Registration No. 2-74667
Registration No.811-3301
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 27 [X]
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [ ]
Amendment No. 29 [X]
(Check appropriate box or boxes)
----------------
SEPARATE ACCOUNT NO. 301
of
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Exact Name of Registrant)
----------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Name of Depositor)
787 Seventh Avenue, New York, New York 10019
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code: 1-(800) 248-2138
----------------
HOPE E. ROSENBAUM WERNER
VICE PRESIDENT AND COUNSEL
The Equitable Life Assurance Society of the United States
787 Seventh Avenue, New York, New York 10019
(Names and Addresses of Agents for Service)
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Please send copies of all communications to:
PETER E. PANARITES
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W., Suite 825
Washington, D.C. 20036
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<PAGE>
Approximate Date of Proposed Public Offering: As soon after the effective
date of this Post-Effective Amendment to the Registration Statement as is
practicable.
It is proposed that this filing will become effective (check appropriate
box):
[ ] Immediately upon filing pursuant to paragraph (b) of Rule 485.
[X] On May 1, 1996 pursuant to paragraph (b) of Rule 485.
[ ] 60 days after filing pursuant to paragraph (a) of Rule 485.
[ ] On (date) pursuant to paragraph (a) of Rule 485.
[ ] 75 days after filing pursuant to pragraph (a)(2) of Rule 485.
[ ] On (date) pursuant to paragraph (a)(3) of Rule 485.
If appropriate, check the following box:
[ ] This post-effective amendment designates a new effective date for
previously filed post-effective amendment.
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The Registrant has registered an indefinite number of securities
under the Securities Act of 1933 pursuant to Rule 24f-2.
The Rule 24f-2 Notice of the Registrant for fiscal year 1995 was
filed on February 27, 1996.
<PAGE>
CROSS REFERENCE SHEET
SHOWING LOCATION OF INFORMATION IN PROSPECTUS
FORM N-4 ITEM PROSPECTUS CAPTION
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1. Cover Page Cover Page
2. Definitions Summary - Questions and Answers
3. Synopsis Summary - Questions and Answers
4. Condensed Financial Certificate
Information Provisions - Investment of
Contributions in the Investment
Divisions
5. General Description of Equitable; Our Separate
Registrant, Depositor and Account
Portfolio Companies
6. Deductions and Expenses Deductions and Charges
7. General Description of Certificate Provisions
Variable Annuity Contracts
8. Annuity Period Certificate Provisions
9. Death Benefit Certificate Provisions - Death
and Disability Benefits
10. Purchases and Contract Value Certificate Provisions
11. Redemptions Certificate Provisions -
Retirement Benefits
12. Taxes Federal Income Tax Aspects of the
Retirement Programs
13. Legal Proceedings Not Applicable
14. Table of Contents of the Table of Contents of the
Statement of Additional Statement of Additional
Information Information
<PAGE>
CROSS REFERENCE SHEET
SHOWING LOCATION OF INFORMATION
IN STATEMENT OF ADDITIONAL INFORMATION
STATEMENT OF ADDITIONAL
FORM N-4 ITEM INFORMATION CAPTION
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15. Cover Page Cover Page
16. Table of Contents Table of Contents
17. General Information Part 3: Reorganization
18. Services Not Applicable
19. Purchase of Certificate
Securities Being Provisions - Transfers
Offered Among the Investment Options in
the Prospectus
20. Underwriters Our Separate Account - the Trust
in the Prospectus
21. Calculation of Comparative Investment
Performance Data Performance in the Prospectus
22. Annuity Payments Not Applicable
23. Financial Statements Financial Statements
<PAGE>
PROSPECTUS
CERTIFICATES AND GROUP ANNUITY CONTRACTS
FUNDED THROUGH THE INVESTMENT FUNDS OF
SEPARATE ACCOUNT NO. 301
OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
787 SEVENTH AVENUE, NEW YORK, NEW YORK 10019
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This prospectus describes certificates and group annuity contracts which are
designed for use in connection with IRAs, TSAs, SEPs and SARSEPs, all
qualifying for favorable tax treatment under the Internal Revenue Code of
1986, as amended.
Contributions may be put into one or more of twelve Investment Options:
<TABLE>
<CAPTION>
<S> <C> <C>
SEPARATE ACCOUNT INVESTMENT FUNDS GENERAL ACCOUNT OPTIONS
o Money Market o Common Stock o 1 Year Guaranteed
o Intermediate Government o Aggressive Stock Rate Account
Securities o Global o 3 Year Guaranteed
o High Yield o Conservative Investors Rate Account
o Balanced o Growth Investors
o Growth & Income
</TABLE>
Each of the Investment Funds invests in shares of a corresponding portfolio
(PORTFOLIO) of The Hudson River Trust (TRUST), a mutual fund whose shares are
purchased by the separate accounts of insurance companies. The prospectus for
the Trust directly follows this Prospectus and describes the investment
objectives, policies and risks of the Trust's Portfolios.
This prospectus provides information that you should know before investing,
and should be read and retained for future reference. This prospectus is not
valid unless it is attached to a current prospectus for the Trust, which you
should also read carefully.
For further information and assistance, you should contact our Administrative
Office at P.O. Box 2468, G.P.O., New York, New York 10116. You may also call
the following toll-free number: 1-800-248-2138.
A Statement of Additional Information (SAI), dated May 1, 1996, has been filed
with the Securities and Exchange Commission. The SAI has been incorporated by
reference into this prospectus. The SAI is available at no charge by writing to
the above address or by calling the telephone number listed above. The table of
contents to the SAI appears on page 20 of this prospectus. You may also request
an SAI for the Trust.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE DATE OF THIS PROSPECTUS IS MAY 1, 1996.
Copyright 1996 The Equitable Life Assurance Society of the United States. All
rights reserved.
<PAGE>
TABLE OF CONTENTS
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<TABLE>
<CAPTION>
PAGE
<S> <C>
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SUMMARY--QUESTIONS AND ANSWERS ................................... 3
Fee Table ....................................................... 5
Example ......................................................... 6
Summary of Unit Values .......................................... 6
EQUITABLE LIFE ................................................... 7
OUR SEPARATE ACCOUNT ............................................. 7
The Trust ....................................................... 8
CERTIFICATE PROVISIONS ........................................... 10
Participants, Certificate Owners and Annuitants ................. 10
Contributions ................................................... 10
Investment of Contributions in the Investment Funds ............ 10
Guaranteed Rate Accounts ........................................ 11
Withdrawals ..................................................... 12
Transfers Among the Investment Options .......................... 12
Death and Disability Benefits ................................... 13
Retirement Benefits ............................................. 13
Revocation Rights ............................................... 15
Miscellaneous ................................................... 15
COMPARATIVE INVESTMENT PERFORMANCE ............................... 15
Annual Percent Changes in Unit Value ............................ 16
Annualized Rates of Return ...................................... 16
FEDERAL INCOME TAX ASPECTS OF THE RETIREMENT PROGRAMS ........... 17
Tax-Sheltered Annuity Arrangements (TSAs) ....................... 17
Individual Retirement Annuities (IRAs) .......................... 17
IRAs Under Simplified Employee Pension Plans (SEPs) ............ 17
DEDUCTIONS AND CHARGES ........................................... 17
Participant Service Charge ...................................... 17
Administration Charge ........................................... 18
Other Expenses .................................................. 18
Deductions and Expenses of the Trust ............................ 18
Expense Limitations ............................................. 18
Fixed Annuity Administrative Charge ............................. 18
SEP/SARSEP Enrollment Fee ....................................... 18
Guaranteed Rate Account Premature Withdrawal Charge ............ 18
Charge for Premium or Applicable Taxes ......................... 18
VOTING RIGHTS .................................................... 19
Trust Voting Rights ............................................. 19
How We Determine a Participant's Voting Shares .................. 19
How Trust Shares Are Voted ...................................... 19
Voting Privileges of Participants in Other Separate Accounts ... 19
Separate Account Voting Rights .................................. 19
Changes in Applicable Law ....................................... 20
REPORTS .......................................................... 20
REGULATION ....................................................... 20
ADDITIONAL INFORMATION ........................................... 20
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION ........ 20
</TABLE>
2
<PAGE>
SUMMARY--QUESTIONS
AND ANSWERS
WHAT RETIREMENT PROGRAMS ARE OFFERED
UNDER THE CERTIFICATES AND CONTRACTS?
In this prospectus we describe group annuity contracts and certificates
issued under group annuity contracts that are used in connection with
retirement programs that qualify for Federal tax benefits under the Internal
Revenue Code of 1986, as amended (the CODE). Individuals who make
contributions or for whom contributions are made are Participants. We offer
IRAs, TSAs, SEPs and SARSEPs under a group annuity contract between Equitable
Life and the Chase Manhattan Bank, N.A. (CHASE) as the Contract Holder.
Individual certificates are issued to each Participant to describe the
Participant's interest under the contract. In summary, the retirement
programs we offer are:
o Individual retirement annuities (IRAS) for eligible individuals which
qualify for favorable tax treatment under Code Section 408(b);
o Tax-sheltered annuity arrangements (TSAS) for employees of tax-exempt
organizations and public schools which qualify for favorable tax treatment
under Code Section 403(b); and
o Simplified employee pension plans (SEPS) sponsored by sole
proprietorships, partnerships and corporations. Contributions for each
eligible employee are made by an employer to the IRA certificate issued to
the employee. A SEP may include a salary reduction arrangement (SARSEP).
Under the arrangement, an employee can elect to have the employer contribute
part of his or her pay to the IRA. Unless otherwise noted, references to SEP
certificates in the prospectus include SARSEP arrangements. Each individual
Participant covered by the SEP is the owner and annuitant of the IRA
certificate set up on his or her behalf.
For more information about these tax favored programs, see "Federal Income
Tax Aspects of the Retirement Programs" and, in the SAI, "Part 1--Federal Tax
Considerations of the Retirement Programs."
WHAT ARE THE AVAILABLE INVESTMENT
OPTIONS?
Twelve options are available for the investment of contributions. The ten
INVESTMENT FUNDS of SEPARATE ACCOUNT No. 301 are the Money Market,
Intermediate Government Securities, High Yield, Balanced, Growth & Income,
Common Stock, Aggressive Stock, Global, Conservative Investors and Growth
Investors Funds. Additionally, a one-year and a three-year Guaranteed Rate
Account, which are part of our General Account, are available. The
Conservative Investors and Growth Investors Funds are Asset Allocation
Options.
Each of the Investment Funds invests in a corresponding Portfolio of the
Trust. Collectively, the ten Investment Funds and the Guaranteed Rate
Accounts are called the "INVESTMENT OPTIONS" or "OPTIONS." The availability
of Investment Options to Participants may be limited in some cases.
Participants should check with their employers or plan trustees.
HOW ARE CONTRIBUTIONS MADE AND
INVESTED?
Contributions should be made by check or money order payable to Equitable
Life. Contributions under the certificates may be made at any time by the
Participant or, in the case of a TSA or SEP, by the employer on the
Participant's behalf. An employer may arrange to have contributions deducted
from a Participant's salary and in these cases will automatically transfer
those amounts deducted to us for investment as directed by the Participant.
Only in the case of an IRA or SEP certificate can the Participant make
contributions to us directly (by completing the appropriate form and
enclosing the payment).
Contributions will be allocated to the Investment Options pursuant to
instructions we receive from the Participant. See "Certificate
Provisions--Investment of Contributions in the Investment Funds." In the SAI,
see "Part 2--The Guaranteed Rate Accounts" for details.
3
<PAGE>
IS THERE A MINIMUM CONTRIBUTION AMOUNT?
There is no minimum contribution amount; however, if a Participant is
contributing through an employer, the employer may have a minimum. See
"Certificate Provisions--Contributions."
CAN THE ALLOCATION OF CONTRIBUTIONS
AMONG THE INVESTMENT OPTIONS BE
CHANGED?
The Participant may change the allocation of contributions among the
Investment Options as often as the Participant wishes by telephone. See
"Certificate Provisions--Contributions." Changing the allocation of
contributions does not cause a reallocation of amounts previously invested.
CAN AMOUNTS BE TRANSFERRED AMONG
THE INVESTMENT OPTIONS?
All or part of a Participant's Account Balance in one Investment Fund may be
transferred to any other Investment Fund as often as the Participant wishes
and without charge or tax liability. Transfers from the Guaranteed Rate
Accounts are subject to special rules. Instructions to transfer amounts among
the Options must be made in writing, unless we have the Participant's
authorization to accept telephone transfers. Transferring amounts does not
affect the allocation of future contributions. For more information regarding
restrictions and other matters, see "Certificate Provisions--Transfers Among the
Investment Options" and, in the SAI, "Part 2--The Guaranteed Rate Accounts."
WHAT RETIREMENT OPTIONS ARE AVAILABLE?
At retirement, a Participant may choose to receive monthly fixed annuity
payments funded through our General Account, periodic distributions from the
Investment Options, a lump sum or a combination of these benefits. For more
information, see "Certificate Provisions--Retirement Benefits."
WHAT ARE THE DEATH AND DISABILITY
BENEFITS?
If a Participant becomes disabled or dies before the Participant's retirement
date as defined in the certificate (RETIREMENT DATE), we will pay the Account
Balance as a disability benefit to the Participant or as a death benefit to a
beneficiary designated by the Participant. See "Certificate Provisions--
Death and Disability Benefits."
CAN WITHDRAWALS BE MADE UNDER THE
CERTIFICATES?
Unless restricted by the retirement program under which the Participant is
covered or by provisions of the Code, all or any portion of the Participant's
Account Balance and, subject to penalty, the Participant's Guaranteed Rate
Account Cash Value may be withdrawn at any time prior to retirement. See in
the SAI, "Part 2--The Guaranteed Rate Accounts."
Withdrawals may result in adverse tax consequences, including a 10% penalty
on early withdrawals. Certain withdrawal restrictions apply to TSA
certificates. We urge each Participant to consult a tax advisor before making
a withdrawal. See "Certificate Provisions--Withdrawals" and "Federal Income
Tax Aspects of the Retirement Programs" and, in the SAI, "Part 1--Federal Tax
Considerations of the Retirement Programs" for more information.
CAN PARTICIPATION BE REVOKED?
The Participant has a right to revoke participation under a certificate. In
most states, the Participant must exercise this right within 10 days of
receipt of the certificate. The Participant should consult a tax advisor
before deciding to revoke, as cancellation may have adverse tax consequences.
See "Certificate Provisions--Revocation Rights"; and, in the SAI, see "Part
1--Federal Tax Considerations of the Retirement Programs."
WHAT IS EQUITABLE LIFE'S ADDRESS?
All communications to Equitable Life, except contributions, should be
addressed to Equitable Life 300+ Series, Box 2468, G.P.O., New York, New York
10116. Contribution checks should be addressed to Equitable Life 300+ Series,
P.O. Box 13871, Newark, New Jersey 07188-0871.
4
<PAGE>
FEE TABLE
The Table gives effect to generally applicable charges. The Table reflects
expenses of both the Separate Account and the Trust for the year ended
December 31, 1995. Certain expenses and fees shown in this Table may not
apply to each certificate. To determine whether a particular item in the
Table applies (and the actual amount, if any), consult the portion of the
prospectus indicated in the notes to the Table. Other charges, such as
enrollment fees and premium taxes, may be applicable. See "Deductions and
Charges."
<TABLE>
<CAPTION>
INTERMEDIATE
MONEY GOVERNMENT HIGH
MARKET SECURITIES YIELD
---------- -------------- -------
<S> <C> <C> <C>
TRANSACTION EXPENSES
Sales Load on Purchases None
Annual Participant
Service Charge (1) $30 maximum
SEPARATE ACCOUNT ANNUAL
EXPENSES (AS A
PERCENTAGE OF EACH
INVESTMENT FUND'S
AVERAGE VALUE)
Administration Charge 0.25% 0.25% 0.25%
Other Expenses 0.24% 0.31% 0.57%
Total Separate
Account Annual
Expenses 0.49% 0.56% 0.82%
TRUST ANNUAL EXPENSES
(AS A PERCENTAGE OF
EACH PORTFOLIO'S
AVERAGE NET ASSETS)
Management Fees 0.40%(2) 0.50%(2) 0.55%
Other Expenses 0.04% 0.07% 0.05%
Total Trust Annual
Expenses 0.44% 0.57% 0.60%
TOTAL SEPARATE ACCOUNT
AND TRUST ANNUAL EXPENSE
BEFORE APPLICABLE
REIMBURSEMENT 0.93% 1.13% 1.42%
EXPENSE REIMBURSEMENT 0.05% 0.15% --
TOTAL SEPARATE ACCOUNT
AND TRUST ANNUAL
EXPENSES AFTER
APPLICABLE
REIMBURSEMENT (3) 0.88% 0.98% 1.42%
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
GROWTH & COMMON AGGRESSIVE CONSERVATIVE GROWTH
BALANCED INCOME STOCK STOCK GLOBAL INVESTORS INVESTORS
---------- ---------- -------- ------------ -------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
TRANSACTION EXPENSES
Sales Load on Purchases None
Annual Participant
Service Charge (1) $30 maximum
SEPARATE ACCOUNT ANNUAL
EXPENSES (AS A
PERCENTAGE OF EACH
INVESTMENT FUND'S
AVERAGE VALUE)
Administration Charge 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Other Expenses 0.22% 0.62% 0.22% 0.33% 0.36% 1.09% 1.00%
Total Separate
Account Annual
Expenses 0.47% 0.87% 0.47% 0.58% 0.60% 1.34% 1.25%
TRUST ANNUAL EXPENSES
(AS A PERCENTAGE OF
EACH PORTFOLIO'S
AVERAGE NET ASSETS)
Management Fees 0.37% 0.55% 0.35% 0.46% 0.53% 0.55% 0.52%
Other Expenses 0.03% 0.05% 0.03% 0.03% 0.08% 0.04% 0.04%
Total Trust Annual
Expenses 0.40% 0.60% 0.38% 0.49% 0.61% 0.59% 0.56%
TOTAL SEPARATE ACCOUNT
AND TRUST ANNUAL EXPENSE
BEFORE APPLICABLE
REIMBURSEMENT 0.87% 1.47% 0.85% 1.07% 1.21% 1.93% 1.81%
EXPENSE REIMBURSEMENT -- -- -- -- -- -- --
TOTAL SEPARATE ACCOUNT
AND TRUST ANNUAL
CAPITAL PRINTING SYSTEMS]
EXPENSES AFTER
APPLICABLE
REIMBURSEMENT (3) 0.87% 1.47% 0.85% 1.07% 1.21% 1.93% 1.81%
</TABLE>
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(1) See "Deductions and Charges--Participant Service Charge."
(2) The annual amount of Management Fees applicable to the Money
Market and Intermediate Government Securities Portfolios is
limited to 0.35% of the value of those Portfolios' average daily
assets. This limitation is a contractual right for Participants
who enrolled in the program prior to May 1, 1987 and cannot be
changed without their consent. Equitable Life has voluntarily
agreed to impose this limitation for all other Participants and
reserves the right to discontinue it at any time. See "Deductions
and Charges--Expense Limitations."
(3) The amounts shown in the Table under "Separate Account Annual
Expenses" and under "Trust Annual Expenses" for the Money Market,
Intermediate Government Securities, Balanced and Common Stock
Funds, when added together, are limited by the certificates and
contracts to 1% of the value of the Money Market Fund's average
daily net assets and 1.5% of the value of the Common Stock,
Government Securities or Balanced Funds' average daily net assets.
For the High Yield, Aggressive Stock and Global Funds, Equitable
Life applies a voluntary expense limitation at an effective annual
rate of 1.5% of average daily net assets of each Fund. See
"Deductions and Charges--Expense Limitations."
5
<PAGE>
EXAMPLE. The purpose of this Table is to assist the Participant in
understanding the various costs and expenses which the Participant may bear
directly or indirectly under your certificate. The Table reflects expenses of
both the Separate Account and the Trust.
The examples below show the expenses that the Participant would pay, assuming
a single investment of $1,000 in each Investment Fund listed and a 5% annual
return on assets(1). Applicable expenses are the same whether or not the
Participant withdraws all or part of the Account Balance at the end of each
time period shown. These figures are based on the expenses set forth in the
preceding table after applicable expense reimbursements. For purposes of
these examples, the Participant Service Charge is computed by applying a
Participant Service Charge of $12 to the average number of Participants for
the year, divided by the average Fund assets for the same period.
<TABLE>
<CAPTION>
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1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------- --------- --------- ----------
<S> <C> <C> <C> <C>
Money Market ....................... $ 9.72 $30.33 $ 52.63 $116.66
Intermediate Government Securities 10.73 33.46 58.00 128.21
High Yield ......................... 15.20 47.18 81.41 177.82
Balanced ........................... 9.61 29.99 52.04 115.40
Growth & Income .................... 15.70 48.71 83.99 183.22
Common Stock ....................... 9.41 29.39 51.01 113.16
Aggressive Stock ................... 11.64 36.28 62.82 138.54
Global ............................. 13.07 40.66 70.31 154.46
Conservative Investors ............. 20.35 62.85 107.87 232.39
Growth Investors ................... 19.14 59.19 101.70 219.82
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</TABLE>
These examples should not be considered a representation of past or future
expenses for each Investment Fund or Portfolio. Actual expenses may be
greater or less than those shown above. Similarly, the annual rate of return
assumed in the examples is not an estimate or guarantee of future investment
performance.
- ----------
(1) An Account Balance could not be converted to an annuity at the end of
any of the periods shown in the examples. For any form of annuity
distribution, the minimum amount applied must be $2,000, and the
minimum initial annuity payment must be at least $20. See "Certificate
Provisions--Retirement Benefits." In some cases, charges for state
premium or other taxes will be deducted from the amount applied.
SUMMARY OF UNIT VALUES. Unit Values for the Money Market, Intermediate
Government Securities, Balanced and Common Stock Funds shown in the table
below include periods prior to June 1987, when four open-end managed separate
accounts (PREDECESSOR SEPARATE ACCOUNTS) were reorganized into the Separate
Account in unit investment trust form. The Unit Value for each Predecessor
Separate Account was established at $10.00 on February 5, 1982, the date that
contributions of Participants were first allocated to those separate
accounts.
The Unit Values shown are the same as they would have been if the Separate
Account had operated as a unit investment trust investing in the Trust for
all the periods shown, as currently reported in the Trust's prospectus and
Statement of Additional Information. Because the High Yield, Aggressive Stock
and Global Funds do not have corresponding Predecessor Separate Accounts, no
unit values are presented for them prior to June 1987. Because the Growth &
Income, Conservative Investors and Growth Investors do not have corresponding
Predecessor Separate Accounts, no unit values are presented for them prior to
May 1994.
6
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------
UNIT VALUES
INTERMEDIATE
GOVERNMENT HIGH
MONEY MARKET SECURITIES* YIELD
LAST BUSINESS DAY OF FUND FUND FUND
- -------------------- ------------- -------------- --------
<S> <C> <C> <C>
December 1985 ....... $14.41 $18.45 --
December 1986 ....... 15.26 21.86 --
December 1987 ....... 16.14 22.41 $10.41
December 1988 ....... 17.23 23.63 11.60
December 1989 ....... 18.73 27.19 11.67
December 1990 ....... 20.17 28.79 11.11
December 1991 ....... 21.29 32.73 13.84
December 1992 ....... 21.93 34.34 15.40
December 1993 ....... 22.48 37.77 18.84
December 1994 ....... 23.32 36.13 18.18
December 1995 ....... 24.55 40.82 21.67
Number of Units
Outstanding at
December 31, 1995
(000's) ............ 850 153 87
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
COMMON
BALANCED STOCK AGGRESSIVE GLOBAL GROWTH & CONSERVATIVE GROWTH
LAST BUSINESS DAY OF FUND FUND STOCK FUND FUND INCOME INVESTORS INVESTORS
- -------------------- ---------- -------- ------------ -------- ---------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
December 1985 ....... $21.80 $24.15 -- -- -- -- --
December 1986 ....... 24.57 28.00 -- -- -- -- --
December 1987 ....... 23.88 29.88 $ 8.59 $ 8.58 -- -- --
December 1988 ....... 27.04 33.04 8.70 9.58 -- -- --
December 1989 ....... 33.91 40.94 12.47 11.97 -- -- --
December 1990 ....... 33.76 35.87 13.34 11.23 -- -- --
December 1991 ....... 47.50 51.55 23.43 14.20 -- -- --
December 1992 ....... 45.92 52.97 22.54 14.01 -- -- --
December 1993 ....... 51.38 65.89 26.14 18.40 -- -- --
December 1994 ....... 47.03 64.13 24.95 19.25 $9.92 $9.92 $9.79
December 1995 ....... 56.07 84.56 32.67 22.76 12.21 11.79 12.23
Number of Units
Outstanding at
December 31, 1995
(000's) ............ 617 673 190 201 134 75 93
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</TABLE>
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*Prior to September 6, 1991, the Bond Fund.
EQUITABLE LIFE
Equitable Life is a diversified financial services organization serving a
broad spectrum of insurance, investment management and investment banking
customers. We are a New York stock life insurance company that has been in
business since 1859. For more than 100 years we have been among the largest
life insurance companies in the United States. Our Home Office is located at
787 Seventh Avenue, New York, New York 10019. We are authorized to sell life
insurance and annuities in fifty states, the District of Columbia, Puerto
Rico and the Virgin Islands. We maintain local offices throughout the United
States. Equitable Life and its subsidiaries managed assets of approximately
$195.3 billion as of December 31, 1995. Millions of Americans are covered by
Equitable Life health, life, annuity and pension contracts.
Equitable Life is a wholly-owned subsidiary of The Equitable Companies
Incorporated (HOLDING COMPANY). The largest stockholder of the Holding
Company is AXA, a French insurance holding company. AXA beneficially owns
60.6% of the outstanding shares of common stock of the Holding Company as
well as $392.2 million stated value of its issued and outstanding Series E
Convertible Preferred Stock. Under its investment arrangements with Equitable
Life and the Holding Company, AXA is able to exercise significant influence
over the operations and capital structure of the Holding Company and its
subsidiaries, including Equitable Life. AXA is the principal holding company
for most of the companies in one of the largest insurance groups in Europe.
The majority of AXA's stock is controlled by a group of five French mutual
insurance companies.
OUR SEPARATE ACCOUNT
The aggregate assets of all the Investment Funds are held in our Separate
Account
No. 301, which was established on October 19, 1981 under the New York
Insurance Law. The Separate Account is organized as a unit investment trust
registered with the Securities and Exchange Commission (SEC) under the
Investment Company Act of 1940 (1940 ACT). This registration does not involve
any supervision by the SEC of the management or investment policies of the
Separate Account.
The Separate Account currently has ten investment funds: a Money Market Fund,
an Intermediate Government Securities Fund, a High Yield Fund, a Balanced
Fund, a Growth & Income Fund, a Common Stock Fund, an Aggressive Stock Fund,
a Global Fund, a Conservative Investors Fund and a Growth Investors Fund,
each of which invests in shares of a corresponding Portfolio of the Trust.
The assets of the Separate Account are our property. The certificates provide
that the portion of the Separate Account's assets equal to the reserves and
other contract liabilities with respect to the Separate Account will not be
chargeable with liabilities arising out of any other business we may conduct.
7
<PAGE>
Accordingly, income, gains or losses, whether or not realized, from assets of
the Separate Account are credited to or charged against the Separate Account
without regard to Equitable's other income, gains or losses. We are the
issuer of the certificates and the obligations set forth therein, other than
those of Participants or employers, are ours.
In addition to contributions made under the certificates described in this
Prospectus, we may allocate to the Separate Account monies received under
other agreements or annuity contracts. Each Participant will participate in
the Separate Account in proportion to the amount in the Separate Account
attributable to such Participant's certificate. We may transfer to our
General Account any of the Separate Account's assets that are in excess of
the reserves and other liabilities relating to the certificates described in
this prospectus or certain other contracts.
We reserve the right, subject to compliance with applicable law, including
approval of the Participants, if required, (1) to cause the registration or
deregistration of the Separate Account under the Investment Company Act of
1940, (2) to operate the Separate Account under the direction of a committee
and to discharge such committee at any time, (3) to restrict or eliminate any
voting rights of Participants or other persons who have voting rights as to
the Separate Account, (4) to add, change or remove the designated investment
company, (5) to add, change or remove Investment Funds, (6) to combine any
two or more Investment Funds, (7) to transfer assets from any one of the
Investment Funds to another Investment Fund, and (8) to operate the Separate
Account or one or more of the Investment Funds by making direct investments
or investments in any other form Equitable Life in its sole discretion
determines.
We may make other changes in the certificates that do not reduce any Cash
Value, Account Balance, Annuity Value or Annuity Benefit or other accrued
rights or benefits.
Equico Securities, Inc. (EQUICO), a wholly-owned subsidiary of Equitable
Life, performs all sales functions for the Separate Account and may be deemed to
be its principal underwriter under the 1940 Act. Equico is also the principal
underwriter of The Hudson River Trust. Equico is registered with the SEC as a
broker-dealer under the Securities Exchange Act of 1934 (EXCHANGE ACT) and is
a member of the National Association of Securities Dealers, Inc. Equico's
principal business address is 1755 Broadway, New York, New York 10019. The
offering described in the prospectus will be made through registered
representatives of Equico.
THE TRUST
The Trust is an open-end, diversified management investment company, more
commonly called a mutual fund. As a "series" type of mutual fund, it issues
several different series of stock, each of which relates to a different
Portfolio of the Trust. The Trust has twelve different Portfolios.
Participants may invest in any of ten Investment Funds of the Separate
Account, which, in turn, invest in corresponding Portfolios of the Trust. The
Trust commenced operations in June 1987. The Trust does not impose a sales
charge or "load" for buying and selling its shares. All dividend
distributions from the Trust are reinvested in full and fractional shares of
the Portfolio to which they relate.
More detailed information about the Trust, its investment objectives,
policies, restrictions, risks, expenses and all other aspects of its
operations, appears in its prospectus, which is the second part of this
booklet, or in its statement of additional information.
The Trust's Investment Adviser. The Trust is advised by Alliance Capital
Management L.P. (ALLIANCE), which is registered with the SEC as an investment
adviser under the Investment Advisers Act of 1940. On December 31, 1995,
Alliance was managing over $146.5 billion in assets. Alliance acts as an
investment adviser to various separate accounts and general accounts of
Equitable Life and other affiliated insurance companies. Alliance also
provides management and consulting services to mutual funds, endowment funds,
insurance companies, foreign entities, qualified and non-tax
8
<PAGE>
qualified corporate funds, public and private pension and profit-sharing
plans, foundations and tax-exempt organizations.
Alliance's main office is located at 1345 Avenue
of the Americas, New York, New York 10105. Alliance, a publicly-traded
limited partnership, is indirectly majority-owned by Equitable Life.
The advisory fee payable by the Trust is based on the following annual
percentages of the value of each Portfolio's daily average net assets:
<TABLE>
<CAPTION>
DAILY AVERAGE NET ASSETS
------------------------------------------------------------------
NEXT $400 OVER $750
PORTFOLIO FIRST $350 MILLION MILLION MILLION
- -------------------- ------------------------ -------------- --------------
<S> <C> <C> <C>
Common Stock, Money
Market and Balanced .400% .375% .350%
Aggressive Stock and
Intermediate
Government
Securities ......... .500% .475% .450%
Growth & Income,
High Yield, Global,
Conservative
Investors and
Growth Investors .. .550% .525% .500%
</TABLE>
Investment Policies of the Trust's Portfolios. Each Portfolio has a different
investment objective which it tries to achieve by following separate
investment policies. The objectives and policies of each Portfolio will
affect its return and its risks. There is no guarantee that these objectives
will be achieved.
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT POLICY OBJECTIVE
- ---------------- -------------------------- ------------------------
<S> <C> <C>
Money Market Primarily high quality High level of current
short-term money market income while preserving
instruments assets and maintaining
liquidity
Intermediate Primarily debt securities High current income con-
Government issued or guaranteed by sistent with relative
Securities the U.S. Government, its stability of principal
agencies and instrumen-
talities. Each investment
will have a final maturity
of not more than 10 years
or a duration not exceed-
ing that of a 10-year
Treasury note
High Yield Primarily a diversified High return by maximiz-
mix of high yield, fixed ing current income and,
income securities involv- to the extent consistent
ing greater volatility of with that objective,
price and risk of princi- capital appreciation
pal and income than high
quality fixed income secu-
rities. The medium and
lower quality debt securi-
ties in which the Portfo-
lio may invest are known
as "junk bonds"
Balanced Primarily common stocks, High return through a
publicly-traded debt se- combination of current
curities and high quality income and capital ap-
money market instruments preciation
Growth & Income Primarily income producing High total return
common stocks and securi- through a combination of
ties convertible into com- current income and capi-
mon stocks tal appreciation
Common Stock Primarily common stock and Long-term growth of
other equity-type instru- capital and increasing
ments income
Aggressive Stock Primarily common stocks Long-term growth of
and other equity-type se- capital
curities issued by medium
and other smaller sized
companies with strong
growth potential
Global Primarily equity securi- Long-term growth
ties of non-United States of capital
as well as United States
companies
ASSET ALLOCATION SERIES:
Conservative Diversified mix of pub- High total return with-
Investors licly traded fixed-income out, in the adviser's
and equity securities; as- opinion, undue risk to
set mix and security se- principal
lection primarily based
upon factors expected to
reduce risk
Growth Investors Diversified mix of High total return con-
publicly-traded, fixed in- sistent with the advis-
come and equity securi- er's determination of
ties; asset mix and secu- reasonable risk
rity selection based upon
factors expected to in-
crease possibility of high
long-term return
</TABLE>
9
<PAGE>
CERTIFICATE PROVISIONS
An employer may, in certain circumstances, limit a Participant's rights under
a certificate. The Participant should check the provisions of the employer's
plan or agreements with the Participant to see if there are any such
limitations and, if so, what they are.
PARTICIPANTS, CERTIFICATE OWNERS
AND ANNUITANTS
Individuals who make contributions or individuals for whom contributions are
made under certificates are Participants. Each Participant is also an
Annuitant, meaning the person upon whose life the certificate is issued and
the person who is entitled to receive benefit payments. Each Participant is
also the owner of the certificate. Under an IRA, a Participant's spouse may
also become a Participant by establishing a spousal IRA. In such case, we
will issue a separate certificate to the spouse.
CONTRIBUTIONS
Frequency and Amount. In the case of an IRA or SEP, the Participant or
employer makes contributions by completing the appropriate contribution form
and enclosing the payment. There is no minimum contribution amount except for
any established by an employer for contributions made by payroll deductions.
Contributions should be sent by check or money order to Equitable Life 300+
Series and made payable to Equitable Life.
Contributions made by payroll deduction must be sent to us by the
Participant's employer.
Annual contributions to a retirement program may be subject to maximum limits
imposed by the Code. See the SAI, "Part 1--Federal Tax Considerations of the
Retirement Programs" for a discussion of these limitations. We do not monitor
whether or not the contributions made under any of the retirement programs
may be in excess of the maximum limits imposed by the Code, but we reserve
the right to refuse contributions we believe to be in excess of such maximum
levels.
Subject to any restrictions imposed by an employer's retirement program,
rollover and direct transfer contributions will be accepted. See the SAI,
"Part 1--Federal Tax Considerations of the Retirement Programs" for details.
Allocation of Contributions. The Participant, by written instructions to us,
will designate how each contribution will be allocated among the Investment
Options. The Participant may use our telephone service (Account Investment
Management (AIM) System) to change the future allocation for contributions.
Requests for changes in allocations among the Investment Options will become
effective on the date of the receipt. Checks accompanied by an allocation
change request will be invested in accordance with that request. Changes in
the allocation of future contributions have no effect on amounts already
invested.
Discontinuance and Resumption of Contributions. A Participant is under no
obligation to continue making contributions. If contributions made by or on
behalf of a Participant are discontinued, participation under the certificate
will remain in effect, and, except for SEP certificates, contributions can be
resumed at any time. However, we reserve the right to close a Participant's
Account if no contributions are made within 120 days of the issue date of the
certificate.
We also reserve the right to close a Participant's Account and pay any
Account Balance if contributions are discontinued for at least three years
from the date of the last contribution, and either (1) the Account Balance
does not exceed $2,000 or (2) the annuity which the existing Account Balance
would purchase at the Participant's Retirement Date would be less than $20
per month based on the current annuity rates in effect under the certificate.
INVESTMENT OF CONTRIBUTIONS IN
THE INVESTMENT FUNDS
Business Day. Generally, a business day is any day Equitable Life is open and
the New York Stock Exchange is open for trading. We may close due to
emergency conditions. Generally, no transactions are processed if we are
closed, except if received on the AIM System. A business day ends at 4:00
p.m. Eastern time.
Purchase of Units in the Investment Funds. Contributions are invested on the
date of receipt, provided they are received by us on an Equitable Life
business day and are correctly payable and accompanied by a properly
completed contribution form. We may retain contributions accompanied by an
incomplete contribution form for five business days while we attempt to
obtain the
10
<PAGE>
information required to complete the form. Contributions will be invested
immediately after the contribution form is complete.
The portion of each contribution allocated to an Investment Fund will be used
to purchase Units in that Fund. The number of Units purchased by a
contribution to an Investment Fund is calculated by dividing the amount of
the contribution by the Investment Fund's Unit Value on the business day we
receive the contribution. See "How We Determine the Unit Value" below. The
number of Units purchased will not vary, however, because of any subsequent
fluctuation in the Unit Value.
The value of the Unit fluctuates with the investment performance of the
corresponding Portfolio of the Trust, which reflects the investment income
and realized and unrealized capital gains and losses of the Fund and Trust
expenses and charges. Unit Values also reflect the deductions and charges
made to the Investment Funds of the Separate Account. See "Deductions and
Charges."
On any given day, the value you have in any Investment Fund of our Separate
Account is the Unit Value times the number of Units credited to you in that
Investment Fund.
How We Determine the Unit Value. Unit Values for the Investment Funds of our
Separate Account are determined at the end of each business day.
The Unit Value of any Investment Fund for any business day is equal to the
Unit Value for the preceding business day multiplied by the Net Investment
Factor for that Investment Fund on that business day.
A Net Investment Factor for each Investment Fund is determined every business
day as follows:
o First, we take the value of the shares belonging to the Investment Fund
in the corresponding Portfolio of the Trust at the close of business that day
(before giving effect to any amounts allocated to or withdrawn from the
Investment Fund for that day). For this purpose, we use the share value
reported to us by the Portfolio.
o Then, we divide this amount by the value of the amounts in the Investment
Fund at the close of business on the preceding business day (after giving
effect to any amounts allocated or withdrawn for that day).
o Finally, we subtract any daily charge for fees or expenses payable by the
Investment Fund, other than the participant service charge (see "Deductions
and Charges").
Illustration of Changes in Unit Values. Generally, if on a particular
Business Day investment income and realized and unrealized capital gains
exceed realized and unrealized capital losses and any expense charges, the
Unit Value would be greater than the value for the previous period.
For example, assume that at the close of trading on a Monday, the value of an
Investment Fund's assets is $2,500,000, and the Unit Value is $10. If on the
next business day, Tuesday, the investment income and realized and unrealized
capital gains exceed realized and unrealized losses by $7,500, and the daily
accrual for expenses charged to the Trust is $50, the Unit Value for that day
would be calculated as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
1. Unit Value for Monday ........... $10
2. Value of assets at close of
business on Monday .............. $2,500,000
3. Excess of investment income and
realized and unrealized capital
gains over realized and
unrealized losses ............... $7,500
4. Daily accrual for expenses
(administration charges and
certain expenses borne directly
by the Investment Funds) charged
to the Investment Fund .......... $50
5. Value of assets, less charge for
expenses, at close of business
day on Tuesday, (2) + (3) - (4) $2,507,450
6. Net Investment Factor (5)
divided by (2) .................. 1.00298
7. Unit Value for Tuesday (1) X (6) $10.0298
</TABLE>
If, on the other hand, the realized and unrealized losses exceeded investment
income and realized and unrealized capital gains on that day by $7,500, the
Unit Value for Tuesday would have been $9.9698.
GUARANTEED RATE ACCOUNTS
Contributions to a Guaranteed Rate Account are credited with interest at a
fixed rate for one-year and three-year periods. The amount of the
contribution is guaranteed
11
<PAGE>
by us (before deduction of any applicable participant service charge). The
effective guaranteed annual rate will always be at least 3%. New one and
three-year Guarantees will be offered each quarter, with the new Guaranteed
Rates generally being announced at least 10 days before the beginning of the
quarter. Contributions are permitted at any time. Withdrawals or transfers
prior to maturity are restricted and are also subject to a premature
withdrawal charge, except under certain limited circumstances.
For more information on the Guaranteed Rate Accounts, see "Part 2: The
Guaranteed Rate Accounts" in the SAI.
WITHDRAWALS
All or part of the Participant's Account Balance in the Investment Funds of
the Separate Account plus the Participant's Guaranteed Rate Account Cash
Values may be withdrawn by submitting the proper form to us. A TSA retirement
program may require spousal consent prior to withdrawal or may otherwise
restrict such withdrawals.
Withdrawals, regardless of whether from a TSA, IRA or SEP, will generally
have Federal tax consequences, which may include penalties if withdrawals are
made prior to retirement. A Participant should consult with a tax advisor, as
well as review the provisions of the retirement program before making a
withdrawal. See the SAI, "Part I--Federal Tax Considerations of the
Retirement Programs."
Generally, the request for a withdrawal is sent directly to us by the
Participant. In the case of certain TSAs, the Participant notifies the
employer, who will submit the Participant's request to us.
The request for a partial withdrawal should specify the dollar amount of the
withdrawal and the Investment Option from which the withdrawal should be
made. If not specified, the withdrawal will be made from each Investment
Option on a pro rata basis.
Withdrawals pursuant to a periodic distribution option from the Investment
Funds will be subject to certain restrictions described below under
"Retirement Benefits." Withdrawals are subject to Federal income tax
withholding. For more information, see "Part I--Federal Tax Considerations of
the Retirement Programs" in the SAI.
The request for a withdrawal should be made on the form supplied by us for
that purpose and sent to us. If a full withdrawal is requested, the
Participant's certificate should accompany the withdrawal request.
Withdrawals are made by reducing the number of Units the Participant has in
each Investment Fund from which withdrawals are to be made. For each
Investment Fund, the number of Units deducted is determined by dividing the
dollar amount of the withdrawal by that Fund's Unit Value on the business day
we receive a correctly completed withdrawal request. Withdrawals which result
in a total remaining Account Balance of less than $100 may be considered a
request to surrender unless we are told by the Participant to keep the
account active.
Except as stated under "Miscellaneous--Deferment Provisions," we will pay
all single sum payments from the Investment Funds within seven days after the
date as of which the amount of the payment is determined.
For TSAs, restrictions on distributions (whether by withdrawal, surrender or
annuitization) apply to the value of the Participant's salary reduction
(elective deferral contributions). These restrictions do not apply to such
amounts as of December 31, 1988 (or to the extent such amounts were carried
over from a prior TSA). To take advantage of this grandfathering for
transferred amounts, the participant or employer must notify us in writing of
the December 31, 1988 account balance. Distributions of restricted salary
reduction amounts may be made only if the Participant attains age 59 1/2,
dies, is disabled, separates from service or incurs a financial hardship.
Hardship distributions are limited to the amount actually contributed under a
salary reduction agreement, without earnings.
TRANSFERS AMONG THE INVESTMENT OPTIONS
Participants may transfer all or a portion of their Account Balances in one
Investment Fund to any other Investment Fund at any time without charge or
tax liability. Participants may make transfers using the AIM System.
Procedures have been established by Equitable Life that are considered to be
reasonable and are designed to confirm that instructions communicated by
telephone are genuine. Such procedures include requiring certain personal
identification information prior to acting on telephone instructions and
providing written confirmation of instructions
12
<PAGE>
communicated by telephone. If Equitable Life does not employ reasonable
procedures to confirm that instructions communicated by telephone are
genuine, it may be liable for any losses arising out of any action on its
part or any failure or omission to act as a result of its own negligence,
lack of good faith, or willful misconduct. In light of the procedures
established, Equitable Life will not be liable for following telephone
instructions that it reasonably believes to be genuine. We may discontinue
the telephone transfer service at any time without notice.
If amounts are transferred from one Investment Fund to another Investment
Fund, Units in one Investment Fund are "sold" and new Units are "purchased"
in the second Investment Fund. We will make the transfer as of the business
day on which the transfer request is received.
Transfers from the Guaranteed Rate Accounts are subject to special rules set
forth in the SAI. Participants may not transfer amounts from the Guaranteed
Rate Accounts during the Open Period. Thereafter, transfers made before the
maturity of a GRA will be subject to a penalty. Transfers will not change the
allocation of any future contributions to the Investment Options.
DEATH AND DISABILITY BENEFITS
For either a death or disability payment, the Account Balance is determined
as of the business day we receive written notification and proof of death or
disability.
If we receive notification of a Participant's death prior to the
Participant's Retirement Date, we will pay the Participant's Account Balance
to the designated beneficiary, subject to any restrictions under a TSA
retirement program. If the designated beneficiary is the Participant's
surviving spouse, the distribution of the Account Balance need not commence
until the earlier of (1) the date the Participant would have attained age
70 1/2 or (2) the date the surviving spouse elects payment to commence.
Depending on the Participant's election, the death benefit will be paid as a
single sum, as periodic payments, as an annuity or as a combination of the
three. If no death benefit election is in effect, the beneficiary may elect a
single sum or an alternate form of benefit payment within the time limit
prescribed in the Code. Different elections may have different tax
consequences. Distributions received by a beneficiary are generally given the
same tax treatment the Participant would have received if distribution had
been made to the Participant. See the SAI, "Part 1--Federal Tax
Considerations of the Retirement Programs" for more information.
In the case of disability prior to a Participant's Retirement Date, the
Account Balance will be paid to the Participant, subject to any restrictions
under a TSA retirement program.
RETIREMENT BENEFITS
Retirement. Upon enrollment, Participants are asked to specify a Retirement
Date when retirement benefits are expected to begin. If the Participant fails
to specify a Retirement Date, we will assume it is age 65. The Retirement
Date can be changed at any time but must be on the first day of a calendar
month. It may be changed by written notice to us and will become effective on
the date it is received.
Distributions generally must commence no later than April 1st of the calendar
year following the year in which the Participant attains age 70 1/2. Once
required distributions begin, subsequent required distributions must be made
by December 31st of each calendar year. Special rules may apply to (1)
Participants in church or governmental plans, (2) Participants who reached
age 70 1/2 before or during 1988 and (3) TSA contributions made prior to
1987. These rules are discussed more fully in the SAI.
Forms of Retirement Benefits. Subject to the provisions of the retirement
program under which the Participant is covered, at the Participant's
Retirement Date the Participant's Account Balance in the Investment Funds and
the Guaranteed Rate Account Cash Values are applied to provide a retirement
benefit as a single sum, a periodic distribution option, a fixed annuity or a
combination of these options. The Participant's Guaranteed Rate Accounts will
not be subject to the premature withdrawal charge if either of the following
options is elected: (1) a fixed annuity or (2) a periodic distribution option
whereby
13
<PAGE>
payments are made over a period of greater than three years.
Unless a TSA retirement program specifies differently, if the Participant has
not elected a retirement benefit before the Retirement Date selected, the
Normal Form of Annuity Benefit will be purchased. In the case of certain
TSAs, the Participant may be required to elect a joint and survivor annuity
payout unless the Participant's spouse consents in writing to a contrary
election. Participants should ask their employers whether this requirement is
applicable.
If the Participant has not already selected a form of annuity six months
before the Retirement Date, we will send an appropriate notification form on
which the Participant may indicate the type of annuity desired or confirm to
us that the Normal Form of Annuity Benefit is to be purchased. If we do not
receive a completed notification form on or before the Retirement Date, the
Participant's Account Balances and Guaranteed Rate Account Cash Values will
remain invested until we have received written instructions.
Normal Form of Annuity Benefit. The Normal Form of Annuity Benefit payable is
the Full Cash Refund Annuity. This is a fixed annuity for the lifetime of the
Annuitant. The Participant's beneficiary will receive a cash refund if, at
the Participant's death, the total annuity payments do not equal the amount
that was applied to provide the annuity. The refund equals the difference
between the amount applied to purchase the annuity and the annuity payments
actually received.
Once fixed annuity payments commence, the amount of each payment does not
change. The minimum amount of the fixed payments is determined from tables in
the certificate which show monthly payments for each $1,000 applied (after
deduction of any applicable taxes and the fixed annuity administrative fee
described below) and depends on the form of annuity selected and the age of
the Annuitant. If our group annuity rates for payment of proceeds or our rate
for single premium immediate annuities then in effect at the Participant's
Retirement Date should produce a larger payment, these rates will apply in
lieu of the minimum rates shown in the tables. We may change the amount of
the monthly payments shown in the certificates for new Participants.
Periodic Distribution Option. This option is designed to pay out the
Participant's entire Account Balance in monthly, quarterly, semi-annual or
annual installment payments over a minimum three-year period (as you or your
beneficiary may specify). This period may not generally exceed applicable
life expectancy limitations as described in the SAI under "Part 1--Federal
Tax Considerations of the Retirement Programs."
The amount of each payment can be calculated in one of two ways: either the
Participant can specify a dollar amount or a time period. If a time period,
the payment is determined by dividing the remaining Account Balances by the
number of remaining payments. Withdrawals are made pro-rata from each
Investment Option. Such periodic payments may currently be made from the
Guaranteed Rate Accounts without premature withdrawal charge; however, we
retain the right to suspend such distributions from the Guaranteed Rate
Accounts in the future.
An initial monthly payment of at least $50 is required under the Periodic
Distribution Option. After installment payments have begun, Participants may
continue to transfer amounts among the Investment Options as they prefer. By
written notice to us, the Participant may make a partial withdrawal or elect
to stop the installment payments and receive the Account Balance in a single
sum.
Election of Other Annuities or Optional Retirement Benefits. The
Participant's Account Balance may be used to provide forms of fixed annuities
(other than the Normal Form of Annuity Benefit) that are offered by us,
including joint and survivor annuities. Payments made under life or joint
life annuities which do not specify a minimum distribution period terminate
with the death of the last surviving annuitant.
A participant may, therefore, specify a minimum distribution period whereby
benefits would continue to a beneficiary. A participant may not specify a
minimum distribution period that is greater than the participant's
14
<PAGE>
life expectancy or the life expectancy of the beneficiary. If the beneficiary
is someone other than the Participant's spouse, payments to the surviving
beneficiary must be limited as prescribed in Proposed Treasury Regulations.
See "Part 1--Federal Tax Considerations of the Retirement Programs" in the
SAI.
Once a life annuity takes effect, the Annuitant may not redeem or change it
to any other form of benefit. If payment under an annuity continues to a
beneficiary, the beneficiary will have the right to redeem the annuity for
its commuted value. An annuity is available only if the amount to be applied
is $2,000 or more and would result in an initial payment of at least $20.
REVOCATION RIGHTS
The Participant can revoke participation under a certificate and the
certificate may be cancelled by returning it to us within 10 days (or longer
if your state requires) after receipt by the Participant. We will refund all
contributions made or, if greater, with respect to contributions allocated to
the Investment Options, we will refund the Participant's Account Balance,
computed on the business day we receive the certificate.
The Participant should consult a tax advisor before deciding to revoke, as
cancellation may have adverse tax consequences. For more complete
information, see "Part 1--Federal Tax Considerations of the Retirement
Programs" in the SAI.
MISCELLANEOUS
Assignment. Unless contrary to applicable law, the certificate, or any rights
to any payment thereunder, may not be assigned, sold, discontinued or pledged
as collateral to any person other than to us.
Beneficiaries. The Participant may name the beneficiary at the time of
enrollment. The beneficiary can be changed any time during the Participant's
lifetime. See "Part 1--Federal Tax Considerations of the Retirement Programs"
in the SAI for spousal consent limitations for certain TSAs.
Deferment Provisions. Assuming we have been properly notified of a death,
disability or other withdrawal, we will normally make payment of the Account
Balance within seven days. However, we may defer payments from the Investment
Funds for any period during which (1) the New York Stock Exchange is closed
or trading on it is restricted, (2) sale of securities or determination of
the fair value of the Investment Fund assets is not reasonably practicable
because of an emergency or (3) the SEC by order permits postponement for the
protection of persons having interests in the Investment Funds.
Disqualification. In the event that a retirement program funded under the
certificates offered by this prospectus fails to qualify under the Code for
the tax-favored status for which it was purchased, we have the right to
terminate the certificate and pay to the Participant, plan trustee or any
other designated payee the sum of the Investment Fund Account Balances and
the Guaranteed Rate Account Cash Value less any deduction for Federal income
tax payable by us as a result of that non-qualification.
Contract Holder. IRA, TSA and SEP certificates are issued under group annuity
contracts between us and Chase, as Trustee or Custodian. The sole
responsibility of Chase is to serve as party to the contracts. It has no
responsibility for the administration of these programs, for payments to the
Investment Options or to Participants, or for any distributions or duties
under these contracts. Under certain circumstances, we may make changes in
the certificates and contracts as described under "Changes in Applicable
Law."
COMPARATIVE
INVESTMENT PERFORMANCE
The tables below show comparisons between the performance of the Money
Market, Common Stock, Intermediate Government Securities (previously, the
Bond Fund), Balanced, High Yield, Aggressive Stock, Global, Growth & Income,
Growth Investors and Conservative Investors Funds and the performances of the
Standard & Poor's 500 Stock Index (S&P 500) and the Lehman
Government/Corporate Bond Index (Lehman).
The S&P 500 and Lehman indices represent unmanaged groups of securities
widely regarded by investors as representative
15
<PAGE>
of the stock and bond markets in general. The comparisons should be
considered in light of the investment policies and objectives of each of the
Investment Funds (which are substantially similar to the investment policies
and objectives of the corresponding portfolios of the Trust). Since the
Investment Funds do not distribute dividends or interest, the market indices
have been adjusted to reflect reinvestment of dividends and interest to
provide comparability. Because of the continually changing portfolio mix of
the Balanced Fund, the comparisons with specific market indices are of
limited use.
The performance information shown in the tables does not represent the actual
experience of amounts invested by a particular Participant. The amount and
timing of the Participant's investment also affect individual performance as
does the participant service charge. The performance of the Investment Funds
shown in the tables reflects the deduction of asset-based charges but does
not show the effect of the participant service charge. As unmanaged groups of
securities, the market indices do not reflect deductions of any asset-based
charges for investment management, administration or other expenses.
- -------------------------------------------------------------------------------
ANNUAL PERCENT CHANGES IN UNIT VALUE
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT
MONEY SECURITIES HIGH
DECEMBER 31 MARKET (A) YIELD
- ----------------- ------ ------------ -------
<S> <C> <C> <C>
1985 ............. 7.7% 18.0% --
1986 ............. 5.9 18.5 --
1987 ............. 5.8 2.5 4.0(b)%
1988 ............. 6.7 5.4 11.4
1989 ............. 8.7 15.1 0.6
1990 ............. 7.7 5.9 -4.8
1991 ............. 5.6 13.7 24.6
1992 ............. 3.0 4.9 11.3
1993 ............. 2.5 10.0 22.3
1994 ............. 3.8 -4.3 -3.5
1995 ............. 5.3 13.0 19.2
Five years ending
December 31,
1995 ............ 4.0 7.2 14.3
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
COMMON AGGRESSIVE GROWTH & GROWTH CONSERVATIVE
DECEMBER 31 BALANCED STOCK STOCK GLOBAL INCOME INVESTORS INVESTORS S&P 500 LEHMAN
- ----------------- -------- ------ ---------- --------- -------- --------- ------------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1985 ............. 25.5% 29.4% -- -- -- -- -- 31.7% 21.3%
1986 ............. 12.7 15.9 -- -- -- -- -- 18.7 15.6
1987 ............. -2.8 6.7 -15.2(c)% -14.3(b)% -- -- -- 5.3 2.3
1988 ............. 13.2 10.6 1.3 11.7 -- -- -- 16.6 7.6
1989 ............. 25.4 23.9 43.3 24.9 -- -- -- 31.7 14.2
1990 ............. -0.4 -12.4 7.0 -6.2 -- -- -- -3.1 8.3
1991 ............. 40.7 43.7 75.6 26.4 -- -- -- 30.5 16.1
1992 ............. -3.3 2.7 -3.8 -1.3 -- -- -- 7.6 7.6
1993 ............. 11.9 24.4 16.0 31.3 -- -- -- 10.0 11.0
1994 ............. -8.1 -2.6 -4.1 4.9 -1.2(d)% -3.1(d)% -1.1(d)% 1.3 -3.5
1995 ............. 19.2 31.9 30.9 18.2 23.1 24.9 18.8 37.5 19.2
Five years ending
December 31,
1995 ............ 10.7 18.7 19.6 15.2 -- -- -- 16.6 9.8
</TABLE>
- -------------------------------------------------------------------------------
ANNUALIZED RATES OF RETURN--DECEMBER 31, 1995
DATE OF INCEPTION INCEPTION 10 YEARS
----------------- ----------- ----------
Money Market ........... February 5, 1982 6.7% 5.5%
Intermediate Government
Securities (a) ........ February 5, 1982 10.6 8.3
High Yield ............. June 2, 1987 9.4 --
Balanced ............... February 5, 1982 13.2 9.9
Common Stock ........... February 5, 1982 16.6 13.4
Aggressive Stock ....... June 1, 1987 14.8 --
Global ................. June 2, 1987 10.1 --
Growth & Income ........ May 1, 1994 12.7 --
Growth Investors ....... May 1, 1994 12.8 --
Conservative Investors May 1, 1994 10.4 --
S&P 500 ................ N/A N/A 14.9
Lehman ................. N/A N/A 9.6
(RESTUBBED TABLE CONTINUED FROM ABOVE)
5 YEARS 3 YEARS 2 YEARS 1 YEAR
--------- --------- --------- --------
Money Market ........... 4.0% 3.8% 4.5% 5.3%
Intermediate Government
Securities (a) ........ 7.2 5.9 3.9 13.0
High Yield ............. 14.3 12.1 7.2 19.2
Balanced ............... 10.7 6.9 4.6 19.2
Common Stock ........... 18.7 16.9 13.3 31.9
Aggressive Stock ....... 19.6 13.2 12.0 30.9
Global ................. 15.2 17.6 11.4 18.2
Growth & Income ........ -- -- -- 23.1
Growth Investors ....... -- -- -- 24.9
Conservative Investors -- -- -- 18.8
S&P 500 ................ 16.6 15.3 18.0 37.5
Lehman ................. 9.8 8.5 7.3 19.2
(a) Prior to September 6, 1991, the Bond Fund.
(b) From June 2, 1987, the date contributions were first allocated to these
Funds.
(c) From June 1, 1987, the date contributions were first allocated to the
Fund.
(d) From May 1, 1994, the date contributions were first allocated to the
Fund.
Rates of return are time weighted and include reinvestment of investment
income. The annualized rate assumes an investment of the same amount invested
at the beginning of each year with the percentage demonstrating the effective
annual rate over the period shown.
PAST PERFORMANCE IS NOT A GUARANTEE OR INDICATION OF FUTURE PERFORMANCE. NO
PROVISIONS HAVE BEEN MADE FOR THE EFFECT OF TAXES ON INCOME AND GAINS, OR ANY
TAX PENALTIES, UPON DISTRIBUTION.
16
<PAGE>
FEDERAL INCOME TAX ASPECTS
OF THE RETIREMENT
PROGRAMS
TAX-SHELTERED ANNUITY ARRANGEMENTS
(TSAS)
An employee of a public educational institution or a tax-exempt organization
described in Code Section 501(c)(3) may exclude from Federal gross income for
a tax year contributions made to a TSA by the employer in that year subject
to the limitations provided in the Code and in related regulations. When the
employee makes withdrawals or surrenders the certificate, generally the full
amount will be included in income. Premature withdrawals may be subject to a
10% Federal tax penalty. In addition, TSA amounts relating to salary
reduction agreements cannot be distributed prior to age 59 1/2, death,
disability, separation from service or hardship. In the event of hardship,
only the salary reduction contributions can be distributed.
INDIVIDUAL RETIREMENT ANNUITIES (IRAS)
A working individual may make deductible or non-deductible contributions to
an IRA until age 70 1/2. Generally, $2,000 is the maximum amount of
deductible and nondeductible contributions which may be made to all IRAs by
an individual in any taxable year. The above limit may be less where the
individual's earnings are below the applicable amount. These limits do not
apply to rollover or custodian-to-custodian contributions into an IRA.
Subject to the rules of the Code an individual and a nonworking spouse can
together contribute annually an aggregate of $2,250 to IRAs for the
individual and the spouse (but no more than $2,000 to any one IRA
certificate). There is no tax on amounts credited to an IRA until the amounts
are withdrawn from the certificate. Except where nondeductible contributions
have been made, distributions from IRAs are fully includible in gross income.
The taxable portion of certain early withdrawals may be subject to a 10%
Federal tax penalty.
IRAS UNDER SIMPLIFIED EMPLOYEE
PENSION PLANS (SEPS)
An employer can establish a SEP for its employees and can make contributions
to a SEP for each eligible employee. An IRA funding a SEP is, like other
IRAs, owned by the Participant. Most of the rules applicable to IRAs also
apply. A major difference is the amount of permissible contributions. An
employer can annually contribute an amount for an employee up to the lesser
of $22,500 or 15% of the employee's compensation, (determined without taking
into account the employer's contribution to the SEP). This $22,500 maximum,
based on the statutory compensation limit of $150,000, may be adjusted for
cost of living changes in future years. Employers with 25 or fewer employees
who were eligible to participate in the prior year may allow such employees
to make salary reduction contributions to a Salary Reduction SEP (SARSEP).
SARSEP programs are subject to a number of special rules, some of which are
discussed in the SAI.
Further discussion of tax aspects of TSA, IRA and SEP contributions,
distributions and other matters is available in the SAI.
DEDUCTIONS AND CHARGES
The deductions and charges discussed below apply during the accumulation
period and if either the periodic distribution option or the fixed annuity
option is elected.
Participant Service Charge. On the last day of each calendar quarter, a
charge will be made against the Account Balance of each Participant as a
reimbursement for administrative expenses unrelated to sales, such as
salaries, rent, postage, telephone, travel, legal, actuarial and accounting
costs, office equipment and stationery. This charge is $15 per year for SEP
certificates. The charge for IRA and TSA certificates or contracts will not
exceed $30 annually and will be deducted from the amounts held in the
Investment Options in accordance with Equitable Life's administrative
procedures then in effect.
The participant service charge applicable to a certificate depends on several
factors. It will vary depending on (1) the method by which payment is made to
us (payroll deduction or direct contribution), (2) the number of Participants
contributing through the same payroll deduction facility or group, (3) the
total contributions received from an affiliated group, (4) the nature of the
group purchasing the certificates, (5) the extent to which an employer
provides services that would otherwise be provided by us, and (6) other
circumstances which may have an impact on administrative expenses. We
17
<PAGE>
reserve the right to change this charge upon advance written notice, or to
impose the charge on a less or more frequent basis, but in no case will it
exceed $30 per year.
Administration Charge. Administrative expenses are charged directly to each
Investment Fund at the effective annual rate of 0.25% of the value of each
Investment Fund's assets attributable to the certificates. The charge is
designed as a reimbursement for administrative expenses not covered by the
participant service charge. This charge is reflected in the computation of
Unit Values.
Other Expenses. Certain additional costs and expenses are also charged
directly to the Investment Funds. These include, among other things, certain
expenses incurred in the operation of the Separate Account and the Investment
Funds, taxes, interest, SEC charges and certain related expenses including
printing of registration statements and amendments, outside auditing and
legal expenses and recordkeeping. These expenses are reflected in the Unit
Value. See "Certificate Provisions--Investment of Contributions in the
Investment Funds."
Deductions and Expenses of the Trust. Deductions and expenses paid out of the
assets of the Portfolios of the Trust are described in the prospectus for the
Trust attached hereto and also detailed in the Fee Table in this prospectus.
There are no deductions or charges for sales expenses made from contributions
received by us or upon any withdrawals.
Expense Limitations. If in any calendar year the aggregate expenses of the
Money Market, Common Stock, Intermediate Government Securities or Balanced
Funds (including investment advisory fees and certain other Trust expenses
attributable to assets of such Investment Fund invested in a Portfolio of the
Trust, and asset-based charges for administration and expenses borne directly
by the Investment Funds, but excluding interest, taxes, brokerage and
extraordinary expenses permitted by appropriate state regulatory authorities)
exceed 1% of the value of the Money Market Fund's average daily net assets,
or 1.5% of the value of the Common Stock, Intermediate Government Securities
and Balanced Fund's average daily net assets, Equitable Life will reimburse
that Fund for the excess. This expense limitation cannot be changed without
the Participant's consent. In addition, Equitable Life reimburses the High
Yield, Aggressive Stock and Global Funds for aggregate expenses in excess of
a voluntary expense limitation of 1.5% of the value of each Fund's average
daily net assets. The voluntary expense limitation may be discontinued by
Equitable Life at its discretion.
Also, if the annual amount of management fees applicable to the Money Market
and Intermediate Government Securities Funds exceeds 0.35% of the average
daily net asset value of either Fund, Equitable Life will reimburse that Fund
for such excess. This expense limitation is a contractual right for
Participants who enrolled prior to May 1, 1987 and cannot be changed without
the consent of those Participants. Equitable Life has voluntarily agreed to
impose this expense limitation for Participants who enrolled after May 1,
1987 and reserves the right to discontinue this at any time.
Fixed Annuity Administrative Charge. If a Participant elects the fixed
annuity option at retirement, an annuitization fee of up to $350 (depending
upon the date of enrollment in the program, as provided in your certificate)
will be deducted from the amount applied to purchase the annuity to reimburse
for administrative expenses associated with processing the application for
the annuity and with issuing each monthly payment. We may give any
Participant a better annuity purchase rate than those currently guaranteed
for the Program. The annuity administrative charge may be greater than $350
in that case, unless otherwise provided in your certificate.
SEP/SARSEP Enrollment Fee. A non-refundable fee of $25 will be charged upon
the enrollment of each Participant. It can either be paid by the employer or
deducted from the first contribution.
Guaranteed Rate Account Premature Withdrawal Charge. There is a charge for
most withdrawals made before the maturity date of the Guaranteed Rate
Account. This charge equals 7% of the amount withdrawn, or, if less, interest
earned. See the SAI, "Part 2--The Guaranteed Rate Accounts."
Charge for Premium or other Applicable Taxes. In certain jurisdictions, a
charge for premium or other applicable tax currently ranging up to a maximum
of 5% on the amounts applied to purchase an annuity is imposed. Such taxes
will depend, among other things, on the Participant's place of residence,
applicable laws and the retirement option elected by the Participant. We
reserve the right to deduct a charge for premium or other applicable taxes
based on the Participant's place of residence at the Participant's Retirement
Date. If an annuity option is elected, we reserve the right to deduct a
charge for any premium or other applicable taxes from the amount applied to
purchase the annuity or from contributions. If the periodic distribution
option is elected, a charge for any premium or other taxes
18
<PAGE>
will be deducted from each payment when made. No charge for premium or other
applicable taxes will be applicable if a single sum is elected.
VOTING RIGHTS
TRUST VOTING RIGHTS
As explained previously, contributions allocated to the Investment Funds are
invested in shares of the corresponding Portfolios of the Trust. Since we own
the assets of the Separate Account, we are the legal owner of the shares and,
as such, have the right to vote on certain matters. Among other things, we
may vote:
o to elect the Trust's Board of Trustees,
o to ratify the selection of independent auditors for the Trust, and
o on any other matters described in the Trust's current prospectus or
requiring a vote by shareholders under the 1940 Act or by other law.
Even though we own the shares, we give Participants the opportunity to
instruct us how to vote the number of shares attributable to the
Participant's certificate. We will vote those shares at meetings of Trust
shareholders according to such instructions. If we do not receive
instructions in time from all Participants, we will vote shares for which no
instructions have been received in a Portfolio in the same proportion as we
vote shares for which we have received instructions in that Portfolio. We
will also vote any Trust shares that we are entitled to vote directly due to
amounts we have accumulated in an Investment Fund in the same proportions
that Participants vote.
HOW WE DETERMINE A PARTICIPANT'S
VOTING SHARES
A Participant can participate in voting only on matters concerning a
Portfolio in which the Participant's assets have been invested. We determine
the number of Trust shares in each Investment Fund that are attributable to a
certificate by dividing the amount of the Account Balance allocated to that
Investment Fund by the net asset value of one share of the corresponding
Portfolio of the Trust as of the record date for the Trust's shareholder
meeting. (Fractional shares are counted). The record date for this purpose
must be no more than 60 days before the meeting of the Trust. During payment
under a periodic distribution option, as the amounts are paid out and the
Account Balance allocated to the Investment Funds declines, the number of
votes will decrease correspondingly.
We will send proxy material and a form for giving us voting instructions to
each Participant who has a voting interest. Votes may be cast in person or by
proxy.
HOW TRUST SHARES ARE VOTED
All Trust shares are entitled to one vote. Voting generally is on a
Portfolio-by-Portfolio basis except that shares will be voted on an aggregate
basis when required by the 1940 Act (including, without limitation, election
of Trustees and ratification of the selection of auditors). However, if the
Trustees determine that shareholders in a Portfolio are not affected by a
particular matter, then such shareholders generally would not be entitled to
vote on such matter.
VOTING PRIVILEGES OF PARTICIPANTS IN OTHER SEPARATE ACCOUNTS
Currently, we control the Trust. Trust shares are held by other separate
accounts of ours and by separate accounts of insurance companies affiliated
or unaffiliated with us. Shares held by these separate accounts will probably
be voted according to the instructions of the owners of insurance policies
and contracts issued by those insurance companies. This will dilute the
effect of the voting instructions of Participants.
SEPARATE ACCOUNT VOTING RIGHTS
Under the 1940 Act, certain actions (such as some of those described under
"Changes in Applicable Law") may require Participant approval. In that case,
a Participant will be entitled to one vote for every unit the Participant has
in the Investment Funds of our Separate Account. We will cast votes
attributable to any amounts we have in the Investment Funds of our Separate
Account in the same proportions as votes cast by Participants.
19
<PAGE>
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
Federal securities laws. To the extent that those laws or the regulations
promulgated under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
REPORTS
Before payments start under a certificate, reports will be sent to the
Participant at least annually showing as of a specified date (1) the number
of units credited to each Investment Fund under the certificate, (2) the Unit
Values, (3) the Account Balance of each Investment Fund and Guaranteed Rate
Account and the total and (4) the Cash Values of the Guaranteed Rate
Accounts. Similar reports will be sent to persons receiving payments under
the periodic distribution option. All transactions will be individually
confirmed.
As required by the 1940 Act, each Participant will be sent semi-annually a
report containing financial statements and a list of the portfolio securities
of each Portfolio of the Trust.
REGULATION
We are subject to regulation and supervision by the Insurance Department of
the State of New York which periodically examines our affairs. We are also
subject to the insurance laws and regulations of all jurisdictions in which
we are authorized to do business. The certificates and contracts have been
filed with and approved by the Insurance Department of the State of New York.
Its regulation and approval do not, however, involve any supervision of the
investment policies of the Investment Funds or the Trust or of the selection
of any investments except to determine compliance with the Insurance Laws of
New York.
We are required to submit annual statements of our operations, including
financial statements, to the insurance departments of the various
jurisdictions in which we do business for purposes of determining solvency
and compliance with local insurance laws and regulations.
ADDITIONAL INFORMATION
A Registration Statement under the Securities Act of 1933 has been filed with
the SEC relating to the offering described in this prospectus. This
prospectus does not include all the information included in the Registration
Statement, certain portions of which, including the SAI, have been omitted
pursuant to the rules and regulations of the SEC. The omitted information may
be obtained at the SEC's principal office in Washington, D.C., upon payment
of the SEC's prescribed fees. A free copy of the SAI may be obtained by
calling the toll-free number on the first page of this prospectus or by
submitting the coupon below.
- -----------------------------------------------------------------------------
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION
- -----------------------------------------------------------------------------
Part 1--Federal Tax Considerations of the Retirement Programs
Part 2--The Guaranteed Rate Accounts
Part 3--Reorganization
Part 4--Experts
Part 5--Money Market Fund Yield Information
Part 6--Financial Statements
- -----------------------------------------------------------------------------
PLEASE SEND ME A FREE COPY OF THE
STATEMENT OF ADDITIONAL INFORMATION.
Equitable Life 300+ Series
Box 2468 G.P.O.
New York, New York 10116
ATTN: SAI Request for Separate Account
No. 301
---------------------------------------------------------------------------
Name
---------------------------------------------------------------------------
Address
---------------------------------------------------------------------------
City State Zip
20
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1996
--------------------
CERTIFICATES AND
GROUP ANNUITY CONTRACTS
FUNDED THROUGH THE INVESTMENT FUNDS OF
SEPARATE ACCOUNT NO. 301
OF
THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
- -----------------------------------------------------------------------------
TABLE OF CONTENTS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
<S> <C>
Part 1 - Federal Tax Considerations of the Retirement
Programs ........................................... 2
Part 2 - The Guaranteed Rate Accounts ........................ 13
Part 3 - Reorganization ...................................... 18
Part 4 - Experts ............................................. 18
Part 5 - Money Market Fund Yield Information ................. 18
Part 6 - Financial Statements ................................ 19
</TABLE>
- -----------------------------------------------------------------------------
This Statement of Additional Information (SAI) is not a prospectus. It should
be read in conjunction with the Separate Account No. 301 prospectus, dated
May 1, 1996.
A copy of the prospectus to which this SAI relates is available at no charge
by writing to Equitable Life 300 + Series at P. O. Box 2468, G.P.O. New York,
New York 10116 or by calling 1-800-248-2138.
Copyright 1996 The Equitable Life Assurance Society of the United States.
All rights reserved.
<PAGE>
PART 1--FEDERAL TAX
CONSIDERATIONS OF THE
RETIREMENT PROGRAMS
The Internal Revenue Code of 1986, as amended (the Code), describes how a
retirement program can qualify for tax-favored status. In general, assuming
that the requirements and limitations of the applicable provisions of the
Code are adhered to by Participants and employers, contributions made under a
retirement program are deductible and will not be taxable to Participants
until benefits are distributed.
This Section generally provides current Federal tax information with respect
to contributions, distributions and annuity payments under the various
tax-favored retirement programs utilizing the Investment Options described in
the prospectus. You should be aware that Federal tax laws are continually
under review by the Congress, and any changes in those laws, or issuance of
Treasury regulations interpreting those laws, may affect the tax treatment of
amounts invested in the certificate. Because of the complexity of the law and
the fact that the tax results will vary according to the actual circumstances
of the individual involved, we cannot provide detailed tax information in
this SAI. This SAI does not provide detailed tax information and does not
address state and local income taxes and other taxes, or federal gift and
estate taxes. Not every certificate has every feature discussed in this Part.
Therefore, in view of the adverse tax consequences, including penalties,
which may result from actions that may be taken, we recommend that you
consult your tax advisors.
TAX SHELTERED ANNUITY
ARRANGEMENTS (TSAS)
Under the provisions of Section 403(b) of the Code, an employee of a public
educational institution or a tax-exempt organization described in Section
501(c)(3) of the Code may exclude from Federal gross income contributions
made on the employee's behalf to a TSA.
Tax-deferred contributions to a TSA must be made by the employer. However,
the contributions may be derived either directly from the employer as
additional compensation to the employee or indirectly from the employee
through a reduction in the employee's salary. The employer forwards all the
contributions made on behalf of the Participant to us for investment in
accordance with the Participant's directions. If the contribution is derived
from a reduction in the employee's salary, the reduction must be made under a
legally binding salary reduction agreement between the employee and the
employer. Only one such agreement may be made with any one employer during
the Participant's tax year.
The maximum contribution that can be excluded from an employee's income in a
tax year is the lesser of (1) the employee's "exclusion allowance" for the
tax year and (2) the overall limit that the Code imposes under Section 415 on
contributions to tax-qualified retirement plans, including TSAs. In addition,
contributions made under salary reduction agreements to all TSAs owned by the
employee cannot exceed $9,500 per year. This $9,500 limit must be reduced,
dollar for dollar, by the amount contributed by the employee through salary
reduction to a 401(k) plan or a simplified employee pension plan. Special
rules may apply to increase this limit in the case of an educational
organization, hospital, home health service agency, health and welfare
service agency, church or certain church related organizations. If
contributions to a TSA exceed the applicable limit in any year, the excess
will be included in the Participant's gross income and taxed as ordinary
income. In certain situations discussed below, excess contributions may be
distributed to avoid tax penalties.
In general, the "exclusion allowance" for any Participant for a taxable year
is equal to the excess, if any, of (1) the amount determined by multiplying
20 percent of the Participant's includable compensation, as defined in the
Code, by the number of years of employment with the employer, over (2) the
amounts contributed by the employer to tax-favored retirement plans
(including TSAs, qualified plans and eligible deferred compensation plans of
state and local
2
<PAGE>
governments and tax-exempt organizations, also known as "457 Plans" or "EDC
Plans"), which were excludable from the employee's federal gross income for
any prior tax year or which, for tax years beginning after January 24, 1980,
were includable in income because they exceeded the Code limitation for
contributions to qualified plans and TSAs.
The overall contribution limit referred to above applicable to qualified
defined contribution plans under Section 415 of the Code is 25% of the
Participant's compensation in a calendar year (or in any other 12-month
period chosen by the Participant) up to a maximum contribution of $30,000.
Compensation or earned income in excess of $150,000 cannot be considered in
calculating contributions to the plan. This amount may be adjusted for cost
of living changes in future years.
Special limits on contributions apply to anyone who participates in more than
one qualified plan or who controls another trade or business. There is also
an overall limit on the total amount of contributions and benefits under all
tax-favored retirement programs in which a person participates.
Employees of certain tax-exempt organizations (educational institutions,
hospitals, home health care agencies, health and welfare service agencies and
churches) may make an irrevocable election to increase the exclusion
allowance by applying one of three special limitations as provided under the
Code. Employees of church organizations are eligible for further special
elections which will increase either the overall contribution limit or the
exclusion allowance applicable to the employee.
Certain TSAs are required to meet nondiscrimination tests similar to those
applied to qualified plans. In addition, a TSA program which provides for
employer matching contributions must meet special nondiscrimination rules.
The special nondiscrimination rules compare the aggregate contributions made
on behalf of eligible highly compensated employees (as defined in the Code)
with those made on behalf of eligible non-highly compensated employees. If
contributions exceeding the applicable limits are made in any plan year on
behalf of highly compensated employees, the plan may be disqualified unless
the excess amounts are distributed before the close of the next plan year. In
addition, the employer is subject to a 10% penalty on any excess aggregate
contributions. The employer may avoid the penalty if the plan distributes the
excess aggregate contributions, plus income, within 2 1/2 months after the
close of the plan year. Unless the distribution is under $100, the recipient
of any such distribution is taxed on the distribution and the related income
for the year of the excess aggregate contribution. Such a distribution is not
treated as a withdrawal of restricted funds and will not be subject to the
10% penalty tax on early retirement distributions, both as described below.
The Code sets forth certain withdrawal restrictions which apply to the salary
reduction portion of a TSA certificate (including earnings), contributed
after December 31, 1988 and earnings on the account balance as of December
31, 1988. Withdrawals (whether by withdrawal, surrender of the contract or
annuitization) of restricted amounts may be made only if the Participant
attains age 59 1/2, dies, is disabled, separates from service or suffers a
financial hardship. Hardship withdrawals are limited to the amount actually
contributed under the salary reduction contributions, without earnings.
Distributions of benefits accruing after 1986 (including earnings on pre-1987
contributions) must commence no later than April 1st of the calendar year
following the calendar year in which the Participant attains age 70 1/2. In
the case of a governmental or church plan, distributions of benefits accruing
after 1986 (including earnings on pre-1987 contributions) must commence no
later than April 1st of the calendar year following the later of the calendar
year in which the Participant attains age 70 1/2 or retires. Once required
distributions begin, subsequent distributions must be made by December 31st
of each calendar year. TSA benefits which accrued prior to 1987 must be
distributed commencing at age 75. Proposed Treasury regulations provide that
in order for these special minimum distribution rules to apply to a
participant, the issuer of the TSA must keep records of the pre-1987 account
balance and make changes to that amount as necessary. To the extent a
Participant takes a distribution in order to comply with the minimum
distribution rules, and
3
<PAGE>
the amount of the distribution is in excess of the amount the Code requires
the Participant to receive for that particular year, the issuer of the TSA
must decrease the pre-1987 account balance by the amount of that excess.
Additional distribution rules may apply, and you should consult your tax
advisor regarding the timing of distributions from your certificate.
The distributions may be in the form of a life annuity, a joint and survivor
annuity, or other periodic or lump sum form of payment which does not extend
beyond the life or life expectancy of the Participant or the lives or joint
life expectancies of the Participant and a beneficiary and which satisfies
certain minimum distribution and incidental benefit rules under the Code. If
a Participant dies before beginning required distributions, distributions
under the contract or certificate must be completed within five years after
death, unless payments begin within one year of death and are made over the
life (or life expectancy) of the beneficiary. If the Participant's spouse is
the beneficiary, distributions need not commence until the deceased
Participant would have attained age 70 1/2. In the alternative, the
surviving spouse may elect to roll over the death benefit into his or her own
individual retirement arrangement (IRA). If a Participant dies after required
payments have begun, post-death payments must be made at least as rapidly as
payments made before the death of the Participant.
Failure to make required distributions may cause the disqualification of the
TSA. Disqualification results in current taxation of the Participant's entire
benefit. In addition, a 50% penalty tax is imposed on the difference between
the required distribution amount and the amount actually distributed.
Earnings on contributions to TSAs are generally not subject to tax until
benefits are distributed to the Participant. Distributions received by a
beneficiary are generally given the same tax treatment the Participant would
have received if distribution had been made to the Participant.
If a certificate is surrendered for its value, the amount received that
exceeds the Participant's tax basis, if any, for the certificate is treated
as ordinary income to the Participant. The Participant may have a basis in
the certificate if the Participant has made contributions to the TSA with
after-tax dollars or if the employer made contributions which were required
to be included in the employee's gross income in the year of the employer's
contribution.
The amount of any partial distribution from a TSA prior to the annuity
starting date is generally treated as ordinary income by the Participant
except to the extent that the distribution is treated as a withdrawal of
after-tax contributions. Distributions are normally treated as pro rata
withdrawals of after-tax contributions and earnings on those contributions.
If the employer's program allowed withdrawals prior to separation from
service as of May 5, 1986, however, all after-tax contributions made prior
to January 1, 1987 may be withdrawn tax-free prior to withdrawing any taxable
amounts.
Where a Participant elects to receive benefits in the form of an annuity, the
amount of each annuity payment received by a Participant after retirement is
treated as ordinary income except to the extent that the Participant has a
cost basis in the annuity.
If the Participant has a cost basis in the annuity, part of each payment
received will be considered to be a return of the Participant's cost basis in
the annuity and will be excludable from gross income. The remainder of each
payment will be includable in gross income as ordinary income. The excludable
portion is based on the ratio of the Participant's cost basis in the annuity
on the annuity starting date to the expected return under the annuity as of
such date. Under an annuity with a life contingency, the expected return is
based on the annuitant's life expectancy, that is, the number of annuity
payments anticipated to be made during the annuitant's lifetime. In the case
of a joint and survivor annuity, the expected return is based on the joint
life expectancy, that is, the number of payments anticipated to be made
during both of their lifetimes. An adjustment will be required in computing
the expected return of the annuity with a life contingency if payments are to
be made for any period certain.
For annuity payments commencing after
December 31, 1986, if the Participant (and
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<PAGE>
beneficiary under a joint and survivor annuity) live beyond their life
expectancies the full amount of the payments received thereafter will then be
included in income. If the Participant (and beneficiary under a joint and
survivor annuity) die prior to recovering the full cost basis, a deduction is
allowed on the Participant's (or beneficiary's) final tax return. If there is
a refund feature under the annuity, the beneficiary of the refund may recover
the remaining cost basis as payments are made.
Distributions from a TSA will be subject to a 10% penalty tax unless the
distribution is made on or after the Participant's death, disability or
attainment of age 59 1/2. The penalty tax will also not apply if the
Participant (i) separates from service and elects a payout over his or her
life or life expectancy (or joint and survivor lives or life expectancies),
(ii) reaches age 55 and separates from service, or (iii) uses the
distribution to pay certain extraordinary medical expenses.
Tax Free Rollovers and Transfers
Any distribution from a TSA which is an "eligible rollover distribution" may
be rolled over into another eligible retirement plan, either as a direct
rollover or a rollover within 60 days of receiving the distribution. To the
extent a distribution is rolled over, it remains tax deferred.
A distribution from a TSA may be rolled over to another TSA which will accept
rollover contributions or an IRA. Death benefits received by a spousal
beneficiary may only be rolled over to an IRA.
The taxable portion of most distributions will be eligible for rollover,
except as specifically excluded under the Code. Distributions which cannot be
rolled over generally include periodic payments for life or for a period of
10 years or more, and minimum distributions required under Section 401(a)(9)
of the Code (discussed above). Eligible rollover distributions are discussed
in greater detail under "Federal and State Income Tax Withholding", below,
including rules requiring 20% income tax withholding applicable to certain
distributions from TSAs.
Amounts held under TSAs may be directly transferred to another TSA issuer in
a tax-free transaction, provided that the successor TSA contains the same or
greater restrictions as the original TSA.
The value of a TSA is generally includible in the Participant's taxable
estate. Any portion of a TSA payable to the Participant's spouse is eligible
for the estate tax marital deduction and, as such, could pass free of Federal
estate tax.
INDIVIDUAL RETIREMENT ANNUITIES
This SAI contains portions of the information which the Internal Revenue
Service (IRS) requires to be disclosed to an individual who purchases an IRA.
Required information also appears in various sections of the prospectus.
The Code permits employees and self-employed individuals to make deductible
and nondeductible contributions to an IRA. Contributions may also be made on
behalf of a nonworking spouse. The Code also permits tax-free rollovers
(direct or indirect) of certain distributions from tax-qualified or
governmental plans to an IRA. The Code permits tax-free rollovers between
IRAs once each year. In certain cases, direct custodian-to-custodian
transfers may be made between IRAs. See "Rollovers" under this section for
further information. An individual's interest in the IRA must be
nonforfeitable and nontransferable. An individual retirement annuity is
subject to the requirements of applicable insurance laws for annuity
contracts.
Special rules govern required distributions of a Participant's IRA. These
rules also cover required distributions if the Participant or designated
beneficiary dies before the entire interest has been distributed. See
"Distributions" under this section.
We have received approval of our IRA certificate from the IRS. The approval
is a determination only that the form of the IRA on the date submitted
satisifies the requirements of the Code and is not a determination of the
merits of the certificate as an investment.
Revocation
A Participant can revoke a certificate issued as an IRA in accordance with
the terms and directions stated in the prospectus under "Certificate
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<PAGE>
Provisions -- Revocation Rights." Before deciding to revoke, the Participant
should consult with a tax advisor as to any adverse tax consequences which
may result from revocation. If the IRA certificate is revoked, an individual
may set up and contribute to a new IRA if at the time the individual meets
the requirements for contributing to an IRA, as discussed below under
"Contributions."
Contributions
The following discussion pertains to regular IRA contributions. The limits
discussed in this section do not apply to rollover or direct
custodian-to-custodian contributions into an IRA. See "Rollovers and
Transfers," below.
Generally, $2,000 is the maximum amount of deductible and nondeductible
contributions which an individual may make to all of his or her IRAs in any
taxable year. The above limit may be less where the individual's earnings are
below the applicable amount.
An individual and a nonworking spouse can together contribute annually an
aggregate of $2,250 to IRAs for the individual and the spouse. An IRA
certificate is set up for each spouse and the working spouse may contribute a
total of $2,250 to the certificates (but no more than $2,000 to either
certificate). A working spouse may elect to be treated as having no
compensation in order to be eligible for a spousal IRA. The nonworking spouse
owns his or her own IRA contract, even if the working spouse provides all of
the contributions.
If neither the Participant nor the Participant's spouse are covered during
any part of the taxable year by a tax-favored retirement plan (including a
pension or profit-sharing plan, TSA or simplified employee pension), then
each working spouse may make a deductible contribution up to the lesser of
100% of compensation or $2,000, regardless of his or her adjusted gross
income (AGI). In certain cases, individuals covered by a tax-favored
retirement plan include persons eligible to participate in the plan although
not actually participating. Whether or not a person is covered by a
tax-favored retirement plan will be reported on the employee's Form W-2.
If the Participant is single and covered by a retirement plan during any part
of the taxable year, the IRA deduction phases out with AGI between $25,000
and $35,000. If the Participant is married and files a joint return, and
either the Participant or the spouse is covered by a tax-favored retirement
plan during any part of the taxable year, the IRA deduction phases out with
AGI between $40,000 and $50,000. If the Participant is married, files a
separate return and is covered by a tax-favored retirement plan during any
part of the taxable year, the IRA deduction phases out with AGI between $0
and $10,000. Married individuals filing separate returns must take into
account the retirement plan coverage of the other spouse, unless the couple
has lived apart for the entire taxable year. If AGI is below the phase-out
range, a Participant is entitled to the maximum allowable deduction. In
computing the partial IRA deduction the Participant must round to the nearest
$10. The permissible deduction for IRA contributions is a minimum of $200 if
AGI is less than the amount at which the deduction entirely phases out.
For Participants covered by, or treated as covered by, a tax-favored
retirement plan, the deduction for IRA contributions may be computed using
one of two methods. Under the first method, the Participant determines his or
her AGI and subtracts $25,000 if the Participant is a single person, $40,000
if the Participant is married and filing jointly with the spouse, or $0 if
the Participant is married, filing separately and either the Participant or
the Participant's spouse is covered by a tax-favored retirement plan. (If the
couple has lived apart the entire taxable year and their filing status is
married filing separately, the retirement plan coverage of the Participant's
spouse can be ignored.) The resulting amount is the Participant's "Excess
AGI". The Participant then applies the following formula:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
$10,000 - Excess AGI
- ---------------------------- Maximum Allowable IRA Deduction
$10,000 times IRA Deduction = Limit
</TABLE>
Under the second method, the Participant determines his or her "Excess AGI"
and refers to the following chart originally prepared by the IRS to determine
his or her deduction.
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<PAGE>
IRS CHART
ESTIMATED DEDUCTION TABLE
If your maximum allowable deduction is $2,000, use this table to estimate
the amount of your contribution which will be deductible.
<TABLE>
<CAPTION>
EXCESS AGI DEDUCTION EXCESS AGI DEDUCTION
- ------------ ----------- ------------ -----------
<S> <C> <C> <C>
$ 0 $2,000 $2,600 $1,480
50 1,990 2,650 1,470
100 1,980 2,700 1,460
150 1,970 2,750 1,450
200 1,960 2,800 1,440
250 1,950 2,850 1,430
300 1,940 2,900 1,420
350 1,930 2,950 1,410
400 1,920 3,000 1,400
450 1,910 3,050 1,390
500 1,900 3,100 1,380
550 1,890 3,150 1,370
600 1,880 3,200 1,360
650 1,870 3,250 1,350
700 1,860 3,300 1,340
750 1,850 3,350 1,330
800 1,840 3,400 1,320
850 1,830 3,450 1,310
900 1,820 3,500 1,300
950 1,810 3,550 1,290
1,000 1,800 3,600 1,280
1,050 1,790 3,650 1,270
1,100 1,780 3,700 1,260
1,150 1,770 3,750 1,250
1,200 1,760 3,800 1,240
1,250 1,750 3,850 1,230
1,300 1,740 3,900 1,220
1,350 1,730 3,950 1,210
1,400 1,720 4,000 1,200
1,450 1,710 4,050 1,190
1,500 1,700 4,100 1,180
1,550 1,690 4,150 1,170
1,600 1,680 4,200 1,160
1,650 1,670 4,250 1,150
1,700 1,660 4,300 1,140
1,750 1,650 4,350 1,130
1,800 1,640 4,400 1,120
1,850 1,630 4,450 1,110
1,900 1,620 4,500 1,100
1,950 1,610 4,550 1,090
2,000 1,600 4,600 1,080
2,050 1,590 4,650 1,070
2,100 1,580 4,700 1,060
2,150 1,570 4,750 1,050
2,200 1,560 4,800 1,040
2,250 1,550 4,850 1,030
2,300 1,540 4,900 1,020
2,350 1,530 4,950 1,010
2,400 1,520 5,000 1,000
2,450 1,510 5,050 990
2,500 1,500 5,100 980
2,550 1,490 5,150 970
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
EXCESS AGI DEDUCTION EXCESS AGI DEDUCTION
- ------------ ----------- ------------ -----------
<C> <C> <C> <C>
$5,200 $960 $ 7,800 $440
5,250 950 7,850 430
5,300 940 7,900 420
5,350 930 7,950 410
5,400 920 8,000 400
5,450 910 8,050 390
5,500 900 8,100 380
5,550 890 8,150 370
5,600 800 8,200 360
5,650 870 8,250 350
5,700 860 8,300 340
5,750 850 8,350 330
5,800 840 8,400 320
5,850 830 8,450 310
5,900 820 8,500 300
5,950 810 8,550 290
6,000 800 8,600 280
6,050 790 8,650 270
6,100 780 8,700 260
6,150 770 8,750 250
6,200 760 8,800 240
6,250 750 8,850 230
6,300 740 8,900 220
6,350 730 8,950 210
6,400 720 9,000 200
6,450 710 9,050 200
6,500 700 9,100 200
6,550 690 9,150 200
6,600 680 9,200 200
6,650 670 9,250 200
6,700 660 9,300 200
6,750 650 9,350 200
6,800 640 9,400 200
6,850 630 9,450 200
6,900 620 9,500 200
6,950 610 9,550 200
7,000 600 9,600 200
7,050 590 9,650 200
7,100 580 9,700 200
7,150 570 9,750 200
7,200 560 9,800 200
7,250 550 9,850 200
7,300 540 9,900 200
7,350 530 9,950 200
7,400 520 10,000 0
7,450 510
7,500 500
7,550 490
7,600 480
7,650 470
7,700 460
7,750 450
</TABLE>
Excess AGI = Your AGI minus $25,000 for single persons, $40,000 for married
persons filing jointly, and $0 for married persons filing separately.
7
<PAGE>
IRA contributions for a taxable year may be made up to the time prescribed
for filing a Federal tax return for that taxable year (without extensions).
No contributions are allowed for the taxable year in which an individual
attains age 70-1/2 or any tax year thereafter. An individual age 70-1/2 or
over, however, can contribute and deduct up to the lesser of $2,000 or 100%
of compensation to a spousal IRA on behalf of a non-working spouse until the
year such spouse reaches age 70-1/2.
A Participant not eligible to deduct part or all of the IRA contribution may
still make nondeductible contributions on which earnings will accumulate on a
tax-deferred basis. The deductible and nondeductible contributions may not,
however, together exceed the $2,000 limit (or $2,250 spousal limit) or 100%
of compensation for each tax year. See "Excess Contributions." Participants
must keep their own records of deductible and nondeductible contributions in
order to prevent double taxation on the distribution of previously taxed
amounts. See "Distributions." A Participant making nondeductible
contributions in any taxable year, or receiving amounts from any IRA to which
he has made nondeductible contributions, will be penalized unless he files
required information with the IRS. Moreover, Participants making
nondeductible IRA contributions must retain all income tax returns and
records pertaining to such contributions until interests in such IRAs are
fully distributed.
Excess Contributions
Excess contributions to an IRA are subject to a 6% excise tax for the year in
which made and for each year thereafter until withdrawn. In the case of
"regular" IRA contributions any contribution in excess of the lesser of
$2,000 or 100% of compensation or earned income is an "excess contribution,"
(without regard to the deductibility or nondeductibility of IRA contributions
under this limit). Also, any "regular" contributions made after the
Participant reaches age 70 1/2 are excess contributions. In the case of
rollover IRA contributions, excess contributions are amounts which are not
eligible to be rolled over (for example, after-tax contributions to a
qualified plan or minimum distributions required to be made after age 70 1/2).
An excess contribution (rollover or "regular") which is withdrawn before
the time for filing the Participant's Federal income tax return for the tax
year (including extensions) is not includable in income and does not result
in the "early distribution" 10% penalty tax (discussed below under
"Distributions"), provided the net earnings attributable to the excess
contributions are also withdrawn and no tax deduction is taken for the excess
contributions. The withdrawn earnings on the excess contributions would,
however, be includable in the Participant's gross income for the tax year in
which the excess contributions were made and would also be subject to the
early distribution 10% penalty tax.
If excess contributions are not withdrawn before the time for filing the
Participant's Federal income tax return for the taxable year (including
extensions), excess "regular" contributions may still be withdrawn after that
time if the IRA contributions for the taxable year did not exceed $2,250 and
no tax deduction was taken for the excess contributions; in that event the
excess contributions will not be includable in income and will not be subject
to the early distribution 10% penalty tax. Lastly, excess "regular"
contributions may also be removed by underutilizing the allowable
contribution limits for a later year. If excess rollover contributions are
not withdrawn before the time for filing the Participant's Federal tax return
for the year (including extensions) and the excess contribution occurred as a
result of incorrect information provided by a qualified plan, any such excess
amount can be withdrawn if no tax deduction was taken for the excess
contribution. As above, excess rollover contributions withdrawn under those
circumstances would not be includable in gross income and would not be
subject to the early distribution 10% penalty tax.
Distributions
Income or gains attributable to any IRA contributions are not subject to
Federal income tax until benefits are distributed. Except as discussed below,
the amount of any distribution from an IRA is fully includable by the
Participant in gross income. Distributions from an IRA are taxable as
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<PAGE>
ordinary income and are not entitled to the special five-year averaging rules
for certain distributions from tax-qualified retirement plans.
If the Participant makes nondeductible IRA contributions, such contributions
are recovered tax-free when distributions are made. The Participant must keep
records of all nondeductible contributions. At the end of each tax year in
which the Participant takes a distribution, the Participant determines a
ratio of the total nondeductible IRA contributions (less any amounts
previously withdrawn tax-free) to the total account balances of all IRAs held
by the Participant at the end of the tax year (including rollover IRAs) plus
all IRA distributions made during such tax year. The resulting ratio is then
multiplied by all distributions from the IRA during that tax year to
determine the non-taxable portion of such distribution.
A partial or total withdrawal made prior to age 59 1/2 is deemed an early
distribution and will result in an additional penalty tax of 10% of the
taxable amount withdrawn, unless made (1) in case of death or disability, (2)
as substantially equal periodic payments made for the Participant's life (or
life expectancy) or joint and survivor lives (or joint and survivor life
expectancies) of the Participant and a designated beneficiary, (3) as a
return of excess contributions as discussed above or (4) as a distribution
for purposes of a tax-free rollover.
Distributions generally must commence no later than April 1 of the calendar
year following the calendar year in which the Participant attains age 70 1/2.
Subsequent required distributions must be made by December 31st of each year.
If the prescribed minimum amount required is not distributed in any year, a
50% excise tax is imposed on the amount by which the minimum required to be
distributed exceeds the amount actually distributed.
Distributions can generally be made (1) in a lump sum payment, (2) over the
life of the Participant, (3) over the joint lives of the Participant and his
or her designated beneficiary, (4) over a period not extending beyond the
life expectancy of the Participant or (5) over a period not extending beyond
the joint life expectancies of the Participant and his or her designated
beneficiary.
If the Participant dies after required distributions have begun, payment of
the remaining interest must be made at least as rapidly as under the method
used prior to the Participant's death. If a Participant dies before required
distributions have begun, payment of the entire interest must be made within
five years of death (other than payments to the surviving spouse) unless
payment is made to a designated beneficiary over a period which begins within
one year of the Participant's death and does not extend beyond the
beneficiary's life expectancy.
If the surviving spouse is the designated beneficiary, the spouse may delay
the commencement of such payments up until the individual would have attained
age 70-1/2. In the alternative, a surviving spouse may elect to roll over the
inherited IRA into the surviving spouse's own IRA. If a surviving spouse
elects to rollover the inherited IRA into the surviving spouse's own IRA, no
distribution is required until after the spouse attains age 70-1/2.
Distributions received by a beneficiary are generally given the same tax
treatment the Participant would have received if distribution had been made
to the Participant.
We are not permitted to make distributions from a certificate before the
retirement date unless a request has been made. It is the Participant's
responsibility to comply with the minimum distribution rules described above.
Because of the adverse tax consequences, including penalties and potential
IRA disqualification, which may result if the distribution requirements are
not met, a tax adviser should be consulted.
Rollovers and Transfers
Under the conditions and limitations of the Code, an individual may elect for
each IRA once every twelve-month period to make a rollover among IRAs
(including transfers from retirement bonds purchased before 1983). Direct
custodian-to-custodian transfers may be made more frequently than once a
year. A participant may request that amounts rolled over from a qualified
plan or a TSA, or from an IRA attributable solely to qualified plan or TSA
distributions and earnings thereon be accumulated in a separate "conduit" IRA
certificate to facilitate
9
<PAGE>
a subsequent rollover to another qualified plan or TSA which will accept
rollover contributions. We will maintain separate accounting of all such
amounts.
Rollover contributions must be transferred to the certificate either as a
direct rollover of an "eligible rollover distribution" or as a rollover by
the individual plan participant or owner of the IRA. In the latter cases, the
rollover must be made within 60 days of the date the proceeds from another
IRA or an eligible rollover distribution from a qualified plan or TSA were
received.
The taxable portion of any distribution (except for a required minimum
distribution under Section 401(a) (9) of the Code) from a qualified plan or
TSA may be rolled over tax-free to an IRA, unless the distribution is one of
a series of substantially equal periodic payments made (not less frequently
than annually) (1) for the life (or life expectancy) of the participant or
the joint lives (or joint life expectancies) of the participant and his or
her designated beneficiary, or (2) for a specified period of ten years or
more.
The same tax-free treatment applies to amounts withdrawn from the certificate
and rolled over into other IRAs unless the distribution was received under an
inherited IRA. No deduction is allowed for any contribution to an inherited
IRA. However, surviving spouses of original IRA owners will be exempted from
these restrictions.
Prohibited Transactions
If a Participant engages in a "prohibited transaction" with the IRA or
borrows money under or by use of the IRA, the IRA will cease to be an IRA as
of the first day of the taxable year in which the transaction occurred, and
the Participant must include in gross income for that year an amount equal to
the fair market value of the IRA as of that first day. Also, an additional
excise tax equal to 10% of the amount included in the gross income will
result if the Participant has not yet attained age 59-1/2 prior to the first
day.
Miscellaneous
The designation by a Participant of a beneficiary to whom the IRA will become
payable at or after the Participant's death is not considered a transfer
subject to Federal gift tax.
We describe the methods of computing and allocating earnings on contributions
in the prospectus under "Investment of Contributions in the Investment Funds"
and in this SAI under "The Guaranteed Rate Account." We describe the types of
charges and the amount of the charges that may be made in the prospectus
under "Deductions and Charges."
Further information on IRA tax matters can be obtained from any District
Office of the IRS.
IRAS UNDER SIMPLIFIED EMPLOYEE PENSION PLANS (SEP)
When an employer establishes a SEP for its employees, contributions for each
eligible employee can be made to an IRA certificate for that employee (SEP).
The employee may also make his or her own IRA contributions to that SEP
certificate. See "Contributions" above.
Contributions. Due to statutory limits, in 1996 an employer can annually
contribute an amount for an employee up to the lesser of $22,500 or 15% of
the employee's compensation, determined without taking into account the
employer's contribution to the SEP. This $22,500 maximum, based on the
statutory compensation limit of $150,000, may be adjusted for cost of living
changes in future years. These limits may be reduced by contributions made by
the employer to other qualified plans. The employer must make a contribution
for each employee who has reached age 21 and has worked for the employer
during at least three of the preceding five years. Contributions are not
required for employees who (1) earn less than $400 in 1996, (2) are covered
by a collective bargaining agreement or (3) are non-resident aliens who
receive no earned income from sources within the United States.
Employer contributions must be made under a written program which provides
that (i) withdrawals are permitted, (ii) contributions are made under an
allocation formula and (iii) contributions bear a uniform relationship to
compensation, not in excess of $150,000, which may adjusted for cost of
living changes in future years. Contributions cannot discriminate in favor of
highly compensated employees. Contributions to the SEP may be integrated with
Social Security; call our toll-free number for assistance.
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<PAGE>
Employers with 25 or fewer eligible employees for the prior taxable year may
allow such employees to make salary reduction contributions to a SEP
(SARSEP). SARSEP arrangements can be offered only if at least 50% of the
eligible employees elect to participate. If the 50% participation is not
satisfied as of the end of any plan year, all of the salary reduction
contributions made by employees for the plan shall be considered IRA
contributions that are not SEP contributions. The employer is responsible for
notifying each affected employee within 2-1/2 months after the end of the
plan year to which the salary reduction contributions relates that, among
other things, the employee's salary reduction deferrals are no longer
considered SEP contributions and that in order to avoid tax penalties the
salary reduction contributions (and allocable income) must be withdrawn from
the SEP by each affected employee by April 15 following the year of
notification. Special nondiscrimination rules apply to highly compensated
employees in a SARSEP. The percentage of compensation deferred by any
eligible highly compensated employee cannot exceed 125% of the deferred
compensation percentage for all eligible non-highly compensated employees. If
the limits are exceeded, the employer is responsible for notifying each
highly compensated employee no later than 2-1/2 months following the close of
the plan year of the amount of any excess contributions to that employee's
SEP for such plan year. Such notice shall, among other things, specify the
amount of the excess contribution, and shall advise the employee that in
order to avoid tax penalties such excess contributions (and allocable income)
must be withdrawn from the SEP by April 15 following the year of
notification. Salary reduction contributions made under a SARSEP are limited
to $9,500 for 1996. This limit applies to the aggregate of all elective
deferrals under all tax-favored plans in which the individual participates,
including SARSEPs, 401(k) plans and TSAs. See "Penalties for Excess
Deferrals" below.
Except as otherwise indicated in this section, all of the IRA rules discussed
above, including those relating to revocation, distributions and penalties
for early, minimum and excess distributions, apply to SEPs.
LIMITS ON DISTRIBUTIONS
A 15% excise tax applies to an individual's aggregate excess distributions
from all tax-favored retirement plans. The excise tax is in addition to the
ordinary income tax due but is reduced by the amount (if any) of the early
distribution penalty tax imposed by the Code. The aggregate distributions in
any year will be subject to the excise tax if they exceed $150,000 in 1996.
In addition, in certain cases the estate tax imposed on a deceased
individual's estate will be increased if the accumulated value of the
individual's interests in qualified annuities and tax favored retirement
plans is considered excessive.
PENALTIES FOR EXCESS DEFERRALS
If an individual's aggregate elective deferrals under 401(k) plans, SARSEPs
and TSAs exceed the permitted elective deferral limit in any taxable year
(for 401(k) Plans and SARSEPs the limit is generally $7,000 as indexed, or
$9,500 in 1996 for TSAs, the limit generally remains at $9,500), the
individual will be taxed twice on the excess deferral--once in the year of
the deferral and again when a distribution occurs. If, in the case of a TSA,
the individual notifies the affected plan or plans and, by April 15 of the
following year, receives a distribution of the excess deferral and related
income and if, in the case of a SARSEP, the individual takes a withdrawal of
the excess amount by April 15 following the year of the deferral, the excess
deferral will only be taxed in the year of deferral. Any related income will
be taxed in the year of the distribution. The distribution of the excess
deferral plus income is not treated as a withdrawal of restricted funds from
a TSA, is not subject to the 10% penalty tax on early retirement
distributions from the TSAs and IRAs and, with respect to TSAs, is not an
eligible rollover distribution subject to 20% mandatory federal income tax
withholding discussed below. If excess deferrals remain in the plan, the plan
may be disqualified.
FEDERAL AND STATE INCOME TAX WITHHOLDING
Equitable may be required to withhold Federal income tax on the taxable
portion of pension and annuity payments.
11
<PAGE>
Unless the pension or annuity payment is an "eligible rollover distribution"
from a TSA, the recipient generally may elect not to be subject to income tax
withholding. The rate of withholding will depend on the type of distribution
and, in certain cases, the amount of the distribution. Compare "Elective
Withholding" and "Mandatory Withholding from TSAs," below.
Certain states have indicated that pension and annuity withholding will apply
to payments made to residents. Generally, an election out of Federal
withholding will also be considered an election out of state withholding. In
some states, a recipient may elect out of state withholding, even if Federal
withholding applies. It is not clear whether such states will require
mandatory withholding with respect to eligible rollover distributions
(described below). If you need more information concerning a particular
state, consult your tax advisor.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. See your tax advisor if you may
be affected by such rules.
Elective Withholding
Requests not to withhold Federal income tax must be made in writing prior to
receiving benefits under the contract. We will provide forms for this
purpose. No election out of withholding is valid unless the recipient
provides us with the correct taxpayer identification number and a United
States residence address.
If a recipient does not have sufficient income tax withheld or does not make
sufficient estimated income tax payments, the recipient may incur penalties
under the estimated income tax rules. Recipients should consult their tax
advisors to determine whether they should elect out of withholding. Periodic
payments are generally subject to wage-bracket type withholding (as if such
payments were wages by an employer to an employee) unless the recipient elects
no withholding. If a recipient does not elect out of withholding or does not
specify the number of withholding exemptions, withholding will generally be made
as if the recipient is married and claiming three withholding exemptions. There
is an annual threshold of taxable income from periodic payments which is exempt
from withholding based on this assumption. For 1996 a recipient of periodic
payments (e.g., monthly or annual payments) which total less than $14,075 for
the year will generally be exempt from Federal income tax withholding, unless
the recipient specifies a different choice of withholding exemption.
A withholding election may be revoked at any time and remains effective until
revoked. If a recipient fails to provide a correct taxpayer identification
number, withholding is made as if the recipient is single with no exemptions.
A recipient of a partial or total non-periodic distribution (other than an
"eligible rollover distribution" discussed below) will generally be subject
to withholding at a flat 10% rate. A recipient who provides a United States
residence address and a correct taxpayer identification number will generally
be permitted to elect not to have tax withhold.
All recipients receiving periodic and non-periodic payments will be further
notified of the withholding requirements and of their right, if any, to make
withholding elections.
Mandatory Withholding From TSAs
All "eligible rollover distributions" from TSAs are subject to mandatory
federal income taxwithholding of 20% unless the employee elects to have the
distribution directly rolled over to another TSA or an IRA. The following are
not eligible rollover distributions subject to mandatory 20% withholding:
o any distribution to the extent that the distribution is a "required minimum
distribution" under Section 401(a)(9) of the Code;
o any distribution which is one of a series of substantially equal periodic
payments made (not less frequently than annually (1) for the life (or life
expectancy) of the employee or the joint lives (or joint life expectancies)
of the employee and his or her designated beneficiary, or (2) for a specified
period of 10 years or more;
o certain corrective distributions under Code Section 402(g); and
12
<PAGE>
o a distribution to a beneficiary other than to a surviving spouse or to a
current or former spouse under a qualified domestic relations order.
If a distribution is made to a plan participant's surviving spouse, or to a
current or former spouse under a qualified domestic relations order, the
distribution may be an eligible rollover distribution, subject to mandatory
20% withholding, unless one of the exceptions described above applies.
If a distribution is not an "eligible rollover distribution," the rules on
elective withholding described above, apply.
IMPACT OF TAXES TO EQUITABLE
The certificates provide that we may charge the Investment Funds for taxes or
set up reserves for that purpose. In computing Unit Values in the Investment
Funds, no charge for Federal income taxes is presently contemplated on the
income and gains of the Investment Funds attributable to the certificates.
PART 2--THE GUARANTEED RATE ACCOUNTS
Contributions to a Guaranteed Rate Account become part of our General
Account, which supports all of our insurance and annuity guarantees as well
as our general obligations. The General Account, as part of our insurance and
annuity operations, is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions in which we are authorized to do business, as discussed
in the prospectus under "Regulation." Because of applicable exemptive and
exclusionary provisions, interests in the General Account have not been
registered under the Securities Act of 1933 (1933 ACT) nor is the General
Account an investment company under the Investment Company Act of 1940 (1940
ACT). Accordingly, neither the General Account nor any interests therein are
subject to regulation under the 1933 Act or the 1940 Act, and we have been
advised that the staff of the Securities and Exchange Commission has not made
a review of the disclosures which are included in this SAI for your
information and which relate to the General Account and the Guaranteed Rate
Accounts. These disclosures, 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 and SAIs.
THE GUARANTEES
Contributions to a Guaranteed Rate Account are credited with interest at a
fixed rate for a specified period. The amount of the contribution is
guaranteed by us (before deduction of any applicable participant service
charge). The effective guaranteed annual rate will always be at least 3%.
New one-year and three-year Guarantees will be offered each quarter.
Generally 10 days before the beginning of the quarter, we will announce the
one-year and three-year Guarantee Rates, that is, the fixed interest rate
expressed as an effective annual interest rate, which will apply to
contributions made throughout the open period for each Guarantee. The open
period will be the calendar quarter (CONTRIBUTION QUARTER) unless during that
quarter we close the Guarantee and instead offer a new Guarantee at a
different Guarantee Rate for the remainder of the Contribution Quarter. We
reserve the right to close a Guarantee at any time based on market
conditions. Contributions made during the open period will not be affected by
subsequent rate changes and will continue to receive the Guaranteed Rate
until the maturity date for that Guarantee. All Guarantees of the same
duration which are opened during a Contribution Quarter mature on the same
day. After the last day of the Contribution Quarter, however, no further
contributions may be applied to that Guarantee. Contributions allocated to a
Guaranteed Rate Account during the next Contribution Quarter would be
allocated to the Guarantees being offered during that subsequent quarter at
the new Guarantee Rates in accordance with instructions. The new Guarantee
Rates may be obtained by calling us at the number listed on the front of this
SAI.
We may offer Guarantees with different maturities and different rates during
a particular calendar quarter. Currently, we offer Guarantees of one and
three year maturities.
13
<PAGE>
We may offer additional or different maturities in future Contribution
Quarters.
CONTRIBUTIONS
Contributions to a Guaranteed Rate Account are permitted at any time. There
is no minimum contribution; however, if you are contributing through an
employer, your employer may have a minimum.
Contributions to the Guaranteed Rate Accounts are credited until maturity
with the interest rate in effect on the date of receipt. The rate is
expressed as an effective annual rate, reflecting daily compounding and the
deduction of the participant service charge, described under "Deductions and
Charges," in the prospectus.
Written requests for changes in the percentage of contributions to be
allocated to a Guaranteed Rate Account will become effective on the date of
receipt. Alternatively, allocation or contribution instructions may be made
by telephone through the AIM System.
MATURING GUARANTEES
At the end of a Guarantee, unless we are instructed otherwise, the amount
accumulated will be automatically contributed to a new Guarantee of similar
duration, or, if no Guarantee of similar duration is then being offered, to
the Guarantee of the shortest duration then being offered.
Amounts in maturing Guarantees may be allocated to one or more other
Investment Funds by using the AIM System. Instructions must be received prior
to the maturity of the Guarantee and will apply to all maturing Guarantees
until other instructions are received.
PREMATURE WITHDRAWALS
OR TRANSFERS
Transfers may not be made from one Guarantee to another. Transfers may also
not be made from a Guarantee during the open period for that Guarantee. In
the case of a trustee-to-trustee transfer during the open period, there will
be a premature withdrawal charge.
Amounts in the Guaranteed Rate Accounts will be withdrawn or transferred on a
last in-first out basis unless otherwise specified by the Participant. All
other amounts withdrawn or transferred will be subject to a withdrawal charge
in an amount equal to (1) 7% of the amount withdrawn or transferred
(including the amount of the withdrawal charge) or, if less, (2) the amount
of the Participant's accumulated interest attributable to the amount
withdrawn or transferred (calculated as provided in the certificate). The
withdrawal charge will be deducted from the remaining amounts in the
Participant's Guarantee after the withdrawal or transfer payment is
processed, or from the withdrawn or transferred amount if remaining amounts
are insufficient.
This charge for premature withdrawals from a Guaranteed Rate Account is never
applied against the amount of the Participant's contributions. Also, the
charge for premature withdrawals does not apply:
o at maturity of the Guarantee;
o from withdrawals due to death or disability;
o when the installment option is elected; or
o when an annuity retirement option is elected.
It does apply to any other premature withdrawal or transfer, including
withdrawals on retirement.
14
<PAGE>
- -----------------------------------------------------------------------------
Example: $2,000 is contributed to the Guaranteed Rate Account on January 1,
with the contribution being directed to a three-year Guarantee with a
Guarantee Rate of 4%. On December 31, a premature withdrawal is made of
$1,000 from the Guaranteed Rate Account. The maximum Participant Service
Charge applicable to the Participant is $30 per year ($7.50 per quarter). The
withdrawal charge will be calculated as follows:
<TABLE>
<CAPTION>
PARTICIPANT
SERVICE
DATE CONTRIBUTION INTEREST CHARGE
- ------- -------------- ---------- -------------
<S> <C> <C> <C>
1/1 $2,000 -- --
3/31 -- $19.71 $7.50
6/30 -- 19.83 7.50
9/30 -- 19.95 7.50
12/31 -- 20.07 7.50
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
PREMATURE
AMOUNT WITHDRAWAL CHECK ACCOUNT
DATE REQUESTED CHARGE AMOUNT BALANCE
- ------- ----------- ------------ -------- -----------
<S> <C> <C> <C> <C>
1/1 -- -- -- $2,000.00
3/31 -- -- -- 2,012.21
6/30 -- -- -- 2,024.54
9/30 -- -- -- 2,036.09
12/31 $1,000 $26.00* $1,000 1,023.56
</TABLE>
- ------------
* The lesser of (a) 7% ($75.27) of the amount withdrawn (including the
amount of the withdrawal charge) or (b) the amount of the Participant's
accumulated interest ($26.00) attributable to that same amount.
The example assumes that each quarter contains the same number of days and
that each transaction occurs on a business day.
CASH VALUE
The Account Balance of a Guaranteed Rate Account is equal to the value of the
contributions and transfers assigned to each Guarantee then current, less
transfers out of the Guaranteed Rate Account, partial withdrawals and
applicable participant service charges, plus accrued interest. Because
withdrawals before the end of a Guarantee are subject to a premature
withdrawal charge, we use the term "Cash Value" to mean the Account Balance
of a Guaranteed Rate Account less any applicable premature withdrawal charge.
The Cash Value is the amount that would be paid to the Participant if the
Participant withdrew the entire Account Balance of a Guaranteed Rate Account
before the end of the Guarantees to which contributions were directed.
15
<PAGE>
TABLE I
ACCOUNT BALANCES AND CASH VALUES
(ASSUMING $1,000 CONTRIBUTIONS MADE ANNUALLY ON THE ENROLLMENT DATE)
<TABLE>
<CAPTION>
CASH VALUE ACCOUNT BALANCE
--------------------------- ---------------------------
ATTAINED 6% 6%
AGE 3% MINIMUM ILLUSTRATED 3% MINIMUM ILLUSTRATED
YEAR END GUARANTEE RATE GUARANTEE RATE
- ---------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
1 $ 999.66 $ 999.66 $ 999.66 $ 1,029.33
2 2,000.00 2,000.00 2,029.32 2,120.42
3 3,000.00 3,047.59 3,089.86 3,276.98
4 4,000.00 4,187.72 4,182.22 4,502.93
5 5,000.00 5,396.26 5,307.36 5,802.44
6 6,013.60 6,677.32 6,466.24 7,179.91
7 7,123.70 8,035.23 7,659.89 8,640.04
8 8,267.10 9,474.63 8,889.35 10,187.77
9 9,444.80 11,000.38 10,155.70 11,828.37
10 10,657.83 12,617.68 11,460.03 13,567.40
11 11,907.25 14,332.03 12,803.50 15,410.78
12 13,194.16 16,149.23 14,187.27 17,364.76
13 14,519.67 18,075.46 15,612.55 19,435.98
14 15,884.95 20,117.27 17,080.59 21,631.47
15 17,291.19 22,281.58 18,592.68 23,958.69
16 18,739.61 24,575.75 20,150.12 26,425.54
17 20,231.49 27,007.58 21,754.29 29,040.40
18 21,768.12 29,585.31 23,406.58 31,812.16
19 23,350.85 32,317.70 25,108.44 34,750.22
20 24,981.07 35,214.04 26,861.36 37,864.56
21 26,660.19 38,284.17 28,666.87 41,165.77
22 28,389.68 41,538.50 30,526.54 44,665.05
23 30,171.06 44,988.08 32,442.00 48,374.28
24 32,005.88 48,644.65 34,414.92 52,306.07
25 33,895.74 52,520.60 36,447.04 56,473.77
26 35,842.30 56,629.12 38,540.11 60,891.52
27 37,847.26 60,984.14 40,695.98 65,574.34
28 39,912.37 65,600.47 42,916.52 70,538.14
29 42,039.43 70,493.77 45,203.68 75,799.76
30 44,230.30 75,680.68 47,559.46 81,377.07
31 46,486.89 81,178.79 49,985.91 87,289.03
32 48,811.19 87,006.80 52,485.15 93,555.70
33 51,205.21 93,184.49 55,059.37 100,198.37
34 53,671.06 99,732.83 57,710.81 107,239.61
35 56,210.88 106,674.08 60,441.80 114,703.31
36 58,826.89 114,031.80 63,254.72 122,614.84
37 61,521.38 121,830.99 66,152.03 131,001.06
38 64,296.71 130,098.12 69,136.25 139,890.45
39 67,155.30 138,861.29 72,210.00 149,313.21
40 70,099.65 148,150.24 75,375.97 159,301.34
41 73,132.33 157,996.54 78,636.91 169,888.75
42 76,255.99 168,433.61 81,995.68 181,111.41
43 79,473.35 179,496.90 85,455.22 193,007.42
44 82,787.24 191,224.00 89,018.54 205,617.20
45 86,200.55 203,654.71 92,688.76 218,983.56
46 89,716.25 216,831.28 96,469.09 233,151.91
47 93,337.43 230,798.43 100,362.83 248,170.35
48 97,067.24 245,603.61 104,373.38 264,089.91
49 100,908.94 261,297.11 108,504.24 280,964.63
50 104,865.90 277,932.21 112,759.03 298,851.84
</TABLE>
16
<PAGE>
TABLE II
ACCOUNT BALANCES AND CASH VALUES
(ASSUMING A SINGLE CONTRIBUTION OF $1,000 AND NO FURTHER CONTRIBUTION)
<TABLE>
<CAPTION>
CASH VALUE ACCOUNT BALANCE
-------------------------- --------------------------
ATTAINED 6% 6%
AGE 3% MINIMUM ILLUSTRATED 3% MINIMUM ILLUSTRATED
YEAR END GUARANTEE RATE GUARANTEE RATE
- ---------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
1 $999.66 $1,000.00 $999.66 $1,029.33
2 999.32 1,000.00 999.32 1,060.42
3 998.96 1,016.84 998.96 1,093.38
4 998.60 1,049.33 998.60 1,128.31
5 998.22 1,083.77 998.22 1,165.34
6 997.83 1,120.27 997.83 1,204.59
7 997.43 1,158.96 997.43 1,246.20
8 997.02 1,199.98 997.02 1,290.30
9 996.60 1,243.46 996.60 1,337.05
10 996.16 1,289.54 996.16 1,386.60
11 995.71 1,338.39 995.71 1,439.13
12 995.25 1,390.17 995.25 1,494.81
13 994.77 1,445.06 994.77 1,553.83
14 994.28 1,503.24 994.28 1,616.39
15 993.77 1,564.92 993.77 1,682.70
16 993.25 1,630.29 993.25 1,753.00
17 992.71 1,699.58 992.71 1,827.51
18 992.16 1,773.04 992.16 1,906.49
19 991.59 1,850.90 991.59 1,990.21
20 991.00 1,933.43 991.00 2,078.95
21 990.39 2,020.91 990.39 2,173.02
22 989.77 2,113.64 989.77 2,272.73
23 989.13 2,211.94 989.13 2,378.43
24 988.47 2,316.13 988.47 2,490.46
25 987.79 2,426.57 987.79 2,609.22
26 987.09 2,543.65 987.09 2,735.10
27 986.36 2,667.74 986.36 2,868.54
28 985.62 2,799.28 985.62 3,009.98
29 984.85 2,938.72 984.85 3,159.91
30 984.06 3,086.52 984.06 3,318.84
31 983.25 3,243.19 983.25 3,487.30
32 982.41 3,409.26 982.41 3,665.87
33 981.55 3,585.29 981.55 3,855.15
34 980.66 3,771.88 980.66 4,055.79
35 979.74 3,969.68 979.74 4,268.47
36 978.80 4,179.34 978.80 4,493.91
37 977.82 4,401.58 977.82 4,732.88
38 976.82 4,637.15 976.82 4,986.18
39 975.79 4,886.85 975.79 5,254.68
40 974.73 5,151.54 974.73 5,539.29
41 973.64 5,432.11 973.64 5,840.98
42 972.51 5,729.52 972.51 6,160.77
43 971.35 6,044.77 971.35 6,499.75
44 970.16 6,378.93 970.16 6,859.07
45 968.93 6,733.15 968.93 7,239.94
46 967.66 7,108.61 967.66 7,643.67
47 966.35 7,506.61 966.35 8,071.62
48 965.01 7,928.48 965.01 8,525.25
49 963.63 8,375.67 963.63 9,006.10
50 962.20 8,849.69 962.20 9,515.79
</TABLE>
17
<PAGE>
PART 3--REORGANIZATION
Prior to May 1, 1987, the Separate Account was one of four separate accounts
used to fund benefits under the certificates. Each of these predecessor
separate accounts, which included a Money Market Account, a Stock Account, a
Bond Account and a Balanced Account (collectively, the Predecessor Separate
Accounts), was organized as an open-end management investment company, with
its own investment objectives and policies. Effective May 1, 1987, with the
approval of Contract Owners, we reorganized the Predecessor Separate Accounts
into one separate account (Separate Account No. 301, referred to as the
Separate Account) in unit investment trust form with investment divisions. In
connection with the reorganization, all of the investment-related assets and
liabilities of the Predecessor Separate Accounts were transferred to the
corresponding Funds of Prism Investment Trust ("Prism"), in exchange for
shares in the Funds. In addition, we created an Aggressive Stock Fund, a High
Yield Fund and a Global Fund. The reorganization did not change the Account
Balances under existing certificates. As of September 6, 1991, each of the
above-listed Investment Funds of the Separate Account invests in shares of a
corresponding Portfolio of the Trust. Previously, the Investment Funds had
invested in shares of Prism. Shares of Prism's Money Market, Common Stock,
Balanced, Aggressive Stock, High Yield and Global Funds formerly held by the
Separate Account, were replaced by shares of the corresponding Portfolios of
the Trust; and the Investment Fund which had invested in the Bond Fund of
Prism now invests (as the Intermediate Government Securities Fund) in shares
of the Intermediate Government Securities Portfolio of the Trust.
PART 4--EXPERTS
- -----------------------------------------------------------------------------
The financial statements of the Separate Account and of Equitable Life
included in this SAI have been audited for the years-ended December 31, 1995,
December 31, 1994 and December 31, 1993 by Price Waterhouse LLP, as stated in
their reports. The financial statements of the Separate Account and of
Equitable Life for the years ended December 31, 1995 and December 31, 1994
included in this SAI have been so included in reliance on the reports of
Price Waterhouse LLP, independent accountants, given on the authority of such
firm as experts in accounting and auditing.
PART 5--MONEY MARKET
FUND YIELD INFORMATION
- -----------------------------------------------------------------------------
The Money Market Fund calculates yield information for seven-day periods. The
seven-day current yield calculation is based on a hypothetical Account
Balance with one Unit at the beginning of the period. To determine the
seven-day rate of return, the net change in the Unit Value is computed by
subtracting the Unit Value at the beginning of the period from a Unit Value,
exclusive of capital changes, at the end
of the period.
The net change is then reduced by the average administrative charge factor
(explained below). This reduction is made to recognize the deduction of the
participant service charge, which is not reflected in the unit value. See
"Deductions and Charges--Participant Service Charge" in the prospectus. Unit
Values reflect all other accrued expenses of the Money Market Fund.
The adjusted net change is divided by the Unit Value at the beginning of the
period to obtain the adjusted base period rate of return. This seven-day
adjusted base period return is then multiplied by 365/7 to produce an
annualized seven-day current yield figure carried to the nearest
one-hundredth of one percent.
The actual dollar amount of the participant service charge that is deducted
from the Money Market Fund will vary for each Participant depending upon how
the Account Balance is allocated among the Investment Options. To determine
the effect of the participant service charge on the yield, we start with the
total dollar amount of the charges deducted from the Fund on the last day of
the prior quarter. This amount is multiplied by 7/91.25 to produce an average
participant service charge factor which is used in all weekly yield
computations for the ensuing quarter. The average administrative charge is
then divided by the number of Money Market Fund Units as of the
18
<PAGE>
end of the prior calendar quarter, and the resulting quotient is deducted
from the net change in Unit Value for the seven-day period.
The effective yield is obtained by modifying the current yield to give effect
to the compounding nature of the Money Market Fund's investments, as follows:
the unannualized adjusted base period return is compounded by adding one to
the adjusted base period return, raising the sum to a power equal to 365
divided by 7, and subtracting one from the result, i.e., effective yield =
(base period return + 1) (365)/7 -1.
The Money Market Fund yields will fluctuate daily. Accordingly, yields for
any given period are not necessarily representative of future results. In
addition, the value of Units of the Money Market Fund will fluctuate and not
remain constant.
The Money Market Fund yields reflect charges that are not normally reflected
in the yields of other investments and therefore may be lower when compared
with yields of other investments. Money Market Fund yields should not be
compared to the return on fixed rate investments which guarantee rates of
interest for specified periods, such as the Guaranteed Rate Accounts or bank
deposits. The yield should not be compared to the yield of money market funds
made available to the general public because their yields usually are
calculated on the basis of a constant $1 price per share and they pay out
earnings in dividends which accrue on a daily basis.
The seven-day current yield for the Money Market Fund was 4.77% for the
period ended December 31, 1995. The effective yield for that period was
4.78%. Because these yields reflect the deduction of Separate Account
expenses, including the participant service charge, they are lower than the
corresponding yield figures for the Money Market Portfolio which reflect only
the deduction of Trust-level expenses.
PART 6--FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------
The financial statements of Equitable Life included herein should be
considered only as bearing upon the ability of Equitable Life to meet its
obligations under the certificates. The financial statements begin on the
following page.
19
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
The Equitable Life Assurance Society of the United States
and Contractowners of Separate Account No. 301
of The Equitable Life Assurance Society of the United States
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly,
in all material respects, the financial position of Money Market Fund, Common
Stock Fund, Intermediate Government Securities Fund, Balanced Fund, High
Yield Fund, Aggressive Stock Fund, Global Fund, Growth Investors Fund,
Conservative Investors Fund and Growth & Income Fund, separate investment
funds of The Equitable Life Assurance Society of the United States
("Equitable Life") Separate Account No. 301 at December 31, 1995, the results
of each of their operations and changes in each of their net assets for the
periods indicated, in conformity with generally accepted accounting
principles. These financial statements are the responsibility of Equitable
Life's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management
and evaluating the overall financial statement presentation. We believe that
each of our audits, which included confirmation of shares in The Hudson River
Trust at December 31, 1995 with the transfer agent, provide a reasonable basis
for the opinion expressed above. The unit value information presented in
Note 5 for each of the years prior to December 31, 1993 were audited by other
independent accountants whose report dated February 10, 1993 expressed an
unqualified opinion on the financial statements containing such information.
Price Waterhouse LLP
New York, NY
February 7, 1996
FSA-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT NO. 301
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT
MONEY COMMON SECURITIES BALANCED
MARKET FUND STOCK FUND FUND FUND
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of
The Hudson River Trust,
at market value (Note 2)
Cost: $20,904,797 .............. $20,887,161
49,625,827 ............... $56,978,953
6,737,931 ................ $6,242,082
33,129,950 ............... $34,623,577
1,948,698 ................
5,745,828 ................
4,224,900 ................
1,068,616 ................
843,042 .................
1,415,871 ................
Receivable for The Hudson River
Trust shares redeemed ......... 7,413 876,352 -- 16,560
Due from Equitable Life's
General Account ............... -- -- 759 --
----------- ----------- ------------ -----------
Total assets ................. 20,894,574 57,855,305 6,242,841 34,640,137
----------- ----------- ------------ -----------
LIABILITIES:
Payable for The Hudson River
Trust shares purchased ........ -- -- 22 --
Due to Equitable Life's General
Account ....................... 6,592 876,352 -- 16,560
Accrued expenses ............... 12,241 33,449 4,088 19,636
----------- ----------- ------------ -----------
Total liabilities ............ 18,833 909,801 4,110 36,196
----------- ----------- ------------ -----------
NET ASSETS ..................... $20,875,741 $56,945,504 $6,238,731 $34,603,941
=========== =========== ============ ===========
Unit Value at December 31, 1995
(Note 5) ...................... $ 24.55 $ 84.56 $ 40.82 $ 56.07
=========== =========== ============ ===========
Units Outstanding at December
31, 1995 ...................... 850,201 673,393 152,850 617,202
=========== =========== ============ ===========
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
GROWTH CONSERVATIVE GROWTH &
HIGH YIELD AGGRESSIVE GLOBAL INVESTORS INVESTORS INCOME
FUND STOCK FUND FUND FUND FUND FUND
---------- ---------- ---------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in shares of
The Hudson River Trust,
at market value (Note 2)
Cost: $20,904,797 ..............
49,625,827 ...............
6,737,931 ................
33,129,950 ...............
1,948,698 ................ $1,885,219
5,745,828 ................ $6,223,478
4,224,900 ................ $4,568,966
1,068,616 ................ $1,141,446
843,042 ................. $886,770
1,415,871 ................ $1,638,038
Receivable for The Hudson River
Trust shares redeemed ......... 101 -- -- -- -- 1,156
Due from Equitable Life's
General Account ............... -- 856,594 731 875 5 --
---------- ---------- ---------- ---------- ------------ ----------
Total assets ................. 1,885,320 7,080,072 4,569,697 1,142,321 886,775 1,639,194
---------- ---------- ---------- ---------- ------------ ----------
LIABILITIES:
Payable for The Hudson River
Trust shares purchased ........ -- 856,594 731 875 5 --
Due to Equitable Life's General
Account ....................... 24 -- -- -- -- 1,156
Accrued expenses ............... 1,606 3,529 2,986 1,045 1,038 1,470
---------- ---------- ---------- ---------- ------------ ----------
Total liabilities ............ 1,630 860,123 3,717 1,920 1,043 2,626
---------- ---------- ---------- ---------- ------------ ----------
NET ASSETS ..................... $1,883,690 $6,219,949 $4,565,980 $1,140,401 $885,732 $1,636,568
========== ========== ========== ========== ============ ==========
Unit Value at December 31, 1995
(Note 5) ...................... $ 21.67 $ 32.67 $ 22.76 $ 12.23 $ 11.79 $ 12.21
========== ========== ========== ========== ============ ==========
Units Outstanding at December
31, 1995 ...................... 86,909 190,396 200,599 93,252 75,090 134,030
========== ========== ========== ========== ============ ==========
</TABLE>
See Notes to Financial Statements.
FSA-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT N0. 301
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY COMMON INTERMEDIATE HIGH
MARKET STOCK GOVERNMENT BALANCED YIELD
FUND FUND SECURITIES FUND FUND FUND
------------ ------------- --------------- ------------ ----------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSE:
Investment Income:
Dividends from The Hudson River Trust
(Note 2) ............................ $1,127,417 $ 729,122 $357,259 $1,081,427 $171,066
------------ ------------- --------------- ------------ ----------
Expenses (Note 3):
Administrative fees .................. 53,674 128,586 15,132 81,820 4,059
Recordkeeping charges ................ 37,820 82,688 14,846 53,842 8,340
Professional fees .................... 6,098 13,967 1,592 8,496 428
Printing and mailing expenses ....... 7,566 17,543 2,114 9,511 554
Miscellaneous ........................ (13) 20 (5) (36) (1)
------------ ------------- --------------- ------------ ----------
Total expenses ...................... 105,145 242,804 33,679 153,633 13,380
Less: Reimbursement for excess expense
limitation ........................... 11,045 -- 13,557 -- 3,273
------------ ------------- --------------- ------------ ----------
Net expenses ........................ 94,100 242,804 20,122 153,633 10,107
------------ ------------- --------------- ------------ ----------
NET INVESTMENT INCOME (LOSS) ........... 1,033,317 486,318 337,137 927,794 160,959
------------ ------------- --------------- ------------ ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) from share
transactions ......................... (19,514) 874,919 (97,203) 183,059 (15,169)
Realized gain distribution from
The Hudson River Trust ............... -- 3,218,979 -- 945,326 --
------------ ------------- --------------- ------------ ----------
Net realized gain (loss) ............ (19,514) 4,093,898 (97,203) 1,128,385 (15,169)
------------ ------------- --------------- ------------ ----------
Change in unrealized appreciation of
investments .......................... 94,984 9,414,798 497,322 3,701,929 136,740
------------ ------------- --------------- ------------ ----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS ........................... 75,470 13,508,696 400,119 4,830,314 121,571
------------ ------------- --------------- ------------ ----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS ............................ $1,108,787 $13,995,014 $737,256 $5,758,108 $282,530
============ ============= =============== ============ ==========
</TABLE>
[RESTUBBED TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH CONSERVATIVE GROWTH &
STOCK GLOBAL INVESTORS INVESTORS INCOME
FUND FUND FUND FUND FUND
------------ ---------- ----------- -------------- ----------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSE:
Investment Income:
Dividends from The Hudson River Trust
(Note 2) ............................ $ 13,210 $ 70,487 $ 23,351 $32,935 $ 39,092
------------ ---------- ----------- -------------- ----------
Expenses (Note 3):
Administrative fees .................. 11,888 10,047 1,533 1,439 3,353
Recordkeeping charges ................ 12,634 11,803 5,816 5,867 7,388
Professional fees .................... 1,399 1,181 208 198 483
Printing and mailing expenses ....... 1,598 1,392 193 189 451
Miscellaneous ........................ 12 6 4 5 10
------------ ---------- ----------- -------------- ----------
Total expenses ...................... 27,531 24,429 7,754 7,698 11,685
Less: Reimbursement for excess expense
limitation ........................... -- 4,039 -- -- --
------------ ---------- ----------- -------------- ----------
Net expenses ........................ 27,531 20,390 7,754 7,698 11,685
------------ ---------- ----------- -------------- ----------
NET INVESTMENT INCOME (LOSS) ........... (14,321) 50,097 15,597 25,237 27,407
------------ ---------- ----------- -------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) from share
transactions ......................... 295,380 66,631 20,152 5,024 24,033
Realized gain distribution from
The Hudson River Trust ............... 598,710 126,194 15,217 5,484 --
------------ ---------- ----------- -------------- ----------
Net realized gain (loss) ............ 894,090 192,825 35,369 10,508 24,033
------------ ---------- ----------- -------------- ----------
Change in unrealized appreciation of
investments .......................... 439,966 435,771 80,196 58,432 227,245
------------ ---------- ----------- -------------- ----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS ........................... 1,334,056 628,596 115,565 68,940 251,278
------------ ---------- ----------- -------------- ----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS ............................ $1,319,735 $678,693 $131,162 $94,177 $278,685
============ ========== =========== ============== ==========
</TABLE>
See Notes to Financial Statements.
FSA-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT NO. 301
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT
MONEY MARKET FUND COMMON STOCK FUND SECURITIES FUND
------------------------ ------------------------ -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------------------ ------------------------ -----------------------
1995 1994 1995 1994 1995 1994
----------- ----------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ............. $ 1,033,317 $ 811,969 $ 486,318 $ 429,540 $ 337,137 $ 531,785
Realized gain (loss) on
investments ...................... (19,514) (183,870) 4,093,898 2,839,287 (97,203) (109,911)
Change in unrealized
appreciation/depreciation of
investments ...................... 94,984 224,026 9,414,798 (4,486,763) 497,322 (716,571)
----------- ----------- ----------- ----------- ---------- -----------
Net increase (decrease) in net
assets from operations ........... 1,108,787 852,125 13,995,014 (1,217,936) 737,256 (294,697)
----------- ----------- ----------- ----------- ---------- -----------
FROM CONTRACT OWNER
TRANSACTIONS (Note 4):
Contributions and Transfers:
Contributions .................... 2,601,421 3,717,904 1,421,806 1,481,343 244,146 319,399
Transfers from other Funds ...... 4,608,307 4,363,014 4,213,931 4,026,983 269,464 406,334
Transfers from Guaranteed Rate
Account ......................... 907,069 2,117,799 307,286 953,062 13,289 251,763
----------- ----------- ----------- ----------- ---------- -----------
Total contributions ............. 8,116,797 10,198,717 5,943,023 6,461,388 526,899 977,496
----------- ----------- ----------- ----------- ---------- -----------
Withdrawals and Transfers:
Withdrawals ...................... 5,489,199 5,990,552 3,230,995 3,239,769 543,094 838,079
Transfers to other Funds ......... 5,748,048 4,016,831 4,124,230 4,276,450 311,766 785,172
Transfers to Guaranteed Rate
Account ......................... 1,059,744 313,630 117,782 325,646 163,916 165,675
Participant service charge ...... 20,934 24,229 21,099 22,892 1,487 1,758
----------- ----------- ----------- ----------- ---------- -----------
Total withdrawals ............... 12,317,925 10,345,242 7,494,106 7,864,757 1,020,263 1,790,684
----------- ----------- ----------- ----------- ---------- -----------
Net increase (decrease) in net
assets from Contract Owner
transactions ..................... (4,201,128) (146,525) (1,551,083) (1,403,369) (493,364) (813,188)
----------- ----------- ----------- ----------- ---------- -----------
INCREASE (DECREASE) IN NET ASSETS . (3,092,341) 705,600 12,443,931 (2,621,305) 243,892 (1,107,885)
NET ASSETS--BEGINNING OF YEAR ..... 23,968,082 23,262,482 44,501,573 47,122,878 5,994,839 7,102,724
----------- ----------- ----------- ----------- ---------- -----------
NET ASSETS--END OF YEAR (Note 2) .. $20,875,741 $23,968,082 $56,945,504 $44,501,573 $6,238,731 $ 5,994,839
=========== =========== =========== =========== ========== ===========
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
BALANCED FUND HIGH YIELD FUND
------------------------ ---------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------------ ---------------------
1995 1994 1995 1994
----------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ............. $ 927,794 $ 876,928 $ 160,959 $ 124,374
Realized gain (loss) on
investments ...................... 1,128,385 129,094 (15,169) (7,777)
Change in unrealized
appreciation/depreciation of
investments ...................... 3,701,929 (4,208,604) 136,740 (180,846)
----------- ----------- ---------- ---------
Net increase (decrease) in net
assets from operations ........... 5,758,108 (3,202,582) 282,530 (64,249)
----------- ----------- ---------- ---------
FROM CONTRACT OWNER
TRANSACTIONS (Note 4):
Contributions and Transfers:
Contributions .................... 868,908 887,762 103,661 59,255
Transfers from other Funds ...... 378,163 203,671 181,040 954,092
Transfers from Guaranteed Rate
Account ......................... 103,813 700,845 43,136 148,765
----------- ----------- ---------- ---------
Total contributions ............. 1,350,884 1,792,278 327,837 1,162,112
----------- ----------- ---------- ---------
Withdrawals and Transfers:
Withdrawals ...................... 3,332,214 3,624,729 91,857 105,918
Transfers to other Funds ......... 912,130 1,670,264 73,378 1,005,461
Transfers to Guaranteed Rate
Account ......................... 288,178 92,670 11,060 --
Participant service charge ...... 10,445 12,401 424 406
----------- ----------- ---------- ---------
Total withdrawals ............... 4,542,967 5,400,064 176,719 1,111,785
----------- ----------- ---------- ---------
Net increase (decrease) in net
assets from Contract Owner
transactions ..................... (3,192,083) (3,607,786) 151,118 50,327
----------- ----------- ---------- ---------
INCREASE (DECREASE) IN NET ASSETS . 2,566,025 (6,810,368) 433,648 (13,922)
NET ASSETS--BEGINNING OF YEAR ..... 32,037,916 38,848,284 1,450,042 1,463,964
----------- ----------- ---------- ---------
NET ASSETS--END OF YEAR (Note 2) .. $34,603,941 $32,037,916 $1,883,690 $1,450,042
=========== =========== ========== =========
</TABLE>
See Notes to Financial Statements.
FSA-4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT NO. 301
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
<TABLE>
<CAPTION>
GROWTH
INVESTORS
AGGRESSIVE STOCK FUND GLOBAL FUND FUND
---------------------- ---------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED MAY 2 TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
---------------------- ---------------------- ------------ ------------
1995 1994 1995 1994 1995 1994
---------- ---------- ---------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ............. $ (14,321) $ (20,064) $ 50,097 $ 23,171 $ 15,597 $ 4,305
Realized gain (loss) on
investments ...................... 894,090 (127,820) 192,825 43,532 35,369 (233)
Change in unrealized
appreciation/depreciation of
investments ...................... 439,966 (50,858) 435,771 68,456 80,196 (7,366)
---------- ---------- ---------- ---------- ------------ ------------
Net increase (decrease) in net
assets from operations ........... 1,319,735 (198,742) 678,693 135,159 131,162 (3,294)
---------- ---------- ---------- ---------- ------------ ------------
FROM CONTRACT OWNER
TRANSACTIONS (Note 4):
Contributions and Transfers:
Contributions .................... 554,849 454,806 395,914 413,345 496,380 27,054
Transfers from other Funds ...... 3,743,211 2,875,068 1,465,044 2,871,284 379,453 331,573
Transfers from Guaranteed Rate
Account ......................... 119,098 207,055 77,476 391,236 25,060 26,382
---------- ---------- ---------- ---------- ------------ ------------
Total contributions ............. 4,417,158 3,536,929 1,938,434 3,675,865 900,893 385,009
---------- ---------- ---------- ---------- ------------ ------------
Withdrawals and Transfers:
Withdrawals ...................... 321,607 469,189 230,523 157,737 124,794 673
Transfers to other Funds ......... 2,701,872 2,623,954 1,525,712 2,716,768 133,088 14,479
Transfers to Guaranteed Rate
Account ......................... 8,485 327 48,671 4,746 -- --
Participant service charge ...... 1,224 1,078 1,017 795 201 134
---------- ---------- ---------- ---------- ------------ ------------
Total withdrawals ............... 3,033,188 3,094,548 1,805,923 2,880,046 258,083 15,286
---------- ---------- ---------- ---------- ------------ ------------
Net increase in net assets from
Contract Owner transactions ..... 1,383,970 442,381 132,511 795,819 642,810 369,723
---------- ---------- ---------- ---------- ------------ ------------
INCREASE IN NET ASSETS ............. 2,703,705 243,639 811,204 930,978 773,972 366,429
NET ASSETS--BEGINNING OF YEAR ..... 3,516,244 3,272,605 3,754,776 2,823,798 366,429 --
---------- ---------- ---------- ---------- ------------ ------------
NET ASSETS--END OF YEAR (Note 2) .. $6,219,949 $3,516,244 $4,565,980 $3,754,776 $1,140,401 $366,429
========== ========== ========== ========== ============ ============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
CONSERVATIVE GROWTH &
INVESTORS INCOME
FUND FUND
-------------------------- --------------------------
YEAR ENDED MAY 2 TO YEAR ENDED MAY 2 TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------ ------------
1995 1994 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ............. $ 25,237 $ 13,725 $ 27,407 $ 10,901
Realized gain (loss) on
investments ...................... 10,508 57 24,033 (137)
Change in unrealized
appreciation/depreciation of
investments ...................... 58,432 (14,704) 227,245 (5,078)
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets from operations ........... 94,177 (922) 278,685 5,686
------------ ------------ ------------ ------------
FROM CONTRACT OWNER
TRANSACTIONS (Note 4):
Contributions and Transfers:
Contributions .................... 308,750 109,347 213,755 166,650
Transfers from other Funds ...... 892,949 371,681 318,466 764,576
Transfers from Guaranteed Rate
Account ......................... 620 41,837 17,921 159,920
------------ ------------ ------------ ------------
Total contributions ............. 1,202,319 522,865 550,142 1,091,146
------------ ------------ ------------ ------------
Withdrawals and Transfers:
Withdrawals ...................... 100,865 1,600 111,599 26,141
Transfers to other Funds ......... 804,834 25,224 114,971 33,575
Transfers to Guaranteed Rate
Account ......................... -- -- 2,489 --
Participant service charge ...... 107 77 201 115
------------ ------------ ------------ ------------
Total withdrawals ............... 905,806 26,901 229,260 59,831
------------ ------------ ------------ ------------
Net increase in net assets from
Contract Owner transactions ..... 296,513 495,964 320,882 1,031,315
------------ ------------ ------------ ------------
INCREASE IN NET ASSETS ............. 390,690 495,042 599,567 1,037,001
NET ASSETS--BEGINNING OF YEAR ..... 495,042 -- 1,037,001 --
------------ ------------ ------------ ------------
NET ASSETS--END OF YEAR (Note 2) .. $ 885,732 $495,042 $1,636,568 $1,037,001
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
FSA-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT NO. 301
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. GENERAL
Separate Account No. 301 (the Account) of The Equitable Life Assurance
Society of the United States (Equitable Life) is organized as a unit
investment trust, a type of investment company, and is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940.
The Account is used to fund benefits under certain group annuity contracts
and certificates (Contracts) in connection with individual retirement
annuities and tax-sheltered annuity arrangements. The Account has ten
investment funds (Funds): Money Market, Common Stock, Intermediate Government
Securities, Balanced, High Yield, Aggressive Stock, Global, Growth Investors,
Conservative Investors, and Growth & Income. The assets in each Fund are
invested in shares of a corresponding portfolio (Portfolio) of a mutual fund,
The Hudson River Trust (Trust). The Trust is an open-end, diversified,
management investment company that invests the assets of separate accounts of
insurance companies. Each Portfolio has separate investment objectives.
The net assets of the Account are not chargeable with liabilities arising out
of any other business Equitable Life may conduct. The excess of assets over
reserves and other contract liabilities, if any, in the Account may be
transferred to Equitable Life's General Account.
2. SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements are prepared in conformity with
generally accepted accounting principles (GAAP). The preparation of financial
statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Share Valuation--Investments in shares of the Trust are valued at the net
asset value of the respective Portfolio. Investments of the Portfolios are
valued at market value.
Share Transactions--Share transactions are recorded on the trade date at the
net asset value of the underlying Portfolios. Realized gains and losses on
investments include gains and losses on redemptions of the Trust's shares
(determined on the identified cost basis) and capital gain distributions from
the Trust. Dividends and realized gain distributions from The Hudson River
Trust are recorded on ex-date.
Federal Income Taxes--No Federal income tax based on net income or realized
and unrealized capital gains is currently applicable to Contracts
participating in the Account by reason of applicable provisions of the
Internal Revenue code and no Federal income tax payable by Equitable Life is
expected to affect Fund unit values in the Account. Accordingly, no provision
for income taxes is required.
3. ASSET CHARGES
The following charges are made directly against the assets of the Account and
are reflected daily in the computation of the unit values of the Contracts:
o Administrative fees are charged at an effective annual rate of 0.25% of
the net assets of each Fund.
o Direct operating expenses are paid to cover expenses attributable to the
operations of each Fund.
Under the Contracts, Equitable Life reimburses the Money Market, Common
Stock, Intermediate Government Securities and Balanced Funds for the excess
of the aggregate expense charges of the Fund (including investment advisory
fees and certain other Trust expenses attributable to assets of such Fund
invested in a Portfolio of the Trust and the asset-based charges of the Fund,
as described above)
FSA-6
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT NO. 301
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
which during any calendar year exceed 1.5% of the average daily net assets
of the Common Stock, Intermediate Government Securities and Balanced Funds
and 1.0% of the Money Market Fund. In addition, Equitable Life reimburses the
High Yield, Aggressive Stock and Global Funds for aggregate expenses in
excess of a 1.5% (effective annual rate) voluntary expense limitation of each
Fund's average daily net assets. The voluntary expense limitation may be
discontinued by Equitable Life at its discretion.
Also, if the annual amount of management fees applicable to the Money Market
and Intermediate Government Securities Funds exceeds 0.35% of the average
daily net asset value of either Fund, Equitable Life will reimburse the
related Fund for such excess. This expense limitation is a contractual right
for Participants who enrolled prior to May 1, 1987 and cannot be changed
without the consent of those Participants. Equitable Life has voluntarily
agreed to impose this expense limitation for Participants who enrolled after
May 1, 1987 and reserves the right to discontinue this at any time.
Effective March 21, 1994, administrative services for the Account are being
provided by Equitable Life. Prior thereto, the services were provided by a
third party.
A quarterly Participant Service Charge for administrative expense is made for
each participant at the end of each calendar quarter before retirement date.
The portion of this charge allocable to the Funds is made by reducing the
units of each Fund owned by a participant under a Contract.
4. CONTRIBUTIONS AND WITHDRAWALS:
Contributions allocated to the Account are not subject to sales expense.
Participants may transfer all or part of the cash value under the Contracts
from one Fund to another without any restrictions as to number of times, but
subject to certain limitations. Transfers to the Guaranteed Rate Account from
the Account and transfers of the cash value of the Guaranteed Rate Account
(unless an exception applies) to the Account may be made at any time.
Full or partial withdrawals, including withdrawals of excess contributions,
may be made by participants.
Units of the Account issued and redeemed during the periods indicated were:
FSA-7
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT NO. 301
NOTES TO FINANCIAL STATEMENT--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
------------
1995 1994
---- ----
<S> <C> <C>
MONEY MARKET FUND
Issued ......................................... 336,167 445,924
Redeemed ....................................... 513,735 453,183
COMMON STOCK FUND
Issued ......................................... 78,247 98,710
Redeemed ....................................... 98,731 120,011
INTERMEDIATE GOVERNMENT SECURITES FUND
Issued ......................................... 13,616 26,463
Redeemed ....................................... 26,688 48,598
BALANCED FUND
Issued ......................................... 26,172 36,728
Redeemed ....................................... 90,190 111,546
HIGH YIELD FUND
Issued ......................................... 16,056 60,596
Redeemed ....................................... 8,900 58,528
AGGRESSIVE STOCK FUND
Issued ......................................... 160,037 143,315
Redeemed ....................................... 110,544 127,626
GLOBAL FUND
Issued ......................................... 94,486 190,670
Redeemed ....................................... 88,914 149,073
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED MAY 2* TO
DECEMBER 31, DECEMBER 31,
1995 1994
------------ ------------
<S> <C> <C>
GROWTH INVESTORS FUND
Issued ......................................... 79,498 38,979
Redeemed ....................................... 23,679 1,546
CONSERVATIVE INVESTORS FUND
Issued ......................................... 113,203 52,576
Redeemed ....................................... 87,995 2,694
GROWTH & INCOME FUND
Issued ......................................... 49,981 110,584
Redeemed ....................................... 20,466 6,069
</TABLE>
- -----------
* Date on which participant contributions were first allocated to the Fund.
FSA-8
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT NO. 301
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
5. Accumulation Unit Values
Shown below is unit value information for the periods shown.
<TABLE>
<CAPTION>
MONEY MARKET FUND
--------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning
of year ................ $23.32 $22.48 $21.93 $21.29 $20.17 $18.73 $17.23 $16.14 $15.26 $14.41
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of year . $24.55 $23.32 $22.48 $21.93 $21.29 $20.17 $18.73 $17.23 $16.14 $15.26
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units
outstanding, end of year
(000's) ................ 850 1,028 1,035 1,301 1,528 1,919 1,708 1,379 1,353 1,092
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCK FUND
--------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Unit value, beginning
of year ................ $64.13 $65.89 $52.97 $51.55 $35.87 $40.94 $33.04 $29.88 $28.00 $24.15
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of year . $84.56 $64.13 $65.89 $52.97 $51.55 $35.87 $40.94 $33.04 $29.88 $28.00
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units
outstanding, end of year
(000's) ................ 673 694 715 736 790 930 963 978 1,008 983
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITES FUND
--------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Unit value, beginning
of year ................ $36.13 $37.77 $34.34 $32.73 $28.79 $27.19 $23.63 $22.41 $21.86 $18.45
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of year . $40.82 $36.13 $37.77 $34.34 $32.73 $28.79 $27.19 $23.63 $22.41 $21.86
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units
outstanding, end of year
(000's) ................ 153 166 188 184 177 242 223 196 176 179
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
BALANCED FUND
- ----------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning
of year ................ $47.03 $51.38 $45.92 $47.50 $33.76 $33.91 $27.04 $23.88 $24.57 $21.80
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of year . $56.07 $47.03 $51.38 $45.92 $47.50 $33.76 $33.91 $27.04 $23.88 $24.57
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units
outstanding, end of year
(000's) ................ 617 681 756 827 949 1,217 1,260 1,220 1,258 1,116
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
FSA-9
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT NO. 301
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
HIGH YIELD FUND
---------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------ JUNE 2, 1987* TO
1995 1994 1993 1992 1991 1990 1989 1988 DECEMBER 31, 1987
---- ---- ---- ---- ---- ---- ---- ---- -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
year..................... $18.18 $18.84 $15.40 $13.84 $11.11 $11.67 $11.60 $10.41 $10.01
====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of year... $21.67 $18.18 $18.84 $15.40 $13.84 $11.11 $11.67 $11.60 $10.41
====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units
outstanding, end of year
(000's).................. 87 80 78 53 27 16 18 22 7
====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE STOCK FUND
---------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------ JUNE 2, 1987* TO
1995 1994 1993 1992 1991 1990 1989 1988 DECEMBER 31, 1987
---- ---- ---- ---- ---- ---- ---- ---- -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
year...................... $24.95 $26.14 $22.54 $23.43 $13.34 $12.47 $ 8.70 $8.59 $10.13
====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of year.... $32.67 $24.95 $26.14 $22.54 $23.43 $13.34 $12.47 $8.70 $ 8.59
====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units
outstanding, end of year
(000's)................... 190 141 125 156 125 48 27 9 16
====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
- ------------
* Date on which participant contributions were first allocated to the Fund.
FSA-10
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT NO. 301
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
GLOBAL FUND
---------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------ JUNE 2, 1987* TO
1995 1994 1993 1992 1991 1990 1989 1988 DECEMBER 31, 1987
---- ---- ---- ---- ---- ---- ---- ---- -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
year ..................... $19.25 $18.40 $14.01 $14.20 $11.23 $11.97 $9.58 $ 8.58 $10.01
====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of year ... $22.76 $19.25 $18.40 $14.01 $14.20 $11.23 $11.97 $ 9.58 $ 8.58
====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units
outstanding end of year
(000's) .................. 201 195 153 55 42 32 19 12 7
====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
GROWTH INVESTORS FUND
---------------------------------------
YEAR ENDED MAY 2, 1994* to
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C>
Unit value, beginning of year .......................... $ 9.79 $10.00
====== ======
Unit value, end of year ................................ $12.23 $ 9.79
====== ======
Number of units outstanding, end of year (000's)........ 94 37
====== ======
CONSERVATIVE INVESTORS FUND
---------------------------------------
YEAR ENDED MAY 2, 1994* TO
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C>
Unit value, beginning of year .......................... $ 9.92 $10.00
====== ======
Unit value, end of year ................................ $11.79 $ 9.92
====== ======
Number of units outstanding, end of year (000's)........ 75 50
====== ======
</TABLE>
<TABLE>
<CAPTION>
GROWTH & INCOME FUND
---------------------------------------
YEAR ENDED MAY 2, 1994* TO
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C>
Unit value, beginning of year .......................... $ 9.92 $10.00
====== ======
Unit value, end of year ................................ $12.21 $ 9.92
====== ======
Number of units outstanding, end of year (000's)........ 134 105
====== ======
</TABLE>
- ------------
* Date on which participant contributions were first allocated to the Fund.
FSA-11
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholder of
The Equitable Life Assurance Society of the United States
In our opinion, the accompanying consolidated balance sheets and the related
consolidated statements of earnings, of shareholder's equity and of cash flows
present fairly, in all material respects, the financial position of The
Equitable Life Assurance Society of the United States and its subsidiaries
("Equitable Life") at December 31, 1995 and 1994, and the results of their
operations and their cash flows for each of the three years in the period
ended December 31, 1995, in conformity with generally accepted accounting
principles. These financial statements are the responsibility of Equitable
Life's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
As discussed in Note 2 to the consolidated financial statements, Equitable Life
changed its methods of accounting for loan impairments in 1995, for
postemployment benefits in 1994 and for investment securities in 1993.
PRICE WATERHOUSE LLP
New York, New York
February 7, 1996
F-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturities:
Available for sale, at estimated fair value............................. $ 15,899.9 $ 7,586.0
Held to maturity, at amortized cost..................................... - 5,223.0
Mortgage loans on real estate............................................. 3,638.3 4,018.0
Equity real estate........................................................ 3,916.2 4,446.4
Policy loans.............................................................. 1,976.4 1,731.2
Other equity investments.................................................. 621.1 678.5
Investment in and loans to affiliates..................................... 636.6 560.2
Other invested assets..................................................... 706.1 489.3
----------------- -----------------
Total investments..................................................... 27,394.6 24,732.6
Cash and cash equivalents................................................... 774.7 693.6
Deferred policy acquisition costs........................................... 3,083.3 3,221.1
Amounts due from discontinued GIC Segment................................... 2,097.1 2,108.6
Other assets................................................................ 2,713.1 2,078.6
Closed Block assets......................................................... 8,612.8 8,105.5
Separate Accounts assets.................................................... 24,566.6 20,469.5
----------------- -----------------
TOTAL ASSETS................................................................ $ 69,242.2 $ 61,409.5
================= =================
LIABILITIES
Policyholders' account balances............................................. $ 21,752.6 $ 21,238.0
Future policy benefits and other policyholders' liabilities................. 4,171.8 3,840.8
Short-term and long-term debt............................................... 1,899.3 1,337.4
Other liabilities........................................................... 3,379.5 2,300.1
Closed Block liabilities.................................................... 9,507.2 9,069.5
Separate Accounts liabilities............................................... 24,531.0 20,429.3
----------------- -----------------
Total liabilities..................................................... 65,241.4 58,215.1
----------------- -----------------
Commitments and contingencies (Notes 10, 12, 13, 14 and 15)
SHAREHOLDER'S EQUITY
Common stock, $1.25 par value 2.0 million shares authorized, issued
and outstanding........................................................... 2.5 2.5
Capital in excess of par value.............................................. 2,913.6 2,913.6
Retained earnings........................................................... 781.6 484.0
Net unrealized investment gains (losses).................................... 338.2 (203.0)
Minimum pension liability................................................... (35.1) (2.7)
----------------- -----------------
Total shareholder's equity............................................ 4,000.8 3,194.4
----------------- -----------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY.................................. $ 69,242.2 $ 61,409.5
================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF EARNINGS
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
REVENUES
Universal life and investment-type product policy fee
income...................................................... $ 771.0 $ 715.0 $ 644.5
Premiums...................................................... 606.8 625.6 599.1
Net investment income......................................... 2,127.7 2,030.9 2,599.3
Investment gains, net......................................... 5.3 91.8 533.4
Commissions, fees and other income............................ 886.8 845.4 1,717.2
Contribution from the Closed Block............................ 124.4 151.0 128.3
----------------- ----------------- -----------------
Total revenues.......................................... 4,522.0 4,459.7 6,221.8
----------------- ----------------- -----------------
BENEFITS AND OTHER DEDUCTIONS
Interest credited to policyholders' account balances.......... 1,244.2 1,201.3 1,330.0
Policyholders' benefits....................................... 1,011.3 920.6 1,003.9
Other operating costs and expenses............................ 1,856.5 1,943.1 3,584.2
----------------- ----------------- -----------------
Total benefits and other deductions..................... 4,112.0 4,065.0 5,918.1
----------------- ----------------- -----------------
Earnings before Federal income taxes and cumulative
effect of accounting change................................. 410.0 394.7 303.7
Federal income taxes.......................................... 112.4 101.2 91.3
----------------- ----------------- -----------------
Earnings before cumulative effect of accounting change........ 297.6 293.5 212.4
Cumulative effect of accounting change, net of Federal
income taxes................................................ - (27.1) -
----------------- ----------------- -----------------
Net Earnings.................................................. $ 297.6 $ 266.4 $ 212.4
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Common stock, at par value, beginning of year................. $ 2.5 $ 2.5 $ 2.0
Increase in par value......................................... - - .5
----------------- ----------------- -----------------
Common stock, at par value, end of year....................... 2.5 2.5 2.5
----------------- ----------------- -----------------
Capital in excess of par value, beginning of year............. 2,913.6 2,613.6 2,273.9
Additional capital in excess of par value..................... - 300.0 340.2
Increase in par value......................................... - - (.5)
----------------- ----------------- -----------------
Capital in excess of par value, end of year................... 2,913.6 2,913.6 2,613.6
----------------- ----------------- -----------------
Retained earnings, beginning of year.......................... 484.0 217.6 5.2
Net earnings.................................................. 297.6 266.4 212.4
----------------- ----------------- -----------------
Retained earnings, end of year................................ 781.6 484.0 217.6
----------------- ----------------- -----------------
Net unrealized investment (losses) gains, beginning of year... (203.0) 131.9 78.8
Change in unrealized investment gains (losses)................ 541.2 (334.9) (9.5)
Effect of adopting new accounting standard.................... - - 62.6
----------------- ----------------- -----------------
Net unrealized investment gains (losses), end of year......... 338.2 (203.0) 131.9
----------------- ----------------- -----------------
Minimum pension liability, beginning of year.................. (2.7) (15.0) -
Change in minimum pension liability........................... (32.4) 12.3 (15.0)
----------------- ----------------- -----------------
Minimum pension liability, end of year........................ (35.1) (2.7) (15.0)
----------------- ----------------- -----------------
TOTAL SHAREHOLDER'S EQUITY, END OF YEAR....................... $ 4,000.8 $ 3,194.4 $ 2,950.6
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Net earnings.................................................. $ 297.6 $ 266.4 $ 212.4
Adjustments to reconcile net earnings to net cash
provided (used) by operating activities:
Net change in trading activities and broker-dealer
related receivables/payables.............................. - - (4,177.8)
Increase in matched resale agreements....................... - - (2,900.5)
Increase in matched repurchase agreements................... - - 2,900.5
Investment gains, net of dealer and trading gains........... (5.3) (91.8) (160.8)
Change in amounts due from discontinued GIC Segment......... - 57.3 47.8
General Account policy charges.............................. (769.7) (711.9) (623.4)
Interest credited to policyholders' account balances........ 1,244.2 1,201.3 1,330.0
Changes in Closed Block assets and liabilities, net......... (69.6) (95.1) (73.3)
Other, net.................................................. 627.1 7.8 (416.1)
----------------- ----------------- -----------------
Net cash provided (used) by operating activities.............. 1,324.3 634.0 (3,861.2)
----------------- ----------------- -----------------
Cash flows from investing activities:
Maturities and repayments................................... 1,863.1 2,319.7 3,479.6
Sales....................................................... 8,901.4 5,661.9 7,399.2
Return of capital from joint ventures and limited
partnerships.............................................. 65.2 39.0 119.5
Purchases................................................... (11,675.5) (7,417.6) (11,184.2)
Decrease (increase) in loans to discontinued GIC Segment.... 1,226.9 (40.0) (880.0)
Cash received on sale of 61% interest in DLJ................ - - 346.7
Other, net.................................................. (625.5) (371.1) (317.0)
----------------- ----------------- -----------------
Net cash (used) provided by investing activities.............. (244.4) 191.9 (1,036.2)
----------------- ----------------- -----------------
Cash flows from financing activities:
Policyholders' account balances:
Deposits.................................................. 2,414.9 2,082.7 2,410.7
Withdrawals............................................... (2,692.7) (2,887.4) (2,433.5)
Net (decrease) increase in short-term financings............ (16.4) (173.0) 4,717.2
Additions to long-term debt................................. 599.7 51.8 97.7
Repayments of long-term debt................................ (40.7) (199.8) (64.4)
Proceeds from issuance of Alliance units.................... - 100.0 -
Payment of obligation to fund accumulated deficit of
discontinued GIC Segment.................................. (1,215.4) - -
Capital contribution from the Holding Company............... - 300.0 -
Other, net.................................................. (48.2) - -
----------------- ----------------- -----------------
Net cash (used) provided by financing activities.............. (998.8) (725.7) 4,727.7
----------------- ----------------- -----------------
Change in cash and cash equivalents........................... 81.1 100.2 (169.7)
Cash and cash equivalents, beginning of year.................. 693.6 593.4 763.1
----------------- ----------------- -----------------
Cash and Cash Equivalents, End of Year........................ $ 774.7 $ 693.6 $ 593.4
================= ================= =================
Supplemental cash flow information
Interest Paid............................................... $ 89.6 $ 34.9 $ 1,437.2
================= ================= =================
Income Taxes (Refunded) Paid................................ $ (82.7) $ 49.2 $ 41.0
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1) ORGANIZATION
The Equitable Life Assurance Society of the United States ("Equitable
Life") converted to a stock life insurance company on July 22, 1992
and became a wholly owned subsidiary of The Equitable Companies
Incorporated (the "Holding Company"). Equitable Life's insurance
business, which is comprised of an Individual Insurance and Annuities
segment and a Group Pension segment is conducted principally by
Equitable Life and its wholly owned life insurance subsidiary,
Equitable Variable Life Insurance Company ("EVLICO"). Equitable Life's
investment management business, which comprises the Investment
Services segment, is conducted principally by Alliance Capital
Management L.P. ("Alliance"), Equitable Real Estate Investment
Management, Inc. ("EREIM") and Donaldson, Lufkin and Jenrette, Inc.
("DLJ"), an investment banking and brokerage affiliate. AXA, a French
holding company for an international group of insurance and related
financial services companies is the Holding Company's largest
shareholder, owning approximately 60.6% at December 31, 1995 (63.5%
assuming conversion of Series E Convertible Preferred Stock held by
AXA and 54.2% if all securities convertible into, or options on,
common stock were to be converted or exercised).
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
-----------------------------------------------------
The accompanying consolidated financial statements are prepared in
conformity with generally accepted accounting principles ("GAAP").
The accompanying consolidated financial statements include the accounts
of Equitable Life and its wholly owned life insurance subsidiaries
(collectively, the "Insurance Group"); non-insurance subsidiaries,
principally Alliance, an investment advisory subsidiary and EREIM, a
real estate investment management subsidiary; and those partnerships
and joint ventures in which the Company has control and a majority
economic interest (collectively, including its consolidated
subsidiaries, the "Company"). The consolidated statement of earnings
and cash flow for the year ended December 31, 1993 include the results
of operations and cash flow of DLJ, an investment banking and
brokerage affiliate, on a consolidated basis through December 15, 1993
(see Note 20). Subsequent to that date, DLJ is accounted for on the
equity basis. The Closed Block assets and liabilities and results of
operations are presented in the consolidated financial statements as
single line items (see Note 6). Unless specifically stated, all
disclosures contained herein supporting the consolidated financial
statements exclude the Closed Block related amounts.
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those
estimates.
All significant intercompany transactions and balances have been
eliminated in consolidation other than intercompany transactions and
balances with the Closed Block and the discontinued Guaranteed
Interest Contract ("GIC") Segment (see Note 7).
Certain reclassifications have been made in the amounts presented for
prior periods to conform these periods with the 1995 presentation.
F-6
<PAGE>
Closed Block
------------
As of July 22, 1992, Equitable Life established the Closed Block for
the benefit of certain classes of individual participating policies
for which Equitable Life had a dividend scale payable in 1991 and
which were in force on that date. Assets were allocated to the Closed
Block in an amount which, together with anticipated revenues from
policies included in the Closed Block, was reasonably expected to be
sufficient to support such business, including provision for payment
of claims, certain expenses and taxes, and for continuation of
dividend scales payable in 1991, assuming the experience underlying
such scales continues.
Assets allocated to the Closed Block inure solely to the benefit of
the holders of policies included in the Closed Block and will not
revert to the benefit of the Holding Company. The plan of
demutualization prohibits the reallocation, transfer, borrowing or
lending of assets between the Closed Block and other portions of
Equitable Life's General Account, any of its Separate Accounts or to
any affiliate of Equitable Life without the approval of the New York
Superintendent of Insurance. Closed Block assets and liabilities are
carried on the same basis as similar assets and liabilities held in
the General Account.
The excess of Closed Block liabilities over Closed Block assets
represents the expected future post-tax contribution from the Closed
Block which would be recognized in income over the period the policies
and contracts in the Closed Block remain in force. If the actual
contribution from the Closed Block in any given period equals or
exceeds the expected contribution for such period as determined at the
establishment of the Closed Block, the expected contribution would be
recognized in income for that period. Any excess of the actual
contribution over the expected contribution would also be recognized
in income to the extent that the aggregate expected contribution for
all prior periods exceeded the aggregate actual contribution. Any
remaining excess of actual contribution over expected contributions
would be accrued in the Closed Block as a liability for future
dividends to be paid to the Closed Block policyholders. If, over the
period the policies and contracts in the Closed Block remain in force,
the actual contribution from the Closed Block is less than the
expected contribution from the Closed Block, only such actual
contribution would be recognized in income.
Discontinued Operations
-----------------------
In 1991, the Company's management adopted a plan to discontinue the
business operations of the GIC Segment, consisting of the Guaranteed
Interest Contract and Group Non-Participating Wind-Up Annuities lines
of business. The Company established a pre-tax provision for the
estimated future losses of the GIC line of business and a premium
deficiency reserve for the Group Non-Participating Wind-Up Annuities.
Subsequent losses incurred have been charged to the allowance for
future losses and the premium deficiency reserve. Total allowances are
based upon management's best judgment and there is no assurance that
the ultimate losses will not differ.
Accounting Changes
------------------
In the first quarter of 1995, the Company adopted Statement of
Financial Accounting Standards ("SFAS") No. 114, "Accounting by
Creditors for Impairment of a Loan". This statement applies to all
loans, including loans restructured in a troubled debt restructuring
involving a modification of terms. This statement addresses the
accounting for impairment of a loan by specifying how allowances for
credit losses should be determined. Impaired loans within the scope of
this statement are measured based on the present value of expected
future cash flows discounted at the loan's effective interest rate, at
the loan's observable market price or the fair value of the collateral
if the loan is collateral dependent. The Company provides for
impairment of loans through an allowance for possible losses. The
adoption of this statement did not have a material effect on the level
of these allowances or on the Company's consolidated statements of
earnings and shareholder's equity.
F-7
<PAGE>
In the fourth quarter of 1994 (effective as of January 1, 1994), the
Company adopted SFAS No. 112, "Employers' Accounting for
Postemployment Benefits," which required employers to recognize the
obligation to provide postemployment benefits. Implementation of this
statement resulted in a charge for the cumulative effect of accounting
change of $27.1 million, net of a Federal income tax benefit of $14.6
million.
At December 31, 1993, the Company adopted SFAS No. 115, "Accounting
for Certain Investments in Debt and Equity Securities," which expanded
the use of fair value accounting for those securities that a company
does not have positive intent and ability to hold to maturity.
Implementation of this statement increased consolidated shareholder's
equity by $62.6 million, net of deferred policy acquisition costs,
amounts attributable to participating group annuity contracts and
deferred Federal income tax. Beginning coincident with issuance of
SFAS No. 115 implementation guidance in November 1995, the Financial
Accounting Standards Board ("FASB") permitted companies a one-time
opportunity, through December 31, 1995, to reassess the
appropriateness of the classification of all securities held at that
time. On December 1, 1995, the Company transferred $4,794.9 million of
securities classified as held to maturity to the available for sale
portfolio. As a result consolidated shareholder's equity increased by
$126.2 million, net of deferred policy acquisition costs, amounts
attributable to participating group annuity contracts and deferred
Federal income tax.
New Accounting Pronouncements
-----------------------------
In January 1995, the FASB issued SFAS No. 120, "Accounting and
Reporting by Mutual Life Insurance Enterprises and by Insurance
Enterprises for Certain Long-Duration Participating Contracts," which
permits, but does not require, stock life insurance companies with
participating life contracts to account for those contracts in
accordance with Statement of Position No. 95-1, "Accounting for
Certain Insurance Activities of Mutual Life Insurance Enterprises".
The Company has decided to retain the existing methodology to account
for traditional participating policies and, therefore, will not adopt
this statement.
In March 1995, the FASB issued SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of," which requires that long-lived assets and certain
identifiable intangibles be reviewed for impairment whenever events or
changes in circumstances indicate the carrying amount of such assets
may not be recoverable. The Company will implement this statement as
of January 1, 1996. The cumulative effect of this accounting change
will be a charge of $23.4 million, net of a Federal income tax benefit
of $12.1 million, due to the writedown to fair value of building
improvements relating to facilities being vacated beginning in 1996.
The Company currently provides allowances for possible losses for
other assets under the scope of this statement. Management has not yet
determined the impact of this statement on assets to be held and used.
In May 1995, the FASB issued SFAS No. 122, "Accounting for Mortgage
Servicing Rights," which requires a mortgage banking enterprise to
recognize rights to service mortgage loans for others as separate
assets however those servicing rights are acquired. It further
requires capitalized mortgage servicing rights be assessed for
impairment based on the fair value of those rights. The Company will
implement this statement as of January 1, 1996. Implementation of this
statement will not have a material effect on the Company's
consolidated financial statements.
In October 1995, the FASB issued SFAS No. 123, "Accounting for
Stock-Based Compensation". This statement defines a fair value based
method of accounting for stock-based employee compensation plans while
continuing to allow an entity to measure compensation cost for such
plans using the intrinsic value based method of accounting. Management
has decided to retain the current compensation cost methodology
prescribed by Accounting Principles Board Opinion No. 25, "Accounting
for Stock Issued to Employees".
F-8
<PAGE>
Valuation of Investments
------------------------
Fixed maturities, which the Company has both the ability and the
intent to hold to maturity, are stated principally at amortized cost.
Fixed maturities identified as available for sale are reported at
estimated fair value. The amortized cost of fixed maturities is
adjusted for impairments in value deemed to be other than temporary.
Mortgage loans on real estate are stated at unpaid principal balances,
net of unamortized discounts and valuation allowances. Effective with
the adoption of SFAS No. 114 on January 1, 1995, the valuation
allowances are based on the present value of expected future cash
flows discounted at the loan's original effective interest rate or the
collateral value if the loan is collateral dependent. However, if
foreclosure is or becomes probable, the measurement method used is
collateral value. Prior to the adoption of SFAS No. 114, the valuation
allowances were based on losses expected by management to be realized
on transfers of mortgage loans to real estate (upon foreclosure or
in-substance foreclosure), on the disposition or settlement of
mortgage loans and on mortgage loans management believed may not be
collectible in full. In establishing valuation allowances, management
previously considered, among other things the estimated fair value of
the underlying collateral.
Real estate, including real estate acquired in satisfaction of debt,
is stated at depreciated cost less valuation allowances. At the date
of foreclosure (including in-substance foreclosure), real estate
acquired in satisfaction of debt is valued at estimated fair value.
Valuation allowances on real estate held for the production of income
are computed using the forecasted cash flows of the respective
properties discounted at a rate equal to the Company's cost of funds;
valuation allowances on real estate available for sale are computed
using the lower of current estimated fair value, net of disposition
costs, or depreciated cost.
Policy loans are stated at unpaid principal balances.
Partnerships and joint venture interests in which the Company does not
have control and a majority economic interest are reported on the
equity basis of accounting and are included either with equity real
estate or other equity investments, as appropriate.
Common stocks are carried at estimated fair value and are included in
other equity investments.
Short-term investments are stated at amortized cost which approximates
fair value and are included with other invested assets.
Cash and cash equivalents includes cash on hand, amounts due from
banks and highly liquid debt instruments purchased with an original
maturity of three months or less.
All securities are recorded in the consolidated financial statements
on a trade date basis.
Investment Results and Unrealized Investment Gains (Losses)
-----------------------------------------------------------
Net investment income and realized investment gains and losses
(collectively, "investment results") related to certain participating
group annuity contracts are passed through to the contractholders as
interest credited to policyholders' account balances.
Realized investment gains and losses are determined by specific
identification and are presented as a component of revenue. Valuation
allowances are netted against the asset categories to which they apply
and changes in the valuation allowances are included in investment
gains or losses.
Unrealized investment gains and losses on fixed maturities available
for sale and equity securities held by the Company are accounted for
as a separate component of shareholder's equity, net of related
deferred Federal income taxes, amounts attributable to the
discontinued GIC Segment, Closed Block, participating group annuity
contracts and deferred policy acquisition costs related to universal
life and investment-type products.
F-9
<PAGE>
Recognition of Insurance Income and Related Expenses
----------------------------------------------------
Premiums from universal life and investment-type contracts are
reported as deposits to policyholders' account balances. Revenues from
these contracts consist of amounts assessed during the period against
policyholders' account balances for mortality charges, policy
administration charges and surrender charges. Policy benefits and
claims that are charged to expense include benefit claims incurred in
the period in excess of related policyholders' account balances.
Premiums from traditional life and annuity policies with life
contingencies generally are recognized as income when due. Benefits
and expenses are matched with such income so as to result in the
recognition of profits over the life of the contracts. This match is
accomplished by means of the provision for liabilities for future
policy benefits and the deferral and subsequent amortization of policy
acquisition costs.
For contracts with a single premium or a limited number of premium
payments due over a significantly shorter period than the total period
over which benefits are provided, premiums are recorded as income when
due with any excess profit deferred and recognized in income in a
constant relationship to insurance in force or, for annuities, the
amount of expected future benefit payments.
Premiums from individual health contracts are recognized as income
over the period to which the premiums relate in proportion to the
amount of insurance protection provided.
Deferred Policy Acquisition Costs
---------------------------------
The costs of acquiring new business, principally commissions,
underwriting, agency and policy issue expenses, all of which vary with
and are primarily related to the production of new business, are
deferred. Deferred policy acquisition costs are subject to
recoverability testing at the time of policy issue and loss
recognition testing at the end of each accounting period.
For universal life products and investment-type products, deferred
policy acquisition costs are amortized over the expected average life
of the contracts (periods ranging from 15 to 35 years and 5 to 17
years, respectively) as a constant percentage of estimated gross
profits arising principally from investment results, mortality and
expense margins and surrender charges based on historical and
anticipated future experience, updated at the end of each accounting
period. The effect on the amortization of deferred policy acquisition
costs of revisions to estimated gross profits is reflected in earnings
in the period such estimated gross profits are revised. The effect on
the deferred policy acquisition cost asset that would result from
realization of unrealized gains (losses) is recognized with an offset
to unrealized gains (losses) in consolidated shareholder's equity as
of the balance sheet date.
For traditional life and annuity policies with life contingencies,
deferred policy acquisition costs are amortized in proportion to
anticipated premiums. Assumptions as to anticipated premiums are
estimated at the date of policy issue and are consistently applied
during the life of the contracts. Deviations from estimated experience
are reflected in earnings in the period such deviations occur. For
these contracts, the amortization periods generally are for the
estimated life of the policy.
For individual health benefit insurance, deferred policy acquisition
costs are amortized over the expected average life of the contracts
(10 years for major medical policies and 20 years for disability
income products) in proportion to anticipated premium revenue at time
of issue.
Policyholders' Account Balances and Future Policy Benefits
----------------------------------------------------------
Policyholders' account balances for universal life and investment-type
contracts are equal to the policy account values. The policy account
values represent an accumulation of gross premium payments plus
credited interest less expense and mortality charges and withdrawals.
F-10
<PAGE>
For traditional life insurance policies, future policy benefit and
dividend liabilities are estimated using a net level premium method on
the basis of actuarial assumptions as to mortality, persistency and
interest established at policy issue. Assumptions established at
policy issue as to mortality and persistency are based on the
Insurance Group's experience which, together with interest and expense
assumptions, provide a margin for adverse deviation. When the
liabilities for future policy benefits plus the present value of
expected future gross premiums for a product are insufficient to
provide for expected future policy benefits and expenses for that
product, deferred policy acquisition costs are written off and
thereafter, if required, a premium deficiency reserve is established
by a charge to earnings. Benefit liabilities for traditional annuities
during the accumulation period are equal to accumulated
contractholders' fund balances and after annuitization are equal to
the present value of expected future payments. Interest rates used in
establishing such liabilities range from 2.25% to 11.5% for life
insurance liabilities and from 2.25% to 13.5% for annuity liabilities.
Individual health benefit liabilities for active lives are estimated
using the net level premium method, and assumptions as to future
morbidity, withdrawals and interest which provide a margin for adverse
deviation. Benefit liabilities for disabled lives are estimated using
the present value of benefits method and experience assumptions as to
claim terminations, expenses and interest.
Claim reserves and associated liabilities for individual disability
income and major medical policies were $639.6 million, $570.6 million
at December 31, 1995 and 1994, respectively. Incurred benefits
(benefits paid plus changes in claim reserves) and benefits paid for
individual disability income and major medical policies are summarized
as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Incurred benefits related to current year.......... $ 176.0 $ 188.6 $ 193.1
Incurred benefits related to prior years........... 67.8 28.7 106.1
----------------- ---------------- -----------------
Total Incurred Benefits............................ $ 243.8 $ 217.3 $ 299.2
================= ================ =================
Benefits paid related to current year.............. $ 37.0 $ 43.7 $ 48.9
Benefits paid related to prior years............... 137.8 132.3 123.1
----------------- ---------------- -----------------
Total Benefits Paid................................ $ 174.8 $ 176.0 $ 172.0
================= ================ =================
</TABLE>
The amount of policyholders' dividends to be paid (including those on
policies included in the Closed Block) is determined annually by
Equitable Life's Board of Directors. The aggregate amount of
policyholders' dividends is related to actual interest, mortality,
morbidity and expense experience for the year and judgment as to the
appropriate level of statutory surplus to be retained by Equitable
Life.
Equitable Life is subject to limitations on the amount of statutory
profits which can be retained with respect to certain classes of
individual participating policies that were in force on July 22, 1992
which are not included in the Closed Block and with respect to
participating policies issued subsequent to July 22, 1992. Excess
statutory profits, if any, will be distributed over time to such
policyholders and will not be available to Equitable Life's
shareholder. Earnings in excess of limitations are accrued as
policyholders' dividends.
At December 31, 1995, participating policies including those in the
Closed Block represent approximately 27.2% ($58.4 billion) of directly
written life insurance in force, net of amounts ceded. Participating
policies represent primarily all of the premium income as reflected in
the consolidated statements of earnings and in the results of the
Closed Block.
F-11
<PAGE>
Federal Income Taxes
--------------------
Equitable Life and its life insurance and non-life insurance
subsidiaries file a consolidated Federal income tax return with the
Holding Company and its non-life insurance subsidiaries. Current
Federal income taxes are charged or credited to operations based upon
amounts estimated to be payable or recoverable as a result of taxable
operations for the current year. Deferred income tax assets and
liabilities are recognized based on the difference between financial
statement carrying amounts and income tax bases of assets and
liabilities using enacted income tax rates and laws.
Separate Accounts
-----------------
Separate Accounts are established in conformity with the New York
State Insurance Law and generally are not chargeable with liabilities
that arise from any other business of the Insurance Group. Separate
Accounts assets are subject to General Account claims only to the
extent the value of such assets exceeds the Separate Accounts
liabilities.
Assets and liabilities of the Separate Accounts, representing net
deposits and accumulated net investment earnings less fees, held
primarily for the benefit of contractholders, and for which the
Insurance Group does not bear the investment risk, are shown as
separate captions in the consolidated balance sheets. The Insurance
Group bears the investment risk on assets held in one Separate
Account, therefore, such assets are carried on the same basis as
similar assets held in the General Account portfolio. Assets held in
the other Separate Accounts are carried at quoted market values or,
where quoted values are not available, at estimated fair values as
determined by the Insurance Group.
The investment results of Separate Accounts on which the Insurance
Group does not bear the investment risk are reflected directly in
Separate Accounts liabilities. For the years ended December 31, 1995,
1994 and 1993, investment results of such Separate Accounts were
$1,956.3 million, $676.3 million and $1,676.5 million, respectively.
Deposits to all Separate Accounts are reported as increases in
Separate Accounts liabilities and are not reported in revenues.
Mortality, policy administration and surrender charges on all Separate
Accounts are included in revenues.
F-12
<PAGE>
3) INVESTMENTS
The following tables provide additional information relating to fixed
maturities and equity securities:
<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED ESTIMATED
COST GAINS LOSSES FAIR VALUE
----------------- ----------------- ---------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
DECEMBER 31, 1995
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 10,910.7 $ 617.6 $ 118.1 $ 11,410.2
Mortgage-backed.................... 1,838.0 31.2 1.2 1,868.0
U.S. Treasury securities and
U.S. government and
agency securities................ 2,257.0 77.8 4.1 2,330.7
States and political subdivisions.. 45.7 5.2 - 50.9
Foreign governments................ 124.5 11.0 .2 135.3
Redeemable preferred stock......... 108.1 5.3 8.6 104.8
----------------- ----------------- ---------------- ---------------
Total Available for Sale............... $ 15,284.0 $ 748.1 $ 132.2 $ 15,899.9
================= ================= ================ ===============
Equity Securities:
Common stock......................... $ 97.3 $ 49.1 $ 18.0 $ 128.4
================= ================= ================ ===============
December 31, 1994
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 5,663.4 $ 34.6 $ 368.0 $ 5,330.0
Mortgage-backed.................... 686.0 2.9 44.8 644.1
U.S. Treasury securities and
U.S. government and
agency securities................ 1,519.3 6.7 71.9 1,454.1
States and political subdivisions.. 23.4 .1 .7 22.8
Foreign governments................ 43.8 .3 4.2 39.9
Redeemable preferred stock......... 108.4 .4 13.7 95.1
----------------- ----------------- ---------------- ---------------
Total Available for Sale............... $ 8,044.3 $ 45.0 $ 503.3 $ 7,586.0
================= ================= ================ ===============
Held to Maturity:
Corporate.......................... $ 4,661.0 $ 67.9 $ 233.8 $ 4,495.1
U.S. Treasury securities and
U.S. government and
agency securities................ 428.9 4.6 44.2 389.3
States and political subdivisions.. 63.4 .9 3.7 60.6
Foreign governments................ 69.7 4.2 2.0 71.9
================= ================= ================ ===============
Total Held to Maturity................. $ 5,223.0 $ 77.6 $ 283.7 $ 5,016.9
================= ================= ================ ===============
Equity Securities:
Common stock......................... $ 126.4 $ 31.2 $ 23.5 $ 134.1
================= ================= ================ ===============
</TABLE>
F-13
<PAGE>
For publicly traded fixed maturities and equity securities, estimated
fair value is determined using quoted market prices. For fixed
maturities without a readily ascertainable market value, the Company
has determined an estimated fair value using a discounted cash flow
approach, including provisions for credit risk, generally based upon
the assumption that such securities will be held to maturity.
Estimated fair value for equity securities, substantially all of which
do not have a readily ascertainable market value, has been determined
by the Company. Such estimated fair values do not necessarily
represent the values for which these securities could have been sold
at the dates of the consolidated balance sheets. At December 31, 1995
and 1994, securities without a readily ascertainable market value
having an amortized cost of $3,748.9 million and $3,980.4 million,
respectively, had estimated fair values of $3,981.8 million and
$3,858.7 million, respectively.
The contractual maturity of bonds at December 31, 1995 is shown below:
<TABLE>
<CAPTION>
AVAILABLE FOR SALE
------------------------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Due in one year or less................................................ $ 357.9 $ 360.0
Due in years two through five.......................................... 3,773.1 3,847.1
Due in years six through ten........................................... 4,709.8 4,821.8
Due after ten years.................................................... 4,497.1 4,898.2
Mortgage-backed securities............................................. 1,838.0 1,868.0
---------------- -----------------
Total.................................................................. $ 15,175.9 $ 15,795.1
================ =================
</TABLE>
Bonds not due at a single maturity date have been included in the
above table in the year of final maturity. Actual maturities will
differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without call or prepayment
penalties.
Investment valuation allowances and changes thereto are shown below:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Balances, beginning of year........................ $ 284.9 $ 355.6 $ 512.0
Additions charged to income........................ 136.0 51.0 92.8
Deductions for writedowns and asset dispositions... (95.6) (121.7) (249.2)
----------------- ---------------- -----------------
Balances, End of Year.............................. $ 325.3 $ 284.9 $ 355.6
================= ================ =================
Balances, end of year comprise:
Mortgage loans on real estate.................... $ 65.5 $ 64.2 $ 144.4
Equity real estate............................... 259.8 220.7 211.2
----------------- ---------------- -----------------
Total.............................................. $ 325.3 $ 284.9 $ 355.6
================= ================ =================
</TABLE>
Deductions for writedowns and asset dispositions for 1993 include an
$87.1 million writedown of fixed maturity investments at December 31,
1993 as a result of adopting a new accounting statement for the
valuation of these investments that requires specific writedowns
instead of valuation allowances.
At December 31, 1995, the carrying values of investments held for the
production of income which were non-income producing for the twelve
months preceding the consolidated balance sheet date were $37.2
million of fixed maturities and $84.7 million of mortgage loans on
real estate.
F-14
<PAGE>
The Insurance Group's fixed maturity investment portfolio includes
corporate high yield securities consisting of public high yield bonds,
redeemable preferred stocks and directly negotiated debt in leveraged
buyout transactions. The Insurance Group seeks to minimize the higher
than normal credit risks associated with such securities by monitoring
the total investments in any single issuer or total investment in a
particular industry group. Certain of these corporate high yield
securities are classified as other than investment grade by the
various rating agencies, i.e., a rating below Baa or National
Association of Insurance Commissioners ("NAIC") designation of 3
(medium grade), 4 or 5 (below investment grade) or 6 (in or near
default). At December 31, 1995, approximately 15.57% of the $15,139.9
million aggregate amortized cost of bonds held by the Insurance Group
were considered to be other than investment grade.
In addition to its holdings of corporate high yield securities, the
Insurance Group is an equity investor in limited partnership interests
which primarily invest in securities considered to be other than
investment grade.
The Company has restructured or modified the terms of certain fixed
maturity investments. The fixed maturity portfolio, based on amortized
cost, includes $15.9 million and $30.5 million at December 31, 1995
and 1994, respectively, of such restructured securities. These amounts
include fixed maturities which are in default as to principal and/or
interest payments, are to be restructured pursuant to commenced
negotiations or where the borrowers went into bankruptcy subsequent to
acquisition (collectively, "problem fixed maturities") of $1.6 million
and $9.7 million as of December 31, 1995 and 1994, respectively. Gross
interest income that would have been recorded in accordance with the
original terms of restructured fixed maturities amounted to $3.0
million, $7.5 million and $11.7 million in 1995, 1994 and 1993,
respectively. Gross interest income on these fixed maturities included
in net investment income aggregated $2.9 million, $6.8 million and
$9.7 million in 1995, 1994 and 1993, respectively.
At December 31, 1995 and 1994, mortgage loans on real estate with
scheduled payments 60 days (90 days for agricultural mortgages) or
more past due or in foreclosure (collectively, "problem mortgage loans
on real estate") had an amortized cost of $87.7 million (2.4% of total
mortgage loans on real estate) and $96.9 million (2.3% of total
mortgage loans on real estate), respectively.
The payment terms of mortgage loans on real estate may from time to
time be restructured or modified. The investment in restructured
mortgage loans on real estate, based on amortized cost, amounted to
$531.5 million and $447.9 million at December 31, 1995 and 1994,
respectively. These amounts include $3.8 million and $1.0 million of
problem mortgage loans on real estate at December 31, 1995 and 1994,
respectively. Gross interest income on restructured mortgage loans on
real estate that would have been recorded in accordance with the
original terms of such loans amounted to $52.1 million, $44.9 million
and $51.8 million in 1995, 1994 and 1993, respectively. Gross interest
income on these loans included in net investment income aggregated
$37.4 million, $32.8 million and $46.0 million in 1995, 1994 and 1993,
respectively.
Impaired mortgage loans (as defined under SFAS No. 114) along with the
related provision for losses were as follows:
<TABLE>
<CAPTION>
December 31, 1995
-------------------
(IN MILLIONS)
<S> <C>
Impaired mortgage loans with provision for losses....................................... $ 310.1
Impaired mortgage loans with no provision for losses.................................... 160.8
-------------------
Recorded investment in impaired mortgage loans.......................................... 470.9
Provision for losses.................................................................... 62.7
-------------------
Net Impaired Mortgage Loans............................................................. $ 408.2
===================
</TABLE>
F-15
<PAGE>
Impaired mortgage loans with no provision for losses are loans where
the fair value of the collateral or the net present value of the loan
equals or exceeds the recorded investment. Interest income earned on
loans where the collateral value is used to measure impairment is
recorded on a cash basis. Interest income on loans where the present
value method is used to measure impairment is accrued on the net
carrying value amount of the loan at the interest rate used to
discount the cash flows. Changes in the present value attributable to
changes in the amount or timing of expected cash flows are reported as
investment gains or losses.
During the year ended December 31, 1995, the Company's average
recorded investment in impaired mortgage loans was $429.0 million.
Interest income recognized on these impaired mortgage loans totaled
$27.9 million for the year ended December 31, 1995, including $13.4
million recognized on a cash basis.
At December 31, 1995, investments owned of any one issuer, including
its affiliates, for which the aggregate carrying values are 10% or
more of total shareholders' equity, were $508.3 million relating to
Trammell Crow and affiliates (including holdings of the Closed Block
and the discontinued GIC Segment). The amount includes restructured
mortgage loans on real estate with an amortized cost of $152.4
million. A $294.0 million commercial loan package which was in
bankruptcy at the beginning of the year was resolved in 1995, with
part of the package reclassified as restructured and the remainder
reclassified as equity real estate.
The Insurance Group's investment in equity real estate is through
direct ownership and through investments in real estate joint
ventures. At December 31, 1995 and 1994, the carrying value of equity
real estate available for sale amounted to $255.5 million and $447.8
million, respectively. For the years ended December 31, 1995, 1994 and
1993, respectively, real estate of $35.3 million, $189.8 million and
$261.8 million was acquired in satisfaction of debt. At December 31,
1995 and 1994, the Company owned $862.7 million and $1,086.9 million,
respectively, of real estate acquired in satisfaction of debt.
Depreciation of real estate is computed using the straight-line method
over the estimated useful lives of the properties, which generally
range from 40 to 50 years. Accumulated depreciation on real estate was
$662.4 million and $703.1 million at December 31, 1995 and 1994,
respectively. Depreciation expense on real estate totaled $121.7
million, $117.0 million and $115.3 million for the years ended
December 31, 1995, 1994 and 1993, respectively.
F-16
<PAGE>
4) JOINT VENTURES AND PARTNERSHIPS
Summarized combined financial information of real estate joint
ventures (38 and 47 individual ventures as of December 31, 1995 and
1994, respectively) and of limited partnership interests accounted for
under the equity method, in which the Company has an investment of
$10.0 million or greater and an equity interest of 10% or greater is
as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
FINANCIAL POSITION
Investments in real estate, at depreciated cost........................ $ 2,684.1 $ 2,786.7
Investments in securities, generally at estimated fair value........... 2,459.8 3,071.2
Cash and cash equivalents.............................................. 489.1 359.8
Other assets........................................................... 270.8 398.7
---------------- -----------------
Total assets........................................................... 5,903.8 6,616.4
---------------- -----------------
Borrowed funds - third party........................................... 1,782.3 1,759.6
Borrowed funds - the Company........................................... 220.5 238.0
Other liabilities...................................................... 593.9 987.7
---------------- -----------------
Total liabilities...................................................... 2,596.7 2,985.3
---------------- -----------------
Partners' Capital...................................................... $ 3,307.1 $ 3,631.1
================ =================
Equity in partners' capital included above............................. $ 902.2 $ 964.2
Equity in limited partnership interests not included above............. 212.8 224.6
Excess (deficit) of equity in partners' capital over investment cost
and equity earnings.................................................. 3.6 (1.8)
Notes receivable from joint venture.................................... 5.3 6.1
---------------- -----------------
Carrying Value......................................................... $ 1,123.9 $ 1,193.1
================ =================
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Revenues of real estate joint ventures............. $ 463.5 $ 537.7 $ 602.7
Revenues of other limited partnership interests.... 242.3 103.4 319.1
Interest expense - third party..................... (135.3) (114.9) (118.8)
Interest expense - the Company..................... (41.0) (36.9) (52.1)
Other expenses..................................... (397.7) (430.9) (531.7)
----------------- ---------------- -----------------
Net Earnings....................................... $ 131.8 $ 58.4 $ 219.2
================= ================ =================
Equity in net earnings included above.............. $ 49.1 $ 18.9 $ 71.6
Equity in net earnings of limited partnerships
interests not included above..................... 44.8 25.3 46.3
Excess of earnings in joint ventures over equity
ownership percentage and amortization of
differences in bases............................. .9 1.8 9.2
Interest on notes receivable....................... .1 - .5
----------------- ---------------- -----------------
Total Equity in Net Earnings....................... $ 94.9 $ 46.0 $ 127.6
================= ================ =================
</TABLE>
F-17
<PAGE>
5) NET INVESTMENT INCOME AND INVESTMENT GAINS (LOSSES)
The sources of net investment income are summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities................................... $ 1,151.0 $ 1,024.5 $ 981.7
Trading account securities......................... - - 709.3
Securities purchased under resale agreements....... - - 533.8
Mortgage loans on real estate...................... 329.0 384.3 457.4
Equity real estate................................. 560.4 561.8 539.1
Other equity investments........................... 76.9 35.7 110.4
Policy loans....................................... 144.4 122.7 117.0
Broker-dealer related receivables.................. - - 292.2
Other investment income............................ 279.7 336.3 304.9
----------------- ---------------- -----------------
Gross investment income.......................... 2,541.4 2,465.3 4,045.8
----------------- ---------------- -----------------
Interest expense to finance short-term trading
instruments...................................... - - 983.4
Other investment expenses.......................... 413.7 434.4 463.1
----------------- ---------------- -----------------
Investment expenses.............................. 413.7 434.4 1,446.5
----------------- ---------------- -----------------
Net Investment Income.............................. $ 2,127.7 $ 2,030.9 $ 2,599.3
================= ================ =================
</TABLE>
Investment gains (losses), net, including changes in the valuation
allowances, are summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities................................... $ 119.9 $ (14.1) $ 123.1
Mortgage loans on real estate...................... (40.2) (43.1) (65.1)
Equity real estate................................. (86.6) 20.6 (18.5)
Other equity investments........................... 12.8 76.0 119.5
Dealer and trading gains........................... - - 372.5
Sales of newly issued Alliance Units............... - 52.4 -
Other.............................................. (.6) - 1.9
----------------- ---------------- -----------------
Investment Gains, Net.............................. $ 5.3 $ 91.8 $ 533.4
================= ================ =================
</TABLE>
Writedowns of fixed maturities amounted to $46.7 million, $30.8
million and $5.4 million for the years ended December 31, 1995, 1994
and 1993, respectively.
For the years ended December 31, 1995 and 1994, respectively, proceeds
received on sales of fixed maturities classified as available for sale
amounted to $8,206.0 million and $5,253.9 million. Gross gains of
$211.4 million and $65.2 million and gross losses of $64.2 million and
$50.8 million, respectively, were realized on these sales. The change
in unrealized investment gains (losses) related to fixed maturities
classified as available for sale for the years ended December 31, 1995
and 1994 amounted to $1,077.2 million and $(742.2) million,
respectively.
Gross gains of $188.5 million and gross losses of $145.0 million were
realized on sales of investments in fixed maturities held for
investment and available for sale for the year ended December 31,
1993.
F-18
<PAGE>
During each of the years ended December 31, 1995 and 1994, one
security classified as held to maturity was sold and during the eleven
months ended November 30, 1995 and the year ended December 31, 1994,
respectively, twelve and six securities so classified were transferred
to the available for sale portfolio. All actions were taken as a
result of a significant deterioration in creditworthiness. The
aggregate amortized cost of the securities sold were $1.0 million and
$19.9 million with a related investment gain of $-0- million and $.8
million recognized in 1995 and 1994, respectively; the aggregate
amortized cost of the securities transferred was $116.0 million and
$42.8 million with gross unrealized investment losses of $3.2 million
and $3.1 million charged to consolidated shareholders' equity for the
eleven months ended November 30, 1995 and the year ended December 31,
1994, respectively. On December 1, 1995, the Company transferred
$4,794.9 million of securities classified as held to maturity to the
available for sale portfolio. As a result, unrealized gains on fixed
maturities increased $307.0 million, offset by deferred policy
acquisition costs of $73.7 million, amounts attributable to
participating group annuity contracts of $39.2 million and deferred
Federal income tax of $67.9 million.
Investment gains from other equity investments for the year ended
December 31, 1993, included $79.9 million generated by DLJ's
involvement in long-term corporate development investments.
For the years ended December 31, 1995, 1994 and 1993, investment
results passed through to certain participating group annuity
contracts as interest credited to policyholders' account balances
amounted to $131.2 million, $175.8 million and $243.2 million,
respectively.
During 1995, Alliance entered into an agreement to acquire the
business of Cursitor-Eaton Asset Management Company and Cursitor
Holdings Limited (collectively, "Cursitor") for approximately $141.5
million consisting of $84.9 million in cash, 1,764,115 of Alliance's
publicly traded units ("Alliance Units"), 6% notes aggregating $21.5
million payable ratably over four years, and substantial additional
consideration which will be determined at a later date. The
transaction, which is expected to be completed during the first
quarter of 1996, is subject to the receipt of consents, regulatory
approvals, and certain other closing conditions, including client
approval of the transfer of Cursitor accounts. Upon completion of this
transaction, the Company's ownership percentage of Alliance will be
reduced.
In 1994, Alliance sold 4.96 million newly issued Alliance Units to
third parties at prevailing market prices. The sales decreased the
Company's ownership of Alliance's Units from 63.2% to 59.2%. In
addition, the Company continues to hold its 1% general partnership
interest in Alliance. The Company recognized an investment gain of
$52.4 million as a result of these transactions.
The Company's ownership interest in Alliance will be further reduced
upon the exercise of options granted to certain Alliance employees. At
December 31, 1995, Alliance had options outstanding to purchase an
aggregate of 4.8 million Alliance Units at a price ranging from
$6.0625 to $22.25 per unit. Options are exercisable at a rate of 20%
on each of the first five anniversary dates from the date of grant.
Net unrealized investment gains (losses), included in the consolidated
balance sheets as a component of equity and the changes for the
corresponding years, are summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year......................... $ (203.0) $ 131.9 $ 78.8
Changes in unrealized investment (losses) gains.... 1,117.7 (823.8) (14.1)
Effect of adopting SFAS No. 115.................... - - 283.9
Changes in unrealized investment (gains)
losses attributable to:
Participating group annuity contracts.......... (78.1) 40.8 (36.2)
Deferred policy acquisition costs.............. (208.4) 269.5 (150.5)
Deferred Federal income taxes.................. (290.0) 178.6 (30.0)
----------------- ---------------- -----------------
Balance, End of Year............................... $ 338.2 $ (203.0) $ 131.9
================= ================ =================
</TABLE>
F-19
<PAGE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Balance, end of year comprises:
Unrealized investment (losses) gains on:
Fixed maturities............................... $ 615.9 $ (461.3) $ 283.9
Other equity investments....................... 31.1 7.7 75.8
Other.......................................... 31.6 14.5 25.0
----------------- ---------------- -----------------
Total........................................ 678.6 (439.1) 384.7
Amounts of unrealized investment (gains)
losses attributable to:
Participating group annuity contracts........ (72.2) 5.9 (34.9)
Deferred policy acquisition costs............ (89.4) 119.0 (150.5)
Deferred Federal income taxes................ (178.8) 111.2 (67.4)
----------------- ---------------- -----------------
Total.............................................. $ 338.2 $ (203.0) $ 131.9
================= ================ =================
</TABLE>
6) CLOSED BLOCK
Summarized financial information of the Closed Block follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets
Fixed Maturities:
Available for sale, at estimated fair value (amortized cost,
$3,662.8 and $1,270.3)........................................... $ 3,896.2 $ 1,197.0
Held to maturity, at amortized cost (estimated fair value of
$1,785.0 in 1994)................................................ - 1,927.8
Mortgage loans on real estate........................................ 1,368.8 1,543.7
Policy loans......................................................... 1,797.2 1,827.9
Cash and other invested assets....................................... 440.9 442.5
Deferred policy acquisition costs.................................... 823.6 878.1
Other assets......................................................... 286.1 288.5
----------------- -----------------
Total Assets......................................................... $ 8,612.8 $ 8,105.5
================= =================
Liabilities
Future policy benefits and policyholders' account balances........... $ 9,346.7 $ 8,965.3
Other liabilities.................................................... 160.5 104.2
----------------- -----------------
Total Liabilities.................................................... $ 9,507.2 $ 9,069.5
================= =================
</TABLE>
F-20
<PAGE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Premiums and other revenue......................... $ 753.4 $ 798.1 $ 860.2
Investment income (net of investment
expenses of $26.7, $19.0 and $17.3).............. 538.9 523.0 526.5
Investment losses, net............................. (20.2) (24.0) (15.0)
----------------- ---------------- -----------------
Total revenues............................... 1,272.1 1,297.1 1,371.7
----------------- ---------------- -----------------
Benefits and Other Deductions
Policyholders' benefits and dividends.............. 1,085.1 1,075.6 1,141.4
Other operating costs and expenses................. 62.6 70.5 102.0
----------------- ---------------- -----------------
Total benefits and other deductions.......... 1,147.7 1,146.1 1,243.4
----------------- ---------------- -----------------
Contribution from the Closed Block................. $ 124.4 $ 151.0 $ 128.3
================= ================ =================
</TABLE>
The fixed maturity portfolio, based on amortized cost, includes $4.3
million and $23.8 million at December 31, 1995 and 1994, respectively,
of restructured securities which includes problem fixed maturities of
$1.9 million and $6.4 million, respectively.
During the eleven months ended November 30, 1995, one security
classified as held to maturity was sold and ten securities classified
as held to maturity were transferred to the available for sale
portfolio. All actions resulted from a significant deterioration in
creditworthiness. The amortized cost of the security sold was $4.2
million. The aggregate amortized cost of the securities transferred
was $81.3 million with gross unrealized investment losses of $.1
million transferred to equity. At December 1, 1995, $1,750.7 million
of securities classified as held to maturity were transferred to the
available for sale portfolio. As a result, unrealized gains of $88.5
million on fixed maturities were recognized and offset by an increase
to the deferred dividend liability. Implementation of SFAS No. 115 for
the valuation of fixed maturities at December 31, 1993 resulted in the
recognition of a deferred dividend liability of $49.6 million.
At December 31, 1995 and 1994, problem mortgage loans on real estate
had an amortized cost of $36.5 million and $27.6 million,
respectively, and mortgage loans on real estate for which the payment
terms have been restructured had an amortized cost of $137.7 million
and $179.2 million, respectively. At December 31, 1995 and 1994, the
restructured mortgage loans on real estate amount included $8.8
million and $.7 million, respectively, of problem mortgage loans on
real estate.
Valuation allowances amounted to $18.4 million and $46.2 million on
mortgage loans on real estate and $4.3 million and $2.6 million on
equity real estate at December 31, 1995 and 1994, respectively.
Writedowns of fixed maturities amounted to $16.8 million and $15.9
million and $1.7 million for the years ended December 31, 1995, 1994
and 1993, respectively.
Many expenses related to Closed Block operations are charged to
operations outside of the Closed Block; accordingly, the contribution
from the Closed Block does not represent the actual profitability of
the Closed Block operations. Operating costs and expenses outside of
the Closed Block are, therefore, disproportionate to the business
outside of the Closed Block.
F-21
<PAGE>
7) DISCONTINUED OPERATIONS
Summarized financial information of the GIC Segment follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets
Mortgage loans on real estate........................................ $ 1,485.8 $ 1,730.5
Equity real estate................................................... 1,122.1 1,194.8
Other invested assets................................................ 665.2 978.8
Other assets......................................................... 579.3 529.5
----------------- -----------------
Total Assets......................................................... $ 3,852.4 $ 4,433.6
================= =================
Liabilities
Policyholders' liabilities........................................... $ 1,399.8 $ 1,924.0
Allowance for future losses.......................................... 164.2 185.6
Amounts due to continuing operations................................. 2,097.1 2,108.6
Other liabilities.................................................... 191.3 215.4
----------------- -----------------
Total Liabilities.................................................... $ 3,852.4 $ 4,433.6
================= =================
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Investment income (net of investment expenses
of $143.8, $174.0 and $175.8).................... $ 325.1 $ 395.0 $ 535.1
Investment (losses) gains, net..................... (22.9) 26.8 (22.6)
Policy fees, premiums and other income............. .7 .3 8.7
----------------- ---------------- -----------------
Total revenues..................................... 302.9 422.1 521.2
Benefits and other deductions...................... 328.0 443.8 545.9
----------------- ---------------- -----------------
Losses Charged to Allowance for Future Losses...... $ (25.1) $ (21.7) $ (24.7)
================= ================ =================
</TABLE>
In 1991, the Company established a pre-tax provision of $396.7 million
for the estimated future losses of the GIC Segment. At December 31,
1993, implementation of SFAS No. 115 for the valuation of fixed
maturities resulted in a benefit of $13.1 million, offset by a
corresponding addition to the allowance for future losses.
The amounts due to continuing operations at December 31, 1994
consisted of $3,324.0 million borrowed by the GIC Segment from
continuing operations, offset by $1,215.4 million representing an
obligation of continuing operations to provide assets to fund the
accumulated deficit of the GIC Segment. In January 1995, continuing
operations transferred $1,215.4 million in cash to the GIC Segment in
settlement of its obligation. Subsequently, the GIC Segment remitted
$1,155.4 million in cash to continuing operations in partial repayment
of borrowings by the GIC Segment. No gains or losses were recognized
on these transactions. Amounts due to continuing operations at
December 31, 1995, consisted of $2,097.1 million borrowed by the
discontinued GIC Segment.
F-22
<PAGE>
Investment income included $88.2 million and $97.7 million of interest
income for the years ended December 31, 1994 and 1993, respectively,
on amounts due from continuing operations. Benefits and other
deductions includes $154.6 million, $219.7 million and $197.1 million
of interest expense related to amounts borrowed from continuing
operations in 1995, 1994 and 1993, respectively.
Valuation allowances amounted to $19.2 million and $50.2 million on
mortgage loans on real estate and $77.9 million and $74.7 million on
equity real estate at December 31, 1995 and 1994, respectively.
Writedowns of fixed maturities amounted to $8.1 million, $17.8 million
and $1.1 million for the years ended December 31, 1995, 1994 and 1993,
respectively.
The fixed maturity portfolio, based on amortized cost, includes $15.1
million and $43.3 million at December 31, 1995 and 1994, respectively,
of restructured securities. These amounts include problem fixed
maturities of $6.1 million and $9.7 million at December 31, 1995 and
1994, respectively.
At December 31, 1995 and 1994, problem mortgage loans on real estate
had amortized costs of $35.4 million and $14.9 million, respectively,
and mortgage loans on real estate for which the payment terms have
been restructured had amortized costs of $289.3 million and $371.2
million, respectively.
At December 31, 1995 and 1994, the GIC Segment had $310.9 million and
$312.2 million, respectively, of real estate acquired in satisfaction
of debt.
8) SHORT-TERM AND LONG-TERM DEBT
Short-term and long-term debt consists of the following:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Short-term debt...................................................... $ - $ 20.0
----------------- -----------------
Long-term debt:
Equitable Life:
Surplus notes, 6.95%, scheduled to mature 2005..................... 399.3 -
Surplus notes, 7.70%, scheduled to mature 2015..................... 199.6 -
Eurodollar notes, 10.375% due 1995................................. - 34.6
Eurodollar notes, 10.5% due 1997................................... 76.2 76.2
Zero coupon note, 11.25% due 1997.................................. 120.1 107.8
Other.............................................................. 16.3 14.3
----------------- -----------------
Total Equitable Life........................................... 811.5 232.9
----------------- -----------------
Wholly Owned and Joint Venture Real Estate:
Mortgage notes, 4.98% - 12.75% due through 2019.................... 1,084.4 1,080.6
----------------- -----------------
Alliance:
Other.............................................................. 3.4 3.9
----------------- -----------------
Total long-term debt................................................. 1,899.3 1,317.4
----------------- -----------------
Total Short-term and Long-term Debt.................................. $ 1,899.3 $ 1,337.4
================= =================
</TABLE>
Short-term Debt
---------------
Equitable Life has a $350.0 million bank credit facility available to
fund short-term working capital needs and to facilitate the securities
settlement process. The credit facility consists of two types of
borrowing options with varying interest rates. The interest rates are
based on external indices dependent on the type of borrowing and at
December 31, 1995 range from 5.8% (the London Interbank Offering Rate
plus 22.5 basis points) to 8.5% (the prime rate). There were no
borrowings outstanding under this bank credit facility at December 31,
1995.
F-23
<PAGE>
Equitable Life has a commercial paper program with an issue limit of
$500.0 million. This program is available for general corporate
purposes used to support Equitable Life's liquidity needs and is
supported by Equitable Life's existing $350.0 million five-year bank
credit facility. There were no borrowings outstanding under this
program at December 31, 1995.
In 1994, Alliance established a $100.0 million revolving credit
facility with several banks. On March 31, 1997, the revolving credit
facility converts into a term loan payable in quarterly installments
through March 31, 1999. Outstanding borrowings generally bear interest
at the Eurodollar rate plus .875% per annum through March 31, 1997 and
at the Eurodollar rate plus 1.125% per annum after conversion through
March 31, 1999. In addition, a quarterly commitment fee of .25% per
annum is paid on the average daily unused amount. At December 31,
1995, there were no amounts outstanding under the facility.
In 1994, Alliance also established a $100.0 million commercial paper
program and entered into a three-year $100.0 million revolving credit
facility with a group of commercial banks to support commercial paper
to be issued under the program and for general corporate purposes.
Amounts outstanding under the facility bear interest at an annual rate
ranging from the Eurodollar rate plus .225% to the Eurodollar rate
plus .2875%. A fee of .125% per annum is paid quarterly on the entire
facility. At December 31, 1995, Alliance had not issued any commercial
paper and there were no amounts outstanding under the revolving credit
facility.
During 1994, EREIM established two bank lines of credit totaling $30.0
million of which $20.0 million was outstanding at December 31, 1994.
Long-term Debt
--------------
Several of the long-term debt agreements have restrictive covenants
related to the total amount of debt, net tangible assets and other
matters. The Company is in compliance with all debt covenants.
On December 18, 1995, Equitable Life issued, in accordance with
Section 1307 of the New York Insurance Law, $400.0 million of surplus
notes having an interest rate of 6.95% scheduled to mature in 2005 and
$200.0 million of surplus notes having an interest rate of 7.70%
scheduled to mature in 2015. Proceeds from the issuance of the surplus
notes were $596.6 million, net of related issuance costs. The
unamortized discount on the surplus notes was $1.1 million at December
31, 1995. Payments of interest on or principal of the surplus notes
are subject to prior approval by the New York Insurance Department.
The Company has pledged real estate, mortgage loans, cash and
securities amounting to $1,629.7 million and $1,744.4 million at
December 31, 1995 and 1994, respectively, as collateral for certain
long-term debt.
At December 31, 1995, aggregate maturities of the long-term debt based
on required principal payments at maturity for 1996 and the succeeding
four years are $124.0 million, $466.6 million, $309.5 million, $15.8
million, respectively, and $1,015.0 million thereafter.
9) FEDERAL INCOME TAXES
A summary of the Federal income tax expense (benefit) in the
consolidated statements of earnings is shown below:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Federal income tax expense (benefit):
Current.......................................... $ (11.7) $ 4.0 $ 115.8
Deferred......................................... 124.1 97.2 (24.5)
----------------- ---------------- -----------------
Total.............................................. $ 112.4 $ 101.2 $ 91.3
================= ================ =================
</TABLE>
F-24
<PAGE>
The Federal income taxes attributable to consolidated operations are
different from the amounts determined by multiplying the earnings
before Federal income taxes and cumulative effect of accounting change
by the expected Federal income tax rate of 35%. The sources of the
difference and the tax effects of each are as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Expected Federal income tax expense................ $ 143.5 $ 138.1 $ 106.3
Differential earnings amount....................... - (16.8) (23.2)
Adjustment of tax audit reserves................... 4.1 (4.6) 22.9
Tax rate adjustment................................ - - (5.0)
Other.............................................. (35.2) (15.5) (9.7)
----------------- --------------- -----------------
Federal Income Tax Expense......................... $ 112.4 $ 101.2 $ 91.3
================= ================ =================
</TABLE>
Prior to the date of demutualization, Equitable Life reduced its
deduction for policyholder dividends by the differential earnings
amount. This amount was computed, for each tax year, by multiplying
Equitable Life's average equity base, as determined for tax purposes,
by an estimate of the excess of an imputed earnings rate for stock
life insurance companies over the average mutual life insurance
companies' earnings rate. The differential earnings amount for each
tax year was subsequently recomputed when actual earnings rates were
published by the Internal Revenue Service. As a stock life insurance
company, Equitable Life is no longer required to reduce its
policyholder dividend deduction by the differential earnings amount,
but differential earnings amounts for pre-demutualization years were
still being recomputed in 1994 and 1993.
The components of the net deferred Federal income tax asset are as
follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1995 December 31, 1994
--------------------------------- ---------------------------------
ASSETS LIABILITIES Assets Liabilities
--------------- ---------------- --------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Deferred policy acquisition costs,
reserves and reinsurance............. $ - $ 303.2 $ - $ 220.3
Investments............................ - 326.9 - 18.7
Compensation and related benefits...... 293.0 - 307.3 -
Other.................................. - 32.3 - 5.8
--------------- ---------------- --------------- ---------------
Total.................................. $ 293.0 $ 662.4 $ 307.3 $ 244.8
=============== ================ =============== ===============
</TABLE>
The deferred Federal income tax expense (benefit) impacting operations
reflect the net tax effects of temporary differences between the
carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. The sources of
these temporary differences and the tax effects of each are as
follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Deferred policy acquisition costs, reserves
and reinsurance.................................. $ 55.1 $ 13.0 $ (46.7)
Investments........................................ 13.0 89.3 60.4
Compensation and related benefits.................. 30.8 10.0 (50.1)
Other.............................................. 25.2 (15.1) 11.9
----------------- ---------------- -----------------
Deferred Federal Income Tax Expense (Benefit)...... $ 124.1 $ 97.2 $ (24.5)
================= ================ =================
</TABLE>
F-25
<PAGE>
The Internal Revenue Service completed its audit of the Company's
Federal income tax returns for the years 1984 through 1988. There was
no material effect on the Company's consolidated results of
operations.
10) REINSURANCE AGREEMENTS
The Insurance Group assumes and cedes reinsurance with other insurance
companies. The Insurance Group evaluates the financial condition of
its reinsurers to minimize its exposure to significant losses from
reinsurer insolvencies. The effect of reinsurance (excluding group
life and health) is summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Direct premiums.................................... $ 474.2 $ 476.7 $ 458.8
Reinsurance assumed................................ 171.3 180.5 169.9
Reinsurance ceded.................................. (38.7) (31.6) (29.6)
----------------- ---------------- -----------------
Premiums........................................... $ 606.8 $ 625.6 $ 599.1
================= ================ =================
Universal Life and Investment-type Product
Policy Fee Income Ceded.......................... $ 38.9 $ 27.5 $ 33.7
================= ================ =================
Policyholders' Benefits Ceded...................... $ 48.2 $ 20.7 $ 72.3
================= ================ =================
Interest Credited to Policyholders' Account
Balances Ceded................................... $ 28.5 $ 25.4 $ 24.1
================= ================ =================
</TABLE>
In February 1993, management established a practice limiting the risk
retention on new policies issued by the Insurance Group to a maximum
of $5.0 million. In addition, effective January 1, 1994, all in force
business above $5.0 million was reinsured. The Insurance Group also
reinsures the entire risk on certain substandard underwriting risks as
well as in certain other cases.
The Insurance Group cedes 100% of its group life and health business
to a third party insurance company. Premiums ceded totaled $260.6
million, $241.0 million and $895.1 million for the years ended
December 31, 1995, 1994 and 1993, respectively. Ceded death and
disability benefits totaled $188.1 million, $235.5 million and $787.8
million for the years ended December 31, 1995, 1994 and 1993,
respectively. Insurance liabilities ceded totaled $724.2 million and
$833.4 million at December 31, 1995 and 1994, respectively.
11) EMPLOYEE BENEFIT PLANS
The Company sponsors qualified and non-qualified defined benefit plans
covering substantially all employees (including certain qualified
part-time employees), managers and certain agents. The pension plans
are non-contributory and benefits are based on a cash balance formula
or years of service and final average earnings, if greater, under
certain grandfathering rules in the plans. The Company's funding
policy is to make the minimum contribution required by the Employee
Retirement Income Security Act of 1974.
Components of net periodic pension (credit) cost for the qualified and
non-qualified plans are as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 30.0 $ 30.3 $ 29.8
Interest cost on projected benefit obligations..... 122.0 111.0 108.0
Actual return on assets............................ (309.2) 24.4 (178.6)
Net amortization and deferrals..................... 155.6 (142.5) 55.3
----------------- ---------------- -----------------
Net Periodic Pension (Credit) Cost................. $ (1.6) $ 23.2 $ 14.5
================= ================ =================
</TABLE>
F-26
<PAGE>
The funded status of the qualified and non-qualified pension plans is as
follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Actuarial present value of obligations:
Vested............................................................... $ 1,642.4 $ 1,295.5
Non-vested........................................................... 10.9 8.7
--------------- -----------------
Accumulated Benefit Obligation......................................... $ 1,653.3 $ 1,304.2
================ =================
Plan assets at fair value.............................................. $ 1,503.8 $ 1,193.5
Projected benefit obligation........................................... 1,743.0 1,403.4
---------------- -----------------
Projected benefit obligation in excess of plan assets.................. (239.2) (209.9)
Unrecognized prior service cost........................................ (25.5) (33.2)
Unrecognized net loss from past experience different from that
assumed.............................................................. 368.2 298.9
Unrecognized net asset at transition................................... (7.3) (20.8)
Additional minimum liability........................................... (51.9) (37.8)
---------------- -----------------
Prepaid (Accrued) Pension Cost......................................... $ 44.3 $ (2.8)
================ =================
</TABLE>
The discount rate and rate of increase in future compensation levels
used in determining the actuarial present value of projected benefit
obligations were 7.25% and 4.50%, respectively, at December 31, 1995
and 8.75% and 4.88%, respectively, at December 31, 1994. As of January
1, 1995 and 1994, the expected long-term rate of return on assets for
the retirement plan was 11% and 10%, respectively.
The Company recorded, as a reduction of shareholder's equity, an
additional minimum pension liability of $35.1 million and $2.7
million, net of Federal income taxes, at December 31, 1995 and 1994,
respectively, representing the excess of the accumulated benefit
obligation over the fair value of plan assets and accrued pension
liability.
The pension plan's assets include corporate and government debt
securities, equity securities, equity real estate and shares of Group
Trusts managed by Alliance.
As of December 31, 1993, the Company changed the method of determining
the market-related value of plan assets from fair value to a
calculated value. This change in estimate had no material effect on
the Company's consolidated statements of earnings.
Prior to 1987, the qualified plan funded participants' benefits
through the purchase of non-participating annuity contracts from
Equitable Life. Benefit payments under these contracts were
approximately $36.4 million, $38.1 million and $39.9 million for the
years ended December 31, 1995, 1994 and 1993, respectively.
The Company provides certain medical and life insurance benefits
(collectively, "postretirement benefits") for qualifying employees,
managers and agents retiring from the Company on or after attaining
age 55 who have at least 10 years of service. The life insurance
benefits are related to age and salary at retirement. The costs of
postretirement benefits are recognized in accordance with the
provisions of SFAS No. 106. The Company continues to fund
postretirement benefits costs on a pay-as-you-go basis and, for the
years ended December 31, 1995, 1994 and 1993, the Company made
estimated postretirement benefits payments of $31.1 million, $29.8
million and $29.7 million, respectively.
F-27
<PAGE>
The following table sets forth the postretirement benefits plan's
status, reconciled to amounts recognized in the Company's consolidated
financial statements:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 4.0 $ 3.9 $ 5.3
Interest cost on accumulated postretirement
benefits obligation.............................. 34.7 28.6 29.2
Unrecognized prior service cost.................... (2.3) (3.9) (6.9)
Net amortization and deferrals..................... - - 1.5
----------------- ---------------- -----------------
Net Periodic Postretirement Benefits Costs......... $ 36.4 $ 28.6 $ 29.1
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Accumulated postretirement benefits obligation:
Retirees............................................................. $ 391.8 $ 300.4
Fully eligible active plan participants.............................. 50.4 33.0
Other active plan participants....................................... 64.2 44.0
---------------- -----------------
506.4 377.4
Unrecognized benefit of plan amendments................................ - 3.2
Unrecognized prior service cost........................................ 56.3 61.9
Unrecognized net loss from past experience different from that
assumed and from changes in assumptions.............................. (181.3) (64.7)
---------------- -----------------
Accrued Postretirement Benefits Cost................................... $ 381.4 $ 377.8
================ =================
</TABLE>
In 1993, the Company amended the cost sharing provisions of
postretirement medical benefits. At January 1, 1994, medical benefits
available to retirees under age 65 are the same as those offered to
active employees and medical benefits will be limited to 200% of 1993
costs for all participants.
The assumed health care cost trend rate used in measuring the
accumulated postretirement benefits obligation was 10% in 1995,
gradually declining to 3.5% in the year 2008 and in 1994 was 10%,
gradually declining to 5% in the year 2004. The discount rate used in
determining the accumulated postretirement benefits obligation was
7.25% and 8.75% at December 31, 1995 and 1994, respectively.
If the health care cost trend rate assumptions were increased by 1%,
the accumulated postretirement benefits obligation as of December 31,
1995 would be increased 6.5%. The effect of this change on the sum of
the service cost and interest cost would be an increase of 6.7%.
12) DERIVATIVES AND FAIR VALUE OF FINANCIAL INSTRUMENTS
Derivatives
-----------
The Insurance Group primarily uses derivatives for asset/liability
risk management and for hedging individual securities. Derivatives
mainly are utilized to reduce the Insurance Group's exposure to
interest rate fluctuations. Accounting for interest rate swap
transactions is on an accrual basis. Gains and losses related to
interest rate swap transactions are amortized as yield adjustments
over the remaining life of the underlying hedged security. Income and
expense resulting from interest rate swap activities are reflected in
net investment income except for hedging transactions related to
insurance liabilities. The notional amount of matched interest rate
swaps outstanding at December 31, 1995 was $1,120.8 million. The
average unexpired terms at December 31, 1995 range from 2.5 to 3.0
years. At December 31, 1995, the cost of terminating outstanding
matched swaps in a loss position was $15.9 million and the unrealized
gain on
F-28
<PAGE>
outstanding matched swaps in a gain position was $19.0 million. The
Company has no intention of terminating these contracts prior to
maturity. During 1995, 1994 and 1993, net gains (losses) of $1.4
million, $(.2) million and $-0- million, respectively, were recorded
in connection with interest rate swap activity. Equitable Life has
implemented an interest rate cap program designed to hedge crediting
rates on interest-sensitive individual annuities contracts. The
outstanding notional amounts at December 31, 1995 of contracts
purchased and sold were $2,625.0 million and $300.0 million,
respectively. The net premium paid by Equitable Life on these
contracts was $12.5 million and is being amortized ratably over the
contract periods ranging from 3 to 5 years. Income and expense
resulting from this program are reflected as an adjustment to interest
credited to policyholders' account balances.
Substantially all of DLJ's business related derivatives is by its
nature trading activities which are primarily for the purpose of
customer accommodations. DLJ's derivative activities consist of option
writing and trading in forward and futures contracts. Derivative
financial instruments have both on-and-off balance sheet implications
depending on the nature of the contracts. DLJ's involvement in swap
contracts is not significant.
Fair Value of Financial Instruments
-----------------------------------
The Company defines fair value as the quoted market prices for those
instruments that are actively traded in financial markets. In cases
where quoted market prices are not available, fair values are
estimated using present value or other valuation techniques. The fair
value estimates are made at a specific point in time, based on
available market information and judgments about the financial
instrument, including estimates of timing, amount of expected future
cash flows and the credit standing of counterparties. Such estimates
do not reflect any premium or discount that could result from offering
for sale at one time the Company's entire holdings of a particular
financial instrument, nor do they consider the tax impact of the
realization of unrealized gains or losses. In many cases, the fair
value estimates cannot be substantiated by comparison to independent
markets, nor can the disclosed value be realized in immediate
settlement of the instrument.
Certain financial instruments are excluded, particularly insurance
liabilities other than financial guarantees and investment contracts.
Fair market value of off-balance-sheet financial instruments of the
Insurance Group was not material at December 31, 1995 and 1994.
Fair value for mortgage loans on real estate are estimated by
discounting future contractual cash flows using interest rates at
which loans with similar characteristics and credit quality would be
made. Fair values for foreclosed mortgage loans and problem mortgage
loans are limited to the estimated fair value of the underlying
collateral if lower.
The estimated fair values for the Company's liabilities under GIC and
association plan contracts are estimated using contractual cash flows
discounted based on the T. Rowe Price GIC Index Rate for the
appropriate duration. For durations in excess of the published index
rate, the appropriate Treasury rate is used plus a spread equal to the
longest duration GIC rate spread published.
The estimated fair values for those group annuity contracts which are
classified as investment contracts are measured at the estimated fair
value of the underlying assets. Deposit administration contracts
(included with group annuity contracts) classified as insurance
contracts are measured at estimated fair value of the underlying
assets. The estimated fair values for single premium deferred
annuities ("SPDA") are estimated using projected cash flows discounted
at current offering rates. The estimated fair values for supplementary
contracts not involving life contingencies ("SCNILC") and annuities
certain are derived using discounted cash flows based upon the
estimated current offering rate.
Fair value for long-term debt is determined using published market
values, where available, or contractual cash flows discounted at
market interest rates. The estimated fair values for non-recourse
mortgage debt are determined by discounting contractual cash flows at
a rate which takes into account the level of current market interest
rates and collateral risk. The estimated fair values for recourse
mortgage debt are determined by discounting contractual cash flows at
a rate based upon current interest rates of other companies with
credit ratings similar to the Company. The Company's fair value of
short-term borrowings approximates their carrying value.
F-29
<PAGE>
The following table discloses carrying value and estimated fair value
for financial instruments not otherwise disclosed in Notes 3, 6 and 7:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------------------------------------
1995 1994
--------------------------------- ---------------------------------
CARRYING ESTIMATED Carrying Estimated
VALUE FAIR VALUE Value Fair Value
--------------- ---------------- --------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Consolidated Financial Instruments:
-----------------------------------
Mortgage loans on real estate.......... $ 3,638.3 $ 3,973.6 $ 4,018.0 $ 3,919.4
Other joint ventures................... 492.7 492.7 544.4 544.4
Policy loans........................... 1,976.4 2,057.5 1,731.2 1,676.6
Policyholders' account balances:
Association plans.................... 101.0 100.0 141.0 141.0
Group annuity contracts.............. 2,335.0 2,395.0 2,450.0 2,469.0
SPDA................................. 1,265.8 1,272.0 1,744.3 1,732.7
Annuities certain and SCNILC......... 649.1 680.7 599.1 624.7
Long-term debt......................... 1,899.3 1,962.9 1,317.4 1,249.2
Closed Block Financial Instruments:
-----------------------------------
Mortgage loans on real estate.......... 1,368.8 1,461.4 1,543.7 1,477.8
Other equity investments............... 151.6 151.6 179.5 179.5
Policy loans........................... 1,797.2 1,891.4 1,827.9 1,721.9
SCNILC liability....................... 34.8 34.5 39.5 37.0
GIC Segment Financial Instruments:
----------------------------------
Mortgage loans on real estate.......... 1,485.8 1,666.1 1,730.5 1,743.7
Fixed maturities....................... 107.4 107.4 219.3 219.3
Other equity investments............... 455.9 455.9 591.8 591.8
Guaranteed interest contracts.......... 329.0 352.0 835.0 855.0
Long-term debt......................... 135.1 136.0 134.8 127.9
</TABLE>
13) COMMITMENTS AND CONTINGENT LIABILITIES
The Company has provided, from time to time, certain guarantees or
commitments to affiliates, investors and others. These arrangements
include commitments by the Company, under certain conditions: to make
liquidity advances to cover delinquent principal and interest and
property protection expenses with respect to loan servicing agreements
for securitized mortgage loans which at December 31, 1995 totaled $2.8
billion (as of December 31, 1995, $4.0 million have been advanced
under these commitments); to make capital contributions of up to
$246.7 million to affiliated real estate joint ventures; to provide
equity financing to certain limited partnerships of $129.4 million at
December 31, 1995, under existing loan or loan commitment agreements;
and to provide short-term financing loans which at December 31, 1995
totaled $45.8 million. Management believes the Company will not incur
any material losses as a result of these commitments.
Equitable Life is the obligor under certain structured settlement
agreements which it had entered into with unaffiliated insurance
companies and beneficiaries. To satisfy its obligations under these
agreements, Equitable Life owns single premium annuities issued by
previously wholly owned life insurance subsidiaries. Equitable Life
has directed payment under these annuities to be made directly to the
beneficiaries under the structured settlement agreements. A contingent
liability exists with respect to these agreements should the
previously wholly owned subsidiaries be unable to meet their
obligations. Management believes the satisfaction of those obligations
by Equitable Life is remote.
At December 31, 1995, the Insurance Group had $29.0 million of letters
of credit outstanding.
F-30
<PAGE>
14) LITIGATION
A number of lawsuits have been filed against life and health insurers
in the jurisdictions in which Equitable Life and its subsidiaries do
business involving insurers' sales practices, alleged agent
misconduct, failure to properly supervise agents, and other matters.
Some of the lawsuits have resulted in the award of substantial
judgments against other insurers, including material amounts of
punitive damages, or in substantial settlements. In some states juries
have substantial discretion in awarding punitive damages. Equitable
Life and its insurance subsidiaries, like other life and health
insurers, from time to time are involved in such litigation. To date,
no such lawsuit has resulted in an award or settlement of any material
amount against the Company. Among litigations pending against
Equitable Life and its insurance subsidiaries of the type referred to
in this paragraph are the litigations described in the following two
paragraphs.
An action entitled Golomb et al. v. The Equitable Life Assurance
Society of the United States was filed on January 20, 1995 in New York
County Supreme Court. The action purports to be brought on behalf of a
class of persons insured after 1983 under Lifetime Guaranteed
Renewable Major Medical Insurance Policies issued by Equitable Life
(the "policies"). The complaint alleges that premium increases for
these policies after 1983, all of which were filed with and approved
by the New York State Insurance Department and certain other state
insurance departments, breached the terms of the insurance policies,
and that statements in the policies and elsewhere concerning premium
increases constituted fraudulent concealment, misrepresentations in
violation of New York Insurance Law Section 4226 and deceptive
practices under New York General Business Law Section 349. The
complaint seeks a declaratory judgment, injunctive relief restricting
the methods by which Equitable Life increases premiums on the policies
in the future, a refund of premiums, and punitive damages. Plaintiffs
also have indicated that they will seek damages in an unspecified
amount. Equitable Life has moved to dismiss the complaint in its
entirety on the grounds that it fails to state a claim and that
uncontroverted documentary evidence establishes a complete defense to
the claims. That motion is awaiting decision by the court. In January
1996, separate actions were filed in Pennsylvania and Texas state
courts (entitled, respectively, Malvin et al. v. The Equitable Life
Assurance Society of the United States and Bowler et al. v. The
Equitable Life Assurance Society of the United States), making claims
similar to those in the New York action described above. These new
actions are asserted on behalf of proposed classes of Pennsylvania
issued or renewed policyholders and Texas issued or renewed
policyholders, insured under the policies. The Pennsylvania and Texas
actions seek compensatory and punitive damages and injunctive relief
restricting the methods by which Equitable Life increases premiums in
the future based on the common law and statutes of those states.
Although the outcome of any litigation cannot be predicted with
certainty, particularly in the early stages of an action, Equitable
Life's management believes that the ultimate resolution of those
litigations should not have a material adverse effect on the financial
position of the Company. Due to the early stage of such litigation,
Equitable Life's management cannot make an estimate of loss, if any,
or predict whether or not such litigation will have a material adverse
effect on the Company's results of operations in any particular
period.
An action was instituted on April 6, 1995 against Equitable Life and
its wholly owned subsidiary, The Equitable of Colorado, Inc. ("EOC"),
in New York State Court, entitled Sidney C. Cole et al. v. The
Equitable Life Assurance Society of the United States and The
Equitable of Colorado, Inc., No. 95/108611 (N.Y. County). The action
is brought by the holders of a joint survivorship whole life policy
issued by EOC. The action purports to be on behalf of a class
consisting of all persons who from January 1, 1984 purchased life
insurance policies sold by Equitable Life and EOC based upon their
allegedly uniform sales presentations and policy illustrations. The
complaint puts in issue various alleged sales practices that
plaintiffs assert, among other things, misrepresented the stated
number of years that the annual premium would need to be paid.
Plaintiffs seek damages in an unspecified amount, imposition of a
constructive trust, and seek to enjoin Equitable Life and EOC from
engaging in the challenged sales practices. Equitable Life and EOC
intend to defend vigorously and believe that they have meritorious
defenses which, if successful, would dispose of the action completely.
Equitable Life and EOC further do not believe that this case is an
appropriate class action. Although the outcome of any litigation
cannot be predicted with certainty, particularly in the early stages
of an action, Equitable Life's management believes that the ultimate
F-31
<PAGE>
resolution of this litigation should not have a material adverse
effect on the financial position of the Company. Due to the early
stage of such litigation, the Company's management cannot make an
estimate of loss, if any, or predict whether or not such litigation
will have a material adverse effect on the Company's results of
operations in any particular period.
Equitable Casualty Insurance Company ("Casualty"), a captive property
and casualty insurance company organized under the laws of Vermont,
which is an indirect wholly owned subsidiary of Equitable Life, is a
party to an arbitration proceeding that commenced in August 1995 with
the selection of three arbitrators. The arbitration will resolve a
dispute among Casualty, Houston General Insurance Company ("Houston
General"), and GEICO General Insurance Company ("GEICO General")
regarding the interpretation of a reinsurance agreement that was
entered into as part of a 1980 transaction whereby Equitable General
Insurance Company ("Equitable General"), formerly an indirect
subsidiary of Equitable Life and the predecessor of GEICO General,
sold its commercial lines business along with the stock of Houston
General to subsidiaries of Tokio Marine & Fire Insurance Company, Ltd.
("Tokio Marine"). Casualty and GEICO General maintain that, under the
reinsurance agreement, Houston General assumed liability for all
losses insured under commercial lines policies written by Equitable
General and its predecessors in order to effect the transfer of that
business to Tokio Marine's subsidiaries. Houston General contends that
it did not assume reinsurance liability for losses insured under
certain of those commercial lines policies. The arbitration panel
determined to begin hearing evidence in the arbitration in June 1996.
The result of the arbitration is expected to resolve two litigations
that were commenced by Houston General and that have been stayed by
the presiding courts pending the completion of the arbitration (in one
case, Houston General named as a defendant only GEICO General but
Casualty intervened as a defendant with GEICO General, and in the
other case, Houston General named GEICO General and Equitable Life).
The arbitration is expected to be completed during the second half of
1996. While the ultimate outcome of the arbitration cannot be
predicted with certainty, the Company's management believes that the
arbitrators will recognize that Houston General's position is without
merit and contrary to the way in which the reinsurance industry
operates and therefore the ultimate resolution of this matter should
not have a material adverse effect on the Company's financial position
or results of operations.
On July 25, 1995, a Consolidated and Supplemental Class Action
Complaint ("Complaint") was filed against the Alliance North American
Government Income Trust, Inc. (the "Fund"), Alliance and certain other
defendants affiliated with Alliance, including the Holding Company,
alleging violations of Federal securities laws, fraud and breach of
fiduciary duty in connection with the Fund's investments in Mexican
and Argentine securities. A similar complaint was filed on November 7,
1995 and was subsequently consolidated with the Complaint. The
Complaint, which seeks certification of a plaintiff class of persons
who purchased or owned Class A, B or C shares of the Fund from March
27, 1992 through December 23, 1994, seeks an unspecified amount of
damages, costs, attorneys' fees and punitive damages. The principal
allegations of the Complaint are that the Fund purchased debt
securities issued by the Mexican and Argentine governments in amounts
that were not permitted by the Funds' investment objective, and that
there was no shareholder vote to change the investment objective to
permit purchases in such amounts. The Complaint further alleges that
the decline in the value of the Mexican and Argentine securities held
by the Fund caused the Fund's net asset value to decline to the
detriment of the Fund's shareholders. On September 26, 1995, the
defendants jointly filed a motion to dismiss the Complaint which has
not yet been decided by the Court. Alliance believes that the
allegations in the Complaint are without merit and intends to
vigorously defend against these claims. While the ultimate results of
this action cannot be determined, management of Alliance does not
expect that this action will have a material adverse effect on
Alliance's business.
On January 26, 1996, a purported purchaser of certain notes and
warrants to purchase shares of common stock of Rickel Home Centers,
Inc. ("Rickel") filed a class action complaint against Donaldson,
Lufkin & Jenrette Securities Corporation ("DLJSC"), a wholly owned
subsidiary of DLJ, and certain other defendants for unspecified
compensatory and punitive damages in the United States District Court
for the Southern District of New York. The suit was brought on behalf
of the purchasers of 126,457 units consisting of $126,457,000
aggregate principal amount of 13 1/2% senior notes due 2001 and
126,457 warrants to purchase shares of common stock of Rickel (the
"Units") issued by Rickel in October 1994. The complaint alleges
violations of Federal securities laws and common law fraud against
DLJSC, as the underwriter of
F-32
<PAGE>
the Units and as an owner of 7.3% of the common stock of Rickel, Eos
Partners, L.P., and General Electric Capital Corporation, each as
owners of 44.2% of the common stock of Rickel, and members of the
Board of Directors of Rickel, including a DLJSC Managing Director. The
complaint seeks to hold DLJSC liable for alleged misstatements and
omissions contained in the prospectus and registration statement filed
in connection with the offering of the Units, alleging that the
defendants knew of financial losses and a decline in value of Rickel
in the months prior to the offering and did not disclose such
information. The complaint also alleges that Rickel failed to pay its
semi-annual interest payment due on the Units on December 15, 1995 and
that Rickel filed a voluntary petition for reorganization pursuant to
Chapter 11 of the United States Bankruptcy Code on January 10, 1996.
DLJSC intends to defend itself vigorously against all of the
allegations contained in the complaint. Although there can be no
assurance, DLJ does not believe the outcome of this litigation will
have a material adverse effect on its financial condition. Due to the
early stage of this litigation, based on the information currently
available to it, DLJ's management cannot make an estimate of loss or
predict whether or not such litigation will have a material adverse
effect on DLJ's results of operations in any particular period.
On June 12, 1995, a purported purchaser of certain securities issued
by Spectravision, Inc. ("Spectravision") filed a class action
complaint against DLJSC and certain other defendants for unspecified
damages in the U.S. District Court for the Northern District of Texas.
The suit was brought on behalf of the purchasers of $260,795,000 of
securities issued by Spectravision in November 1992, and alleges
violations of the Federal securities laws and the Texas Securities
Act, common law fraud and negligent misrepresentation. The securities
were issued by Spectravision pursuant to a prepackaged bankruptcy
reorganization plan. DLJSC served as financial advisor to
Spectravision in its reorganization and as Dealer Manager for
Spectravision's 1992 issuance of the securities. DLJSC is also being
sued as a seller of certain notes of Spectravision acquired and resold
by DLJSC. The complaint seeks to hold DLJSC liable for various alleged
misstatements and omissions contained in prospectuses and other
materials issued between July 1992 and June 1994. DLJSC intends to
defend itself vigorously against all of the allegations contained in
the complaint. On June 8, 1995, Spectravision filed a Chapter 11
petition in the United States Bankruptcy Court for the District of
Delaware. On January 5, 1996, the district court in the litigation
involving DLJSC ordered a partial stay of discovery until
Spectravision has emerged from bankruptcy or six months from the date
of the stipulated stay (whichever comes first). Accordingly, discovery
of DLJSC has not yet occurred. Although there can be no assurance, DLJ
does not believe that the ultimate outcome of this litigation will
have a material adverse effect on its financial condition. Due to the
early stage of such litigation, based upon information currently
available to it, DLJ's management cannot make an estimate of loss or
predict whether or not such litigation will have a material adverse
effect on DLJ's results of operations in any particular period.
Plaintiff's counsel in the class action against DLJSC described above
has also filed another securities class action based on similar
factual allegations. Such suit names as defendants Spectravision and
its directors, and was brought on behalf of a class of purchasers of
$209.0 million of stock and $77.0 million of notes issued by
Spectravision in October 1993. DLJSC served as the managing
underwriter for both of these issuances. DLJSC has not been named as a
defendant in this suit, although it has been reported to DLJSC that
plaintiff's counsel is contemplating seeking to amend the complaint to
add DLJSC as a defendant in that action.
In October 1995, DLJSC was named as a defendant in a purported class
action filed in a Texas State Court on behalf of the holders of $550.0
million principal amount of subordinated redeemable discount
debentures of National Gypsum Corporation ("NGC") canceled in
connection with a Chapter 11 plan of reorganization for NGC
consummated in July 1993. The named plaintiff in the State Court
action also filed an adversary proceeding in the Bankruptcy Court for
the Northern District of Texas seeking a declaratory judgment that the
confirmed NGC plan of reorganization does not bar the class action
claims. Subsequent to the consummation of NGC's plan of
reorganization, NGC's shares traded for values substantially in excess
of, and in 1995 NGC was acquired for a value substantially in excess
of, the values upon which NGC's plan of reorganization was based. The
two actions arise out of DLJSC's activities as financial advisor to
NGC in the course of NGC's Chapter 11 reorganization proceedings. The
class action complaint alleges that the plan of reorganization
submitted by NGC was based upon projections by NGC and DLJSC which
intentionally understated forecasts, and provided misleading and
incorrect information in order to hide NGC's true value and that
defendants breached their fiduciary duties by, among other things,
providing false, misleading or incomplete information to deliberately
understate the value of NGC. The class action complaint seeks
compensatory and punitive damages purportedly sustained by the class.
The Texas State
F-33
<PAGE>
Court action has subsequently been removed to the Bankruptcy Court,
which removal is being opposed by the plaintiff. DLJSC intends to
defend itself vigorously against all of the allegations contained in
the complaint. Although there can be no assurance, DLJ does not
believe that the ultimate outcome of this litigation will have a
material adverse effect on its financial condition. Due to the early
stage of such litigation, based upon the information currently
available to it, DLJ's management cannot make an estimate of loss or
predict whether or not such litigation will have a material adverse
effect on DLJ's results of operations in any particular period.
In November and December 1995, DLJSC, along with various other
parties, was named as a defendant in a number of purported class
actions filed in the U.S. District Court for the Eastern District of
Louisiana. The complaints allege violations of the Federal securities
laws arising out of a public offering in 1994 of $435.0 million of
first mortgage notes of Harrah's Jazz Company and Harrah's Jazz
Finance Corp. The complaints seek to hold DLJSC liable for various
alleged misstatements and omissions contained in the prospectus dated
November 9, 1994. DLJSC intends to defend itself vigorously against
all of the allegations contained in the complaints. Although there can
be no assurance, DLJ does not believe that the ultimate outcome of
this litigation will have a material adverse effect on its financial
condition. Due to the early stage of this litigation, based upon the
information currently available to it, DLJ's management cannot make an
estimate of loss or predict whether or not such litigation will have a
material adverse effect on DLJ's results of operations in any
particular period.
In addition to the matters described above, Equitable Life and its
subsidiaries and DLJ and its subsidiaries are involved in various
legal actions and proceedings in connection with their businesses.
Some of the actions and proceedings have been brought on behalf of
various alleged classes of claimants and certain of these claimants
seek damages of unspecified amounts. While the ultimate outcome of
such matters cannot be predicted with certainty, in the opinion of
management no such matter is likely to have a material adverse effect
on the Company's consolidated financial position or results of
operations.
15) LEASES
The Company has entered into operating leases for office space and
certain other assets, principally data processing equipment and office
furniture and equipment. Future minimum payments under noncancelable
leases for 1996 and the succeeding four years are $114.8 million,
$101.8 million, $90.0 million, $73.6 million, $57.7 million and $487.0
million thereafter. Minimum future sublease rental income on these
noncancelable leases for 1996 and the succeeding four years are $11.0
million, $8.7 million, $6.9 million, $4.6 million, $2.9 million and
$1.1 million thereafter.
At December 31, 1995, the minimum future rental income on
noncancelable operating leases for wholly owned investments in real
estate for 1996 and the succeeding four years are $292.9 million,
$271.2 million, $248.1 million, $226.4 million, $195.5 million and
$1,018.8 million thereafter.
F-34
<PAGE>
16) OTHER OPERATING COSTS AND EXPENSES
Other operating costs and expenses consisted of the following:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Compensation costs................................. $ 595.9 $ 690.0 $ 1,452.3
Commissions........................................ 314.3 313.0 551.1
Short-term debt interest expense................... 11.4 19.0 317.1
Long-term debt interest expense.................... 108.1 98.3 86.0
Amortization of policy acquisition costs........... 320.4 318.1 275.9
Capitalization of policy acquisition costs......... (391.0) (410.9) (397.8)
Rent expense, net of sub-lease income.............. 124.8 128.9 159.5
Other.............................................. 772.6 786.7 1,140.1
----------------- ---------------- -----------------
Total.............................................. $ 1,856.5 $ 1,943.1 $ 3,584.2
================= ================ =================
</TABLE>
During the years ended December 31, 1995, 1994 and 1993, the Company
restructured certain operations in connection with cost reduction
programs and recorded pre-tax provisions of $32.0 million, $20.4
million and $96.4 million, respectively. The amounts paid during 1995,
associated with the 1995 and 1994 cost reduction programs, totaled
$24.0 million. At December 31, 1995, the liabilities associated with
the 1995 and 1994 cost reduction programs amounted to $37.8 million.
The 1995 cost reduction program included relocation expenses,
including the accelerated amortization of building improvements
associated with the relocation of the home office. The 1994 cost
reduction program included costs associated with the termination of
operating leases and employee severance benefits in connection with
the consolidation of 16 insurance agencies. The 1993 cost reduction
program primarily reflected severance benefits of terminated employees
in connection with the combination of a wholly owned subsidiary of the
Company with Alliance.
17) INSURANCE GROUP STATUTORY FINANCIAL INFORMATION
Equitable Life is restricted as to the amounts it may pay as dividends
to the Holding Company. Under the New York Insurance Law, the New York
Superintendent has broad discretion to determine whether the financia1
condition of a stock life insurance company would support the payment
of dividends to its shareholders. For the years ended December 31,
1995, 1994 and 1993, statutory (loss) earnings totaled $(352.4)
million, $67.5 million and $324.0 million, respectively. No amounts
are expected to be available for dividends from Equitable Life to the
Holding Company in 1996.
At December 31, 1995, the Insurance Group, in accordance with various
government and state regulations, had $18.9 million of securities
deposited with such government or state agencies.
F-35
<PAGE>
Accounting practices used to prepare statutory financial statements
for regulatory filings of stock life insurance companies differ in
certain instances from GAAP. The following reconciles the Company's
statutory change in surplus and capital stock and statutory surplus
and capital stock determined in accordance with accounting practices
prescribed by the New York Insurance Department with net earnings and
equity on a GAAP basis.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Net change in statutory surplus and capital stock.. $ 78.1 $ 292.4 $ 190.8
Change in asset valuation reserves................. 365.7 (285.2) 639.1
----------------- ---------------- -----------------
Net change in statutory surplus, capital stock
and asset valuation reserves..................... 443.8 7.2 829.9
Adjustments:
Future policy benefits and policyholders'
account balances............................... (67.9) (11.0) (171.0)
Deferred policy acquisition costs................ 70.6 92.8 121.8
Deferred Federal income taxes.................... (150.0) (59.7) (57.5)
Valuation of investments......................... 189.1 45.2 202.3
Valuation of investment subsidiary............... (188.6) 396.6 (464.9)
Limited risk reinsurance......................... 416.9 74.9 85.2
Issuance of surplus notes........................ (538.9) - -
Sale of subsidiary and joint venture............. - - (366.5)
Contribution from the Holding Company............ - (300.0) -
Postretirement benefits.......................... (26.7) 17.1 23.8
Other, net....................................... 115.1 (44.0) 60.3
GAAP adjustments of Closed Block................. (3.1) 4.5 (16.0)
GAAP adjustments of discontinued GIC
Segment........................................ 37.3 42.8 (35.0)
----------------- ---------------- -----------------
Net Earnings....................................... $ 297.6 $ 266.4 $ 212.4
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Statutory surplus and capital stock................ $ 2,202.9 $ 2,124.8 $ 1,832.4
Asset valuation reserves........................... 1,345.9 980.2 1,265.4
----------------- ---------------- -----------------
Statutory surplus, capital stock and asset
valuation reserves............................... 3,548.8 3,105.0 3,097.8
Adjustments:
Future policy benefits and policyholders'
account balances............................... (1,017.4) (949.5) (938.5)
Deferred policy acquisition costs................ 3,083.3 3,221.1 2,858.8
Deferred Federal income taxes.................... (450.8) (26.8) (137.8)
Valuation of investments......................... 417.7 (794.1) (29.8)
Valuation of investment subsidiary............... (665.1) (476.5) (873.1)
Limited risk reinsurance......................... (429.0) (845.9) (920.8)
Issuance of surplus notes........................ (538.9) - -
Postretirement benefits.......................... (343.3) (316.6) (333.7)
Other, net....................................... 4.4 (79.2) (81.9)
GAAP adjustments of Closed Block................. 575.7 578.8 574.2
GAAP adjustments of discontinued GIC
Segment........................................ (184.6) (221.9) (264.6)
----------------- ---------------- -----------------
Total Shareholder's Equity......................... $ 4,000.8 $ 3,194.4 $ 2,950.6
================= ================ =================
</TABLE>
F-36
<PAGE>
18) BUSINESS SEGMENT INFORMATION
The Company has three major business segments: Individual Insurance
and Annuities; Investment Services and Group Pension.
Consolidation/elimination principally includes debt not specific to
any business segment. Attributed Insurance Capital represents net
assets and related revenues and earnings of the Insurance Group not
assigned to the insurance segments. Interest expense related to debt
not specific to any business segment is presented within Corporate
interest expense. Information for all periods is presented on a
comparable basis.
The Individual Insurance and Annuities segment offers a variety of
traditional, variable and interest-sensitive life insurance products,
disability income, annuity products and mutual fund and other
investment products to individuals and small groups. This segment
includes Separate Accounts for certain individual insurance and
annuity products.
The Investment Services segment provides investment fund management,
primarily to institutional clients. This segment includes Separate
Accounts which provide various investment options for group clients
through pooled or single group accounts.
Intersegment investment advisory and other fees of approximately
$124.1 million, $135.3 million and $128.6 million for 1995, 1994 and
1993, respectively, are included in total revenues of the Investment
Services segment. These fees, excluding amounts related to the
discontinued GIC Segment of $14.7 million, $27.4 million and $17.0
million for 1995, 1994 and 1993, respectively, are eliminated in
consolidation.
The Group Pension segment administers traditional participating group
annuity contracts with conversion features, generally for corporate
qualified pension plans, and association plans which provide full
service retirement programs for individuals affiliated with
professional and trade associations.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Individual insurance and annuities................. $ 3,254.6 $ 3,110.7 $ 2,981.5
Group pension...................................... 292.0 359.1 426.6
Attributed insurance capital....................... 61.2 79.4 61.6
----------------- ---------------- -----------------
Insurance operations............................. 3,607.8 3,549.2 3,469.7
Investment services................................ 949.1 935.2 2,792.6
Consolidation/elimination.......................... (34.9) (24.7) (40.5)
----------------- ---------------- -----------------
Total.............................................. $ 4,522.0 $ 4,459.7 $ 6,221.8
================= ================ =================
Earnings (loss) before Federal income taxes
and cumulative effect of accounting change
Individual insurance and annuities................. $ 274.4 $ 245.5 $ 76.2
Group pension...................................... (13.3) 15.8 2.0
Attributed insurance capital....................... 18.7 69.8 49.0
----------------- ---------------- -----------------
Insurance operations............................. 279.8 331.1 127.2
Investment services................................ 161.2 177.5 302.1
Consolidation/elimination.......................... (3.1) .3 .5
----------------- ---------------- -----------------
Subtotal..................................... 437.9 508.9 429.8
Corporate interest expense......................... (27.9) (114.2) (126.1)
----------------- ---------------- -----------------
Total.............................................. $ 410.0 $ 394.7 $ 303.7
================= ================ =================
</TABLE>
F-37
<PAGE>
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets
Individual insurance and annuities..................................... $ 50,328.8 $ 44,063.4
Group pension.......................................................... 4,033.3 4,222.8
Attributed insurance capital........................................... 2,391.6 2,609.8
---------------- -----------------
Insurance operations................................................. 56,753.7 50,896.0
Investment services.................................................... 12,842.9 12,127.9
Consolidation/elimination.............................................. (354.4) (1,614.4)
---------------- -----------------
Total.................................................................. $ 69,242.2 $ 61,409.5
================ =================
</TABLE>
19) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The quarterly results of operations for the years ended December 31,
1995, 1994 and 1993, are summarized below:
<TABLE>
<CAPTION>
THREE MONTHS ENDED,
------------------------------------------------------------------------------
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
----------------- ----------------- ------------------ ------------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
1995
----
Total Revenues................ $ 1,074.7 $ 1,158.4 $ 1,127.1 $ 1,161.8
================= ================= ================== ==================
Net Earnings.................. $ 59.0 $ 94.3 $ 91.2 $ 53.1
================= ================= ================== ==================
1994
----
Total Revenues................ $ 1,107.4 $ 1,075.0 $ 1,153.8 $ 1,123.5
================= ================= ================== ==================
Earnings before Cumulative
Effect of Accounting
Change...................... $ 64.0 $ 68.4 $ 89.1 $ 72.0
================= ================= ================== ==================
Net Earnings.................. $ 36.9 $ 68.4 $ 89.1 $ 72.0
================= ================= ================== ==================
1993
----
Total Revenues................ $ 1,502.2 $ 1,539.7 $ 1,679.4 $ 1,500.5
================= ================= ================== ==================
Net Earnings.................. $ 32.3 $ 47.1 $ 68.8 $ 64.2
================= ================= ================== ==================
</TABLE>
20) INVESTMENT IN DLJ
On December 15, 1993, the Company sold a 61% interest in DLJ to the
Holding Company for $800.0 million in cash and securities. The excess
of the proceeds over the book value in DLJ at the date of sale of
$340.2 million has been reflected as a capital contribution. In 1995,
DLJ completed the initial public offering ("IPO") of 10.58 million
shares of its common stock, which included 7.28 million of the Holding
Company's shares in DLJ, priced at $27 per share. Concurrent with the
IPO, the Company contributed equity securities to DLJ having a market
value of $21.2 million. Upon completion of the IPO, the Company's
ownership percentage was reduced to 36.1%. The Company's ownership
interest will be further reduced upon the issuance of common stock
after the vesting of forfeitable restricted stock units acquired by
and/or the exercise of options granted to certain DLJ employees. At
December 31, 1995, DLJ had options
F-38
<PAGE>
outstanding to purchase approximately 9.2 million shares of DLJ common
stock at $27.00 per share. Options are exercisable over a period of up
to ten years. DLJ restricted stock units represents forfeitable rights
to receive approximately 5.2 million shares of DLJ common stock
through February 2000.
The results of operations and cash flows of DLJ through the date of
sale are included in the consolidated statements of earnings and cash
flow for the year ended December 31, 1993. For the period subsequent
to the date of sale, the results of operations of DLJ are accounted
for on the equity basis and are included in commissions, fees and
other income in the consolidated statements of earnings. The Company's
carrying value of DLJ is included in investment in and loans to
affiliates in the consolidated balance sheets.
Summarized balance sheets information for DLJ, reconciled to the
Company's carrying value of DLJ, are as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets:
Trading account securities, at market value............................ $ 10,911.4 $ 8,970.0
Securities purchased under resale agreements........................... 18,748.2 10,476.4
Broker-dealer related receivables...................................... 13,023.7 11,784.8
Other assets........................................................... 1,893.2 2,030.4
---------------- -----------------
Total Assets........................................................... $ 44,576.5 $ 33,261.6
================ =================
Liabilities:
Securities sold under repurchase agreements............................ $ 26,744.8 $ 18,356.7
Broker-dealer related payables......................................... 12,915.5 10,618.0
Short-term and long-term debt.......................................... 1,717.5 1,956.5
Other liabilities...................................................... 1,775.0 1,285.1
---------------- -----------------
Total liabilities...................................................... 43,152.8 32,216.3
Cumulative exchangeable preferred stock................................ 225.0 225.0
Total shareholders' equity............................................. 1,198.7 820.3
---------------- -----------------
Total Liabilities, Cumulative Exchangeable Preferred Stock and
Shareholders' Equity................................................. $ 44,576.5 $ 33,261.6
================ =================
DLJ's equity as reported............................................... $ 1,198.7 $ 820.3
Unamortized cost in excess of net assets acquired in 1985
and other adjustments................................................ 40.5 50.8
The Holding Company's equity ownership in DLJ.......................... (499.0) (532.1)
Minority interest in DLJ............................................... (324.3) -
---------------- -----------------
The Company's Carrying Value of DLJ.................................... $ 415.9 $ 339.0
================ =================
</TABLE>
F-39
<PAGE>
Summarized statements of earnings information for DLJ reconciled to
the Company's equity in earnings of DLJ is as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Commission, fees and other income...................................... $ 1,325.9 $ 953.5
Net investment income.................................................. 904.1 791.9
Dealer, trading and investment gains, net.............................. 528.6 263.3
---------------- -----------------
Total Revenues......................................................... 2,758.6 2,008.7
Total expenses including income taxes.................................. 2,579.5 1,885.7
---------------- -----------------
Net earnings........................................................... 179.1 123.0
Dividends on preferred stock........................................... 19.9 20.9
---------------- -----------------
Earnings Applicable to Common Shares................................... $ 159.2 $ 102.1
================ =================
DLJ's earnings applicable to common shares as reported................. $ 159.2 $ 102.1
Amortization of cost in excess of net assets acquired in 1985.......... (3.9) (3.1)
The Holding Company's equity in DLJ's earnings......................... (90.4) (60.9)
Minority interest in DLJ............................................... (6.5) -
---------------- -----------------
The Company's Equity in DLJ's Earnings................................. $ 58.4 $ 38.1
================ =================
</TABLE>
21) RELATED PARTY TRANSACTIONS
On August 31, 1993, the Company sold $661.0 million of primarily
privately placed below investment grade fixed maturities to EQ Asset
Trust 1993, a limited purpose business trust, wholly owned by the
Holding Company. The Company recognized a $4.1 million gain net of
related deferred policy acquisition costs, deferred Federal income tax
and amounts attributable to participating group annuity contracts. In
conjunction with this transaction, the Company received $200.0 million
of Class B Notes issued by EQ Asset Trust 1993. These notes have
interest rates ranging from 6.85% to 9.45%. The Class B Notes are
reflected in investments in and loans to affiliates on the
consolidated balance sheets.
F-40
<PAGE>
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements included in Part B.
1. Separate Account No. 301:
- Statements of Assets and Liabilities for the Year Ended
December 31, 1995;
- Statements of Operations for the Year Ended
December 31, 1995
- Statements of Changes in Net
Assets for the Years Ended December 31, 1995 and 1994
- Notes to Financial Statements - Report of Independent
Accountants - Price Waterhouse
2. The Equitable Life Assurance Society of the United States:
- Report of Independent Accountants - Price Waterhouse
- Consolidated Balance Sheets as of December 31, 1995 and
1994
- Consolidated Statements of Earnings for Years Ended
December 31, 1995, 1994 and 1993
- Consolidated Statements of Equity for Years Ended
December 31, 1995, 1994 and 1993
- Consolidated Statements of Cash Flows for Years Ended
December 31, 1995, 1994 and 1993
- Notes to Consolidated Financial Statements
(b) Exhibits.
The following exhibits are filed herewith:
(1) (a) Resolutions of the Board of Directors of The
Equitable Life Assurance Society of the United
States ("Equitable") authorizing the establishment
of the Registrant, previously filed with this
Registration Statement No. 2-74667 on September
19, 1986.
(b) Resolutions of the Board of Directors of Equitable
dated July 17, 1986 authorizing the reorganization
of Separate Account Nos. 301, 302, 303 and 304 into
one continuing separate account, incorporated by
reference to Exhibit 1(d) to the Registration
Statement on Form N-14 of Separate Account 301 of
Equitable and Prism Investment Trust (formerly
Harmony Investment Trust) (No. 33-8802).
2. Not applicable.
3. (a) Form of Sales Agreement, previously filed with this
Registration Statement No. 2-74667 on September 19,
1986.
(b) Sales Agreement among Equitable, Separate Account
No. 301 and Equitable Variable Life Insurance
Company, as principal underwriter for The Hudson
River Trust, previously filed with this
Registration Statement No. 2-74667 on April 29,
1993.
C-1
<PAGE>
(c) Distribution and Servicing Agreement among Equico
Securities, Inc.,("Equico") Equitable and
Equitable Variable dated as of May 1, 1994,
previously filed with this Registration Statement
No. 2-74667 on April 4, 1995.
(d) Distribution Agreement by and between The Hudson
River Trust and Equico dated as of January 1,
1995, previously filed with this Registration
Statement No. 2-74667 on April 4, 1995.
(e) Sales Agreement among Equico, Equitable and
Equitable's Separate Account A, Separate Account
No. 301 and Separate Account No. 51 dated as of
January 1, 1995, previously filed with this
Registration Statement No. 2-74667 on April 4,
1995.
4. (a) (1) Form of group variable annuity contract, as
amended (TSA), previously filed with this
Registration Statement No. 2-74667 on April
24, 1987.
(2) Rider No. PF 94,177 to group variable
annuity contract, as amended (TSA),
previously filed with this Registration
Statement No. 2-74667 on April 15, 1988.
(b) (1) Form of group variable annuity certificate,
as amended (TSA), previously filed with
this Registration Statement No. 2-74667 on
April 24, 1987.
(2) Rider No. PF 94,178 to group variable
annuity certificate, as amended (TSA),
previously filed with this Registration
Statement No. 2-74667 on April 15, 1988.
(c) (1) Rider No. PF 94,189 to group variable
annuity contract, as amended (TSA),
previously filed with this Registration
Statement No. 2-74667 on April 17, 1990.
(2) Rider No. PF 94,188 to group variable
annuity certificate, as amended (TSA),
previously filed with this Registration
Statement. No. 2-74667 on April 17, 1990.
(d) (1) Form of group variable annuity contract, as
amended (IRA), previously filed with this
Registration Statement No. 2-74667 on April
24, 1987.
(2) Rider No. PF 96,000 to group variable
annuity contract, as amended (IRA),
previously filed with this Registration
Statement No. 2-74667 on April 15, 1988.
(3) Rider No. PF 10,000 to group variable
annuity contract, as amended (IRA),
previously filed with this Registration
Statement No. 2-74667 on December 14, 1993.
(e) (1) Form of group variable annuity certificate,
as amended (IRA), previously filed with
this Registration Statement No. 2-74667 on
April 24, 1987.
(2) Rider No. PF 96,100 to group variable
annuity certificate, as amended (IRA),
previously filed with this Registration
Statement No. 2-74667 on April 15, 1988.
C-2
<PAGE>
(3) Rider No. PF 10,001 to group variable
annuity certificate, as amended (IRA),
previously filed with this Registration
Statement No. 2-74667 on December 14, 1993.
(f) Plan of Operations, as amended, previously filed
with this Registration Statement No. 2-74667 on
April 24, 1987.
(5) (a) Form of application for group variable annuity
contract, as amended (TSA), previously filed with
this Registration Statement No. 2-74667 on April
15, 1988.
(b) Form of participant enrollment for group variable
annuity contract, as amended (IRA), previously
filed with this Registration Statement No. 2-74667
on April 15, 1988.
(6) (a) Certificate of incorporation of Equitable
incorporated herein by reference to Exhibit 3(a)
to the Registration Statement on Form S-1 (No.
2-43529).
(b) Copy of the Amended Charter of Equitable, adopted
September 21, 1989, previously filed with this
Registration Statement No. 2-74667 on April 28,
1992.
(c) Form of the Charter of Equitable previously filed
with this Registration Statement No. 2-74667 on
July 22, 1992.
(d) Copy of the Restated Charter of Equitable, adopted
August 6, 1992, previously filed with this
Registration Statement No. 2-74667 on April 29,
1993.
(e) By-Laws of Equitable incorporated herein by
reference to Exhibit 3(b)(2) to Post-Effective
Amendment No. 4 to the Registration Statement in
File No. 2-56232.
(f) By-Laws of Equitable as amended January 9, 1985,
previously filed with this Registration Statement
No. 2-74667 on September 19, 1986.
(g) By-Laws of Equitable, as amended through July 1,
1988, previously filed with this Registration
Statement No. 2-74667 on April 19, 1989.
(h) Form of By-Laws of Equitable previously filed with
this Registration Statement No. 2-74667 on July
22, 1992.
(i) By-Laws of Equitable, as amended through July 22,
1992, previously filed with this Registration
Statement No. 2-74667 on April 29, 1993.
(j) Copy of the Certificate of Amendment of the
Restated Charter of Equitable, adopted November
18, 1993.
7. Not applicable.
C-3
<PAGE>
8. (a) Agreement, dated as of March 15, 1985, between
Integrity Life Insurance Company ("Integrity") and
Equitable for cooperative and joint use of
personnel, property and services, previously filed
with this Registration Statement No. 2-74667 on
September 19, 1986.
(b) Administration and Servicing Agreement, dated as
of May 1, 1987, by and between Equitable and
Integrity, previously filed with this Registration
Statement No. 2-74667 on May 4, 1987.
(c) Amendment, dated September 30, 1988, to
Administration and Servicing Agreement by and
between Equitable and Integrity, previously filed
with this Registration Statement No. 2-74667 on
April 19, 1989.
9. (a) Opinion of Hebert P. Shyer, Executive Vice
President and General Counsel of Equitable,
previously filed with this Registration Statement
No. 2-74667 on November 6, 1983.
(b) Opinion of Hebert P. Shyer, Executive Vice
President and General Counsel of Equitable, as to
the legality of the securities being registered,
previously filed with this Registration Statement
No. 2-74667 on April 24, 1987.
10. (a) Consent of Price Waterhouse LLP.
(b) Powers of Attorney.
11. Not applicable.
12. Not applicable.
13. Not applicable.
27. Financial Data Schedule.
C-4
<PAGE>
Item 25. Directors and Officers of Equitable
Set forth below is information regarding the directors and
principal officers of Equitable. Equitable's address is 787 Seventh Avenue,
New York, New York 10019. The business address of the persons whose names are
preceded by an asterisk is that of Equitable.
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH EQUITABLE
------------------ ----------------------
<S> <C>
DIRECTORS
Claude Bebear Director
AXA S.A.
23, Avenue Matignon
75008 Paris, France
Christopher J. Brocksom Director
AXA Equity & Law
Amersham Road
High Wycombe
Bucks HP 13 5 AL, England
Francoise Colloc'h Director
AXA S.A.
23, Avenue Matignon
75008 Paris, France
Henri de Castries Director
AXA S.A.
23, Avenue Matignon
75008 Paris, France
Joseph L. Dionne Director
The McGraw-Hill Companies
1221 Avenue of the Americas
New York, NY 10020
William T. Esrey Director
Sprint Corporation
P.O. Box 11315
Kansas City, MO 64112
Jean-Rene Fourtou Director
Rhone-Poulenc S.A.
25 Quai Paul Doumer
92408 Courbevoie Cedex
France
Norman C. Francis Director
Xavier University of Louisiana
7325 Palmetto Street
New Orleans, LA 70125
</TABLE>
C-5
<PAGE>
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH EQUITABLE
------------------ ----------------------
<S> <C>
Donald J. Greene Director
LeBouef, Lamb, Greene & MacRae
125 West 55th Street
New York, NY 10019-4513
Anthony J. Hamilton Director
Fox-Pitt, Kelton Limited
35 Wilson Street
London EC2M 2SJ, England
John T. Hartley Director
Harris Corporation
1025 NASA Boulevard
Melbourne, FL 32919
John H.F. Haskell, Jr. Director
Dillion, Read & Co., Inc.
535 Madison Avenue
New York, NY 10022
W. Edwin Jarmain Director
Jarmain Group Inc.
95 Wellington Street West
Suite 805
Toronto, Ontario M5J 2N7,
Canada
G. Donald Johnston, Jr. Director
184-400 Ocean Road
John's Island
Vero Beach, FL 32963
Winthrop Knowlton Director
Knowlton Brothers, Inc.
530 Fifth Avenue
New York, NY 10036
Arthur L. Liman Director
Paul, Weiss, Rifkind, Wharton &
Garrison
1285 Avenue of the Americas
New York, NY 10019
George T. Lowy Director
Cravath, Swaine & Moore
825 Eighth Avenue
New York, NY 10019
</TABLE>
C-6
<PAGE>
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH EQUITABLE
------------------ ----------------------
<S> <C>
Didier Pineau-Valencienne Director
Schneider S.A.
64/70 Avenue Jean-Baptiste Clement
92646 Boulogne
Billancourt CEDEX
France
George J. Sella, Jr. Director
P.O. Box 397
Newton, NJ 07860
Dave H. Williams Director
Alliance Capital Management
Corporation
1345 Avenue of the Americas
New York, NY 10105
OFFICER-DIRECTORS
*James M. Benson President, Chief Executive Officer and Director
*William T. McCaffrey Senior Executive Vice President, Chief Operating
Officer and Director
*Joseph J. Melone Chairman of the Board and Director
OTHER OFFICERS
*Harvey Blitz Senior Vice President and Deputy Chief
Financial Officer
*Kevin R. Byrne Vice President and Treasurer
*Jerry M. de St. Paer Senior Executive Vice President and Chief Financial
Officer
*Gordon G. Dinsmore Senior Vice President
*Alvin H. Fenichel Senior Vice President and Controller
*Michael E. Fisher Senior Vice President
*Paul J. Flora Vice President and Auditor
*Robert E. Garber Executive Vice President and General Counsel
*J. Thomas Liddle, Jr. Senior Vice President and Chief Valuation Actuary
*Michael S. Martin Senior Vice President
</TABLE>
C-7
<PAGE>
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH EQUITABLE
------------------ ----------------------
<S> <C>
*Peter D. Noris Executive Vice President and Chief Investment Officer
*Anthony C. Pasquale Senior Vice President
*Pauline Sherman Vice President, Secretary and Associate General Counsel
Richard V. Silver Senior Vice President and Chief Compliance Officer
1755 Broadway, 2nd floor
New York, New York 10019
*Jose Suquet Executive Vice President and Chief Agency Officer
C-8
</TABLE>
<PAGE>
Item 26. Persons Controlled by or Under Common Control with Equitable
or Registrant
Separate Account No. 301 of The Equitable Life Assurance
Society of the United States (the "Separate Account") is a separate account of
Equitable. Equitable, a New York stock life insurance company, is a wholly
owned subsidiary of The Equitable Companies Incorporated (the "Holding
Company"), a publicly traded company.
The largest stockholder of the Holding Company is AXA S.A. At
12/31/95, AXA S.A. beneficially owned 60.6% of the Holding Company's
outstanding shares of common stock plus convertible preferred stock. AXA S.A.
is able to exercise significant influence over the operations and capital
structure of the Holding Company, and its subsidiaries, including Equitable.
AXA, A French company, is the holding company for an international group of
insurance and related financial services companies, is the principal holding
company.
C-9
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
The Equitable Companies Incorporated (1991) (Delaware)
Donaldson, Lufkin & Jenrette, Inc. (1993) (Delaware) (44.1%) See
Addendum for subsidiaries)
The Equitable Life Assurance Society of the United States (l859)
(New York) (a)(b)
The Equitable of Colorado, Inc. (l983) (Colorado)
Equitable Variable Life Insurance Company (l972) (New York) (a)
FHJV Holdings, Inc. (1990) (Delaware)
EVLICO, Inc. (1995) (Delaware)
EVLICO East Ridge, Inc. 1995) (Delaware)
GP/EQ Southwest, Inc. (1995) (Texas) (5.86%)
Franonom, Inc. (1985) (Pennsylvania)
Frontier Trust Company (1987) (North Dakota)
Gateway Center Buildings, Garage and Apartment Hotel, Inc. (inactive)
(pre-l970) (Pennsylvania)
Equitable Deal Flow Fund, L.P.
Equitable Managed Assets (Delaware)
EREIM LP Associates (99%)
EML Associates, L.P. (19.8%)
ACMC, Inc. (1991) (Delaware)
Alliance Capital Management L.P. (1988) (Delaware)
(46.7% limited partnership interest)
EVCO, Inc. (1991) (New Jersey)
EVSA, Inc. (1992) (Pennsylvania)
Prime Property Funding, Inc. (1993) (Delaware)
Wil Gro, Inc. (1992) (Pennsylvania)
Equitable BJVS, Inc. (1992) (California)
Equitable Rowes Wharf, Inc. (1995) (Massachusetts)
GP/EQ Southwest, Inc. (1995) (Texas) (94.132%)
C-10
<PAGE>
The Equitable Companies Incorporated (cont.)
The Equitable Life Assurance Society of the United States (cont.)
Fox Run, Inc. (1994) (Massachusetts)
Equitable Underwriting and Sales Agency (Bahamas) Limited (1993) (Bahamas)
STCS, Inc. (1992) (Delaware)
CCMI Corporation (1994) (Maryland)
FTM Corporation (1994) (Maryland)
HVM Corporation (1994) (Maryland)
SCTS, Inc. (1992) (Delaware)
Camelback JVS, Inc. (1995) (Arizona)
Equitable Holding Corporation (1985) (Delaware)
Equico Securities, Inc. (l97l) (Delaware) (a) (b)
ELAS Securities Acquisition Corp. (l980) (Delaware)
Equitable Realty Assets Corporation (l983) (Delaware)
100 Federal Street Funding Corporation (Massachusetts)
100 Federal Street Realty Corporation (Massachusetts)
EquiSource, of New York, Inc. (formerly Traditional Equinet Business
Corporation of New York) (1986) (New York)(See Addendum for
subsidiaries.)
Equitable Casualty Insurance Company (l986) (Vermont)
EREIM LP Corp. (1986) (Delaware)
EREIM LP Associates (1%)
EML Associates (.02%)
Six-Pac G.P., Inc. (1990) (Georgia)
Equitable Distributers, Inc. (1988) (Delaware) (a)
Equitable JVS, Inc. (1988) (Delaware)
Astor/Broadway Acquisition Corp. (1990) (New York)
Astor Times Square Corp. (1990) (New York)
PC Landmark, Inc. (1990) (Texas)
- ---------------
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-11
<PAGE>
The Equitable Companies Incorporated (cont.)
The Equitable Life Assurance Society of the United States (cont.)
Equitable JVS II, Inc. (1994) (Maryland)
EJSVS, Inc. (1995) (New Jersey)
Donaldson, Lufkin & Jenrette, Inc. (1985 by EIC; 1993 by EHC)
(Delaware)36.1%) (See Addendum for subsidiaries)
JMR Realty Services, Inc. (1994) (Delaware)
Equitable Investment Corporation (l97l) (New York)
Stelas North Carolina Limited Partnership (50% limited
partnership interest) (l984)
EQ Services, Inc. (1992) (Delaware)
Equitable Agri-Business, Inc. (1984) Delaware
Alliance Capital Management Corporation (l991) (Delaware)
(b) (See Addendum for subsidiaries)
Equitable Capital Management Corporation (b)
Alliance Capital Management L.P. (1988) (Delaware)
(16.6% limited partnership interests)
Equitable JV Holding Corporation (1989) (Delaware)
Equitable Real Estate Investment Management, Inc. (l984)
(Delaware) (b)
Equitable Realty Portfolio Management, Inc. (1984)
(Delaware)
EQK Partners (100% general partnership interest)
Compass Management and Leasing Co. (Formerly known
as EREIM, Inc. (l984) (Colorado)
Equitable Real Estate Capital Markets, Inc. (1987)
(Delaware) (a)
EQ Realty Associates-V, Inc. (1987) (Delaware)
EPPNLP Corp. (1987) (Delaware)
Equitable Pacific Partners Corp. (1987) (Delaware)
Equitable Pacific Partners Limited Partnership
- ---------------
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-12
<PAGE>
The Equitable Companies Incorporated (cont.)
The Equitable Life Assurance Society of the United States (cont.)
EREIM Managers Corp. (1986) (Delaware)
ML/EQ Real Estate Portfolio, L.P.
EML Associates, L.P. (80%)
Astor/Broadway Management Corp. (1990) (New York)
Compass Retail, Inc. (1990) (Delaware)
Compass Management and Leasing, Inc. (1991) (Delaware)
Compass Cayman (1996) (Cayman Islands)
Column Security Associates, Inc. (1993) (Delaware)
Column Financial, Inc. (1993) (Delaware) (50%)
Buckhead Strategic Corp. (1994) (Delaware)
Buckhead Strategic Fund. L.P.
BH Strategic Co. I L.P.
Buckhead Strategic Co. II, L.P.
Buckhead Strategic Co. III, L.P.
Buckhead Strategic Co. IV, L.P.
CJVS, Inc. (1994) (California)
ERE European Corp. L.P. (1994) (Delaware)
A/E European Associates I Limited Partnership
Community Funding, Inc. (1994) (Delaware)
Community Mortgage Fund, L.P. (1994) (Delaware)
Buckhead Strategic Corp. II (1995) (Delaware)
Buckhead Strategic Fund L.P. II
Buckhead Co. III, L.P.
HYDOC, L.L.C.
- ---------------
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-13
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM - NON-REAL ESTATE SUBSIDIARY
OF EQUITABLE HOLDING CORPORATION
HAVING MORE THAN FIVE SUBSIDIARIES
EquiSource of New York, Inc. (formerly Traditional Equinet Business
Corporation of New York) has the following subsidiaries that are brokerage
companies to make available to Equitable Agents within each state traditional
(non-equity) products and services not produced by Equitable:
EquiSource of Delaware, Inc. (1986) (Delaware)
EquiSource of Alabama, Inc. (1986) (Alabama)
EquiSource of Arizona, Inc. (1986) (Arizona)
EquiSource of Arkansas, Inc. (1987) (Arkansas)
EquiSource Insurance Agency of California, Inc. (1987) (California)
EquiSource of Colorado, Inc. (1986) (Colorado)
EquiSource of Hawaii, Inc. (1987) (Hawaii)
EquiSource of Maine, Inc. (1987) (Maine)
EquiSource Insurance Agency of Massachusetts, Inc. (1988) (Massachusetts)
EquiSource of Montana, Inc. (1986) (Montana)
EquiSource of Nevada, Inc. (1986) (Nevada)
EquiSource of New Mexico, Inc. (1987) (New Mexico)
EquiSource of Pennsylvania, Inc. (1986) (Pennsylvania)
EquiSource Insurance Agency of Utah, Inc. (1986) (Utah)
EquiSource of Washington, Inc. (1987) (Washington)
EquiSource of Wyoming, Inc. (1986) (Wyoming)
- ---------------
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-14
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM - OTHER NON-REAL ESTATE SUBSIDIARIES
HAVING MORE THAN FIVE SUBSIDIARIES
Donaldson, Lufkin & Jenrette, Inc. has the following subsidiaries, and
approximately 60 other subsidiaries, most of which are special purpose
subsidiaries (the number fluctuates according to business needs):
Donaldson, Lufkin & Jenrette, Inc. (1985) (Delaware)
Donaldson, Lufkin & Jenrette Securities Corporation (1985)
(Delaware) (a) (b)
Wood, Struthers & Winthrop Management Corporation (1985)
(Delaware) (b)
Autranet, Inc. (1985) (Delaware) (a)
DLJ Real Estate, Inc.
DLJ Capital Corporation (b)
DLJ Mortgage Capitol, Inc. (1988) (Delaware)
Column Financial, Inc. (1993) (Delaware) (50%)
Alliance Capital Management Corporation has the following subsidiaries:
Alliance Capital Management Corporation (1991) (Delaware) (b)
Alliance Capital Management L.P. (1988) (Delaware) (b)
Alliance Capital Management Corporation of Delaware, Inc. (Delaware)
Alliance Fund Services, Inc. (Delaware)
Alliance Capital Management (Japan), Inc. (formerly
Alliance Capital Mgmt. Intl.)
Alliance Fund Distributors, Inc. (Delaware) (a)
Alliance Oceanic Corp. (Delaware) (formerly Alliance
Capital, Ltd.)
Alliance Capital Management Australia Pty. Ltd.
(Australia)
Meiji - Alliance Capital Corp. (Delaware) (50%)
Alliance Capital (Luxembourg) S.A. (99.98%)
Alliance Southern Europe Corp. (Delaware) (inactive)
Alliance Barra Research Institute, Inc. (Delaware) (50%)
Alliance Capital Management Canada, Inc. (Canada) (99.99%)
Alliance Capital Management Limited (United Kingdom)
Pastor Alliance Gestora de Fondas de Pensiones, S.A.
(Spain) (50%)
Dementional Asset Management, Ltd. (U.K.)
Dementional Trust Management, Ltd. (U.K.)
Alliance Capital Global Derivatives Corp. (Delaware)
Alliance Corporate Finance Group, Inc. (Delaware)
- ---------------
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-15
<PAGE>
AXA GROUP CHART
The information listed below is dated as of January 1, 1996;
percentages shown represent voting power. The name of the owner is noted when
AXA indirectly controls the company.
AXA INSURANCE AND REINSURANCE BUSINESS HOLDING
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- -------- ------- ------------
<S> <C> <C>
AXA Assurances Iard France 96.9%
AXA Assurances Vie France 100% by AXA and Uni Europe Vie
Uni Europe Assurance France 100% by AXA and AXA Assurances Iard
Uni Europe Vie France 99.3% by AXA and AXA Assurances Iard
Alpha Assurances Vie France 100%
AXA Direct France 100%
Direct Assurances Iard France 100% by AXA Direct
Direct Assurance Vie France 100% by AXA Direct
AXA Direkt Versicherung A.G. Germany 100% owned by AXA Direct
Axiva France 90.3%
Defense Civile France 95%
Societe Francaise d'Assistance France 51.2% by AXA Assurances Iard
Monvoisin Assurances France 99.92% by different companies and Mutuals
Societe Beaujon France 100%
Lor Finance France 99.9%
Jour Finance France 100% by different companies
Compagnie Auxiliaire pour le Commerce et France 100% by Societe Beaujon
l'Industrie
C.F.G.A. France 99.96% owned by the mutuals and Finaxa
Saint Bernard Diffusion France 89.9%
Sogarep France 95%, (100% with the mutuals)
Argovie France 100% by Axiva and SCA Argos
Finargos France 66.4% owned by Axiva
Astral France 100% by Uni Europe Assurance
Argos France N.S.
</TABLE>
C-16
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- -------- ------- ------------
<S> <C> <C>
Finaxa Belgium Belgium 100%
AXA Belgium Belgium 18.5% by AXA(SA) and 72.5% by Finaxa Belgium
De Kortrijske Verzekering Belgium 99.8%
Juris Belgium 100%
Finaxa Luxembourg Luxembourg 100%
AXA Assurance IARD Luxembourg Luxembourg 99.4%
AXA Assurance Vie Luxembourg Luxembourg 99.4%
AXA Aurora Spain 50%
Aurora Polar SA de Seguros y Reaseguros Spain 99.8% owned by AXA Aurora
AXA Vida SA de Seguros y Reaseguros Spain 99.8% owned by AXA Aurora
AXA Gestion de Seguros y Reaseguros Spain 100% owned by AXA Aurora
AXA Assicurazioni Italy 100%
Eurovita Italy 30% owned by AXA Assicurazioni
AXA Equity & Law plc U.K. 99.9%
AXA Equity & Law Life Assurance Society U.K. 100% by AXA Equity & Law plc
AXA Equity & Law International U.K. 100% owned by AXA Equity & Law plc
AXA Equity & Law Levensverzekeringen Netherlands 100% by AXA Equity & Law plc
AXA Insurance U.K 100%
AXA Global Risks U.K 100% by AXA and Uni Europe Assurance
AXA U.K. U.K. 100%
AXA Canada Canada 100%
Boreal Insurance Canada 100% owned by AXA Canada
AXA Assurances Inc Canada 100% owned by AXA Canada
AXA Insurance Inc Canada 100% owned by AXA Canada
Anglo Canada General Insurance Cy Canada 100% owned by AXA Canada
AXA Pacific Insurance Canada 100% by Boreal Insurance
Boreal Assurances Agricoles Canada 100% by Boreal Insurance
</TABLE>
C-17
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- -------- ------- ------------
<S> <C> <C>
Sime AXA Berhad Malaysia 30%
AXA Sime Investment Holdings Pte Ltd Singapore 50%
AXA Sime Assurance Hong Kong 100% owned by AXA Sime Invt. Holdings Pte
Ltd
AXA Sime Assurance Singapore 100% owned by AXA Sime Invt. Holdings Pte
Ltd
AXA Life Insurance Hong Kong 100%
PT Asuransi AXA Indonesia Indonesia 80%
Equitable Cies Incorp. U.S.A. 60.6% owned by AXA, 44.4% Financiere 45,
3.8%, Lorfinance 7.6% and AXA Equity & Law
Life Association Society 4.8%
Equitable Life Assurance of the USA U.S.A. 100% owned by Equitable Cies Inc
National Mutual Holdings Ltd Australia 51%
The National Mutual Life Association of Australia 100% owned by National Mutual Holdings Ltd
Australasia Ltd
National Mutual International Pty Ltd 74% owned by National Mutual Holdings Ltd
and 26% by The National Mutual Life
Association of Australasia
National Mutual (Bermuda) Ltd Australia 100% owned by National Mutual International
Pty Ltd
National Mutual Asia Ltd Bermudas 54% owned by National Mutual (Bermuda) Ltd
and 20% by Delta Ltd
National Mutual Funds Management (Global) Ltd Australia 100% owned by National Mutual Holdings Ltd
National Mutual Funds Management North USA 100% owned by National Mutual Funds
America Holdings Inc Management (Global) Ltd
Australian Casualty & Life Ltd Australia 100% owned by National Mutual Holdings Ltd
National Mutual Health Insurance Pty Ltd Australia 100% owned by National Mutual Holdings Ltd
AXA Reassurance France 100%
AXA Re Finance France 100% owned by AXA Reassurance
AXA Re Vie France 100% owned by AXA Reassurance
AXA Cessions France 100%
Abeille Reassurances France 100% owned by AXA Reassurance
</TABLE>
C-18
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- -------- ------- ------------
<S> <C> <C>
AXA Re Mexico Mexico 100% owned by AXA Reassurance
AXA Re Asia Singapore 100% owned by AXA Reassurance
AXA Re U.K. Plc U.K. 100% owned by AXA Re U.K. Holding
AXA Re U.K. Holding U.K 100% owned by AXA Reassurance
AXA Re U.S.A. U.S.A 100% owned by AXA America
AXA America U.S.A. 100% owned by AXA Reassurance
International Technology Underwriters Inc U.S.A. 80% owned by AXA America
(INTEC)
AXA Re Life U.S.A. 100% owned by AXA Re Vie
C.G.R.M. Monaco 100% by AXA Reassurance
AXA Life Insurance Japan 100% owned by AXA
Dongbu AXA Life Insurance Co Ltd Korea 50%
AXA Oyak Hayat Sigota Turkey 60%
Oyak Hayat Sigorta Turkey 11%
</TABLE>
C-19
<PAGE>
AXA FINANCIAL BUSINESS
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- -------- ------- ------------
<S> <C> <C>
Compagnie Financiere de Paris (C.F.P.) France 96.9%, (100% with the Mutuals)
AXA Banque France 98.7% owned by C.F.P.
Financiere 78 France 100% owned by C.F.P.
AXA Credit France 65% owned by C.F.P.
AXA Gestion Interessement France 100% owned by C.F.P.
Compagnie Europeenne de Credit (C.E.C.) France 100% owned by C.F.P.
Fidei France 20.7% owned by C.F.P. and 10.8% by AXAmur
Meeschaert Rousselle France 100% owned by Financiere 78
M R Futures SNC France 59% by Meeschaert Rousselle
Opale Derivee Bourse France 89.4% by M.R. Futures and Meeschaert
Rousselle
Anjou Courtage France 70% owned by Meeschaert Rousselle
Axiva Gestion France 100% owned by Axiva
Juri Creances France 100% by different companies
Societe de Placements Selectionnes S.P.S. France 99.3% with the Mutuals
Presence et Initiative France 73% with the Mutuals
Vamopar France 100% owned by Societe Beaujon
Financiere Mermoz France 100%
AXA Asset Management Europe France 100%
AXA Asset Management Partenaires France 100% owned by AXA Asset Management Europe
AXA Asset Management Conseils France 100% owned by AXA Asset Management Europe
AXA Asset Management Distribution France 100% owned by AXA Asset Management Europe
AXA Equity & Law Home Loans U.K. 100% owned by AXA Equity & Law
AXA Equity & Law Commercial Loans U.K. 100% owned by AXA Equity & Law
Alliance Capital Management U.S.A. 59% held by ELAS
</TABLE>
C-20
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- -------- ------- ------------
<S> <C> <C>
Donaldson Lufkin & Jenrette U.S.A. 36.1% owned by ELAS and 44.1% by Equitable
Cies Inc
Cogefin Luxembourg 100% owned by AXA Belgium
Soflinter Beligium 100% owned by AXA Belgium
Financiere 45 France 99.6%
Mofipar France 99.76% owned by Societe Beaujon
ORIA France 100% owned by AXA Millesimes
AXA Oeuvres d'Art France 100% by the Mutuals
AXA Cantenac Brown France 100%
Colisee Acti Finance 1 France 100% owned by Societe Beaujon
Colisee Acti Finance 2 France 100% owned by AXA Assurances Iard Mutuelle
Participations 2001 France 100% owned by Societe Beaujon
Finalor France 100% owned by Societe Beaujon
</TABLE>
C-21
<PAGE>
AXA REAL ESTATE BUSINESS
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- -------- ------- ------------
<S> <C> <C>
C.I.P.M. France 97.6% with the Mutuals
Fincosa France 100% owned by C.I.P.M.
Prebail France 100% owned by Societe Beaujon and C.F.P.
AXAmur France 100% by different companies and mutuals
Parigest France 100% by the Mutuals, C.I.P.M. and Fincosa
Parimmo France 100% by the insurance companies and the
mutuals
S.G.C.I. France 100% with the Mutuals
Transaxim France 99.4% owned by S.G.C.I.
Compagnie Parisienne de Participations France 100% owned by S.G.C.I.
Monte Scopeto France 100% owned by C.P.P.
Matipierre France 100% by different companies
Securimmo France 87% by different companies and mutuals
Paris Orleans France 99.9% by different companies
Colisee Bureaux France 99.4% by different companies
Colisee Premiere France 99.9% by different companies
Colisee Laffitte France 99.8% by Colisee Bureaux
Carnot Laforge France 100% by Colisee Premiere
Parc Camoin France 100% by Colisee Premiere
Delta Point du Jour France 100% owned by Matipierre
Paroi Nord de l'Arche France 100% owned by Matipierre
Falival France 100% owned by AXA Reassurance
Compagnie du Gaz d'Avignon France 99% owned by AXA Assurances Iard
Ahorro Familiar France 40.1% owned by AXA Assurances Iard
Fonciere du Val d'Oise France 100% owned by C.P.P.
Sodarec France 99.9% owned by C.P.P.
Centrexpo France 99.9% owned by C.P.P.
Fonciere de la Vile du Bois France 99.6% owned by Centrexpo
Colisee Seine France 97.4% by different companies
</TABLE>
C-22
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- -------- ------- ------------
<S> <C> <C>
Translot France 99.9% by SGCI
S.N.C. Dumont d'Urville France 100% owned by Colisee Premiere
Colisee Participations France 100% by SGCI
Colisee Federation France 100% by SGCI
Colisee Saint Georges France 100% by SGCI
Drouot Industrie France 50% by SGCI
Colisee Vauban France 99.7% by Matipierre
Fonciere Colisee France 98.9% by Matipierre
AXA Pierre S.C.I. France 97.6% owned by different companies and
Mutuals
AXA Millesimes France 77.8% owned by AXA and the Mutuals
Chateau Suduirault France 100% owned by AXA Millesimes
Diznoko Hongrie 100% owned by AXA Millesimes
Compagnie Fonciere Matignon France 100% by different companies and Mutuals
Equitable Real Estate Investment U.S.A. 100% owned by ELAS
Quinta do Noval Vinhos S.A. Portugal 99.9% owned by AXA Millesimes
</TABLE>
C-23
<PAGE>
OTHER AXA BUSINESS
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- -------- ------- ------------
<S> <C> <C>
A.N.F. France 95.4% owned by Finaxa
SCOR France 10.1% owned by AXA Reassurance
Campagnie du Cambodge France 23% owned by A.N.F.
Lucia France 20.6% owned by AXA Assurance Iard and 8.6%
by the mutuals
Rubis et Cie France 12.7% owned by Uni Europe Assurance
Schneider S.A. France 10%
Eurofin France 31.6% owned by Compangie Financiere de Paris
</TABLE>
C-24
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
NOTES
1. The year of formation or acquisition and state or country of
incorporation of each affiliate is shown.
2. The chart omits certain relatively inactive special purpose real
estate subsidiaries, partnerships, and joint ventures formed to
operate or develop a single real estate property or a group of
related properties, and certain inactive name-holding corporations.
3. All ownership interests on the chart are 100% common stock ownership
except for (a) as noted for certain partnership interests, (b) ACMC,
Inc.'s and Equitable Distributor Inc.'s limited partnership interests
in Alliance Capital Management L.P., (c) as noted for certain
subsidiaries of Alliance Capital Management Corp. of Delaware, Inc.,
(d) Treasurer Robert L. Bennett's 20% interest in Compass Management
and Leasing Co. (Formerly known as EREIM, Inc.), (e) as noted for
certain subsidiaries of AXA (f) The Equitable Companies
Incorporated's 44.1% interest in DLJ and Equitable Holding Corp.'s
36.1% interest in same and (g) DLJ Mortgage Capital, Inc.'s and
Equitable Real Estate Management Inc.'s ownership (50% each) In
Column Financial, Inc.
4. The operational status of the entities shown as having been formed or
authorized but "not yet fully operational" should be checked with the
appropriate operating areas, especially for those that are start-up
situations.
5. The following entities are not included in this chart because, while
they have an affiliation with The Equitable, their relationship is
not the ongoing equity-based form of control and ownership that is
characteristic of the affiliations on the chart, and, in the case of
the first two entities, they are under the direction of at least a
majority of "outside" trustees:
The Equitable Funds
The Hudson River Trust
Separate Accounts
6. This chart was last revised on March 25, 1996.
C-25
<PAGE>
Item 27. Number of Contractowners
As of March 31, 1996 qualified annuity contracts covering 8,383
participants had been issued by the registrant.
Item 28. Indemnification
(a) Indemnification of Principal Underwriter: to the extent
permitted by law of the State of New York and subject to
all applicable requirements thereof, Equitable undertook
to indemnify each of its directors and officers who is
made or threatened to be made a party to any action or
proceeding, whether civil or criminal, by reason of the
fact that he, his testator or intestate, is or was a
director or officer of Equitable.
(b) Undertaking: insofar as indemnification for liability
arising under the Securities Act of 1933 may be permitted
to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the
opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities
(other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any
action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the
securities being registered, the registrant will, unless
in the opinion of its counsel the matter has been settled
by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as
expressed in the Act and will be governed by the final
adjudication of such issue.
Item 29. Principal Underwriters
(a) Equico, a wholly-owned subsidiary of Equitable, is the
principal underwriter and depositor for its Separate
Account No. 301 and Separate Account A, and for Separate
Account I and Separate Account FP of Equitable Variable
Life Insurance Company. On or about May 1, 1996, Equico
will be changing its name to EQ Financial Consultants,
Inc. Equico's principal business address is 1755 Broadway,
NY, NY 10019.
(b) See Item 25.
(c) Not applicable.
C-26
<PAGE>
Item 30. Location of Accounts and Records
The records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and Rules 31a-1 to 31a-3 promulgated
thereunder, are maintained by Equitable at 200 Plaza Drive, Secaucus, New
Jersey 07094
Item 31. Management Services
Not applicable.
Item 32. Undertakings
The Registrant hereby undertakes:
(a) to file a post-effective amendment to this registration
statement as frequently as is necessary to ensure that the
audited financial statements in the registration statement
are never more than 16 months old for so long as payments
under the variable annuity contracts may be accepted;
(b) to include either (1) as part of any application to
purchase a contract offered by the prospectus, a space
that an applicant can check to request a Statement of
Additional Information, or (2) a postcard or similar
written communication affixed to or included in the
prospectus that the applicant can remove to send for a
Statement of Additional Information;
(c) to deliver any Statement of Additional Information and any
financial statements required to be made available under
this Form promptly upon written or oral request.
The Registrant hereby represents that it is relying on the
November 28, 1988 no-action letter (Ref. No. IP-6-88) relating to variable
annuity contracts offered as funding vehicles for retirement plans meeting the
requirements of Section 403(b) of the Internal Revenue Code. Registrant
further represents that it complies with the provisions of paragraphs (1) -
(4) of that letter.
C-27
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Registrant certifies that it meets the requirements of
Securities Act Rule 485(b) for effectiveness of this Registration Statement
and has caused this amended registration statement to be signed on its behalf
in the City and State of New York, on this 26th day of April, 1996.
SEPARATE ACCOUNT NO. 301 of
THE EQUITABLE LIFE ASSURANCE SOCIETY OF
THE UNITED STATES
(Registrant)
By: The Equitable Life Assurance
Society of the United States
By: /s/Naomi J. Weinstein
-------------------------------
Naomi J. Weinstein
Vice President
C-28
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Depositor certifies that it meets the requirements of
Securities Act Rule 485(b) for effectiveness of this Registration Statement
and has caused this amended registration statement to be signed on its behalf
in the City and State of New York, on this 26th day of April, 1996.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF
THE UNITED STATES
(Depositor)
By: /s/Naomi J. Weinstein
------------------------------------
Naomi J. Weinstein
Vice President
As required by the Securities Act of 1933 and the Investment Company
Act of 1940 this amendment to the registration statement has been signed by
the following persons in the capacities and on the date indicated:
<TABLE>
<CAPTION>
PRINCIPAL EXECUTIVE OFFICERS:
<S> <C>
Joseph J. Melone Chairman of the Board and Director
James M. Benson President, Chief Executive Officer and Director
William T. McCaffrey Senior Executive Vice President, Chief Operating
Officer and Director
PRINCIPAL FINANCIAL OFFICER:
Jerry M. de St. Paer Senior Executive Vice President and Chief Financial
Officer
PRINCIPAL ACCOUNTING OFFICER:
/s/ Alvin H. Fenichel
- --------------------------------
Alvin H. Fenichel Senior Vice President and
April 26, 1996 Controller
</TABLE>
DIRECTORS:
Claude Bebear
James M. Benson
Christopher J. Brocksom
Francoise Colloc'h
Henri de Castries
Joseph L. Dionne
William T. Esrey
Jean-Rene Fourtou
Norman C. Francis
Donald J. Greene
Anthony J. Hamilton
John T. Hartley
John H.F. Haskell, Jr.
W. Edwin Jarmain
G. Donald Johnston, Jr.
Winthrop Knowlton
Arthur L. Liman
George T. Lowy
William T. McCaffrey
Joseph J. Melone
Didier Pineau-Valencienne
George J. Sella, Jr.
Dave H. Williams
/s/Naomi J. Weinstein
------------------------
Naomi J. Weinstein
Attorney-in-Fact
April 26, 1996
C-29
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
<S> <C>
EXHIBIT NO. PAGE NO.
6(j) Copy of the Certificate of Amendment of the Restated Charter
of Equitable.
10(a) Consent of Price Waterhouse LLP.
10(b) Powers of Attorney.
27 Financial Data Schedule.
</TABLE>
C-30
CERTIFICATE OF AMENDMENT OF THE RESTATED CHARTER OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Under Section 1206 of the Insurance Law and
Section 805 of the Business Corporation Law of the State of New York
We, the undersigned, Joseph J. Melone, President and Chief Executive
Officer and Molly K. Heines, Vice President and Secretary, hereby certify:
(1). The name of the corporation is The Equitable Life Assurance
Society of the United States (the "Corporation").
(2). The Corporation's Charter was filed in the office of the Insurance
Department of the State of New York on May 10, 1859.
(3). The Charter of the Corporation, as amended and restated by the
Restated Charter effective July 22, 1993, is hereby further amended to
increase the capital of the Corporation from $2,000,000 to $2,500,000 by
increasing the par value of a share of the Common Shares of the
Corporation from $1.00 to $1.25. Article VIII of the Charter which
contains the statement with respect to the capital of the Corporation, is
hereby amended in its entirety to read as follows:
ARTICLE VIII
The amount of the capital of the corporation shall be
$2,500,000, and shall consist of 2,000,000 Common Shares, par value $1.25
per share.
(4) The aforesaid amendment of the Charter of the Corporation was
duly approved by a majority vote of the Board of Directors of the
Corporation at a meeting duly called and held on November 18, 1993 and
was duly consented to in writing by the holder of all of the outstanding
shares of the Corporation on the same date.
IN WITNESS WHEREOF, the undersigned have signed this certificate the
18th day of November 1993, and affirm that the statements made herein are true
under the penalties of perjury.
/s/ Joseph J. Melone
------------------------------------
Joseph J. Melone
President & Chief Executive Officer
/s/ Molly K. Heines
------------------------------------
Molly K. Heines
Vice President & Secretary
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 27 to the Registration
Statement No. 2-74667 on Form N-4 (the "Registration Statement") of our
report dated February 7, 1996, relating to the financial statements of The
Equitable Life Assurance Society of the United States Separate Account No.
301, and our report dated February 7, 1996, relating to the consolidated
financial statements of The Equitable Life Assurance Society of the United
States, which reports appear in such Statement of Additional Information, and
to the incorporation by reference of our reports into the Prospectus which
constitutes part of this Registration Statement. We also consent to the
references to us under the heading "Experts" in such Statement of Additional
Information.
/s/ Price Waterhouse LLP
- ------------------------------
PRICE WATERHOUSE LLP
New York, New York
April 24, 1996
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Claude Bebear
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ James M. Benson
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Christopher Brockson
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Francoise Colloc'h
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Henri de Castries
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Joseph L. Dionne
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ William T. Esrey
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Jean-Rene Fourtou
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Norman C. Francis
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Donald J. Greene
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Anthony J. Hamilton
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ John T. Hartley
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ John H.F. Haskell, Jr.
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ W. Edwin Jarmain
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ G. Donald Johnston, Jr.
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996
/s/ Winthrop Knowlton
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ George T. Lowy
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ William T. McCaffrey
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Joseph J. Melone
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Didier Pineau-Valencienne
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ George J. Sella, Jr.
-------------------------
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Dave H. Williams
-------------------------
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<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
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<INVESTMENTS-AT-COST> 20,904,797
<INVESTMENTS-AT-VALUE> 20,887,161
<RECEIVABLES> 7,413
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 20,894,574
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<OTHER-INCOME> 0
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<NET-INVESTMENT-INCOME> 1,033,317
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<APPREC-INCREASE-CURRENT> 94,984
<NET-CHANGE-FROM-OPS> 1,108,787
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<DISTRIBUTIONS-OF-INCOME> 1,033,317
<DISTRIBUTIONS-OF-GAINS> 75,470
<DISTRIBUTIONS-OTHER> (4,201,128)
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<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
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<INVESTMENTS-AT-VALUE> 6,223,478
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<ARTICLE> 6
<CIK> 0000356076
<NAME> Sep Acct 301 ELAS
<SERIES>
<NUMBER> 04
<NAME> Balanced Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 33,129,950
<INVESTMENTS-AT-VALUE> 34,623,577
<RECEIVABLES> 16,560
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 34,640,137
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 36,196
<TOTAL-LIABILITIES> 36,196
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 34,603,941
<DIVIDEND-INCOME> 1,081,427
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 153,633
<NET-INVESTMENT-INCOME> 927,794
<REALIZED-GAINS-CURRENT> 1,128,385
<APPREC-INCREASE-CURRENT> 3,701,929
<NET-CHANGE-FROM-OPS> 5,758,108
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 927,794
<DISTRIBUTIONS-OF-GAINS> 4,830,314
<DISTRIBUTIONS-OTHER> (3,192,083)
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,566,025
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<PER-SHARE-NAV-BEGIN> 0
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<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000356076
<NAME> Sep Acct 301 ELAS
<SERIES>
<NUMBER> 05
<NAME> High Yield Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1,948,698
<INVESTMENTS-AT-VALUE> 1,885,219
<RECEIVABLES> 101
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,885,320
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,630
<TOTAL-LIABILITIES> 1,630
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,883,690
<DIVIDEND-INCOME> 171,066
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 10,107
<NET-INVESTMENT-INCOME> 160,959
<REALIZED-GAINS-CURRENT> (15,169)
<APPREC-INCREASE-CURRENT> 136,740
<NET-CHANGE-FROM-OPS> 282,530
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 160,959
<DISTRIBUTIONS-OF-GAINS> 121,571
<DISTRIBUTIONS-OTHER> 151,118
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 433,648
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
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<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000356076
<NAME> Sep Acct 301 ELAS
<SERIES>
<NUMBER> 07
<NAME> Global Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 4,224,900
<INVESTMENTS-AT-VALUE> 4,568,966
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 731
<TOTAL-ASSETS> 4,569,697
<PAYABLE-FOR-SECURITIES> 731
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,986
<TOTAL-LIABILITIES> 3,717
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 4,565,980
<DIVIDEND-INCOME> 70,487
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 20,390
<NET-INVESTMENT-INCOME> 50,097
<REALIZED-GAINS-CURRENT> 192,825
<APPREC-INCREASE-CURRENT> 435,771
<NET-CHANGE-FROM-OPS> 678,693
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 50,097
<DISTRIBUTIONS-OF-GAINS> 628,596
<DISTRIBUTIONS-OTHER> 132,511
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 811,204
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000356076
<NAME> Sep Acct 301 ELAS
<SERIES>
<NUMBER> 09
<NAME> Conservative Investors Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 843,042
<INVESTMENTS-AT-VALUE> 886,770
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 5
<TOTAL-ASSETS> 886,775
<PAYABLE-FOR-SECURITIES> 5
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,038
<TOTAL-LIABILITIES> 1,043
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 885,732
<DIVIDEND-INCOME> 32,935
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 7,698
<NET-INVESTMENT-INCOME> 25,237
<REALIZED-GAINS-CURRENT> 10,508
<APPREC-INCREASE-CURRENT> 58,432
<NET-CHANGE-FROM-OPS> 94,177
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 25,237
<DISTRIBUTIONS-OF-GAINS> 68,940
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<NUMBER-OF-SHARES-SOLD> 0
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<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 390,690
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<GROSS-EXPENSE> 0
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<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000356076
<NAME> Sep Acct 301 ELAS
<SERIES>
<NUMBER> 08
<NAME> Growth Investors Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1,068,616
<INVESTMENTS-AT-VALUE> 1,141,446
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 875
<TOTAL-ASSETS> 1,142,321
<PAYABLE-FOR-SECURITIES> 875
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,045
<TOTAL-LIABILITIES> 1,920
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,140,401
<DIVIDEND-INCOME> 23,351
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 7,754
<NET-INVESTMENT-INCOME> 15,597
<REALIZED-GAINS-CURRENT> 35,369
<APPREC-INCREASE-CURRENT> 80,196
<NET-CHANGE-FROM-OPS> 131,162
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 15,597
<DISTRIBUTIONS-OF-GAINS> 115,565
<DISTRIBUTIONS-OTHER> 642,810
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 773,972
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
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<PER-SHARE-DIVIDEND> 0
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<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000356076
<NAME> Sep Acct 301 ELAS
<SERIES>
<NUMBER> 03
<NAME> Intermed Gov Securities Divis
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 6,737,931
<INVESTMENTS-AT-VALUE> 6,242,082
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 759
<TOTAL-ASSETS> 6,242,841
<PAYABLE-FOR-SECURITIES> 22
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,088
<TOTAL-LIABILITIES> 4,110
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 6,238,731
<DIVIDEND-INCOME> 357,259
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 20,122
<NET-INVESTMENT-INCOME> 337,137
<REALIZED-GAINS-CURRENT> (97,203)
<APPREC-INCREASE-CURRENT> 497,322
<NET-CHANGE-FROM-OPS> 737,256
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 337,137
<DISTRIBUTIONS-OF-GAINS> 400,119
<DISTRIBUTIONS-OTHER> (493,364)
<NUMBER-OF-SHARES-SOLD> 0
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<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 243,892
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
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<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000356076
<NAME> Sep Acct 301 ELAS
<SERIES>
<NUMBER> 10
<NAME> Growth & Income Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1,415,871
<INVESTMENTS-AT-VALUE> 1,638,038
<RECEIVABLES> 1,156
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,639,194
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 2,626
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,636,568
<DIVIDEND-INCOME> 39,092
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 11,685
<NET-INVESTMENT-INCOME> 27,407
<REALIZED-GAINS-CURRENT> 24,033
<APPREC-INCREASE-CURRENT> 227,245
<NET-CHANGE-FROM-OPS> 278,685
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 27,407
<DISTRIBUTIONS-OF-GAINS> 251,278
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<NUMBER-OF-SHARES-SOLD> 0
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<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 599,567
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
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<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
