<PAGE>
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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. 3 (File No. 33-47302) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 5 (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: May 1, 1995
or as soon as practicable thereafter.
immediately upon filing pursuant to paragraph (b) of Rule 485
on (date), pursuant to paragraph (b) of Rule 485
60 days after filing pursuant to paragraph (a)(i) of Rule 485
X on May 1, 1995 pursuant to paragraph (a)(i) of Rule 485
75 days after filing pursuant to paragraph (a)(ii) of Rule 485
on (date) pursuant to paragraph (a)(ii) of Rule 485
If appropriate, check the following box:
this post-effective amendment designates a new effective date
for previously filed post-effective amendment.
The Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to section 24f
of the Investment Company Act of 1940. Registrant's Rule 24f-2
Notice for its most recent fiscal year was filed on or about
Feb. 28, 1995.
<PAGE>
PAGE 2
CROSS REFERENCE SHEET
<TABLE><CAPTION>
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 A (cont'd.)
Section Section
Item No. in Prospectus Item No. in Prospectus
<S> <C> <C> <C>
1 Cover page 12(a) Taxes
(b) Cover page; Key terms
2 Key terms (c) NA
3(a) Expense Summary 13 NA
(b) The Group Variable
Annuity in brief 14 Table of contents of the Statement of
4(a) Condensed financial information Additional Information
(b) Performance information
(c) Financial statements PART B
5(a) Cover page; About IDS Life Section in
(b) The variable accounts Statement of
(c) The funds Item No. Additional Information
(d) Cover page; The funds
(e) Voting rights 15 Cover page
(f) NA
(g) NA 16 Table of contents
6(a) Charges 17(a) NA
(b) Charges (b) NA
(c) Charges (c) About IDS Life*
(d) NA
(e) The funds 18(a) NA
(f) NA (b) NA
(c) Independent auditors
7(a) Buying your annuity; (d) NA
The annuity payout period (e) NA
(b) The variable accounts; Making (f) Principal underwriter
the most of your annuity; Contract
transfer, termination and market 19(a) Other contractual provisions*
value adjustment; Other (b) Contract transfer, termination and
contractual provisions market value adjustment
(c) The funds; charges
(d) Cover page 20(a) Principal underwriter
(b) Principal underwriter
8(a) The annuity payout period (c) Principal underwriter
(b) NA (d) NA
(c) The annuity payout period
(d) The annuity payout period 21(a) Performance information
(e) The annuity payout period (b) Performance information
(f) NA
22 NA
9(a) NA
(b) NA 23(a) NA
(b) NA
10(a) Buying your annuity; Valuing the investment
(b) Valuing the investment
(c) Buying your annuity; Valuing the investment
(d) About IDS Life
11(a) Withdrawals from the contract
(b) NA
(c) Withdrawals from the contract
(d) Buying your annuity
(e) NA
*Designates section in the prospectus, which is hereby incorporated by reference
in this Statement of Additional Information.
</TABLE>
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IDS Life Group Variable Annuity Contract
Prospectus
May 1, 1995
The Group Variable Annuity Contract is a group, unallocated
deferred fixed/variable annuity contract (the contract) offered by
IDS Life Insurance Company (IDS Life) a subsidiary of American
Express Financial Corporation. This contract is designed to fund
employer group retirement plans (the plans) that qualify as
retirement programs under Sections 401 (including 401(k)) and 457
of the Internal Revenue Code of 1986, as amended (the Code). The
contracts provide for the accumulation of values on a fixed and/or
variable basis. Retirement payments are made on a fixed basis.
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 FINANCIAL INSTITUTION AND THE SECURITIES IT
OFFERS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY ANY FINANCIAL INSTITUTION NOR ARE THEY INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR
ANY OTHER AGENCY.
A Statement of Additional Information (SAI) dated May 1, 1995
(incorporated by reference into this prospectus) has been filed
with the Securities and Exchange Commission (SEC), and is available
without charge by contacting IDS Life at the telephone number above
or by completing and sending the order form on the last page of
this prospectus. The table of contents of the SAI is on the last
page of this prospectus.
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Table of Contents
Key terms.......................................................
The Group Variable Annuity Contract in brief....................
Expense summary.................................................
Condensed financial information.................................
Financial statements............................................
Performance information.........................................
The variable accounts...........................................
The funds.......................................................
Aggressive Growth Fund.....................................
International Equity Fund..................................
Capital Resource Fund......................................
Managed Fund...............................................
Special Income Fund........................................
Moneyshare Fund............................................
The fixed account...............................................
Buying your annuity.............................................
How to make purchase payments..............................
Charges.........................................................
Contract administrative charge.............................
Mortality and expense risk fee.............................
Withdrawal charge..........................................
Premium taxes..............................................
Valuing the investment..........................................
Number of units............................................
Accumulation unit value....................................
Net investment factor......................................
Factors that affect variable account
accumulation units.........................................
Making the most of your annuity.................................
Transferring money between accounts........................
How to request a transfer or a withdrawal..................
Withdrawals from the contract...................................
Withdrawal policies........................................
Receiving payout when the owner requests a withdrawal......
Changing ownership..............................................
Contract transfer, termination and market value adjustment......
The annuity payout period.......................................
Annuity payout plans.......................................
Taxes...........................................................
Voting rights...................................................
Substitution....................................................
Other contractual provisions....................................
About IDS Life..................................................
Preiodic reports................................................
Table of contents of the Statement of Additional Information....
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Key terms
These terms can help you understand details about your annuity.
Annuity - A contract purchased from an insurance company that
offers tax-deferred growth of the investment until earnings are
withdrawn.
Accumulation unit - A measure of the value of each variable account
before annuity payouts begin.
Annuity payouts - A fixed amount paid at regular intervals to a
payee.
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 anniversary - An anniversary of the effective date of this
contract.
Contract value - The total value of your annuity before any
applicable withdrawal charge, market value adjustment, contract
administrative charge or any other applicable charge have been
deducted.
Contract year - A period of 12 months, starting on the effective
date of your contract and on each anniversary of the effective
date.
Fixed account - An account to which you may allocate purchase
payments. Amounts allocated to this account earn interest at rates
that are declared periodically by IDS Life.
IDS Life - In this prospectus, "we," "us," "our," and "IDS Life"
refer to IDS Life Insurance Company.
Mutual funds (funds) - Six IDS Life Retirement Annuity mutual
funds, each with a different investment objective. (See "The
funds.") You may allocate your purchase payments into variable
accounts investing in shares of any or all of these funds.
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Owner (you, your) - The plan sponsor or trustee of the Plan.
Participant - An eligible employee or other person who is entitled
to benefits under the plan.
Plan - The retirement plan under which the contract is issued and
which meets the requirements of Code Sections 401 (including
401(k)) or 457.
Purchase payments - Payments made to IDS Life for an annuity.
Retirement date - The date when a participant's annuity payouts are
scheduled to begin.
Valuation date - Any normal business day, Monday through Friday,
that the New York Stock Exchange is open. The value of each
variable account is calculated at the close of business on each
valuation date.
Valuation period - 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. Close of business is normally 3 p.m.
(Central time).
Variable accounts - Six separate accounts to which you 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.
Withdrawal charge - A deferred sales charge that may be applied if
the owner takes a total or partial withdrawal or the contract is
transferred or terminated.
The Group Variable Annuity Contract in brief
Purpose: The Group Variable Annuity Contract is used for plans
that meet the requirements of Code sections 401 (including 401(k))
and 457.
Accounts: The owner can elect to have contract values accumulate
in 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 annuity: A financial advisor will help the owner
complete and submit an application. Applications are subject to
acceptance at our Minneapolis office. Generally, payments may be<PAGE>
PAGE 7
made annually, semiannually, quarterly or monthly or on any other
frequency we accept. (p.)
Transfers: Subject to certain restrictions the owner may
redistribute investments among accounts without charge at any time
while the contract is in force. (p.)
Cash Withdrawals, Loans and Conversions: The owner may withdraw
all or part of the contract's value at any time. Withdrawals may
be subject to charges and tax penalties and may have tax
consequences. Total withdrawals may be subject to a market value
adjustment. (p.)
The owner also may request a withdrawal for the purpose of funding
loans for participants. A withdrawal for a loan is not subject to
withdrawal charges. However, we reserve the right to deduct
withdrawal charges from the remaining contract value to the extent
of any unpaid loans at the time of a total withdrawal of contract
value or at contract transfer or termination. (p.)
If a participant terminates employment, the owner may direct us to
withdraw a part of the contract value so that the participant can
purchase an individual deferred annuity contract from us. No
withdrawal charges will apply at the time of withdrawal for this
conversion. (p.)
Contract Transfer, Termination and Market Value Adjustment: The
owner may direct us to withdraw the total contract value and
transfer that value to another funding agent. (p.)
Under certain circumstances, we may terminate the contract. (p.)
If the value of the fixed account is canceled due to total
withdrawal, contract transfer or contract termination, a market
value adjustment may be imposed in addition to applicable contract
charges. The amount of the market value adjustment approximates
the gain or loss resulting from our sale of assets purchased by the
purchase payments. (p.)
Annuity payouts: The owner can direct us to begin retirement
payouts to a payee under an annuity payout plan that begins on the
participant's retirement date. The owner may choose from a variety
of plans, or the owner and IDS Life can mutually agree on other
payout arrangements. The annuity payout plan selected must meet
the requirements of the plan. Payouts will be made on a fixed
basis. (p.)
Taxes: Generally there is no federal income tax to participants on
contributions to the contract made by the owner or on increases in
the contract's value until distributions are made. (Under certain
circumstances, tax penalties and other tax consequences may apply.)
IDS Life is taxed as a life insurance company under the Code. The
income and capital gains of the variable accounts, to the extent
applied to increase reserves under the contract, are not taxable to
IDS Life. (p.)
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Charges - The Group Variable Annuity Contract is subject to a $125
per quarter ($500 annual) contract administrative charge. We
reserve the right to increase this charge, but it will never exceed
$1,000 per year. We also deduct a 1% mortality and expense risk
charge and a withdrawal charge. Currently there are no premium
taxes under this contract, but certain state and local governments
may impose premium taxes when the owner selects an annuity payout
plan. (p.)
Changing ownership - In general, ownership of the contract may not
be transferred. (p.)
Prohibited investments - The owner will not offer under the plan as
a funding vehicle to which future contributions may be made: (1)
guaranteed investment contracts; (2) bank investment contracts; (3)
annuity contracts; or (4) funding vehicles providing a guarantee of
principal. (p.)
Recordkeeper - Any person or entity authorized by the owner to
administer recordkeeping services for the plan and participants
must be approved by IDS Life. (p.)
Expense summary
The purpose of this summary is to help the owner understand the
various costs and expenses associated with the Group Variable
Annuity Contract.
There is no sales charge when the owner purchases the annuity. All
costs that the owner bears directly or indirectly for the variable
accounts and underlying mutual funds are shown below. Some
expenses may vary as explained under "Contract charges."
Direct charges. These are deducted directly from the contract
value. They include:
Withdrawal charge: 6% of the amount withdrawn in the first two
contract years and reduced by 1% per year thereafter; no withdrawal
charge in the eighth and later contract years.
Annual contract administrative charge: $500 ($125 per quarter).
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:
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.
Operating expenses of underlying mutual funds: management fees and
other expenses deducted as a percentage of average net assets as
follows: *
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<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>
* 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, 1994.
Example:*
<TABLE><CAPTION>
Aggressive International Capital Special
Growth Equity Resource Managed Income Moneyshare
<S> <C> <C> <C> <C> <C> <C>
The owner would pay the following expenses on a $1,000 investment, assuming 5% annual return
and withdrawal at the end of each time period:
1 year
3 years
5 years
10 years
The owner would pay the following expenses on the same investment assuming no withdrawal or
selection of an annuity payout plan at the end of each time period:
1 year
3 years
5 years
10 years
</TABLE>
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
* In this example, the $500 annual contract administrative charge
is approximated as a ____% charge based on our average contract
size.
Condensed financial information
(unaudited)
The following tables give per-unit information about the financial
history of each variable account.
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PAGE 02
Financial statements
The SAI dated May 1, 1995 contains:
o complete audited financial statements of the variable
accounts including:
- statements of net assets as of Dec. 31, 1994;
- statements of operations for the year ended Dec. 31, 1994;
and
- statements of changes in net assets for the years ended
Dec. 31, 1994 and Dec. 31, 1993.
This prospectus contains:
o complete audited financial statements for IDS Life including:
- consolidated balance sheets as of Dec. 31, 1994 and Dec.
31, 1993; and
- related consolidated statements of income and cash flows
for each of three years in the period ended Dec. 31, 1994.
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 - Account G (investing in Special Income): Net investment
income (income less expenses) per accumulation unit during a given
30-day period is divided by the value of the unit on the last day
of the period. The result is converted to an annual percentage.
Average annual total return: Expressed as an average annual
compounded rate of return of a hypothetical investment over a
period of one, five and 10 years (or up to the life of the account
if it is less than 10 years old). This figure reflects deduction
of all applicable charges, including the contract administrative
charge, mortality and expense risk fee and withdrawal charge,
assuming a withdrawal at the end of the illustrated period.
Optional total return quotations may be made that do not reflect a
withdrawal charge deduction (assuming no withdrawal).
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PAGE 11
Aggregate total return: Represents the cumulative change in the
value of an investment over a specified period of time (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 annuity,
which has the effect of decreasing advertised performance, account
performance should not be compared to that of mutual funds that
sell their shares directly to the public. (See the SAI for a
further description of methods used to determine yield and total
return for the accounts.)
If you would like additional information about actual performance,
contact your financial advisor.
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. Each variable account's
net assets are held in relation to the contracts described in this
prospectus as well as other variable annuity contracts that we
issue that are not described in this prospectus. All obligations
arising under the contracts are general obligations of IDS Life.
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.
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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.
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 how many variable accounts may be
offered and how many exchanges among variable accounts may be
allowed before the owner 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<PAGE>
PAGE 13
reserve the right to modify the contract, as necessary, to ensure
that the owner will not be subject to current taxation as the owner
of the variable account assets.
We intend to comply with all federal tax laws to ensure that the
contract continues to qualify as an annuity for federal income tax
purposes. We reserve the right to modify the contract as necessary
to comply with any new tax laws.
IDS Life is the investment adviser for each of the funds. IDS Life
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 the owner should know before
investing. It is available by contacting IDS Life at the address
or telephone number on the front of this publication, or from your
financial advisor.
The fixed account
Purchase payments can also be allocated to the fixed account. The
cash value of the fixed account increases as interest is credited
to the account. Purchase payments and transfers to the fixed
account become part of the general account of IDS Life, the
company's main portfolio of investments. Interest is credited
daily and compounded annually. We may change the interest rates
from time to time.
In addition, a market value adjustment is imposed on the fixed
account if the owner cancels the value of the fixed account due to
total withdrawal, contract transfer or contract termination. The
amount of the market value adjustment approximates the gain or loss
resulting from sale by IDS Life of assets purchased with purchase
payments. (See "Market value adjustment.")
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 your annuity
A financial advisor will help the owner prepare and submit an
application, and send it along with the initial purchase payment to
our Minneapolis office.
When applying, the owner can select
o the account(s) in which to invest<PAGE>
PAGE 14
o how to make purchase payments
If the application is complete, we will process it and apply the
purchase payments to the account(s) within two days after we
receive it. If the application is accepted, we will send the owner
a contract. If we cannot accept the application within five days,
we will decline it and return the payment unless the parties agree
otherwise. We will credit additional purchase payments to the
contract's account(s) at the next close of business.
How to make purchase payments
1 By letter
Send the check along with the plan name and account number to:
Regular mail:
IDS Life Insurance Company
P.O. Box 74
Minneapolis, MN 55440-0074
Express mail:
IDS Life Insurance Company
733 Marquette Avenue
Minneapolis, MN 55402
2 By scheduled payment plan
Your financial advisor can help set up:
o participant salary reduction
Charges
Contract administrative charge
This fee is for establishing and maintaining records. We deduct
$125 from the contract value at the end of each contract quarter
(each three-month period measured from the effective date of your
contract or, if earlier, when contract value is totally withdrawn
or the contract is transferred or terminated). We deduct this
charge on a pro-rata basis from the fixed and variable accounts.
Annual charge: $500. We reserve the right to increase the
contract administrative charge in the future, but we guarantee that
it will never exceed $250 per quarter ($1,000 per year).
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.
<PAGE>
PAGE 15
Mortality risk arises because of our guarantee to make annuity
payouts according to the terms of the contract, no matter how long
a specific participant 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 contract administrative charge
cannot be increased above $1,000 per year 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
contract administrative charge is more than sufficient to meet
expenses.
We do not plan to profit from the contract administrative charge.
However, we do hope to profit from the mortality and expense risk
fee. We may use any profits realized from this fee for any proper
corporate purpose, including, among others, payment of distribution
(selling) expenses. We do not expect that the withdrawal charge,
discussed in the following paragraphs, will cover sales and
distribution expenses.
Withdrawal charge
If the owner withdraws part or all of the contract, a withdrawal
charge may apply. This withdrawal charge represents a percentage
of the amount withdrawn as follows:
Withdrawal charge as
percentage of amount
Contract year: withdrawn:
__________________________________________________________________
1 6%
2 6
3 5
4 4
5 3
6 2
7 1
8 and under 0
__________________________________________________________________
In the case of partial withdrawal, the withdrawal charge is
deducted from the contract value remaining after the owner is paid
the amount requested.
Example of withdrawal charge:
Owner requests................$1,000 partial withdrawal = $1,052.63
Total amount withdrawn...............$1,052.63
x 0.05
Total withdrawal charge..............$ 52.63<PAGE>
PAGE 16
There are no withdrawal charges if the participant:
o attains age 59 1/2;
o purchases an immediate annuity under the annuity payout
plans of this contract after separation from service;
o retires under the plan after age 55;
o becomes disabled (as defined by the Code);
o dies;
o encounters financial hardship as permitted under the plan
and the Code;
o receives a loan as requested by the owner;
o converts contract value to an individual retirement annuity
or other qualified annuity offered by IDS life as requested
by the owner.
Under no circumstance will withdrawal charges exceed 8.5% of
aggregate purchase payments made.
Possible group reductions: In some cases lower sales and
administrative expenses may be incurred or we may perform fewer
services. In such cases, we may be able to reduce or eliminate
certain contract charges. However, we expect this to occur
infrequently.
Premium taxes
Currently, there are no premium taxes under this contract.
However, a charge will be made by IDS Life against the contract
value for any state premium taxes to the extent the taxes are
payable in connection with the purchase of an annuity contract
under the annuity payout plans.
Valuing the investment
Here is how the accounts are valued:
Fixed account: The amounts allocated to the fixed account are
valued directly in dollars and equal the sum of the purchase
payments, plus interest earned, less any amounts withdrawn or
transferred.
Variable accounts: Amounts allocated to the variable accounts are
converted into accumulation units. Each time the owner makes a
purchase payment or transfers amounts into one of the variable
accounts, a certain number of accumulation units are credited to
the contract for that account. Conversely, each time the owner
takes a partial withdrawal, transfers amounts out of a variable
account, or is assessed a contract administrative charge, a certain
number of accumulation units are subtracted from the contract.
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:
<PAGE>
PAGE 17
Number of units
To calculate the number of accumulation units for a particular
account, we divide the investment 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.
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 owner 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
account(s);
o transfers into or out of the variable account(s);
o partial withdrawals;
o withdrawal charges; and/or
o contract administrative charges.
Accumulation unit values may fluctuate due to:
o changes in underlying mutual fund(s) net asset value;
o dividends distributed to the variable 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 the annuity
Transferring money between accounts
The owner may transfer money from one account, including the fixed
account, to another before the annuity payouts begin. If we
receive the 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, the owner should consider the risks
involved in switching investments.
We may suspend or modify transfer privileges at any time. Any
restriction imposed by the plan will apply. (For information on<PAGE>
PAGE 18
transfers after annuity payouts begin, see "The annuity payout
period.")
How to request a transfer or a withdrawal
A transfer or withdrawal request can be made by letter or we can
agree to another method. Send the plan name, account number,
Social Security Number or Taxpayer Identification Number and signed
request for a transfer or withdrawal 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
Withdrawals from the contract
As owner, you may withdraw all or part of the annuity contract
value at any time by sending a written request or by any other
method we accept. For total withdrawals, we will compute the value
of the contract at the close of business after we receive the
request. The owner may ask the owner to return the contract. You
may have to pay withdrawal charges (see "Contract charges") and IRS
taxes and penalties (see "Taxes").
Withdrawal policies
o If the owner requests a total withdrawal, payment will equal the
total contract value less the contract administrative charge, any
applicable premium tax and withdrawal charge.
o The owner or the recordkeeper must state the reason for a
partial withdrawal.
o If the contract has a balance in more than one account and
request for a partial withdrawal is made, we will withdraw money
from all the accounts in the same proportion as the value in each
account correlates to the total contract value, unless requested
otherwise.
o For total withdrawals from the fixed account, a market value
adjustment may apply. (See "Contract transfer, termination and
market value adjustment" below.)
Loans
The owner may request withdrawals for the purpose of funding loans
for participants. At the time of the loan request, the owner must
specify from which accounts the withdrawal for the loan should be
made. The amount and terms of the loan must be in accordance with
the applicable requirements of the plan and the Code. IDS Life
assumes no responsibility for the validity of the loan or whether
the loan complies with such applicable requirements.<PAGE>
PAGE 19
Withdrawals for the purpose of funding a loan under the plan will
not be subject to withdrawal charges when the loan is made.
However, we reserve the right to deduct any such withdrawal charges
from the remaining contract value to the extent of any unpaid loans
at the time of a total withdrawal of the contract value or at
contract transfer or termination. (See "Charges.")
Receiving payout when the owner requests a withdrawal
By regular or express mail
o Payable to owner
o Normally mailed to address of record within seven days after
receiving the request. However, we may postpone the payout if:
-the withdrawal 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
-the SEC permits us to delay payment for the protection of
security holders
Special withdrawal provisions
o The rights of any person to any benefits under the plans under
which these contracts are issued will be subject to the terms and
conditions of the plans themselves, regardless of the terms and
conditions of the contract issued in connection with the plans.
o IDS Life reserves the right to defer the payment of amounts
withdrawn from the fixed account for a period not to exceed six
months from the date we receive the request for withdrawal.
o Since contracts offered will be issued in connection with plans
that meet the requirements of Code Sections 401 (including 401(k))
and 457, reference should be made to the terms of the particular
plan for any further limitations or restrictions on cash
withdrawals.
o A withdrawal charge will be deducted from the amount withdrawn
subject to certain limitations and exceptions. (See "Charges.") A
cash withdrawal is also subject to federal income taxes and may
incur federal tax penalties. The tax consequences of a cash
withdrawal payment should be carefully considered. (See "Taxes.")
Conversion
In the event of a participant's termination of employment or for
other reasons that meet the requirements of the plan and the Code
and which are acceptable to us, the owner may elect to transfer, on
the participant's behalf, part of the contract value to an
individual deferred annuity contract then offered by IDS Life.
This individual contract will be qualified as an individual
retirement annuity under Section 408 or will qualify under other<PAGE>
PAGE 20
applicable sections of the Code. Such contract will be in a form
then customarily issued by us for business under such qualified
plans. No withdrawal charges will apply at the time of such
conversion.
Changing ownership
Ownership of the contract may not be transferred except to:
o a trustee or successor trustee of a pension or profit
sharing trust that is qualified under the Code; or
o as otherwise permitted by laws and regulations governing
the plans under which the contract is issued.
Subject to the provisions above, the 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 except IDS Life.
Contract transfer, termination and market value adjustment
Withdrawals by owner for transfer of funds
The owner may direct IDS Life to withdraw the total contract value
and transfer that value to another funding agent. All applicable
contract charges including withdrawal charges will be payable by
the owner and will be deducted from the first payout unless the
total contract value is transferred to a plan offered by IDS Life
or its affiliates. (See "Contract charges.")
The owner must provide IDS Life with a written request to make such
a withdrawal. This written request must be sent to our Minneapolis
office and must specify the initial withdrawal date and payee to
whom the payouts are to be made.
At the owner's option, we will pay the contract value less any
applicable charges in annual installments or in a lump sum as
follows:
1. The contract value may be paid in five annual installments
beginning on the initial withdrawal date and then on each of the
next four anniversaries of such date as follows:
% of Then Remaining
Installment Payment Contract Value Balance
1 20%
2 25
3 33
4 50
5 100
No additional withdrawals for benefits or other transfers of
contract values will be allowed and no additional purchase payments
will be accepted after the first withdrawal payment is made. We
will continue to credit interest to any contract value balance
remaining after an installment payment at the interest crediting
rate then in effect for the fixed account.<PAGE>
PAGE 21
2. The contract value may be paid in a lump sum. Any amount
attributable to the fixed account value will be based on the market
value of such balance. The market value will be determined by us
by applying the formula described below under "Market value
adjustment." We will make lump sum payments according to the
provisions of the above section titled "Receiving a payment when
the owner requests a withdrawal."
Market value adjustment - A market value adjustment (MVA) applies
only when we pay out the fixed account value in a lump sum when:
o the owner withdraws the total contract value to transfer that
value to another funding vehicle;
o the owner makes a total withdrawal of the fixed account contract
value; or
o we terminate the contract as described below. (See "Contract
termination.")
The MVA will be applied to the amount being withdrawn from the
fixed account after deduction of any applicable contract
administrative charge and withdrawal charge. (See "Contract
Charges.")
The MVA will reflect the relationship between the current interest
rate being credited to new purchase payments allocated to the fixed
account and the rate being credited to all prior purchase payments.
The MVA is calculated as follows:
MVA = fixed account value x (A - B) x C
Where:
A = the weighted average interest rate (in decimal form) being
credited to all fixed account purchase payments made by the
owner at the time of termination, rounded to 4 decimal
places;
B = the interest rate (in decimal form) being credited to new
purchase payments to the contract at the time of termination
or total withdrawal, rounded to 4 decimal places; and
C = the annuity factor, which represents the relationship between
the contract year and the average duration of underlying
investments from the following table:
Contract Year Annuity Factor
1-3 6.0
4-6 5.0
7+ 4.0
For an example showing an upward and downward MVA, please see
Appendix A.
<PAGE>
PAGE 22
No MVA applies if:
o the owner makes a partial withdrawal of the fixed account
contract value;
o installment payments are made when the owner withdraws the total
contract value to transfer that value to another funding vehicle or
we terminate the contract; or
o the owner transfers contract values from the fixed account to the
variable accounts as described above under "Transfer policies."
Contract termination
We reserve the right upon 30 days' written notice to the owner to
declare a contract termination date that will be any date on or
after the expiration of the 30-day notification period.
A contract termination date may be declared if:
o The owner adopts an amendment to the plan that causes the plan to
be materially different from the plan originally in existence when
the contract was purchased. To be "materially different," the
amendment must cause a substantial change in the level of the
dollar amounts of purchase payments or contract benefits to be paid
by us;
o The plan fails to qualify or becomes disqualified under the
appropriate sections of the Code;
o The owner offers under the plan as a funding vehicle to which
future contributions may be made a guaranteed investment contract,
bank investment contract, annuity contract or funding vehicle
providing a guarantee of principal. See "Prohibited Investments;"
or
o The owner changes to a recordkeeper that is not approved by us.
If we waive our right to terminate the contract under any provision
of this section at any time, such waiver will not be considered a
precedent and will not prohibit us from exercising the right to
terminate this contract, for the reasons noted above, at any future
time.
Procedures at contract termination
On the contract termination date, we will withdraw any outstanding
charges, including any contract administrative charges, from the
accumulation account. A withdrawal charge may apply and be payable
by the owner on account of any termination under this provision and
will be deducted from the first termination payment. (See
"Contract charges.")
At the owner's option, we will pay the accumulation account balance
in a lump sum or in annual installment payouts according to the
table under "Withdrawals from the contract" above. A lump sum
payout will be subject to an applicable MVA to the fixed account
value. If the owner does not select an option, we will pay the<PAGE>
PAGE 23
accumulation account balance to the owner under the installment
option.
The annuity payout period
When a plan participant reaches his or her retirement date, the
owner of the contract may select one of the annuity payout plans
outlined below, or the owner and IDS Life will mutually agree on
other payout arrangements. No withdrawal charges are deducted
under the payout plans listed below.
Retirement payouts will be made on a fixed basis. We will make
these retirement payouts under a supplemental fixed immediate
annuity in the form customarily offered by us at the time of
purchase.
Annuity payout plans
The owner may choose any one of these annuity payout plans by
giving us written instructions at least 30 days before contract
values are to be used to purchase the payout plan.
o Plan A - Life annuity - no refund: Monthly payouts are made
until the annuitant's death. Payouts end with the last payout
before the annuitant's death; no further payouts will be made.
This means that if the annuitant dies after only one monthly payout
has been made, no more payouts will be made.
o Plan B - Life annuity with five, 10 or 15 years certain: Monthly
payouts are made for a guaranteed payout period of five, 10 or 15
years that the annuitant elects. This election will determine the
length of the payout period to the beneficiary if the annuitant
should die before the elected period has expired. The guaranteed
payout period is calculated from the retirement date. If the
annuitant outlives the elected guaranteed payout period, payouts
will continue until the annuitant's death.
o Plan C - Life annuity - installment refund: Monthly payouts are
made until the annuitant's death, with our guarantee that payouts
will continue for some period of time. Payouts will be made for at
least the number of months determined by dividing the amount
applied under this option by the first monthly payout, whether or
not the annuitant is living.
o Plan D - Joint and last survivor life annuity - no refund:
Monthly payouts are made to the annuitant and a joint annuitant
while both are living. If either annuitant dies, monthly payouts
continue at the full amount until the death of the surviving
annuitant. Payouts end with the death of the second annuitant.
o Plan E - Payouts for a specified period: Monthly payouts are
made for a specific payout period of 10 to 30 years chosen by the
annuitant. Payouts will be made only for the number of years
specified whether the annuitant is living or not. Depending on the
time period selected, it is foreseeable that an annuitant can
outlive the payout period selected. In addition, a 10% IRS penalty
tax could apply under this payout plan. (See "Taxes".)<PAGE>
PAGE 24
Restrictions on payout options:
Since the contract is issued in connection with plans that meet the
requirements of Code section 401 (including 401(k)) and 457, the
payout schedule must meet the applicable requirements of the
particular plan and of the Code, including the distribution and
incidental death benefit requirements. In general, the plan must
provide for retirement payouts:
o over the life of the participant;
o over the joint lives of the participant and a designated
beneficiary;
o for a period not exceeding the life expectancy of the
participant; or
o for a period not exceeding the joint life expectancies of the
participant and a designated beneficiary.
If monthly payouts would be less than $20: We will calculate the
amount of monthly payouts at the time the immediate annuity is
purchased to provide retirement payouts. If the calculations show
that monthly payouts would be less than $20, we have the right to
pay the contract value to the owner in a lump sum.
Taxes
Tax treatment of IDS Life and the variable accounts: IDS Life is
taxed as a life insurance company under the Code. Although the
operations of the variable accounts are accounted for separately
from other operations of IDS Life for purposes of federal income
taxation, the variable accounts are not taxable as entities
separate from IDS Life. Under existing federal income tax laws,
the income and capital gains of the variable accounts, to the
extent applied to increase reserves under the contracts, are not
taxable to IDS Life.
Taxation of annuities in general: Generally, there is no tax to a
participant on contributions made by the owner to the contract or
on any increases in the value of the contract. However, when
distribution to a participant occurs, the distribution will be
subject to taxation (except contributions that were made with
after-tax dollars).
Penalties: If participants receive amounts from the contract
before reaching age 59-1/2, they may have to pay a 10% IRS penalty
on the amount includable in their ordinary income. However, this
penalty will not apply to any amount received by the participant or
designated beneficiary:
o because of the participant's death;
o because the participant becomes 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 the
participant's life or life expectancy (or joint lives or life
expectancies of the participant and designated beneficiary);
or
o if the participant retires under the plan after age 55.
<PAGE>
PAGE 25
Other penalties or exceptions may apply if distributions are made
from the annuity before the plan specifies that payouts can be
made.
Withholding: If the participant receives a distribution, 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 the participant's tax due for the year and the
participant will take credit for such amounts when filing an annual
tax return. This mandatory withholding will not be imposed if:
o instead of receiving the distribution check, the participant
elects to have the distribution rolled over directly to an
IRA or another eligible plan;
o the payout is one in a series of substantially equal periodic
payouts, made at least annually, over the participant's life
or life expectancy (or the joint lives or life expectancies
of the participant and designated beneficiary) or over a
specified period of 10 years or more; or
o the payout is a minimum distribution required under the Code.
Payouts 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, the participant can elect
not to have any withholding occur. To do this we must be provided
with a valid Social Security Number or Taxpayer Identification
Number.
If this election is not made and if the payout is part of an
annuity payout plan, the amount of withholding generally is
computed using payroll tables. Please send us a statement of how
many exemptions to use in calculating the withholding. If the
distribution is any other type of payment (such as a partial or
full withdrawal), withholding is computed using 10% of the taxable
portion.
Some states also impose withholding requirements similar to the
federal withholding described above. If this should be the case,
any payments from which federal withholding is deducted may also
have state withholding deducted. The withholding requirements may
differ if payment is being made to a non-U.S. citizen or if the
payment is being delivered outside the United States.
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, please consult a tax
adviser regarding any questions about taxation of the annuity
contract.
Tax Qualification
The contract is intended to qualify as an annuity contract for
Federal income tax purposes. To that end, the provisions of this
contract are to be interpreted to ensure or maintain such tax<PAGE>
PAGE 26
qualification, notwithstanding any other provisions to the
contrary. We reserve the right to amend this contract to reflect
any clarifications that may be needed or are appropriate to
maintain such qualification or to conform this contract to any
applicable changes in the tax qualification requirements. We will
send the owner a copy of any such amendment.
Voting rights
The contract owner or other authorized party with investments in
the variable account(s) may vote on important mutual fund policies.
We will vote fund shares according to the instructions we receive.
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.
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 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 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.
Other contractual provisions
Modification
Upon notice to the owner, the contract may be modified by IDS Life
if such modification:
o is necessary to make the contract or the variable accounts
comply with any law or regulation issued by a governmental
agency to which we or the variable accounts are subject;<PAGE>
PAGE 27
o is necessary to assure continued qualification of the
contract under the Code or other federal or state laws
relating to retirement annuities or annuity contracts;
o is necessary to reflect a change in the variable accounts; or
o provides additional accumulation options for the variable
accounts.
In the event of any such modification, we may make appropriate
endorsement to the contract to reflect such modification.
Prohibited investments
While the contract is in force, and prior to any withdrawal or
contract termination, the owner will not offer under the plan as a
funding vehicle to which future contributions may be made any of
the following:
o guaranteed investment contracts;
o bank investment contracts;
o annuity contracts with fixed and/or variable accounts; or
o funding vehicles providing a guarantee of principal.
IDS Life reserves the right to terminate the contract if one or
more of these prohibited investments is offered.
Proof of condition or event
Where any payments under the contract depend on the recipient being
alive and/or being a certain age on a given date, or depend on the
occurrence of a specific event, IDS Life may require proof
satisfactory to it that such a condition has been met prior to
making the payment.
Distribution of contracts
IDS Life is the principal underwriter for the contracts. We are
registered with the SEC under the Securities and Exchange Act of
1934 (1934 Act) as a broker-dealer and are a member of the National
Association of Securities Dealers, Inc.
We may enter into distribution agreements with certain broker-
dealers registered under the 1934 Act. We will pay a maximum
commission of 7% for the sale of a contract. In addition, we may
pay a service commission when the owner maintains the contract in
force.
Recordkeeper
We provide a contract to fund plans that meet the requirements of
Code Sections 401 (including 401(k)) and 457. We do not provide
any administrative or recordkeeping services in connection with the
plan. We will rely on information and/or instructions provided by
the plan administrator and/or recordkeeper in order to properly
administer the contract. For this reason, any person or entity
authorized by the owner to administer recordkeeping services for
the plan and participants must be approved by IDS Life.
<PAGE>
PAGE 28
Additional information about IDS Life
Selected financial data
The following selected financial data for IDS Life and its
subsidiaries should be read in conjunction with the consolidated
financial statements and notes.
Premiums.........................
Net investment income............
Net gain (loss) on investments...
Other............................
Total revenues...................
Income before income taxes.......
Net income.......................
Total assets.....................
Management's discussion and analysis of consolidated financial
condition and results of operations
Results of operations
1994 Compared to 1993:
1993 Compared to 1992: Consolidated income before income taxes
totaled $413 million in 1993, compared with $316 million in 1992.
In 1993, $104 million was from the life, disability income, health
and long-term care insurance segment, compared with $96 million in
1992. In 1993, $315 million was from the annuity segment, compared
with $223 million in 1992. The remaining $6.7 million loss in 1993
was a net loss on investments, compared with a net loss on
investments of $3.7 million in 1992.
Total premiums received increased to $5.3 billion in 1993, compared
with $4.4 billion in 1992. This increase is primarily due to
strong sales of variable annuities due to the low interest rate
environment. In addition, IDS Life reported small increases in its
fixed single premium deferred annuity line. Universal life-type
insurance and variable universal life insurance premiums received
also increased from the prior year.
Total revenues increased to $2.2 billion in 1993, compared with
$2.0 billion in 1992. Of this, net investment income was $1.8
billion in 1993, compared with $1.6 billion in 1992, reflecting an
increase in invested assets. Total invested assets grew 14 percent
to $21.9 billion at Dec. 31, 1993, from $19.2 billion at Dec. 31,
1992.
Policyholder and contractholder charges, which consist primarily of
cost of insurance charges on universal life-type policies,
increased 18 percent to $184 million in 1993, compared with $156
million in 1992. This increase reflects higher total life<PAGE>
PAGE 29
insurance in force which grew 13 percent to $46.1 billion at
Dec. 31, 1993.
Management and other fees increased 41 percent to $120 million in
1993, compared with $85 million in 1992. This is primarily due to
an increase in assets held in segregated asset accounts, which grew
45 percent to $9.0 billion at Dec. 31, 1993, resulting from strong
sales of variable products. IDS Life provides investment
management services for the mutual funds used as investment options
for variable annuities and variable life insurance. IDS Life also
receives a mortality and expense risk fee from the segregated asset
accounts.
In 1993, IDS Life reported a net loss on investments of $6.7
million, compared with a net loss on investments of $3.7 million in
1992. During 1993, net realized losses from the sale of
investments amounted to $12.5 million. This was offset by a net
decrease in allowance for losses of $5.8 million, including an
increase of $9.3 million for mortgage investments and real estate,
offset by a decrease of $15.1 million for below investment grade
bonds (those rated below BBB).
Total benefits and expenses increased to $1.8 billion in 1993,
compared with $1.7 billion in 1992. The largest component of
expenses, interest credited to policyholder accounts for universal
life-type insurance and investment contracts aggregated $1.2
billion and was essentially unchanged from the prior year. This
reflected interest credited to higher accumulation values offset by
lower interest credited rates.
Amortization of deferred policy acquisition costs increased to $212
million in 1993, compared with $140 million in 1992, reflecting
prior years' growth of life insurance and annuity business and a
cumulative adjustment driven by the long-term decrease in accrual
rates on fixed annuities.
Other insurance and operating expenses, which include non-
capitalized commissions and indirect selling expenses, direct and
indirect operating expenses, premium taxes and guaranty association
expenses increased to $242 million in 1993, compared with $216
million in 1992.
In May 1993, the Financial Accounting Standards Board issued SFAS
No. 115, "Accounting for Certain Investments in Debt and Equity
Securities," which IDS Life will implement, effective Jan. 1, 1994.
Under the new rules, debt securities that IDS Life has both the
positive intent and ability to hold to maturity will be carried at
amortized cost. Debt securities that IDS Life does not have the
positive intent and ability to hold to maturity and all marketable
equity securities will be classified as available-for-sale and
carried at fair value. Unrealized gains and losses on securities
classified as available-for-sale will be carried as a separate
component of stockholder's equity. The effect of the new rules
will be to increase stockholder's equity by approximately $181
million, net of taxes, as of Jan. 1, 1994, but the new rules will
have no material impact on IDS Life's results of operations.<PAGE>
PAGE 30
SFAS No. 114, "Accounting by Creditors for Impairment of a Loan,"
and FASB Interpretation No. 39, "Offsetting of Amounts Related to
Certain Contracts," are expected to have no material impact on IDS
Life's results of operations or financial condition.
Liquidity and Capital Resources
The liquidity requirements of IDS Life are met by funds provided
from operations and investment activity. The components of the
funds provided are premiums, investment income, proceeds from sales
of investments as well as maturities and periodic repayments of
investment principal.
The primary uses of funds are policy benefits, commissions and
operating expenses, policy loans and new investment purchases.
IDS Life has available lines of credit with two banks aggregating
$75 million, which are used strictly as short-term sources of
funds. Borrowings outstanding under the agreements were $1.5
million at Dec. 31, 1993. IDS Life also uses reverse repurchase
agreements for short-term liquidity needs. Reverse repurchase
agreements aggregated $30 million at Dec. 31, 1993.
At Dec. 31, 1993, investments in fixed maturities comprised 89
percent of IDS Life's total invested assets. Of the fixed maturity
portfolio, approximately 51 percent is invested in GNMA, FNMA and
FHLMC mortgage-backed securities which are considered AAA/Aaa
quality.
At Dec. 31, 1993, approximately 8.8 percent of IDS Life's
investments in fixed maturities were below investment grade bonds.
These investments may be subject to a higher degree of risk than
the more "traditional" issues because of the borrower's generally
greater sensitivity to adverse economic conditions, such as
recession or increasing interest rates, and in certain instances,
the lack of an active secondary market. Expected returns on below
investment grade bonds reflect consideration of such factors. IDS
Life has established an allowance for losses for below investment
grade bonds totaling $23 million at Dec. 31, 1993. Management
believes that the allowance for losses is adequate, however, future
economic factors could impact the ratings of securities owned and
additional reserves for losses may be required.
At Dec. 31, 1993, net unrealized appreciation on fixed maturities
included $1.1 billion of gross unrealized appreciation and $82
million of gross unrealized depreciation.
At Dec. 31, 1993, IDS Life had an allowance for losses for mortgage
loans totaling $35 million and for real estate totaling $11
million.
The economy and other factors have caused an increase in the number
of insurance companies that are under regulatory supervision. This
circumstance has resulted in an increase in assessments by state
guaranty associations to cover losses to policyholders of insolvent
or rehabilitated companies. Some assessments can be partially
recovered through a reduction in future premium taxes in certain<PAGE>
PAGE 31
states. IDS Life established an asset for guaranty association
assessments from those states allowing a reduction in future
premium taxes over a reasonable period of time. The asset will be
amortized as future premium taxes are reduced. IDS Life has also
estimated the potential effect of future assessments on IDS Life's
financial position and results of operations and has established a
reserve for such potential assessments.
In the first quarter of 1994, IDS Life paid a $40 million dividend
to its parent. In 1993, dividends paid to its parent were $25
million.
Segment Information
IDS Life's operations consist of two business segments:
Individual and group life, disability income, long-term care and
health insurance; and fixed and variable annuity products designed
for individuals, pension plans, small businesses and
employer-sponsored groups. IDS Life is not dependent upon any
single customer and no single customer accounted for more than 10
percent of revenue in 1994, 1993 or 1992. (See Note 8, Segment
information, in the "Notes to Consolidated Financial Statements".)
Reinsurance
Reinsurance arrangements are used to reduce exposure to large
losses. The maximum amount of risk retained by IDS Life on any one
life is $750,000 of life and waiver of premium benefits plus
$50,000 of accidental death benefits. The excesses are reinsured
with other life insurance companies. At Dec. 31, 1994, traditional
life and universal life-type insurance in force aggregated ____
billion, of which ____ billion was reinsured.
IDS Life has a reinsurance agreement with an affiliated company,
whereby IDS Life assumed 100% of a block of single premium life
insurance business. Reserves related to this agreement were ____
million at Dec. 31, 1994. IDS Life also has a reinsurance
agreement to cede 50% of its long-term care insurance business to
an affiliated company. Reserves and reinsurance receivables
related to this agreement both amounted to ____ million at Dec. 31,
1994.
Reserves
In accordance with the insurance laws and regulations under which
IDS Life operates, we are obligated to carry on our books, as
liabilities, actuarially determined reserves to meet our
obligations on our outstanding life and health insurance policies
and annuity contracts. Reserves for policies and contracts are
based on mortality and morbidity tables in general use in the
United States. These reserves are computed amounts that, with
additions from premiums to be received, and with interest on such
reserves compounded annually at assumed rates, will be sufficient
to meet our policy obligations at their maturities or in the event
of an insured's death. In the accompanying financial statements,
these reserves are determined in accordance with generally accepted<PAGE>
PAGE 32
accounting principles. (See Note 1, Liabilities for future policy
benefits, in the "Notes to Consolidated Financial Statements.")
Investments
Of IDS Life's consolidated total investments of ____ billion at
Dec. 31, 1994, ___% was invested in mortgage-backed securities,
___% in corporate and other bonds, ___% in primary mortgage loans
on real estate, ___% in policy loans and the remaining ___% in
other investments.
Competition
IDS Life is engaged in a business that is highly competitive due to
the large number of stock and mutual life insurance companies and
other entities marketing insurance products. There are over 2,600
stock, mutual and other types of insurers in the life insurance
business. In Fortune magazine's May 1994 listing of the 50 largest
life insurance companies as ranked by assets, IDS Life ranked 14th.
Best's Insurance Reports, Life-Health edition, 1994, assigned IDS
Life one of its highest classifications, A+ (Superior).
Employees
As of Dec. 31, 1994, IDS Life and its subsidiaries had ____
employees; including ___ employed at the corporate office in
Minneapolis, MN, and ___ employed at IDS Life Insurance Company of
New York, located in Albany, NY.
Properties
IDS Life occupies office space in Minneapolis, MN, which is rented
by its parent, American Express Financial Corporation. IDS Life
reimburses American Express Financial Corporation for rent based on
direct and indirect allocation methods. Facilities occupied by IDS
Life and our subsidiaries are believed to be adequate for the
purposes for which they are used and are well maintained.
State Regulation
IDS Life is subject to the laws of the State of Minnesota governing
insurance companies and to the regulations of the Minnesota
Department of Commerce. An annual statement in the prescribed form
is filed with the Minnesota Department of Commerce each year
covering our operation for the preceding year and its financial
condition at the end of such year. Regulation by the Minnesota
Department of Commerce includes periodic examination to determine
IDS Life's contract liabilities and reserves so that the Minnesota
Department of Commerce may certify that these items are correct.
IDS Life's books and accounts are subject to review by the
Minnesota Department of Commerce at all times. Such regulation
does not, however, involve any supervision of the account's
management or IDS Life's investment practices or policies. In
addition, IDS Life is subject to regulation under the insurance
laws of other jurisdictions in which it operates. A full
examination of IDS Life's operations is conducted periodically by
the National Association of Insurance Commissioners.<PAGE>
PAGE 33
Under insurance guaranty fund laws, in most states, insurers doing
business therein can be assessed up to prescribed limits for
policyholder losses incurred by insolvent companies. Most of these
laws do provide however, that an assessment may be excused or
deferred if it would threaten an insurer's own financial strength.
Directors and executive officers
The directors and principal executive officers of IDS Life and the
principal occupation of each during the last five years is as
follows:
Directors
Louis C. Fornetti, 45
Director since March 1994; senior vice president and director, IDS,
since February 1985.
David R. Hubers, 52
Director since September 1989; president and chief executive
officer, IDS, since August 1993, and director, IDS, since January
1984. Senior vice president, Finance and chief financial officer,
IDS, from January 1984 to August 1993.
Richard W. Kling, 54
Director since February 1984; president since March 1994.
Executive vice president, Marketing and Products from January 1988
to March 1994. Senior vice president, IDS, since __________.
Director of IDS Life Series Fund, Inc. and manager of IDS Life
Variable Annuity Funds A and B.
Paul F. Kolkman, 48
Director since May 1984; executive vice president since March 1994;
vice president, Finance from May 1984 to March 1994; vice
president, IDS, since January 1987.
Peter A. Lefferts, 53
Director and executive vice president, Marketing since March 1994;
senior vice president and director, IDS, since February 1986.
Janis E. Miller, 43
Director and executive vice president, Variable Assets since March
1994; vice president, IDS, since June 1990. Director, Mutual Funds
Product Development and Marketing, IDS, from May 1987 to May 1990.
Director of IDS Life Series Fund, Inc. and manager of IDS Life
Variable Annuity Funds A and B.
James A. Mitchell, 53
Chairman of the board since March 1994; director since July 1984;
chief executive officer since November 1986; president from July
1984 to March 1994; executive vice president, IDS, since March
1994; director, IDS, since July 1984; senior vice president, IDS,
from July 1984 to March 1994.
Barry J. Murphy, 44
Director and executive vice president, Client Service, since March
1994; senior vice president, Operations, Travel Related Services<PAGE>
PAGE 34
(TRS), a subsidiary of American Express Company, since July 1992;
vice president, TRS, from November 1989 to July 1992; chief
operating officer, TRS, from March 1988 to November 1989.
Stuart A. Sedlacek, 37
Director and executive vice president, Assured Assets since March
1994; vice president, IDS, since September 1988.
Melinda S. Urion, 41
Director and controller since September 1991; executive vice
president since March 1994; vice president and treasurer from
September 1991 to March 1994; corporate controller, IDS, since
__________; vice president, IDS, since September 1991; chief
accounting officer, IDS, from July 1988 to September 1991.
Officers Other Than Directors
Timothy V. Bechtold, 41
Vice president, Insurance Product Development, since __________.
David J. Berry, 51
Vice president since __________.
Alan R. Dakay, 42
Vice president, Institutional Insurance Marketing, since
__________.
Robert M. Elconin, __
Vice president since __________.
Morris Goodwin Jr., 43
Vice president and treasurer since March 1994; vice president and
corporate treasurer, IDS, since July 1989; chief financial officer
and treasurer, IDS Bank & Trust, from January 1988 to July 1989.
Lorraine R. Hart, 43
Vice president, Investments, since __________.
Ryan R. Larson, 44
Vice president, Annuity Product Development, since __________.
Mary O. Neal, 41
Vice president, Sales Support, since __________.
James R. Palmer, 49
Vice president, Taxes, since __________.
F. Dale Simmons, 57
Vice president, Real Estate Loan Management, since __________.
William A. Stoltzmann, 46
Vice president, general counsel and secretary since 1985; vice
president and assistant general counsel, IDS, since __________.
*The address for all of the directors and principal officers is:
IDS Tower 10, Minneapolis, MN 55440-0010.
<PAGE>
PAGE 35
Executive compensation
Executive officers of IDS Life also may serve one or more
affiliated companies. The following table reflects cash
compensation paid to the five most highly compensated executive
officers as a group for services rendered in 19__ to IDS Life and
its affiliates. The table also shows the total cash compensation
paid to all executive officers of IDS Life, as a group, who were
executive officers at any time during 19__.
Name of individual Cash
or number in group Position held compensation
Five most highly
compensated executive
officers as a group:
All executive officers
as a group (12)
___________________________________________________________________
Security ownership of management
IDS Life's directors and officers do not beneficially own any
outstanding shares of stock of the company. All of the outstanding
shares of stock of IDS Life are beneficially owned by its parent,
American Express Financial Corporation. The percentage of shares
of American Express Financial Corporation owned by any director,
and by all directors and officers of IDS Life as a group, does not
exceed 1% of the class outstanding.
Legal proceedings and opinion
Legal matters in connection with federal laws and regulations
affecting the issue and sale of the contracts described in this
prospectus and the organization of IDS Life, its authority to issue
contracts under Minnesota law and the validity of the forms of the
contracts under Minnesota law have been passed on by the general
counsel of the IDS Life.
Experts
The consolidated financial statements of IDS Life Insurance Company
at Dec. 31, 1994 and 1993, and for each of the three years in the
period ended Dec. 31, 1994, appearing in this prospectus and
registration statement have been audited by Ernst & Young LLP,
independent auditors, as set forth in their reports thereon
appearing elsewhere herein and in the registration statement, and
are included in reliance upon such reports given upon the authority
of such firm as experts in accounting and auditing.
<PAGE>
PAGE 36
Appendix
1. Assume: contract effective date of October 1, 1993
contract termination date of July 1, 1998
contract year at termination is 5
Purchase Initial Current Accumulation
Year Payments Rate Rate Account Value
_________________________________________________________________
1 $10,000 6.50% 6.25% $12,560
2 8,000 6.00 6.25 9,870
3 12,000 6.25 6.25 13,960
4 15,000 7.50 6.75 16,660
5 20,000 6.50 6.50 20,640
_________________________________________________________________
Total Accumulation Account Value = $73,690
Withdrawal Charge = .03 x 73,690 = 2,211
Fixed Account Value = 73,690 - 2,211 = 71,479
Weighted Average Interest Rate = 6.433%
Interest Rate on New Purchase Payments = 6.750
MVA = $71,479 x (.06433 - .06750) x 5.0 = $-1,132.94
Market Value = 71,479 - 1,132.94 = 70,346.06
2. Assume: contract effective date of January 15, 1994
contract termination date of September 20, 1996
contract year at termination is 3
Purchase Initial Current Accumulation
Year Payments Rate Rate Account Value
_________________________________________________________________
1 $15,000 7.00% 6.25% $17,710
2 20,000 6.50 6.00 22,140
3 25,000 5.50 5.50 25,910
_________________________________________________________________
Total Accumulation Account Value = $65,760
Withdrawal Charge = .05 x 65,760 = 3,288
Fixed Account Value = 65,760 - 3,288 = 62,472
Weighted Average Interest Rate = 5.870%
Interest Rate on New Purchase Payments = 5.250
MVA = $62,472 x (.05870 - .05250) x 6 = $+2,323.96
Market Value = 62,472 + 2,323.96 = 64,795.96
IDS Life financial information
The financial statements shown below are those of the insurance
company and not those of the funds or the accounts. They are
included in the prospectus for the purpose of informing investors
as to the financial condition of the insurance company and its<PAGE>
PAGE 37
ability to carry out its obligations under the variable annuity
contracts.
[Financials to be inserted]
American Express Financial Advisors Inc. offers mutual funds,
investment certificates and a broad range of financial management
services. IDS Life offers insurance and annuities.
American Express Financial Advisors Inc. serves individuals and
businesses through its nationwide network of more than ___ offices
and more than ____ financial advisors.
Other subsidiaries provide investment management and related
services for pension, profit-sharing, employee savings and
endowment funds of businesses and institutions.
About IDS Life
The Group Variable Annuity Contract is issued by IDS Life, a wholly
owned subsidiary of American Express Financial Corporation, which
itself is a wholly owned subsidiary of the American Express
Company, a financial services company headquartered in New York
City.
IDS Life is a stock life insurance company organized in 1957 under
the laws of the State of Minnesota and located at IDS Tower 10,
Minneapolis, MN 55440-0010. We conduct a conventional life
insurance business in the District of Columbia and all states
except New York.
Periodic reports
We will send the owner quarterly, or more frequently as the Code
may require, a statement showing the number, type and value of
accumulation units credited to the contract. This statement will
be accurate as of a date not more than two months prior to the date
of mailing. In addition, every person having voting rights will
receive any required reports or prospectuses. We also will send
any statements that may be required by applicable laws, rules and
regulations showing contract restrictions.
Table of contents of the Statement of Additional Information
Performance information.......................
Rating agencies...............................
Principal underwriter.........................
Independent auditors..........................
Mortality and Expense Risk Charge.............
Prospectus....................................
Financial statements -
IDS Life Accounts F, IZ, JZ, G, H and N........
<PAGE>
PAGE 38
___________________________________________________________________
Please check the appropriate box to receive a copy of the Statement
of Additional Information for:
_____ IDS Life Group Variable Annuity Contract
_____ IDS Life Retirement Annuity Mutual Funds
Please return this request to:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55420
Your name _______________________________________________________
Address _________________________________________________________
City ______________________ State ______________ Zip ___________
<PAGE>
PAGE 39
STATEMENT OF ADDITIONAL INFORMATION
for
GROUP, UNALLOCATED FIXED/VARIABLE ANNUITY CONTRACTS
IDS LIFE ACCOUNTS F, IZ, JZ, G, H and N
May 1, 1995
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 May 1, 1995, is not
a prospectus. It should be read together with the accounts'
prospectus, dated May 1, 1995, which may be obtained from your
American Express financial advisor, 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 40
TABLE OF CONTENTS
Performance Information.......................................p.
Rating Agencies...............................................p.
Principal Underwriter.........................................p.
Independent Auditors..........................................p.
Mortality and Expense Risk Charge.............................p.
Prospectus....................................................p.
Financial Statements
- IDS Life Accounts F,IZ,JZ,G,H and N..............p.
<PAGE>
PAGE 41
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
withdrawal charge.
The account calculates its compound yield according to the
following formula:
365/7
Compound Yield = [return for seven-day period +1) ] - 1
On Dec. 31, 1994, 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 variable 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 Account G
IDS Life Account G invests in IDS Life Special Income Fund, Inc.
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<PAGE>
PAGE 42
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.
On Dec. 31, 1994, the account's annualized yield was _____%.
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 the deduction of the
applicable withdrawal charge; in addition, performance figures may
be shown without the deduction of a withdrawal charge. The
Securities and Exchange Commission requires that an assumption be
made that the contract owner withdraws 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
value of an investment over a specified period of time (reflecting
change in an accounts accumulation unit value) and is computed by
the following formula:
ERV - P
P
<PAGE>
PAGE 43
where: P = a hypothetical initial payment of $1,000
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof)
The following performance figures are calculated on the basis of
historical performance of the funds.
Average Annual Total Return Period Ended: Dec. 31, 1994
<TABLE><CAPTION>
Average Annual Total Return with Withdrawal
Since
Account investing in: 1 Year 3 Year 5 Year 10 Year Inception
<S> <C> <C> <C> <C> <C>
IDS LIFE
Aggressive Growth Fund (1/92)*
Capital Resource Fund (10/81)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
Average Annual Total Return without Withdrawal
Since
Account investing in: 1 Year 3 Year 5 Year 10 Year Inception
IDS LIFE
Aggressive Growth Fund (1/92)*
Capital Resource Fund (10/81)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
Aggregate Total Return Period Ended: Dec. 31, 1994
Aggregate Total Return
Since
Account investing in: 1 Year 3 Year 5 Year 10 Year Inception
IDS LIFE
Aggressive Growth Fund (1/92)*
Capital Resource Fund (10/81)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
* inception dates of the funds are shown in parentheses.
</TABLE>
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.
<PAGE>
PAGE 44
RATING AGENCIES
The following chart reflects the ratings given to IDS Life by
independent rating agencies. These agencies evaluate the financial
soundness and claims-paying ability of insurance companies based on
a number of different factors. This information does not relate to
the management or performance of the variable accounts of the
annuity. This information relates only to the fixed account and
reflects IDS Life's ability to make annuity payouts and to pay
distributions from the annuity.
Rating Agency Rating
A.M. Best A+
(Superior)
Duff & Phelps AAA
Moody's Aa2
PRINCIPAL UNDERWRITER
The principal underwriter for the accounts is IDS Life which offers
the variable annuities on a continuous basis.
Withdrawal charges received by IDS Life for 1994, 1993 and 1992,
aggregated $_________ $4,408,562 and $3,649,836, respectively.
Commissions paid by IDS Life for 1994, 1993 and 1992, aggregated
$16,783,495 and $10,334,092, respectively. The withdrawal charges
were applied toward payment of commissions.
INDEPENDENT AUDITORS
Ernst & Young LLP, 1400 Pillsbury Center, Minneapolis, MN 55402,
are the independent auditors of the financial statements of IDS
Life and the Separate Accounts.
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.
<PAGE>
PAGE 45
PROSPECTUS
The prospectus dated May 1, 1995, is hereby incorporated in this
Statement of Additional Information by reference.
<PAGE>
PAGE 46
PART C.
Item 24. Financial Statements and Exhibits
(a) To be filed by amendment.
(b) Exhibits:
1.1 Resolution of the Executive Committee of the Board of
Directors of IDS Life adopted May 13, 1981, filed
electronically as Exhibit 1.1 to Post-Effective Amendment No.
2 to Registration No. 33-47302, is incorporated herein by
reference.
1.2 Resolution of the Executive Committee of the Board of
Directors of IDS Life establishing Account N on April 17,
1985, filed electronically as Exhibit 1.2 to Post-Effective
Amendment No. 2 to Registration No. 33-47302, is incorporated
herein by reference.
1.3 Resolution of the Board of Directors of IDS Life establishing
Accounts IZ and JZ on September 20, 1991, filed
electronically as Exhibit 1.3 to Post-Effective Amendment No.
2 to Registration No. 33-47302, is incorporated herein by
reference.
2. Not applicable.
3. Not applicable.
4. Form of Group Deferred Variable Annuity Contract (form 34660)
dated April, 1992, filed electronically as Exhibit 4 to Post-
Effective Amendment No. 2 to Registration No. 33-47302, is
incorporated herein by reference.
5. Copy of Variable Group Deferred Annuity Contract Application
(form 34661) dated May, 1992, filed electronically as Exhibit
5 to Post-Effective Amendment No. 2 to Registration No. 33-
47302, is incorporated herein by reference.
6.1 Copy of Certificate of Incorporation of IDS Life, filed
electronically as Exhibit 6.1 to Post-Effective Amendment No.
2 to Registration No. 33-47302, is incorporated herein by
reference.
6.2 Copy of Amended By-Laws of IDS Life, filed electronically as
Exhibit 6.2 to Post-Effective Amendment No. 2 to Registration
No. 33-47302, is incorporated herein by reference.
7. Not applicable.
8. Not applicable.
9. Opinion of counsel and consent to its use as to the legality
of the securities registered was filed with Registrant's 24f-
2 Notice on or about Feb. 28, 1995.
10. Consent of Independent Auditors to be filed by amendment. <PAGE>
PAGE 47
11. Financial Statement Schedules and Report of Independent
Auditors to be filed by amendment.
12. Not applicable.
13. Copy of Schedule for computation of each performance
quotation filed in Registration Statement in response to item
24, filed electronically as Exhibit 13 to Post-Effective
Amendment No. 2 to Registration No. 33-47302, is incorporated
herein by reference.
14. N/A
15. Power of Attorney dated March 31, 1994, filed electronically
as Exhibit 15 to Post-Effective Amendment No. 2 to
Registration No. 33-47302, is incorporated herein
by reference.
Item 25. Directors and Officers of the Depositor
<TABLE><CAPTION>
Positions and
Name Principal Business Address Offices with Depositor
<S> <C> <C>
Timothy V. Bechtold IDS Tower 10 Vice President-Insurance
Minneapolis, MN 55440 Product Development
David J. Berry IDS Tower 10 Vice President
Minneapolis, MN 55440
Alan R. Dakay IDS Tower 10 Vice President-
Minneapolis, MN 55440 Institutional Insurance
Marketing
Louis C. Fornetti IDS Tower 10 Director
Minneapolis, MN 55440
Morris Goodwin Jr. IDS Tower 10 Vice President and Treasurer
Minneapolis, MN 55440
Lorraine R. Hart IDS Tower 10 Vice President-Investments
Minneapolis, MN 55440
David R. Hubers IDS Tower 10 Director
Minneapolis, MN 55440
Roger P. Husemoller IDS Tower 10 Vice President-
Minneapolis, MN 55440 Intercorporate Insurance
Operations
Richard W. Kling IDS Tower 10 Director and President
Minneapolis, MN 55440
Paul F. Kolkman IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President
<PAGE>
PAGE 48
Ryan R. Larson IDS Tower 10 Vice President-
Minneapolis, MN 55440 Annuity Product
Development
Peter A. Lefferts IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Marketing
Janis E. Miller IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Variable Assets
James A. Mitchell IDS Tower 10 Director, Chairman of
Minneapolis, MN 55440 the Board and Chief
Executive Officer
Barry J. Murphy IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Client Service
Mary O. Neal IDS Tower 10 Vice President-
Minneapolis, MN 55440 Sales Support
James R. Palmer IDS Tower 10 Vice President-Taxes
Minneapolis, MN 55440
F. Dale Simmons IDS Tower 10 Vice President-
Minneapolis, MN 55440 Real Estate
Loan Management
William A. Stoltzmann IDS Tower 10 Vice President, General
Minneapolis, MN 55440 Counsel and Secretary
Melinda S. Urion IDS Tower 10 Director, Executive
Minneapolis, MN 55440 Vice President and
Controller
</TABLE>
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
IDS Life Insurance Company is a wholly owned subsidiary
of American Express Financial Corporation. American
Express Financial Corporation is a wholly owned
subsidiary of American Express Company (American
Express).
The following list includes the names of major
subsidiaries of American Express.
Jurisdiction
Name of Subsidiary of Incorporation
I. Travel Related Services
American Express Travel Related
Services Company, Inc. New York
<PAGE>
PAGE 49
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
Jurisdiction
Name of Subsidiary of Incorporation
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Investment Services
Lehman Brothers Inc. Delaware
IV. Companies engaged in Investors
Diversified Financial Services
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Financial Advisors Inc. Delaware
American Express Financial Corporation Delaware
American Express Minnesota Foundation Minnesota
American Express Service Corporation Delaware
American Express Trust Company Minnesota
American Partners Life Insurance Company Arizona
IDS Advisory Group Inc. Minnesota
IDS Aircraft Services Corporation Minnesota
IDS Cable Corporation Minnesota
IDS Cable II Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
IDS Certificate Company Delaware
IDS Deposit Corp. Utah
IDS Fund Management Limited U.K.
IDS Futures Corporation Minnesota
IDS Futures III Corporation Minnesota
IDS Insurance Agency of Alabama Inc. Alabama
IDS Insurance Agency of Arkansas Inc. Arkansas
IDS Insurance Agency of Massachusetts Inc. Massachusetts
IDS Insurance Agency of Mississippi Inc. Mississippi
IDS Insurance Agency of Nevada Inc. Nevada
IDS Insurance Agency of New Mexico Inc. New Mexico
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Ohio Inc. Ohio
IDS Insurance Agency of Texas Inc. Texas
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS International, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
IDS Management Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Plan Services of California, Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Real Estate Services, Inc. Delaware
IDS Realty Corporation Minnesota
IDS Sales Support Inc. Minnesota
IDS Securities Corporation Delaware
Investors Syndicate Development Corp. Nevada<PAGE>
PAGE 50
Item 27. Number of Contractowners
As of ________, 1995, ___ (qualified) contracts have been
issued.
Item 28. Indemnification
The By-Laws of the depositor provide that it shall
indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that
he is or was a director, officer, employee or agent of
this Corporation, or is or was serving at the direction
of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture,
trust or other enterprise, to any threatened, pending or
completed action, suit or proceeding, wherever brought,
to the fullest extent permitted by the laws of the State
of Minnesota, as now existing or hereafter amended,
provided that this Article shall not indemnify or protect
any such director, officer, employee or agent against any
liability to the Corporation or its security holders to
which he would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless
disregard of his obligations and duties.
Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to director, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Item 29. Principal Underwriters
(a) IDS Life is the principal underwriter for IDS Life
Accounts F, IZ, JZ, G, H and N, IDS Life Variable
Annuity Fund A, IDS Life Variable Annuity Fund B,
IDS Life Account RE, IDS Life Account MGA and IDS
Life Account SLB.
(b) This table is the same as our response to Item 25 of
this Registration Statement.<PAGE>
PAGE 51
<TABLE><CAPTION>
(c) Name of Net Underwriting
Principal Discounts and Compensation on Brokerage
Underwriter Commissions Redemption Commissions Compensation
<S> <C> <C> <C> <C>
IDS Life None None None
</TABLE>
Item 30. Location of Accounts and Records
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) Registrant undertakes 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, 1989).
Further, Registrant represents that it has complied
with the provisions of paragraphs (1)-(4) of that
no-action letter.
<PAGE>
PAGE 52 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, certifies that it meets the requirements of Securities
Act Rule 486(b) for effectiveness of this Registration Statement
and has duly caused this Registration Statement to be signed on its
behalf in the City of Minneapolis, and State of Minnesota, on this
____ day of March, 1995.
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/ Richard W. Kling*
Richard W. Kling
President
As required by the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the
capacities indicated on this ____ day of March, 1995.
Signature Title
/s/ James A. Mitchell* Chairman of the Board
James A. Mitchell and Chief Executive
Officer
/s/ Richard W. Kling* Director and President
Richard W. Kling
/s/ Louis C. Fornetti* Director
Louis C. Fornetti
/s/ David R. Hubers* Director
David R. Hubers
/s/ Paul F. Kolkman* Director and Executive Vice
Paul F. Kolkman President
/s/ Peter A. Lefferts* Director and Executive Vice
Peter A. Lefferts President, Marketing
/s/ Janis E. Miller* Director and Executive Vice
Janis E. Miller President, Variable Assets
/s/ Barry J. Murphy* Director and Executive Vice
Barry J. Murphy President, Client Service
<PAGE>
PAGE 53
Signature Title
/s/ Stuart A. Sedlacek* Director and Executive Vice
Stuart A. Sedlacek President, Assured Assets
/s/ Melinda S. Urion* Director, Exective Vice
Melinda S. Urion President and Controller
*Signed pursuant to Power of Attorney dated March 31, 1994, filed
electronically as Exhibit 14.2 to Post-Effective Amendment No. 2 to
Registration No. 33-47302.
_____________________________
Mary Ellyn Minenko
<PAGE>
PAGE 54
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 2
This 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.
Financial Statements.
Part C.
Other Information.
The signatures.
Exhibits.
