board to a
memorandum dated May 1, 1981, and, after
discussion, the following resolutions were duly
adopted:
<PAGE>
PAGE 2
WHEREAS, This Board of Directors has determined
that it is desirable for the Corporation to issue
variable annuity contracts, the values and
benefits of which will vary with the investment
performance of certain mutual funds (the Funds")
which the Corporation has caused to be
established, now, therefore, be it
RESOLVED, That the six separate accounts set forth
below are hereby established in accordance with
Section 61A.14, Minnesota Statutes:
IDS Life Account C, to invest in shares of
IDS Life Capital Resource Fund I, Inc.
IDS Life Account D, to invest in shares of
IDS Life Special Income Fund I, Inc.
IDS Life Account E, to invest in the shares
of IDS Life Moneyshare Fund, Inc.
IDS Life Account F, to invest in the shares
of IDS Life Capital Resource Fund II, Inc.
IDS Life Account G, to invest in the shares
of IDS Life Special Income Fund II, Inc.
IDS Life Account H, to invest in the shares
of IDS Life Moneyshare Fund, Inc.
RESOLVED FURTHER, That the President of the
Corporation is hereby authorized to cause the
transfer of One Hundred Thousand Dollars
($100,000) of the Corporation's funds from its
general account to each of IDS Life Accounts C, D,
and E, all in accordance with the provisions of
Section 61A.14, Subd. 8, Minnesota Statutes, to be
held therein until this Board of Directors
authorizes its retransfer to the general account;
and
FURTHER RESOLVED, That the proper officers of the
Corporation are hereby authorized to enter into an
Investment Management and Services Agreement with
each of the Funds in the form presented to this
meeting.
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized to enter into an
Agreement with Investors Diversified Services,
Inc., in the form presented to this meeting, for
investment
<PAGE>
PAGE 1
CONSENT IN WRITING IN LIEU OF MEETING OF BOARD OF DIRECTORS
Pursuant to Section 300.20 of the Minnesota Statutes
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY
As a member of the Board of Directors of IDS Life Insurance
Company, a Minnesota corporation I hereby consent to and authorize
the adopition of the following resolutions by the Board of
Directors of said Corporation, to become effective at the time of
your receipt of executed counterparts hereof from all other members
of said Board of Directors:
WHEREAS, This Board of Directors has determined that it
is desirable for the Corporation to provide for the
acquisition of shares of IDS Life Managed Fund under
its variable annuity contracts, now, therefore, be it
RESOLVED, That the two separate accounts set forth
below are hereby established in accordance with Section
61A.14, Minnesota Statutes:
IDS Life Account M, to invest in shares of IDS
Life Managed Fund Inc.
IDS Life Account N, to invest in shares of IDS
Life Managed Fund Inc.
RESOLVED FURTHER, That the Unit Investment Trust
comprised of IDS Life Accounts C, D, and E is hereby
reconstituted as IDS Life Accounts C, D, E, and M; and
the Unit Investment Trust comprised of IDS Life
Accounts F, G, and H is hereby reconstituted as IDS
Life Accounts F, G, H and N.
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized and directed to
accomplosh all filings and registrations necessary to
carry the foregoing into effect.
Executed this 17th day of April, 1985.
/s/ Harvey Golub /s/ Earlon L. Milbrath
Harvey Golub Earlon L. Milbrath
/s/ R. W. Kling /s/ Paul Kolkman
Richard W. Kling Paul F. Kolkman
/s/ James A. Mitchell
James A. Mitchell
Received by the Secretary
April 17 , 1985
/s/ Richard J. O'Brien
Secretary
Effective: April 17 , 1985
<PAGE>
PAGE 1
CONSENT IN WRITING IN LIEU OF MEETING OF BOARD OF DIRECTORS
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY
By this consent in writing in lieu of a meeting of the Board of
Directors of IDS Life Insurance Company, a Minnesota corporation,
we the Directors of said Corporation do hereby consent to and
authorize the adoption of the following resolution to be effective
immediately upon receipt by the Secretary of the Corporation:
WHEREAS, This Board of Directors has determined that it
is desirable for the Corporation to provide for the
acquisition of shares of IDS Life International Equity
Fund and IDS Life Aggressive Growth Fund under its
variable annuity contracts. Now, therefore, be it
RESOLVED, That the two separate accounts set forth
below are hereby established in accordance with Section
61A.14 of the Minnesota Statutes:
IDS Life Account IZ, to invest in shares of IDS
Life International Equity Fund; and
IDS Life Account JZ, to invest in shares of IDS
Life Aggressive Growth Fund.
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized to accomplish all
filings, registrations, and applications for exemptive
relief necessary to carry the foregoing into effect.
/s/ D. R. Hubers /s/ R. W. Kling
David R. Hubers Richard W. Kling
/s/ Paul F. Kolkman /s/ Christopher R. Kudrna
Paul F. Kolkman Christopher R. Kudrna
/s/ James A. Mitchell /s/ Rebecca K. Roloff
James A. Mitchell Rebecca K. Roloff
/s/ Jeffrey E. Stiefler
Jeffrey E. Stiefler
Received by the Secretary
September 20 , 1991
/s/ William A. Stoltzmann
William A. Stoltzmann
<PAGE>
PAGE 2
CONSENT IN WRITING IN LIEU OF MEETING OF BOARD OF DIRECTORS
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY
By this consent in writing in lieu of a meeting of the Board of
Directors of IDS Life Insurance Company, a Minnesota corporation,
we the Directors of said Corporation do hereby consent to and
authorize the adoption of the following resolution to be effective
immediately upon receipt by the Secretary of the Corporation:
WHEREAS, This Board of Directors has determined that it
is desirable for the Corporation to provide for the
acquisition of shares of IDS Life International Equity
Fund and IDS Life Aggressive Growth Fund under its
variable annuity contracts. Now, therefore, be it
RESOLVED, That the two separate accounts set forth
below are hereby established in accordance with Section
61A.14 of the Minnesota Statutes:
IDS Life Account IZ, to invest in shares of IDS
Life International Equity Fund; and
IDS Life Account JZ, to invest in shares of IDS
Life Aggressive Growth Fund.
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized to accomplish all
filings, registrations, and applications for exemptive
relief necessary to carry the foregoing into effect.
/s/ William A. Smith
William A. Smith
Received by the Secretary
April 10 , 1992
/s/ William A. Stoltzmann
William A. Stoltzmann
<PAGE>
PAGE 1
GROUP DEFERRED ANNUITY CONTRACT
- - Employer Plan
- - Group Deferred Annuity - Individual Allocation
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - This contract is nonparticipating. Dividends are not payable.
This is a deferred annuity contract. It is a legal contract
between you, as the owner, and us, IDS Life Insurance Company, a
Stock Company, Minneapolis, Minnesota. PLEASE READ YOUR CONTRACT
CAREFULLY.
We agree: to pay annuity benefits provided in this contract and:
to provide you and the Participants and Beneficiaries with the
rights and benefits contained in this contract.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE
INVESTMENT RESULTS OF THE SEPARATE ACCOUNTS, ARE VARIABLE AND NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT. SEE PAGE 10 FOR VARIABLE
PROVISIONS.
We issue this contract in consideration of your application and the
payment of the purchase payments for allocation to Participant
certificates as directed.
Signed for and issued by IDS Life Insurance Company in Minneapolis,
Minnesota, as of the contract date shown under Contract Data.
President
/s/ James A. Mitchell
Secretary
/s/ William A. Stoltzmann
<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions Important words and meanings/Page 3
General Provisions Entire contract; Certificates;
Incontestable; Benefits based upon
incorrect data; State laws;
Periodic reports; Evidence of
survival; Protection of proceeds;
Payments by us; Voting rights;
Changes in plan/Page 5
Ownership and Beneficiary Owner rights; Trust or custodial
ownership; Change of ownership;
Beneficiary; Change of
Beneficiary/Page 6
Payments to Beneficiary Describes options and amounts
payable upon death/Page 7
Purchase Payments Purchase payments; Amounts and
intervals; Payment limits;
Allocation of purchase payments;
Termination of payments/Page 8
Certificate Value Provisions Certificate value; Fixed account
certificate value; Interest to be
credited; Variable accounts
certificate value; Administrative
charge; Premium tax charges;
Transfers of certificate
values/Page 9
Fixed and Variable Accounts Fixed account; Variable accounts;
Investments of the variable
accounts; Valuation of assets;
Accumulation units and values; Net
investment factor; Mortality and
expense risk charge; Annuity unit
value/Page 10
Surrender Provisions Surrender; Surrender value;
Surrender Charge; Rules for
surrender/Page 11
Loan Provisions Loan amount; Loan interest; Loan
period and repayment; Effect of
loan on certificate value;
Transfers and partial surrenders
during loan period; Tax status/Page
13
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 14
<PAGE>
PAGE 3
GUIDE TO CONTRACT PROVISIONS (continued)
Table of Settlement Rates Tables showing the amount of the
first variable annuity payment and
fixed annuity payments for the
various payment plans/Page 16
<PAGE>
PAGE 4
CONTRACT DATA
Contract Date: November 1, 1992
Contract Number: Sample
Contract Owner: ABC School
Group Deferred Annuity Contract for 403(b) Employer-Sponsored Plans
Accounts Available for Allocation of Purchase Payments:
Variable
Accounts Mutual Fund
F IDS Life Capital Resource Fund
G IDS Life Special Income Fund
H IDS Life Moneyshare Fund
N IDS Life Managed Fund
IZ IDS Life International Equity Fund
JZ IDS Life Aggressive Growth Fund
Fixed Account
Surrender Charge: Applies to each certificate. See page 11.
Surrender Charge
as % of Amount
Certificate Year Surrendered
1 8%
2 8
3 8
4 8
5 7
6 6
7 5
8 4
9 3
10 2
11 1
12 and later 0
Surrender charges will not exceed 8 1/2% of purchase payments with
respect to each certificate.
Administrative Charge: $30 deducted from each certificate's
value at the end of each certificate
year. See page 9.
Fixed Account Guaranteed Interest Rate: 4% per year compounded
annually.
Loan Interest Rate Charged: 7.4% annually in
advance. See page 13.
<PAGE>
PAGE 5
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
Annuitant - The Participant named in each certificate on whose life
annuity payments will be based.
Participant - An eligible employee or other person named in the
certificate who is entitled to benefits under the Plan as
determined and reported to us by the Owner.
You, Your - The owner of this contract.
We, Our, Us - IDS Life Insurance Company (IDS Life).
Contract Owner - The employer or other organization which makes
application for this contract.
Participant Enrollment Form - The document or application signed by
each Participant that serves as his or her application for
enrollment under the contract.
Plan - The retirement plan under which the contract is issued and
which meets the particular requirements of Section 403(b) of the
Internal Revenue Code of 1986, as amended ("Code").
Purchase Payment (Payment) - An amount paid to Us by or on behalf
of a participant as consideration for the benefits provided by the
contract and related certificates.
Certificate - The document for each Participant which evidences the
coverage of the Participant under the contract.
Certificate Year - Any period of one year commencing with the issue
date of a Participant's certificate and each anniversary
thereafter.
Certificate Anniversary - The first day of any certificate year.
Accumulation Unit - An accumulation unit is an accounting unit of
measure. It is used to calculate a Participant's certificate value
prior to settlement.
Annuity Unit - An annuity unit is an accounting unit of measure.
It is used to calculate the value of annuity payments from the
variable accounts on and after the retirement date.
Contract Date - The date from which contract anniversaries,
contract years, and contract months are determined. Your contract
date is shown under Contract Data.
Contract Anniversary - The same day and month as the contract date
each year that the contract remains in force.
<PAGE>
PAGE 6
DEFINITIONS (continued)
Certificate Value - The sum of the: (1) Fixed Account certificate
value; and (2) Variable Account certificate value.
Retirement Date - The date elected by the Participant on which
annuity payments are to begin. This date may be changed as
provided in this contract.
Settlement - The application of a Participant's certificate value
to provide annuity payments.
Valuation Date - A valuation date is each day the New York Stock
Exchange is open for trading.
Valuation Period - A valuation period is the interval of time
commencing at the close of business on each valuation date and
ending at the close of business on the next valuation date.
Fixed Account - The fixed account is made up of all our assets
other than those in any separate account.
Variable Accounts - The variable accounts are named under Contract
Data. Each is a separate investment account of ours.
Fixed Annuity - A fixed annuity is an annuity with payments which
are guaranteed by us as to dollar amount during the annuity payment
period.
Variable Annuity - A variable annuity is an annuity with payments
which (1) are not predetermined or guaranteed as to dollar amount;
and (2) vary in amount with the investment experience of one or
more of the variable accounts.
Written Request - A request in writing signed by you or a
Participant and delivered to us.
<PAGE>
PAGE 7
GENERAL PROVISIONS
Entire Contract
This contract form is the entire contract between you and us.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under this contract.
Certificates
We shall issue an individual certificate setting forth in substance
the benefits to which each Participant is entitled under this
contract. Such certificate is not a part of this contract.
Incontestable
The contract and certificates are incontestable from their date of
issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age that is incorrect, benefits will be recalculated on the basis
of the correct data. Any underpayments made by us will be made up
immediately. Any overpayments made by us will be subtracted from
the future payments.
State Laws
This contract is governed by the law of the state in which it is
delivered. The values and benefits of this contract are at least
equal to those required by such state.
Periodic Reports
Statements will be sent to the Owner and Participant quarterly, or
more frequently as the Code may require, showing the number, type
and value of the fixed amounts and accumulation units credited to
the contract and the Participant's certificate. The statement
shall be accurate as of a date not more than two (2) months prior
to the date of mailing. Statements reflecting transactions in each
Participant's certificate as may be required by applicable laws,
rules and regulations will also be sent.
Evidence of Survival - Where any payments under this contract
depend on the recipient or annuitant being alive on a given date,
proof that such condition has been met may be required by us. Such
proof may be required prior to making the payments.
<PAGE>
PAGE 8
GENERAL PROVISIONS (continued)
Protection of Proceeds - Payments under this contract are not
assignable by any beneficiary prior to the time they are due. To
the extent allowed by law, payments are not subject to the claims
of creditors or to legal process.
Payments By Us - All sums payable by us are payable at our home
office. Any payment of a variable annuity or surrender based on
the variable contract value shall be payable only from the variable
accounts.
Voting Rights - We will vote mutual fund shares held by the
variable accounts at meetings of shareholders of the fund(s), in
accordance with instructions received from the Owner, Participants,
or other authorized party. Notice will be given to each person who
may be entitled to vote on any matter. Such notice will specify
the matters upon which the person may be entitled to vote and the
method of determining the number of votes which may be cast at any
such meeting. Fund shares held in each variable account for which
no timely voting instructions are received and fund shares that are
not otherwise attributable to Owners, Participants, or other
authorized party will be voted by the Company in the same
proportion as the shares for which voting instructions are
received.
Changes in Plan - Evidence may be requested that the Plan meets the
requirements of qualification under Section 403(b) of the Code.
You agree to provide notification immediately if, at any time, the
Plan fails to meet the requirements of that Section of the Code.
<PAGE>
PAGE 9
OWNERSHIP AND BENEFICIARY
Owner's Rights
Unless otherwise provided in this contract you may exercise all
rights and privileges provided in this contract or allowed by us.
Participants rights under the contract are subject to the terms of
the Owner's Plan.
Trust or Custodial Ownership
If you are a tax qualified trust or tax qualified custodial
account, then your trustees or custodian (or their successors)
properly named by your trust or custodial agreement may exercise
all rights and privileges provided in this contract or allowed by
us.
Change of Ownership (Restricted)
Your right to change the ownership of this contract is restricted.
This contract may not be sold, assigned, transferred, discounted or
pledged as collateral for a loan or as security for the performance
of an obligation or for any other purpose to any person other than
to us. The Participants vested rights under this contract are
nonforfeitable and this contract or the rights under it may not be
transferred to any person other than to us.
Beneficiary
Beneficiaries are those named by the Participant in accordance with
applicable provisions of the Plan and the Code, in a form
satisfactory to us, to receive benefits of the certificate if the
Participant dies while the certificate is in force.
Only those beneficiaries who are living when death benefits become
payable may share in the benefits, if any. If no beneficiary is
then living, we will pay the benefits to the Participant's estate.
Change of Beneficiary
The Participant may change the beneficiary anytime while the
annuitant is living by satisfactory written request. Once the
change is recorded, it will take effect as of the date of the
request, subject to any action taken or payment made before the
recording.
<PAGE>
PAGE 10
PAYMENTS TO BENEFICIARY
Death Benefit Before the Retirement Date
If the Participant dies before the retirement date and age 75 while
the certificate is in force we will pay to the beneficiary the
greater of:
1. the certificate value; or
2. the purchase payments paid less any amounts
surrendered.
If the Participant dies before the retirement date and on of after
the Participant's 75th birthday, while the certificate is in force,
we will pay to the beneficiary the certificate value.
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the Participant. The beneficiary may elect
to receive payment anytime within 5 years after the date of death
of the Participant.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of
death; and
3. the plan provides payments over a period which does not
exceed the life of the beneficiary, or the life
expectancy of the beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the certificate value as of the valuation date on
or next following the date on which due proof of death is received
at our home office.
Spouse Option to Continue Contract Upon Annuitant's Death
If the Participant dies prior to the retirement date, a spouse who
is designated as sole beneficiary may elect inwriting to forego
receipt of the death benefit and instead continue the certificate
in force. The election by the spouse must be made within 60 days
after we receive due proof of death. The spouse may not make
additional purchase payments to the certificate.
In this event, the retirement date may not be later than the April
1 following the calendar year in which the Participant would have
attained age 70 1/2, or such other date which allows the spouse to
satisfy the minimum distribution requirements under the Code, its
regulations and/or promulgations by the Internal Revenue Service.
<PAGE>
PAGE 11
PAYMENTS TO BENEFICIARY (continued)
Annuitant's Death After the Retirement Date
If the annuitant dies after the retirement date, the amount
payable, if any, will be as provided in the Annuity Payment Plan
then in effect.
<PAGE>
PAGE 12
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments made by, or on behalf of, the
participant under this contract for the benefits it provides.
Purchase payments must be paid or mailed to us or to an authorized
agent. If requested, we'll give you a receipt for your purchase
payments. Upon payment to us, purchase payments become our
property.
Net purchase payments are that part of the purchase payments
applied to the certificate value. A net purchase payment is equal
to the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date a Participant's certificate
terminates by surrender or otherwise; or (2) the date on which
annuity payments begin for the Participant.
Subject to the Payment Limits Provision the Participant may: (1)
stop and/or restart purchase payments; or (2) increase or decrease
the amount of purchase payments; or (3) change the interval of
purchase payments.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments in the
first or later years may not exceed the applicable limits allowed
under the Code and Plan.
Minimum Purchase Payments - Upon issue of a Certificate, a purchase
payment intended as a Single Purchase Payment must be at least
$1,000. If a participant intends to make installment purchase
payments such payments, on an annualized basis, must be at least
equal to $300.
We also reserve the right to cancel a certificate if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 24 months; and
(2) less than $600 in purchase payments have been paid under the
certificate. In this event we will give the Participant 30 days
written notice of our intent to cancel the certificate. Upon such
cancellation we will pay the Participant the certificate value in
one sum. The certificate will then terminate.
Allocation of Purchase Payments
Participants shall give instructions on how purchase payments are
to be allocated among the fixed account and variable accounts.
Choices for each account may be made in any whole percent from 0%
to 100% as long as the total adds upto 100%. A participants'
Allocation instructions as of the certificate date will be shown in
the certificate. By written request, or by another method agreed
<PAGE>
PAGE 13
PURCHASE PAYMENTS (continued)
upon, participants may change their choice of accounts or
percentages. The first net purchase payment will be allocated as
of the end of the valuation period during which we make an
affirmative decision to issue the certificate. Net purchase
payments after the first will be allocated as of te end of the
valuation period during which we receive the payment at our home
office.
Termination of Payments
If purchase payments made by or on behalf of a Participant are
terminated for any reason prior to the retirement date, the
Participant may elect to surrender the certificate value in
accordance with any applicable provisions of this contract, the
Plan or the Code of leave the certificate in force under the
contract until the certificate value is surrendered, paid upon the
Participant's death or applied to an annuity payment plan. When
the certificate remains in force under the contract, any monies
allocated to the variable accounts will continue to reflect the net
investment experience of the funds. If the total certificate value
becomes less than $600, we reserve the right to pay the certificate
value to the Participant in a lump sum.
The Participant also may transfer the certificate under a group
deferred annuity contract held by another contract owner that is
issued by us under the same policy form.
<PAGE>
PAGE 14
CERTIFICATE VALUE PROVISIONS
Certificate Value
A participant's certificate value at any time is the sum of : (1)
the Fixed Account certificate value; and (2) the Variable Account
certificate value.
If: (1) part or all of the certificate value is surrendered; or (2)
charges described herein are made against the certificate value;
then a number of accumulation units from the variable accounts and
an amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed or
variable accounts that are specified. Otherwise, the number of
units from the variable accounts and the amount from the fixed
account will be deducted in the same proportion that the
participants' interest in each bears to the total certificate
value.
Fixed Account Certificate Value
The fixed account certificate value at any time will be: (1) the
sum of all amounts credited to the fixed account under the
certificate; less (2) any amounts deducted for charges or
surrenders.
Interest to be Credited
We will credit interest to the fixed account certificate value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine
from time to time. However, we guarantee that the rate will not be
less than the Guaranteed Interest Rate shown under Contract Data.
Variable Account Certificate Value
The variable account certificate value at any time will be: (1) the
sum of the value of all variable account accumulation units under
the certificate resulting from purchase payments so allocated, or
transfers among the variable and fixed accounts; less (2) any units
deducted for charges or surrenders.
Administrative Charge
We charge a fee for establishing and maintaining our records for
each certificate under this contract. The charge is shown under
Contract Data and is deducted from the certificate value at the end
of each certificate year or, if earlier, when the certificate is
surrendered. The charge does not apply after annuity payments
begin for each participant. We reserve the right to reduce or
eliminate the administrative charge.
<PAGE>
PAGE 15
CERTIFICATE VALUE PROVISIONS (continued)
Premium Tax Charges
We reserve the right to deduct an amount from a participant's
certificate value for any applicable premium taxes not previously
deducted.
Transfers of Certificate Values
While a certificate is in force prior to the settlement date,
transfers of certificate account values may be made as outlined
below:
1. Subject to provisions of the Plan, Participants may
transfer all or part of the values held in one or more
of the variable accounts to another one or more of the
variable accounts. Subject to item 2, participants may
also transfer values held in one or more of the
variable accounts to the fixed account.
2. Once per year subject to provisions of the Plan,
Participants may transfer values from the fixed account
to one or more of the variable accounts. If such a
transfer is made, no transfers from a variable account
to the fixed account may be made until the next
eligible period as defined in the Plan.
Participants may make a transfer by written request. Transfer
requests may also be made accordiny to telephone procedures or
automated transfer procedures that are then currently in effect, if
any. There is no fee or charge for these transfers. However, the
minimum transfer amount is $250, or if less, the entire value in
the account from which the transfer is being made. Smaller
minimums may apply to automated transfer procedures. This transfer
privilege may be suspended or modified by us at any time.
<PAGE>
PAGE 16
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all of
our assets other than: (1) those in the variable accounts; and (2)
those in any other segregated asset account.
The Variable Accounts
The variable accounts are separate investment accounts of ours.
They are named under Contract Data. We have allocated a part of
our assets for this and certain other contracts to the variable
accounts. Such assets remain our property. However, they may not
be charged with the liabilities from any other business in which we
may take part.
Investments of the Variable Accounts
Purchase payments applied to the variable accounts will be
allocated as specified by the Participant. Each variable account
will buy, at net asset value, shares of the fund shown for that
account under Contract Data or as later added or changed.
Valuation of Assets
Mutual fund shares in the variable accounts will be valued at their
net asset value.
Variable Account Accumulation Units
The number of accumulation units for each of the variable accounts
is found by dividing: (1) the net amount allocated to the account;
by (2) the accumulation unit value for the account for the
valuation period during which we received the purchase payment.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable accounts
was arbitrarily set at $1 when the first mutual fund shares were
bought. The value for any later valuation period is found as
follows:
The accumulation unit value for each variable account
for the last prior valuation period is multiplied by
the net investment factor for the same account for the
next following valuation period. The result is the
accumulation unit value. The value of an accumulation
unit may increase or decrease from one valuation period
to the next.
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable account from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.<PAGE>
PAGE 17
FIXED AND VARIABLE ACCOUNTS (continued)
The net investment factor for any such account for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund
held in the variable account determined at the end
of the current valuation period; plus
b. the per share amount of any dividend or capital
gain distributions made by the mutual fund held in
the variable account, if the "ex-dividend" date
occurs during the current valuation period.
(2) is the net asset value per share of the mutual fund
held in the variable account, determined at the end of
the last prior valuation period.
(3) is a factor representing the mortality and expense risk
charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable accounts equal, on an
annual basis, to 1.00% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under contracts of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction is:
(1) made from each variable account; and (2) computed on a daily
basis.
Annuity Unit Value
The value of an annuity unit for each variable account was
arbitrarily set at $1 when the first mutual funds were bought. The
value for any later valuation period is found as follows:
1. The annuity unit for each variable account for the last
prior valuation period is multiplied by the net
investment factor for the account for the valuation
period for which the annuity unit value is being
calculated.
2. The result is multiplied by an interest factor. This
is done to neutralize the assumed investment rate which
is built into the annuity tables on page 16.
<PAGE>
PAGE 18
SURRENDER PROVISIONS
Surrender
By written request and subject to requirements under the Plan and
the rules below a Participant may:
1. surrender the certificate for the total surrender
value; or
2. partially surrender the certificate for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the certificate value;
2. minus the administrative charge;
3. minus any surrender charge.
Surrender Charge
The surrender charge shall apply to surrenders by each participant
and is based on:
1. the amount surrendered; and
2. the certificate year in which a surrender is made.
The schedule of surrender charges is shown under Contract Data. We
reserve the right to reduce or eliminate the surrender charges.
Surrender charges shall not apply if amounts are distributed due to
the following:
1. a Participant's retirement under the Plan on or after
Age 55, or
2. death of the Participant, or
3. settlement of the certificate under an Annuity Payment
Plan as described herein.
Rules for Surrender
All surrenders will have the following conditions:
1. The Participant must apply by written request or other
method agreed to by us: (a) while the certificate is in
force; and (b) prior to the earlier of the retirement
date or the death of the Participant.
<PAGE>
PAGE 19
SURRENDER PROVISIONS (continued)
2. Unless we agree otherwise, the Participant must
surrender an amount equal to at least $250. The
certificate value after a partial surrender must be at
least $600.
3. The amount surrendered, less any charges, will normally
be paid to the Participant within seven days of the
receipt of written request and the certificate, if
required, For surrenders from the fixed account, we
have the right to defer payment for up to 6 months from
the date we receive the request.
4. For partial surrenders, if the Participant does not
specify from which accounts the surrender is to be
made, the surrender will be made from the variable
accounts and fixed account in the same proportion as
the Participant's interest in each bears to the
certificate value.
5. Any amounts surrendered and charges which may apply can
not be repaid.
Upon surrender for the full surrender value the certificate will
terminate. We may require return of the certificate to us before
we pay the full surrender value.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable accounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is
restricted; or
3. When an emergency exists as a result of which: (a)
disposal of securities held in the variable accounts is
not reasonably practicable; or (b) it is not reasonably
practicable to fairly determine the value of the net
assets of the variable account; or
4. During any other period when the Securities and
Exchange Commission, by order, so permits for the
protection of security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
Surrender Restrictions Before Age 59 1/2
Section 403(b) of the Code prohibits any distributions from the
contract or certificate unless the Participant has:
1. attained age 59 1/2; or<PAGE>
PAGE 20
SURRENDER PROVISIONS (continued)
2. separated from service of the employer; or
3. died; or
4. become disabled (as defined in Section 72(m)(7) of the
Code; or
5. encountered hardship (within the meaning of Section
403(b) of the Code);
and then only such amounts that the Code may provide.
We shall require satisfactory written proof of the event(s) in
items 1 through 5 above prior to any distribution.
<PAGE>
PAGE 21
LOAN PROVISIONS
Loan Amount
We may make loans from the Fixed Account Certificate Value to the
Participant at any time before retirement payments begin. The
security for the loan will be the Fixed Account Certificate Value.
A loan cannot exceed $50,000 or one-half of the Certificate Value,
whichever is less. In no event will such amount exceed 93% of the
Fixed Account Certificate Value. If the Participant has taken a
plan loan in the past, the $50,000 limit may be reduced. The
reduction equals $50,000 minus the excess, if any of (a) the
highest loan balances owed during the prior one-year period, over
(b) the balances currently owed. If one-half of the Certificate
Value is less than $10,000, we may make a loan in such other amount
provided in the loan agreement and permitted under applicable law.
Loans of less than $600 will not be permitted.
Loan Interest
During the loan term, the fixed account certificate value equal to
the value of the loan will continue to earn interest at a rate of
4% per year compounded annually in lieu of the current interest
rate. Loan interest will be charged on the outstanding loan
balance at a rate of 7.4% per year payable annually in advance,
unless a different rate is required by applicable federal law. In
no event will the rate exceed the maximum rate prescribed for
contracts/certificates of this type in the state where the
certificate is issued.
Loan Period and Repayment
Loans plus interest must be repaid within 5 years unless the loan
request and supplemental loan agreement specify that the loan
period will be 10 years and is agreed to by us.
Loan repayments will be due at the times set forth in the loan
agreement. If the loan balance outstanding, plus interest, is not
repaid by the end of the loan period or prior to surrender or
settlement of the certificate, the loan balance, plus interest and
any surrender charge, will be deducted from the Fixed Account
Certificate Value and paid to us. The loan balance plus interest
will be treated as a surrender. (Caution: such a surrender before
age 59 1/2 may result in a tax penalty.)
The loan may be repaid in full or in part as provided in the loan
agreement before the certificate is surrendered or retirement
payments begin.
Effect of Loan on Certificate Value
If the Certificate is surrendered while there is an outstanding
loan, the surrender value will be reduced by the amount of the loan
outstanding plus pro rata loan interest and the surrender charge.
Upon death of the Participant, the beneficiary will receive the
death benefit reduced by the amount of the loan outstanding plus
<PAGE>
PAGE 22
LOAN PROVISIONS (continued)
pro rata loan interest. If returement payment start while there is
an outstanding loan, the fixed account certificate value will be
reduced by the amount of the loan outstanding plus pro rata loan
interest.
Transfers and Partial Surrenders During Loan Period
While there is an existing loan, transfers or partial surrenders
from the fixed account may be made (if otherwise permitted under
the certificate) but only with fixed account values that exceed an
amount determined by dividing the debt by 93%. In addition, the
certificate value, less any debt, after a partial surrender must be
at least $600.
Tax Status
Loans taken under the terms above together with the Loan Request
and Supplemental Loan Agreement are intended to meet the
requirements under Section 72(p) of the Internal Revenue Code (the
Code) as it now exists or may later be amended. With respect to
remaining so qualified, we reserve the right to modify this
contract to comply with: future changes in the Code; any
regulations or rulings issued under the Code; and any other
requirements imposed by the Internal Revenue Service. We will
provide you notice and copy of any such modifications.
<PAGE>
PAGE 23
ANNUITY PROVISIONS
Settlement
When settlement occurs with respect to a Participant, the
certificate value will be applied to make annuity payments under
one of the Annuity Plans described below. The first payment will
be made as of the retirement date. This date is specified in each
Certificate. Before payments begin we will require satisfactory
proof that the annuitant is alive. We may also require the
Participant to exchange the Certificate for a supplemental contract
which provides the annuity payments.
Change of Retirement Date
A Participant may change the retirement date by written request.
The maximum Retirement Date is the later of:
1. April 1 following the calendar year in which the
annuitant attains age 70 1/2; or
2. such other date which satisfied the minimum
distribution requirements under the Code, its
regulations and/or promulgations by the Internal
Revenue Service; or
3. such other date as agreed upon by us.
Notwithstanding the above, the maximum Retirement Date is the later
of:
1. The certificate anniversary on or preceding the
Participant's 85th birthday; or
2. The 10th certificate anniversary.
Also, if the participant selects a new retirement date, it must be
at least 30 days after written request is received.
Annuity Payment Plans
Subject to the terms of the Plan and the Code, annuity payments may
be made on a fixed-dollar basis, a variable basis or a conbination
of both. The Participant can schedule receipt of annuity payments
according to one of the Plans A through E below or another plan
agreed to by us provided:
1 the Plan selected provides for payments over the life
of the annuitant or over the life of the annuitant and
a designated beneficiary; or
2. the Plan selected provides for payments over a period
which does not exceed the life expectancy of the
annuiitant, or the life expectancy of the annuitant and
a designated beneficiary; and
<PAGE>
PAGE 24
ANNUITY PROVISIONS (continued)
3. the Plan selected meets the minimum death incidental
benefit requirements under the Code.
Plan A - This provides monthly annuity payments during
the lifetime of the annuitant. No payments will be
made after the annuitant dies.
Plan B - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a period of at least
five, ten or fifteen years. You must select the
guaranteed period.
Plan C - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a certain number of
months. We determine the number of months by dividing
the amount applied under this Plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the
lifetime of the annuitant and a joint annuitant. When
either the annuitant or the joint annuitant dies we
will continue to make monthly payments during the
lifetime of the survivor. No payments will be paid
after the death of both the annuitant and joint
annuitant.
Plan E - (Installment for a specified period) This
provides monthly fixed dollar annuity payments for a
period of years. The period of eyars may be no less
than 10 nor more than 30.
By written request at least 30 days before the Retirement Date, the
Participant may select the Plan. If at least 30 days before the
Retirement Date the Participant has not selected a Plan, we will
make fixed-dollar payments according to Plan B with payments
guaranteed for ten years unless this option is contrary to
applicable provisions of the Plan or the Code.
If the amount to be applied to a Plan would not provide an initial
monthly payment of at least $20, we have the right to make a lump
sum payment of the certificate value.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
payment will never be less than the amount of the first payment.
At settlement, the fixed account certificate value will be applied
to the applicable Annuity Table. This will be done in accordance
with the Payment Plan chosen. The amount payable for each $1,000
so applied is shown in Table B on page 17.
<PAGE>
PAGE 25
ANNUITY PROVISIONS (continued)
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of the variable accounts.
Determination of First Variable Annuity Payment
At settlement, the variable account certificate value will be
applied to the applicable Annuity Table. This will be done: (1) on
the valuation date on or next preceding the seventh calendar day
before the retirement date; and (2) in accordance with the Payment
Plan chosen. The amount payable for the first payment for each
$1,000 so applied is shown in Table A on page 16.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first payment vary in amount.
The amount changes with the investment performance of the variable
accounts. The dollar amount of variable annuity payments after the
first is not fixed. It may change from month to month. The dollar
amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is
divided by the value of an annuity unit as of the
valuation date on or next preceding the seventh
calendar day before the retirement date. This result
establishes the fixed number of annuity units for each
monthly annuity payment after the first payment. This
number of annuity units remains fixed during the
annuity payment period.
2. The fixed number of annuity units is multiplied by the
annuity unit value as of the valuation date on or next
preceding the seventh calendar day before the date the
payment is due. This result establishes the dollar
amount of the payment.
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
Exchange of Annuity Units
Annuity units of any variable account may be exchanged for units of
any of the other variable accounts. This may be done no more than
once a year. Once annuity payments start no exchanges may be made
to or from any fixed annuity.
<PAGE>
PAGE 26
TABLE OF SETTLEMENT RATES
Annuity payments for each $1,000 of value applied under a Payment
Plan will be based on our table of settlement rates in effect on
the date of settlement. The amount of hte first monthly variable
annuity payment, based on a 5% assumed investment return, is
guaranteed to be not less than the amount shown in Table A for the
adjusted age of the annuitant(s). The amount of the first and all
subsequent fixed dollar annuity payments is guaranteed to be not
less than the amount shown in Table B for the adjusted age of the
annuitant(s). Adjusted Age shall be equal to the age nearest
birthday minus an "adjustment" depending on the calendar year of
birth of the annuitant as follows:
Calendar Year of Calendar Year of
Annuitant's Birth Adjustment Annuitant's Birth Adjustment
Prior to 1920 0 1945 through 1949 6
1920 through 1924 1 1950 through 1959 7
1925 through 1929 2 1960 through 1969 8
1930 through 1934 3 1970 through 1979 9
1935 through 1939 4 1980 through 1989 10
1940 through 1944 5 After 1989 11
<PAGE>
PAGE 27
<TABLE><CAPTION>
TABLE OF SETTLEMENT RATES (continued)
TABLE A Dollar Amount of First Monthly Variable Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted Age of Joint Annuitant
Adj. Life 5 Years 10 Years 15 Years With Adj. 10 Years 5 Years Same 5 Years 10 Years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 4.69 4.68 4.67 4.67 4.66 40 4.34 4.40 4.45 4.50 4.54
41 4.72 4.72 4.71 4.70 4.69 41 4.36 4.41 4.47 4.52 4.57
42 4.75 4.75 4.74 4.73 4.72 42 4.38 4.43 4.49 4.55 4.60
43 4.79 4.79 4.78 4.76 4.75 43 4.39 4.45 4.52 4.57 4.63
44 4.83 4.83 4.82 4.80 4.79 44 4.41 4.48 4.54 4.60 4.66
45 4.87 4.87 4.86 4.84 4.82 45 4.43 4.50 4.57 4.63 4.69
46 4.91 4.91 4.90 4.88 4.86 46 4.45 4.52 4.60 4.67 4.73
47 4.96 4.96 4.94 4.92 4.91 47 4.47 4.55 4.63 4.70 4.77
48 5.01 5.00 4.99 4.96 4.95 48 4.49 4.57 4.66 4.74 4.81
49 5.06 5.05 5.04 5.01 4.99 49 4.52 4.60 4.69 4.77 4.86
50 5.12 5.11 5.09 5.06 5.04 50 4.54 4.63 4.73 4.82 4.89
51 5.17 5.17 5.14 5.11 5.09 51 4.57 4.67 4.77 4.86 4.94
52 5.23 5.23 5.20 5.16 5.15 52 4.60 4.70 4.81 4.91 4.99
53 5.30 5.29 5.26 5.22 5.20 53 4.63 4.74 4.85 4.95 5.05
54 5.37 5.36 5.33 5.28 5.26 54 4.66 4.77 4.89 5.01 5.11
55 5.44 5.43 5.40 5.34 5.33 55 4.69 4.82 4.94 5.06 5.17
56 5.52 5.51 5.47 5.40 5.39 56 4.73 4.86 4.99 5.12 5.24
57 5.60 5.59 5.54 5.47 5.47 57 4.77 4.91 5.05 5.19 5.31
58 5.69 5.68 5.62 5.54 5.47 58 4.81 4.95 5.11 5.26 5.38
59 5.79 5.77 5.71 5.62 5.62 59 4.85 5.01 5.17 5.33 5.46
60 5.89 5.87 5.80 5.69 5.70 60 4.89 5.06 5.24 5.41 5.55
61 6.00 5.97 5.90 5.78 5.79 61 4.94 5.12 5.31 5.49 5.65
62 6.11 6.08 6.00 5.86 5.89 62 4.99 5.19 5.39 5.58 5.75
63 6.23 6.20 6.11 5.95 5.99 63 5.05 5.26 5.47 5.68 5.85
64 6.37 6.33 6.22 6.04 6.10 64 5.11 5.33 5.56 5.78 5.97
65 6.51 6.47 6.34 6.14 6.21 65 5.17 5.41 5.65 5.89 6.09
66 6.66 6.61 6.47 6.24 6.33 66 5.24 5.49 5.76 6.01 6.23
67 6.82 6.77 6.60 6.34 6.46 67 5.31 5.58 5.86 6.14 6.37
68 7.00 6.93 6.74 6.44 6.60 68 5.38 5.68 5.98 6.28 6.53
69 7.19 7.11 6.89 6.54 6.74 69 5.46 5.78 6.11 6.43 6.70
70 7.39 7.31 7.05 6.65 6.90 70 5.55 5.89 6.25 6.59 6.88
71 7.62 7.51 7.21 6.75 7.06 71 5.65 6.01 6.40 6.77 7.07
72 7.86 7.74 7.38 6.86 7.24 72 5.75 6.14 6.56 6.96 7.29
73 8.12 7.98 7.56 6.96 7.42 73 5.85 6.28 6.73 7.16 7.52
74 8.41 8.23 7.74 7.06 7.63 74 5.97 6.43 6.92 7.39 7.77
75 8.72 8.51 7.93 7.15 7.84 75 6.09 6.59 7.12 7.63 8.04
* Adjusted age of annuitant.
Table A above is based on the "1983 Individual Annuitant Mortality Table A". Settlement rates for any age not shown above,
will be calculated on the same basis as those rates shown in the table above. Such rates will be furnished by us upon
request.
</TABLE>
<PAGE>
PAGE 28
<TABLE><CAPTION>
TABLE OF SETTLEMENT RATES (continued)
TABLE B Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted Age of Joint Annuitant
Adj. Life 5 Years 10 Years 15 Years With Adj. 10 Years 5 Years Same 5 Years 10 Years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 4.04 4.04 4.03 4.02 4.01 40 3.67 3.73 3.79 3.85 3.90
41 4.07 4.07 4.07 4.06 4.04 41 3.69 3.75 3.82 3.88 3.93
42 4.11 4.11 4.10 4.09 4.07 42 3.71 3.78 3.84 3.91 3.96
43 4.15 4.15 4.14 4.13 4.11 43 3.73 3.80 3.87 3.94 3.99
44 4.19 4.19 4.18 4.17 4.15 44 3.75 3.82 3.90 3.97 4.03
45 4.24 4.23 4.23 4.21 4.19 45 3.77 3.85 3.93 4.00 4.07
46 4.28 4.28 4.27 4.25 4.23 46 3.79 3.88 3.96 4.04 4.10
47 4.33 4.33 4.32 4.30 4.27 47 3.82 3.91 3.99 4.08 4.15
48 4.38 4.38 4.37 4.34 4.32 48 3.84 3.94 4.03 4.12 4.19
49 4.44 4.43 4.42 4.39 4.36 49 3.87 3.97 4.07 4.16 4.24
50 4.50 4.49 4.47 4.45 4.41 50 3.90 4.00 4.11 4.20 4.28
51 4.56 4.55 4.53 4.50 4.47 51 3.93 4.04 4.15 4.25 4.34
52 4.62 4.61 4.59 4.56 4.52 52 3.96 4.08 4.19 4.30 4.39
53 4.69 4.68 4.66 4.62 4.58 53 3.99 4.12 4.24 4.35 4.45
54 4.76 4.75 4.72 4.68 4.64 54 4.03 4.16 4.29 4.41 4.51
55 4.84 4.83 4.80 4.74 4.71 55 4.07 4.20 4.34 4.47 4.58
56 4.92 4.91 4.87 4.81 4.77 56 4.10 4.25 4.40 4.53 4.65
57 5.00 4.99 4.95 4.88 4.85 57 4.15 4.30 4.45 4.60 4.72
58 5.09 5.08 5.03 4.96 4.92 58 4.19 4.35 4.52 4.67 4.80
59 5.19 5.17 5.12 5.04 5.00 59 4.24 4.41 4.58 4.75 4.89
60 5.29 5.27 5.22 5.12 5.09 60 4.28 4.47 4.65 4.83 4.98
61 5.40 5.38 5.32 5.21 5.18 61 4.34 4.53 4.73 4.92 5.07
62 5.52 5.50 5.42 5.30 5.27 62 4.39 4.60 4.81 5.01 5.18
63 5.65 5.62 5.53 5.39 5.37 63 4.45 4.67 4.90 5.11 5.29
64 5.78 5.75 5.65 5.49 5.48 64 4.51 4.75 4.99 5.21 5.41
65 5.92 5.89 5.77 5.58 5.59 65 4.58 4.83 5.09 5.33 5.53
66 6.08 6.03 5.90 5.69 5.71 66 4.65 4.92 5.19 5.45 5.67
67 6.24 6.19 6.04 5.79 5.83 67 4.72 5.01 5.30 5.58 5.81
68 6.42 6.36 6.19 5.90 5.97 68 4.80 5.11 5.42 5.72 5.97
69 6.61 6.54 6.34 6.01 6.11 69 4.89 5.21 5.55 5.88 6.14
70 6.81 6.74 6.50 6.12 6.26 70 4.98 5.33 5.69 6.04 6.33
71 7.04 6.95 6.67 6.22 6.42 71 5.07 5.45 5.85 6.22 6.52
72 7.28 7.17 6.84 6.33 6.59 72 5.18 5.58 6.01 6.41 6.74
73 7.54 7.41 7.02 6.44 6.77 73 5.29 5.72 6.19 6.62 6.97
74 7.83 7.67 7.21 6.54 6.97 74 5.41 5.88 6.38 6.84 7.22
75 8.14 7.95 7.40 6.64 7.17 75 5.53 6.04 6.58 7.09 7.49
*Adjusted Age of annuitant.
Table B above is based on the "1983 Individual Annuitant Mortality Table A" assuming an interest rate of 4% per year
compounded annually. Settlement rates for any age not shown above, or any combination of ages not shown above, will be
calculated on the same basis as those rates shown in the table above. Such rates will be furnished by us upon request.
</TABLE>
<TABLE>
<CAPTION>
Amounts shown in the Table below are based on an assumed interest rate of 4% per year compounded annually.
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $ 10.06 17 $ 6.71 24 $ 5.35
11 9.31 18 6.44 25 5.22
12 8.69 19 6.21 26 5.10
13 8.17 20 6.00 27 5.00
14 7.72 21 5.81 28 4.90
15 7.34 22 5.64 29 4.80
16 7.00 23 5.49 30 4.72
</TABLE>
<PAGE>
PAGE 29
GROUP DEFERRED ANNUITY CONTRACT
- - Employer Plan
- - Group Deferred Annuity - Individual Allocation
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - This contract is nonparticipating. Dividends are not payable.
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440
<PAGE>
PAGE 1
GROUP DEFERRED ANNUITY PARTICIPANT CERTIFICATE
- - Employer Plan
- - Group Deferred Annuity - Individual Allocation
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Nonparticipating. Dividends are not payable.
Participant: John Doe
Certificate Number: 9310-Sample
Certificate Date: November 1, 1992
Retirement Date: November 1, 2022
This is a certificate of participation which evidences your (the
Participant) interest in the Group Annuity Contract issued by us,
IDS Life Insurance Company, a Stock Company, Minneapolis,
Minnesota. PLEASE READ YOUR CERTIFICATE CAREFULLY.
We agree: to pay annuity benefits provided in this contract and:
to provide you and your beneficiaries with the rights and benefits
contained in this certificate, all of which are subject to
provisions of the group contract.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE
INVESTMENT RESULTS OF THE SEPARATE ACCOUNTS, ARE VARIABLE AND NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT. SEE PAGE 10 FOR VARIABLE
PROVISIONS.
RIGHT TO CANCEL
You may cancel this certificate by written notice or by telegram
and by returning this certificate before midnight of the 10th day
after you receive it. Notice given by mail and return of the
certificate are effective on being postmarked, properly addressed
and postage prepaid. Our address is IDS Life, IDS Tower 10,
Minneapolis, Minnesota 55440. Within 10 days of receipt of your
notice and this certificate we will return the amount equal to the
sum of: (1) the difference between the purchase payments paid
including any administrative fees or other charges and the amounts
allocated to the fixed and/or variable accounts under the
certificate; and (2) the certificate value on the date the returned
certificate is received by us.
President
/s/ James A. Mitchell
Secretary
/s/ William A. Stoltzmann
<PAGE>
PAGE 2
GUIDE TO CERTIFICATE PROVISIONS
Definitions Important words and meanings/Page 3
General Provisions Certificates; Incontestable;
Benefits based upon incorrect data;
State laws; Periodic reports;
Evidence of survival; Protection of
proceeds; Payments by us; Voting
rights; Changes in plan/Page 5
Ownership and Beneficiary Owner rights; Change of ownership;
Beneficiary; Change of
Beneficiary/Page 6
Payments to Beneficiary Describes options and amounts
payable upon death/Page 7
Purchase Payments Purchase payments; Amounts and
intervals; Payment limits;
Allocation of purchase payments;
Termination of payments/Page 8
Certificate Value Provisions Certificate value; Fixed account
certificate value; Interest to be
credited; Variable accounts
certificate value; Administrative
charge; Premium tax charges;
Transfers of certificate
values/Page 9
Fixed and Variable Accounts Fixed account; Variable accounts;
Investments of the variable
accounts; Valuation of assets;
Accumulation units and values; Net
investment factor; Mortality and
expense risk charge; Annuity unit
value/Page 10
Surrender Provisions Surrender; Surrender value;
Surrender Charge; Rules for
surrender/Page 11
Loan Provisions Loan amount; Loan interest; Loan
period and repayment; Effect of
loan on certificate value;
Transfers and partial surrenders
during loan period; Tax status/Page
13
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 14
<PAGE>
PAGE 3
GUIDE TO CERTIFICATE PROVISIONS (continued)
Table of Settlement Rates Tables showing the amount of the
first variable annuity payment and
fixed annuity payments for the
various payment plans/Page 16
<PAGE>
PAGE 4
CERTIFICATE DATA
Participant: John Doe
Certificate Number: 9310-Sample
Contract Owner: ABC School
Certificate Date: November 1, 1992
Retirement Date: November 1, 2022
Group Deferred Annuity Contract for 403(b) Employer-Sponsored Plans
Accounts Available for Allocation of Purchase Payments:
Variable Purchase Payment
Accounts Mutual Fund Allocation Percentage
F IDS Life Capital Resource Fund 20%
G IDS Life Special Income Fund 20%
H IDS Life Moneyshare Fund 20%
N IDS Life Managed Fund 10%
IZ IDS Life International Equity Fund 10%
JZ IDS Life Aggressive Growth Fund 10%
Fixed Account 10%
Surrender Charge: See page 11.
Surrender Charge
as % of Amount
Certificate Year Surrendered
1 8%
2 8
3 8
4 8
5 7
6 6
7 5
8 4
9 3
10 2
11 1
12 and later 0
Surrender charges will not exceed 8 1/2% of purchase payments with
respect to each certificate.
Administrative Charge: $30 deducted from each certificate's value
at the end of each certificate year. See page 9.
Fixed Account Guaranteed Interest Rate: 4% per year compounded
annually.<PAGE>
PAGE 5
CERTIFICATE DATA (continued)
Loan Interest Rate Charged: 7.4% annually in advance. See page
13.
<PAGE>
PAGE 6
DEFINITIONS
The following words are used often in this certificate. When we
use these words, this is what we mean:
Annuitant - The Participant named in each certificate on whose life
annuity payments will be based.
Participant - An eligible employee or other person named in the
certificate who is entitled to benefits under the Plan as
determined and reported to us by the Owner.
You, Your - The Participant.
We, Our, Us - IDS Life Insurance Company (IDS Life).
Contract Owner - The employer or other organization which owns the
contract under which this certificate is issued.
Participant Enrollment Form - The document or application signed by
each Participant that serves as his or her application for
enrollment under the contract.
Plan - The retirement plan under which the contract is issued and
which meets the particular requirements of Section 403(b) of the
Internal Revenue Code of 1986, as amended ("Code").
Purchase Payment (Payment) - An amount paid to us by or on your
behalf as consideration for the benefits provided by the contract
and related certificates.
Certificate - The document which evidences your coverage under the
contract.
Certificate Year - Any period of one year commencing with the issue
date of the certificate and each anniversary thereafter.
Certificate Anniversary - The first day of any certificate year.
Accumulation Unit - An accumulation unit is an accounting unit of
measure. It is used to calculate your certificate value prior to
settlement.
Annuity Unit - An annuity unit is an accounting unit of measure.
It is used to calculate the value of annuity payments from the
variable accounts on and after the retirement date.
Certificate Date - The date from which certificate anniversaries,
certificate years, and certificate months are determined. Your
certificate date is shown under Certificate Data.
Certificate Value - The sum of the: (1) Fixed Account certificate
value; and (2) Variable Account certificate value.
Retirement Date - The date shown under Certificate Data, on which
annuity payments are to begin. This date may be changed as
provided in this certificate.
<PAGE>
PAGE 7
DEFINITIONS (continued)
Settlement - The application of your certificate value to provide
annuity payments.
Valuation Date - A valuation date is each day the New York Stock
Exchange is open for trading.
Valuation Period - A valuation period is the interval of time
commencing at the close of business on each valuation date and
ending at the close of business on the next valuation date.
Fixed Account - The fixed account is made up of all our assets
other than those in any separate account.
Variable Accounts - The variable accounts are named under
Certificate Data. Each is a separate investment account of ours.
Fixed Annuity - A fixed annuity is an annuity with payments which
are guaranteed by us as to dollar amount during the annuity payment
period.
Variable Annuity - A variable annuity is an annuity with payments
which (1) are not predetermined or guaranteed as to dollar amount;
and (2) vary in amount with the investment experience of one or
more of the variable accounts.
Written Request - A request in writing signed by you or a
Participant and delivered to us.
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PAGE 8
GENERAL PROVISIONS
Certificates
We have issued this individual certificate setting forth in
substance the benefits to which each Participant is entitled under
the contract. Such certificate is not a part of the contract.
Incontestable
This certificate is incontestable from the date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age that is incorrect, benefits will be recalculated on the basis
of the correct data. Any underpayments made by us will be made up
immediately. Any overpayments made by us will be subtracted from
the future payments.
State Laws
The certificate is governed by applicable state laws. The values
and benefits of this contract are at least equal to those required
by such laws.
Periodic Reports
Statements will be sent to you quarterly, or more frequently as the
Code may require, showing the number, type and value of the fixed
amounts and accumulation units credited to your certificate. The
statement shall be accurate as of a date not more than two (2)
months prior to the date of mailing. Statements reflecting
transactions in your certificate as may be required by applicable
laws, rules and regulations will also be sent to you.
Evidence of Survival
Where any payments under this certificate depend on the recipient
or annuitant being alive on a given date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making the payments.
Protection of Proceeds
Payments under this certificate are not assignable by any
beneficiary prior to the time they are due. To the extent allowed
by law, payments are not subject to the claims of creditors or to
legal process.
Payments By Us
All sums payable by us are payable at our home office. Any payment
of a variable annuity or surrender based on the variable contract
value shall be payable only from the variable accounts.
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PAGE 9
GENERAL PROVISIONS (continued)
Voting Rights
We will vote mutual fund shares held by the variable accounts at
meetings of shareholders of the fund(s), in accordance with
instructions received from the Owner, Participants, or other
authorized party. Notice will be given to each person who may be
entitled to vote on any matter. Such notice will specify the
matters upon which the person may be entitled to vote and the
method of determining the number of votes which may be cast at any
such meeting. Fund shares held in each variable account for which
no timely voting instructions are received and fund shares that are
not otherwise attributable to Owners, Participants, or other
authorized party will be voted by us in the same proportion as the
shares for which voting instructions are received.
Changes in Plan
Evidence may be requested that the Plan meets the requirements of
qualification under Section 403(b) of the Code. The contract owner
agrees to provide notification immediately if, at any time, the
Plan fails to meet the requirements of that Section of the Code.
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PAGE 10
OWNERSHIP AND BENEFICIARY
Participant's Rights
Unless otherwise provided in this contract, you may exercise all
rights and privileges provided in this contract or allowed by us.
Your rights under the contract are subject to the terms of the
Owner's Plan.
Change of Ownership (Restricted)
Your rights under the contract and certificate may not be sold,
assigned, transferred, discounted or pledged as collateral for a
loan or as security for the performance of an obligation or for any
other purpose to any person other than to us. Your vested rights
under the contract and certificate are nonforfeitable. The
contract and certificate or the rights thereunder may not be
transferred to any person other than to us.
Beneficiary
Beneficiaries are those you name in accordance with applicable
provisions of the Plan and the Code, in a form satisfactory to us,
to receive benefits of the certificate if you die while this
certificate is in force.
Only those beneficiaries who are living when death benefits become
payable may share in the benefits, if any. If no beneficiary is
then living, we will pay the benefits to the Participant's estate.
Change of Beneficiary
The Participant may change the beneficiary anytime while the
annuitant is living by satisfactory written request. Once the
change is recorded, it will take effect as of the date of the
request, subject to any action taken or payment made before the
recording.
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PAGE 11
PAYMENTS TO BENEFICIARY
Death Benefit Before the Retirement Date
If the Participant dies before the retirement date and age 75 while
the certificate is in force we will pay to the beneficiary the
greater of:
1. the certificate value; or
2. the purchase payments paid less any amounts
surrendered.
If you die before the retirement date and on or after your 75th
birthday, while the certificate is in force, we will pay to the
beneficiary the certificate value.
The above amount will be payable in a lump sum upon the receipt of
due proof of death. The beneficiary may elect to receive payment
anytime within 5 years after the date of death.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of
death; and
3. the plan provides payments over a period which does not
exceed the life of the beneficiary, or the life
expectancy of the beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the certificate value as of the valuation date on
or next following the date on which due proof of death is received
at our home office.
Spouse Option to Continue Contract Upon Annuitant's Death
If you die prior to the retirement date, your spouse who is
designated as sole beneficiary may elect in writing to forego
receipt of the death benefit and instead continue the certificate
in force. The election by the spouse must be made within 60 days
after we receive due proof of death. The spouse may not make
additional purchase payments to the certificate.
In this event, the retirement date may not be later than the April
1 following the calendar year in which you would have attained age
70 1/2, or such other date which allows the spouse to satisfy the
minimum distribution requirements under the Code, its regulations
and/or promulgations by the Internal Revenue Service.
<PAGE>
PAGE 12
PAYMENTS TO BENEFICIARY (continued)
Annuitant's Death After the Retirement Date
If the annuitant dies after the retirement date, the amount
payable, if any, will be as provided in the Annuity Payment Plan
then in effect.
<PAGE>
PAGE 13
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments made by you, or on your behalf,
for this certificate and the benefits it provides. Purchase
payments must be paid or mailed to us or to an authorized agent.
If requested, we'll give you a receipt for your purchase payments.
Upon payment to us, purchase payments become our property.
Net purchase payments are that part of the purchase payments
applied to the certificate value. A net purchase payment is equal
to the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date a Participant's certificate
terminates by surrender or otherwise; or (2) the date on which
annuity payments begin for the Participant.
Subject to the Payment Limits Provision you may: (1) stop and/or
restart purchase payments; or (2) increase or decrease the amount
of purchase payments; or (3) change the interval of purchase
payments.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments in the
first or later years may not exceed the applicable limits allowed
under the Code and Plan.
Minimum Purchase Payments - Upon issue of a Certificate, a purchase
payment intended as a Single Purchase Payment must be at least
$1,000. If you intend to make installment purchase payments such
payments, on an annualized basis, must be at least equal to $300.
We also reserve the right to cancel a certificate if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 24 months; and
(2) less than $600 in purchase payments have been paid under the
certificate. In this event we will give you 30 days written notice
of our intent to cancel the certificate. Upon such cancellation we
will pay the certificate value in one sum. The certificate will
then terminate.
Allocation of Purchase Payments
You shall instruct us on how purchase payments are to be allocated
among the fixed account and variable accounts. Choices for each
account may be made in any whole percent from 0% to 100% as long as
the total adds up to 100%. Your allocation instructions as of the
certificate date will be shown under Certificate Data. By written
request, or by another method agreed upon, you may change your
choice of accounts or percentages. The first net purchase payment
will be allocated as of the end of the valuation period during
<PAGE>
PAGE 14
PURCHASE PAYMENTS (continued)
which we make an affirmative decision to issue the certificate.
Net purchase payments after the first will be allocated as of the
end of the valuation period during which we receive the payment at
our home office.
Termination of Payments
If purchase payments are terminated for any reason prior to the
retirement date, you may elect to surrender the certificate value
in accordance with any applicable provisions of the Contract, the
Plan or the Code or leave the certificate in force under the
contract until the certificate value is surrendered, paid upon
death or applied to an annuity payment plan. When the certificate
remains in force under the contract, any monies allocated to the
variable accounts will continue to reflect the net investment
experience of the funds. If the total certificate value becomes
less than $600, we reserve the right to pay the certificate value
to you in a lump sum.
You also may transfer the certificate under a group deferred
annuity contract held by another contract owner that is issued by
us under the same policy form.
<PAGE>
PAGE 15
CERTIFICATE VALUE PROVISIONS
Certificate Value
Your certificate value at any time is the sum of : (1) the Fixed
Account certificate value; and (2) the Variable Account certificate
value.
If: (1) part or all of the certificate value is surrendered; or (2)
charges described herein are made against the certificate value;
then a number of accumulation units from the variable accounts and
an amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed or
variable accounts that are specified. Otherwise, the number of
units from the variable accounts and the amount from the fixed
account will be deducted in the same proportion that your interest
in each bears to the total certificate value.
Fixed Account Certificate Value
The fixed account certificate value at any time will be: (1) the
sum of all amounts credited to the fixed account under the
certificate; less (2) any amounts deducted for charges or
surrenders.
Interest to be Credited
We will credit interest to the fixed account certificate value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine
from time to time. However, we guarantee that the rate will not be
less than the Guaranteed Interest Rate shown under Contract Data.
Variable Account Certificate Value
The variable account certificate value at any time will be: (1) the
sum of the value of all variable account accumulation units under
the certificate resulting from purchase payments so allocated, or
transfers among the variable and fixed accounts; less (2) any units
deducted for charges or surrenders.
Administrative Charge
We charge a fee for establishing and maintaining our records for
each certificate under the contract. The charge is shown under
Certificate Data and is deducted from the certificate value at the
end of each certificate year or, if earlier, when the certificate
is surrendered. The charge does not apply after annuity payments
begin.
Premium Tax Charges
We reserve the right to deduct an amount from the certificate value
for any applicable premium taxes not previously deducted.
<PAGE>
PAGE 16
CERTIFICATE VALUE PROVISIONS (continued)
Transfers of Certificate Values
While a certificate is in force prior to the settlement date,
transfers of certificate account values may be made as outlined
below:
1. Subject to provisions of the Plan, you may transfer all
or part of the values held in one or more of the
variable accounts to another one or more of the
variable accounts. Subject to item 2, you may also
transfer values held in one or more of the variable
accounts to the fixed account.
2. Once per year subject to provisions of the Plan, you
may transfer values from the fixed account to one or
more of the variable accounts. If such a transfer is
made, no transfers from a variable account to the fixed
account may be made until the next eligible period as
defined in the Plan.
You may make a transfer by written request. Transfer requests may
also be made according to telephone procedures or automated
transfer procedures that are then currently in effect, if any.
There is no fee or charge for these transfers. However, the
minimum transfer amount is $250, or if less, the entire value in
the account from which the transfer is being made. Smaller
minimums may apply to automated transfer procedures. This transfer
privilege may be suspended or modified by us at any time.
<PAGE>
PAGE 17
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all of
our assets other than: (1) those in the variable accounts; and (2)
those in any other segregated asset account.
The Variable Accounts
The variable accounts are separate investment accounts of ours.
They are named under Certificate Data. We have allocated a part of
our assets for this and certain other contracts to the variable
accounts. Such assets remain our property. However, they may not
be charged with the liabilities from any other business in which we
may take part.
Investments of the Variable Accounts
Purchase payments applied to the variable accounts will be
allocated as specified by you. Each variable account will buy, at
net asset value, shares of the fund shown for that account under
Contract Data or as later added or changed.
Valuation of Assets
Mutual fund shares in the variable accounts will be valued at their
net asset value.
Variable Account Accumulation Units
The number of accumulation units for each of the variable accounts
is found by dividing: (1) the net amount allocated to the account;
by (2) the accumulation unit value for the account for the
valuation period during which we received the purchase payment.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable accounts
was arbitrarily set at $1 when the first mutual fund shares were
bought. The value for any later valuation period is found as
follows:
The accumulation unit value for each variable account
for the last prior valuation period is multiplied by
the net investment factor for the same account for the
next following valuation period. The result is the
accumulation unit value. The value of an accumulation
unit may increase or decrease from one valuation period
to the next.
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable account from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.<PAGE>
PAGE 18
FIXED AND VARIABLE ACCOUNTS (continued)
The net investment factor for any such account for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund
held in the variable account determined at the end
of the current valuation period; plus
b. the per share amount of any dividend or capital
gain distributions made by the mutual fund held in
the variable account, if the "ex-dividend" date
occurs during the current valuation period.
(2) is the net asset value per share of the mutual fund
held in the variable account, determined at the end of
the last prior valuation period.
(3) is a factor representing the mortality and expense risk
charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable accounts equal, on an
annual basis, to 1.00% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under contracts of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction is:
(1) made from each variable account; and (2) computed on a daily
basis.
Annuity Unit Value
The value of an annuity unit for each variable account was
arbitrarily set at $1 when the first mutual funds were bought. The
value for any later valuation period is found as follows:
1. The annuity unit for each variable account for the last
prior valuation period is multiplied by the net
investment factor for the account for the valuation
period for which the annuity unit value is being
calculated.
2. The result is multiplied by an interest factor. This
is done to neutralize the assumed investment rate which
is built into the annuity tables on page 16.
<PAGE>
PAGE 19
SURRENDER PROVISIONS
Surrender
By written request and subject to requirements under the Plan and
the rules below you may:
1. surrender the certificate for the total surrender
value; or
2. partially surrender the certificate for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the certificate value;
2. minus the administrative charge;
3. minus any surrender charge.
Surrender Charge
The surrender charge shall apply to surrenders by each participant
and is based on:
1. the amount surrendered; and
2. the certificate year in which a surrender is made.
The schedule of surrender charges is shown under Contract Data.
Surrender charges shall not apply if amounts are distributed due to
the following:
1. your retirement under the Plan on or after Age 55, or
2. your death, or
3. settlement of the certificate under an Annuity Payment
Plan as described herein.
Rules for Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method
agreed to by us: (a) while the certificate is in force;
and (b) prior to the earlier of the retirement date or
the date of your death.
2. Unless we agree otherwise, you must surrender an amount
equal to at least $250. The certificate value after a
partial surrender must be at least $600.
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PAGE 20
SURRENDER PROVISIONS (continued)
3. The amount surrendered, less any charges, will normally
be paid within seven days of the receipt of written
request and the certificate, if required. For
surrenders from the fixed account, we have the right to
defer payment for up to 6 months from the date the
request is received.
4. For partial surrenders, if you do not specify from
which accounts the surrender is to be made, the
surrender will be made from the variable accounts and
fixed account in the same proportion as your interest
in each bears to the certificate value.
5. Any amounts surrendered and charges which may apply can
not be repaid.
Upon surrender for the full surrender value the certificate will
terminate. We may require return of the certificate to us before
we pay the full surrender value.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable accounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is
restricted; or
3. When an emergency exists as a result of which: (a)
disposal of securities held in the variable accounts is
not reasonably practicable; or (b) it is not reasonably
practicable to fairly determine the value of the net
assets of the variable account; or
4. During any other period when the Securities and
Exchange Commission, by order, so permits for the
protection of security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
Surrender Restrictions Before Age 50 1/2
Section 403(b) of the Code prohibits any distributions from the
contract or certificate unless you have:
1. attained age 59 1/2; or
2. separated from service of the employer; or
3. died; or
<PAGE>
PAGE 21
SURRENDER PROVISIONS (continued)
4. become disabled (as defined in Section 72(m)(7) of the
Code; or
5. encountered hardship (within the meaning of Section
403(b) of the Code;
and then only such amounts that the Code may provide.
We shall require satisfactory written proof of the event(s) in
items 1 through 5 above prior to any distribution.
<PAGE>
PAGE 22
LOAN PROVISIONS
Loan Amount
We may make loans from the Fixed Account Certificate Value to you
at any time before retirement payments begin. The security for the
loan will be the Fixed Account Certificate Value. A loan cannot
exceed $50,000 or one-half of the Certificate Value, whichever is
less. In no event will such amount exceed 93% of the Fixed Account
Certificate Value. If you have taken a plan loan in the past, the
$50,000 limit may be reduced. The reduction equals $50,000 minus
the excess, if any of (a) the highest loan balances owed during the
prior one-year period, over (b) the balances currently owed. If
one-half of the Certificate Value is less than $10,000, we may make
a loan in such other amount provided in the loan agreement and
permitted under applicable law. Loans of less than $600 will not
be permitted.
Loan Interest
During the loan term, the fixed account certificate value equal to
the value of the loan will continue to earn interest at a rate of
4% per year compounded annually in lieu of the current interest
rate. Loan interest will be charged on the outstanding loan
balance at a rate of 7.4% per year payable annually in advance,
unless a different rate is required by applicable federal law. In
no event will the rate exceed the maximum rate prescribed for
contracts/certificates of this type in the state where the
certificate is issued.
Loan Period and Repayment
Loans plus interest must be repaid within 5 years unless the loan
request and supplemental loan agreement specify that the loan
period will be 10 years and is agreed to by us.
Loan repayments will be due at the times set forth in the loan
agreement. If the loan balance outstanding, plus interest, is not
repaid by the end of the loan period or prior to surrender or
settlement of the certificate, the loan balance, plus interest and
any surrender charge, will be deducted from the Fixed Account
Certificate Value and paid to us. The loan balance plus interest
will be treated as a surrender. (Caution: such a surrender before
age 59 1/2 may result in a tax penalty.)
The loan may be repaid in full or in part as provided in the loan
agreement before the certificate is surrendered or retirement
payments begin.
Effect of Loan on Certificate Value
If the Certificate is surrendered while there is an outstanding
loan, the surrender value will be reduced by the amount of the loan
outstanding plus pro rata loan interest and the surrender charge.
Upon your death, the beneficiary will receive the death benefit
reduced by the amount of the loan outstanding plus pro rata loan
<PAGE>
PAGE 23
LOAN PROVISIONS (continued)
interest. If retirement payments start while there is an
outstanding loan, the Fixed Account Certificate Value will be
reduced by the amount of the loan outstanding plus pro rata loan
interest.
Transfers and Partial Surrenders During Loan Period
While there is an existing loan, transfers or partial surrenders
from the fixed account may be made (if otherwise permitted under
the certificate) but only with fixed account values that exceed an
amount determined by dividing the debt by 93%. In addition, the
certificate value, less any debt, after a partial surrender must be
at least $600.
Tax Status
Loans taken under the terms above together with the Loan Request
and Supplemental Loan Agreement are intended to meet the
requirements under Section 72(p) of the Internal Revenue Code (the
Code) as it now exists or may later be amended. With respect to
remaining so qualified, we reserve the right to modify this
contract to comply with: future changes in the Code; any
regulations or rulings issued under the Code; and any other
requirements imposed by the Internal Revenue Service. We will
provide you notice and copy of any such modifications.
<PAGE>
PAGE 24
ANNUITY PROVISIONS
Settlement
When settlement occurs, the certificate value will be applied to
make annuity payments under one of the Annuity Plans described
below. The first payment will be made as of the retirement date.
This date is specified in each Certificate. Before payments begin
we will require satisfactory proof that the annuitant is alive. We
may also require you to exchange the Certificate for a supplemental
contract which provides the annuity payments.
Change of Retirement Date
You may change the retirement date by written request. The maximum
Retirement Date is the later of:
1. April 1 following the calendar year in which the
annuitant attains age 70 1/2; or
2. such other date which satisfied the minimum
distribution requirements under the Code, its
regulations and/or promulgations by the Internal
Revenue Service; or
3. such other date as agreed upon by us.
Notwithstanding the above, the maximum Retirement Date is the later
of:
1. The certificate anniversary on or preceding your 85th
birthday; or
2. the 10th certificate anniversary.
Also, if you select a new retirement date, it must be at least 30
days after written request is received.
Annuity Payment Plans
Subject to the terms of the Plan and the Code, annuity payments may
be made on a fixed-dollar basis, a variable basis or a combination
of both. The Participant can schedule receipt of annuity payments
according to one of the Plans A through E below or another plan
agreed to by us provided:
1 the Plan selected provides for payments over the life
of the annuitant or over the life of the annuitant and
a designated beneficiary; or
2. the Plan selected provides for payments over a period
which does not exceed the life expectancy of the
annuitant, or the life expectancy of the annuitant and
a designated beneficiary; and
3. the Plan selected meets the minimum death incidental
benefit requirements under the Code.
<PAGE>
PAGE 25
ANNUITY PROVISIONS (continued)
Plan A - This provides monthly annuity payments during
the lifetime of the annuitant. No payments will be
made after the annuitant dies.
Plan B - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a period of at least
five, ten or fifteen years. You must select the
guaranteed period.
Plan C - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a certain number of
months. We determine the number of months by dividing
the amount applied under this Plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the
lifetime of the annuitant and a joint annuitant. When
either the annuitant or the joint annuitant dies we
will continue to make monthly payments during the
lifetime of the survivor. No payments will be paid
after the death of both the annuitant and joint
annuitant.
Plan E - (Installment for a specified period) This
provides monthly fixed dollar annuity payments for a
period of years. The period of years may be no less
than 10 nor more than 30.
By written request at least 30 days before the Retirement Date, you
may select the Plan. If at least 30 days before the Retirement
Date you have not selected a Plan, we will make fixed-dollar
payments according to Plan B with payments guaranteed for ten years
unless this option is contrary to applicable provisions of the Plan
or the Code.
If the amount to be applied to a Plan would not provide an initial
monthly payment of at least $20, we have the right to make a lump
sum payment of the certificate value.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
payment will never be less than the amount of the first payment.
At settlement, the fixed account certificate value will be applied
to the applicable Annuity Table. This will be done in accordance
with the Payment Plan chosen. The amount payable for each $1,000
so applied is shown in Table B on page 17.
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of the variable accounts.<PAGE>
PAGE 26
ANNUITY PROVISIONS (continued)
Determination of First Variable Annuity Payment
At settlement, the variable account certificate value will be
applied to the applicable Annuity Table. This will be done: (1) on
the valuation date on or next preceding the seventh calendar day
before the retirement date; and (2) in accordance with the Payment
Plan chosen. The amount payable for the first payment for each
$1,000 so applied is shown in Table A on page 16.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first payment vary in amount.
The amount changes with the investment performance of the variable
accounts. The dollar amount of variable annuity payments after the
first is not fixed. It may change from month to month. The dollar
amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is
divided by the value of an annuity unit as of the
valuation date on or next preceding the seventh
calendar day before the retirement date. This result
establishes the fixed number of annuity units for each
monthly annuity payment after the first payment. This
number of annuity units remains fixed during the
annuity payment period.
2. The fixed number of annuity units is multiplied by the
annuity unit value as of the valuation date on or next
preceding the seventh calendar day before the date the
payment is due. This result establishes the dollar
amount of the payment.
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
Exchange of Annuity Units
Annuity units of any variable account may be exchanged for units of
any of the other variable accounts. This may be done no more than
once a year. Once annuity payments start no exchanges may be made
to or from any fixed annuity.
<PAGE>
PAGE 27
TABLE OF SETTLEMENT RATES
Annuity payments for each $1,000 of value applied under a Payment
Plan will be based on our table of settlement rates in effect on
the date of settlement. The amount of the first monthly variable
annuity payment, based on a 5% assumed investment return, is
guaranteed to be not less than the amount shown in Table A for the
adjusted age of the annuitant(s). The amount of the first and all
subsequent fixed dollar annuity payments is guaranteed to be not
less than the amount shown in Table B for the adjusted age of the
annuitant(s). Adjusted Age shall be equal to the age nearest
birthday minus an "adjustment" depending on the calendar year of
birth of the annuitant as follows:
Calendar Year of Calendar Year of
Annuitant's Birth Adjustment Annuitant's Birth Adjustment
Prior to 1920 0 1945 through 1949 6
1920 through 1924 1 1950 through 1959 7
1925 through 1929 2 1960 through 1969 8
1930 through 1934 3 1970 through 1979 9
1935 through 1939 4 1980 through 1989 10
1940 through 1944 5 After 1989 11
<PAGE>
PAGE 28
<TABLE><CAPTION>
TABLE OF SETTLEMENT RATES (continued)
TABLE A Dollar Amount of First Monthly Variable Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted Age of Joint Annuitant
Adj. Life 5 Years 10 Years 15 Years With Adj. 10 Years 5 Years Same 5 Years 10 Years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 4.69 4.68 4.67 4.67 4.66 40 4.34 4.40 4.45 4.50 4.54
41 4.72 4.72 4.71 4.70 4.69 41 4.36 4.41 4.47 4.52 4.57
42 4.75 4.75 4.74 4.73 4.72 42 4.38 4.43 4.49 4.55 4.60
43 4.79 4.79 4.78 4.76 4.75 43 4.39 4.45 4.52 4.57 4.63
44 4.83 4.83 4.82 4.80 4.79 44 4.41 4.48 4.54 4.60 4.66
45 4.87 4.87 4.86 4.84 4.82 45 4.43 4.50 4.57 4.63 4.69
46 4.91 4.91 4.90 4.88 4.86 46 4.45 4.52 4.60 4.67 4.73
47 4.96 4.96 4.94 4.92 4.91 47 4.47 4.55 4.63 4.70 4.77
48 5.01 5.00 4.99 4.96 4.95 48 4.49 4.57 4.66 4.74 4.81
49 5.06 5.05 5.04 5.01 4.99 49 4.52 4.60 4.69 4.77 4.86
50 5.12 5.11 5.09 5.06 5.04 50 4.54 4.63 4.73 4.82 4.89
51 5.17 5.17 5.14 5.11 5.09 51 4.57 4.67 4.77 4.86 4.94
52 5.23 5.23 5.20 5.16 5.15 52 4.60 4.70 4.81 4.91 4.99
53 5.30 5.29 5.26 5.22 5.20 53 4.63 4.74 4.85 4.95 5.05
54 5.37 5.36 5.33 5.28 5.26 54 4.66 4.77 4.89 5.01 5.11
55 5.44 5.43 5.40 5.34 5.33 55 4.69 4.82 4.94 5.06 5.17
56 5.52 5.51 5.47 5.40 5.39 56 4.73 4.86 4.99 5.12 5.24
57 5.60 5.59 5.54 5.47 5.47 57 4.77 4.91 5.05 5.19 5.31
58 5.69 5.68 5.62 5.54 5.47 58 4.81 4.95 5.11 5.26 5.38
59 5.79 5.77 5.71 5.62 5.62 59 4.85 5.01 5.17 5.33 5.46
60 5.89 5.87 5.80 5.69 5.70 60 4.89 5.06 5.24 5.41 5.55
61 6.00 5.97 5.90 5.78 5.79 61 4.94 5.12 5.31 5.49 5.65
62 6.11 6.08 6.00 5.86 5.89 62 4.99 5.19 5.39 5.58 5.75
63 6.23 6.20 6.11 5.95 5.99 63 5.05 5.26 5.47 5.68 5.85
64 6.37 6.33 6.22 6.04 6.10 64 5.11 5.33 5.56 5.78 5.97
65 6.51 6.47 6.34 6.14 6.21 65 5.17 5.41 5.65 5.89 6.09
66 6.66 6.61 6.47 6.24 6.33 66 5.24 5.49 5.76 6.01 6.23
67 6.82 6.77 6.60 6.34 6.46 67 5.31 5.58 5.86 6.14 6.37
68 7.00 6.93 6.74 6.44 6.60 68 5.38 5.68 5.98 6.28 6.53
69 7.19 7.11 6.89 6.54 6.74 69 5.46 5.78 6.11 6.43 6.70
70 7.39 7.31 7.05 6.65 6.90 70 5.55 5.89 6.25 6.59 6.88
71 7.62 7.51 7.21 6.75 7.06 71 5.65 6.01 6.40 6.77 7.07
72 7.86 7.74 7.38 6.86 7.24 72 5.75 6.14 6.56 6.96 7.29
73 8.12 7.98 7.56 6.96 7.42 73 5.85 6.28 6.73 7.16 7.52
74 8.41 8.23 7.74 7.06 7.63 74 5.97 6.43 6.92 7.39 7.77
75 8.72 8.51 7.93 7.15 7.84 75 6.09 6.59 7.12 7.63 8.04
* Adjusted age of annuitant.
Table A above is based on the "1983 Individual Annuitant Mortality Table A". Settlement rates for any age not shown above,
will be calculated on the same basis as those rates shown in the table above. Such rates will be furnished by us upon
request.
</TABLE>
<PAGE>
PAGE 29
<TABLE><CAPTION>
TABLE OF SETTLEMENT RATES (continued)
TABLE B Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted Age of Joint Annuitant
Adj. Life 5 Years 10 Years 15 Years With Adj. 10 Years 5 Years Same 5 Years 10 Years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 4.04 4.04 4.03 4.02 4.01 40 3.67 3.73 3.79 3.85 3.90
41 4.07 4.07 4.07 4.06 4.04 41 3.69 3.75 3.82 3.88 3.93
42 4.11 4.11 4.10 4.09 4.07 42 3.71 3.78 3.84 3.91 3.96
43 4.15 4.15 4.14 4.13 4.11 43 3.73 3.80 3.87 3.94 3.99
44 4.19 4.19 4.18 4.17 4.15 44 3.75 3.82 3.90 3.97 4.03
45 4.24 4.23 4.23 4.21 4.19 45 3.77 3.85 3.93 4.00 4.07
46 4.28 4.28 4.27 4.25 4.23 46 3.79 3.88 3.96 4.04 4.10
47 4.33 4.33 4.32 4.30 4.27 47 3.82 3.91 3.99 4.08 4.15
48 4.38 4.38 4.37 4.34 4.32 48 3.84 3.94 4.03 4.12 4.19
49 4.44 4.43 4.42 4.39 4.36 49 3.87 3.97 4.07 4.16 4.24
50 4.50 4.49 4.47 4.45 4.41 50 3.90 4.00 4.11 4.20 4.28
51 4.56 4.55 4.53 4.50 4.47 51 3.93 4.04 4.15 4.25 4.34
52 4.62 4.61 4.59 4.56 4.52 52 3.96 4.08 4.19 4.30 4.39
53 4.69 4.68 4.66 4.62 4.58 53 3.99 4.12 4.24 4.35 4.45
54 4.76 4.75 4.72 4.68 4.64 54 4.03 4.16 4.29 4.41 4.51
55 4.84 4.83 4.80 4.74 4.71 55 4.07 4.20 4.34 4.47 4.58
56 4.92 4.91 4.87 4.81 4.77 56 4.10 4.25 4.40 4.53 4.65
57 5.00 4.99 4.95 4.88 4.85 57 4.15 4.30 4.45 4.60 4.72
58 5.09 5.08 5.03 4.96 4.92 58 4.19 4.35 4.52 4.67 4.80
59 5.19 5.17 5.12 5.04 5.00 59 4.24 4.41 4.58 4.75 4.89
60 5.29 5.27 5.22 5.12 5.09 60 4.28 4.47 4.65 4.83 4.98
61 5.40 5.38 5.32 5.21 5.18 61 4.34 4.53 4.73 4.92 5.07
62 5.52 5.50 5.42 5.30 5.27 62 4.39 4.60 4.81 5.01 5.18
63 5.65 5.62 5.53 5.39 5.37 63 4.45 4.67 4.90 5.11 5.29
64 5.78 5.75 5.65 5.49 5.48 64 4.51 4.75 4.99 5.21 5.41
65 5.92 5.89 5.77 5.58 5.59 65 4.58 4.83 5.09 5.33 5.53
66 6.08 6.03 5.90 5.69 5.71 66 4.65 4.92 5.19 5.45 5.67
67 6.24 6.19 6.04 5.79 5.83 67 4.72 5.01 5.30 5.58 5.81
68 6.42 6.36 6.19 5.90 5.97 68 4.80 5.11 5.42 5.72 5.97
69 6.61 6.54 6.34 6.01 6.11 69 4.89 5.21 5.55 5.88 6.14
70 6.81 6.74 6.50 6.12 6.26 70 4.98 5.33 5.69 6.04 6.33
71 7.04 6.95 6.67 6.22 6.42 71 5.07 5.45 5.85 6.22 6.52
72 7.28 7.17 6.84 6.33 6.59 72 5.18 5.58 6.01 6.41 6.74
73 7.54 7.41 7.02 6.44 6.77 73 5.29 5.72 6.19 6.62 6.97
74 7.83 7.67 7.21 6.54 6.97 74 5.41 5.88 6.38 6.84 7.22
75 8.14 7.95 7.40 6.64 7.17 75 5.53 6.04 6.58 7.09 7.49
*Adjusted Age of annuitant.
Table B above is based on the "1983 Individual Annuitant Mortality Table A" assuming an interest rate of 4% per year
compounded annually. Settlement rates for any age not shown above, or any combination of ages not shown above, will be
calculated on the same basis as those rates shown in the table above. Such rates will be furnished by us upon request.
</TABLE>
<TABLE>
<CAPTION>
Amounts shown in the Table below are based on an assumed interest rate of 4% per year compounded annually.
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $ 10.06 17 $ 6.71 24 $ 5.35
11 9.31 18 6.44 25 5.22
12 8.69 19 6.21 26 5.10
13 8.17 20 6.00 27 5.00
14 7.72 21 5.81 28 4.90
15 7.34 22 5.64 29 4.80
16 7.00 23 5.49 30 4.72
</TABLE>
<PAGE>
PAGE 30
GROUP DEFERRED ANNUITY PARTICIPANT CERTIFICATE
- - Employer Plan
- - Group Deferred Annuity - Individual Allocation
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Nonparticipating. Dividends are not payable.
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440
<PAGE>
PAGE 1
CERTIFICATE OF INCORPORATION
OF
IDS LIFE INSURANCE COMPANY
We, the undersigned, for the purpose of forming an
insurance corporation under and pursuant to the provisions of the
Minnesota Statutes, Chapter 300 relating thereto, and of any
amendments thereof, do hereby associate ourselves as a body
corporate and do hereby adopt the following Articles of
Incorporation:
ARTICLE I
The name of this Corporation shall be IDS Life
Insurance Company.
ARTICLE II
The purposes of and general nature of its business
shall be:
(a) To engage in the general business of a life
insurance company, and to effect all forms, types,
variations and combinations of life insurance,
endowment or annuity contracts or policies, on a
group or individual basis, for the payment of
money in a single sum or in installments upon the
contingencies of death, disability or
survivorship. To provide in such policies or
contracts supplemental thereto, for additional
benefits in the event of the death of the insured
by accidental means, total and permenent [sic]
disability of the insured, or specific
dismemberment or disablement suffered by the
insured.
(b) To engage in the general business of an accident
and health insurance company, for the purpose of
effecting insurance against loss or damage by the
sickness, bodily injury or death by accident of
the assured or his dependents, on a group or
individual basis; to effect all forms, types,
variations and combinations of policies or
contracts of insurance providing for indemnities
in the event of death, sickness or disability.
(c) To effect contracts of reinsurance or co-insurance
of any individual or group risk underwritten by
this Corporation, to reinsure risks of this
Corporation or any part thereof with any other
company or to reinsure the whole of or any portion
of the risks of any other company.
(d) To effect all other contracts of insurance
authorized by clauses (4) and (5)(a) of
subdivision 1 of Section 60.29 of Minnesota
Statutes.
<PAGE>
PAGE 2
(e) To have one or more offices and to conduct
business in this state or elsewhere.
(f) To acquire, hold and dispose of shares of stock,
notes, bonds or other evidences of indebtedness or
securities of any other corporation or
corporations.
(g) To transact all business and to do all other
things necessary or incidental to the foregoing
purposes.
ARTICLE III
The duration of this Corporation shall be perpetual.
ARTICLE IV
The principal place of transacting the business of this
Corporation shall be the City of Minneapolis, State of Minnesota.
ARTICLE V
2/9/72
10/18/85
The capital stock of this Corporation shall consist of
One Hundred Thousand (100,000) shares of stock with a par value of
Thirty Dollars ($30.00) per share. The amount of stated capital of
this Corporation shall be Three Million Dollars ($3,000,000).
ARTICLE VI
(1) The general management of this Corporation shall
be vested in a Board of Directors.
(2) The names and post office addresses of the members
of the first Board of Directors are respectively as follows:
Joseph M. Fitzsimmons 800 Investors Building
Minneapolis 2, Minnesota
John W. McCartin 800 Investors Building
Minneapolis 2, Minnesota
Virgil C. Sullivan 800 Investors Building
Minneapolis 2, Minnesota
A. Edward Archibald 800 Investors Building
Minneapolis 2, Minnesota
Harold E. Miller, M.D. 1531 Medical Arts Building
Minneapolis 2, Minnesota
Said named Directors shall serve as such until the
first annual meeting of the shareholders of the Corporation and
until their successors have been duly elected and qualified.
<PAGE>
PAGE 3
ARTICLE VII
The first Board of Directors of this Corporation shall
have full power and authority to make and adopt By-Laws for the
government of this Corporation and its affairs as they may deem
advisable or necessary and as shall not be inconsistent with the
provisions of these Articles. The By-Laws may be amended or
altered by the shareholders at any regular or special meeting
called therefor.
ARTICLE VIII
These Articles of Incorporation may be amended by the
affirmative vote of the holders of a majority of the voting power
of the capital stock.
ARTICLE IX
The first meeting of the Corporation shall be a meeting
of the Incorporators and Subscribers to the capital stock of the
Corporation. Three days' written notice of such meeting shall be
given unless there is a written Waiver of Notice.
ARTICLE X
The names and post office addresses of the
Incorporators are as follows:
Lloyd J. Muehlberg 800 Investors Building
Minneapolis 2, Minnesota
Joseph F. Grinnell 800 Investors Building
Minneapolis 2, Minnesota
Edward M. Burke 800 Investors Building
Minneapolis 2, Minnesota
IN TESTIMONY WHEREOF we have set our hands this 23rd day of July,
1957.
IN PRESENCE OF: Lloyd J. Muehlberg
M. Gould Joseph F. Grinnell
D. Fairchild Edward M. Burke
State of Minnesota )
) SS.
County of Hennepin )
On this 23rd day of July, 1957, before me, a Notary
Public, personally appeared Lloyd J. Muehlberg, Joseph F. Grinnell,
and Edward M. Burke, to me known to be the persons named in and who
executed the foregoing instrument, and they acknowledged to me that
they executed the same as their free act and deed and for the uses
and purposes therein expressed.
<PAGE>
PAGE 4
(Notarial seal) Helen M. Bochnak
Helen M. Bochnak
Notary Public, Hennepin County, Minn.
My Commission Expired Nov. 12, 1958
APPROVAL OF COMMISSIONER OF INSURANCE
The foregoing Certificate of Incorporation of Investors
Syndicate Life Insurance and Annuity Company is hereby approved
this 24th day of July, 1957.
Cyril C. Sheehan
Commissioner of Insurance
State of Minnesota
J.O.M.
<PAGE>
PAGE 1
AMENDED BY-LAWS OF IDS LIFE INSURANCE COMPANY
ARTICLE I
OFFICES
Section 1. The principal place of transacting the
business of this Corporation shall be in the City of Minneapolis,
State of Minnesota.
Section 2. The Corporation may also have offices at
such other places, within or without the State, as the Board of
Directors may from time to time determine or the business of the
Corporation may require.
ARTICLE II
STOCKHOLDERS' MEETINGS
Section 1. All meetings of stockholders for the
election of Directors shall be held at the principal office of the
Corporation in the City of Minneapolis, Minnesota. Meetings of
stockholders for any other purpose may be held at such place,
within or without the State of Minnesota, and at such time as may
be designated in the call and notice thereof.
Section 2. The annual meeting of stockholders for the
election of Directors and the transaction of such other business as
may properly come before the meeting shall be held on the Wednesday
following the first Tuesday on or after the nineteenth day of April
in each year, at 10:30 o'clock A.M. Election of Directors shall be
by plurality vote.
Section 3. In the event the stockholders shall fail to
hold an annual meeting at the time specified therefor in Section 2
of this Article, or the Directors are not elected thereat,
Directors may be elected at a special meeting held for that purpose
upon call and notice as hereinafter provided for a special meeting
of stockholders.
Section 4. Special meetings of stockholders may be
called for any purpose or purposes at any time by the President,
the Secretary, the Board of Directors, any two or more members of
the Board of Directors or in the manner hereinafter provided by one
or more stockholders holding not less than one-tenth of the issued
and outstanding stock entitled to vote. Upon request in writing by
registered mail or delivered in person to the President, any Vice
President, or Secretary, by any person or persons entitled to call
a meeting of stockholders, such officer shall forthwith cause
notice to be given to the stockholders entitled to vote at a
special meeting of stockholders to be held at such time and place
as such officer shall fix, not less than ten pr more than sixty
days after the receipt of such request. Any such request shall
state the purpose or purposes of the proposed meeting.
<PAGE>
PAGE 2
Section 5. Written notice of each meeting of
stockholders, stating the time and place, and in case of a special
meeting the purpose thereof, shall be served upon or mailed to each
stockholder of record entitled to vote thereat at such address as
appears on the stock register of the Corporation, at least ten days
before such meeting.
Section 6. Notice of the time, place and purpose of
any meeting of shareholders, whether required by statute, by the
Articles of Incorporation or by these By-Laws, may be waived in
writing by any stockholder. Such waiver may be given before or
after the meeting, and shall be filed with the Secretary or entered
upon the records of the meeting.
Section 7. Business transacted at all special meetings
shall be confined to the objects stated in the call.
Section 8. The presence, at any meeting of
stockholders, in person or by proxy of the holders of a majority of
the stock entitled to vote thereat shall constitute a quorum for
the transaction of business, except as otherwise provided by
statute. If, however, a quorum shall not be present at any meeting
of the stockholders, the stockholders present in person or by proxy
shall have power to adjourn the meeting from time to time, until a
quorum shall be present. If any meeting of stockholders be
adjourned to another time or place, whether for lack of quorum or
otherwise, no notice as to such adjourned meeting need be given
other than by an announcement, giving the time and place thereof,
at the meeting at which the adjournment is taken. At such
adjourned meeting at which a quorum shall be present, any business
may be transacted which might have been transacted at the meeting
as originally noticed. The stockholders present at a duly called
or held meeting at which a quorum is present may continue to
transact business until final adjournment, notwithstanding the
withdrawal of enough stockholders to leave less than a quorum.
Section 9. At each meeting of the stockholders, every
stockholder of record at the date fixed by the Board of Directors
as the record date for the determination of the persons entitled to
vote at a meeting of stockholders, or, of not date has been fixed,
then at the date of the meeting, shall be entitled at such meeting
to one vote for each share having voting power standing in his name
on the books of the Corporation. A stockholder may cast his vote
or votes in person or by proxy. The appointment of a proxy shall
be in writing filed with the Secretary at or before the meeting.
ARTICLE III
BOARD OF DIRECTORS
Section 1. The number of directors which shall
constitute the whole Board shall not be less than three nor more
than fourteen, as the stockholders may from time to time determine.
The President of the Corporation shall be a Director. Directors
shall be elected at the annual meeting of the stockholders of the
Corporation, except that if the number of directors is increased at
any time other than at an annual meeting of stockholders, an
<PAGE>
PAGE 3
additional Director or Directors to fill the places on the Board
created by any such increase may be elected at a special meeting of
stockholders called for that purpose. Each Director shall be
elected to serve until the next annual meeting of the stockholders
and until his successor shall be elected and shall quality.
Section 2. Vacancies in the Board of Directors, not to
exceed one-third of the members of the Board in any one year, shall
be filled by the remaining members of the Board, though less than a
quorum, and each person so elected shall be a Director until his
successor is elected by the stockholders who may make such election
at their next annual meeting or at any special meeting called for
that purpose. A vacancy in the Board of Directors, which cannot be
filled by the remaining members of the Board, shall be filled by
the stockholders at any special meeting called for that purpose.
Section 3. The Board of Directors shall have the
general management, control and supervision of all business and
affairs of the Corporation, and shall fix and change, as it may
from time to time determine, by majority vote, the compensation to
be paid Directors, officers and agents of the Corporation, and do
all such lawful acts and things as are not by statue [sic] or by
the Articles of Incorporation or by the By-Laws directed or
required to be exercised or done by the stockholders.
ARTICLE IV
EXECUTIVE COMMITTEE
Section 1. The Board of Directors may, by affirmative
action of the entire Board, designate two or more of their number,
one of which shall be the President, to constitute an Executive
Committee, which, to the extent determined by affirmative action of
the entire Board, shall have and exercise the authority of the
Board in the management of the business or the Corporation. Any
such Executive Committee shall act only in the interval between
meetings of the Board, and shall be subject at all times to the
control and direction of the Board. The Executive Committee shall
keep regular minutes of its proceedings and report the same to the
Board.
ARTICLE V
MEETINGS OF THE BOARD OF DIRECTORS
Section 1. The annual meeting of the Board of
Directors of the Corporation shall be held at its principal office
in the City of Minneapolis, Minnesota, as soon as practicable after
the final adjournment of the annual meeting of the stockholders in
each year, and no notice of such meeting shall be necessary to the
newly elected Directors in order to legally constitute the meeting
provided a quorum shall be present; except, however, that such
meeting may be held at such other place, whether in this state or
elsewhere, as a majority of the Board of Directors may have
previously determined.
<PAGE>
PAGE 4
Section 2. Regular meetings of the Board of Directors
may be held without notice at such time and place either within or
without the State of Minnesota, as shall from time to time have
been previously determined by the Board.
Section 3. Special meetings of the Board may be called
by the President on two days notice to each Director, either
personally or by mail or telegram; special meetings shall be called
by the President or Secretary in like manner and on like notice on
the written request of two Directors. Any Directors may, in
writing, either before or after the meeting, waive notice thereof;
and, without notice, any Director by his attendance at and
participation in the action taken at the meeting shall be deemed to
have waived notice.
Section 4. At all meetings of the Board of Directors,
a majority of the Directors shall be necessary and sufficient to
constitute a quorum for the transaction of business; and the acts
of a majority of the Directors present at a meeting at which a
quorum is present shall be the acts of the Board of Directors. If
a quorum shall not be present at any meeting of Directors, the
Directors present thereat may adjourn the meeting from time to
time, until a quorum shall be present. No notice of an adjourned
meeting, whether for lack of quorum or otherwise, need be given
other than by announcement, giving the time and place thereof, at
the meeting at which the adjournment is taken.
Section 5. Any action, which might be taken at a
meeting of the Board of Directors, may be taken without a meeting
if done in writing signed by all of the Directors.
ARTICLE VI
NOTICES
Section 1. Whenever under the provisions of statutes
or of the Articles of Incorporation or of the By-Laws, notice is
required to be given to any Directors or stockholder, it shall not
be construed to mean personal notice, but such notice may be given
in writing by depositing the same in a post office or letter box,
in a postpaid sealed wrapper, addressed to such Director or
stockholder at such address as appears on the stock register or
books of this Corporation, or, in default of address appearing in
the stock register of the Corporation or any known address, to such
Director or stockholder at the Main Post Office in the City of
Minneapolis, Minnesota, and such notice shall be deemed to be given
at the time when the same shall thus be mailed.
ARTICLE VII
OFFICERS
Section 1. The officers of the Corporation shall be a
Chairman of the Board, a President, one or more Vice Presidents
(the number thereof to be determined by the Board of Directors), a
Treasurer, a Secretary, a Medical Director, and such Assistant
Treasurers, Assistant Secretaries, and such other officers as the
<PAGE>
PAGE 5
Board of Directors may deem necessary. All officers of the
Corporation shall exercise such powers and perform such duties and
shall be set forth in these By-Laws and as shall be determined from
time to time by the Board of Directors or by the President. Any
two of the offices, except those of President and Vice President,
Treasurer and Assistant Treasurer, and Secretary and Assistant
Secretary may be held by the same person.
Section 2. The Board of Directors, at its annual
meeting, shall elect a Chairman of the Board, a President, a
Secretary, a Treasurer, a Medical Director and such Executive Vice
Presidents or Senior Vice Presidents as the Board shall determine.
Only the Chairman of the Board and the President need be a member
of the Board. The President, or his designee, may appoint any
other officers permitted by Section 1 of this Article.
Section 3. The officers of the Corporation shall,
except in the event of death, resignation, or removal by the Board
of Directors, hold office until their successors are chosen and
quality in their stead. Any officer elected by the Board of
Directors may be removed at any time by the Board of Directors with
or without cause; such removal, however, shall be without prejudice
to the contract rights, if any, of the person so removed. When a
vacancy for any reason occurs among the officers, the Board of
Directors shall have the power to elect a successor to fill such
vacancy for the unexpired term.
Section 4. Chairman of the Board. The Chairman of the
Board shall preside at all meetings of the stockholders and of the
Board of Directors, and will perform such other duties as are
assigned to him by the Board of Directors.
Section 5. President. The President shall be the
chief executive officer of the Corporation. He shall have general
and active supervision and direction over the business affairs of
the Corporation and over its several officers, subject to the
control of the Board of Directors whose policies he shall execute.
He shall see that all lawful orders and resolutions of the Board of
Directors and of the Executive Committee are carried into effect
and he shall make or cause to be made timely and appropriate
reports to the Board of Directors of all matters which in the
interest of the Corporation are required to be brought to their
notice. He shall be a member of the Executive Committee and shall
preside at its meetings and he shall ex officio be a member of all
standing committees or other committees as may be from time to time
constituted or appointed by the Board of Directors.
Section 6. Secretary. The Secretary shall attend all
meetings of the Board of Directors and of the stockholders and
record their proceedings in a book to be kept for that purpose, and
shall perform like duties for the Executive Committee when
required. In case the Secretary shall be absent from any meeting,
the Chairman of the meeting may appoint a temporary secretary to
act at such meeting. The Secretary shall give, or cause to be
given, notice of all meetings of the stockholders and special
meetings of the Board of Directors. He shall have the custody of
<PAGE>
PAGE 6
the stock register, minute books and the seal of the Corporation,
and shall make such reports and perform such other duties as are
incident to this office or are properly required of him by the
Board of Directors.
Section 7. Treasurer. The Treasurer, unless otherwise
ordered by the Board of Directors, shall have the custody of all
the funds and securities of the Corporation, and shall deposit all
monies and valuables in the name of and to the credit of the
Corporation in such banks or depositories as the Board of Directors
may designate, and shall keep regular books of account, and shall
have custody of the books and records incident to his office and
such as the Board of Directors may direct, and he shall have such
other powers and shall perform such other duties as are incident to
his office or which are properly required of him by the Board of
Directors.
Section 8. Medical Director. The Medical Director
shall, under the direction of the Board of Directors, appoint all
medical examiners for this Corporation and shall have such other
powers and shall perform such other duties as are incident to his
office or which are properly required of him by the Board of
Directors. In his absence or inability to act, an assistant,
designated by the Executive Committee, may act for and in his
stead.
Section 9. The powers and duties of all other officers
shall be such as are usual in like corporations under the direction
and control of the Board of Directors.
ARTICLE VIII
CLOSING OF TRANSFER BOOKS AND FIXING OF RECORD DATE
Section 1. The Board of Directors may fix a time, not
less than twenty nor more than forty days preceding the date of any
meeting of stockholders, as a record date for the determination of
the stockholders entitled to notice of any to vote at such meeting,
and in such case by stockholders of record on the date so fixed, or
their legal representatives, shall be entitled to notice of and to
vote at such meeting, notwithstanding any transfer of any shares on
the books of the Corporation after any record date so fixed. The
Board of Directors may close the books of the Corporation against
transfers of shares during the whole or any part of such period.
Section 2. The Board of Directors may fix a time not
exceeding forty days preceding the date fixed for the payment of
any dividend or distribution, or the date for the allotment of
rights, or, subject to contract rights with respect thereto, the
date when any change or conversion or exchange of shares shall be
made or go into effect, as a record date for the determination of
the stockholders entitled to receive payment of any such dividend,
distribution or allotment of rights or to exercise rights in
respect to any such change, conversion or exchange of shares, and
in such case only stockholders of record on the date so fixed shall
be entitled to receive payment of such dividend, distribution or
allotment of rights or to exercise such rights of change,
conversion or exchange of shares, as the case may be, <PAGE>
PAGE 7
notwithstanding any transfer of any shares on the books of the
Corporation after any record date fixed as aforesaid. The Board of
Directors may close the books of the Corporation against the
transfer of shares during the whole or any part of such period.
ARTICLE IX
MISCELLANEOUS
Section 1. The Corporation shall be entitled to treat
the holder of record of any share or shares of stock as the holder
in fact thereof, and, accordingly, shall not be found to recognize
any equitable or other claim to or interest in such share on the
part of any other person, whether or not it shall have express or
other notice thereof, except as expressly provided by the laws of
the State of Minnesota.
Section 2. The Corporation shall indemnify any person
who was or is a party or is threatened to be made a party, by
reason of the fact that he is or was a Manager of Variable Annuity
Funds A and B, director, officer, employee or agent of this
Corporation, or is or was serving at the direction of the
Corporation as a Manager of Variable Annuity Finds A and B,
director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, to any
threatened, pending or completed action, suit or proceeding,
wherever brought, to the fullest extent permitted by the laws of
the State of Minnesota, as now existing or hereafter amended,
provided that this Article shall not indemnify or protect any such
Manager of Variable Annuity Funds A and B, director, officer,
employee or agent against any liability to the Corporation or its
security holders to which he would otherwise be subject by reason
of willful misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless disregard of
his obligations and duties.
ARTICLE X
LOST STOCK CERTIFICATES
Section 1. The Board of Directors may direct a new
certificate or certificates to be issued in place of any
certificate or certificates theretofore issued by the Corporation
alleged to have been destroyed or lost upon the making of an
affidavit of that fact by the person claiming the certificate of
stock to be lost or destroyed, and the Board of Directors, when
authorizing such issue of a new certificate or certificates, may,
in its discretion and as a condition precedent to the issuance
thereof, require the owner of such lost or destroyed certificate or
certificates, or his legal representative, to advertise the same in
such manner as it shall require and/or give the Corporation a bond
in such sum as it may direct, to indemnify the Corporation against
any claim arising from the issues of such new certificate.
<PAGE>
PAGE 8
ARTICLE XI
POLICIES, CONTRACTS AND CONVEYANCES
Section 1. Subject to the provisions of Section 2 of
the Article, the President or any Vice President may with the
Secretary or any Assistant Secretary, sign, cause the corporate
seal to be affixed thereto when necessary, acknowledge and deliver
all conveyances, contracts, deeds, notes, mortgages, satisfactions,
leases, assignments, licenses, transfers, powers of attorney,
certificates for shares of stock, and all other similar and
dissimilar instruments.
The Board of Directors may by resolution authorize any officer or
officers alone or with another officer or officers, to sign, or
counter-sign, cause the corporate seal to be affixed thereto when
necessary, acknowledge and deliver any written instrument, or class
of written instruments, for and on behalf of this Corporation.
Section 2. All insurance, annuity or endowment
policies or contracts issued by this Corporation and all
reinsurance agreements of this Corporation shall be signed by the
President or a Vice President and the Secretary or an Assistant
Secretary. The signature of any of said officers, on the foregoing
or any other instrument may be a facsimile signature, if the same
is countersigned by an officer or employee duly authorized by the
Board of Directors or Executive Committee of this Corporation to
counter-sign the same.
Section 3. All checks, demands for money, and notes of
the Corporation shall be signed by such officer or officers or such
other person or persons as may from time to time be authorized by
the Board of Directors.
ARTICLE XII
AMENDMENTS OF BY-LAWS
Section 1. These By-Laws may be altered at any regular
meeting of the stockholders, or at any special meeting of the
stockholders at which a quorum is present or represented, provided
notice of the proposed alternation is contained in the notice of
such meeting, by the affirmative vote of the holders of a majority
of the shares issued and outstanding and entitled to vote at such
meeting and present or represented thereat.
<PAGE>
PAGE 1
IDS Life Group Variable Annuity Contract
Performance Calculations
NON-MONEY MARKET SUBACCOUNTS
TOTAL RETURN
The total return is the percentage change between the initial
investment at the beginning of the period and the total value of
the investment at the end of the period.
Total Return = Ending Total Value - Initial Investment
Initial Investment
The ending total value includes income and capital gains
distributions treated as reinvested. It also reflects deductions
for the contract administrative charge, variable account
administrative charge and the mortality and expense risk charge.
AVERAGE ANNUAL TOTAL RETURN
The average annual total return of a subaccount reflects the
average annual compounded rate of return of a hypothetical
investment over a period of one, five and ten years (or, if less,
up to the life of the subaccount), calculated according to the
following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1000.
T = average annual total return.
n = number of years.
ERV = ending redeemable value of a hypothetical $1,000
payment made at the beginning of the one, five
or ten year periods (or fractional portion
thereof).
The average annual total return without withdrawal charge reflects
the deduction of the contract administrative charge, variable
account administrative charge and mortality and expense risk
charge.
The average annual total return with withdrawal charge reflects the
above deductions and assumes the contract owner surrenders the
entire contract at the end of the one, five and ten year periods.
YIELD
Yield quotations will be based on all investment income earned
during a particular 30-day period, less expenses accrued during the
period (net investment income) and will be computed by dividing net
investment income per share by the value of a share on the last day
of the period, according to the following formula:
<PAGE>
PAGE 2
YIELD = 2 [( a - b + 1)6 - 1]
cd
a = dividends and interest earned during the period.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of shares outstanding during the
period that were entitled to receive dividends.
d = the maximum offering price per share on the last day of
the period.
MONEY MARKET SUBACCOUNT
YIELD
Yield for the money market subaccount will be based on the net
change in the value of a hypothetical investment (exclusive of
capital changes) from the beginning of a seven day period for which
the return will be quoted. A prorata share of fund expenses
accrued over the seven day period is subtracted. The difference is
divided by the value of the subaccount at the beginning of the
period to obtain the base period return. The base period return is
annualized by multiplying by 365/7.
EFFECTIVE YIELD
Calculation of effective yield begins with the same base period
return used in the calculation of yield, which is then annualized
to reflect compounding according to the following formula:
Effective Yield = [(Base Period Return + 1)365/7] - 1
<PAGE>
PAGE 1
IDS LIFE INSURANCE COMPANY
IDS Life Accounts F, IZ, JZ, G, H and N
403(b) Annuity
POWER OF ATTORNEY
City of Minneapolis
State of Minnesota
Each of the undersigned as an officer or an officer and director of
IDS Life Insurance Company hereby constitutes and appoints William
A. Stoltzmann, Mary Ellyn Minenko and Colleen Curran or any one of
them, as his attorney-in-fact and agent, to sign for him in his
name, place and stead any and all registration statements and
amendments thereto (with all exhibits and other documents required
or desirable in connection therewith) that may be prepared from
time-to-time in connection with The 403(b) Annuity, periodic
reports required pursuant to provisions of the Securities and
Exchange Act of 1934, and to file such statements, amendments and
periodic reports with the Securities and Exchange Commission, and
any necessary states, and grants to any or all of them the full
power and authority to do and perform each and every act required
or necessary in connection with such signatures or filings.
Signed on the ____ day of _____________, 1993.
David R. Hubers James A. Mitchell
Richard W. Kling ReBecca K. Roloff
Paul F. Kolkman William A. Smith
Christopher R. Kudrna Jeffrey E. Stiefler
Melinda S. Urion
