<PAGE>
PAGE 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 56 (File No. 2-29081) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940
Amendment No. 17 (File No. 811-1653) X
IDS Life Variable Annuity Fund A (Individual and Employer)
IDS Tower 10, Minneapolis, Minnesota 55440-0010
(612) 671-3678
Mary Ellyn Minenko - IDS Tower 10, Minneapolis 55440-0010
Approximate Date of Proposed Public Offering
It is proposed that this filing will become effective (check
appropriate box)
immediately upon filing pursuant to paragraph (b)
X on April 29, 1994, pursuant to paragraph (b) of rule 486
60 days after filing pursuant to paragraph (a)
on (date) pursuant to paragraph (a) of rule 486
The Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to section
24-F of the Investment Company Act of 1940. Registrant's Rule
24f-2 Notice for its most recent fiscal year was filed on or about
February 25, 1994.
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IDS Life Variable Annuity Fund A Post-Effective
(Employer and Individual) Amendment No. 56
Registration Form N-1
Cross reference sheet showing location in the prospectus of the
information called for by the items enumerated in Part I of Form
N-1.
Negative answers omitted from prospectus are so indicated.
IDS LIFE VARIABLE ANNUITY FUND A (INDIVIDUAL AND GROUP)
<TABLE><CAPTION>
Page Number Page Number
Item No. In Prospectus Item No. In Prospectus
<S> <C> <S> <C>
1 3 10 27-30
2 5-7 11 NA
3 7-8 12(a) 32
(b) NA
4(a) 31
(b) NA 13(a) 12-13,31
(c) NA (b) NA
(c) NA
5(a) 8 (d) NA
(b) 8-12
(c) 8-12 14(a) 27
(d) 7 (b) NA
6(a) 3,24 15(a) 15-19
(b) 24 (b) 14-15,24,19-22
(c) NA (c) NA
(d) NA
16(a) 5-6,22-24
7(a) 13 (b) 13
(b) 13 (c) NA
(c) 13 (d) NA
(d) NA
17 NA
8 NA
18 33-49
9(a) 31
(b) 27
(c) 29
</TABLE>
<PAGE>
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IDS Life Variable Annuity Fund A
Individual Variable Annuity Contracts and Variable Annuity
Contracts for Employer Plans
Prospectus/April 29, 1994
IDS Life Variable Annuity Fund A (the Fund) is a segregated asset
account of IDS Life Insurance Company (IDS Life). The investment
objective of the Fund is long-term capital appreciation. The Fund
invests primarily in common stocks of U.S. corporations. The Fund
also may invest in preferred stocks and in corporate and government
bonds.
This prospectus describes the following types of individual
non-tax-qualified, variable annuity contracts offered by IDS Life:
1) an annuity for use in connection with non-qualified retirement
or deferred compensation plans or programs adopted by an employer
that are not intended to qualify under Sections 401, 403, or 408 of
the Internal Revenue Code (the Code); 2) an installment payment
deferred annuity; 3) a single payment deferred annuity; and 4) a
single payment immediate annuity.
New contracts are not currently being offered. This prospectus
gives you facts about the Fund. You should read it and keep it
with your investment records for future reference.
The Fund is responsible only for statements included in this
prospectus or in authorized sales material.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
IDS Life Variable Annuity Fund A
IDS Tower 10
Minneapolis, Minnesota 55440-0010
General Information (612) 671-3733
Annuity Service (612) 671-4738
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IDS Life Variable Annuity Fund A
IDS Life Insurance Company
IDS Tower 10
Minneapolis, Minnesota 55440-0010
Prospectus, April 29, 1994
Individual Variable Annuity Contracts and Variable Annuity
Contracts For Employer Plans
Table of Contents Page
Summary of contents........................................... 3
Financial Highlights.......................................... 5
The variable annuity.......................................... 5
Investment objective.......................................... 6
Investments the Fund will not make............................ 7
Portfolio manager............................................. 8
Investment agreements......................................... 8
Brokerage..................................................... 9
The contracts................................................. 10
The fixed account............................................. 10
Automated transfers and partial surrenders.................... 10
Measuring the value of your contract.......................... 11
Valuing Fund assets........................................... 12
The investment factor......................................... 13
Valuing an accumulation unit.................................. 13
Valuing an annuity unit....................................... 13
Annuity payment starting date................................. 14
Table of settlement rates..................................... 14
Annuity payment plans......................................... 14
The charges you pay........................................... 16
Surrendering your contract.................................... 17
Making withdrawals on your contract........................... 17
Special rules if annuitant dies before the
annuity payment starting date................................. 18
What about your taxes?........................................ 18
Voting rights................................................. 19
Board of managers and officers................................ 20
History....................................................... 22
Assets of the Fund............................................ 22
Headquarters.................................................. 22
Ownership of IDS Life and IDS................................. 22
Other affiliations............................................ 22
Custodian..................................................... 22
Insurance regulation.......................................... 23
Financial statements.......................................... 23
<PAGE>
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Summary of Contents
About the variable annuity - The variable annuities are offered for
sale through the Fund, a diversified open-end management investment
company. Variable annuity contracts guarantee regular payments to
contract purchasers. The amount of these payments is influenced by
the performance of the securities in which the Fund invests (page
5).
Financial Highlights - This table shows important financial
information you will need to evaluate the Fund's performance (page
5).
Investment objective - The Fund's investment objective is long-term
capital appreciation in order to build up values and to make
annuity payments. The Fund invests primarily in common stock and
also may invest in preferred stock and in government and corporate
bonds. The Fund may invest in foreign securities, futures
contracts and options on futures contracts. There can be no
guarantee the Fund will achieve its investment objective because
any investment involves risk (page 6).
Portfolio manager - Gordon Fines has managed the Fund since 1989.
He leads the growth team for IDS Financial Corporation (IDS) (page
8).
Investment agreements - The Fund is a segregated asset account of
IDS Life Insurance Company, a stock life insurance company. The
investments of the Fund are managed by IDS Life pursuant to an
Investment Management Agreement. Under this agreement, IDS Life
receives a management fee equal to 0.4 percent of the Fund's
average daily net assets for each year. Pursuant to a Distribution
and Services Agreement, IDS Life also serves as principal
underwriter of the Fund. IDS Life annually pays 0.25 percent of
the Fund's net assets to IDS for investment advice regarding
management of the Fund's investments (page 8).
Contracts - This prospectus describes the following types of
individual non-tax-qualified variable annuity contracts:
o An individual variable annuity contract for use in connection
with non-qualified retirement or deferred compensation plans or
programs adopted by an employer. These plans or programs are not
intended to qualify under Sections 401, 403, or 408 of the Code.
Under this contract, you make an annual purchase payment. This
payment must be at least equal to the larger of an amount which,
when multiplied by the number of contract years between the
application date and the retirement date, equals (1) $3,000 or (2)
$300 a year. This contract also provides several optional
settlement plans which may be elected, except that if at the
annuity payment starting date the accumulation value of the
contract is less than $2,000, the accumulation value may be paid in
a lump sum (page 10);
o A single payment deferred annuity that can be purchased by making
an initial payment of at least $3,000 (page 10);
<PAGE>
PAGE 6
o A single payment immediate annuity that can be purchased by
making an initial payment of at least $3,000 (page 10); and
o An installment payment deferred annuity that may be purchased by
making ten or more annual payments that total at least $300 (page
10).
Who owns the contract? - The annuitant is the owner, unless your
application says otherwise, or if ownership of the contract is
later transferred to someone else. Transfers go into effect when
recorded by IDS Life at its corporate office (page 10).
If the contract described in this prospectus is purchased by an
employer in connection with a deferred compensation plan, the
employer becomes the exclusive owner of all rights under the
contract. Any employee referred to in the contract as an annuitant
is called an annuitant solely for purposes of identification. All
funds payable under the contract are paid to and are the exclusive
property of the employer. No certificates are issued by IDS Life
to any employee with whom an employer has entered into a deferred
compensation agreement. Any employee participating in a deferred
compensation plan should refer to the deferred compensation
agreement with his employer for information on any additional
charges in connection with the plan.
Transfers between accounts - Before the annuity payment starting
date, you may give IDS Life written or telephone instructions to
transfer the contract value of your investment between the fixed
account and the variable account. Transfers must be at least for
$50 (page 10).
Charges you pay - IDS Life will deduct a combined sales and
administrative charge from payments you make into the Fund.
For the individual variable annuity contract intended for use with
non-qualified plans adopted by an employer, the deduction is 5.75
percent of the first $10,000 paid into the Fund, 4 percent of the
next $40,000, and 2 percent of all amounts in excess of $50,000
(page 16).
For the other three individual annuity contracts, if you make a
single payment, the deduction is 8 percent of the first $15,000, 5
percent of the next $10,000, and 2 percent of any further amounts.
If you choose to make installment payments, the deductions average
8.7 percent over the first 10 years. You may lose money if you
surrender your individual installment contract too soon because the
percentage that is deducted is higher in the earlier years (20
percent for the first year of an installment payment contract, 18
percent for the second and third contract years, 7 percent for the
fourth year, and 4 percent thereafter) (page 16).
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PAGE 7
Additionally, IDS Life may deduct for premium taxes. Most states
don't have premium taxes but in those that do, IDS Life may make a
deduction of up to 3.5 percent of the gross purchase payments. You
may receive some money in excess of the amount requested if, as a
result of your surrender, the Fund's state premium tax liability is
reduced (page 17).
Surrendering your contract - You can surrender all or part of a
deferred annuity contract any time before the annuity payment
starting date by giving IDS Life written or telephone instructions.
IDS Life will cash in the number of accumulation units or fixed
dollar accumulation value required for the amount of money you
request. The accumulation units will be given the accumulation
unit value determined on the date your request is received.
However, you can't surrender part of your contract if the remaining
accumulation value is less than $20. There can be no surrenders of
any type after annuity payments have started. You will pay income
tax on the taxable part of your surrender and you may have to pay
an IRS penalty tax on early withdrawal if you surrender part or all
of your contract before reaching age 59-1/2.
A surrender may result in adverse tax consequences. You should
consult a tax adviser before making a surrender request (page 17).
Additional Information
For information about the Fund's history, organization and
headquarters as well as information about IDS Life and IDS see page
22.
<TABLE><CAPTION>
Financial Highlights From Jan 1, 1984 to Dec. 31, 1993
Years ended Dec. 31, 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984
___________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation unit value at
beginning of year $ 9.77 $9.13 $6.10 $5.98 $4.58 $4.26 3.35 2.88 2.35 2.25
___________________________________________________________________________________________________________________________________
Income from investment operations:
Net investment income (loss) (.02) (.03) .02 .06 .05 .05 .03 .01 .03 .05
Net gains (losses) on securities,
both realized and unrealized 0.95 0.67 3.01 .06 1.35 .27 .88 .46 .50 .05*
___________________________________________________________________________________________________________________________________
Total from investment operations 0.93 0.64 3.03 .12 1.40 .32 .91 .47 .53 .10
___________________________________________________________________________________________________________________________________
Accumulation unit value at end
of year $10.70 $9.77 $9.13 $6.10 $5.98 $4.58 $4.26 $3.35 $2.88 $2.35
___________________________________________________________________________________________________________________________________
Total Return** 9.50% 6.97% 49.83% 1.97% 30.60% 7.56% 26.90% 16.34% 22.59% 4.68%
___________________________________________________________________________________________________________________________________
Ratios/Supplemental Data
___________________________________________________________________________________________________________________________________
Total contract owner's equity
at end of year (000 omitted) $241,623 $228,366 $222,205 $155,426 $163,568 $136,141 $140,773 $121,189 $115,657 $105,329
Ratio of operating expenses
to average net assets 1.40% 1.40% 1.41% 1.41% 1.43% 1.40% 1.40% 1.40% 1.40% 1.40%
Ratio of net investment income
(loss) to average net assets (0.17)% (0.30)% 0.22% 0.97% 0.99% 1.22% 0.67% 0.47% 1.24% 2.46%
Portfolio turnover rate 64% 74% 68% 56% 55% 66% 87% 110% 125% 49%
___________________________________________________________________________________________________________________________________
*Amount includes $.17 per unit resulting from the reversal of the prior year's deferred tax liability, due to revisions of the
federal income tax law effective Jan. 1, 1984.
**Total return does not reflect payment of a sales charge.
<PAGE>
PAGE 8
This table pertains to accumulation units only. The value of an annuity unit (assuming a 3.5 percent investment rate) was $4.44 as
of Dec. 31, 1993, $4.19 as of Dec. 31, 1992, $4.06 as of Dec. 31, 1991, $2.80 as of Dec. 31, 1990, $2.84 as of Dec. 31, 1989, $2.25
as of Dec. 31, 1988, $2.17 as of Dec. 31, 1987, $1.77 as of Dec. 31, 1986, $1.57 as of Dec. 31, 1985 and $1.33 as of Dec. 31, 1984.
The value of an annuity unit (assuming a 5 percent investment rate) was $3.06 as of Dec. 31, 1993, $2.93 as of Dec. 31, 1992, $2.88
as of Dec. 31, 1991, $2.02 as of Dec. 31, 1990, $2.08 as of Dec. 31, 1989, $1.67 as of Dec. 31, 1988, $1.63 as of Dec. 31, 1987,
$1.35 as of Dec. 31, 1986, $1.22 as of Dec. 31, 1985 and $1.04 as of Dec. 31, 1984.
The information in this table has been examined by Ernst & Young, independent auditors. The independent auditor's report and
additional information about the performance of the Fund are contained in the Fund's annual report, which if not included with this
prospectus, may be obtained without charge.
</TABLE>
The variable annuity
An annuity is a contract with a life insurance company that
guarantees regular income to the purchaser. Most people buy
annuities to provide income in their retirement years. When most
people think of an annuity, they are thinking of a fixed dollar
annuity. With a fixed dollar annuity, the insurance company bears
the risk of investment gain or loss and guarantees payment of an
exact monthly amount. A variable annuity also guarantees you
regular payments. However, the amount of the payments will
fluctuate with the performance of the securities in which the
annuity fund invests. So if the securities go up in value, you may
receive larger annuity payments. If they go down, the amount of
the annuity payments you receive may be reduced.
Investment objective
The Fund's investment objective is long-term capital appreciation
so that the Fund can build up values and increase the size of
annuity payments. There can be no guarantee the Fund will achieve
its investment objective because any investment involves risk. The
Fund's investment objective can be changed by IDS Life without the
approval of the Fund's contract holders, but IDS Life has no
intention of doing so.
The Fund invests primarily in U.S. common stocks. The Fund also
may invest in preferred stocks and in corporate and government
bonds. Some bonds issued by agencies of the U.S. government are
not supported by the full faith and credit of the United States.
The Fund may invest up to 30 percent of its total assets at the
time of purchase in foreign securities. In selecting foreign
investments, the Fund generally will seek to invest in companies
that it anticipates will experience economic growth at least as
great as that anticipated in the U.S. companies in which it
invests. The securities that the Fund believes offer attractive
opportunities for investment may change from time to time. Foreign
investments may be subject to additional risks, including future
political and economic developments, the possible imposition of
withholding taxes on dividend income, the seizure or
nationalization of companies, the establishment of exchange
controls or the adoption of other restrictions that might adversely
affect an investment.
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PAGE 9
The Fund may invest in the securities of foreign issuers directly
or in the form of American Depository Receipts (ADRs). ADRs are
receipts typically issued by an American bank or trust company that
evidence ownership of underlying securities issued by a foreign
corporation. Since investments in foreign securities will involve
currencies of foreign countries, the value of the Fund's assets as
measured in U.S. dollars may be affected favorably or unfavorably
by changes in currency rates and in exchange control regulations.
The Fund also may enter into forward commitments for the purchase
or sale of foreign currencies, but only in connection with the
settlement of foreign securities transactions and not for
speculative purposes.
The Fund may enter into a forward contract to buy or sell foreign
currencies. For example, if the Fund believes the value of the
U.S. dollar will decline in relationship to a foreign currency, the
Fund will buy the foreign currency at today's price in U.S. dollars
agreeing to pay for the currency at a future date. If the U.S.
dollar declines, then the foreign currency can be sold for more
U.S. dollars than it cost and the Fund realizes a profit. The Fund
will not enter into forward contracts in excess of an offsetting
position of cash and investment in U.S. dollars. If the U.S.
dollar does not decline as expected, the Fund will sustain a loss
because of having entered into the forward contract.
The Fund may buy or write (sell) options traded on any U.S. or
foreign exchange or in the over-the-counter market. It may write
covered call options on individual securities. Options in the
over-the-counter market will be purchased only when the investment
manager believes a liquid secondary market exists for the options
and only from dealers and institutions the investment manager
believes present a minimal credit risk. Some options are
exercisable only on a specific date. In that case, or if a liquid
secondary market does not exist, the Fund could be required to buy
or sell securities at disadvantageous prices, thereby incurring
losses. In covered call options, the seller owns the underlying
security required to be sold upon exercise of the option.
Options can be used to produce incremental earnings, protect gains
and facilitate buying and selling securities. The writer of an
option agrees to buy or sell a security at a fixed price and could
forgo a profit or incur a loss from a change in the market price of
the security. The purchaser of an option pays a premium whether or
not the option is exercised. If a liquid secondary market does not
exist at a particular time, it might not be possible to close an
option position when it is desirable to do so. The Fund may buy
put and call options as a trading technique.
For temporary purposes, the Fund may make certain investments. It
may buy short-term U.S. and Canadian government securities. It may
invest in bank obligations including negotiable certificates of
deposit, non-negotiable fixed time deposits, bankers' acceptances
and documented discount notes (letters of credit). The Fund may
buy short-term corporate notes and obligations rated in the top two
classifications by Standard and Poor's, Moody's or the equivalent.
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PAGE 10
The Fund does not look to buy and sell stocks for the short-term,
but will do so if it is appropriate. The Fund may use repurchase
agreements with broker-dealers registered under the Securities
Exchange Act of 1934 and commercial banks. Repurchase agreements
involve investments in debt securities where the seller agrees to
repurchase the securities at cost plus an agreed-to interest rate
within a specified time. A risk of a repurchase agreement is that
if the seller seeks the protection of the bankruptcy laws the
Fund's ability to liquidate the security involved could be
impaired, and it might subsequently incur a loss if the value of
the securities declines or if the other party to a repurchase
agreement defaults on its obligation.
The Fund may enter into stock index futures contracts traded on any
U.S. or foreign exchange. The Fund may buy or write put and call
options on these futures and on stock indexes. These instruments
may be considered speculative and may expose the Fund to greater
risk. Stock index futures contracts, options on futures contracts
and options on stock indexes must be used as a hedge. This means
they must be used to offset changes in the value of some or all the
Fund's existing investments in stocks or be offset by the Fund's
cash position. The futures contracts and related options may help
the Fund to gain rapid exposure or protect itself from changes in
the market. Successful hedges depend on the adviser's ability to
predict the future direction of stock prices or interest rates. If
the adviser's prediction is incorrect, the Fund would have been
better off if no hedge had been made. Also, skills and techniques
necessary to arrive at such predictions are different from those
needed for predicting changes in individual stocks.
No more than 5 percent of the Fund's net assets can be used at any
one time for good faith deposits on futures and premiums for
options on futures that do not offset existing investment
positions.
For 1993, the Fund's portfolio turnover rate was 64 percent, for
1992, the Fund's portfolio turnover rate was 74 percent and for
1991, it was 68 percent. Portfolio turnover results in brokerage
costs and may affect the taxes the Fund must pay.
The prices of the securities in which the Fund invests fluctuate
daily. This means that the value of your contract goes up and
down. If values go down, your contract may be worth less than what
you paid for it.
Investments the Fund will not make
The Fund observes the following fundamental investment
restrictions, that may not be changed without approval by a vote of
the contract holders:
o The Fund will not borrow amounts in excess of 10 percent of the
gross assets of the Fund taken at cost determined in accordance
with generally accepted accounting principles, and no borrowing
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PAGE 11
shall be undertaken except as a temporary measure for extraordinary
or emergency purposes. The Fund may borrow only from banks. Any
borrowings will require that the Fund maintain the necessary 300
percent asset coverage as set forth under the Investment Company
Act of 1940 (1940 Act).
o The Fund shall not underwrite securities of other issuers.
However, this shall not preclude the purchase of securities for
investment, on original issue or otherwise, and shall not preclude
the acquisition of portfolio securities under circumstances where
the Fund would not be free to sell them without being deemed an
underwriter for purposes of the Securities Act of 1933 (1933 Act)
and without registration of these securities or the filing of a
notification under the 1933 Act, or the taking of similar action
under other securities laws relating to the sale of securities.
o The Fund will not invest in securities that are not readily
marketable without registration or the filing of a notification
under the 1933 Act, or the taking of similar action under other
securities laws relating to the sale of securities, if immediately
after the making of any such investment more than 15 percent of the
Fund's net assets (taken at market or other current value) is
invested in these securities. For valuation, see page 12 of this
prospectus. However, investments in securities not having readily
available market quotations in excess of 10 percent of net assets
may be deemed to be imprudent and the Fund does not intend to
exceed this limitation.
o The Fund does not intend to concentrate investments in any
particular industry, but reserves freedom of action to do so
provided that not more than 25 percent of its total assets, taken
at cost, may be so invested at any one time.
o The Fund may invest up to 10 percent of its total assets, taken
at cost, in real properties, but will not do so as a principal
activity.
o Not more than 5 percent of the Fund's total assets taken at cost
will be invested in securities of any one corporation, government
or political subdivision thereof. This limitation does not apply
to investments in obligations of the United States or in
obligations of any corporation organized under a general act of
Congress if the corporation is an instrumentality of the United
States.
o The Fund will not buy securities of any issuer if immediately
after, and as a result of a purchase, the Fund would own more than
10 percent of the outstanding voting securities of the issuer.
o The Fund will not buy securities of any investment trust or
investment company, except by purchase in the open market where no
commission or profit to a sponsor or dealer results from a purchase
other than customary broker's commission. The Fund does not intend
to invest in these securities but may do so to the extent of not
more than 15 percent of the Fund's net assets (taken at market or
other current value). The Fund will not invest in other mutual
funds.<PAGE>
PAGE 12
o No securities will be bought on margin, nor will the Fund make
any short sales of securities.
o The Fund will not make loans to other persons, except by the
purchase, upon original issuance or otherwise, of a portion of an
issue of bonds, notes, debentures or other securities publicly
distributed or of a type customarily purchased by financial
institutions.
o The Fund will not engage in the purchase and sale of commodities
or commodity contracts.
Portfolio manager
Gordon Fines joined IDS in 1981 and serves as vice president -
Mutual Fund Equity Investments and senior portfolio manager. He
has managed the Fund since 1989. He also leads the growth team for
IDS and manages IDS New Dimensions Fund. From 1985 to 1991, he was
portfolio manager of IDS Managed Retirement Fund.
Investment agreements
IDS Life is the Fund's investment manager. Under the Investment
Management Agreement between IDS Life and the Fund, IDS Life
charges a fee for managing the Fund's investments. This amounts to
0.4 percent of the Fund's average daily net assets for the year.
IDS Life does not keep all of this fee. IDS Life and IDS have an
Investment Advisory Agreement that calls for IDS Life to pay IDS a
fee for serving as investment adviser for the Fund. The fee is
0.25 percent of the Fund's average daily net assets for the year.
In addition to paying its own management fee, the Fund also pays
all brokerage commissions and charges in the purchase and sale of
assets. Brokerage charges are paid to IDS Life for reimbursement
of charges incurred in the purchase and sale of foreign securities.
An Investment Management Agreement and an Advisory Agreement were
approved by the contract holders on Dec. 30, 1983, as a result of
the IDS/American Express merger. Both agreements will continue
each year as long as they are approved:
o by a majority of the Board of Managers of the Fund or a majority
of the outstanding votes of the Fund, and
o by a majority of the Board of Managers of the Fund who are not
"interested persons" of IDS Life or IDS.
All votes by the Board of Managers must be taken at a meeting
called specifically to approve or disapprove the agreements and all
votes must be cast in person.
<PAGE>
PAGE 13
IDS Life may cancel either of its agreements without penalty,
provided it gives 60 days' notice in writing. IDS and the Fund may
do the same. If the Fund decides to cancel its management
agreement with IDS Life, it must have the approval of either the
Board of Managers or a majority of the votes of contract holders.
If there is any assignment of either agreement it ends immediately.
Brokerage
Under the Investment Management Agreement, IDS Life has
responsibility for making the Fund's investment decisions, for
effecting the execution of trades for the Fund's portfolio and for
negotiating any brokerage commissions. IDS Life intends to direct
IDS to execute trades and negotiate commissions on its behalf.
These services are covered by the Investment Advisory Agreement
between IDS and IDS Life. When IDS acts on IDS Life's behalf for
the Fund, it follows the rules described here for IDS Life. Total
brokerage commissions paid by the Fund for each of the last three
years were as follows: for 1993, $327,804, for 1992, $346,938 and
for 1991, $310,246. IDS Life intends to continue to examine and
consider ways available to reduce brokerage costs.
The Investment Management Agreement generally requires IDS Life to
use its best efforts to obtain the best available price and the
most favorable execution. However, brokerage firms may provide
some extra services, including economic or investment research and
analysis. Sometimes it may be desirable to compensate a broker for
research or brokerage services by paying a commission that might
not otherwise be charged, or a commission in excess of what another
broker might charge. The Board of Managers has adopted a policy
authorizing IDS Life to do so to the extent authorized by law, if
IDS Life determines, in good faith, that the amount of commission
is reasonable in relation to the value of the brokerage or research
services provided by the broker.
In purchases and sales of securities involving transactions not
listed on an exchange or in listed securities which are traded off
of the exchange, the Fund will deal with a market maker as
principal, or a broker as agent, depending upon the method believed
to produce the best available price and most favorable execution as
described above. In transactions with a broker who acts as
principal, commissions are generally not stated separately, but are
included in the price of the securities.
IDS gives investment advice to a number of investment companies and
mutual funds. Where more than one of these companies or funds are
interested in the same securities at the same time, IDS carries out
the sale or purchase in a way that all agree in advance is fair.
Sharing in a large transaction may affect the price or volume of
shares acquired. But by these transactions, the Fund hopes to gain
an advantage in execution.
The Fund may pay brokerage commissions to broker-dealer affiliates
of IDS Life, IDS and American Express.
<PAGE>
PAGE 14
The contracts
This prospectus describes the following types of individual
non-tax-qualified variable annuity contracts:
o An individual variable annuity contract offered for sale in
connection with an employer plan that, as of Dec. 8, 1981, had
already purchased one or more Fund annuity contracts. These plans
or programs are not intended to qualify under Sections 401, 403, or
408 of the Code. Your purchase payment for this contract is made
by a number of annual payments;
o Installment payment - deferred annuity. You make purchase
payments in installments over a number of years. Annuity payments
will begin at some future date after all installments have been
paid;
o Single payment - deferred annuity. You make a single purchase
payment. Annuity payments are deferred until some future date; and
o Single payment - immediate annuity. You make a single purchase
payment. Annuity payments will start within 60 days after IDS Life
approves your application.
The fixed account
The fixed account is an additional account to which you may choose
to allocate purchase payments and contract values. It provides
guaranteed values and periodically adjusted interest-crediting
rates.
If you have a deferred annuity contract, you can change your mind
from time to time and apply all or part of your future purchase
payments to the fixed account.
Also, the contract provides that once each contract year, you can
transfer accumulation values of at least $250 from the variable
account to the fixed account or from the fixed account to the
variable account. This right ends 30 days before annuity payments
begin. Presently, IDS Life does not intend to limit the number of
transfers from the variable account to the fixed account; however,
transfers from the fixed account to the variable account are
limited to one per contract year. Just write or telephone IDS Life
and indicate the dollar amount, percentage of, or number of
variable accumulation units to transfer from the Fund or the amount
of fixed dollar accumulation value to transfer to the Fund.
Automated transfers and partial surrenders
IDS Life currently allows deferred annuity contract holders to
establish: (1) automated transfers of contract values between the
fixed account and variable account; or (2) automated partial
surrenders of contract values. Both services can be in effect at
the same time and may be established through a one-time written or
telephone request to IDS Life.
<PAGE>
PAGE 15
The minimum transfer amount from any account or partial surrender
amount from the contract is $50 and such transfer or surrender can
be made on a monthly, quarterly, semi-annual or annual basis. You
may start or stop this service at any time but you must give IDS
Life 30 days' notice to change any automated transfer or surrender
instructions that are currently in place. Automated transfers or
partial surrenders are subject to all of the other contract
provisions and terms including provisions relating to the transfer
of money between accounts. They are not available for 1969 Series
Contracts which were issued prior to May 1971.
Automated transfers from the fixed account may not exceed an amount
that will deplete the fixed account within 24 months. If you have
made any type of transfer from the fixed account, you may not
transfer contract values from the variable account back to the
fixed account until the next contract anniversary.
Automated partial surrenders may be restricted by applicable law in
some contracts. In addition, the payment of additional purchase
payments, if allowed under the contract, while automated partial
surrenders are in effect, may not be appropriate and therefore, is
not permitted.
IDS Life has the authority to honor any telephone requests believed
to be authentic and will use reasonable procedures to confirm that
they are. This includes asking identifying questions and tape
recording calls. As long as the procedures are followed, neither
IDS Life nor its affiliates will be liable for any loss resulting
from fraudulent requests. If IDS Life receives your transfer
and/or variable surrender request before its close of business
(normally 3 p.m. Central time), it will be processed that day.
Calls received after its close of business will be processed the
next business day. At times when the volume of telephone requests
is unusually high, IDS Life will take special measures to ensure
that your call is answered as promptly as possible. A telephone
surrender request will not be allowed within 30 days of a phoned-in
address change.
You may request that telephone withdrawals not be authorized from
your account by writing IDS Life.
Automated partial surrenders may result in income taxes and IRS
penalty taxes being applied to all or a portion of the amount
surrendered. See the sections on Tax charges and Surrendering your
contract (page 17).
Consult your tax adviser if you have any questions about the
taxation of your annuity.
Measuring the value of your contract
Because values are always changing with the performance of the
Fund's investments, it is not easy to measure value with a variable
annuity contract. For this reason we use a technique that involves
"units." The performance of the Fund is measured by changes in the
<PAGE>
PAGE 16
value of a single unit, rather than the total value of the Fund.
There are two kinds of units. As long as you are paying into the
Fund they are called "accumulation units." When you begin to
receive your annuity payments, they change to "annuity units."
o Accumulation units are used to measure the value of deferred
annuity contracts during the period before annuity payments are
made.
number of your value of one total
accumulation X accumulation = accumulation
units unit value
When you buy a deferred annuity contract, your purchase payments
will be credited as accumulation units to your contract.
o Annuity units determine the value of each annuity payment. When
you buy an immediate annuity contract, your purchase payment will
be credited as annuity units to your account.
Under a deferred annuity contract, when annuity payments are to
start, your accumulation value will be converted into annuity
units. From then on, your annuity payments are based on the
current annuity unit value.
number of your X annuity = value of one
annuity units unit value annuity payment
Dates we revalue units - Valuation date
Your units are valued at least once every seven days. At the
present time, your units are revalued each business day at the
close of trading on the New York Stock Exchange (NYSE). The Fund's
securities also will be valued on any business day there is a
sufficient degree of trading in the Fund's portfolio securities
such that the current net asset value of units might be materially
affected (if on that day the Fund is required to sell or redeem
securities). The net asset value per share generally changes each
day. During an emergency the Fund can suspend redemption. Such
emergency situations would occur if:
o The NYSE closes for reasons other than the usual weekend and
holiday closings, or trading on the NYSE is restricted;
o Disposal of the Fund's securities is not reasonably practicable,
or it is not reasonably practicable for the Fund to determine the
fair value of its net assets, or
o The Securities and Exchange Commission under the provisions of
the 1940 Act declares a period of emergency to exist.
Splitting units
IDS Life can split accumulation or annuity units. It will only do
so if it is in the best interests of the contract holders, the
annuitants and IDS Life.
<PAGE>
PAGE 17
The valuation period
The valuation period starts after the close of business on one
valuation date and ends with the close of business on the next
valuation date.
Valuing Fund assets
The net value of the Fund's assets is determined at the start of
each valuation period by taking the total value of the Fund's
assets and subtracting liabilities. The Fund's portfolio
securities are valued as follows:
o Securities traded on national securities exchanges are valued at
the last quoted sales price on that day. If a particular security
hasn't been traded on a certain day, we take the average price
between the last bid (offer to buy) and the last asked (offer to
sell) price.
o Securities with readily available market quotations but without a
listing on an exchange also are valued at the average between the
last bid and the last asked price.
o Short-term securities maturing more than 60 days from the
valuation date are valued at the market price or approximate market
value based on current interest rates. Short-term securities
maturing in 60 days or less but that originally had maturities of
more than 60 days at the acquisition date are valued on an
amortized cost basis using the market value on the 61st day before
maturity. Short-term securities maturing in 60 days or less at the
acquisition date are valued at amortized cost. (Amortized cost is
an approximation of market value determined by systematically
increasing the carrying value of a security if acquired at a
discount, or systematically reducing the carrying value if acquired
at a premium, so that the carrying value is equal to maturity value
on the maturity date.)
o Securities and other assets without a ready market price are
valued at fair value. The Board of Managers is responsible for
using valuation methods which they believe give fair value. In
cases like this, they may use an outside organization to value
these securities. These organizations may use methods that take
into consideration yields, trading characteristics and other market
data.
When we credit your purchase payments
IDS Life credits each purchase payment at the end of the valuation
period during which it received the payment at its corporate
office.
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PAGE 18
The investment factor
On each valuation date, an investment factor is calculated for the
valuation period. This factor measures the Fund's investment
performance during the period. Here is how the investment factor
is determined:
First, the investment income for the period is determined by
combining the Fund's income (interest and any dividends), net
realized and unrealized capital gains or losses on investments and
expenses. Then, the net investment rate is determined by dividing
the Fund's net investment income by the net value of the Fund's
assets at the beginning of the valuation period.
Finally, the investment factor for any valuation period is the sum
of 1 plus the net investment rate. If the Fund has a negative
investment rate for a period, the investment factor will be less
than 1.
Valuing an accumulation unit
Accumulation units are used to measure the value of your contract
during the period before annuity payments begin. The value of an
accumulation unit is determined by multiplying the accumulation
unit value for the last valuation period by the investment factor
for the current period.
Here is an example: Assume the Fund's assets at the start of the
day were $1 million and the investment income for the day was
$2,000. The total expenses were $398.35 and the value of an
accumulation unit the day before was $1.101000.
Step 1. First, the net investment income is determined. This is
income minus expenses or $1,601.65 ($2,000 - $398.35).
Step 2. Next the investment rate is determined. This is the net
investment income divided by the assets at the start of the day or
0.001602 (1,601.65 divided by 1,000,000).
Step 3. The investment factor is one plus the investment rate, or
1.001602.
Step 4. Finally, the value of an accumulation unit is determined
by multiplying yesterday's accumulation unit by the investment
factor. The current value of an accumulation unit comes out to
$1.102764 (1.101000 X 1.001602).
Valuing an annuity unit
When you are ready to receive annuity payments, your accumulation
units are exchanged for annuity units. Annuity units measure each
variable annuity payment. To determine the value of an annuity
unit, the annuity unit value on the last valuation date is
multiplied by the product of (1) the investment factor for the
current period, and (2) the neutralizing factor.
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PAGE 19
The neutralizing factor removes the assumed investment rate that is
built into the variable annuity tables in your contract. The
neutralizing factor for a one-day valuation period is 0.999866,
when the usual 5 percent assumed investment rate is used.
Here is a shortcut for calculating the value of an annuity unit:
Substitute the term "annuity unit" for the term "accumulation unit"
each time it appears in the example used for calculating
accumulation unit values.
Then take the answer in Step 4 ($1.102764) and multiply it by the
neutralizing factor (0.999866). The answer is the current value of
an annuity unit, or $1.102616.
The assumed investment rate is not always 5 percent. For example,
contracts subject to Texas law cannot use more than a 3.5 percent
investment rate. You can request a 3.5 percent investment rate by
sending a written request to IDS Life at its home office. The
current policy of IDS Life is to grant a request received no later
than 30 days before settlement.
Why would you want a lower assumed investment rate? The value of
an annuity unit will rise or fall to the extent that the actual
investment rate for the period is more or less than the assumed
investment rate. A lower assumed rate produces a lower initial
annuity payment, but later payments will rise faster if unit values
are going up. Later payments will fall more slowly if unit values
are dropping.
Annuity payment starting date
For individual deferred contracts paid for in annual installments,
the annuity payment starting date selected must be at least 10
years after the date of your application. You can change the
payment date at any time not less than 30 days before annuity
payments are to start.
For single payment deferred contracts, the annuity payment starting
date must be at least 60 days after the application date.
For immediate contracts, the annuity payment starting date must be
no later than 60 days after the application date.
For employer plans, the annuity starting date must be at least so
many years after the application date that the number of years
multiplied by the annual purchase payment equals or exceeds $3,000.
For all contracts the annuity payment starting date must come
before (whichever one is later):
o the contract anniversary nearest the annuitant's 75th birthday,
or
o the 30th contract anniversary.
<PAGE>
PAGE 20
Table of settlement rates
Settlement rates are based on the Progressive Annuity Table
assuming all births in 1900. To determine the rate applicable at
settlement, we look at the annuitant's birthday nearest the
settlement date and subtract an adjustment according to the
following chart.
Calendar year of Adjustment for
annuitant's birth Male Female
______________________________________________________
Prior to 1920...................... 0 4
1920 through 1939.................. 1 5
1940 through 1954.................. 2 6
1955 through 1969.................. 3 7
After 1969......................... 4 8
______________________________________________________
In Arizona Governing Committee for Tax Deferred Annuity and
Deferred Compensation Plans, etc. et al. v. Nathalie Norris, etc.,
the United States Supreme Court decided that Title VII of the Civil
Rights Act of 1964 prohibits an employer from offering its
employees the option of receiving retirement benefits from one of
several companies selected by the employer, all of which pay a
woman lower monthly retirement benefits than a similarly situated
man. The Court ordered that all retirement benefits derived from
contributions made on and after Aug. 1, 1983, must be calculated
without regard to the sex of the annuitant.
IDS Life has been administering contributions received since Aug.
1, 1983, on the company's in-force annuity contracts to provide
retirement benefits without regard to the sex of the annuitant in
those markets which are affected by the Norris decision. Annuity
contract amendments also have been developed for new contracts in
order to assure continued compliance by employers with the
obligations imposed on them by the Norris decision.
Annuity payment plans
You may select on the application how you want annuity payments
made and when the payments are to begin. If you have a deferred
annuity contract you may change your payment plan at any time at
least 30 days before the annuity payment starting date.
Here are the plans available for all annuity contracts as described
in this prospectus:
Plan A - An annuity is paid each month during the lifetime of the
annuitant. No payments are made after the annuitant's death,
therefore, it is possible to receive only one annuity payment if
the annuitant dies shortly after annuity payments begin.
Plan B - An annuity is paid each month during the lifetime of the
annuitant with the additional guarantee that payments will be made
for at least five, 10, or 15 years as you select.
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PAGE 21
Plan C - An annuity is paid each month during the lifetime of the
annuitant with the additional guarantee that payments will be made
for a period not less than the number of months determined by
dividing the amount applied to Plan C by the amount of the first
monthly annuity payment.
Plan D - An annuity is paid each month during the lifetimes of two
named annuitants. When the first annuitant dies, payments continue
for the lifetime of the survivor. No payments are made after the
survivor's death unless you ask for the Plan D option. This
provides payments for a guaranteed period as in Plan B or Plan C.
A beneficiary of a variable annuity contract may ask for a lump-sum
payment under Plan B or Plan C. IDS Life will not grant the
request if you asked us not to.
If no plan has been selected by the annuity payment starting date,
Plan B with 120 guaranteed monthly payments will be used.
If the value of the contract is less than $2,000 on the annuity
payment starting date, the accumulation value may be paid in a
lump-sum.
Determination of monthly annuity payments for deferred contracts
When annuity payments are to begin, the first monthly variable
annuity payment is computed on the valuation date on or right
before the seventh day before the annuity payment starting date.
The computations are made using the table of settlement rates in
your contract unless an optional table is agreed upon. A different
table is used if you have elected a 3.5 percent assumed investment
rate. The amount of the first payment is divided by the annuity
unit value to give the number of annuity units for your contract.
Each monthly payment after the first one will be determined by
multiplying the number of annuity units by the current annuity unit
value. Payouts made by check will be computed on the valuation
date on or right before the fifth day before the annuity payment
date. Payouts made by a transfer to another IDS account will be
computed on the valuation date on or right before the annuity
payment date.
Here is an example: Assume the variable accumulation value on the
valuation date seven days before the annuity payment starting date
was $30,000. And the plan you selected produces an initial payment
of $6 for each $1,000 of accumulation value.
Ignoring premium taxes, if any, the first payment would be $180 (30
X $6 = $180).
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Now assume the annuity unit value on the valuation date seven days
before the annuity payment starting date is $1.800000. The number
of annuity units for your contract is 100 ($180 divided by
$1.800000 = 100). Ordinarily, the value of the same number of
annuity units will be paid each month.
Determination of monthly annuity payments for immediate contracts
The number of your annuity units is multiplied by the value of one
unit. The value of one unit is determined on the valuation date on
or right before the seventh day before the annuity payment is due.
The following example shows how the number of your annuity units is
determined:
Assume the net purchase payment is $30,000. And the conversion
factor, based on actuarial tables and the contract you selected, is
$5.50.
Assume the value of one annuity unit on the valuation date is
$1.500000.
First divide the net purchase payments by $1,000: $30,000 divided
by $1,000 = $30. Next multiply the answer by the conversion
factor: $30 X $5.50 = $165.
Divide the answer by the value of one unit. This gives the number
of annuity units paid out each month: $165 divided by $1.500000 =
110 units.
The charges you pay
1) Sales and administrative charges
The tables below show the deductions from your purchase payments
for sales and administrative charges. The net amount invested is
the total purchase payments minus the deduction for sales and
administrative charges.
<TABLE><CAPTION>
Single payment contracts
____________________________________________________________________________________________________
Total charge Total deduction
Part of the Deduction Deduction for as percentage of as percentage of
total purchase for sales administrative total purchase net amount
payment charge charge payment invested
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
First $15,000 6% 2% 8% 8.70%
Next $10,000 4 1 5 5.26
Over $25,000 1.5 0.5 2 2.04
____________________________________________________________________________________________________
Installment payment contracts (other than employer plan contracts)
____________________________________________________________________________________________________
Total charge Total deduction
Deduction Deduction for as percentage of as percentage of
for sales administrative total purchase net amount
Contract year charge charge payments invested
____________________________________________________________________________________________________
1st 18% 2% 20% 25.00%
2nd & 3rd 16 2 18 21.95
4th 5 2 7 7.53
5th and after 2 2 4 4.17
If kept through 10 years 6.7 2 8.7 9.53
____________________________________________________________________________________________________
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PAGE 23
Employer plan -- annual purchase contracts
____________________________________________________________________________________________________
Part of Deduction Deduction Total Total
the total for for charge as deduction as
purchase sales administrative percentage of total percentage of net
payment charge charge purchase payments amount invested
____________________________________________________________________________________________________
First $10,000 3.75% 2% 5.75% 6.10%
Next $40,000 2 2 4 4.17
Excess over $50,000 0.5 1.5 2 2.04
____________________________________________________________________________________________________
</TABLE>
Pursuant to a Distribution and Services Agreement with the Fund,
IDS Life is the principal underwriter and performs all sales and
administrative duties. It pays salaries, sales commissions, legal,
accounting, auditing or actuarial fees, and death benefits under
deferred variable annuity contracts. The deductions for sales and
administrative charges came to $100,741 for 1993, $97,658 for 1992
and $102,818 for 1991.
The sales and administrative charge may be reduced or eliminated,
but only to the extent IDS Life anticipates that it will incur
lower sales and administrative expenses or perform fewer services
due to economies arising from the size of the particular group, the
average contribution per participant and the utilization of mass
enrollment procedures. Generally, this will occur with programs
established by an employer for all employees or for all employees
in a class, wherein employees do not individually elect to
participate in the program.
2) Premium taxes
Some states may charge a premium tax in an amount of up to 3.5
percent. If a state requires payment of a premium tax on your
contract, a deduction will be made from your purchase payments or
from your contract's accumulation value.
3) Increases in life expectancy and administrative expenses
IDS Life will bear any expenses that occur because of an increase
in administrative expenses, or because of an increase in the life
expectancy of people receiving variable annuity payments. But it
is not responsible for increases in brokers' fees and transfer
taxes on the purchase and sale of assets.
For bearing this risk, IDS Life charges the Fund a fee equal to 1
percent of the Fund's average daily net assets for the year. This
came to $2,330,759 for 1993, $2,097,372 for 1992 and $1,848,168 for
1991.
If the fee is more than enough to cover the increases, IDS Life
will keep the difference. If the fee is not enough, IDS Life bears
the loss.
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PAGE 24
4) Charge for investment management
For acting as investment manager, IDS Life charges the Fund a fee
equal to 0.4 percent of the Fund's average net assets for the year,
less any brokerage credits. This came to $932,353 for 1993,
$839,059 for 1992 and $739,308 for 1991.
5) Tax charges
IDS Life is taxed as a life insurance company under Subchapter L of
the Code. The Fund is treated as part of IDS Life for federal
income tax purposes. IDS Life must pay all taxes which come about
because of the Fund. For this reason, IDS Life can charge the Fund
for tax charges.
Under current federal income tax law, no taxes are payable with
respect to any income of the Fund.
Surrendering your contract
You can surrender all or part of your annuity contract any time
before the annuity payment starting date. There can be no
surrender in whole or in part after annuity payments have started.
For a discussion of automated partial surrenders, see page 10.
Make your request to IDS Life in writing. IDS Life will cash in
the number of accumulation units for the amount you request. The
units are valued on the day your request is received in our
Minneapolis home office. You cannot surrender part of your
contract if the remaining accumulation value will be less than $20,
and you cannot repay any amount you surrender. A check usually
will be mailed to you within seven days after we process your
request. However, IDS Life can delay sending your check until we
are sure we have received good payment for the accumulation units
you want to surrender.
You may receive extra money if the Fund's state premium tax
liability is reduced as a result of your surrender. If it is, you
will receive either the amount of the reduction or the amount
already deducted from your purchase payments for premium taxes,
whichever is less.
Your surrender may result in adverse tax consequences. Consult a
qualified tax adviser before requesting a surrender.
Making withdrawals on your contract
You can make a temporary withdrawal on your contract any time
before the annuity payment starting date. The least you can
withdraw, including charges, is $250. The most you can withdraw is
the sum of your purchase payments less any amounts you previously
surrendered. There may be no more than one temporary withdrawal
outstanding at any one time. A charge of 2 percent of your
withdrawal will be made at the time of withdrawal in order to cover
the administrative costs of IDS Life.
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PAGE 25
You must pay your withdrawal back within two years. Your repayment
will be used to buy accumulation units at their current price.
However, you cannot make a repayment after the annuity payment
starting date. There are no sales charges. If you do not pay your
withdrawal back within two years, IDS Life will regard it as if
you surrendered that part of your contract.
How do you repay your withdrawal? Inform IDS Life in writing.
Otherwise your regular purchase payments will be used toward
repayment. What is left after you fully repay your withdrawal will
go toward your regular purchase payments. Any amount of your
purchase payment left over after repayment must be at least $10.
o Example: You make a withdrawal of $295 and your next purchase
payment is $300. Instead of applying $295 toward the withdrawal
and $5 toward the purchase payment, we will apply $290 toward the
withdrawal and $10 toward the purchase payment. Now you owe $5 on
your withdrawal. This amount will be taken out next time.
Keep track of all your withdrawals and surrenders. If your
accumulation value falls to zero, your account will be closed.
Special rules if the annuitant dies before the annuity payment
starting date
Under a deferred annuity contract, if the annuitant dies before
annuity payments begin, the beneficiary will receive either:
o the sum of all purchase payments minus surrenders and unrepaid
withdrawals; or
o the accumulation value of the contract, whichever is more.
If the annuitant dies on or after the contract anniversary date
nearest his or her 75th birthday, only the accumulation value will
be paid to the beneficiary.
Your right to cancel installment contracts
You will receive a Statement of Charges and a Notice of
Cancellation Rights within 60 days after the contract is sent to
you. You will have 45 days from the time this notice was sent to
you to cancel your installment contract. You will receive the
current accumulation value of your account plus any amounts
deducted for taxes and charges.
What about your taxes?
Part of the annuity payment you receive is taxed as ordinary income
and part is excluded from income as your investment in the contract
under Section 72 of the Code.
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PAGE 26
The income earned on an annuity contract held by such entities as
corporations, partnerships or trusts generally will be treated as
ordinary income received during that year. This provision is
effective for annuity contract purchase payments made after Feb.
28, 1986.
If you surrender all or part of the contract before your annuity
payment starting date, the federal income tax consequences will
depend on when you made your purchase payments. For amounts
allocable to purchase payments made after Aug. 13, 1982, the amount
of any partial surrender will be taxed as ordinary income to the
extent that contract value exceeds the owner's investment in the
contract. In addition, a 10 percent penalty tax will be imposed on
the amount of any surrender proceeds which is includable in the
owner's income. However, the penalty tax would not affect any
surrender occurring after (1) the owner reaches age 59-1/2, (2)
death of the owner, (3) the owner's disability, or (4) if the
distribution is part of a series of substantially equal periodic
payments over the life or life expectancy of the owner (or joint
lives or life expectancy of the owner and beneficiary).
Any amount received as a withdrawal and the value of any part of an
annuity contract pledged or assigned as collateral is taxed as a
cash withdrawal to the extent allocable to investment in annuity
contracts after Aug. 13, 1982.
Amounts allocable to earlier purchase payments will be taxed as
ordinary income to the extent the amount surrendered exceeds the
owner's investment in the contract and will not be subject to the
10 percent penalty tax.
Unlike life insurance proceeds, the death benefit under an annuity
contract is not tax exempt. The gain, if any, is taxable as
ordinary income to the beneficiary in the year(s) he or she
receives the payments.
This information is based upon IDS Life's understanding of federal
income tax laws as they are currently interpreted. NO
REPRESENTATION IS MADE REGARDING THE LIKELIHOOD OF CONTINUATION OF
CURRENT FEDERAL INCOME TAX LAWS OR THE CURRENT INTERPRETATIONS OF
THE INTERNAL REVENUE SERVICE.
The contract is intended to qualify as an annuity for federal
income tax purposes. To that end, the provisions of the contract
are to be interpreted to ensure or maintain such tax qualification,
notwithstanding any other provisions of the contract. We reserve
the right to amend the contract to reflect any clarifications that
may be needed or are appropriate to maintain such qualification or
to conform the contract to any applicable changes in the tax
qualification requirements. We will send you a copy of any such
amendment.
Since federal tax consequences cannot be anticipated with respect
to all situations, you should consult a qualified tax adviser
regarding your own circumstances.
<PAGE>
PAGE 27
Voting rights
Voting rights of contract holders are granted and defined by the
regulations of the Fund. To the extent permitted under the 1940
Act, these voting rights may be modified by IDS Life without
submission to a vote of a majority of the outstanding voting units.
Variable contract holders can vote on:
o any change in investments the Fund will not make;
o the approval of and any changes to the investment management and
advisory agreements;
o the election of the Board of Managers; and
o the acceptance of the Fund's independent auditors.
A variable contract holder with accumulation units has a number of
votes equal to the number of accumulation units owned. Under a
contract where annuity payments have started, the number of votes
is determined by dividing the present value of all future annuity
payments by the value of one accumulation unit on the record date.
So there may be a gradual decline in the number of votes to which a
contract holder is entitled as annuity payments continue to be made
under the contract. The record date will be set by the Board of
Managers not more than 60 days before the regular meeting or any
special meeting of variable contract holders. Cumulative voting is
not authorized.
Management
Members of the Board of Managers and officers of the Fund
Richard W. Kling*
Chairman of the Board of Managers
IDS Tower 10
Minneapolis, MN
Director since February 1984; President since March 1994.
Executive Vice President, Marketing and Products from January 1988
to March 1994. Vice President, IDS, since January 1988. Director
of IDS Life Series Fund, Inc. and Member of the Board of Managers
of IDS Life Variable Annuity Funds A & B.
Edward Landes
Member of the Board of Managers
30 South 9th Street
Minneapolis, MN
Retired, Former Development Consultant.
<PAGE>
PAGE 28
Janis E. Miller*
Member of the Board of Managers
IDS Tower
Minneapolis, MN
Director and Executive Vice President - Variable Assets, IDS Life,
since March 1994; Vice President, IDS, since June 1990. Director;
Mutual Funds Product Development and Marketing, IDS, from May 1987
to May 1990. Director of IDS Life Series Fund, Inc. since March
1994.
Carl N. Platou
Member of the Board of Managers
312 South 6th Street
Minneapolis, MN
President Emeritus and Chief Executive Officer, Fairview Hospital
and Healthcare Services.
Gordon H. Ritz
Member of the Board of Managers
404 WCCO Radio Building
Minneapolis, MN
President, Con Rad Broadcasting Corp. (radio broadcasting);
Director, Sunstar Foods and Mid-America Publishing.
Morris Goodwin, Jr.*
Vice President and Treasurer
IDS Tower
Minneapolis, MN
Vice President and Corporate Treasurer, IDS, since July 1989; Chief
Financial Officer and Treasurer, IDS Bank & Trust, from January
1988 to July 1989.
Louis C. Fornetti*
Vice President
IDS Tower
Minneapolis, MN
Director, IDS Life, since March 1994; Senior Vice President and
Director, IDS, since February 1985.
Colleen Curran*
Secretary
IDS Tower
Minneapolis, MN
Senior Counsel and Secretary, IDS, since 1990; Assistant Vice
President, IDS, since 1987.
<PAGE>
PAGE 29
William A. Stoltzmann*
General Counsel and Assistant Secretary
IDS Tower
Minneapolis, MN
Vice President and Assistant General Counsel, IDS, since
November 1985.
Robert O. Schneider*
Controller
IDS Tower
Minneapolis, MN
Assistant Controller-Corporate Reports and Equity Administration,
IDS Life. Controller of IDS Life Capital Resource Fund, IDS Life
Aggressive Growth Fund, IDS Life International Equity Fund, IDS
Life Special Income Fund, Inc., IDS Life Managed Fund, Inc. and IDS
Life Moneyshare Fund, Inc.
*Interested person of the Fund by reason of being an employee of
IDS Life or IDS.
You vote at each regular meeting for the Fund's Board of Managers.
Members who are not salaried employees of IDS Life or one of its
affiliates receive up to $4,000 annually for serving on the Board.
All officers of the Fund are salaried employees of IDS Life or IDS
and receive no remuneration from the Fund. The officers and
managers of the Fund aggregately hold less than 1 percent of the
outstanding voting units.
Directors and officers of IDS Life Insurance Company*
The Directors:
Louis C. Fornetti, 44
Director since March 1994; Senior Vice President and Director, IDS,
since February 1985.
David R. Hubers, 51
Director since September 1989; President and Chief Executive
Officer, IDS, since August 1993 and Director, IDS, since January
1984. Senior Vice President, Finance, and Chief Financial Officer,
IDS, from January 1984 to August 1993.
Richard W. Kling, 53
Director since February 1984; President since March 1994.
Executive Vice President, Marketing and Products from January 1988
to March 1994. Vice President, IDS, since January 1988. Director
of IDS Life Series Fund, Inc. and Member of the Board of Managers
of IDS Life Variable Annuity Funds A & B.
Paul F. Kolkman, 47
Director since May 1984; Executive Vice President since March 1994;
Vice President, Finance from May 1984 to March 1994; Vice
President, IDS, since January 1987.
<PAGE>
PAGE 30
Peter A. Lefferts, 52
Director and Executive Vice President, Marketing since March 1994;
Senior Vice President and Director, IDS, since February 1986.
Janis E. Miller, 42
Director and Executive Vice President, Variable Assets since March
1994; Vice President, IDS, since June 1990. Director, Mutual Funds
Product Development and Marketing, IDS, from May 1987 to May 1990.
Director of IDS Life Series Fund, Inc. and Manager of IDS Life
Variable Annuity Funds A & B.
James A. Mitchell, 52
Chairman of the Board since March 1994; Director since July 1984;
Chief Executive Officer since November 1986; President from July
1984 to March 1994; Executive Vice President, IDS, since March
1994; Director, IDS, since July 1984. Senior Vice President, IDS,
from July 1984 to March 1994.
Barry J. Murphy, 43
Director and Executive Vice President, Client Service since March
1994; Senior Vice President, Operations, Travel Related Services
(TRS), a subsidiary of American Express Company, since July 1992;
Vice President, TRS, from November 1989 to July 1992; Chief
Operating Officer, TRS, from March 1988 to November 1989.
Stuart A. Sedlacek, 36
Director and Executive Vice President, Assured Assets since March
1994; Vice President, IDS, since September 1988.
Melinda S. Urion, 40
Director and Controller since September 1991; Executive Vice
President since March 1994; Vice President and Treasurer from
September 1991 to March 1994; Vice President, IDS, since September
1991; Chief Accounting Officer, IDS, from July 1988 to September
1991.
Officers Other Than Directors
Morris Goodwin Jr., 42
Vice President and Treasurer since March 1994; Vice President and
Corporate Treasurer, IDS, since July 1989; Chief Financial Officer
and Treasurer, IDS Bank & Trust, from January 1988 to July 1989.
William A. Stoltzmann, 45
Vice President, General Counsel and Secretary since 1985.
*The address for all of the directors and principal officers is:
IDS Tower 10, Minneapolis, MN 55440-0010.
<PAGE>
PAGE 31
Other Information
History
The Fund is an open-end diversified investment company as defined
under the 1940 Act. It was organized as a segregated asset account
by IDS Life under Minnesota law on May 10, 1968.
IDS Life is a stock life insurance company organized under
Minnesota law on Aug. 7, 1957. It conducts a conventional life
insurance business in addition to its variable annuity business.
IDS Life Insurance Company is not a bank and the securities it
offers are not backed or guaranteed by any bank nor are they
insured by the FDIC.
Assets of the Fund
On Dec. 31, 1993, there were 12,251 outstanding contracts. The
assets were $243,188,524.
The assets of the Fund are held solely for the variable contract
holders. The assets are not used to pay liabilities of any other
business of IDS Life.
Headquarters
The corporate office of IDS Life is located in the IDS Tower in
Minneapolis, Minnesota.
Ownership of IDS Life and IDS
All of the capital stock of IDS Life is owned by IDS Financial
Corporation. On Jan. 12, 1984, Investors Diversified Services,
Inc., of which IDS Life was a wholly owned subsidiary, was merged
into a wholly owned subsidiary of American Express Company to form
IDS Financial Services Inc. On Jan. 1, 1987, IDS Financial
Services Inc. changed its name to IDS Financial Corporation. IDS
serves as investment adviser for the Fund. IDS is an investment
adviser for a number of open-end investment companies and for its
subsidiaries. The headquarters of IDS is IDS Tower, Minneapolis,
Minnesota.
Other affiliations
IDS Life also distributes different variable annuity contracts
including: IDS Life Variable Annuity Fund B (Fund B), IDS Life
Variable Retirement Annuity, IDS Life Combination Retirement
Annuity, IDS Life Flexible Annuity, IDS Life Real Estate Variable
Annuity, IDS Life Group Variable Annuity Contract and IDS Life
Employee Benefit Annuity.
The members of the Fund's Board of Managers also serve on the Board
of Managers of Fund B and on the Board of Directors of IDS Life
Series Fund, Inc.
<PAGE>
PAGE 32
IDS Life manages Fund A, Fund B and six mutual funds existing
within the IDS MUTUAL FUND GROUP advised by IDS. These six mutual
funds are available for purchase only through a Variable Retirement
Annuity Contract, a Combination Retirement Annuity Contract or a
Flexible Annuity Contract which are distributed by IDS Life and its
subsidiary, IDS Life Insurance Company of New York, plus a Group
Variable Annuity Contract and an Employee Benefit Annuity Contract
which are distributed by IDS Life. The names of these funds are:
IDS Life Capital Resource Fund, IDS Life Aggressive Growth Fund,
IDS Life International Equity Fund, IDS Life Special Income Fund,
Inc., IDS Life Managed Fund, Inc. and IDS Life Moneyshare Fund,
Inc. IDS Life also manages IDS Life Series Fund, Inc., which is
available for purchase only through policies distributed by IDS
Life and IDS Life Insurance Company of New York.
Custodian
Pursuant to a custodian agreement, the Fund's securities and cash
are held by IDS Trust Company, 1200 Norstar Center West, 625
Marquette Ave., Minneapolis, MN 55402-2307.
The custodian has entered into a sub-custodian arrangement with
First Bank National Association, (First Bank) 180 E. Fifth St., St.
Paul, MN 55101-1631.
As part of this arrangement, portfolio securities purchased outside
the United States are maintained in the custody of various foreign
branches of First Bank or in such other financial institutions as
may be permitted by law and by the Fund's sub-custodian agreement.
Insurance regulation
IDS Life is regulated by the Department of Commerce of the State of
Minnesota. From time to time, the department examines the
company's liabilities and reserves and certifies their correctness.
IDS Life also is subject to insurance laws and regulations of other
states where it is licensed to do business.
Financial statements
The Report of Independent Auditors and the Financial Statements,
including Notes to Financial Statements and the schedule of
investments in securities, contained in the 1993 Annual Report to
IDS Life Variable Annuity Fund A contract holders, pursuant to
Section 30(d) of the 1940 Act, are hereby incorporated in this
Prospectus by reference. No other portion of the Annual Report,
however, is incorporated by reference.
<PAGE>
PAGE 33
IDS Life Financial Information
The financial statements shown below are those of the insurance
company and not those of the Fund. They are included in the
prospectus for the purpose of informing investors as to the
financial condition of the insurance company and its ability to
carry out its obligations under the variable annuity contracts.
IDS Life Insurance Company
<TABLE><CAPTION>
Consolidated Balance Sheets Dec. 31, 1993 Dec. 31, 1992
Assets (Thousands)
______________________________________________________________________________________________________________________________
<S> <C> <C>
Investments
Fixed maturities (Fair value: 1993, $20,425,979; 1992, $17,896,374) $19,392,424 $17,185,879
Mortgage loans on real estate (Fair value: 1993, $2,125,686; 1992, $1,785,970) 2,055,450 1,688,490
Policy loans 350,501 320,016
Other investments 56,307 51,955
______________________________________________________________________________________________________________________________
Total investments 21,854,682 19,246,340
______________________________________________________________________________________________________________________________
Cash and cash equivalents 146,281 73,563
Receivables:
Reinsurance 55,298 -
Amounts due from brokers 5,719 20,202
Other accounts receivable 21,459 20,095
Premiums due 1,329 1,361
______________________________________________________________________________________________________________________________
Total receivables 83,805 41,658
______________________________________________________________________________________________________________________________
Accrued investment income 307,177 285,120
Deferred policy acquisition costs 1,652,384 1,440,875
Other assets 21,730 18,672
Assets held in segregated asset accounts, primarily common stocks at market 8,991,694 6,189,545
______________________________________________________________________________________________________________________________
Total assets $33,057,753 $27,295,773
______________________________________________________________________________________________________________________________
Liabilities and Stockholder's Equity
______________________________________________________________________________________________________________________________
Liabilities:
Fixed annuities - future policy benefits $18,492,135 $16,342,419
Universal life-type insurance - future policy benefits 2,753,455 2,567,687
Traditional life-type insurance - future policy benefits 210,205 210,886
Disability income, health and long-term care insurance - future policy benefits 185,272 104,896
Policy claims and other policyholders' funds 44,516 49,899
Deferred federal income taxes 43,620 87,913
Amounts due to brokers 351,486 258,654
Other liabilities 292,024 235,509
Liabilities related to segregated asset accounts 8,991,694 6,189,545
______________________________________________________________________________________________________________________________
Total liabilities 31,364,407 26,047,408
______________________________________________________________________________________________________________________________
Stockholder's equity:
Capital stock, $30 per value per share; 100,000 shares authorized, issued and outstanding 3,000 3,000
Additional paid-in capital 222,000 22,000
Net unrealized appreciation on equity securities 114 214
Retained earnings 1,468,232 1,223,151
______________________________________________________________________________________________________________________________
Total stockholder's equity 1,693,346 1,248,365
______________________________________________________________________________________________________________________________
Total liabilities and stockholder's equity $33,057,753 $27,295,773
Commitments and contingencies (Note 6)
______________________________________________________________________________________________________________________________
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
PAGE 34
<TABLE><CAPTION>
Consolidated Statements of Income Years ended Dec. 31,
1993 1992 1991
(Thousands)
__________________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Revenues:
Premiums
Traditional life insurance $ 48,137 $ 49,719 $ 49,706
Disability income and long-term care insurance 79,108 64,660 52,632
__________________________________________________________________________________________________________________________________
127,245 114,379 102,338
Policyholder and contractholder charges 184,205 156,368 137,202
Management and other fees 120,139 84,591 61,142
Net investment income 1,783,219 1,616,821 1,422,866
Net loss on investments (6,737) (3,710) (5,837)
__________________________________________________________________________________________________________________________________
Total revenues 2,208,071 1,968,449 1,717,711
__________________________________________________________________________________________________________________________________
Benefits and expenses:
Death and other benefits - traditional life insurance 32,136 34,139 30,170
Death and other benefits - universal life-type insurance
and investment contracts 49,692 42,174 38,529
Death and other benefits - disability income, health and
long-term care insurance 13,148 10,701 8,242
Decrease in liabilities for future policy benefits -
traditional life insurance (4,513) (5,788) (6,425)
Increase in liabilities for future policy benefits -
disability income, health and long-term care insurance 32,528 27,172 19,700
Interest credited on universal life-type insurance and investment contracts 1,218,647 1,188,379 1,098,281
Amortization of deferred policy acquisition costs 211,733 140,159 116,078
Other insurance and operating expenses 241,974 215,692 153,669
__________________________________________________________________________________________________________________________________
Total benefits and expenses 1,795,345 1,652,628 1,458,244
__________________________________________________________________________________________________________________________________
Income before income taxes 412,726 315,821 259,467
Income taxes 142,647 104,651 77,430
__________________________________________________________________________________________________________________________________
Net income $ 270,079 $ 211,170 $ 182,037
__________________________________________________________________________________________________________________________________
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
PAGE 35
<TABLE><CAPTION>
Consolidated Statements of Cash Flows Years ended Dec. 31,
1993 1992 1991
(Thousands)
__________________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Cash flows from operating activities:
Net income $ 270,079 $ 211,170 $ 182,037
Adjustments to reconcile net income to net cash provided by operating activities:
Issuance - policy loans, excluding universal life-type insurance (35,886) (32,881) (29,309)
Repayment - policy loans, excluding universal life-type insurance 29,557 26,750 19,928
Change in reinsurance receivable (55,298) - -
Change in other accounts receivable (1,364) (4,772) (1,558)
Change in accrued investment income (22,057) (15,853) (26,022)
Change in deferred policy acquisition costs, net (211,509) (229,252) (175,442)
Change in liabilities for future policy benefits for traditional life, disability
income, health and long-term care insurance 79,695 21,384 13,275
Change in policy claims and other policyholders' funds (5,383) (1,347) 11,801
Change in deferred federal income taxes (44,237) (30,385) (29,207)
Change in other liabilities 56,515 88,997 45,323
Amortization of premium (accretion of discount), net (27,438) (4,289) 19,726
Net loss on investments 6,737 3,710 5,837
Premiums related to universal life-type insurance 397,883 312,621 264,504
Surrenders and death benefits related to universal life-type insurance (255,133) (166,162) (109,307)
Interest credited to account balances related to universal life-type insurance 156,885 161,873 160,585
Policyholder and contractholder charges, non-cash (115,140) (100,975) (96,211)
Other, net (1,907) (10,647) 2,258
__________________________________________________________________________________________________________________________________
Net cash provided by operating activities $ 221,999 $ 229,942 $ 258,218
__________________________________________________________________________________________________________________________________
Cash flows from investing activities:
Acquisition of investments, excluding policy loans $(7,102,546) $(7,001,348) $(5,518,481)
Maturities, sinking fund payments and calls of investments, excluding policy loans 3,931,819 2,700,479 838,589
Sale of investments, excluding policy loans 613,571 1,073,950 2,274,401
Change in amounts due from brokers 14,483 289,335 (134,312)
Change in amounts due to brokers 92,832 42,182 72,382
__________________________________________________________________________________________________________________________________
Net cash used in investing activities (2,449,841) (2,895,402) (2,467,421)
__________________________________________________________________________________________________________________________________
Cash flows from financing activities:
Considerations received related to investment contracts 2,843,668 2,821,069 2,316,333
Surrenders and death benefits related to investment contracts (1,765,869) (1,168,633) (871,808)
Interest credited to account balances related to investment contracts 1,071,917 1,026,506 937,696
Issuance - universal life-type insurance policy loans (70,304) (72,007) (76,010)
Repayment - universal life-type insurance policy loans 46,148 40,351 31,860
Capital contribution from parent 200,000 - -
Cash dividend to parent (25,000) (20,000) (20,000)
__________________________________________________________________________________________________________________________________
Net cash provided by financing activities 2,300,560 2,627,286 2,318,071
__________________________________________________________________________________________________________________________________
Net increase (decrease) in cash and cash equivalents 72,718 (38,174) 108,868
Cash and cash equivalents at beginning of year 73,563 111,737 2,869
__________________________________________________________________________________________________________________________________
Cash and cash equivalents at end of year $ 146,281 $ 73,563 $ 111,737
__________________________________________________________________________________________________________________________________
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
PAGE 36
Notes to Consolidated Financial Statements ($ Thousands)
Dec. 31, 1993, 1992, 1991
1. Summary of significant accounting policies
Nature of business
IDS Life Insurance Company (the Company) is engaged in the
insurance and annuity business. The Company sells various forms of
fixed and variable individual life insurance, group life insurance,
individual and group disability income insurance, long-term care
insurance, and single and installment premium fixed and variable
annuities.
Basis of presentation
The Company is a wholly owned subsidiary of IDS Financial
Corporation (IDS), which is a wholly owned subsidiary of American
Express Company. The accompanying consolidated financial
statements include the accounts of the Company and its wholly owned
subsidiaries, IDS Life Insurance Company of New York and American
Enterprise Life Insurance Company. All material intercompany
accounts and transactions have been eliminated in consolidation.
The accompanying consolidated financial statements have been
prepared in conformity with generally accepted accounting
principles which vary in certain respects from reporting practices
prescribed or permitted by state insurance regulatory authorities.
Also, the consolidated financial statements are presented on a
historical cost basis without adjustment of the net assets
attributable to the 1984 acquisition of IDS by American Express
Company.
Investments
Investments in fixed maturities are carried at cost, adjusted where
appropriate for amortization of premiums and accretion of
discounts. Mortgage loans on real estate are carried principally
at the unpaid principal balances of the related loans. Policy
loans are carried at the aggregate of the unpaid loan balances
which do not exceed the cash surrender values of the related
policies. Other investments include interest rate caps, real
estate and equity securities. When evidence indicates a decline,
which is other than temporary, in the underlying value or earning
power of individual investments, such investments are written down
to the estimated realizable value by a charge to income. Equity
securities are carried at market value and the related net
unrealized appreciation or depreciation is reported as a credit or
charge to stockholder's equity.
The Company has the ability and the intent to recover the costs of
these investments by holding them for the foreseeable future. The
ability to hold investments to scheduled maturity dates is
dependent on, among other things, annuity contract owners
maintaining their annuity contracts in force.
The Company will implement, effective January 1, 1994, Statement of
Financial Accounting Standards No. 115, "Accounting for Certain
Investments in Debt and Equity Securities." Under the new rules,
debt securities that the Company has both the positive intent and
ability to hold to maturity will be carried at amortized cost.
Debt securities that the Company does not have the positive intent <PAGE>
PAGE 37
1. Summary of significant accounting policies (continued)
and ability to hold to maturity and all marketable equity
securities will be classified as available-for-sale and carried at
fair value. Unrealized gains and losses on securities classified
as available-for-sale will be carried as a separate component of
stockholder's equity. The effect of the new rules will be to
increase stockholder's equity by approximately $181 million, net of
taxes, as of January 1, 1994, but the new rules will have no
material impact on the Company's results of operations.
Realized investment gain or loss is determined on an identified
cost basis.
Interest rate cap contracts are purchased to reduce the Company's
exposure to rising interest rates which would increase the cost of
future policy benefits for interest sensitive products. Costs
are amortized over the lives of the agreements and benefits are
recognized when realized.
Prepayments are anticipated on certain investments in
mortgage-backed securities in determining the constant effective
yield used to recognize interest income. Prepayment estimates
are based on information received from brokers who deal in
mortgage-backed securities.
Statement of cash flows
The Company considers investments with a maturity at the date of
their acquisition of three months or less to be cash equivalents.
These securities are carried principally at amortized cost which
approximates fair value.
Supplementary information to the consolidated statement of cash
flows for the years ended Dec. 31 is summarized as follows:
1993 1992 1991
___________________________________________________________________
Cash paid during the year for:
Income taxes $188,204 $140,445 $111,809
Interest on borrowings 2,661 1,265 108
___________________________________________________________________
Recognition of profits on annuity contracts and insurance policies
The Company issues single premium deferred annuity contracts that
provide for a service fee (surrender charge) at annually decreasing
rates upon withdrawal of the annuity accumulation value by the
contract owner. No sales fee is deducted from the contract
considerations received on these contracts ("no load" annuities).
Single premium deferred annuities issued prior to 1980 had a sales
fee and no surrender charge. All of the Company's single premium
deferred annuity contracts provide for crediting the contract
owners' accumulations at specified rates of interest. Such rates
are revised by the Company from time to time based on changes in
the market investment yield rates for fixed-income securities.
Profits on single premium deferred annuities and installment
annuities are recognized by the Company over the lives of the<PAGE>
PAGE 38
1. Summary of significant accounting policies (continued)
contracts and represent the excess of investment income earned
from investment of contract considerations over interest credited
to contract owners and other expenses.
The retrospective deposit method is used in accounting for
universal life-type insurance. This method recognizes profits over
the lives of the policies in proportion to the estimated gross
profits expected to be realized.
Premiums on traditional life, disability income, health and
long-term care insurance policies are recognized as revenue when
collected or due, and related benefits and expenses are associated
with premium revenue in a manner that results in recognition of
profits over the lives of the insurance policies. This association
is accomplished by means of the provision for future policy
benefits and the deferral and subsequent amortization of policy
acquisition costs.
Deferred policy acquisition costs
The costs of acquiring new business, principally sales
compensation, policy issue costs, underwriting and certain sales
expenses, have been deferred on insurance and annuity contracts.
The deferred acquisition costs for single premium deferred
annuities and installment annuities are amortized based upon
surrender charge revenue and a portion of the excess of investment
income earned from investment of the contract considerations over
the interest credited to contract owners. The costs for universal
life-type insurance are amortized over the lives of the policies as
a percentage of the estimated gross profits expected to be
realized on the policies. For traditional life, disability income,
health and long-term care insurance policies, the costs are
amortized over an appropriate period in proportion to premium
revenue.
Liabilities for future policy benefits
Liabilities for universal life-type insurance, single premium
deferred annuities and installment annuities are accumulation
values.
Liabilities for fixed annuities in a benefit status are based on
the Progressive Annuity Table with interest at 5 percent, the 1971
Individual Annuity Table with interest at 7 percent or 8.25
percent, or the 1983a Table with various interest rates ranging
from 5.5 percent to 9.5 percent, depending on year of issue.
Liabilities for future benefits on traditional life insurance have
been computed principally by the net level premium method, based on
anticipated rates of mortality (approximating the 1965-1970 Select
and Ultimate Basic Table for policies issued after 1980 and the
1955-1960 Select and Ultimate Basic Table for policies issued prior
to 1981), policy persistency derived from Company experience data
(first year rates ranging from approximately 70 percent to 90
percent and increasing rates thereafter), and estimated future
investment yields of 4 percent for policies issued before 1974 and
5.25 percent for policies issued from 1974 to 1980. Cash value
plans issued in 1980 and later assume future investment rates that
grade from 9.5 percent to 5 percent over 20 years. Term insurance
<PAGE>
PAGE 39
1. Summary of significant accounting policies (continued)
issued from 1981 to 1984 assumes an 8 percent level investment rate
and term insurance issued after 1984 assumes investment rates that
grade from 10 percent to 6 percent over 20 years.
Liabilities for future disability income policy benefits have been
computed principally by the net level premium method, based on the
1964 Commissioners Disability Table with the 1958 Commissioners
Standard Ordinary Mortality Table at 3 percent interest for 1980
and prior, 8 percent interest for persons disabled from 1981 to
1991 and 6 percent interest for persons disabled after 1991.
Liabilities for future benefits on long-term care insurance have
been computed principally by the net level premium method, using
morbidity rates based on the 1985 National Nursing Home Survey and
mortality rates based on the 1983a Table. The interest rate basis
is 9.5 percent grading to 7 percent over ten years for policies
issued from 1989 to 1992, 7.75 percent grading to 7 percent over
four years for policies issued after 1992, 8 percent for claims
incurred in 1989 to 1991 and 6 percent for claims incurred after
1991.
At Dec. 31, 1993 and 1992, the carrying amount and fair value of
fixed annuities future policy benefits, after excluding life
insurance-related contracts carried at $913,127 and $834,909, were
$17,579,008 and $15,507,510, and $16,881,747 and $14,867,066,
respectively. The fair value is net of policy loans of $59,132 and
$51,394 at Dec. 31, 1993 and 1992, respectively. The fair value of
these benefits is based on the status of the annuities at Dec. 31,
1993 and 1992. The fair value of deferred annuities is estimated
as the carrying amount less any surrender charges and related
loans. The fair value for annuities in non-life contingent payout
status is estimated as the present value of projected benefit
payments at the rate appropriate for contracts issued in 1993 and
1992.
Reinsurance
The maximum amount of life insurance risk retained by the Company
on any one life is $750 of life and waiver of premium benefits plus
$50 of accidental death benefits. The maximum amount of disability
income risk retained by the Company on any one life is $6 of
monthly benefit for benefit periods longer than three years. The
excesses are reinsured with other life insurance companies on a
yearly renewable term basis. Graded premium whole life policies
and long term care are primarily reinsured on a coinsurance basis.
In 1993 the Company adopted Statement of Financial Accounting
Standards (SFAS) No. 113, "Accounting and Reporting for Reinsurance
of Short-Duration and Long-Duration Contracts." Under SFAS No.
113, amounts paid or deemed to have been paid for reinsurance
contracts are recorded as reinsurance receivables. Prior to 1993,
these amounts were recorded as a reduction of the liability for
future insurance policy benefits. The cost of reinsurance is
accounted for over the period covered by the reinsurance contract.
<PAGE>
PAGE 40
1. Summary of significant accounting policies (continued)
Federal income taxes
The Company's taxable income is included in the consolidated
federal income tax return of American Express Company. The Company
provides for income taxes on a separate return basis, except that,
under an agreement between IDS and American Express Company, tax
benefit is recognized for losses to the extent they can be used on
the consolidated tax return. It is the policy of IDS and its
subsidiaries that IDS will reimburse a subsidiary for any tax
benefit.
Included in other liabilities at Dec. 31, 1993 and 1992 are $14,709
and $18,181, respectively, payable to IDS for federal income taxes.
Segregated asset account business
The segregated asset account assets and liabilities represent funds
held for the exclusive benefit of the variable annuity and variable
life insurance contract owners. The Company receives investment
management and mortality and expense assurance fees from the
variable annuity and variable life insurance mutual funds and
segregated asset accounts. The Company also deducts a monthly cost
of insurance charge and receives a minimum death benefit guarantee
fee and issue and administrative fee from the variable life
insurance segregated asset accounts.
The Company makes contractual mortality assurances to the variable
annuity contract owners that the net assets of the segregated asset
accounts will not be affected by future variations in the actual
life expectancy experience of the annuitants and the beneficiaries
from the mortality assumptions implicit in the annuity contracts.
The Company makes periodic fund transfers to, or withdrawals from,
the segregated asset accounts for such actuarial adjustments for
variable annuities that are in the benefit payment period. The
Company guarantees, for the variable life insurance policyholders,
the cost of the contractual insurance rate and that the death
benefit will never be less than the death benefit at the date of
issuance.
At Dec. 31, 1993 and 1992 the fair value of liabilities related to
segregated asset accounts was $8,305,209 and $5,727,402,
respectively. The fair value of these liabilities at Dec. 31, 1993
and 1992 is estimated as the carrying amount less variable
insurance contracts carried at $346,276 and $226,946, respectively,
and surrender charges, if applicable.
Reclassification
Certain 1992 and 1991 amounts have been reclassified to conform to
the 1993 presentation.
2. Investments
Market values of investments in fixed maturities represent quoted
market prices and estimated fair values when quoted prices are not
available. Estimated fair values are determined by established
procedures involving, among other things, review of market indices,
price levels of current offerings of comparable issues, price
estimates and market data from independent brokers and financial
files.<PAGE>
PAGE 41
2. Investments (continued)
Net gain (loss) on investments for the years ended Dec. 31 is
summarized as follows:
<TABLE><CAPTION>
1993 1992 1991
________________________________________________________________________________________________
<S> <C> <C> <C>
Fixed maturities $ 5,460 $ 14,474 $ 22,750
Mortgage loans (11,422) (5,004) (1,064)
Other investments (6,606) (8,265) (5,695)
(12,568) 1,205 15,991
Net (increase) decrease in allowance for losses 5,831 (4,915) (21,828)
$ (6,737) $ (3,710) $ (5,837)
________________________________________________________________________________________________
Changes in net unrealized appreciation
(depreciation) of investments for the years
ended Dec. 31 are summarized as follows:
1993 1992 1991
________________________________________________________________________________________________
Fixed maturities $323,060 $(128,683) $861,355
Equity securities (156) 300 418
________________________________________________________________________________________________
</TABLE>
Fair values of and gross unrealized gains
and losses on investments in fixed maturities
carried at amortized cost at Dec. 31 are as follows:
<TABLE><CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
1993 Cost Gains Losses Value
________________________________________________________________________________________________
<S> <C> <C> <C> <C>
U.S. Government agency obligations $ 63,532 $ 3,546 $ 1,377 $ 65,701
State and municipal obligations 11,072 2,380 - 13,452
Corporate bonds and obligations 9,362,074 768,747 45,706 10,085,115
Mortgage-backed securities 9,978,523 341,067 57,879 10,261,711
19,415,201 1,115,740 104,962 20,425,979
Less allowance for losses 22,777 - 22,777 -
$19,392,424 $1,115,740 $ 82,185 $20,425,979
________________________________________________________________________________________________
Gross Gross
Amortized Unrealized Unrealized Fair
1992 Cost Gains Losses Value
________________________________________________________________________________________________
U.S. Government agency obligations $ 36,753 $ 3,658 $ 4 $ 40,407
State and municipal obligations 11,234 1,542 - 12,776
Corporate bonds and obligations 7,688,190 431,781 104,707 8,015,264
Mortgage-backed securities 9,487,601 377,539 37,213 9,827,927
17,223,778 814,520 141,924 17,896,374
Less allowance for losses 37,899 - 37,899 -
$17,185,879 $ 814,520 $104,025 $17,896,374
________________________________________________________________________________________________
</TABLE>
<TABLE><CAPTION>
The amortized cost and fair value of investments in fixed maturities at Dec. 31, 1993 by
contractual maturity are shown below. Expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay obligations with or without
call or prepayment penalties.
Amortized Fair
Cost Value
________________________________________________________________________________________________
<S> <C> <C>
Due in one year or less $ 89,160 $ 90,928
Due from one to five years 1,430,756 1,532,298
Due from five to ten years 5,488,955 5,924,580
Due in more than ten years 2,427,807 2,616,462
Mortgage-backed securities 9,978,523 10,261,711
$19,415,201 $20,425,979
________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 42
2. Investments (continued)
Proceeds from sales of investments in fixed maturities during 1993
and 1992 were $482,523 and $996,619, respectively. During 1993 and
1992, gross gains of $48,499 and $94,915, respectively, and gross
losses of $43,039 and $80,441, respectively, were realized on those
sales.
At Dec. 31, 1993, the amount of net unrealized appreciation on
equity securities included $160 of gross unrealized appreciation,
$nil of gross unrealized depreciation and deferred tax credits of
$46. At Dec. 31, 1992, the amount of net unrealized appreciation
on equity securities included $328 of gross unrealized
appreciation, $12 of gross unrealized depreciation and deferred tax
credits of $102. The fair value of equity securities was $1,900
and $2,005 at Dec. 31, 1993 and 1992, respectively.
Included in other investments at Dec. 31, 1993 are interest rate
caps at amortized cost of $26,923 with a fair value of $14,201.
These interest rate caps carry a notional amount of $4,400,000 and
expire on various dates from 1994 to 1998.
At Dec. 31, 1993, bonds carried at $4,184 were on deposit with
various states as required by law.
Net investment income for the years ended Dec. 31 is summarized as
follows:
<TABLE><CAPTION>
1993 1992 1991
______________________________________________________________________________________
<S> <C> <C> <C>
Interest on fixed maturities $1,589,802 $1,449,234 $1,279,317
Interest on mortgage loans 175,063 148,693 122,723
Other investment income 29,345 24,281 20,005
Interest on cash equivalents 2,137 5,363 8,729
1,796,347 1,627,571 1,430,774
Less investment expenses 13,128 10,750 7,908
______________________________________________________________________________________
$1,783,219 $1,616,821 $1,422,866
______________________________________________________________________________________
</TABLE>
At Dec. 31, 1993, investments in fixed maturities comprised 89
percent of the Company's total invested assets. These securities
are rated by Moody's and Standard & Poor's (S&P), except for
approximately $2.1 billion which is rated by IDS internal analysts
using criteria similar to Moody's and S&P. A summary of
investments in fixed maturities by rating on Dec. 31 is as follows:
Dec. 31, Dec. 31,
Rating 1993 1992
________________________________________________________________________
Aaa/AAA $ 9,959,884 $ 9,480,345
Aa/AA 258,659 219,370
Aa/A 160,638 109,806
A/A 2,021,177 1,735,750
A/BBB 654,949 447,592
Baa/BBB 3,936,366 3,352,192
Baa/BB 717,606 392,361
Below investment grade 1,705,922 1,486,362
________________________________________________________________________
$19,415,201 $17,223,778
________________________________________________________________________
<PAGE>
PAGE 43
At Dec. 31, 1993, 99 percent of the securities rated Aaa/AAA are
GNMA, FNMA and FHLMC mortgage-backed securities. No holdings of
any other issuer are greater than 1 percent of the Company's total
investments in fixed maturities.
2. Investments (continued)
At Dec. 31, 1993, approximately 9.4 percent of the Company's
invested assets were mortgage loans on real estate. Summaries of
mortgage loans by region of the United States and by type of real
estate at Dec. 31, 1993 and 1992 are as follows:
<TABLE><CAPTION>
Dec. 31, 1993 Dec. 31, 1992
On Balance Commitments On Balance Commitments
Region Sheet to Purchase Sheet to Purchase
______________________________________________________________________________________
<S> <C> <C> <C> <C>
East North Central $ 552,150 $ 20,933 $ 484,808 $ 21,728
West North Central 361,704 16,746 357,388 14,327
South Atlantic 452,679 52,440 320,593 32,022
Middle Atlantic 260,239 41,090 188,294 56,816
New England 155,214 17,620 114,170 24,677
Pacific 120,378 15,492 89,636 5,148
West South Central 43,948 525 46,296 716
East South Central 73,748 - 3,994 10,085
Mountain 70,410 14,594 26,906 8,882
______________________________________________________________________________________
2,090,470 179,440 1,712,085 174,401
Less allowance for losses 35,020 - 23,595 -
______________________________________________________________________________________
$2,055,450 $179,440 $1,688,490 $174,401
______________________________________________________________________________________
Dec. 31, 1993 Dec. 31, 1992
On Balance Commitments On Balance Commitments
Property type Sheet to Purchase Sheet to Purchase
______________________________________________________________________________________
Apartments $ 744,788 $ 79,153 $ 541,855 $ 70,198
Department/retail stores 624,651 65,402 504,331 74,671
Office buildings 234,042 15,583 327,216 12,950
Industrial buildings 217,648 9,279 203,361 15,150
Nursing/retirement homes 83,768 917 56,431 716
Hotels/motels 33,138 - 34,631 716
Medical buildings 30,429 5,954 23,006 -
Residential 78 - 6,618 -
Other 121,928 3,152 14,636 -
______________________________________________________________________________________
2,090,470 179,440 1,712,085 174,401
Less allowance for losses 35,020 - 23,595 -
______________________________________________________________________________________
$2,055,450 $179,440 $1,688,490 $174,401
</TABLE>
Mortgage loan fundings are restricted by state insurance regulatory
authorities to 80 percent or less of the market value of the real
estate at the time of origination of the loan. The Company holds
the mortgage document, which gives the right to take possession of
the property if the borrower fails to perform according to the
terms of the agreement. The fair value of the mortgage loans is
determined by a discounted cash flow analysis using mortgage
interest rates currently offered for mortgages of similar
maturities. Commitments to purchase mortgages are made in the
ordinary course of business. The fair value of the mortgage
commitments is $nil.
3. Income taxes
The Company qualifies as a life insurance company for federal
income tax purposes. As such, the Company is subject to the
Internal Revenue Code provisions applicable to life insurance
companies.<PAGE>
PAGE 44
3. Income taxes (continued)
The income tax expense consists of the following:
<TABLE><CAPTION>
1993 1992 1991
_______________________________________________________________________________
<S> <C> <C> <C>
Federal income taxes:
Current $180,558 $130,998 $104,292
Deferred (44,237) (30,385) (29,207)
_______________________________________________________________________________
136,321 100,613 75,085
State income taxes-Current 6,326 4,038 2,345
_______________________________________________________________________________
Income tax expense $142,647 $104,651 $ 77,430
_______________________________________________________________________________
</TABLE>
Increases (decreases) to the federal tax provision applicable to
pre-tax income based on the statutory rate are attributable to:
<TABLE><CAPTION>
1993 1992 1991
_________________________________________________________________________________________________________
Provision Rate Provision Rate Provision Rate
_________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
Federal income taxes based on
the statutory rate $144,454 35.0% $107,379 34.0% $88,219 34.0%
Increases (decreases) are attributable to:
Tax-excluded interest and dividend income (11,002) (2.7) (8,209) (2.6) (9,496) (3.7)
Other, net 2,869 0.7 1,443 0.4 (3,638) (1.4)
_________________________________________________________________________________________________________
Federal income taxes $136,321 33.0% $100,613 31.8% $75,085 28.9%
_________________________________________________________________________________________________________
</TABLE>
A portion of life insurance company income earned prior to 1984 was
not subject to current taxation but was accumulated, for tax
purposes, in a "policyholders' surplus account." At Dec. 31, 1993,
the Company had a policyholders' surplus account balance of
$19,032. The policyholders' surplus account is only taxable if
dividends to the stockholder exceed the stockholder's surplus
account or if the Company is liquidated. Deferred income taxes of
$6,661 have not been established because no distributions of such
amounts are contemplated.
Significant components of the Company's deferred tax assets and
liabilities as of Dec. 31 are as follows:
<TABLE><CAPTION>
Deferred tax assets: 1993 1992
______________________________________________________________________________________
<S> <C> <C>
Policy reserves $453,436 $356,712
Life insurance guarantee fund assessment reserve 35,000 21,794
______________________________________________________________________________________
Total deferred tax assets 488,436 378,506
______________________________________________________________________________________
Deferred tax liabilities:
______________________________________________________________________________________
Deferred policy acquisition costs 509,868 446,579
Investments 10,105 2,435
Other 12,083 17,405
______________________________________________________________________________________
Total deferred tax liabilities 532,056 466,419
______________________________________________________________________________________
Net deferred tax liabilities $ 43,620 $ 87,913
______________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 45
4. Stockholder's equity
Retained earnings available for distribution as dividends to parent
are limited to the Company's surplus as determined in accordance
with accounting practices prescribed by state insurance regulatory
authorities. Statutory unassigned surplus aggregated $922,246 as
of Dec. 31, 1993 and $685,103 as of Dec. 31, 1992 (see Note 3 with
respect to the income tax effect of certain distributions). In
addition, any dividend distributions in 1994 in excess of
approximately $259,063 would require approval of the Department of
Commerce of the State of Minnesota.
Statutory net income for 1993, 1992 and 1991 and stockholder's
equity as of Dec. 31, 1993, 1992 and 1991 are summarized as
follows:
<TABLE><CAPTION>
1993 1992 1991
___________________________________________________________________________________
<S> <C> <C> <C>
Statutory net income $ 275,015 $180,296 $200,704
Statutory stockholder's equity 1,157,022 714,942 551,939
___________________________________________________________________________________
</TABLE>
Dividends paid to IDS were $25,000 in 1993, $20,000 in 1992 and
$20,000 in 1991.
5. Related party transactions
The Company has loaned funds or agreed to loan funds to IDS under
two separate loan agreements. The balance of the first loan was
$75,000 and $nil at Dec. 31, 1993 and 1992, respectively. This
loan can be increased to a maximum of $100,000 and pays interest at
a rate equal to the preceding month's effective new money rate for
the Company's permanent investments. It is collateralized by
equities valued at $96,790 at Dec. 31, 1993. The second loan was
used to fund the construction of the IDS Operations Center. This
loan had an outstanding balance of $84,588 and $85,278 at Dec. 31,
1993 and 1992, respectively. The loan is secured by a first lien
on the IDS Operations Center property and has an interest rate of
9.89 percent. The Company also has a loan to an affiliate which
was used to fund construction of the IDS Learning Center. At Dec.
31, 1993 and 1992, the balance outstanding was $22,573 and $22,755,
respectively. The loan is secured by a first lien on the IDS
Learning Center property and has an interest rate of 9.82 percent.
Interest income on the above loans totaled $11,116, $10,711 and
$14,783 in 1993, 1992 and 1991, respectively.
The Company purchased a five year secured note from an affiliated
company which had an outstanding balance of $27,222 and $31,111 at
Dec. 31, 1993 and 1992, respectively. The note bears a market
interest rate, revised semi-annually, which at Dec. 31, 1993 was
8.42 percent.
The Company has a reinsurance agreement whereby it assumed 100
percent of a block of single premium life insurance business from
an affiliated company. The accompanying consolidated balance sheet
at Dec. 31, 1993 and 1992 includes $759,714 and $746,060,
respectively, of future policy benefits related to this agreement.
<PAGE>
PAGE 46
5. Related party transactions (continued)
The accompanying consolidated statement of income includes revenue
from policyholder charges of $21, $109 and $243, and expenses of
$4,931, $5,897 and $6,445 related to this agreement for 1993, 1992
and 1991, respectively.
The Company has a reinsurance agreement to cede 50 percent of its
long-term care insurance business to an affiliated company. The
accompanying consolidated balance sheet at Dec. 31, 1993 includes
$44,086 of reinsurance receivables related to this agreement.
Liabilities for future policy benefits were reduced by $27,028 at
Dec. 31, 1992 for the effect of this agreement. Premiums ceded
amounted to $16,230, $12,499 and $6,365 and reinsurance recovered
from reinsurers amounted to $404, $250 and $187 for the years ended
Dec. 31, 1993, 1992 and 1991, respectively.
The Company participates in the retirement plan of IDS which covers
all permanent employees age 21 and over who have met certain
employment requirements. The benefits are based on the number of
years the employee participates in the plan, their final average
monthly salary, the level of social security benefits the employee
is eligible for and the level of vesting the employee has earned in
the plan. IDS' policy is to fund retirement plan costs accrued
subject to ERISA and federal income tax considerations. The
Company's share of the total net periodic pension cost was $nil in
1993, 1992 and 1991.
The Company also participates in defined contribution pension plans
of IDS which cover all employees who have met certain employment
requirements. Company contributions to the plans are a percent of
either each employee's eligible compensation or basic
contributions. Costs of these plans charged to operations in 1993,
1992 and 1991 were $2,008, $1,826 and $1,682, respectively.
The Company participates in defined benefit health care plans of
IDS that provide health care and life insurance benefits to retired
employees and retired financial planners. The plans include
participant contributions and service-related eligibility
requirements. Upon retirement, such employees are considered to
have been employees of IDS. IDS expenses these benefits and
allocates the expenses to its subsidiaries. Accordingly, costs of
such benefits to the Company are included in employee compensation
and benefits and cannot be identified on a separate company basis.
Charges by IDS for use of joint facilities and other services
aggregated $243,346, $204,675 and $174,500 for 1993, 1992 and 1991,
respectively. Certain of these costs are included in deferred
policy acquisition costs. In addition, the Company rents its home
office space from IDS on an annual renewable basis. Such rentals
aggregated $4,513, $4,074 and $3,469 for 1993, 1992 and 1991,
respectively.
Certain commission and marketing services expenses are allocated to
the Company by its affiliates. The expenses for 1993, 1992 and
1991 were $127,000, $110,064 and $95,367, respectively. Certain of
the costs assessed to the Company are included in deferred policy
acquisition costs.
<PAGE>
PAGE 47
6. Commitments and contingencies
At Dec. 31, 1993 and 1992, traditional life insurance and universal
life-type insurance in force aggregated $46,125,515 and
$40,904,345, respectively, of which $3,038,426 and $2,937,590 were
reinsured at the respective year ends. The Company also reinsures
a portion of the risks assumed under disability income policies.
Under the agreements, premiums ceded to reinsurers amounted to
$28,276, $24,222 and $16,908 and reinsurance recovered from
reinsurers amounted to $3,345, $6,766 and $6,447 for the years
ended Dec. 31, 1993, 1992 and 1991.
Reinsurance contracts do not relieve the Company from its primary
obligation to policyholders.
The Company is a defendant in various lawsuits, none of which, in
the opinion of the Company counsel, will result in a material
liability.
The Company received the revenue agent's report for the tax years
1984 through 1986 in February 1992, and has settled on all agreed
audit issues. The Company will protest the remaining open issues
and, while the outcome of the appeal is not known at this time,
management does not believe there will be any material impact as a
result of this audit.
7. Lines of credit
The Company has available lines of credit with two banks
aggregating $75,000 at 45 to 80 basis points over the banks' cost
of funds or equal to the prime rate, depending on which line of
credit agreement is used. Borrowings outstanding under these
agreements were $1,519 and $nil at Dec. 31, 1993 and 1992,
respectively.
8. Segment information
The Company's operations consist of two business segments; first,
individual and group life insurance, disability income, health and
long-term care insurance, and second, annuity products designed for
individuals, pension plans, small businesses and employer-sponsored
groups. The consolidated statement of income for the years ended
Dec. 31, 1993, 1992 and 1991 and total assets at Dec. 31, 1993,
1992 and 1991 by segment are summarized as follows:
<PAGE>
PAGE 48
8. Segment information (continued)
<TABLE><CAPTION>
1993 1992 1991
___________________________________________________________________________________________________________
<S> <C> <C> <C>
Net investment income:
Life, disability income, health and long-term care insurance $ 250,224 $ 246,676 $ 233,828
Annuities 1,532,995 1,370,145 1,189,038
___________________________________________________________________________________________________________
$ 1,783,219 $ 1,616,821 $ 1,422,866
___________________________________________________________________________________________________________
Premiums and other considerations:
Life, disability income and long-term care insurance $ 281,284 $ 250,386 $ 220,754
Annuities 143,876 104,952 79,928
___________________________________________________________________________________________________________
$ 425,160 $ 355,338 $ 300,682
___________________________________________________________________________________________________________
Income before income taxes:
Life, disability income, health and long-term care insurance $ 104,127 $ 96,215 $ 90,050
Annuities 315,336 223,316 175,254
Net loss on investments (6,737) (3,710) (5,837)
___________________________________________________________________________________________________________
$ 412,726 $ 315,821 $ 259,467
___________________________________________________________________________________________________________
Total assets:
Life, disability income, health and long-term care insurance $ 4,810,145 $ 4,093,778 $ 3,670,197
Annuities 28,247,608 23,201,995 18,888,612
___________________________________________________________________________________________________________
$33,057,753 $27,295,773 $22,558,809
___________________________________________________________________________________________________________
</TABLE>
Allocations of net investment income and certain general expenses
are based on various assumptions and estimates.
Assets are not individually identifiable by segment and have been
allocated principally based on the amount of future policy benefits
by segment.
Capital expenditures and depreciation expense are not material, and
consequently, are not reported.
<PAGE>
PAGE 49
Annual Financial Information
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company
We have audited the accompanying consolidated balance sheets of IDS
Life Insurance Company (a wholly owned subsidiary of IDS Financial
Corporation) as of December 31, 1993 and 1992, and the related
consolidated statements of income and cash flows for each of the
three years in the period ended December 31, 1993. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards 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. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial
position of IDS Life Insurance Company at December 31, 1993 and
1992, and the consolidated results of its operations and its cash
flows for each of the three years in the period ended December 31,
1993, in conformity with generally accepted accounting principles.
ERNST & YOUNG
February 3, 1994
Minneapolis, Minnesota
<PAGE>
PAGE 50
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company
We have audited the consolidated financial statements of IDS Life
Insurance Company as of December 31, 1993 and 1992, and for each of
the three years in the period ended December 31, 1993, and have
issued our report thereon dated February 3, 1994 (included
elsewhere in this Registration Statement).
Our audits also included the financial statement schedules I, V,
VI, VIII and IX included elsewhere in this Registration Statement.
These schedules are the responsibility of the Company's management.
Our responsibility is to express an opinion based on our audits.
In our opinion, the financial statement schedules referred to
above, when considered in relation to the basic financial
statements taken as a whole, present fairly, in all material
respects, the information set forth therein.
Ernst & Young
Minneapolis, Minnesota
February 3, 1994
<PAGE>
PAGE 51
IDS LIFE INSURANCE COMPANY
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES ($ thousands)
AS OF DECEMBER 31, 1993
<TABLE>
<CAPTION>
________________________________________________________________________________________
Column A Column B Column C Column D
Type of Investment Cost Value Amount at which
shown in the
balance sheet
________________________________________________________________________________________
<S> <C> <C> <C>
Fixed maturities:
Bonds:
United States Government and
government agencies and
authorities (a) $ 5,591,309 $ 5,737,439 $ 5,591,309
States, municipalities and
polictical subdivisions 11,072 13,452 11,072
All other corporate bonds 13,790,043 14,675,088 13,790,043
____________ _____________ ______________
Total fixed maturities 19,392,424 20,425,979 19,392,424
Mortgage loans on real estate 2,055,450 XXXXXXXXX 2,055,450
Policy loans 350,501 XXXXXXXXX 350,501
Other investments 56,307 XXXXXXXXX 56,307
____________ ______________ ______________
Total investment $ 21,854,682 $ XXXXXXXXX $ 21,854,682
____________ ______________ ______________
(a) - Includes mortgage-backed securities with a cost and market value of $5,527,777 and $5,671,783 respectively.
</TABLE>
<PAGE>
PAGE 52
IDS LIFE INSURANCE COMPANY
SCHEDULE V - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1991
<TABLE>
<CAPTION>
Column A Column B Column C Column D Column E Column F
Segment Deferred Future Unearned Other policy Premium
policy policy premiums claims and revenue
acquisition benefits benefits
cost losses, payable
claims and
loss expenses
<S> <C> <C> <C> <C> <C>
Annuities $ 693,184 $13,663,477 $ - $ 30,041 $ -
Life, DI,
Long-Term Care and
Health Insurance 518,439 2,654,915 - 21,205 102,338
Total $1,211,623 $16,318,392 $ - $ 51,246 $102,338
</TABLE>
<TABLE>
<CAPTION>
Column A Column G Column H Column I Column J Column K
Segment Net Benefits, Amortization Other Premiums
investment claims, of deferred operating written
income losses and policy expenses
settlement acquisition
expenses costs
<S> <C> <C> <C> <C> <C>
Annuities $1,189,038 $ 1,639 $ 63,821 $ 66,068 $ N/A
Life, DI,
Long-Term Care and
Health Insurance 233,828 88,577 52,257 87,601 N/A
Total $1,422,866 $90,216 $116,078 $ 153,669 N/A
</TABLE>
IDS LIFE INSURANCE COMPANY
SCHEDULE V - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1992
<TABLE>
<CAPTION>
Column A Column B Column C Column D Column E Column F
Segment Deferred Future Unearned Other policy Premium
policy policy premiums claims and revenue
acquisition benefits benefits
cost losses, payable
claims and
loss expenses
<S> <C> <C> <C> <C> <C>
Annuities $ 860,027 $16,342,419 $ - $ 28,705 $ -
Life, DI,
Long-Term Care and
Health Insurance 580,848 2,883,469 - 21,194 114,379
Total $1,440,875 $19,225,888 $ - $ 49,899 $114,379
</TABLE>
<TABLE>
<CAPTION>
Column A Column G Column H Column I Column J Column K
Segment Net Benefits, Amortization Other Premiums
investment claims, of deferred operating written
income losses and policy expenses
settlement acquisition
expenses costs
<S> <C> <C> <C> <C> <C>
Annuities $1,370,145 $ 1,870 $ 81,706 $ 100,928 $ N/A
Life, DI,
Long-Term Care and
Health Insurance 246,676 106,528 58,453 114,764 N/A
Total $1,616,821 $108.398 $140,159 $ 215,692 N/A
</TABLE>
<PAGE>
PAGE 53
IDS LIFE INSURANCE COMPANY
SCHEDULE V - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
Column A Column B Column C Column D Column E Column F
Segment Deferred Future Unearned Other policy Premium
policy policy premiums claims and revenue
acquisition benefits benefits
cost losses, payable
claims and
loss expenses
<S> <C> <C> <C> <C> <C>
Annuities $1,008,378 $18,492,135 $ - $ 21,508 $ -
Life, DI,
Long-Term Care and
Health Insurance 644,006 3,148,932 - 23,008 127,245
Total $1,652,384 $21,641,067 $ - $ 44,516 $127,245
</TABLE>
<TABLE>
<CAPTION>
Column A Column G Column H Column I Column J Column K
Segment Net Benefits, Amortization Other Premiums
investment claims, of deferred operating written
income losses and policy expenses
settlement acquisition
expenses costs
<S> <C> <C> <C> <C> <C>
Annuities $1,532,995 $ 3,656 $139,602 $ 122,999 $ N/A
Life, DI,
Long-Term Care and
Health Insurance 250,224 119,335 72,131 118,975 N/A
Total $1,783,219 $122,991 $211,733 $ 241,974 N/A
</TABLE>
<PAGE>
PAGE 54
IDS LIFE INSURANCE COMPANY
SCHEDULE VI - REINSURANCE ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
<TABLE>
<CAPTION>
____________________________________________________________________________________________________________________
Column A Column B Column C Column D Column E Column F
Gross amount Ceded to other Assumed from Net % of amount
companies other companies Amount assumed to net
____________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
For the year ended
December 31, 1993
Life insurance in force $ 44,188,493 $ 3,038,426 $ 2,015,382 $ 43,165,449 4.67%
____________________________________________________________________________________________________________________
Premiums:
Life insurance $ 51,764 $ 3,627 $ -- $ 48,137 0.00%
DI & health insurance 96,250 17,142 -- 79,108 0.00%
____________________________________________________________________________________________________________________
Total premiums $ 148,014 $ 20,769 $ -- $ 127,245 0.00%
____________________________________________________________________________________________________________________
For the year ended
December 31, 1992
Life insurance in force $ 38,888,963 $ 2,937,590 $ 2,015,382 $ 37,966,755 5.31%
____________________________________________________________________________________________________________________
Premiums:
Life insurance $ 53,238 $ 3,849 $ 330 $ 49,719 0.66%
DI & health insurance 78,347 13,687 -- 64,660 0.00%
____________________________________________________________________________________________________________________
Total premiums $ 131,585 $ 17,536 $ 330 $ 114,379 0.29%
____________________________________________________________________________________________________________________
For the year ended
December 31, 1991
Life insurance in force $ 34,596,113 $ 2,902,381 $ 2,020,900 $ 33,714,632 5.99%
_____________________________________________________________________________________________________________________
Premiums:
Life insurance $ 53,223 $ 3,902 $ 385 $ 49,706 0.77%
DI & health insurance 59,844 7,212 -- 52,632 0.00%
____________________________________________________________________________________________________________________
Total premiums $ 113,067 $ 11,114 $ 385 $ 102,338 0.38%
____________________________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 55
IDS LIFE INSURANCE COMPANY
SCHEDULE VIII - VALUATION AND QUALIFYING ACCOUNTS ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
<TABLE>
<CAPTION>
____________________________________________________________________________________________________________________
Column A Column B Column C Column D Column E
Additions
--------------
Balance at Charged to
Description Beginning Charged to Other Accounts- Deductions- Balance at End
of Period Costs & Expenses Describe * Describe ** of Period
____________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
For the year ended
December 31, 1993
- ------------------------------
Reserve for Mortgage Loans $23,595 $13,635 $0 $2,210 $35,020
Reserve for Fixed Maturities $37,899 ($15,122) $0 $22,777
Reserve for Other Investments $12,834 ($4,344) $0 ($2,210) $10,700
For the year ended
December 31, 1992
- -------------------------------
Reserve for Mortgage Loans $16,131 $8,440 $0 $976 $23,595
Reserve for Fixed Maturities $45,100 ($7,601) $400 $0 $37,899
Reserve for Other Investments $7,782 $4,076 $0 ($976) $12,834
For the year ended
December 31, 1991
- ------------------------------
Reserve for Mortgage Loans $12,655 $6,860 $0 $3,384 $16,131
Reserve for Fixed Maturities $26,096 $19,004 $0 $0 $45,100
Reserve for Other Investments $8,434 ($4,036) $0 ($3,384) $7,782
____________________________________________________________________________________________________________________
* Cash received on bond previously written down
** Transfer between reserve accounts
</TABLE>
<PAGE>
PAGE 56
IDS LIFE INSURANCE COMPANY
SCHEDULE IX - SHORT-TERM BORROWINGS ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
<TABLE>
<CAPTION>
_______________________________________________________________________________________________________
Column A Column B Column C Column D Column E Column F
Maximum Average Weighted
Weighted amount amount average
Category of aggregate Balance average outstanding outstanding interest rate
short-term borrowing at end interest during the during the during the
of period rate period period period
_______________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
1993
Line of Credit $1,519 N/A $22,700 $1,297 3.70%
1992
Line of Credit $ 0 N/A $20,000 $ 825 5.45%
1991
Line of Credit $ 0 N/A $32,725 $1,483 7.28%
_______________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 57
PART II. OTHER INFORMATION
Item 1. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
List of financial statements filed as part of this Post-
Effective Amendment to the Registration Statement.
Financial statements included in the prospectus:
IDS Life Insurance Company:
Consolidated Balance Sheets as of December 31, 1993, and
December 31, 1992.
Consolidated Statements of Income for the years ended
December 31, 1993, 1992 and 1991.
Consolidated Statements of Cash Flows for the years ended
December 31, 1993, 1992 and 1991.
Notes to Consolidated Financial Statements.
Report of Independent Auditors dated Feb. 3, 1994.
Exhibits to Financial Statements:
Schedules I, V, VI, VIII and IX as required by Regulation S-X.
(b) Exhibits
(1) Resolution of the Executive Committee of the Board of
Directors of Investors Syndicate Life Insurance and Annuity
Company, dated May 10, 1968, is filed electronically herewith.
(2) Regulations of IDS Life Variable Annuity Fund A as Amended and
Restated, dated June 22, 1979, filed as Exhibit 2 to
Registrant's Post-Effective Amendment No. 32 to Registration
Statement No. 2-29081 filed on December 10, 1979, are
incorporated herein by reference.
(3) Not applicable.
(4) Contracts filed as Exhibit 4 to Registrant's Post-Effective
Amendment No. 32 to Registration Statement No. 2-29081 filed
on December 10, 1979, are incorporated herein by reference.
(5) (a) Investment Advisory Agreement between IDS Life Insurance
Company and IDS/American Express, dated January 12, 1984,
is filed electronically herewith.
<PAGE>
PAGE 58
(b) Investment Management and Advisory Agreements between IDS
Life Insurance Company and IDS Life Variable Annuity
Fund A, dated January 12, 1984, are filed electronically
herewith.
(6) Distribution and Services Agreement between Registrant and IDS
Life Insurance Company, dated January 12, 1984, is filed
electronically herewith.
(7) None.
(8) (a) Custodian Agreement between Registrant IDS Life Insurance
Company and IDS Bank & Trust, dated July 12, 1990, is
filed electronically herewith.
(b) Foreign Custody and Subcustodial Agreement filed as
Exhibit 8(b) to Registrant's Post-Effective Amendment No.
52, filed April 30, 1990, is incorporated herein by
reference.
(9) Not applicable.
(10) Opinion and Consent of Counsel as to the legality of the
securities registered was filed with Registrant's 24f-2 Notice
on or about February 25, 1994.
(11) Consent of Independent Auditors, is filed electronically
herewith.
(12) through (15) not applicable.
(16) Powers of Attorney to sign Amendments to this Registration
Statement, dated March 31, 1994, are filed electronically
herewith.
Item 2. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH
REGISTRANT
Both the Registrant and IDS Life Variable Annuity Fund B are
separate accounts of IDS Life. Consequently, the securities and
funds of the Registrant and Fund B are technically those of IDS
Life, even though the securities and funds of the two Funds are
maintained as separate accounts under Minnesota Law pursuant to a
safekeeping agreement with IDS Bank & Trust. As separate Accounts,
Minnesota Law provides that the assets of the Funds are not
chargeable with liabilities arising out of any other business of
IDS Life and are held for the exclusive benefit of owners of
variable annuity contracts based on the Funds.
Item 3. NUMBER OF HOLDERS OF SECURITIES
Number of Record Holders
Title of Class as of March 31, 1994
Variable Annuities 12,209
<PAGE>
PAGE 59
Item 4. INDEMNIFICATION
The Regulations of the Registrant provide that each member of
the Board of Managers and each Officer of the Fund shall be
indemnified by IDS Life, of which the Fund is a separate account,
for reasonable costs and expenses actually and necessarily incurred
in defense of any action, suit or proceedings where the defendant
is a party by reason of being a Manager or Officer. No
indemnification will be forthcoming in the event of an adjudication
of willful misfeasance, bad faith, gross negligence or reckless
disregard by the Officer or Manager of the duties of his office.
In the absence of an adjudication expressly absolving the Office or
Manager of the afore-detailed wrongful conduct, indemnification may
still be advanced should 2/3 of the members of the Board of
Directors of IDS Life who were not involved in the processing
resolve there was no instance of such wrongful conduct. In the
instance of such a resolution, the indemnification claim still must
be found to be reasonable in amount and proper in presentation by
independent counsel of IDS Life. Should any proceeding be settled,
indemnification shall not exceed the costs, fees and expenses which
would have been incurred had the proceeding been litigated. The
payment of indemnification by IDS Life will not prevent a variable
contract holder from challenging the payment by appropriate legal
action on the basis that the payment was improper because of
willful misfeasance, bad faith, gross negligence or reckless
disregard by an Officer or Manager of his duties.
The By-Laws of the Registrant's investment management
underwriter, IDS Life, also contains an indemnification clause.
The clause provides that IDS Life shall indemnify any person who
was or is a party or is threatened to be made a party, by reason of
the fact that he is or was a Manager of Variable Annuity Funds A
and B, director, officer, employee or agent of IDS Life, or is or
was serving at the direction of IDS Life as a Manager of Variable
Annuity Funds A and B, Director, Officer, employee or agent of
another corporation, partnership, joint venture, trust or other
enterprise, to any threatened, pending or completed action, suit or
proceeding, wherever brought, to the fullest extent permitted by
the laws of the State of Minnesota, as now existing or hereafter
amended, provided that this Article shall not indemnify or protect
any such Manager of Variable Annuity Funds A and B, Director,
Officer, employee or agent against any liability to IDS Life or its
security holders to which he would otherwise be subject by reason
of willful misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless disregard of
his obligations and duties.
At the time of the filing of the Registration Statement of the
Registrant, IDS Life included the following undertaking with regard
to the foregoing indemnification procedures:
"Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrant pursuant to the
foregoing provision, or otherwise ISL [si__. IDS Life] has
been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public
<PAGE>
PAGE 60
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 of ISL
[si__. IDS Life] 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, ISL [si__.
IDS Life] 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."
<TABLE><CAPTION>
Item 5. Business and Other Connections of Investment Adviser (IDS Financial Corporation)
Directors and officers of IDS Financial Corporation who are directors and/or officers of one
or more other companies:
Ronald G. Abrahamson, Vice President--Field Administration
<S> <C> <C>
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-Field
Administration
Douglas A. Alger, Vice President--Total Compensation
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Total Compensation
Jerome R. Amundson, Vice President and Controller--Mutual Funds Operations
IDS Financial Services Inc. IDS Tower 10 Vice President and
Minneapolis, MN 55440 Controller-Mutual Funds
Operations
Peter J. Anderson, Director and Senior Vice President--Investments
IDS Advisory Group Inc. IDS Tower 10 Director and Chairman
Minneapolis, MN 55440 of the Board
IDS Capital Holdings Inc. Director and President
IDS Financial Services Inc. Senior Vice President-
Advisory Group and Equity
Management
IDS Fund Management Limited Director
IDS International, Inc. Director, Chairman of the
Board and Executive Vice
President
IDS Securities Corporation Executive Vice President-
Investments
NCM Capital Management Group, Inc. 2 Mutual Plaza Director
501 Willard Street
Durham, NC 27701
<PAGE>
PAGE 61
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Ward D. Armstrong, Vice President--Sales and Marketing, IDS Institutional Retirement Services
IDS Financial Services Inc. IDS Tower 10 Vice President-Sales and
Minneapolis, MN 55440 Marketing, IDS
Institutional Retirement
Services
Alvan D. Arthur, Region Vice President--Pacific Northwest Region
American Express Service Corporation IDS Tower 10 Vice President
IDS Financial Services Inc. Minneapolis, MN 55440 Region Vice President-
Pacific Northwest Region
Kent L. Ashton, Vice President--Group Management Office, Banking and Certificates Group
IDS Financial Services Inc. IDS Tower 10 Vice President-Group
Minneapolis, MN 55440 Management Office, Banking
and Certificates Group
Joseph M. Barsky III, Vice President--Senior Portfolio Manager
IDS Advisory Group Inc. IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-Senior
Portfolio Manager
Robert Baston, Vice President--Tax and Business Services
IDS Financial Services Inc. IDS Tower 10 Vice President-Tax
Minneapolis, MN 55440 and Business Services
Timothy V. Bechtold, Vice President--Insurance Product Development
IDS Financial Services Inc. IDS Tower 10 Vice President-Insurance
Minneapolis, MN 55440 Product Development
IDS Life Insurance Company Vice President-Insurance
Product Development
John D. Begley, Region Vice President--Mid-Central Region
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Region Vice President-
Mid-Central Region
IDS Insurance Agency of Alabama Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of Arkansas Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of Massachusetts Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of Nevada Inc. Vice President-Mid-Central
Region
<PAGE>
PAGE 62
Item 5. Business and Other Connections of Investment Adviser (IDS Financial
Corporation)(cont'd)
IDS Insurance Agency of New Mexico Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of North Carolina Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of Ohio Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of Wyoming Inc. Vice President-Mid-Central
Region
Carl E. Beihl, Vice President--Strategic Technology Planning
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Strategic Technology
Planning
Alan F. Bignall, Vice President--Financial Planning Systems
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-
Financial Planning
Systems
Brent L. Bisson, Region Vice President--Northwest Region
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Region Vice President-
Northwest Region
IDS Insurance Agency of Alabama Inc. Vice President-
Northwest Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Northwest Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
Northwest Region
IDS Insurance Agency of Nevada, Inc. Vice President-
Northwest Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Northwest Region
IDS Insurance Agency of North Carolina Inc. Vice President-
Northwest Region
IDS Insurance Agency of Ohio Inc. Vice President-
Northwest Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Northwest Region
Karl J. Breyer, Director, Senior Vice President and General Counsel
American Express Minnesota Foundation IDS Tower 10 Director
Minneapolis, MN 55440
IDS Aircraft Services Corporation Director and President
IDS Financial Services Inc. Senior Vice President
<PAGE>
PAGE 63
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Harold E. Burke, Vice President and Assistant General Counsel
American Express Service Corporation IDS Tower 10 Vice President
IDS Financial Services Inc. Minneapolis, MN 55440 Vice President and
Assistant General Counsel
Daniel J. Candura, Vice President--Marketing Support
IDS Financial Services Inc. IDS Tower 10 Vice President-Marketing
Minneapolis, MN 55440 Support
Cynthia M. Carlson, Vice President--IDS Securities Services
American Enterprise Investment IDS Tower 10 Director, President and
Services Inc. Minneapolis, MN 55440 Chief Executive Officer
IDS Financial Services Inc. Vice President-IDS
Securities Services
Orison Y. Chaffee III, Vice President--Field Real Estate
IDS Financial Services Inc. IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Real Estate
James E. Choat, Director and Senior Vice President--Field Management
American Express Minnesota Foundation IDS Tower 10 Director
American Express Service Corporation Minneapolis, MN 55440 Vice President
IDS Financial Services Inc. Senior Vice President-
Field Management
IDS Insurance Agency of Alabama Inc. Vice President--North
Central Region
IDS Insurance Agency of Arkansas Inc. Vice President--North
Central Region
IDS Insurance Agency of Massachusetts Inc. Vice President--North
Central Region
IDS Insurance Agency of Nevada Inc. Vice President--North
Central Region
IDS Insurance Agency of New Mexico Inc. Vice President--North
Central Region
IDS Insurance Agency of North Carolina Inc. Vice President--North
Central Region
IDS Insurance Agency of Ohio Inc. Vice President--North
Central Region
IDS Insurance Agency of Wyoming Inc. Vice President-- North
Central Region
IDS Property Casualty Insurance Co. Director
<PAGE>
PAGE 64
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Kenneth J. Ciak, Vice President and General Manager--IDS Property Casualty
IDS Financial Services Inc. IDS Tower 10 Vice President and General
Minneapolis, MN 55440 Manager-IDS Property
Casualty
IDS Property Casualty Insurance Co. I WEG Blvd. Director and President
DePere, Wisconsin 54115
Roger C. Corea, Region Vice President--Northeast Region
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Region Vice President-
Northeast Region
IDS Insurance Agency of Alabama Inc. Vice President -
Northeast Region
IDS Insurance Agency of Arkansas Inc. Vice President -
Northeast Region
IDS Insurance Agency of Massachusetts Inc. Vice President -
Northeast Region
IDS Insurance Agency of Nevada Inc. Vice President -
Northeast Region
IDS Insurance Agency of New Mexico Inc. Vice President -
Northeast Region
IDS Insurance Agency of North Carolina Inc. Vice President -
Northeast Region
IDS Insurance Agency of Ohio, Inc. Vice President -
Northeast Region
IDS Insurance Agency of Wyoming Inc. Vice President -
Northeast Region
IDS Life Insurance Co. of New York Box 5144 Director
Albany, NY 12205
Kevin F. Crowe, Region Vice President--Atlantic Region
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Region Vice President -
Atlantic Region
Alan R. Dakay, Vice President--Institutional Insurance Marketing
American Enterprise Life Insurance Co. IDS Tower 10 Director and President
Minneapolis, MN 55440
American Partners Life Insurance Co. Director and President
IDS Financial Services Inc. Vice President -
Institutional Insurance
Marketing
IDS Life Insurance Company Vice President -
Institutional Insurance
Marketing
<PAGE>
PAGE 65
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
William F. Darland, Region Vice President--South Central Region
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Region Vice President-
South Central Region
IDS Insurance Agency of Alabama Inc. Vice President-
South Central Region
IDS Insurance Agency of Arkansas Inc. Vice President -
South Central Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
South Central Region
IDS Insurance Agency of Nevada Inc. Vice President-
South Central Region
IDS Insurance Agency of New Mexico Inc. Vice President-
South Central Region
IDS Insurance Agency of North Carolina Inc. Vice President-
South Central Region
IDS Insurance Agency of Ohio Inc. Vice President-
South Central Region
IDS Insurance Agency of Wyoming Inc. Vice President-
South Central Region
William H. Dudley, Director, Executive Vice President--Investment and Brokerage Operations
IDS Advisory Group Inc. IDS Tower 10 Director
Minneapolis, MN 55440
IDS Capital Holdings Inc. Director
IDS Financial Services Inc. Director, Executive Vice
President-Investment and
Brokerage Operations
IDS Futures Corporation Director
IDS Futures III Corporation Director
IDS International, Inc. Director
IDS Securities Corporation Director, Chairman of the
Board, President and
Chief Executive Officer
Roger S. Edgar, Director and Senior Vice President--Information Systems
IDS Financial Services Inc. IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Information Systems
Gordon L. Eid, Director, Senior Vice President and Deputy General Counsel
IDS Financial Services Inc. IDS Tower 10 Senior Vice President and
General Counsel
IDS Insurance Agency of Alabama Inc. Director and Vice President
IDS Insurance Agency of Arkansas Inc. Director and Vice President
IDS Insurance Agency of Massachusetts Inc. Director and Vice President
IDS Insurance Agency of Nevada Inc. Director and Vice President
<PAGE>
PAGE 66
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Insurance Agency of New Mexico Inc. Director and Vice President
IDS Insurance Agency of North Carolina Inc. Director and Vice President
IDS Insurance Agency of Ohio Inc. Director and Vice President
IDS Insurance Agency of Wyoming Inc. Director and Vice President
IDS Real Estate Services, Inc. Vice President
Investors Syndicate Development Corp. Director
Mark A. Ernst, Vice President
American Enterprise Investment IDS Tower 10 Director
Services Inc. Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-Tax and
Business Services
Gordon M. Fines, Vice President--Mutual Fund Equity Investments
IDS Advisory Group Inc. IDS Tower 10 Executive Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-
Mutual Fund Equity
Investments
IDS International Inc. Vice President and
Portfolio Manager
Louis C. Fornetti, Director and Senior Vice President--Corporate Controller
American Enterprise Investment IDS Tower 10 Vice President
Services Inc. Minneapolis, MN 55440
IDS Capital Holdings Inc. Senior Vice President
IDS Certificate Company Vice President
IDS Financial Services Inc. Senior Vice President-
Corporate Controller
IDS Insurance Agency of Alabama Inc. Vice President
IDS Insurance Agency of Arkansas Inc. Vice President
IDS Insurance Agency of Massachusetts Inc. Vice President
IDS Insurance Agency of Nevada Inc. Vice President
IDS Insurance Agency of New Mexico Inc. Vice President
IDS Insurance Agency of North Carolina Inc. Vice President
IDS Insurance Agency of Ohio Inc. Vice President
IDS Insurance Agency of Wyoming Inc. Vice President
IDS Life Insurance Company Director
IDS Life Series Fund, Inc. Vice President
IDS Life Variable Annuity Funds A&B Vice President
IDS Property Casualty Insurance Co. Director and Vice President
IDS Real Estate Services, Inc. Vice President
IDS Sales Support Inc. Director
IDS Securities Corporation Vice President
IDS Trust Company Director
Investors Syndicate Development Corp. Vice President
<PAGE>
PAGE 67
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Douglas L. Forsberg, Vice President--Securities Services
IDS Financial Services Inc. Vice President-
Securities Services
Carl W. Gans, Region Vice President--North Central Region
IDS Financial Services Inc. Region Vice President-
North Central Region
Robert G. Gilbert, Vice President--Real Estate
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Real Estate
John J. Golden, Vice President--Field Compensation Development
IDS Financial Services Inc. IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Compensation Development
Harvey Golub, Director
American Express Company American Express Tower Director and President
World Financial Center
New York, New York 10285
American Express Travel Chairman and Chief
Related Services Company, Inc. Executive Officer
National Computer Systems, Inc. 11000 Prairie Lakes Drive Director
Minneapolis, MN 55440
Morris Goodwin Jr., Vice President and Corporate Treasurer
American Enterprise Investment IDS Tower 10 Vice President and
Services Inc. Minneapolis, MN 55440 Treasurer
American Enterprise Life Insurance Co. Vice President and
Treasurer
American Express Minnesota Foundation Director, Vice President
and Treasurer
American Express Service Corporation Vice President and
Treasurer
IDS Advisory Group Inc. Vice President and
Treasurer
IDS Aircraft Services Corporation Vice President and
Treasurer
IDS Cable Corporation Vice President and
Treasurer
IDS Cable II Corporation Vice President and
Treasurer
IDS Capital Holdings Inc. Vice President and
Treasurer
IDS Certificate Company Vice President and
Treasurer<PAGE>
PAGE 68
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Deposit Corp. Director, President
and Treasurer
IDS Financial Services Inc. Vice President and
Corporate Treasurer
IDS Insurance Agency of Alabama Inc. Vice President and
Treasurer
IDS Insurance Agency of Arkansas Inc. Vice President and
Treasurer
IDS Insurance Agency of Massachusetts Inc. Vice President and
Treasurer
IDS Insurance Agency of Nevada Inc. Vice President and
Treasurer
IDS Insurance Agency of New Mexico Inc. Vice President and
Treasurer
IDS Insurance Agency of North Carolina Inc. Vice President and
Treasurer
IDS Insurance Agency of Ohio Inc. Vice President and
Treasurer
IDS Insurance Agency of Wyoming Inc. Vice President and
Treasurer
IDS International, Inc. Vice President and
Treasurer
IDS Life Insurance Company Vice President and
Treasurer
IDS Life Series Fund, Inc. Vice President and
Treasurer
IDS Life Variable Annuity Funds A&B Vice President and
Treasurer
IDS Management Corporation Vice President and
Treasurer
IDS Partnership Services Corporation Vice President and
Treasurer
IDS Plan Services of California, Inc. Vice President and
Treasurer
IDS Property Casualty Insurance Co. Vice President and
Treasurer
IDS Real Estate Services, Inc Vice President and
Treasurer
IDS Realty Corporation Vice President and
Treasurer
IDS Sales Support Inc. Director, Vice President
and Treasurer
IDS Securities Corporation Vice President and
Treasurer
Investors Syndicate Development Corp. Vice President and
Treasurer
NCM Capital Management Group, Inc. 2 Mutual Plaza Director
501 Willard Street
Durham, NC 27701
Sloan Financial Group, Inc. Director
<PAGE>
PAGE 69
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Suzanne Graf, Vice President--Systems Services
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Systems Services
David A. Hammer, Vice President and Marketing Controller
IDS Financial Services Inc. IDS Tower 10 Vice President and
Minneapolis, MN 55440 Marketing Controller
IDS Plan Services of California, Inc. Director and Vice President
Robert L. Harden, Region Vice President--Mid-Atlantic Region
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Region Vice President-
Mid Atlantic Region
IDS Insurance Agency of Alabama Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Nevada Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of North Carolina Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Ohio Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Mid Atlantic Region
Lorraine R. Hart, Vice President--Insurance Investments
American Enterprise Life IDS Tower 10 Vice President-Investments
Insurance Company Minneapolis, MN 55440
American Partners Life Insurance Co. Director and Vice
President-Investments
IDS Certificate Company Vice President-Investments
IDS Financial Services Inc. Vice President-Insurance
Investments
IDS Life Insurance Company Vice President-Investments
Mark S. Hays, Vice President--Senior Portfolio Manager, IDS International
IDS Financial Services Inc. IDS Tower 10 Vice President-Senior
Minneapolis, MN 55440 Portfolio Manager, IDS
International
IDS Fund Management Limited Director
IDS International, Inc. Senior Vice President
<PAGE>
PAGE 70
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Brian M. Heath, Region Vice President--Southwest Region
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Region Vice President-
Southwest Region
IDS Insurance Agency of Alabama Inc. Vice President-
Southwest Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Southwest Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
Southwest Region
IDS Insurance Agency of Nevada Inc. Vice President-
Southwest Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Southwest Region
IDS Insurance Agency of North Carolina Inc. Vice President-
Southwest Region
IDS Insurance Agency of Ohio Inc. Vice President-
Southwest Region
IDS Insurance Agency of Texas Inc. Director and President
IDS Insurance Agency of Wyoming Inc. Vice President-
Southwest Region
Raymond E. Hirsch, Vice President--Senior Portfolio Manager
IDS Advisory Group Inc. IDS Tower 10 Vice President
IDS Financial Services Inc. Minneapolis, MN 55440 Vice President-Senior
Portfolio Manager
James G. Hirsh, Vice President and Assistant General Counsel
IDS Financial Services Inc. IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
IDS Insurance Agency of Alabama Inc. Vice President
IDS Insurance Agency of Arkansas Inc. Vice President
IDS Insurance Agency of Massachusetts Inc. Vice President
IDS Insurance Agency of Nevada Inc. Vice President
IDS Insurance Agency of New Mexico Inc. Vice President
IDS Insurance Agency of North Carolina Inc. Vice President
IDS Insurance Agency of Ohio Inc. Vice President
IDS Insurance Agency of Wyoming Inc. Vice President
IDS Securities Corporation Director, Vice President
and General Counsel
Kevin P. Howe, Vice President--Government and Customer Relations and Chief Compliance Officer
American Enterprise Investment IDS Tower 10 Vice President and
Services Inc. Minneapolis, MN 55440 Compliance Officer
American Express Service Corporation Vice President
IDS Financial Services Inc. Vice President-
Government and
Customer Relations
<PAGE>
PAGE 71
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
David R. Hubers, Director, President and Chief Executive Officer
American Express Service Corporation IDS Tower 10 Director and President
Minneapolis, MN 55440
IDS Aircraft Services Corporation Director
IDS Certificate Company Director
IDS Financial Services Inc. Chairman, Chief Executive
Officer and President
IDS Life Insurance Company Director
IDS Plan Services of California, Inc. Director and President
IDS Property Casualty Insurance Co. Director
Marietta Johns, Director and Senior Vice President--Field Management
IDS Financial Services Inc. IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 ACUMA Ltd.
Douglas R. Jordal, Vice President--Taxes
IDS Aircraft Services Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-Taxes
Craig A. Junkins, Vice President--IDS 1994 Implementation Planning and Financial Planning
Development
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-IDS 1994
Implementation Planning
and Financial Planning
Development
James E. Kaarre, Vice President--Marketing Information
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Marketing Information
G. Michael Kennedy, Vice President--Investment Services and Investment Research
IDS Financial Services Inc. IDS Tower 10 Vice President-Investment
Minneapolis, MN 55440 Services and Investment
Research
Susan D. Kinder, Director and Senior Vice President--Human Resources
American Express Minnesota Foundation IDS Tower 10 Director
Minneapolis, MN 55440
American Express Service Corporation Vice President
IDS Financial Services Inc. Senior Vice President-
Human Resources
<PAGE>
PAGE 72
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Richard W. Kling, Vice President--Insurance Marketing and Products
American Enterprise Life Insurance Co. IDS Tower 10 Director
Minneapolis, MN 55440
American Partners Life Insurance Co. Director and Chairman of
the Board
IDS Financial Services Inc. Vice President-
Insurance Marketing and
Products
IDS Insurance Agency of Alabama Inc. Director and Executive Vice
President
IDS Insurance Agency of Arkansas Inc. Director and Executive Vice
President
IDS Insurance Agency of Massachusetts Inc. Director and Executive Vice
President
IDS Insurance Agency of Nevada Inc. Director and Executive Vice
President
IDS Insurance Agency of New Mexico Inc. Director and Executive Vice
President
IDS Insurance Agency of North Carolina Inc. Director and Executive Vice
President
IDS Insurance Agency of Ohio Inc. Director and Executive Vice
President
IDS Insurance Agency of Wyoming Inc. Director and Executive Vice
President
IDS Life Insurance Company Director and President
IDS Life Series Fund, Inc. Director and President
IDS Life Variable Annuity Funds A&B Member of Board of
Managers, Chairman of the
Board and President
IDS Property Casualty Insurance Co. Director and Chairman of
the Board
IDS Life Insurance Company P.O. Box 5144 Director
of New York Albany, NY 12205
Harold D. Knutson, Vice President--System Services
IDS Financial Services Inc. IDS Tower 10 Vice President--
Minneapolis, MN 55440 System Services
Paul F. Kolkman, Vice President--Corporate Actuary
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Corporate Actuary
IDS Life Insurance Company Director and Executive
Vice President
IDS Life Series Fund, Inc. Vice President and Chief
Actuary
Claire Kolmodin, Vice President--Service Quality
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Service Quality
<PAGE>
PAGE 73
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
David S. Kreager, Vice President--Field Management Development
IDS Financial Services Inc. IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Management Development
Christopher R. Kudrna, Vice President--Systems and Technology Development
IDS Financial Services Inc. IDS Tower 10 Vice President-Systems and
Minneapolis, MN 55440 Technology Development
Steven C. Kumagai, Director, Senior Vice President and Associate General Sales Manager
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Director; Senior Vice
President and Associate
General Sales Manager
Mitre Kutanovski, Region Vice President--Midwest Region
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Region Vice President-
Midwest Region
Edward Labenski, Vice President--Senior Portfolio Manager
IDS Advisory Group Inc. IDS Tower 10 Senior Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-
Senior Portfolio
Manager
Peter L. Lamaison, Vice President--IDS International Division
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 IDS International
Division
IDS Fund Management Limited Director and Chairman of
the Board
IDS International, Inc. Director, President and
Chief Executive Officer
Kurt A. Larson, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Senior Portfolio Manager
<PAGE>
PAGE 74
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Ryan R. Larson, Vice President--Annuity Product Development
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Annuity Product
Development
IDS Life Insurance Company Vice President-
Annuity Product
Development
Daniel E. Laufenberg, Vice President and Chief U.S. Economist
IDS Financial Services Inc. IDS Tower 10 Vice President and
Minneapolis, MN 55440 Chief U.S. Economist
Peter A. Lefferts, Director and Senior Vice President--Banking and Certificates
IDS Life Insurance Company IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-Marketing
IDS Plan Services of California, Inc. Director
IDS Trust Company Director and Chairman of
the Board
Investors Syndicate Development Corp. Director, Chairman of the
Board and President
Douglas A. Lennick, Director, Senior Vice President and General Sales Manager
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Director, Senior Vice
President and General
Sales Manager
Mary J. Malevich, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Senior Portfolio
Manager
IDS International Inc. Vice President and
Portfolio Manager
Fred A. Mandell, Vice President--Certificate Operations
IDS Financial Services Inc. IDS Tower 10 Vice President-Certificate
Minneapolis, MN 55440 Operations
William J. McKinney, Vice President--Field Management Support
IDS Financial Services Inc. IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Management Support
<PAGE>
PAGE 75
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Thomas W. Medcalf, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. IDS Tower 10 Vice President-Senior
Minneapolis, MN 55440 Portfolio Manager
William C. Melton, Vice President-International Research and Chief International Economist
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 International Research
and Chief International
Economist
Janis E. Miller, Vice President--Mutual Funds Products and Marketing
IDS Financial Services Inc. IDS Tower 10 Vice President-Mutual Funds
Minneapolis, MN 55440 Products and Marketing
IDS Life Insurance Company Director and Executive
Vice President-Variable
Assets
IDS Life Variable Annuity Funds A&B Director
IDS Life Series Fund, Inc. Director
IDS Management Corporation Director and President
IDS Partnership Services Corporation Director and President
IDS Realty Corporation Director and President
James A. Mitchell, Director and Senior Vice President--Insurance Operations
American Enterprise Investment IDS Tower 10 Director
Services Inc. Minneapolis, MN 55440
IDS Certificate Company Director and Chairman of
the Board
IDS Financial Services Inc. Senior Vice President-
Insurance Operations
IDS Insurance Agency of Alabama Inc. Director and President
IDS Insurance Agency of Arkansas Inc. Director and President
IDS Insurance Agency of Massachusetts Inc. Director and President
IDS Insurance Agency of Nevada Inc. Director and President
IDS Insurance Agency of New Mexico Inc. Director and President
IDS Insurance Agency of North Carolina Inc. Director and President
IDS Insurance Agency of Ohio Inc. Director and President
IDS Insurance Agency of Wyoming Inc. Director and President
IDS Life Insurance Company Director, Chairman of
the Board and Chief
Executive Officer
IDS Plan Services of California, Inc. Director
IDS Property Casualty Insurance Co. Director
American Enterprise Life Insurance P.O. Box 534 Chairman of the Board
Company Minneapolis, MN 55440
IDS Life Insurance Company P.O. Box 5144 Director, Chairman
of New York Albany, NY 12205 of the Board and Chief
Executive Officer
<PAGE>
PAGE 76
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Pamela J. Moret, Vice President--Corporate Communications
American Express Minnesota Foundation IDS Tower 10 Director and President
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-
Corporate Communications
Robert J. Neis, Vice President--Information Systems Operations
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Information Systems
Operations
Vernon F. Palen, Region Vice President--Rocky Mountain Region
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Region Vice President-
Rocky Mountain Region
IDS Insurance Agency of Alabama Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Nevada Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of North Carolina Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Ohio Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Rocky Mountain Region
James R. Palmer, Vice President--Insurance Operations
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Insurance Operations
IDS Life Insurance Company Vice President-Taxes
Judith A. Pennington, Vice President--Field Technology
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Field Technology
<PAGE>
PAGE 77
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
George M. Perry, Vice President--Corporate Strategy and Development
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Corporate Strategy
and Development
IDS Insurance Agency of Alabama Inc. Director and Executive
Vice President
IDS Insurance Agency of Arkansas Inc. Director and Executive
Vice President
IDS Insurance Agency of Massachusetts Inc. Director and Executive
Vice President
IDS Insurance Agency of Nevada Inc. Director and Executive
Vice President
IDS Insurance Agency of New Mexico Inc. Director and Executive
Vice President
IDS Insurance Agency of North Carolina Inc. Director and Executive
Vice President
IDS Insurance Agency of Ohio Inc. Director and Executive
Vice President
IDS Insurance Agency of Wyoming Inc. Director and Executive
Vice President
IDS Property Casualty Insurance Co. Director
Susan B. Plimpton, Vice President -- American Express Marketing
IDS Financial Services Inc. IDS Tower 10 Vice President--
Minneapolis, MN 55440 American Express
Marketing
Ronald W. Powell, Vice President and Assistant General Counsel
IDS Cable Corporation IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant Secretary
IDS Cable II Corporation Vice President and
Assistant Secretary
IDS Financial Services Inc. Vice President and
Assistant General Counsel
IDS Management Corporation Vice President and
Assistant Secretary
IDS Partnership Services Corporation Vice President and
Assistant Secretary
IDS Plan Services of California, Inc. Vice President and
Assistant Secretary
IDS Realty Corporation Vice President and
Assistant Secretary
James M. Punch, Vice President--TransAction Services
IDS Financial Services Inc. Vice President-Trans
Action Services
<PAGE>
PAGE 78
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Frederick C. Quirsfeld, Vice President--Taxable Mutual Fund Investments
IDS Advisory Group Inc. IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President--
Taxable Mutual Fund
Investments
Roger B. Rogos, Region Vice President--Great Lakes Region
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Region Vice President-
Great Lakes Region
IDS Insurance Agency of Alabama Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Nevada Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of North Carolina Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Ohio Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Great Lakes Region
ReBecca K. Roloff, Vice President--1994 Program Director
IDS Financial Services Inc. IDS Tower 10 Vice President-1994
Minneapolis, MN 55440 Program Director
Stephen W. Roszell, Vice President--Advisory Institutional Marketing
IDS Advisory Group Inc. IDS Tower 10 President and Chief
Minneapolis, MN 55440 Executive Officer
IDS Financial Services Inc. Vice President-Advisory
Institutional Marketing
Robert A. Rudell, Vice President--IDS Institutional Retirement Services
IDS Financial Services Inc. IDS Tower 10 Vice President-IDS
Minneapolis, MN 55440 Institutional Retirement
Services
IDS Sales Support Inc. Director and President
IDS Trust Company Director
<PAGE>
PAGE 79
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
John P. Ryan, Vice President and General Auditor
IDS Financial Services Inc. IDS Tower 10 Vice President and General
Minneapolis, MN 55440 Auditor
Erven A. Samsel, Director and Senior Vice President--Field Management
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Senior Vice President-
Field Management
IDS Insurance Agency of Alabama Inc. Vice President-
New England Region
IDS Insurance Agency of Arkansas Inc. Vice President-
New England Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
New England Region
IDS Insurance Agency of Nevada Inc. Vice President-
New England Region
IDS Insurance Agency of New Mexico Inc. Vice President-
New England Region
IDS Insurance Agency of North Carolina Inc. Vice President-
New England Region
IDS Insurance Agency of Ohio Inc. Vice President-
New England Region
IDS Insurance Agency of Wyoming Inc. Vice President-
New England Region
R. Reed Saunders, Director, Senior Vice President and Chief Marketing Officer
American Express Service Corporation IDS Tower 10 Director and Vice
Minneapolis, MN 55440 President
IDS Financial Services Inc. Director, Senior Vice
President and Chief
Marketing Officer
IDS Property Casualty Insurance Co. Director
Stuart A. Sedlacek, Vice President--Structured Products Group
American Enterprise Life Insurance Co. IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President, Assured
Assets
IDS Certificate Company Director and President
IDS Financial Services Inc. Vice President-
Structured Products
Group
IDS Life Insurance Company Director and Executive
Vice President, Assured
Assets
<PAGE>
PAGE 80
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Donald K. Shanks, Vice President--Property Casualty
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Property Casualty
IDS Property Casualty Insurance Co. Senior Vice President
F. Dale Simmons, Vice President--Senior Portfolio Manager, Insurance Investments
American Enterprise Life Insurance Co. IDS Tower 10 Vice President-Real
Minneapolis, MN 55440 Estate Loan Management
American Partners Life Insurance Co. Vice President-Real
Estate Loan Management
IDS Certificate Company Vice President-Real
Estate Loan Management
IDS Financial Services Inc. Vice President-Senior
Portfolio Manager
Insurance Investments
IDS Life Insurance Company Vice President-Real
Estate Loan Management
IDS Partnership Services Corporation Vice President
IDS Real Estate Services Inc. Director and Vice President
IDS Realty Corporation Vice President
Judy P. Skoglund, Vice President--Human Resources and Organization Development
IDS Financial Services Inc. IDS Tower 10 Vice President-Human
Minneapolis, MN 55440 Resources and
Organization Development
Julian W. Sloter, Region Vice President--Southeast Region
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Region Vice President-
Southeast Region
IDS Insurance Agency of Alabama Inc. Vice President-
Southeast Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Southeast Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
Southeast Region
IDS Insurance Agency of Nevada Inc. Vice President-
Southeast Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Southeast Region
IDS Insurance Agency of North Carolina Inc. Vice President-
Southeast Region
IDS Insurance Agency of Ohio Inc. Vice President-
Southeast Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Southeast Region
<PAGE>
PAGE 81
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Ben C. Smith, Vice President--Workplace Marketing
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Workplace Marketing
William A. Smith, Vice President--Finance and CFO/UK
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Finance and CFO/UK
James B. Solberg, Vice President--Advanced Financial Planning
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Advanced Financial
Planning
Bridget Sperl, Vice President--Human Resources Management Services
IDS Financial Services Inc. IDS Tower 10 Vice President-Human
Minneapolis, MN 55440 Resources Management
Jeffrey E. Stiefler, Director
American Express Company American Express Tower Director and President
World Financial Center
New York, NY 10285
Lois A. Stilwell, Vice President--Sales Training and Communications
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Sales Training and
Communications
William A. Stoltzmann, Vice President and Assistant General Counsel
American Partners Life Insurance Co. IDS Tower 10 Director, Vice President,
Minneapolis, MN 55440 General Counsel and
Secretary
IDS Financial Services Inc. Vice President and
Assistant General Counsel
IDS Life Insurance Company Vice President, General
Counsel and Secretary
American Enterprise Life Insurance P.O. Box 534 Director, Vice President,
Company Minneapolis, MN 55440 General Counsel
and Secretary
James J. Strauss, Vice President--Corporate Planning and Analysis
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Corporate Planning and
Analysis
<PAGE>
PAGE 82
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Jeffrey J. Stremcha, Vice President--Information Resource Management/ISD
IDS Financial Services Inc. IDS Tower 10 Vice President-Information
Minneapolis, MN 55440 Resource Management/ISD
Fenton R. Talbott, Director and Senior Vice President--ACUMA Ltd.
ACUMA Ltd. ACUMA House President and Chief
The Glanty, Egham Executive Officer
Surrey TW 20 9 AT
UK
Neil G. Taylor, Vice President--Field Business Systems
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Field Business Systems
John R. Thomas, Director and Senior Vice President--Mutual Funds Operations
IDS Bond Fund, Inc. IDS Tower 10 Director
Minneapolis, MN 55440
IDS California Tax-Exempt Trust Trustee
IDS Discovery Fund, Inc. Director
IDS Equity Plus Fund, Inc. Director
IDS Extra Income Fund, Inc. Director
IDS Federal Income Fund, Inc. Director
IDS Financial Services Inc. Senior Vice President-
Mutual Funds Operations
IDS Futures Corporation Director and President
IDS Futures III Corporation Director and President
IDS Global Series, Inc. Director
IDS Growth Fund, Inc. Director
IDS High Yield Tax-Exempt Fund, Inc. Director
IDS Investment Series, Inc. Director
IDS Managed Retirement Fund, Inc. Director
IDS Market Advantage Series, Inc. Director
IDS Money Market Series, Inc. Director
IDS New Dimensions Fund, Inc. Director
IDS Precious Metals Fund, Inc. Director
IDS Progressive Fund, Inc. Director
IDS Selective Fund, Inc. Director
IDS Special Tax-Exempt Series Trust Trustee
IDS Stock Fund, Inc. Director
IDS Strategy Fund, Inc. Director
IDS Tax-Exempt Bond Fund, Inc. Director
IDS Tax-Free Money Fund, Inc. Director
IDS Utilities Income Fund, Inc. Director
<PAGE>
PAGE 83
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Melinda S. Urion, Vice President--Insurance Controller
American Enterprise Life IDS Tower 10 Vice President and
Insurance Company Minneapolis, MN 55440 Controller
American Partners Life Insurance Co. Director, Vice President,
Controller and Treasurer
IDS Financial Services Inc. Vice President-Insurance
Controller
IDS Life Insurance Company Director, Executive Vice
President and Controller
IDS Life Series Fund, Inc. Vice President and
Controller
Wesley W. Wadman, Vice President--Senior Portfolio Manager
IDS Advisory Group Inc. IDS Tower 10 Executive Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-
Senior Portfolio Manager
IDS Fund Management Limited Director
IDS International, Inc. Senior Vice President
Norman Weaver, Jr., Director and Senior Vice President--Field Management
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Senior Vice President-
Field Management
IDS Insurance Agency of Alabama Inc. Vice President-
Pacific Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Pacific Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
Pacific Region
IDS Insurance Agency of Nevada Inc. Vice President-
Pacific Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Pacific Region
IDS Insurance Agency of North Carolina Inc. Vice President-
Pacific Region
IDS Insurance Agency of Ohio Inc. Vice President-
Pacific Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Pacific Region
Michael L. Weiner, Vice President--Corporate Tax Operations
IDS Capital Holdings Inc. IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-Corporate
IDS Futures III Corporation Vice President, Treasurer
and Secretary
<PAGE>
PAGE 84
Item 5. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Futures Brokerage Group Vice President
IDS Futures Corporation Vice President, Treasurer
and Secretary
Lawrence J. Welte, Vice President--Investment Administration
IDS Financial Services Inc. IDS Tower 10 Vice President-
Minneapolis, MN 55440 Investment Administration
IDS Securities Corporation Director, Executive Vice
President and Chief
Operating Officer
William N. Westhoff, Director and Senior Vice President--Fixed Income Management
American Enterprise Life Insurance IDS Tower 10 Director
Company Minneapolis, MN 55440
IDS Financial Services Inc. Senior Vice President-
Fixed Income Management
IDS Partnership Services Corporation Director and Vice President
IDS Real Estate Services Inc. Director, Chairman of the
Board and President
IDS Realty Corporation Director and Vice President
Investors Syndicate Development Corp. Director
Edwin M. Wistrand, Vice President and Assistant General Counsel
IDS Financial Services Inc. IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
Michael R. Woodward, Director and Senior Vice President--Field Management
American Express Service Corporation IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Financial Services Inc. Senior Vice President-
Field Management
IDS Insurance Agency of Alabama Inc. Vice President-
North Region
IDS Insurance Agency of Arkansas Inc. Vice President-
North Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
North Region
IDS Insurance Agency of Nevada Inc. Vice President-
North Region
IDS Insurance Agency of New Mexico Inc. Vice President-
North Region
IDS Insurance Agency of North Carolina Inc. Vice President-
North Region
IDS Insurance Agency of Ohio Inc. Vice President-
North Region
IDS Insurance Agency of Wyoming Inc. Vice President-
North Region
IDS Life Insurance Company Box 5144 Director
of New York Albany, NY 12205
</TABLE>
<PAGE>
PAGE 85
PART II. OTHER INFORMATION (Continued)
Item 6. PRINCIPAL UNDERWRITERS
(a) IDS Life is the Principal underwriter for IDS Life
Variable Annuity Fund A, IDS Life Variable Annuity
Fund B, IDS Life Accounts F, IZ, JZ, G, H, and N,
IDS Life Account RE, IDS Life Account MGA and IDS
Life Account SLB.
(b) Directors and Officers of the Underwriter
<TABLE><CAPTION>
Positions and
Name Principal Business Address Offices with Underwriter
<S> <C> <C>
Timothy V. Bechtold IDS Tower 10 Vice President-Insurance
Minneapolis, MN 55440 Product Development
David J. Berry IDS Tower 10 Vice President
Minneapolis, MN 55440
Alan R. Dakay IDS Tower 10 Vice President-
Minneapolis, MN 55440 Institutional Insurance
Marketing
Louis C. Fornetti IDS Tower 10 Director
Minneapolis, MN 55440
Morris Goodwin Jr. IDS Tower 10 Vice President and Treasurer
Minneapolis, MN 55440
Lorraine R. Hart IDS Tower 10 Vice President-Investments
Minneapolis, MN 55440
David R. Hubers IDS Tower 10 Director
Minneapolis, MN 55440
Roger P. Husemoller IDS Tower 10 Vice President-
Minneapolis, MN 55440 Intercorporate Insurance
Operations
Richard W. Kling IDS Tower 10 Director and President
Minneapolis, MN 55440
Paul F. Kolkman IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President
Ryan R. Larson IDS Tower 10 Vice President-
Minneapolis, MN 55440 Annuity Product
Development
Peter A. Lefferts IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Marketing
Janis E. Miller IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Variable Assets<PAGE>
PAGE 86
Item 6.(b) Directors and Officers of the Underwriter (Continued)
Positions and
Name Principal Business Address Offices with Underwriter
James A. Mitchell IDS Tower 10 Director, Chairman of
Minneapolis, MN 55440 the Board and Chief
Executive Officer
Barry J. Murphy IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Client Service
Mary O. Neal IDS Tower 10 Vice President-
Minneapolis, MN 55440 Sales Support
James R. Palmer IDS Tower 10 Vice President-Taxes
Minneapolis, MN 55440
F. Dale Simmons IDS Tower 10 Vice President-
Minneapolis, MN 55440 Real Estate
Loan Management
William A. Stoltzmann IDS Tower 10 Vice President, General
Minneapolis, MN 55440 Counsel and Secretary
Melinda S. Urion IDS Tower 10 Director, Executive
Minneapolis, MN 55440 Vice President and
Controller
</TABLE>
Item 7. LOCATION OF ACCOUNTS AND RECORDS
IDS Life Insurance Company
IDS Tower
Minneapolis, Minnesota
Item 8. MANAGEMENT SERVICES
Not Applicable.
Item 9. DISTRIBUTION EXPENSES
Not Applicable.
Item 10. UNDERTAKINGS
(a) and (b) These undertakings were filed in Registrant's
initial Registration Statement.
<PAGE>
PAGE 87
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, IDS Life Insurance Company, on
behalf of the Registrant, certifies that it meets all of the
requirements for effectiveness of this Amendment to its
Registration Statement pursuant to Rule 486(b) under the Securities
Act of 1933 and has duly caused this Amendment to its Registration
Statement to be signed on its behalf by the undersigned thereunto
duly authorized, in the city of Minneapolis, and State of Minnesota
on the 27th day of April, 1994.
IDS LIFE VARIABLE ANNUITY FUND A
By:
Richard W. Kling*
President
Pursuant to the requirements of the Securities Act of 1933, this
Amendment to the Registration Statement has been signed below by
the following persons in the capacities indicated on the 27th day
of April, 1994.
Signature Title
/s/ Edward Landes* Member, Board of Managers
Edward Landes
/s/ Carl N. Platou* Member, Board of Managers
Carl N. Platou
/s/ Gordon H. Ritz* Member, Board of Managers
Gordon H. Ritz
Member, Board of Managers
Richard W. Kling
Member, Board of Managers
Janis E. Miller
* Signed pursuant to Powers of Attorney filed as Exhibit 16 to
Registrant's Post-Effective Amendment No. 50 to this Registration
Statement No. 29081.
by
Mary Ellyn Minenko
<PAGE>
PAGE 88
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, IDS Life Insurance Company, on
behalf of the Registrant, certifies that it meets all of the
requirements for effectiveness of this Amendment to its
Registration Statement pursuant to Rule 486(b) under the Securities
Act of 1933 and has duly caused this Amendment to its Registration
Statement to be signed on its behalf by the undersigned thereunto
duly authorized, in the city of Minneapolis, and State of Minnesota
on the 27th day of April, 1994.
IDS LIFE INSURANCE COMPANY
By: /s/ Richard W. Kling*
Richard W. Kling
President
Pursuant to the requirements of the Securities Act of 1933, this
Amendment to the Registration Statement has been signed below by
the following persons in the capacities indicated on the 27th day
of April, 1994.
Signature Title
/s/ James A. Mitchell* Chairman of the Board
James A. Mitchell and Chief Executive
Officer
/s/ Richard W. Kling* Director and President
Richard W. Kling
/s/ Louis C. Fornetti* Director
Louis C. Fornetti
/s/ David R. Hubers* Director
David R. Hubers
/s/ Paul F. Kolkman* Director and Executive Vice
Paul F. Kolkman President
/s/ Peter A. Lefferts* Director and Executive Vice
Peter A. Lefferts President, Marketing
/s/ Janis E. Miller* Director and Executive Vice
Janis E. Miller President, Variable Assets
/s/ Barry J. Murphy* Director and Executive Vice
Barry J. Murphy President, Client Service
/s/ Stuart A. Sedlacek* Director and Executive Vice
Stuart A. Sedlacek President, Assured Assets
/s/ Melinda S. Urion* Director, Exective Vice
Melinda S. Urion President and Controller
<PAGE>
PAGE 89
* Signed pursuant to Powers of Attorney, dated March 31, 1994,
filed electronically herewith.
by
Mary Ellyn Minenko
<PAGE>
PAGE 90
CONTENTS OF THIS
POST-EFFECTIVE AMENDMENT NO. 56
TO REGISTRATION STATEMENT NO. 2-29081
This Post-Effective Amendment comprises the following papers and
documents.
The facing sheet.
Part I.
Cross Reference Sheet.
Prospectus.
Financial Statements.
Part II.
Other Information.
Signatures.
Exhibits.
<PAGE>
<PAGE>
EXHIBIT INDEX
Exhibit 1(b)(1) Resolution of the Executive Committee of
the Board of Directors of Investors
Syndicate Life Insurance and Annuity
Company, dated May 10, 1968
Exhibit 1(b)(5)(a) Investment Advisory Agreement between IDS
Life Insurance Company and IDS/American
Express dated January 12, 1984
Exhibit 1(b)(5)(b) Investment Management and Advisory
Agreements between IDS Life Insurance
Company and IDS Life Variable Annuity
Fund A, dated January 12, 1984
Exhibit 1(b)(6) Distribution and Services Agreement
between Registrant and IDS Life Insurance
Company, dated January 12, 1984
Exhibit 1(b)(8)(a) Custodian Agreement between Registrant,
IDS Life Insurance Company and IDS Bank &
Trust, dated July 12, 1990
Exhibit 1(b)(11) Consent of Independent Auditors, is filed
electronically herewith.
Exhibit 1(b)(16) Powers of Attorney to sign Amendments to
this Registration Statement, dated
March 31, 1994
<PAGE>
<PAGE>
I, the undersigned, Assistant Secretary of Investors Syndicate Life
Insurance and Annuity Company, a Minnesota Corporation, do hereby
certify that the following is a true and correct copy of a
resolution duly adopted by the Executive Committee of the Board of
Directors of this Corporation on the 10th day of May, 1968 and is
in full force and effect and has not been rescinded:
WHEREAS, the Board of Directors of the Corporation, by resolution
passed November 8, 1967, authorized the establishment of a separate
account and the issuance of contracts on a variable basis; and
WHEREAS, such Board further authorized and directed this Executive
Committee to take such further action as may be necessary or
desirable to accomplish such purpose;
NOW, THEREFORE, BE IT RESOLVED, That a separate account be and it
hereby is established in accordance with Section 61A.14 of the
Minnesota Statutes, such separate account to be known as IDS
Variable Annuity Fund A.
Witness my hand and
seal of the Corporation
this date: May 10, 1968 \s\ John E. McTavish
<PAGE>
<PAGE>
PAGE 1
INVESTMENT ADVISORY AGREEMENT
Agreement effective the 12th day of Jan, 1984, by and between IDS
Life Insurance Company (IDS Life) and IDS/American Express Inc.
(IDS), superseding the agreement between Investors Diversified
Services, Inc. and IDS Life, dated August 26, 1981.
Whereas IDS Life has heretofore established certain separate
accounts, and may in the future establish one or more additional
separate accounts, as authorized by Minnesota law; and
Whereas IDS has a staff of experienced investment personnel
and facilities for the kind of investment portfolio contemplated
for such separate account or accounts;
NOW THEREFORE it is mutually agreed:
(1) Separate Account or Accounts to Which Applicable. This
agreement shall only be effective as to any separate account in
respect of which:
(a) IDS Life has notified IDS in writing to include such separate
account under the terms of this agreement; and
(b) IDS Life has an existing legal duty to provide investment
management for such separate account; and
(c) To the extent required by the Investment Company Act of 1940,
this agreement has been approved by a vote of the persons
having an interest in such separate account or an exemptive
order from such requirement of approval has been obtained from
the Securities and Exchange Commission; and continuance of its
applicability is approved as required by the Investment
Company Act of 1940; and
(d) The applicability of this agreement has not been terminated as
provided in paragraph 8 hereof.
(2) Investment Advice. IDS will continuously keep under
observation the investment portfolio and investment objectives
of any separate account covered by the terms of this agreement
and will, with respect to each such separate account,
continuously furnish to IDS Life (1) assistance and advice in
investment planning, (2) recommendations as to particular
purchases and sales of securities, and (3) information as to
economic and market factors and other information relating to
the investment plans of and the particular investment held in
any such separate account.
(3) Information Furnished to IDS. IDS Life shall furnish such
information to IDS as to holdings, purchases, and sales of
securities under its management and investment portfolio
requirements as will reasonably enable IDS to furnish the
investment advice under this agreement.
(4) Furnishing Advice, Information and Notices. The advice,
information, reports, etc., furnished under this agreement to
IDS Life and any notice under this agreement shall be
furnished to the President of IDS Life or to the person or
persons designated in writing by him or by a person to whom he
<PAGE>
PAGE 2
has delegated the authority to so designate. Any information
or notice provided to IDS under the terms of this agreement
shall be furnished to the President of IDS or to the person or
persons designated in writing by him or by a person to whom he
has delegated the authority to so designate.
(5) Purchase and Sale of Securities. IDS Life may, in its
discretion, direct purchase or sale orders to IDS which will
then place any such order with a broker or brokers or
negotiate such executions. All transactions will be executed
in a manner and in accordance with the procedures and
standards as set forth in, or as established in accordance
with, the investment management agreement between IDS Life and
such separate account. IDS Life shall furnish IDS with
information concerning such procedures and standards, and any
amendments thereto; and IDS will maintain records to assure
that such transactions have been executed in accordance
therewith. It is understood that IDS Securities Corporation,
a subsidiary of IDS and a member firm of the Pacific Stock
Exchange, may, subject to paragraph 6 of this agreement,
participate in brokerage commissions generated by any security
transactions under this agreement, and that other broker
dealer affiliates of IDS may be used to the extent consistent
with Section 15(f) of the Investment Company Act of 1940 and
other applicable provisions of the Federal securities laws.
(6) Compensation to IDS. The fee for the services provided by
this agreement will be determined as follows:
(a) An amount each valuation period of each separate account to
which this agreement is applicable equal to the equivalent,
for the valuation period of each such account, of .25% on an
annual basis of the net value of the assets of any such
separate account or accounts. The net value of the assets of
any such separate account shall be computed as of the close of
business on the last day of the last preceding valuation
period for each such separate account. The valuation period
of any separate account for this purpose shall be the same
period of time for which values of interest in such separate
account are redetermined.
(b) As soon as practicable after the last business day of each
month, the net profit, if any, of IDS Securities Corporation,
before income taxes payable to the United States and before
investment income, shall be determined in accordance with
generally accepted accounting principles. IDS will then
credit an amount equivalent to the portion of such net profit
attributable to transactions for each separate account of IDS
Life to which this agreement is applicable as a reduction of
the next fee payment due from IDS Life under subparagraph (a)
of this paragraph 6, subject to an adjustment in accordance
with audits of the books of IDS Securities Corporation made
periodically by independent certified public accountants. It
is understood that nothing in this subparagraph shall have the
effect of increasing the fee payment otherwise due were this
subparagraph (b) not in operation.
(c) The foregoing fee shall be paid on a monthly basis in cash by
IDS Life to IDS within five (5) business days after the last
day of each month.
<PAGE>
PAGE 3
(7) Miscellaneous.
(a) IDS Life recognizes that IDS now renders and may continue to
render investment advice and other services to other persons
which may or may not have investment policies and investments
similar to those of separate accounts included herein and that
IDS manages its own investments and those of certain
subsidiaries. IDS shall be free to render such investment
advice and other services, and IDS Life hereby consents
thereto.
(b) It is understood and agreed that in furnishing the investment
advice and other services as herein provided, neither IDS, nor
any officer, director, or agent thereof shall be held liable
to IDS Life or separate accounts included herein or creditors
or Contract Holders for errors of judgment or for anything
except willful misfeasance, bad faith, or gross negligence in
the performance of its duties, or reckless disregard of its
obligations and duties under the terms of this agreement. It
is further understood and agreed that IDS may rely upon
information furnished to it reasonably believed to be accurate
and reliable and that, except as hereinabove provided, IDS
shall not be accountable for any loss suffered by IDS Life or
separate accounts included herein by the reason of the
latter's action or non-action on the basis of any advice or
recommendation of IDS, its officers, director or agents.
(8) Renewal and Termination
(a) As to any separate account which (1) is a registered
investment company under the Investment Company Act of 1940,
and (2) this agreement has become applicable as provided in
Section 1 above, this agreement, unless terminated pursuant to
Paragraph b,c, or d below, shall continue in effect from year
to year, provided its continued applicability is specifically
approved at least annually (i) by the Board of Directors of
said separate account or by a vote of the holders of a
majority of the outstanding votes of the separate account and
(ii) by vote of a majority of the Managers who are not parties
to this agreement or interested persons of any such party,
cast in person at a meeting called for the purpose of voting
on such approval. As used in this paragraph, the term
"interested person" shall have the same meaning as set forth
in the Investment Company Act of 1940, as amended.
(b) The applicability of this agreement to any separate account
which is a registered investment company within the meaning of
the Investment Company Act of 1940 may be terminated by sixty
days' written notice to either IDS or IDS Life.
(c) IDS or IDS Life may terminate this agreement or the
applicability of this agreement to any separate account by
giving sixty days written notice to the other party.
(d) This agreement shall terminate, as to any separate account
which is a registered investment company under the Investment
Company Act of 1940, in the event of its assignment, the term
"assignment" for this purpose having the same meaning set
forth in the investment Company Act of 1940, as amended.
<PAGE>
PAGE 4
IN WITNESS WHEREOF, the parties hereto have executed the foregoing
agreement on the day and year first above written.
IDS LIFE INSURANCE COMPANY
By \s\ R.W. Kling
Executive Vice President
IDS/AMERICAN EXPRESS INC.
By \s\ Frank L. Skillern, Jr.
Sr. Vice President - Law
<PAGE>
<PAGE>
PAGE 1
INVESTMENT MANAGEMENT AGREEMENT
Agreement effective the 12th day of Jan, 1984, by and between
IDS Life Insurance Company (the "Company") and IDS Life Variable
Annuity Fund A (the "Fund"), superseding the agreement between the
Company and the Fund dated August 26, 1981.
The Fund desires to avail itself of the investment management
facilities available from the Company, and the Company is willing
to furnish such services as set forth in this Agreement.
Therefore, it is mutually agreed:
ARTICLE I: INVESTMENT MANAGEMENT SERVICES
Section 1.1: The Company shall manage the assets of the Fund by
furnishing continuously an investment program, by determining what
securities shall be purchased or sold, by directing the execution
of the purchase and sell orders, and by determining what portion of
the Fund shall be held uninvested. So long as this contract
remains in effect, determinations so made by the Company shall be
binding on the Fund, if in compliance with the restrictions set
forth in Section 1.3. The Company will report to the Board of
Managers at such times and in such detail as members of the Board
may from time to time determine to be appropriate in order to
permit the Board to determine the adherence of the Company to the
investment policies of the Fund.
Section 1.2: The Company is authorized to select the brokers or
dealers that will execute the purchases and sales of portfolio
securities for the Fund and is directed to use its best efforts to
obtain the best available price and most favorable execution,
except as prescribed herein.Subject to prior authorization by the
Fund's Board of Managers of appropriate policies and procedures,
and subject to termination at any time by the Board of Managers,
the Company may also be authorized to effect individual securities
transactions at commission rates in excess of the minimum
commission rates available, to the extent authorized by law, if the
Company determines in good faith that such amount of commission was
reasonable in relation to the value of the brokerage and research
services provided by such broker or dealer, viewed in terms of
either that particular transaction or the Company's overall
responsibilities with respect to the Fund and other accounts as to
which the Company exercises investment discretion. The Fund shall
pay all brokerage commissions and charges in the purchase and sale
of assets. It is specifically understood and agreed that IDS
Securities Corporation may, subject to section 3.1 hereof,
participate in brokerage commissions generated by a security
transaction for the Fund, and that other broker dealer affiliates
of IDS may be used to the extent consistent with Section 15(f) of
the Investment Company Act of 1940 and other applicable provisions
of the Federal securities laws.
Section 1.3: The investment management furnished by the Company
will be in accordance with general investment policies and the
provisions of the Regulations of the Fund, as may from time to time
be amended, and the provisions of applicable federal and state
laws.
<PAGE>
PAGE 2
ARTICLE II: INVESTMENT ADVISORY AGREEMENT BETWEEN THE COMPANY AND
INVESTORS DIVERSIFIED SERVICES, INC.
Section 2.1: The existence of an investment advisory agreement
between the Company and IDS/American Express Inc. (a copy of which
is attached hereto as Exhibit A) is specifically acknowledged and
approved.
ARTICLE III: COMPENSATION TO COMPANY
Section 3.1: The fee for the investment management services shall
be an amount for each valuation period of the Fund equal to the
equivalent for each such valuation period of .4%on an annual basis
of the net value of the assets of the Fund. Valuation periods
shall be determined in accordance with the annuity contracts
outstanding which have values or benefits based on the Fund. The
foregoing fee shall be reduced to the extent the fee payable by the
Company to Investors Diversified Services, Inc., under the
Investment Advisory Agreement referred to in Section 2.1 hereof is
reduced by an amount equal to net profits, if any, of IDS
Securities Corporation (determined as provided in said agreement)
attributable to transactions for the Fund. Any such reduction has
been reflected in the fee payable by the Company to Investors
Diversified Services, Inc. under the aforesaid Investment Advisory
Agreement.
Section 3.2: The fee shall be deducted on a monthly basis in cash
from the Fund by the Company within five (5) business days after
the last day of the month.
ARTICLE IV: MISCELLANEOUS
Section 4.1: The Company may render investment management and
other services to other separate accounts or companies, which may
or may not have investment policies and investments similar to
those of the Fund, and the Company also manages its own
investments. The Company shall be free to render such investment
advice and other services.
Section 4.2: This contract shall not be invalidated or in anywise
affected by the fact that members of the Board of Managers or
contract holders are or may be interested in the Company as
directors, officers, employees, agents, stockholders or otherwise
or that the Company is or may be interested in the Fund as a
contract holder or otherwise.
Section 4.3: Neither the Company, nor any officer, director or
agent thereof shall be held liable to the Board of Managers, the
Fund or its creditors or contract holders for errors of judgment or
for anything except willful misfeasance, bad faith, or gross
negligence in the performance of its duties, or reckless disregard
of its obligations and duties under the terms of this agreement.
The Company may rely upon information furnished to it reasonably
believed to be accurate and reliable.
<PAGE>
PAGE 3
ARTICLE V: RENEWAL AND TERMINATION
Section 5.1: Unless sooner terminated pursuant to Section 5.1 or
5.4 below, this agreement shall continue in effect from year to
year except that such continuance shall be specifically approved at
least annually (1) by the Board of Managers of the Fund or by a
vote of the holders of a majority of the outstanding votes of the
Fund and (2) by the vote of a majority of the Managers who are not
parties to this agreement or interested persons of any such party,
cast in person at a meeting called for the purpose of voting on
such approval. As used in this paragraph, the term "interested
person" shall have the same meaning as set forth in the Investment
Company Act of 1940, as amended.
Section 5.2: This agreement may be terminated by the Fund at any
time without penalty by giving the Company at least sixty days
notice of the intention to terminate. Such termination may be
effected either by the Board of Managers or by a vote of the
holders of a majority of votes in the Fund.
Section 5.3: Any notice under this contract shall be given in
writing, addressed and delivered, or mailed postpaid, to the party
to this agreement entitled to receive such, at the IDS Tower,
Minneapolis, Minnesota, or to such other address as either party
may designate in writing mailed to the other.
Section 5.4: This agreement shall terminate in the event of its
assignment by the Company, the term "assignment" for this purpose
having the same meaning as set forth in the Investment Companyt Act
of 1940, as amended.
IN WITNESS WHEREOF, the parties hereto have executed the foregoing
agreement on the day and year first above written.
IDS LIFE INSURANCE COMPANY
By /s/ R. W. Kling
Executive Vice President
IDS LIFE VARIABLE ANNUITY FUND A
By \s\ E. L. Milbrath
Executive Vice President
<PAGE>
PAGE 4
EXHIBIT A: INVESTMENT ADVISORY AGREEMENT
Agreement effective the 12th day of Jan, 1984, by and between IDS
Life Insurance Company (IDS Life) and IDS/American Express Inc.
(IDS), superseding the agreement between Investors Diversified
Services, Inc. and IDS Life, dated August 26, 1981.
Whereas IDS Life has heretofore established certain separate
accounts, and may in the future establish one or more additional
separate accounts, as authorized by Minnesota law; and
Whereas IDS has a staff of experienced investment personnel
and facilities for the kind of investment portfolio contemplated
for such separate account or accounts;
NOW THEREFORE it is mutually agreed:
(1) Separate Account or Accounts to Which Applicable. This
agreement shall only be effective as to any separate account in
respect of which:
(a) IDS Life has notified IDS in writing to include such separate
account under the terms of this agreement; and
(b) IDS Life has an existing legal duty to provide investment
management for such separate account; and
(c) To the extent required by the Investment Company Act of 1940,
this agreement has been approved by a vote of the persons
having an interest in such separate account or an exemptive
order from such requirement of approval has been obtained from
the Securities and Exchange Commission; and continuance of its
applicability is approved as required by the Investment
Company Act of 1940; and
(d) The applicability of this agreement has not been terminated as
provided in paragraph 8 hereof.
(2) Investment Advice. IDS will continuously keep under
observation the investment portfolio and investment objectives
of any separate account covered by the terms of this agreement
and will, with respect to each such separate account,
continuously furnish to IDS Life (1) assistance and advice in
investment planning, (2) recommendations as to particular
purchases and sales of securities, and (3) information as to
economic and market factors and other information relating to
the investment plans of and the particular investment held in
any such separate account.
(3) Information Furnished to IDS. IDS Life shall furnish such
information to IDS as to holdings, purchases, and sales of
securities under its management and investment portfolio
requirements as will reasonably enable IDS to furnish the
investment advice under this agreement.
(4) Furnishing Advice, Information and Notices. The advice,
information, reports, etc., furnished under this agreement to
IDS Life and any notice under this agreement shall be
furnished to the President of IDS Life or to the person or <PAGE>
PAGE 5
persons designated in writing by him or by a person to whom he
has delegated the authority to so designate. Any information
or notice provided to IDS under the terms of this agreement
shall be furnished to the President of IDS or to the person or
persons designated in writing by him or by a person to whom he
has delegated the authority to so designate.
(5) Purchase and Sale of Securities. IDS Life may, in its
discretion, direct purchase or sale orders to IDS which will
then place any such order with a broker or brokers or
negotiate such executions. All transactions will be executed
in a manner and in accordance with the procedures and
standards as set forth in, or as established in accordance
with, the investment management agreement between IDS Life and
such separate account. IDS Life shall furnish IDS with
information concerning such procedures and standards, and any
amendments thereto; and IDS will maintain records to assure
that such transactions have been executed in accordance
therewith. It is understood that IDS Securities Corporation,
a subsidiary of IDS and a member firm of the Pacific Stock
Exchange, may, subject to paragraph 6 of this agreement,
participate in brokerage commissions generated by any security
transactions under this agreement, and that other broker
dealer affiliates of IDS may be used to the extent consistent
with Section 15(f) of the Investment Company Act of 1940 and
other applicable provisions of the Federal securities laws.
(6) Compensation to IDS. The fee for the services provided by
this agreement will be determined as follows:
(a) An amount each valuation period of each separate account to
which this agreement is applicable equal to the equivalent,
for the valuation period of each such account, of .25% on an
annual basis of the net value of the assets of any such
separate account or accounts. The net value of the assets of
any such separate account shall be computed as of the close of
business on the last day of the last preceding valuation
period for each such separate account. The valuation period
of any separate account for this purpose shall be the same
period of time for which values of interest in such separate
account are redetermined.
(b) As soon as practicable after the last business day of each
month, the net profit, if any, of IDS Securities Corporation,
before income taxes payable to the United States and before
investment income, shall be determined in accordance with
generally accepted accounting principles. IDS will then
credit an amount equivalent to the portion of such net profit
attributable to transactions for each separate account of IDS
Life to which this agreement is applicable as a reduction of
the next fee payment due from IDS Life under subparagraph (a)
of this paragraph 6, subject to an adjustment in accordance
with audits of the books of IDS Securities Corporation made
periodically by independent certified public accountants. It
is understood that nothing in this subparagraph shall have the
effect of increasing the fee payment otherwise due were this
subparagraph (b) not in operation.<PAGE>
PAGE 6
(c) The foregoing fee shall be paid on a monthly basis in cash by
IDS Life to IDS within five (5) business days after the last
day of each month.
(7) Miscellaneous.
(a) IDS Life recognizes that IDS now renders and may continue to
render investment advice and other services to other persons
which may or may not have investment policies and investments
similar to those of separate accounts included herein and that
IDS manages its own investments and those of certain
subsidiaries. IDS shall be free to render such investment
advice and other services, and IDS Life hereby consents
thereto.
(b) It is understood and agreed that in furnishing the investment
advice and other services as herein provided, neither IDS, nor
any officer, director, or agent thereof shall be held liable
to IDS Life or separate accounts included herein or creditors
or Contract Holders for errors of judgment or for anything
except willful misfeasance, bad faith, or gross negligence in
the performance of its duties, or reckless disregard of its
obligations and duties under the terms of this agreement. It
is further understood and agreed that IDS may rely upon
information furnished to it reasonably believed to be accurate
and reliable and that, except as hereinabove provided, IDS
shall not be accountable for any loss suffered by IDS Life or
separate accounts included herein by the reason of the
latter's action or non-action on the basis of any advice or
recommendation of IDS, its officers, director or agents.
(8) Renewal and Termination
(a) As to any separate account which (1) is a registered
investment company under the Investment Company Act of 1940,
and (2) this agreement has become applicable as provided in
Section 1 above, this agreement, unless terminated pursuant to
Paragraph b,c, or d below, shall continue in effect from year
to year, provided its continued applicability is specifically
approved at least annually (i) by the Board of Directors of
said separate account or by a vote of the holders of a
majority of the outstanding votes of the separate account and
(ii) by vote of a majority of the Managers who are not parties
to this agreement or interested persons of any such party,
cast in person at a meeting called for the purpose of voting
on such approval. As used in this paragraph, the term
"interested person" shall have the same meaning as set forth
in the Investment Company Act of 1940, as amended.
(b) The applicability of this agreement to any separate account
which is a registered investment company within the meaning of
the Investment Company Act of 1940 may be terminated by sixty
days' written notice to either IDS or IDS Life.
(c) IDS or IDS Life may terminate this agreement or the
applicability of this agreement to any separate account by
giving sixty days written notice to the other party.
<PAGE>
PAGE 7
(d) This agreement shall terminate, as to any separate account
which is a registered investment company under the Investment
Company Act of 1940, in the event of its assignment, the term
"assignment" for this purpose having the same meaning set
forth in the investment Company Act of 1940, as amended.
IN WITNESS WHEREOF, the parties hereto have executed the foregoing
agreement on the day and year first above written.
IDS LIFE INSURANCE COMPANY
By \s\ R.W. Kling
Executive Vice President
IDS/AMERICAN EXPRESS INC.
By \s\ Frank L. Skillern, Jr.
Sr. Vice President - Law
<PAGE>
<PAGE>
PAGE 1
DISTRIBUTION AND SERVICES AGREEMENT
This agreement made the 12th day of January, 1984, by and
between IDS Life Insurance Company (IDS Life) and IDS Life Variable
Annuity Fund A (the Fund) supersedes and replaces the Distribution
and Services Agreement between IDS Life and the Fund executed
December 8, 1981.
The Fund which has been established pursuant to Minnesota
Statutes Section 61A.14, as amended, desires to engage IDS Life as
its principal underwriter and distributor and IDS Life agrees to
provide any and all sales and administrative services incident to
the sale and administration of all contracts on a variable basis
which the Fund is now or may be authorized to issue or sell and
which provide for values or benefits based on the investment
results of the Fund (Variable Contracts), in accordance with the
further terms and provisions of this agreement.
ARTICLE I: DISTRIBUTION
Section 1.1: IDS Life shall be the exclusive distributor of all
such Variable Contracts based upon the Fund which
are issued and outstanding during the period of this
agreement. During such period IDS Life agrees to
continue to offer contracts to new entrants to
existing non-qualified employer plans, as descrived
in the Fund's Registration No. 2-29081, unless IDS
Life is unable legally to make such offer for sale
or sales as a result of any federal, state, or
quasi-governmental law or regulation.
Section 1.2: IDS Life shall allocate and place into the Fund
portions of purchase payments received on Variable
Contracts promptly upon receipt of such payments,
pursuant to the provisions and requirements of such
Variable Contracts. IDS Life shall deduct a
distribution fee and an amount for any applicable
premium or similar tax on such purchase payment
before such allocation to the Fund.
ARTICLE II: SERVICES
Section 2.1: IDS Life shall take all steps necessary including,
but not limited to registrations, filing, licensing,
etc. with State and Federal authorities to permit
the offer or sale or continuance of the offer or
sale of Variable Contracts in such jurisdiction.
Section 2.2: IDS Life shall prepare and make available necessary
prospectuses, applications, Variable Contracts and
any other forms or materials required for the
distribution of Variable Contracts.
<PAGE>
PAGE 2
Section 2.3: IDS Life shall mail such notices as required by law
and by Variable Contracts and shall deliver the
Variable Contracts to appropriate Contract Holders.
Section 2.4: In addition to the Services specifically provided
for above, IDS Life shall provide and pay for all
services required for the operation of the Fund
(except brokerage fees and transfer taxes incurred
in investment transactions), including but not
limited to the following services:
Occupancy and office rental
Clerical and bookkeeping
Accounting services
Auditing services
Legal fees
Registration and filing fees
Stationery, supplies and printing
Salaries and compensation of directors of the
registrant
Reports to stockholders (Variable Contract
Holders)
Determination of offering and redemption prices
ARTICLE III: COMPENSATION
Section 3.1: IDS Life shall receive distribution and service fees
as provided in said Variable Contracts, in
consideration of the distribution and other services
performed in the sale and administration of Variable
Contract business.
ARTICLE IV: MISCELLANEOUS
Section 4.1: IDS Life may conduct any aspect of the business of
an insurance company, including the performance of
other distribution and service agreements as it may
enter into from time to time.
Section 4.2: This Agreement shall be binding upon the respective
successors of the parties hereto, and any person,
trust, association or corporation acquiring all or
substantially all of the assets and business of
either party.
Section 4.3: Neither IDS Life, nor any officer, director or agent
thereof shall be held liable to the Fund or its
creditors or Contract Holders for errors of judgment
or for anything except willful misfeasance, bad
faith, or gross negligence in the performance of its
duties, or reckless disregard of its obligations and
duties under the terms of this agreement.
<PAGE>
PAGE 3
Section 4.4: IDS Life shall do any and all things reasonably
necessary in connection with or incidental to the
carrying out of the purpose and provisions of this
agreement.
ARTICLE V: TERMINATION
Section 5.1: This agreement shall continue in effect from year to
year, subject to approval at least annually by the
Board of Managers of the Fund or until terminated as
hereinafter provided.
Section 5.2: This contract shall be automatically terminated in
the event of the assigning of this contract.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed.
IDS LIFE VARIABLE ANNUITY FUND A
by \s\ Earlon L. Milbrath
Treasurer
IDS LIFE INSURANCE COMPANY
by \s\ R. W. Kling
Executive Vice President
<PAGE>
<PAGE>
PAGE 1
CUSTODIAN AGREEMENT
THIS CUSTODIAN AGREEMENT dated July 12, 1990, between IDS Life
Variable Annuity Funds A and B (individually, the "Fund"),
segregated asset accounts of IDS Life Insurance Company, organized
under Minnesota law; and IDS Bank & Trust, a corporation organized
under the laws of the State of Minnesota with its principal place
of business at Minneapolis, Minnesota (hereinafter also called the
"Custodian").
WHEREAS, the Fund desires that its securities and cash be hereafter
held and administered by Custodian pursuant to the terms of this
Agreement.
NOW, THEREFORE, in consideration of the mutual agreements herein
made, the Fund and the Custodian agree as follows:
Section 1. Definitions
The word "securities" as used herein shall be construed to include,
without being limited to, shares, stocks, treasury stocks, notes,
bonds, debentures, evidences of indebtedness, options to buy or
sell stocks or stock indexes, certificates of interest or
participation in any profit-sharing agreements, collateral trust
certificates, preorganization certificates or subscriptions,
transferable shares, investment contracts, voting trust
certificates, certificates of deposit for a security, fractional or
undivided interests in oil, gas or other mineral rights, or any
certificates of interest or participation in, temporary or interim
certificates for, receipts for, guarantees of, or warrants or
rights to subscribe to or purchase any of the foregoing,
acceptances and other obligations and any evidence of any right or
interest in or to any cash, property or assets and any interest or
instrument commonly known as a security. In addition, for the
purpose of this Agreement, the word "securities" also shall include
other instruments in which the Fund may invest including currency
forward contracts and commodities such as interest rate or index
futures contracts, margin deposits on such contracts or options on
such contracts.
The words "custodian order" shall mean a request or direction,
including a computer printout, directed to the Custodian and signed
in the name of the Fund by any two individuals designated in the
current certified list referred to in Section 2.
The word "facsimile" shall mean an exact copy or likeness which is
electronically transmitted for instant reproduction.
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Section 2. Names, Titles and Signatures of Authorized Persons
The Fund will certify to the Custodian the names and signatures of
its present officers and other designated persons authorized on
behalf of the Fund to direct the Custodian by custodian order as
hereinbefore defined. The Fund agrees that whenever any change
occurs in this list it will file with the Custodian a copy of a
resolution certified by the Secretary or an Assistant Secretary of
the Fund as having been duly adopted by the Board of Managers of
the Fund designating those persons currently authorized on behalf
of the Fund to direct the Custodian by custodian order, as
hereinbefore defined, and upon such filing (to be accompanied by
the filing of specimen signatures of the designated persons) the
persons so designated in said resolution shall constitute the
current certified list. The Custodian is authorized to rely and
act upon the names and signatures of the individuals as they appear
in the most recent certified list from the Fund which as been
delivered to the Custodian as hereinabove provided.
Section 3. Use of Subcustodians
The Custodian may make arrangements, where appropriate, with other
banks having not less than two million dollars aggregate capital,
surplus and undivided profits for the custody of securities and
cash.
The Custodian also may enter into arrangements for the custody of
securities entrusted to its care through foreign branches of United
States banks; through foreign banks, banking institutions or trust
companies; through foreign subsidiaries of United States banks or
bank holding companies; or through foreign securities depositories
or clearing agencies (hereinafter also called, collectively, the
"Foreign Subcustodian") or indirectly through an agent, established
under the first paragraph of this section, if and to the extent
permitted by Section 17(f) of the Investment Company Act of 1940
and the rules promulgated by the Securities and Exchange Commission
thereunder, any order issued by the Securities and Exchange
Commission, or any "no-action" letter received from the staff of
the Securities and Exchange Commission. To the extent the existing
provisions of the Custodian Agreement are consistent with the
requirements of such Section, rules, order or no-action letter,
they shall apply to all such foreign custodianships. To the extent
such provisions are inconsistent with or additional requirements
are established by such Section, rules, order or no-action letter
will prevail and the parties will adhere to such requirements;
provided, however, in the absence of notification from the Fund of
any changes or additions to such requirements, the Custodian shall
have no duty or responsibility to inquire as to any such changes or
additions.
All Subcustodians of the Custodian (such Subcustodians,
collectively, the "Subcustodians"), including all Foreign Custodial
Agents, shall be subject to the instructions of the Custodian and
not to those of the Corporation and shall act solely as agent of
the Custodian.
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Section 4. Receipt and Disbursement of Money
(1) The Custodian shall open and maintain a separate account or
accounts in the name of the Fund or cause its agent to open and
maintain such account or accounts subject only to checks, drafts or
directives by the Custodian pursuant to the terms of this
Agreement. The Custodian or its agent shall hold in such account
or accounts, subject to the provisions hereof, all cash received by
it from or for the account of the Fund. The Custodian or its agent
shall make payments of cash to or for the account of the Fund from
such cash only:
(a) for the purchase of securities for the portfolio of the
Fund upon the receipt of such securities by the Custodian
or its agent;
(b) for the purchase or redemption of shares of capital stock
of the Fund;
(c) for the payment of interest, dividends, taxes, management
fees, or operating expenses (including, without
limitation thereto, fees for legal, accounting and
auditing services);
(d) for payment of distribution fees, commissions, or
redemption fees, if any;
(e) for payments in connection with the conversion, exchange
or surrender of securities owned or subscribed to by the
Fund held by or to be delivered to the Custodian;
(f) for payments in connection with the return of securities
loaned by the Fund upon receipt of such securities or the
reduction of collateral upon receipt of proper notice;
(g) for payments for other proper corporate purposes; or
(h) upon the termination of this Agreement.
Before making any such payment for the purposes permitted under the
terms of items (a), (b), (c), (d), (e), (f) or (g) of paragraph (1)
of this section, the Custodian shall receive and may rely upon a
custodian order directing such payment and stating that the payment
is for such a purpose permitted under these items (a), (b), (c),
(d), (e), (f) or (g) and that in respect to item (g), a copy of a
resolution of the Board of Managers of the Fund signed by an
officer of the Fund and certified by its Secretary or an Assistant
Secretary, specifying the amount of such payment, setting forth the
purpose to be a proper corporate purpose, and naming the person or
persons to whom such payment is made. Notwithstanding the above,
for the purposes permitted under items (a) or (f) of paragraph (1)
of this section, the Custodian may rely upon a facsimile order.
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(2) The Custodian is hereby appointed the attorney-in-fact of the
Fund to endorse and collect all checks, drafts or other orders for
the payment of money received by the Custodian for the account of
the Fund and drawn on or to the order of the Fund and to deposit
same to the account of the Fund pursuant to this Agreement.
Section 5. Receipt of Securities
Except as permitted by the second paragraph of this section, the
Custodian or its agent shall hold in a separate account or
accounts, and physically segregated at all times from those of any
other persons, firms or corporations, pursuant to the provisions
hereof, all securities received by it for the account of the Fund.
The Custodian shall record and maintain a record of all certificate
numbers. Securities so received shall be held in the name of the
Fund, in the name of an exclusive nominee duly appointed by the
Custodian or in bearer form, as appropriate.
Subject to such rules, regulations or guidelines as the Securities
and Exchange Commission may adopt, the Custodian may deposit all or
any part of the securities owned by the Fund in a securities
depository which includes any system for the central handling of
securities established by a national securities exchange or a
national securities association registered with the Securities and
Exchange Commission under the Securities Exchange Act of 1934, or
such other person as may be permitted by the Commission, pursuant
to which system all securities of any particular class or series of
any issuer deposited within the system are treated as fungible and
may be transferred or pledged by bookkeeping entry without physical
delivery of such securities.
All securities are to be held or disposed of by the Custodian for,
and subject at all times to the instructions of, the Fund pursuant
to the terms of this Agreement. The Custodian shall have no power
or authority to assign, hypothecate, pledge or otherwise dispose of
any such securities, except pursuant to the directive of the Fund
and only for the account of the Fund as set forth in Section 6 of
this Agreement
Section 6. Transfer Exchange, Delivery, etc. of Securities
The Custodian shall have sole power to release or deliver any
securities of the Fund held by it pursuant to this Agreement. The
Custodian agrees to transfer, exchange or deliver securities held
by it or its agent hereunder only:
(a) for sales of such securities for the account of the Fund,
upon receipt of payment therefor;
(b) when such securities are called, redeemed, retired or
otherwise become payable;
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(c) for examination upon the sale of any such securities in
accordance with "street delivery" custom which would
include delivery against interim receipts or other proper
delivery receipts;
(d) in exchange for or upon conversion into other securities
alone or other securities and cash whether pursuant to
any plan of merger, consolidation, reorganization,
recapitalization or readjustment, or otherwise;
(e) for the purpose of exchanging interim receipts or
temporary certificates for permanent certificates;
(f) upon conversion of such securities pursuant to their
terms into other securities;
(g) upon exercise of subscription, purchase or other similar
rights represented by such securities;
(h) for loans of such securities by the Fund upon receipt of
collateral; or
(i) for other proper corporate purposes.
As to any deliveries made by the Custodian pursuant to items (a),
(b), (c), (d), (e), (f), (g) and (h), securities or cash received
in exchange therefore shall be delivered to the Custodian, its
agent, or to a securities depository. Before making any such
transfer, exchange or delivery, the Custodian shall receive a
custodian order or a facsimile from the Fund requesting such
transfer, exchange or delivery and stating that it is for a purpose
permitted under Section 6 (whenever a facsimile is utilized, the
Fund also will deliver an original signed custodian order) and, in
respect to item (i), a copy of a resolution of the Board of
Managers of the Fund signed by an officer of the Fund and certified
by its Secretary of an Assistant Secretary, specifying the
securities, setting forth the purpose for which such payment,
transfer, exchange or delivery is to be made, declaring such
purpose to be a proper corporate purpose, and naming the person or
persons to whom such transfer, exchange or delivery of such
securities shall be made.
Section 7. Custodian's Acts Without Instructions
Unless and until the Custodian receives a contrary custodian order
from the Fund, the Custodian shall or shall cause its agent to:
(a) present for payment all coupons and other income items
held by the Custodian or its agent for the account of the
Fund which call for payment upon presentation and hold
all cash received upon such payment for the account of
the Fund;
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(b) present for payment all securities held by it or its
agent which mature or when called, redeemed, retired or
otherwise become payable;
(c) ascertain all stock dividends, rights and similar
securities to be issued with respect to any securities
held by the Custodian or its agent hereunder, and to
collect and hold for the account of the Fund all such
securities; and
(d) ascertain all interest and cash dividends to be paid to
security holders with respect to any securities held by
the Custodian or its agent, and to collect and hold such
interest and cash dividends for the account of the Fund.
(e) present for exchange securities converted pursuant to
their terms into other securities; and
(f) exchange interim receipts or temporary securities for
definitive securities; and
(g) execute in the name of the Corporation such ownership and
other certificates as may be required to obtain payments
in respect thereto, provided that the Corporation shall
have furnished to the Custodian or such agent any
information necessary in connection with such
certificates.
Section 8. Transfer Taxes
The Fund shall pay or reimburse the Custodian for any transfer
taxes payable upon transfers of securities made hereunder,
including transfers resulting from the termination of this
Agreement. The Custodian shall execute such certificates in
connection with securities delivered to it under this Agreement as
may be required, under any applicable law or regulation, to exempt
from taxation any transfers and/or deliveries of any such
securities which may be entitled to such exemption.
Section 9. Voting and Other Action
Neither the Custodian nor any nominee of the Custodian shall vote
any of the securities held hereunder by or for the account of the
Fund. The Custodian shall promptly deliver to the Fund all
notices, proxies and proxy soliciting materials with relation to
such securities, such proxies to be executed by the registered
holder of such securities (if registered otherwise than in the name
of the Fund), but without indicating the manner in which such
proxies are to be voted.
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Custodian shall transmit promptly to the Fund all written
information (including, without limitation, pendency of calls and
maturities of securities and expirations of rights in connection
therewith) received by the Custodian from issuers of the securities
being held for the Fund. With respect to tender or exchange
offers, the Custodian shall transmit promptly to the Fund all
written information received by the Custodian from issuers of the
securities whose tender or exchange is sought and from the party
(or his agents) making the tender or exchange offer.
Section 10. Custodian's Reports
The Custodian shall furnish the Fund as of the close of business
each day a statement showing all transactions and entries for the
account of the Fund. The books and records of the Custodian
pertaining to its actions as Custodian under this Agreement and
securities held hereunder by the Custodian shall be open to
inspection and audit by officers of the Fund, internal auditors
employed by the Fund's investment adviser, and independent auditors
employed by the Fund. The Custodian shall furnish the Fund in such
form as may reasonably be requested by the Fund a report, including
a list of the securities held by it in custody for the account(s)
of the Fund, identification of any subcustodian and identification
of such securities held by such subcustodian, as of the close of
business of the last business day of each month, which shall be
certified by a duly authorized officer of the Custodian. It is
further understood that additional reports may from time to time be
requested by the Fund. Should any report ever be filed with any
governmental authority pertaining to lost or stolen securities, the
Custodian will concurrently provide the Fund with a copy of that
report.
The Custodian also shall furnish such reports on its systems of
internal accounting control as the Fund may reasonably request from
time to time.
Section 11. Concerning Custodian
For its services hereunder the Custodian shall be paid such
compensation at such times as may from time to time be agreed on in
writing by the parties hereto in a Custodian Fee Agreement.
The Custodian shall not be liable for any action taken in good
faith upon any custodian order or facsimile herein described or
certified copy of any resolution of the Board of Managers of the
Fund, and may rely on the genuineness of any such document which it
may in good faith believe to have been validly executed.
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The Fund agrees to indemnify and hold harmless Custodian and its
nominee from all taxes, charges, expenses, assessments, claims and
liabilities (including counsel fees) incurred or assessed against
it or its nominee in connection with the performance of this
Agreement, except such as may arise from the Custodian's or its
nominee's own negligent action, negligent failure to act or willful
misconduct. The Custodian is authorized to charge any account of
the Fund for such items. In the event of any advance of cash for
any purpose made by the Custodian resulting from orders or
instructions of the Fund, or in the event that the Custodian or its
nominee shall incur or be assessed any taxes, charges, expenses,
assessments, claims or liabilities in connection with the
performance of this Agreement, except such as may arise from its or
its nominee's own negligent action, negligent failure to act or
willful misconduct, any property at any time held for the account
of the Fund shall be security therefor.
The Custodian shall maintain a standard of care equivalent to that
which would be required of a bailee for hire and shall not be
liable for any loss or damage to the Fund resulting from
participation in a securities depository unless such loss or damage
arises by reason of any negligence, misfeasance, or willful
misconduct of officers or employees of the Custodian, or from its
failure to enforce effectively such rights as it may have against
any securities depository or from use of an agent, unless such loss
or damage arises by reason of any negligence, misfeasance, or
willful misconduct of officers or employees of the Custodian, or
from its failure to enforce effectively such rights as it may have
against any agent.
Section 12, Termination and Amendment of Agreement
The Fund and the Custodian mutually may agree from time to time in
writing to amend, to add to, or to delete from any provision of
this Agreement.
The Custodian may terminate this Agreement by giving the Fund
ninety days' written notice of such termination by registered mail
addressed to the Fund at its principal place of business.
The Fund may terminate this Agreement at any time by written notice
thereof delivered, together with a copy of the resolution of the
Board of Managers authorizing such termination and certified by the
Secretary of the Fund, by registered mail to the Custodian.
Upon such termination of this Agreement, assets of the Fund held by
the Custodian shall be delivered by the Custodian to a successor
custodian, if one has been appointed by the Fund, upon receipt by
the Custodian of a copy of the resolution of the Board of Managers
of the Fund certified by the Secretary, showing appointment of the
successor custodian, and provided that such successor custodian is
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PAGE 9
a bank or trust company, organized under the laws of the United
States or of any State of the United States, having not less than
two million dollars aggregate capital, surplus and undivided
profits. Upon the termination of this Agreement as a part of the
transfer of assets, either to a successor custodian or otherwise,
the Custodian will deliver securities held by it hereunder, when so
authorized and directed by resolution of the Board of Directors of
the Fund, to a duly appointed agent of the successor custodian or
to the appropriate transfer agents for transfer of registration and
delivery as directed. Delivery of assets on termination of this
Agreement shall be effected in a reasonable, expeditious and
orderly manner; and in order to accomplish an orderly transition
from the Custodian to the successor custodian, the Custodian shall
continue to act as such under this Agreement as to assets in its
possession or control. Termination as to each security shall
become effective upon delivery to the successor custodian, its
agent, or to a transfer agent for a specific security for the
account of the successor custodian, and such delivery shall
constitute effective delivery by the Custodian to the successor
under this Agreement.
In addition to the means of termination hereinbefore authorized,
this Agreement may be terminated at any time by the vote of a
majority of the outstanding shares of the Fund and after written
notice of such action to the Custodian.
Section 13. General
Nothing expressed or mentioned in or to be implied from any
provision of this Agreement is intended to, or shall be construed
to give any person or corporation other than the parties hereto,
any legal or equitable right, remedy or claim under or in respect
of this Agreement, or any covenant, condition or provision herein
contained, this Agreement and all of the covenants, conditions and
provisions hereof being intended to be and being for the sole and
exclusive benefit of the parties hereto and their respective
successors and assigns.
This Agreement shall be governed by the laws of the State of
Minnesota.
IDS LIFE VARIABLE ANNUITY FUNDS A&B INC.
By /s/ James A. Mitchell
James A. Mitchell
President
IDS BANK & TRUST
By /s/ Mark Ellis
Mark Ellis
Vice President
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Consent of Independent Auditors
We consent to the use of our report dated February 3, 1994 on the
consolidated financial statements of IDS Life Insurance Company for
Individual and Employer Variable Annuity Contracts to be offered by
IDS Life Insurance Company, in Post-Effective Amendment No. 56 to
the Registration Statement (Form N-1 No. 2-29081) being filed under
the Securities Act of 1933 and the Investment Company Act of 1940.
We also consent to the incorporation by reference therein of our
report dated January 24, 1994 with respect to the financial
statements of IDS Life Variable Annuity Fund A included in the 1993
Annual Report to IDS Life Variable Annuity Fund A contract holders.
We also consent to the incorporation by reference therein of our
report with respect to the financial statement schedules of IDS
Life Insurance Company for the years ended December 31, 1993, 1992,
and 1991 included in the Annual Report (Form 10-K) for 1993 filed
with the Securities and Exchange Commission.
Ernst & Young
Minneapolis, Minnesota
April 27, 1994
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IDS LIFE INSURANCE COMPANY
DIRECTORS POWER OF ATTORNEY
City of Minneapolis
State of Minnesota
Each of the undersigned, as directors of the below listed unit
investment trusts that previously have filed registration
statements and amendments thereto pursuant to the requirements of
the Securities Act of 1933 and the Investment Company Act of 1940
with the Securities and Exchange Commission:
<TABLE><CAPTION>
1933 Act 1940 Act
Reg. Number Reg. Number
<S> <C> <C>
IDS Life Accounts F, IZ, JZ, G, H and N
IDS Life Flexible Annuity 33-4173 811-3217
IDS Life Accounts F, IZ, JZ, G, H and N
IDS Life Variable and Combination
Retirement Annuities 2-73114 811-3217
IDS Life Accounts F, IZ, JZ, G, H and N
IDS Life Employee Benefit Annuity 33-52518 811-3217
IDS Life Accounts F, IZ, JZ, G, H and N
IDS Life Group Variable Annuity Contract 33-47302 811-3217
IDS Life Insurance Company
IDS Life Group Variable Annuity Contract
(Fixed Account) 33-48701 N/A
IDS Life Insurance Company
IDS Life Market Value Annuity 33-28976 N/A
IDS Life Insurance Company
IDS Life Preferred Choice Annuity 33-50968 N/A
IDS Life Variable Life Separate Account
Flexible Premium Variable Life Insurance Policy 33-11165 811-4298
IDS Life Variable Life Separate Account
IDS Life Single Premium Variable Life 2-97637 811-4298
IDS Life Variable Account for Smith Barney Shearson
LifeVest Single Premium Variable Life 33-5210 811-4652
IDS Life Account SBS
IDS Life Symphony Annuity 33-40779 812-7731
IDS Life Account RE
IDS Life Real Estate Variable Annuity 33-13375 N/A
IDS Life Variable Annuity Fund A 2-29081 811-1653
IDS Life Variable Annuity Fund B 2-47430 811-1674
</TABLE>
hereby constitutes and appoints William A. Stoltzmann, Mary Ellyn
Minenko and Colleen Curran or either one of them, as her or his
attorney-in-fact and agent, to sign for her or him in her or his
name, place and stead any and all filings, applications (including
applications for exemptive relief), periodic reports, registration
statements (with all exhibits and other documents required or
desirable in connection therewith) other documents, and amendments
thereto and to file such filings, applications, periodic reports,
registration statements other documents, and amendments thereto
with the Securities and Exchange Commission, and any necessary
states, and grants to any or all of them the full power and
authority to do and perform each and every act required or
necessary in connection therewith.<PAGE>
PAGE 2
Dated the 31st day of March, 1994.
/s/ Louis C. Fornetti /s/ Janis E. Miller
Louis C. Fornetti Janis E. Miller
/s/ David R. Hubers /s/ James A. Mitchell
David R. Hubers James A. Mitchell
/s/ Richard W. Kling /s/ Barry J. Murphy
Richard W. Kling Barry J. Murphy
/s/ Paul F. Kolkman /s/ Stuart A. Sedlacek
Paul F. Kolkman Stuart A. Sedlacek
/s/ Peter A. Lefferts /s/ Melinda S. Urion
Peter A. Lefferts Melinda S. Urion
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