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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 1 (File No. 33-52567) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 2 (File No. 811-3500) X
IDS LIFE OF NEW YORK ACCOUNT 4
IDS LIFE OF NEW YORK ACCOUNT 5
IDS LIFE OF NEW YORK ACCOUNT 6
IDS LIFE OF NEW YORK ACCOUNT 9
IDS LIFE OF NEW YORK ACCOUNT 10
IDS LIFE OF NEW YORK ACCOUNT 11
___________________________________________________________________
(Exact Name of Registrant)
IDS Life Insurance Company of New York
(Name of Depositor)
20 Madison Avenue Extension, Albany, NY 12203
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-3678
Mary Ellyn Minenko, IDS Tower 10, Minneapolis, MN 55440-0010
(Name and Address of Agent for Service)
It is proposed that this filing will become effective: May 1, 1995
or as soon as practicable thereafter.
immediately upon filing pursuant to paragraph (b) of Rule 485
on (date) pursuant to paragraph (b) of Rule 485
60 days after filing pursuant to paragraph (a)(i) of Rule 485
X on May 1, 1995 pursuant to paragraph (a)(i) of Rule 485
____ 75 days after filing pursuant to paragraph (a)(ii) of Rule 485
____ on (date) pursuant to paragraph (a)(ii) of Rule 485
If appropriate, check the following box:
____ this post-effective amendment designates a new effective date
for previously filed post-effective amendment.
The Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to Section
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 28, 1995.
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CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
Cross reference sheet showing location in the prospectus and Statement of Additional Information
of the information called for by the items enumerated in Part A and B of Form N-4.
Negative answers omitted from prospectus and Statement of Additional Information are so indicated.
PART A PART B
Section in
Section Statement of
Item No. in Prospectus Item No. Additional Information
<C> <C> <C> <C>
1 Cover page 15 Cover page
2 Key terms 16 Table of contents
3(a) Expense summary 17(a) NA
(b) The Employee Benefit (b) NA
Annuity in brief (c) About Life of New York*
4(a) Condensed financial 18(a) NA
information (b) NA
(b) Performance information (c) Independent auditors
(c) Financial statements (d) NA
(e) NA
5(a) Cover page; About IDS (f) NA
Life of New York
(b) The variable accounts 19(a) Distribution of the contracts*;
(c) The funds About IDS Life of New York*
(d) Cover page; The funds (b) Certificate charges*
(e) Voting rights
(f) NA 20(a) Principal underwriter
(g) NA (b) Principal underwriter
(c) Principal underwriter
6(a) Certificate charges (d) NA
(b) Certificate charges
(c) Certificate charges 21(a) Performance information
(d) Distribution of the (b) Performance information
certificates
(e) The funds 22 Calculating annuity payouts
(f) NA
23(a) NA
7(a) Buying the contract and (b) NA
certificate; Benefits
in case of death; The
annuity payout period
(b) The variable accounts;
Making the most of your
annuity
(c) The funds; Certificate charges
(d) Cover page
8(a) The annuity payout period
(b) Buying the contract and
certificate
(c) The annuity payout period
(d) The annuity payout period
(e) The annuity payout period
(f) The annuity payout period
9(a) Benefits in case of death
(b) Benefits in case of death
10(a) Buying the contract and
certificate; Valuing your
investment
(b) Valuing your investment
(c) Buying the contract and
certificate; Valuing your
investment
(d) About Life of New York
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11(a) Surrendering a certificate
(b) NA
(c) Surrendering a certificate
(d) Buying the contract and
certificate
(e) The Employee Benefit Annuity
in brief
12(a) Taxes
(b) Key terms
(c) NA
13 NA
14 Table of contents of the
Statement of Additional Information
*Designates section in the prospectus, which is hereby incorporated by reference in this Statement
of Additional Information.
</TABLE>
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IDS Life of New York Employee Benefit Annuity
Prospectus
May 1, 1995
The Employee Benefit Annuity is a flexible premium group deferred
fixed/variable annuity contract (the contract) offered by IDS Life
Insurance Company of New York (IDS Life of New York) a subsidiary
of IDS Life Insurance Company (IDS Life), which is a subsidiary of
American Express Financial Corporation. Participation in the
contract will be accounted for separately by the issuance of a
certificate showing the participant's interest under the contract.
The contract is a group deferred annuity in which purchase payments
are accumulated on a fixed and/or variable basis and retirement
benefits are paid to the participant on a fixed or variable basis
or a combination of both. It is available for an employer-
sponsored plan and a salary-reduction plan that meets the
requirements of Section 403(b) of the Code (the plan).
IDS Life of New York Accounts 4, 5, 6, 9, 10 and 11
Sold by: IDS Life Insurance Company of New York, 20 Madison Avenue
Extension, Albany, NY 12203, Telephone: (518) 869-8613.
THIS PROSPECTUS CONTAINS THE INFORMATION ABOUT THE VARIABLE
ACCOUNTS THAT YOU SHOULD KNOW BEFORE INVESTING. Refer to "The
variable accounts" in this prospectus.
THE PROSPECTUS IS ACCOMPANIED OR PRECEDED BY THE RETIREMENT ANNUITY
MUTUAL FUND PROSPECTUS FOR IDS LIFE AGGRESSIVE GROWTH FUND, IDS
LIFE INTERNATIONAL EQUITY FUND, IDS LIFE CAPITAL RESOURCE FUND, IDS
LIFE MANAGED FUND, INC., IDS LIFE SPECIAL INCOME FUND, INC. AND IDS
LIFE MONEYSHARE FUND, INC. PLEASE KEEP THESE PROSPECTUSES FOR
FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION, OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
IDS LIFE OF NEW YORK IS NOT A BANK AND THE SECURITIES IT OFFERS ARE
NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY ANY
BANK NOR ARE THEY INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
A Statement of Additional Information (SAI) dated May 1, 1995
(incorporated by reference into this prospectus) has been filed
with the Securities and Exchange Commission (SEC), and is available
without charge by contacting IDS Life of New York at the telephone
number above or by completing and sending the order form on the
last page of this prospectus. The table of contents of the SAI is
on the last page of this prospectus.
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Table of Contents
Key terms.......................................................
The Employee Benefit Annuity in brief...........................
Expense summary.................................................
Condensed financial information.................................
Financial statements............................................
Performance information.........................................
The variable accounts...........................................
The funds.......................................................
Aggressive Growth Fund.....................................
International Equity Fund..................................
Capital Resource Fund......................................
Managed Fund...............................................
Special Income Fund........................................
Moneyshare Fund............................................
The fixed account...............................................
Buying the contract and certificate.............................
Setting the retirement date................................
Beneficiary................................................
How to make purchase payments..............................
Certificate charges.............................................
Administrative charge......................................
Mortality and expense risk fee.............................
Surrender charge...........................................
Valuing your investment.........................................
Number of units............................................
Accumulation unit value....................................
Net investment factor......................................
Factors that affect variable account
accumulation units.........................................
Making the most of your annuity.................................
Automated dollar-cost averaging............................
Transferring money between accounts........................
Transfer policies..........................................
How to request a transfer or a surrender...................
Surrendering a certificate......................................
Surrender policies.........................................
Receiving payment when a participant requests
a surrender................................................
TSA special surrender provisions................................
Changing ownership..............................................
Benefits in case of death.......................................
The annuity payout period.......................................
Annuity payout plans.......................................
Death after annuity payouts begin..........................
Transfers between accounts after annuity payouts begin.....
Taxes...........................................................
Voting rights...................................................
Substitution....................................................
Distribution of the certificates................................
About IDS Life of New York......................................
Regular and special reports.....................................
Table of contents of the Statement of Additional Information....
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Key terms
These terms can help you understand details about your annuity.
Annuity - A contract purchased from an insurance company that
offers tax-deferred growth of the investment until earnings are
withdrawn, and that can be tailored to meet the specific needs of
the individual during retirement.
Accumulation unit - A measure of the value of each variable account
before annuity payouts begin.
Annuitant - The participant on whose life or life expectancy the
annuity payouts are based.
Annuity payouts - An amount paid at regular intervals under one of
several plans available to a participant and/or any other payee.
This amount may be paid on a variable or fixed basis or a
combination of both.
Annuity unit - A measure of the value of each variable account used
to calculate the annuity payouts a participant receives.
Beneficiary - The person designated to receive annuity benefits in
case of a participant's death. Each participant may name a
beneficiary in accordance with the applicable provisions of any
plan and the Code.
Certificate - The document delivered to each participant that
evidences the participant's coverage under the contract.
Certificate value - The total value of the certificate before any
applicable surrender charge and any administrative charge have been
deducted.
Certificate year - A period of 12 months, starting on the effective
date of the certificate and on each anniversary of the effective
date.
Close of business - When the New York Stock Exchange (NYSE) closes,
normally 3 p.m. Central time.
Code - Internal Revenue Code of 1986, as amended.
Contract owner (owner) - The person or party entitled to ownership
rights stated in the contract and in whose name the contract is
issued.
Fixed account - An account to which a participant may allocate
purchase payments. Amounts allocated to this account earn interest
at rates that are declared periodically by IDS Life of New York.
IDS Life of New York - In this prospectus, "we," "us," "our," and
"IDS Life of New York" refer to IDS Life Insurance Company of New
York.
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Mutual funds (funds) - Six IDS Life Retirement Annuity mutual
funds, each with a different investment objective. (See "The
funds.") Purchase payments can be allocated into variable accounts
investing in shares of any or all of these funds.
Participant - The person named in the certificate who is entitled
to exercise all rights and privileges of ownership under the
certificate, except as reserved by the owner. In this prospectus,
"you" and "your" refer to the participant.
Purchase payments - Payments made to IDS Life of New York under the
contract by or on behalf of a participant.
Retirement date - The date when annuity payouts are scheduled to
begin. This date is first established when enrollment in the
certificates takes place, subject to the terms of the plan. It can
be changed in the future.
Surrender charge - A deferred sales charge that may be applied if a
participant surrenders the certificate before the retirement date.
Surrender value - The amount a participant is entitled to receive
if the certificate is surrendered. It is the certificate value
minus any applicable surrender charge and administrative charge.
Valuation date - Any normal business day, Monday through Friday,
that the NYSE is open. The value of each variable account is
calculated at the close of business on each valuation date.
Variable accounts - Six separate accounts to which a participant
may allocate purchase payments; each invests in shares of one
mutual fund. (See "The variable accounts.") The value of your
investment in each variable account changes with the performance of
the particular fund.
The Employee Benefit Annuity in brief
Purpose: The Employee Benefit Annuity is designed to allow you to
build up funds for retirement. This is done by making one or more
investments (purchase payments) that may earn returns that increase
the value of your certificate. Beginning at a specified future
date (the retirement date), the contract and related certificate
provide you with lifetime or other forms of annuity payouts.
Ten-day free look: You may return a certificate to the financial
advisor or our Minneapolis office within 10 days after it is
delivered and receive a full refund of the certificate value. No
charges will be deducted.
Accounts: You may allocate purchase payments among any or all of:
o six variable accounts, each of which invests in mutual funds
with a particular investment objective. The value of each
variable account varies with the performance of the particular
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fund. We cannot guarantee that the value at the retirement date
will equal or exceed the total of purchase payments allocated to
the variable accounts. (p.)
o one fixed account, which earns interest at rates that are
adjusted periodically by IDS Life of New York. (p.)
Buying the contract and certificate: A financial advisor will help
the owner complete and submit an application for a contract and
help you complete and submit an enrollment form for the
certificate. Applications and enrollment forms are subject to
acceptance at our Albany office. The maximum amount of purchase
payments is determined by any restrictions imposed by the plan and
the Code.
o Minimum purchase payment - ($1,000) unless you pay in
installments under a group billing arrangement such as a
payroll deduction.
o Minimum installment payment - $25 monthly or $300 annually
o Maximum first-year payment(s) - $50,000 to $1,000,000 depending
on your age.
o Maximum payment for each subsequent year - $50,000. (p.)
Transfers: Subject to certain restrictions you may redistribute
money among accounts without charge at any time until annuity
payouts begin, and once per year among the variable accounts
thereafter. You may establish automated transfers among the fixed
and variable account(s). (p.)
Surrenders: You may surrender all or part of your certificate
value at any time before the retirement date subject to certain
restrictions imposed by the Code and the plan. Surrenders may be
subject to charges and tax penalties and may have other tax
consequences. (p.)
Changing ownership: Restrictions apply concerning change of
ownership of rights under a contract or certificate. (p.)
Payment in case of death: If the participant dies before annuity
payouts begin, we will pay the beneficiary an amount at least equal
to the certificate value. (p.)
Annuity payouts: The certificate value of your investment can be
applied to an annuity payout plan that begins on the retirement
date. You may choose from a variety of plans to make sure that
payouts continue as long as they are needed. Payouts may be made
on a fixed or variable basis, or both. Total monthly payouts
include amounts from each variable account and the fixed account.
(p.)
Taxes: Generally your certificate value grows tax deferred until
you surrender it or begin to receive payouts. (Under certain
circumstances, IRS penalty taxes may apply.) Even if you direct
payouts to someone else, you will still be taxed on the
distribution. (p.)
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Charges: Your certificate is subject to an annual administrative
charge of $30, a 1% mortality and expense risk charge and an 8%
declining surrender charge on purchase payments up to eleven
contract years old. (p.)
Expense summary
The purpose of this summary is to help the owner and participant
understand the various costs and expenses associated with the
contract and related certificates.
There is no sales charge when purchasing the contract or
certificate. All direct and indirect costs for the variable
accounts and underlying mutual funds are shown below. Some
expenses may vary as explained under "Certificate charges."
Direct charges. These are deducted directly from the certificate
value. They include:
Surrender charge: A surrender charge applies to surrenders within
the first 11 certificate years. The surrender charge is 8% of the
amount surrendered in the first through fourth certificate years,
and then declines by 1% per year from 7% in the fifth certificate
year to 1% in the 11th certificate year. The surrender charge is
further limited so that it will never exceed 8.5% of aggregate
purchase payments made to the certificate.
Annual administrative charge: $30.
Indirect charges. The variable account pays these expenses out of
its assets. They are reflected in the variable account's daily
accumulation unit value and are not charged directly to the
account. They include:
Mortality and expense risk fee: 1% per year, deducted from the
variable account as a percentage of the average daily net assets of
the underlying fund.
Operating expenses of underlying mutual funds: management fees and
other expenses deducted as a percentage of average net assets as
follows: *
<TABLE>
<CAPTION>
Aggressive International Capital Special
Growth Equity Resource Managed Income Moneyshare
<S> <C> <C> <C> <C> <C> <C>
Management fees .64% .89% .64% .64% .64% .54%
Other expenses .04% .16% .04% .04% .04% .02%
Total** .68% 1.05% .68% .68% .68% .56%
</TABLE>
* Premium taxes imposed by some state and local governments are not
reflected in this table.
**Annualized operating expenses of underlying mutual funds at Dec.
31, 1994.
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Example*
As a participant, you would pay the following expenses on a $1,000
investment, assuming 5% annual return and surrender at the end of
each time period:
<TABLE>
<CAPTION>
Aggressive International Capital Special
Growth Equity Resource Managed Income Moneyshare
<S> <C> <C> <C> <C> <C> <C>
1 year
3 years
5 years
10 years
You would pay the following expenses on the same investment assuming no surrender or selection of an
annuity payout plan at the end of each period:
1 year
3 years
5 years
10 years
</TABLE>
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
* In this example, the $30 annual administrative charge is
approximated as a .290% charge based on our average certificate
size.
Condensed financial information
(unaudited)
The following tables give per-unit information about the financial
history of each variable account.
Financial statements
The SAI dated May 1, 1995, contains:
o complete audited financial statements of the variable
accounts including:
- statements of net assets as of Dec. 31, 1994;
- statements of operations for the year ended Dec. 31, 1994;
and
- statements of changes in net assets for the years ended
Dec. 31, 1994 and Dec. 31, 1993.
o complete audited financial statements for IDS Life including:
- consolidated balance sheets as of Dec. 31, 1994 and Dec.
31, 1993; and
- related consolidated statements of income and cash flows
for each of three years in the period ended Dec. 31, 1994.
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Performance information
Performance information for the variable accounts may appear from
time to time in advertisements or sales literature. In all cases,
such information reflects the performance of a hypothetical
investment in a particular account during a particular time period.
Calculations are performed as follows:
Simple yield - Account 6 (investing in Moneyshare Fund): Income
over a given seven-day period (not counting any change in the
capital value of the investment) is annualized (multiplied by 52)
by assuming that the same income is received for 52 weeks. This
annual income is then stated as an annual percentage return on the
investment.
Compound yield - Account 6: Calculated like simple yield, except
that, when annualized, the income is assumed to be reinvested.
Compounding of reinvested returns increases the yield as compared
to a simple yield.
Yield - Account 5 (investing in Special Income): Net investment
income (income less expenses) per accumulation unit during a given
30-day period is divided by the value of the unit on the last day
of the period. The result is converted to an annual percentage.
Average annual total return: Expressed as an average annual
compounded rate of return of a hypothetical investment over a
period of one, five and 10 years (or up to the life of the account
if it is less than 10 years old). This figure reflects deduction
of all applicable charges, including the administrative charge,
mortality and expense risk fee and surrender charge, assuming a
surrender at the end of the illustrated period. Optional total
return quotations may be made that do not reflect a surrender
charge deduction (assuming no surrender).
Aggregate total return: Represents the cumulative change in the
value of an investment for a specified period of time (reflecting
change in an account's accumulation unit value). The calculation
assumes reinvestment of investment earnings. Aggregate total
return may be shown by means of schedules, charts or graphs.
Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of
the fund in which the account invests, and the market conditions
during the given time period. Such information is not intended to
indicate future performance. Because advertised yields and total
return figures include all charges attributable to the
certificates, which has the effect of decreasing advertised
performance, account performance should not be compared to that of
mutual funds that sell their shares directly to the public. (See
the SAI for a further description of methods used to determine
yield and total return for the accounts.)
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If you would like additional information about actual performance,
contact your financial advisor.
The variable accounts
Purchase payments can be allocated to any or all of the variable
accounts that invest in shares of the following funds:
IDS Life of
New York Account Established
Aggressive Growth Fund 11 Oct. 8, 1991
International Equity Fund 10 Oct. 8, 1991
Capital Resource Fund 4 Nov. 12, 1981
Managed Fund 9 Feb. 12, 1986
Special Income Fund 5 Nov. 12, 1981
Moneyshare Fund 6 Nov. 12, 1981
Each variable account meets the definition of a separate account
under federal securities laws. Income, capital gains and capital
losses of each account are credited or charged to that account
alone. No variable account will be charged with liabilities of any
other account or of our general business. Each variable account's
net assets are held in relation to the contracts described in the
prospectus as well as other variable annuity contracts that we
issue that are not described in this prospectus. All obligations
arising under the contracts are general obligations of IDS Life of
New York.
All variable accounts were established under New York law and are
registered together as a single unit investment trust under the
Investment Company Act of 1940 (the 1940 Act). This registration
does not involve any supervision of our management or investment
practices and policies by the SEC.
The funds
Aggressive Growth Fund
Objective: capital appreciation. Invests primarily in common stock
of small- and medium-size companies. The fund also may invest in
warrants or debt securities or in large well-established companies
when the portfolio manager believes such investments offer the best
opportunity for capital appreciation.
International Equity Fund
Objective: capital appreciation. Invests primarily in common stock
of foreign issuers and foreign securities convertible into common
stock. The fund also may invest in certain international bonds if
the portfolio manager believes they have a greater potential for
capital appreciation than equities.
Capital Resource Fund
Objective: capital appreciation. Invests primarily in U.S. common
stocks listed on national securities exchanges and other securities
convertible into common stock, diversified over many different
companies in a variety of industries.
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Managed Fund
Objective: maximum total investment return. Invests primarily in
U.S. common stocks listed on national securities exchanges,
securities convertible into common stock, warrants, fixed income
securities (primarily high-quality corporate bonds) and
money-market instruments. The fund invests in many different
companies in a variety of industries.
Special Income Fund
Objective: to provide a high level of current income while
conserving the value of the investment for the longest time period.
Invests primarily in high-quality, lower-risk corporate bonds
issued by many different companies in a variety of industries, and
in government bonds.
Moneyshare Fund
Objective: maximum current income consistent with liquidity and
conservation of capital. Invests in high-quality money market
securities with remaining maturities of 13 months or less. The
fund also will maintain a dollar-weighted average portfolio
maturity not exceeding 90 days. The fund attempts to maintain a
constant net asset value of $1 per share.
The Internal Revenue Service (IRS) has issued final regulations
relating to the diversification requirements under Section 817(h)
of the Code. Each mutual fund intends to comply with these
requirements.
The U.S. Treasury and the IRS have indicated they may provide
additional guidance concerning how many variable accounts may be
offered and how many exchanges among variable accounts may be
allowed before the participant is considered to have investment
control and thus is currently taxed on income earned within
variable account assets. We do not know at this time what the
additional guidance will be or when action will be taken. We
reserve the right to modify the contract/certificate, as necessary,
to ensure that the participant will not be subject to current
taxation as the owner of the variable account assets.
We intend to comply with all federal tax laws to ensure that the
contract/certificate continues to qualify as an annuity for federal
income tax purposes. We reserve the right to modify the
contract/certificate as necessary to comply with any new tax laws.
IDS Life is the investment adviser for each of the funds. IDS Life
cannot guarantee that the funds will meet their investment
objectives. Please read the Retirement Annuity Mutual Fund
prospectus for complete information on investment risks,
deductions, expenses and other facts you should know before
investing. It is available by contacting IDS Life of New York at
the address or telephone number on the front of this publication,
or from your financial advisor.
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PAGE 14
The fixed account
Purchase payments can also be allocated to the fixed account. The
cash value of the fixed account increases as interest is credited
to the account. Purchase payments and transfers to the fixed
account become part of the general account of IDS Life of New York,
the company's main portfolio of investments. Interest is credited
daily and compounded annually. We may change the interest rates
from time to time.
Because of exemptive and exclusionary provisions, interests in the
fixed account have not been registered under the Securities Act of
1933 (1933 Act), nor is the fixed account registered as an
investment company under the 1940 Act. Accordingly, neither the
fixed account nor any interests in it are generally subject to the
provisions of the 1933 or 1940 Acts, and we have been advised that
the staff of the SEC has not reviewed the disclosures in this
prospectus that relate to the fixed account. Disclosures regarding
the fixed account, however, may be subject to certain generally
applicable provisions of the federal securities laws relating to
the accuracy and completeness of statements made in prospectuses.
Buying the contract and certificate
A financial advisor will help the owner prepare and submit an
application. A financial advisor will also help each participant
prepare and submit an enrollment form. These forms will be sent to
our Albany office. Unless otherwise provided in the contract, the
owner has all rights under the contract. Your interest under the
contract, as evidenced by your certificate, is subject to the terms
of the owner's contract and the plan.
When you enroll in the certificate, you can select:
o the account(s) in which you want to invest;
o the date you want to start receiving annuity payouts (the
retirement date); and
o a beneficiary.
The owner selects the frequency with which it will make purchase
payments.
If the application and enrollment forms are complete, we will
process them within two days after we receive them. If the
application is accepted, we will send the owner a contract. If
your enrollment form is accepted, we will send you a certificate.
If we cannot accept an application or enrollment form within five
days, we will decline it and return any payment. We will credit
additional purchase payments to the account(s) at the next close of
business.
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PAGE 15
Setting the retirement date
Annuity payouts will be scheduled to begin on the retirement date.
This date can be aligned with actual retirement from a job, or it
can be a different future date, depending on your needs and goals
and on certain restrictions. You can also change the date,
provided you send us written instructions at least 30 days before
annuity payouts begin.
To avoid IRS penalty taxes, the retirement date generally must be:
o on or after you reach age 59 1/2; and
o by April 1 of the year following the calendar year when you
reach age 70 1/2.
If you are taking the minimum 403(b) plan distributions as required
by the Code from another tax-qualified investment, or in the form
of partial surrenders under the certificate, retirement payments
can start as late as your 85th birthday or the 10th contract
anniversary.
Beneficiary
If death benefits become payable before the retirement date, your
named beneficiary will receive all or part of the certificate
value. If there is no named beneficiary, then your estate will be
the beneficiary. (See "Payment in case of death" for more about
beneficiaries.)
Minimum purchase payments
$25 monthly
Installments must total at least $300 per year*
*If no purchase payments have been made on a participant's behalf
for 36 months, and previous payments total $600 or less, we have
the right to pay the participant the total value of the certificate
in a lump sum.
Minimum lump sum purchase payment
Initial payment: $1,000
Minimum additional purchase payment(s): $50
Maximum first - year payment(s):
This maximum is based the participant's age on the effective date
of the certificate.
Up to age 75 $1 million
76 to 85 $500,000
86 to 90 $50,000
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PAGE 16
Maximum payment for each subsequent year: $50,000**
**These limits apply in total to all IDS Life of New York annuities
you own. We reserve the right to increase maximum limits or reduce
age limits. The plan's limits on annual contribution also apply.
How to make purchase payments
By scheduled payment plan: A financial advisor can help the owner
set up an automatic salary reduction arrangement.
Certificate charges
Administrative charge
This fee is for establishing and maintaining records for each
certificate under the contract. We deduct $30 from the certificate
value at the end of each certificate year.
If a participant surrenders a certificate, the annual charge will
be deducted at the time of surrender. The annual charge cannot be
increased and does not apply after annuity payouts begin.
Mortality and expense risk fee
This fee is to cover the mortality risk and expense risk and is
applied daily to the variable accounts and reflected in the unit
values of the accounts. Annually it totals 1% of their average
daily net assets. Approximately two-thirds of this amount is for
our assumption of mortality risk, and one-third is for our
assumption of expense risk. This fee does not apply to the fixed
account.
Mortality risk arises because of our guarantee to pay a death
benefit and our guarantee to make annuity payouts according to the
terms of the contract and certificates, no matter how long a
specific annuitant lives and no matter how long the entire group of
IDS Life of New York annuitants live. If, as a group, IDS Life of
New York annuitants outlive the life expectancy we have assumed in
our actuarial tables, then we must take money from our general
assets to meet our obligations. If, as a group, IDS Life of New
York annuitants do not live as long as expected, we could profit
from the mortality risk fee.
Expense risk arises because the administrative charge cannot be
increased and may not cover our expenses. Any deficit would have
to be made up from our general assets. We could profit from the
expense risk fee if the annual administrative charge is more than
sufficient to meet expenses.
We do not plan to profit from the administrative charge. However,
we do hope to profit from the mortality and expense risk fee. We
may use any profits realized from this fee for any proper corporate
purpose, including, among others, payment of distribution (selling)
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PAGE 17
expenses. We do not expect that the surrender charge, discussed in
the following paragraphs, will cover sales and distribution
expenses.
Surrender charge
If part or all of a certificate is surrendered within the first 11
certificate years, the following surrender charge applies:
Surrender Charge as
Percent of
Certificate Year Amount Surrendered
1 8%
2 8
3 8
4 8
5 7
6 6
7 5
8 4
9 3
10 2
11 1
12 and later 0
The surrender charge is further limited so that it will never
exceed 8.5% of aggregate purchase payments made to the certificate.
IDS Life of New York reserves the right to reduce or eliminate the
surrender charge.
In the case of a partial surrender, the surrender charge is
deducted from the certificate value remaining after you are paid
the partial surrender amount requested. For example, if you
requested a partial surrender net check amount of $1,000 and the
surrender charge rate were 5%, you would receive the $1,000
requested and the surrender charge amount would be $52.63 for a
total withdrawal from the certificate of $1,052.63.
No surrender charge: There is no surrender charge on amounts
surrendered:
o after the 11th certificate year;
o due to a participant's retirement under the plan on or after age
55;
o due to the death of the participant; or
o upon settlement of the certificate under an annuity payout plan.
Possible group reductions: In some cases lower sales and
administrative expenses may be incurred due to the size of the
group, the average contribution and the use of group enrollment
procedures. In such cases, we may be able to reduce or eliminate
the administrative and surrender charges. However, we expect this
to occur infrequently.
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PAGE 18
Valuing your investment
Here is how your accounts are valued:
Fixed account: The amounts allocated to the fixed account are
valued directly in dollars and equal the sum of your purchase
payments, plus interest earned, less any amounts surrendered or
transferred.
Variable accounts: Amounts allocated to the variable accounts are
converted into accumulation units. Each time you make a purchase
payment or transfer amounts into one of the variable accounts, a
certain number of accumulation units are credited to your
certificate for that account. Conversely, each time you take a
partial surrender, transfer amounts out of a variable account, or
are assessed an administrative charge, a certain number of
accumulation units are subtracted from your certificate.
The accumulation units are the true measure of investment value in
each account during the accumulation period. They are related to,
but not the same as, the net asset value of the underlying fund.
The dollar value of each accumulation unit can rise or fall daily
depending on the performance of the underlying mutual fund and on
certain fund expenses. Here is how unit values are calculated:
Number of units
To calculate the number of accumulation units for a particular
account, we divide the investment by the current accumulation unit
value.
Accumulation unit value
The current accumulation unit value for each variable account
equals the last value times the account's current net investment
factor.
Net investment factor
o Determined each business day by adding the underlying mutual
fund's current net asset value per share, plus per share amount
of any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the accumulation unit value may increase or decrease.
The investor bears this investment risk in a variable account.
Factors that affect variable account accumulation units
Accumulation units may change in two ways; in number and in value.
Here are the factors that influence those changes:
The number of accumulation units you own may fluctuate due to:
o additional purchase payments allocated to the variable
account(s);
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PAGE 19
o transfers into or out of the variable account(s);
o partial surrenders;
o surrender charges; and/or
o administrative charges.
Accumulation unit values may fluctuate due to:
o changes in underlying mutual fund(s) net asset value;
o dividends distributed to the variable account(s);
o capital gains or losses of underlying mutual funds;
o mutual fund operating expenses; and/or
o mortality and expense risk fees.
Making the most of your certificate
Automated dollar-cost averaging
You can use automated transfers to take advantage of dollar-cost
averaging (investing a fixed amount at regular intervals). For
example, you might have a set amount transferred monthly from a
relatively conservative variable account to a more aggressive one,
or to several others.
This systematic approach can help you benefit from fluctuations in
accumulation unit values caused by fluctuations in the market
value(s) of the underlying mutual fund(s). Since you invest the
same amount each period, you automatically acquire more units when
the market value falls, fewer units when it rises. The potential
effect is to lower the average cost per unit. For specific
features contact your financial advisor.
How dollar-cost averaging works
Amount Accumulation Number of units
Month invested unit value purchased
Jan $100 $20 5.00
Feb 100 16 6.25
Mar 100 9 11.11
Apr 100 5 20.00
May 100 7 14.29
June 100 10 10.00
July 100 15 6.67
Aug 100 20 5.00
Sept 100 17 5.88
Oct 100 12 8.33
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more units
when the per unit market price is low
(arrow in table pointing to August) and fewer units when the per
unit market price is high.
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PAGE 20
You have paid an average price of only $10.81 per unit over the 10
months, while the average market price actually was $13.10.
Dollar-cost averaging does not guarantee that any variable account
will gain in value, nor will it protect against a decline in value
if market prices fall. However, if you can continue to invest
regularly throughout changing market conditions, it can be an
effective strategy to help meet your long term goals.
Transferring money between accounts
You may transfer money from one account, including the fixed
account, to another before the annuity payouts begin. If we
receive your request before the close of business, we will process
it that day. Requests received after the close of business will be
processed the next business day. There is no charge for transfers.
Before making a transfer, you should consider the risks involved in
switching investments.
We may suspend or modify transfer privileges at any time. Certain
restrictions apply to transfers involving the fixed account. In
addition, any restriction imposed by the plan will apply. (For
information on transfers after annuity payouts begin, see "The
annuity payout period.")
Transfer policies
o Subject to any restrictions imposed by the plan, you may
transfer certificate values between the variable accounts, or
from the variable account(s) to the fixed account at any time.
However, if a transfer has been made from the fixed account to
the variable account(s), you may not make a transfer from any
variable account back to the fixed account until the next
eligible transfer period as defined in the plan, if any, or
otherwise until the next certificate anniversary.
o You may transfer certificate values from the fixed account to
the variable account(s) once per certificate year, (except for
automated transfers, which can be set up for transfer periods of
your choosing subject to certain minimums.)
o No transfers may be made to or from the fixed account once
annuity payouts begin.
How to request a transfer or a surrender
1 By letter
Send your name, account number, Social Security Number or Taxpayer
Identification Number and signed request for a transfer or
surrender to:
Regular mail:
IDS Life Insurance Company of New York
Box 1544
Albany, NY 12205
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PAGE 21
Express mail:
IDS Life Insurance Company of New York
20 Madison Avenue Extension
Albany, NY 12203
Minimum amount
Mail transfers: $250 or entire account balance
Mail surrenders: $250 or entire account balance
Maximum amount
Mail transfers: None (up to the certificate value)
Mail surrenders: None (up to the certificate value)
2 By automated transfers
Your financial advisor can help you set up automated transfers
among your accounts.
You can start or stop this service by written request or other
method acceptable to IDS Life of New York after the service has
been in effect for a period of 12 consecutive months. You must
allow 30 days for IDS Life of New York to change any instructions
that are currently in place.
o Automated transfers from the fixed to variable account(s) may
not exceed an amount that, if continued, would deplete the fixed
account within 12 months.
o Automated transfers are subject to all of the contract
provisions and terms, including transfer of certificate values
between accounts.
Minimum amount
Automated transfers: $50
Maximum amount
Automated transfers: None (except for automated transfers
from the fixed account)
Surrendering a certificate
Subject to certain restrictions imposed by the Code and any
restrictions imposed by the plan, you may surrender all or part of
your certificate at any time before annuity payouts begin by
sending a written request or calling us. For total surrenders we
will compute the value of the certificate at the close of business
after we receive the request. We may ask you to return the
certificate. You may have to pay surrender charges (see "Surrender
charge") and IRS taxes and penalties (see "Taxes"). No surrenders
may be made after annuity payouts begin.
Surrender policies
If you have a balance in more than one account and request a
partial surrender, we will withdraw money from all of your accounts
in the same proportion as your value in each account correlates to
the total certificate value, unless requested otherwise.
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PAGE 22
Receiving payment when a participant requests a surrender
By regular or express mail:
o Payable to participant.
o Mailed to address of record.
By Wire:
o Request that payment be wired to your bank;
o Bank account must be in the same ownership as your contract;
o Pre-authorization required. For instructions, contact your
financial advisor.
Payment normally will be sent within seven days after receiving the
request. However, we may postpone the payment if:
-the surrender amount includes a purchase payment check that
has not cleared;
-the NYSE is closed, except for normal holiday and weekend
closings;
-trading on the NYSE is restricted, according to SEC rules;
-an emergency, as defined by SEC rules, makes it impractical
to sell securities or value the net assets of the accounts;
or
-the SEC permits us to delay payment for the protection of
security holders.
TSA-special surrender provisions
The Code imposes certain restrictions on a participant's right to
receive early distributions attributable to salary reduction
contributions from a Tax Sheltered Annuity (TSA):
o Distributions attributable to salary reduction contributions
made after Dec. 31, 1988, plus the earnings on them, or to
transfers or rollovers of such amounts from other contracts, may
be made from the TSA only if:
-the participant has attained age 59-1/2;
-the participant has become disabled as defined in the Code;
-the participant has separated from the service of the
employer who purchased the contract; or
-the distribution is made to the participant's beneficiary
because of death.
o If you should encounter a financial hardship (within the meaning
of the Code), you may receive a distribution of all certificate
values attributable to salary reduction contributions made after
Dec. 31, 1988, but not the earnings on them.
o Even though a distribution may be permitted under the above
rules, it still may be subject to IRS taxes and penalties. (See
"Taxes.")
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PAGE 23
o The above restrictions on the right to receive a distribution do
not affect the availability of the amount transferred or rolled
over to the certificate as of Dec. 31, 1988. The restrictions
do not apply to transfers or exchanges of certificate values
within the annuity, or to another registered variable annuity
contract or investment vehicle availablethrough the employer.
o For certain types of contributions under a TSA contract to be
excluded from taxable income, the employer must comply with
certain nondiscrimination requirements.
Changing ownership
The contract and related certificates cannot be sold, assigned,
transferred, discounted or pledged as collateral for a loan or as
security for the performance of an obligation or for any other
purpose to any person other than IDS Life of New York. Your vested
rights under the certificate are nonforfeitable.
Benefits in case of death
If you die before annuity payouts begin, we will pay your
beneficiary as follows:
If death occurs before your 75th birthday, the beneficiary receives
the greater of:
o the certificate value; or
o purchase payments made to the certificate, minus any surrenders.
If death occurs on or after your 75th birthday, the beneficiary
receives the certificate value.
If your spouse is sole beneficiary and you die before the
retirement date, your spouse may keep the certificate in force. To
do this your spouse must, within 60 days after we receive proof of
death, give us written instructions to keep the certificate in
force. If you die before reaching age 70 1/2, your spouse may keep
the certificate in force until the date on which you would have
reached age 70 1/2.
Payments: We will pay the beneficiary in a single sum unless you
have given us other written instructions, or the beneficiary may
receive payouts under any annuity payout plan available under this
contract if:
o the beneficiary asks us in writing within 60 days after we
receive proof of death;
o payouts begin no later than one year after death; and
o the payout period does not extend beyond the beneficiary's life
or life expectancy.
When paying the beneficiary, we will determine the certificate's
value at the next close of business after our death claim
requirements are fulfilled. Interest, if any, will be paid from
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PAGE 24
the date of death at a rate no less than required by law. We will
mail payment to the beneficiary within seven days after our death
claim requirements are fulfilled. (See "Taxes.")
The annuity payout period
As the participant, you have the right to decide how and to whom
annuity payouts will be made starting at the retirement date. You
may select one of the annuity payout plans outlined below, or we
will mutually agree on other payout arrangements. The amount
available for payouts under the plan you select is the certificate
value on the retirement date. No surrender charges are deducted
under the payout plans listed below.
The contract and related certificates allow you to determine
whether payouts are to be made on a fixed or variable basis, or a
combination of fixed and variable. Amounts of fixed and variable
payouts depend on:
o the annuity payout plan you select;
o your age;
o the annuity table in the contract and related certificates;
o the amounts allocated to the account(s) at settlement on the
retirement date.
In addition, for variable payouts only, amounts depend on:
o the investment performance of the account(s) selected.
These payouts will vary from month to month because the performance
of the underlying mutual funds will fluctuate. (In the case of
fixed annuities, payouts remain the same from month to month.)
Annuity payout plans
You may choose any one of these annuity payout plans by giving us
written instructions at least 30 days before certificate values are
to be used to purchase the payout plan.
o Plan A - Life annuity - no refund: Monthly payouts are made
until the annuitant's death. Payouts end with the last payout
before the annuitant's death; no further payouts will be made.
This means that if the annuitant dies after only one monthly payout
has been made, no more payouts will be made.
o Plan B - Life annuity with five, 10 or 15 years certain: Monthly
payouts are made for a guaranteed payout period of five, 10 or 15
years that the annuitant elects. This election will determine the
length of the payout period to the beneficiary if the annuitant
should die before the elected period has expired. The guaranteed
payout period is calculated from the retirement date. If the
annuitant outlives the elected guaranteed payout period, payouts
will continue until the annuitant's death.
o Plan C - Life annuity - installment refund: Monthly payouts are
made until the annuitant's death, with our guarantee that payouts
will continue for some period of time. Payouts will be made for at
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PAGE 25
least the number of months determined by dividing the amount
applied under this option by the first monthly payout, whether or
not the annuitant is living.
o Plan D - Joint and last survivor life annuity - no refund:
Monthly payouts are made to the annuitant and a joint annuitant
while both are living. If either annuitant dies, monthly payouts
continue at the full amount until the death of the surviving
annuitant. Payouts end with the death of the second annuitant.
o Plan E - Payouts for a specified period (available as a fixed
payout only): Monthly payouts are made for a specific payout
period of 10 to 30 years chosen by the annuitant. Payouts will be
made only for the number of years specified whether the annuitant
is living or not. Depending on the time period selected, it is
foreseeable that an annuitant can outlive the payout period
selected. In addition, a 10% IRS penalty tax could apply under
this payout plan. (See "Taxes".)
Restrictions on payout options: Because the certificate was
purchased under the plan, you must select a payout plan that
provides for payouts:
o over the life of the annuitant;
o over the joint lives of the annuitant and a designated
beneficiary;
o for a period not exceeding the life expectancy of the
annuitant; or
o for a period not exceeding the joint life expectancies
of the annuitant and a designated beneficiary.
If we do not receive instructions: You must give us written
instructions for the annuity payouts at least 30 days before your
retirement date. If you do not, we will make payouts under Plan B,
with 120 monthly payouts guaranteed, unless this option is contrary
to applicable provisions of the plan or the Code.
If monthly payouts would be less than $20: We will calculate the
amount of monthly payouts at the time the certificate value is used
to purchase a payout plan. If the calculations show that monthly
payouts would be less than $20, we have the right to pay the
certificate value to the participant in a lump sum.
Death after annuity payouts begin
If the annuitant dies after annuity payouts begin, any amount
payable to the beneficiary will be as provided in the annuity
payout plan in effect.
Transfers between accounts after annuity payouts begin
After the annuity payouts begin, as the annuitant, you may transfer
the value of the annuity from one variable account to another once
each year. You must send us written instructions to do this. We
will make the transfer at the next close of business after we
receive your instructions.
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PAGE 26
Taxes
Generally, under current law, any increase in your certificate
value is taxable when you receive a payout or surrender except to
the extent that contributions were made with after-tax dollars.
(See detailed discussion below.) Any portion of the annuity
payouts and any surrenders requested that represent ordinary income
are normally taxable. You will receive a 1099 tax information form
for any year in which a taxable distribution was made.
Annuity payouts: The entire payout generally will be includable as
ordinary income and subject to tax. If you or your employer
invested in the certificate with pre-tax dollars, such amounts are
not considered to be part of your investment in the certificate and
will be taxed when paid to you.
Surrenders: Generally, if you surrender part or all of the
certificate before annuity payouts begin, the surrender payment
will be taxed. You also may have to pay a 10% IRS penalty for
surrenders before reaching age 59 1/2. Other penalties may apply
if you surrender the certificate before the plan specifies that you
can receive payouts.
Death benefits to beneficiaries: The death benefit under an
annuity is not tax exempt. Any amount received by the beneficiary
that represents previously deferred earnings within the
certificate, is taxable as ordinary income to the beneficiary in
the year(s) he or she receives the payments.
Penalties: If you receive amounts from the certificate before
reaching age 59 1/2, you may have to pay a 10% IRS penalty on the
amount includable in your ordinary income. However, this penalty
will not apply to any amount received by you or your beneficiary:
o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal
periodic payments, made at least annually, over your life or
life expectancy (or joint lives or life expectancies of you and
your designated beneficiary); or
o after you separate from service in the year you attain age 55.
Other penalties or exceptions may apply if you surrender your
certificate before your plan specifies that payments can be made.
Mandatory withholding: If you receive directly all or part of the
certificate value, mandatory 20% income tax withholding generally
will be imposed at the time the payment is made. Any withholding
that is done represents a prepayment of your tax due for the year
and you would take credit for such amounts on the annual tax return
you file. This mandatory withholding will not be imposed if:
o instead of receiving the distribution check, you elect to have
the distribution rolled over directly to an IRA or another
eligible plan;
<PAGE>
PAGE 27
o the payment is one in a series of substantially equal periodic
payments, made at least annually, over your life or life
expectancy (or the joint lives or life expectancies of you and
your designated beneficiary) or over a specified period of 10
years or more; or
o the payment is a minimum distribution required under the Code.
Payments made to a surviving spouse instead of being directly
rolled over to an IRA may also be subject to mandatory 20% income
tax withholding.
Elective withholding: If the distribution is not subject to
mandatory withholding as described above, you can elect not to have
any withholding occur. To do this you must provide us with a valid
Social Security Number or Taxpayer Identification Number.
If you do not make this election and if the payout is part of an
annuity payout plan, the amount of withholding generally is
computed using payroll tables. You can provide us with a statement
of how many exemptions to use in calculating the withholding. If
the distribution is any other type of payment (such as a partial or
full surrender), withholding is computed using 10% of the taxable
portion.
Some states also impose withholding requirements similar to the
federal withholding described above. If this should be the case,
any payments from which federal withholding is deducted may also
have state witholding deducted. The withholding requirements may
differ if payment is being made to a non-U.S. citizen or if the
payment is being delivered outside the United States.
Important: Our discussion of federal tax laws is based upon our
understanding of these laws as they are currently interpreted.
Federal tax laws or current interpretations of them may change.
For this reason and because tax consequences are complex and highly
individual and cannot always be anticipated, you should consult a
tax adviser if you have any questions about taxation of the
contract and/or related certificates.
Tax Qualification
The contract and your certificate of participation thereunder is
intended to qualify as an annuity contract for Federal income tax
purposes. To that end, the provisions of this contract and your
certificate are to be interpreted to ensure or maintain such tax
qualification, notwithstanding any other provisions to the
contrary. We reserve the right to amend this contract and/or
related certificates to reflect any clarifications that may be
needed or are appropriate to maintain such qualification or to
conform this contract to any applicable changes in the tax
qualification requirements. We will send you a copy of any such
amendment.
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PAGE 28
Voting rights
As an owner or participant with investments in the variable
account(s) you may vote on important mutual fund policies until
annuity payouts begin. Once they begin, the person receiving them
has voting rights. We will vote fund shares according to the
instructions of the person with voting rights.
Before annuity payouts begin, the number of votes is determined by
applying the percentage interest in each variable account to the
total number of votes allowed to the account.
After annuity payouts begin, the number of votes is equal to:
o the reserve held in each account for the contract or
certificate, divided by
o the net asset value of one share of the applicable underlying
mutual fund.
As we make annuity payouts, the reserve for the annuity decreases;
therefore, the number of votes also will decrease.
We calculate votes separately for each account not more than 60
days before a shareholders' meeting. Notice of these meetings,
proxy materials and a statement of the number of votes to which the
voter is entitled, will be sent.
We will vote shares for which we have not received instructions in
the same proportion as the votes for which we have received
instructions. We also will vote the shares for which we have
voting rights in the same proportion as the votes for which we have
received instructions.
Substitution
Shares of any of the underlying funds may not always be available
for purchase by the variable accounts, or we may decide that
further investment in any such fund's shares is no longer
appropriate in view of the purposes of the variable account. In
either event, shares of another registered open-end management
investment company may be substituted both for fund shares already
purchased by the variable account and for purchases to be made in
the future. In the event of any substitution pursuant to this
provision, we may make appropriate endorsement to the contract and
certificates to reflect the substitution.
We reserve the right to split or combine the value of accumulation
units. In effecting such change of unit values, strict equity will
be preserved and no change will have a material effect on the
benefits under the certificates or on any other provisions of the
contract and related certificates.
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PAGE 29
Distribution of the certificates
American Express Financial Advisors, Inc., a registered
broker/dealer and an affiliate of IDS Life of New York is the sole
distributor of the certificates. IDS Life of New York pays total
commissions of up to 7.0% of the total purchase payments received
on the certificates. A portion of this total commission is paid to
district and division sales managers of the selling representative.
About IDS Life of New York
The Employee Benefit Annuity is issued by IDS Life of New York, a
wholly owned subsidiary of IDS Life, which is a wholly owned
subsidiary of American Express Financial Corporation, which itself
is a wholly owned subsidiary of the American Express Company.
American Express Company is a financial services company
principally engaged through subsidiaries (in addition to American
Express Financial Corporation) in travel related services,
investment services and international banking services.
IDS Life of New York is a stock life insurance company organized in
1972 under the laws of the State of New York and located at 20
Madison Avenue Extension, Albany, NY. IDS Life of New York is
licensed in New York and North Dakota and conducts a conventional
life insurance business in the state of New York.
American Express Financial Advisors, Inc. offers mutual funds,
investment certificates and a broad range of financial management
services. IDS Life of New York offers insurance and annuities.
American Express Financial Services, Inc. serves individuals and
businesses through its nationwide network of more than ___ offices
and more than ____ financial advisors.
Other subsidiaries provide investment management and related
services for pension, profit-sharing, employee savings and
endowment funds of businesses and institutions.
Regular and special reports
Services
To help you track and evaluate the performance of your annuity, we
provide:
Quarterly statements showing the value of your investment.
Annual reports containing required information on the annuity and
its underlying investments.
A personalized annuity progress report detailing the cumulative
return since the certificate was purchased and the average annual
rate of return on the investments. This report, which is unique in
the industry, is available upon request from your financial
advisor.
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PAGE 30
Table of contents of the Statement of Additional Information
Performance information............................
Calculating annuity payouts........................
Rating agencies....................................
Principal underwriter..............................
Independent auditors...............................
Morality and expense risk charge...................
Prospectus.........................................
Financial statements -
IDS Life of New York Accounts
4, 5, 6, 9, 10 and 11........................
IDS Life Insurance Company of New York.......
___________________________________________________________________
Please check the appropriate box to receive a copy of the Statement
of Additional Information for:
_____ IDS Life of New York Employee Benefit Annuity
_____ IDS Life Retirement Annuity Mutual Funds
Please return this request to:
IDS Life of New York Annuity Service
IDS Life Insurance Company of New York
P.O. Box 5144
Albany, NY 12205
Your name _______________________________________________________
Address _________________________________________________________
City ______________________ State ______________ Zip ___________
<PAGE>
PAGE 31
STATEMENT OF ADDITIONAL INFORMATION
for
EMPLOYEE BENEFIT ANNUITY
IDS LIFE OF NEW YORK ACCOUNTS 4, 5, 6, 9, 10 AND 11
May 1, 1995
IDS Life of New York Accounts 4, 5, 6, 9, 10 and 11 are separate
accounts established and maintained by IDS Life Insurance Company
of New York (IDS Life of New York).
This Statement of Additional Information, dated May 1, 1995, is not
a prospectus. It should be read together with the accounts'
prospectus, dated May 1, 1995, which may be obtained from your
financial advisor, or by writing or calling IDS Life of New York
Annuity Service at the address or telephone number below.
IDS Life of New York Annuity Service
20 Madison Avenue Extension
Albany, NY 12203
(518) 869-8613
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PAGE 32
TABLE OF CONTENTS
Performance Information.......................................p.
Calculating Annuity Payouts...................................p.
Rating Agencies...............................................p.
Principal Underwriter.........................................p.
Independent Auditors..........................................p.
Mortality and Expense Risk Charge.............................p.
Prospectus....................................................p.
Financial Statements
- IDS Life of New York Accounts 4, 5, 6, 9, 10
and 11............................................p.
- IDS Life Insurance Company of New York............p.
<PAGE>
PAGE 33
PERFORMANCE INFORMATION
Calculation of yield for Account 6
IDS Life of New York Account 6, which invests in IDS Life
Moneyshare Fund, Inc., calculates an annualized simple yield and
compound yield based on a seven-day period.
The simple yield is calculated by determining the net change in the
value of a hypothetical account having the balance of one
accumulation unit at the beginning of the seven-day period. (The
net change does not include capital change, but does include a pro
rata share of the annual contract charges, including the annual
contract administrative charge and the mortality and expense risk
fee.) The net change in the account value is divided by the value
of the account at the beginning of the period to obtain the return
for the period. That return is then multiplied by 365/7 to obtain
an annualized figure. The value of the hypothetical account
includes the amount of any declared dividends, the value of any
shares purchased with any dividend paid during the period and any
dividends declared for such shares. The variable account's
(account) yield does not include any realized or unrealized gains
or losses, nor does it include the effect of any applicable
surrender charge.
The account calculates its compound yield according to the
following formula:
365/7
Compound Yield = [(return for seven-day period +1) ] - 1
On Dec. 31, 1994, the account's annualized yield was 4.23% percent
and its compound yield was 4.32% percent.
The rate of return, or yield, on the account's accumulation unit
may fluctuate daily and does not provide a basis for determining
future yields. Investors must consider, when comparing an
investment in Account 6 with fixed annuities, that fixed annuities
often provide an agreed-to or guaranteed fixed yield for a stated
period of time, whereas the account's yield fluctuates. In
comparing the yield of Account 6 to a money market fund, you should
consider the different services that the annuity provides.
Calculation of yield for Account 5
IDS Life of New York Account 5 invests in IDS Life Special Income
Fund, Inc. Quotations of yield will be based on all investment
income earned during a particular 30-day period, less expenses
accrued during the period (net investment income) and will be
computed by dividing net investment income per accumulation unit by
the value of an accumulation unit on the last day of the period,
according to the following formula:
YIELD = 2[(a-b + 1)6 - 1]
cd
<PAGE>
PAGE 34
where: a = dividends and investment income earned during the
period.
b = expenses accrued for the period (net of
reimbursements).
c = the average daily number of accumulation units
outstanding during the period that were entitled to
receive dividends.
d = the maximum offering price per accumulation unit on
the last day of the period.
Yield on the account is earned from the increase in the net asset
value of shares of the fund in which the account invests and from
dividends declared and paid by the fund, which are automatically
invested in shares of the fund.
On Dec. 31, 1994, the account's annualized yield was ____%.
Calculation of average annual total return
Quotations of average annual total return for an account will be
expressed in terms of the average annual compounded rate of return
of a hypothetical investment in the annuity contract over a period
of one, five and 10 years (or, if less, up to the life of the
Account), calculated according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000.
T = average annual total return.
n = number of years.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
Account total return figures reflect the deduction of the contract
administrative charge and mortality and expense risk fee.
Performance figures will be shown with and may be shown without the
deduction of a surrender charge. The Securities and Exchange
Commission requires that an assumption be made that the contract
owner surrenders the entire contract at the end of the one, five
and ten year periods (or, if less, up to the life of the account)
for which performance is required to be calculated.
Aggregate total return
Aggregate total return represents the cumulative change in the
value of an investment for a specified period of time (reflecting
change in an account's accumulation unit value) and is computed by
the following formula:
ERV - P
P
<PAGE>
PAGE 35
where: P = a hypothetical initial payment of $1,000.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five, or
ten year (or other) period at the end of the one,
five, or ten year (or other) period (or fractional
portion thereof).
The following performance figures are calculated on the basis of
historical performance of the funds.
Average Annual Total Return Period Ended: Dec. 31, 1994
<TABLE>
<CAPTION>
Average Annual Total Return with Surrender
Since
Account investing in: 1 Year 3 Year 5 Year 10 Year Inception
<S> <C> <C> <C> <C> <C>
IDS LIFE
Aggressive Growth Fund (1/92)*
Capital Resource Fund (10/81)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
Average Annual Total Return without Surrender
Since
Account Investing in: 1 Year 3 Year 5 Year 10 Year Inception
IDS Life
Aggressive Growth Fund (1/92)
Capital Resource Fund (10/81)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
Aggregate Total Return Period Ended Dec. 31, 1994
Aggregate Total Return
Since
Account Investing in: 1 Year 3 Year 5 Year 10 Year Inception
IDS Life
Aggressive Growth Fund (1/92)*
Capital Resource Fund (10/81)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
*inception dates of the funds are shown in parentheses.
</TABLE>
Performance of the accounts may be quoted or compared to rankings,
yields, or returns as published or prepared by independent rating
or statistical services or publishers or publications such as The
Bank Rate Monitor National Index, Barron's, Business Week,
Donoghue's Money Market Fund Report, Financial Services Week,
Financial Times, Financial World, Forbes, Fortune, Global Investor,
Institutional Investor, Investor's Daily, Kiplinger's Personal
Finance, Lipper Analytical Services, Money, Mutual Fund Forecaster,
Newsweek, The New York Times, Personal Investor, Stanger Report,
Sylvia Porter's Personal Finance, USA Today, U.S. News and World
Report, The Wall Street Journal and Wiesenberger Investment
Companies Service.
<PAGE>
PAGE 36
CALCULATING ANNUITY PAYOUTS
The Variable Account
The following calculations are done separately for each of the
variable accounts. The separate monthly payouts, added together,
make up your total variable annuity payout.
Initial Payout: To compute your first monthly payment, we:
o determine the dollar value of your certificate as of the
valuation date seven days before the retirement date and then
deduct any applicable premium tax.
o apply the result to the annuity table contained in the
certificate or another table at least as favorable. The annuity
table shows the amount of the first monthly payment for each $1,000
of value which depends on factors built into the table, as
described below.
Annuity Units: The value of your account is then converted to
annuity units. To compute the number credited to you, we divide
the first monthly payment by the annuity unit value (see below) on
the valuation date on (or next day preceding) the seventh calendar
day before the retirement date. The number of units in your
account is fixed. The value of the units fluctuate with the
performance of the underlying mutual fund.
Subsequent Payouts: To compute later payouts, we multiply:
o the annuity unit value on the valuation date on or immediately
preceding the seventh calendar day before the payout is due; by
o the fixed number of annuity units credited to you.
Annuity Table: The table shows the amount of the first monthly
payment for each $1,000 of certificate value according to the age
of the annuitant. (Where required by law, we will use a unisex
table of settlement rates.) The table assumes that the certificate
value is invested at the beginning of the annuity payout period and
earns a 5% rate of return, which is reinvested and helps to support
future payouts.
Annuity Unit Values: This value was originally set at $1 for each
variable account. To calculate later values we multiply the last
annuity value by the product of:
o the net investment factor; and
o the neutralizing factor. The purpose of the neutralizing factor
is to offset the effect of the assumed investment rate built into
the annuity table. With an assumed investment rate of 3.5%, the
neutralizing factor is 0.999906 for a one day valuation period.
Net Investment Factor:
o Determined each business day by adding the underlying mutual
fund's current net asset value per share plus per share amount of
any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
<PAGE>
PAGE 37
Because the net asset value of the underlying mutual fund may
fluctuate, the net investment factor may be greater or less than
one, and the accumulation unit value may increase or decrease. You
bear this investment risk in a variable account.
The Fixed Account
Your fixed annuity payout amounts are guaranteed. Once calculated,
your payout will remain the same and never change. To calculate
your annuity payouts we:
o take the value of your fixed account at the retirement date or
the date you have selected to begin receiving your annuity payouts;
then
o using an annuity table we apply the value according to the
annuity payout plan you select; and
o the annuity payout table we use will be the one in effect at the
time you choose to begin your annuity payouts. The table will be
equal to or greater than the table in your certificate.
RATING AGENCIES
The following chart reflects the ratings given to IDS Life of New
York by independent rating agencies. These agencies evaluate the
financial soundness and claims-paying ability of insurance
companies based on a number of different factors. This information
does not relate to the management or performance of the variable
accounts of the annuity. This information relates only to the
fixed account and reflects IDS Life of New York's ability to make
annuity payouts and to pay death benefits and other distributions
from the annuity.
Rating agency Rating
A.M. Best A+
(Superior)
Duff & Phelps AAA
Moody's Aa2
PRINCIPAL UNDERWRITER
The principal underwriter for the accounts is American Express
Financial Advisors Inc. which offers the variable annuities on a
continuous basis.
Surrender charges received by IDS Life of New York for 1994, 1993,
and 1992, aggregated $269,275, $151,536, and $136,471,
respectively. Commissions paid by IDS Life of New York for 1994,
1993, and 1992, aggregated $________________, $1,244,668, and
$631,691, respectively. The surrender charges were applied toward
payment of commissions.
<PAGE>
PAGE 38
INDEPENDENT AUDITORS
Ernst & Young, 1400 Pillsbury Center, Minneapolis, MN 55402, are
the independent auditors of the financial statements of IDS Life of
New York and the Separate Accounts.
MORTALITY AND EXPENSE RISK CHARGE
IDS Life of New York has represented to the SEC that:
IDS Life of New York has reviewed publicly available information
regarding products of other companies. Based upon this review, IDS
Life of New York has concluded that the mortality and expense risk
charge is within the range of charges determined by industry
practice. IDS Life of New York will maintain at its principal
office, and make available on request of the SEC or its staff, a
memorandum setting forth in detail the variable products analyzed
and the methodology, and results of, its comparative review.
IDS Life of New York has concluded that there is a reasonable
likelihood that the proposed distribution financing arrangements
made with respect to the annuities will benefit the variable
account and investors in the annuities. The basis for such
conclusion is set forth in a memorandum which will be made
available to the SEC or its staff on request.
PROSPECTUS
The prospectus dated May 1, 1995, is hereby incorporated in this
Statement of Additional Information by reference.
<PAGE>
PAGE 39
PART C.
Item 24. Financial Statements and Exhibits
(a) To be filed by amendment.
(b) Exhibits:
1.1 Resolution of the Executive Committee of the Board of
Directors of IDS Life of New York establishing Accounts C, D,
E, F, G, H dated November 12, 1981, filed electronically as
Exhibit 1.1 to Registration Statement No. 33-52567, is
incorporated herein by reference.
1.2 Resolution of the Executive Committee of the Board of
Directors of IDS Life of New York establishing Account 9 on
Feb. 12, 1986, filed electronically as Exhibit 1.2 to
Registration Statement No. 33-52567, is incorporated herein
by reference.
1.3 Resolution of the Board of Directors of IDS Life Insurance
Company of New York establishing Accounts 10 and 11 on Oct.
8, 1991, filed electronically as Exhibit 1.3 to Registration
Statement No. 33-52567, is incorporated herein by reference.
2. Not applicable.
3. Form of Variable Annuity and Life Insurance Distribution
Agreement filed electronically as Exhibit 3 to Registration
Statement No. 33-52567, is incorporated herein by reference.
4.1 Copy of form of Group Deferred Annuity Contract (form 38607)
filed electronically as Exhibit 4.1 to Registration Statement
No. 33-52567, is incorporated herein by reference.
4.2 Copy of form of Group Deferred Annuity Participant
Certificate (form 38611) filed electronically as Exhibit 4.2
to Registration Statement No. 33-52567, is incorporated
herein by reference.
5.1 Copy of form of Employee Benefit Annuity Master Application
for Group Deferred Annuity Contract (form 38608 A), filed
electronically herewith.
5.2 Copy of form of Participant Enrollment Form (for Employee
Benefit Annuity) (form 38609 A), filed electronically
herewith.
6.1 Copy of the Revised Charter of IDS Life of New York, dated
April, 1992, filed electronically as Exhibit 6.1 to
Registration Statement No. 33-52567, is incorporated herein
by reference.
6.2 Copy of Amended By-Laws of IDS Life of New York, dated May,
1992, filed electronically as Exhibit 6.2 to Registration
Statement No. 33-52567, is incorporated herein by reference.
<PAGE>
PAGE 40
7. Not applicable.
8. Not applicable.
9. Opinion of counsel and consent to its use as to the legality
of the securities being registered will be filed with
Registrant's 24f-2 Notice on or about February 28, 1995.
10. To be filed by amendment.
11. To be filed by amendment.
12. Not applicable.
13. Copy of schedule for computation of each performance
quotation provided in the Registration Statement in response
to Item 21, filed electronically as Exhibit 13 to Pre-
Effective Amendment No. 1 to Registration Statement No. 33-
52567, is incorporated herein by reference.
14. N/A.
15. Powers of Attorney to sign Amendments to this Registration
Statement, dated April 18, 1994, filed electronically as
Exhibit 14 to Pre-Effective Amendment No. 1 to Registration
Statement No. 33-52567, is incorporated herein by reference.
<PAGE>
PAGE 41
Item 25. Directors and Officers of the Depositor
<TABLE>
<CAPTION>
Positions and
Name Principal Business Address Offices with Depositor
<S> <C> <C>
Mario Alaia 20 Madison Avenue Extension Claims Officer and
Albany, NY Assistant Secretary
Tracy A. Anderson IDS Tower 10 Treasurer and Chief Actuary
Minneapolis, MN 55440
Darrell C. Beckstrom IDS Tower 10 Underwriting Officer
Minneapolis, MN 55440
John C. Boeder 20 Madison Avenue Extension Director
Albany, NY
Michael B. Carlin General Counsel and
Secretary
Roger C. Corea 20 Madison Avenue Extension Director
Albany, NY
Charles A. Cuccinello 20 Madison Avenue Extension Director
Albany, NY
Milton R. Fenster 20 Madison Avenue Extension Director
Albany, NY
Margaret M. Grogan, M.D. Bethlehem Terrace Apts. Medical Director
Slingerland, NY
Lorraine R. Hart IDS Tower 10 Investment Officer
Minneapolis, MN 55440
Robert A. Hatton Vice President and
Chief Operating Officer
Richard W. Kling IDS Tower 10 Director, Chairman of
Minneapolis, MN 55440 the Board and President
Edward Landes IDS Tower 10 Director
Minneapolis, MN 55440
Janis E. Miller Executive Vice President
Michael P. Monaco World Financial Center Director
New York, NY
Stephen P. Norman World Financial Center Director
New York, NY
Kevin E. Palmer Reinsurance Actuary
<PAGE>
PAGE 42
Louise M. Parent World Financial Center Director
New York, NY
Carl N. Platou Director
Gordon H. Ritz 404 WCCO Radio Bldg. Director
Minneapolis, MN
F. Dale Simmons IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant Treasurer
William A. Stoltzmann IDS Tower 10 Counsel and Assistant
Minneapolis, MN 55440 Secretary
Michael R. Woodward 20 Madison Avenue Extension Director
Albany, NY
</TABLE>
<PAGE>
PAGE 43
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
IDS Life Insurance Company of New York is a wholly owned
subsidiary of IDS Life Insurance Company which is a
wholly owned subsidiary of American Express Financial
Corporation. American Express Financial Corporation is a
wholly owned subsidiary of American Express Company
(American Express).
The following list includes the names of major
subsidiaries of American Express.
Jurisdiction
Name of Subsidiary of Incorporation
I. Travel Related Services
American Express Travel Related
Services Company, Inc. New York
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Investment Services
Lehman Brothers Inc. Delaware
IV. Companies engaged in Investors
Diversified Financial Services
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Financial Corporation Delaware
American Express Financial Advisors Inc. Delaware
American Express Minnesota Foundation Minnesota
American Express Service Corporation Delaware
American Express Trust Company Minnesota
American Partners Life Insurance Company Arizona
IDS Advisory Group Inc. Minnesota
IDS Aircraft Services Corporation Minnesota
IDS Cable Corporation Minnesota
IDS Cable II Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
IDS Certificate Company Delaware
IDS Deposit Corp. Utah
IDS Fund Management Limited U.K.
IDS Futures Corporation Minnesota
IDS Futures III Corporation Minnesota
IDS Insurance Agency of Alabama Inc. Alabama
IDS Insurance Agency of Arkansas Inc. Arkansas
IDS Insurance Agency of Massachusetts Inc. Massachusetts
IDS Insurance Agency of Mississippi Inc. Mississippi
IDS Insurance Agency of Nevada Inc. Nevada
IDS Insurance Agency of New Mexico Inc. New Mexico
<PAGE>
PAGE 44
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
Jurisdiction
Name of Subsidiary of Incorporation
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Ohio Inc. Ohio
IDS Insurance Agency of Texas Inc. Texas
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS International, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
IDS Management Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Plan Services of California, Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Real Estate Services, Inc. Delaware
IDS Realty Corporation Minnesota
IDS Sales Support Inc. Minnesota
IDS Securities Corporation Delaware
Investors Syndicate Development Corp. Nevada
Item 27. Number of Contractowners
Not applicable.
Item 28. Indemnification
The By-Laws of the depositor provide that it shall
indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that
he is or was a director, officer, employee or agent of
this Corporation, or is or was serving at the direction
of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture,
trust or other enterprise, to any threatened, pending or
completed action, suit or proceeding, wherever brought,
to the fullest extent permitted by the laws of the State
of Minnesota, as now existing or hereafter amended,
provided that this Article shall not indemnify or protect
any such director, officer, employee or agent against any
liability to the Corporation or its security holders to
which he would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless
disregard of his obligations and duties.
Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to director, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
<PAGE>
PAGE 45
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Item 29. Principal Underwriters.
(a) American Expess Financial Advisors Inc. (formerly IDS
Financial Services Inc.) acts as principal underwriter
for the following investment companies:
IDS Bond Fund, Inc.; IDS California Tax-Exempt Trust; IDS
Discovery Fund, Inc.; IDS Equity Select Fund, Inc.; IDS Extra
Income Fund, Inc.; IDS Federal Income Fund, Inc.; IDS Global
Series, Inc.; IDS Growth Fund, Inc.; IDS High Yield Tax-Exempt
Fund, Inc.; IDS International Fund, Inc.; IDS Investment
Series, Inc.; IDS Managed Retirement Fund, Inc.; IDS Market
Advantage Series, Inc.; IDS Money Market Series, Inc.; IDS New
Dimensions Fund, Inc.; IDS Precious Metals Fund, Inc.; IDS
Progressive Fund, Inc.; IDS Selective Fund, Inc.; IDS Special
Tax-Exempt Series Trust; IDS Stock Fund, Inc.; IDS Strategy
Fund, Inc.; IDS Tax-Exempt Bond Fund, Inc.; IDS Tax-Free Money
Fund, Inc.; IDS Utilities Income Fund, Inc. and IDS
Certificate Company.
(b) As to each director, officer or partner of the principal
underwriter:
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald G. Abrahamson Vice President- None
IDS Tower 10 Service Quality and
Minneapolis, MN 55440 Reengineering
Douglas A. Alger Vice President-Total None
IDS Tower 10 Compensation
Minneapolis, MN 55440
Jerome R. Amundson Vice President- None
IDS Tower 10 Investment Accounting
Minneapolis, MN 55440
Peter J. Anderson Senior Vice President- None
IDS Tower 10 Investments
Minneapolis, MN 55440
<PAGE>
PAGE 46
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ward D. Armstrong Vice President- None
IDS Tower 10 Sales and Marketing,
Minneapolis, MN 55440 American Express
Institutional Services
Alvan D. Arthur Group Vice President- None
IDS Tower 10 Central California/Western
Minneapolis, MN 55440 Nevada
Kent L. Ashton Vice President- None
IDS Tower 10 Financial Education
Minneapolis, MN 55440 Services
Joseph M. Barsky III Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
Robert C. Basten Vice President-Tax None
IDS Tower 10 and Business Services
Minneapolis, MN 55440
Timothy V. Bechtold Vice President-Insurance None
IDS Tower 10 Product Development
Minneapolis, MN 55440
John D. Begley Group Vice President- None
Olentangy Valley Center Ohio/Indiana
Suite 300
7870 Olentangy River Rd.
Columbus, OH 43235
Carl E. Beihl Vice President- None
IDS Tower 10 Strategic Technology
Minneapolis, MN 55440 Planning
Jack A. Benjamin Group Vice President- None
Greater Pennsylvania
Alan F. Bignall Vice President- None
IDS Tower 10 Financial Planning
Minneapolis, MN 55440 Systems
Brent L. Bisson Group Vice President- None
Seafirst Financial Los Angeles Metro
Center, Suite 1730
601 W. Riverside Ave.
Spokane, WA 99201
John C. Boeder Vice President- None
IDS Tower 10 Mature Market Group
Minneapolis, MN 55440
<PAGE>
PAGE 47
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Bruce J. Bordelon Group Vice President- None
Gulf States
Charles R. Branch Group Vice President- None
Northwest
Karl J. Breyer Senior Vice President- None
IDS Tower 10 Corporate Affairs and
Minneapolis, MN 55440 Special Counsel
Harold E. Burke Vice President None
IDS Tower 10 and Assistant
Minneapolis, MN 55440 General Counsel
Daniel J. Candura Vice President- None
IDS Tower 10 Marketing Support
Minneapolis, MN 55440
Cynthia M. Carlson Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Securities Services
Orison Y. Chaffee III Vice President-Field None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James E. Choat Senior Vice President- None
Suite 124 Field Management
6210 Campbell Rd.
Dallas, TX 75248
Kenneth J. Ciak Vice President and None
IDS Property Casualty General Manager-
1400 Lombardi Avenue IDS Property Casualty
Green Bay, WI 54304
Roger C. Corea Group Vice President- None
345 Woodcliff Drive Upstate New York
Fairport, NY 14450
Henry J. Cormier Group Vice President- None
Connecticut
John M. Crawford Group Vice President- None
Arkansas/Springfield/Memphis
Kevin F. Crowe Group Vice President- None
IDS Tower 10 Carolinas/Eastern Georgia
Minneapolis, MN 55440
<PAGE>
PAGE 48
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Alan R. Dakay Vice President- None
IDS Tower 10 Institutional Insurance
Minneapolis, MN 55440 Marketing
Regenia David Vice President- None
Systems Services
Scott M. Digiammarino Group Vice President- None
Washington/Baltimore
Bradford L. Drew Group Vice President- None
Eastern Florida
William H. Dudley Director and Executive Director/
IDS Tower 10 Vice President- Trustee
Minneapolis MN 55440 Investment Operations
Roger S. Edgar Senior Vice President- None
IDS Tower 10 Information Systems
Minneapolis, MN 55440
Gordon L. Eid Senior Vice President None
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Robert M. Elconin Vice President- None
IDS Tower 10 Government Relations
Minneapolis, MN 55440
Mark A. Ernst Vice President- None
IDS Tower 10 Retail Services
Minneapolis, MN 55440
Joseph Evanovich Jr. Group Vice President- None
Nebraska/Iowa/Dakotas
Louise P. Evenson Group Vice President- None
San Francisco Bay Area
Gordon M. Fines Vice President- None
IDS Tower 10 Mutual Fund Equity
Minneapolis MN 55440 Investments
Louis C. Fornetti Senior Vice President None
IDS Tower 10 and Chief Financial
Minneapolis, MN 55440 Officer
Douglas L. Forsberg Group Vice President- None
IDS Tower 10 Portland/Eugene
Minneapolis, MN 55440
<PAGE>
PAGE 49
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
William P. Fritz Group Vice President- None
Northern Missouri
Carl W. Gans Group Vice President- None
IDS Tower 10 Twin City Metro
Minneapolis, MN 55440
Bruce M. Gaurino Group Vice President- None
Hawaii
Robert G. Gilbert Vice President- None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
John J. Golden Vice President- None
IDS Tower 10 Field Compensation
Minneapolis, MN 55440 Development
Morris Goodwin Jr. Vice President and None
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
Suzanne Graf Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
Bruce M. Guarino Group Vice President- None
Hawaii
David A. Hammer Vice President None
IDS Tower 10 and Marketing
Minneapolis, MN 55440 Controller
Teresa A. Hanratty Group Vice President- None
Northern New England
John R. Hantz Group Vice President- None
Detroit Metro
Robert L. Harden Group Vice President- None
Suite 403 Boston Metro
8500 Leesburg Pike
Vienna, VA 22180
Lorraine R. Hart Vice President- None
IDS Tower 10 Insurance Investments
Minneapolis, MN 55440
Scott A. Hawkinson Vice President-Assured None
IDS Tower 10 Assets Product Development
Minneapolis, MN 55440 and Management
<PAGE>
PAGE 50
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Brian M. Heath Group Vice President- None
IDS Tower 10 North Texas
Minneapolis, MN 55440
Raymond E. Hirsch Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
David J. Hockenberry Group Vice President- None
Eastern Tennessee
Kevin P. Howe Vice President- None
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations
David R. Hubers Chairman, Chief None
IDS Tower 10 Executive Officer and
Minneapolis, MN 55440 President
Marietta L. Johns Senior Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440
Douglas R. Jordal Vice President-Taxes None
IDS Tower 10
Minneapolis, MN 55440
Craig A. Junkins Vice President - IDS 1994 None
IDS Tower 10 Implementation Planning
Minneapolis, MN 55440 and Financial Planning
Development
James E. Kaarre Vice President- None
IDS Tower 10 Marketing Information
Minneapolis, MN 55440
Linda B. Keene Vice President- None
Market Development
G. Michael Kennedy Vice President-Investment None
IDS Tower 10 Services and Investment
Minneapolis, MN 55440 Research
Susan D. Kinder Senior Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440
<PAGE>
PAGE 51
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Richard W. Kling Senior Vice President- None
IDS Tower 10 Risk Management Products
Minneapolis, MN 55440
Harold D. Knutson Vice President- None
IDS Tower 10 System Services
Minneapolis, MN 55440
Paul F. Kolkman Vice President- None
IDS Tower 10 Actuarial Finance
Minneapolis, MN 55440
Claire Kolmodin Vice President- None
IDS Tower 10 Service Quality
Minneapolis, MN 55440
David S. Kreager Group Vice President- None
IDS Tower 10 Greater Michigan
Minneapolis, MN 55440
Steven C. Kumagai Director and Senior None
IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Management and Business
Systems
Mitre Kutanovski Group Vice President- None
IDS Tower 10 Chicago Metro
Minneapolis, MN 55440
Edward Labenski Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Kurt A. Larson Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Lori J. Larson Vice President- None
IDS Tower 10 Variable Assets Product
Minneapolis, MN 55440 Development
Ryan R. Larson Vice President- None
IDS Tower 10 IPG Product Development
Minneapolis, MN 55440
Daniel E. Laufenberg Vice President and None
IDS Tower 10 Chief U.S. Economist
Minneapolis, MN 55440
<PAGE>
PAGE 52
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Richard J. Lazarchic Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Peter A. Lefferts Senior Vice President and None
IDS Tower 10 Chief Marketing Officer
Minneapolis, MN 55440
Douglas A. Lennick Director and Executive None
IDS Tower 10 Vice President-Private
Minneapolis, MN 55440 Client Group
Mary J. Malevich Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Fred A. Mandell Vice President- None
IDS Tower 10 Field Marketing Readiness
Minneapolis, MN 55440
Daniel E. Martin Group Vice President- None
Pittsburgh Metro
William J. McKinney Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440 Support
Thomas W. Medcalf Vice President- None
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
William C. Melton Vice President- None
IDS Tower 10 International Research
Minneapolis, MN 55440 and Chief International
Economist
Janis E. Miller Vice President- None
IDS Tower 10 Variable Assets
Minneapolis, MN 55440
James A. Mitchell Executive Vice President- None
IDS Tower 10 Marketing and Products
Minneapolis, MN 55440
John P. Moraites Group Vice President- None
Kansas/Oklahoma
Pamela J. Moret Vice President- None
IDS Tower 10 Corporate Communications
Minneapolis, MN 55440
<PAGE>
PAGE 53
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Barry J. Murphy Senior Vice President- None
IDS Tower 10 Client Service
Minneapolis, MN 55440
Robert J. Neis Vice President- None
IDS Tower 10 Information Systems
Minneapolis, MN 55440 Operations
Ronald E. Newton Group Vice President- None
Rhode Island/Central
Massachusetts
Thomas V. Nicolosi Group Vice President- None
New York Metro Area
Vernon F. Palen Region Vice President- None
Suite D-222 Rocky Mountain Region
7100 E. Lincoln Drive
Scottsdale, AZ 85253
James R. Palmer Vice President- None
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
Carla P. Pavone Vice President- None
IDS Tower 10 Specialty Service Teams
Minneapolis, MN 55440 and Emerging Business
Judith A. Pennington Vice President- None
IDS Tower 10 Field Technology
Minneapolis, MN 55440
George M. Perry Vice President- None
IDS Tower 10 Corporate Strategy
Minneapolis, MN 55440 and Development
Susan B. Plimpton Vice President- None
IDS Tower 10 Segmentation Development
Minneapolis, MN 55440 and Support
Larry M. Post Group Vice President- None
Philadelphia Metro
Ronald W. Powell Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James M. Punch Vice President- None
IDS Tower 10 TransAction Services
Minneapolis, MN 55440
<PAGE>
PAGE 54
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
R. Daniel Richardson Group Vice President- None
Southern Texas
Roger B. Rogos Group Vice President- None
Suite 15, Parkside Pl. Western Florida
945 Boardman-Canfield Rd
Youngstown, Ohio 44512
ReBecca K. Roloff Vice President-1994 None
IDS Tower 10 Program Director
Minneapolis, MN 55440
Stephen W. Roszell Vice President- None
IDS Tower 10 Advisory Institutional
Minneapolis, MN 55440 Marketing
Max G. Roth Group Vice President- None
Wisconsin/Upper Michigan
Robert A. Rudell Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Institutional Services
John P. Ryan Vice President and None
IDS Tower 10 General Auditor
Minneapolis, MN 55440
Erven A. Samsel Senior Vice President- None
45 Braintree Hill Park Field Management
Braintree, MA 02184
Russell L. Scalfano Group Vice President- None
Illinois/Indiana/Kentucky
William G. Scholz Group Vice President- None
Arizona/Las Vegas
Stuart A. Sedlacek Vice President- None
IDS Tower 10 Assured Assets
Minneapolis, MN 55440
Donald K. Shanks Vice President- None
IDS Tower 10 Property Casualty
Minneapolis, MN 55440
<PAGE>
PAGE 55
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
F. Dale Simmons Vice President-Senior None
IDS Tower 10 Portfolio Manager,
Minneapolis, MN 55440 Insurance Investments
Judy P. Skoglund Vice President- None
IDS Tower 10 Human Resources and
Minneapolis, MN 55440 Organization Development
Julian W. Sloter Group Vice Presidnet- None
9040 Roswell Rd. Orlando/Jacksonville
River Ridge-Suite 600
Atlanta, GA 30350
Ben C. Smith Vice President- None
IDS Tower 10 Workplace Marketing
Minneapolis, MN 55440
William A. Smith Vice President and None
IDS Tower 10 Controller-Private
Minneapolis, MN 55440 Client Group
James B. Solberg Group Vice President- None
IDS Tower 10 Eastern Iowa Area
Minneapolis, MN 55440
Bridget Sperl Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440 Management Services
Paul J. Stanislaw Group Vice President- None
Southern California
Lois A. Stilwell Group Vice President- None
IDS Tower 10 Outstate Minnesota Area/
Minneapolis, MN 55440 North Dakota/Western Wisconsin
William A. Stoltzmann Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James J. Strauss Vice President- None
IDS Tower 10 Corporate Planning
Minneapolis, MN 55440 and Analysis
Jeffrey J. Stremcha Vice President-Information None
IDS Tower 10 Resource Management/ISD
Minneapolis, MN 55440
Neil G. Taylor Group Vice President- None
IDS Tower 10 Seattle/Tacoma
Minneapolis, MN 55440
<PAGE>
PAGE 56
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
John R. Thomas Senior Vice President- Director/
IDS Tower 10 Information and Trustee
Minneapolis, MN 55440 Technology
Melinda S. Urion Vice President and None
IDS Tower 10 Corporate Controller
Minneapolis, MN 55440
Peter S. Velardi Group Vice President- None
Atlanta/Birmingham
Charles F. Wachendorfer Group Vice President- None
Denver/Salt Lake City/
Albuquerque
Wesley W. Wadman Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Norman Weaver Jr. Senior Vice President- None
Suite 215 Field Management
1501 Westcliff Drive
Newport Beach, CA 92660
Michael L. Weiner Vice President- None
IDS Tower 10 Corporate Tax
Minneapolis, MN 55440 Operations
Lawrence J. Welte Vice President- None
IDS Tower 10 Investment Administration
Minneapolis, MN 55440
Jeffry M. Welter Vice President- None
IDS Tower 10 Equity and Fixed Income
Minneapolis, MN 55440 Trading
William N. Westhoff Senior Vice President and None
IDS Tower 10 Global Chief Investment
Minneapolis, MN 55440 Officer
Thomas L. White Group Vice President- None
Cleveland Metro
Eric S. Williams Group Vice President- None
Virginia
Edwin M. Wistrand Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
<PAGE>
PAGE 57
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Michael R. Woodward Senior Vice President- None
Suite 815 Field Management
8585 Broadway
Merrillville, IN 46410
<TABLE>
<CAPTION>
(c) Name of Net Underwriting
Principal Discounts and Compensation on Brokerage Other
Underwriter Commissions Redemption Commissions Compensation
<S> <C> <C> <C> <C>
American Express
Financial Advisors
Inc. None None None
</TABLE>
Item 30. Location of Accounts and Records
IDS Life Insurance Company of New York
20 Madison Avenue Extension
Albany, NY 12203
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) (b) & (c) These undertakings were filed with the Registrant's
initial Registration Statement, File No. 33-52567.
(d) Registrant represents that it is relying upon the
no-action assurance given to the American Council of
Life Insurance (pub. avail. Nov. 28, 1988).
Further, Registrant represents that it has complied
with the provisions of paragraphs (1)-(4) of that
no-action letter.
<PAGE>
PAGE 58
SIGNATURES
As required by the Securities Act of 1933 and the Investment
Company Act of 1940, IDS Life Insurance Company of New York, on
behalf of the Registrant, certifies that it meets 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 Registration Statement to be signed on its behalf,
in the City of Minneapolis, and State of Minnesota, on the 24th day
of February, 1995.
IDS LIFE ACCOUNT 4
IDS LIFE ACCOUNT 5
IDS LIFE ACCOUNT 6
IDS LIFE ACCOUNT 9
IDS LIFE ACCOUNT 10
IDS LIFE ACCOUNT 11
(Registrant)
By IDS Life Insurance Company of New York
(Sponsor)
By /s/ Richard W. Kling*
Richard W. Kling
President
As required by the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the
capacities indicated on the 24th day of February, 1995.
Signature Title
/s/ Richard W. Kling* Director and President
Richard W. Kling
/s/ John C. Boeder* Director
John C. Boeder
/s/ Roger C. Corea* Director
Roger C. Corea
/s/ Charles A. Cuccinello* Director
Charles A. Cuccinello
/s/ Milton R. Fenster* Director
Milton R. Fenster
/s/ Edward Landes* Director
Edward Landes
/s/ Michael P. Monaco* Director
Michael P. Monaco
/s/ Steven P. Norman* Director
Steven P. Norman
<PAGE>
PAGE 59
Signature Title
/s/ Louise M. Parent* Director
Louise M. Parent
/s/ Carl Platou* Director
Carl Platou
/s/ Gordon H. Ritz* Director
Gordon H. Ritz
/s/ Michael R. Woodward* Director
Michael R. Woodward
*Signed pursuant to Power of Attorney, dated April 18, 1994, filed
electronically as Exhibit 14 to Pre-Effective Amendment No. 1 to
Registration Statement No. 33-52567, is incorporated herein by
reference.
______________________________
Mary Ellyn Minenko
<PAGE>
PAGE 60
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 1
This Registration Statement is comprised of the following papers
and documents:
The Cover Page.
Cross-reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
IDS Life of New York Employee Benefit Annuity
Registration Number 33-52567/811-3500
EXHIBIT INDEX
Exhibit 5.1 Copy of form of Employee Benefit Annuity Master
Application for Group Deferred Annuity Contract
(form 38608 A).
Exhibit 5.2 Copy of form of Participant Enrollment Form (for
Employee Benefit Annuity, form 38609 A).
<PAGE>
PAGE 1
GROUP DEFERRED ANNUITY CONTRACT
- - Employer Plan
- - Group Deferred Annuity - Individual Allocation
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - This contract is nonparticipating. Dividends are not payable.
This is a deferred annuity contract. It is a legal contract between
you, as the owner, and us, IDS Life Insurance Company of New York,
a Stock Company, Albany, New York. PLEASE READ YOUR CONTRACT
CAREFULLY.
We agree: to pay annuity benefits provided in this contract and; to
provide you and the Participants and Beneficiaries with the rights
and benefits contained in this contract.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE
INVESTMENT RESULTS OF THE SEPARATE ACCOUNTS, ARE VARIABLE AND NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT. SEE PAGE 10 FOR VARIABLE
PROVISIONS.
We issue this contract in consideration of your application and the
payment of the purchase payments for allocation to Participant
certificates as directed.
Signed for an issued by IDS Life Insurance Company of New York in
Albany, New York, as of the date shown under Contract Data.
President
/s/ John C. Boeder
Secretary
/s/ Michael B. Carlin
<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions Important words and meanings/Page 3
General Provisions Entire contract; Certificates;
Incontestable; Benefits based upon
incorrect data; State laws; Periodic
reports; Evidence of survival;
Protection of proceeds; Payments by
us; Voting rights; Changes in
plan/Page 5
Ownership and Beneficiary Owner rights; Trust or custodial
ownership; Change of ownership;
Beneficiary; Change of
Beneficiary/Page 6
Payments to Beneficiary Describes options and amounts payable
upon death/Page 7
Purchase Payments Purchase payments; Amounts and
intervals; Payment limits; Allocation
of purchase payments; Termination of
payments/Page 8
Certificate Value Provisions Certificate value; Fixed account
certificate value; Interest to be
credited; Variable accounts
certificate value; Administrative
charge; Premium tax charges;
Transfers of certificate values/
Page 9
Fixed and Variable Accounts Fixed account; Variable accounts;
Investments of the variable accounts;
Valuation of assets; Accumulation
units and values; Net investment
factor; Mortality and expense risk
charge; Annuity unit value/Page 10
Surrender Provisions Surrender; Surrender value; Surrender
Charge; Rules for surrender/Page 11
Suspension or Delay in Payment;
Surrenders May Be Taxed; Surrender
Restrictions/Page 12
Loan Provisions Loan amount; Loan interest; Loan
period and repayment; Effect of loan
on certificate value; Transfers and
partial surrenders during loan
period; Tax status/Page 13
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 14
<PAGE>
PAGE 3
GUIDE TO CONTRACT PROVISIONS
(Continued)
Table of Settlement Rates Tables showing the amount of the
first variable annuity payment and
fixed annuity payments for the
various payment plans/Page 16
<PAGE>
PAGE 4
CONTRACT DATA
Contract Date: February 1, 1993
Contract Number: Sample
Contract Owner: ABC School
Group Deferred Annuity Contract for 403(b) Employer-Sponsored Plans
Accounts Available for Allocation of Purchase Payments:
Variable
Accounts Mutual Fund
4 IDS Life Capital Resource Fund
5 IDS Life Special Income Fund
6 IDS Life Moneyshare Fund
9 IDS Life Managed Fund
10 IDS Life International Equity Fund
11 IDS Life Aggressive Growth Fund
Fixed Account
Surrender Charge: Applies to each certificate. See page 11.
Surrender Charge
as % of Amount
Certificate Year Surrendered
1 8%
2 8
3 8
4 8
5 7
6 6
7 5
8 4
9 3
10 2
11 1
12 and later 0
Surrender charges will not exceed 8 1/2% of purchase payments with
respect to each certificate.
Administrative Charge: $30 deducted from each certificate's value
at the end of each certificate year. See
page 9.
Fixed Account Guaranteed Interest Rate: 3% Annual Effective Rate.
Loan Interest Rate Charged: 5.7% annually in advance.
See page 13.
<PAGE>
PAGE 5
CONTRACT DATA
(Continued)
In order for the dollar amount of variable annuity payments not to
decrease, the assets of the variable accounts must have an annual
net rate of investment return of 3 1/2%. This is equal to a 4 1/2%
gross investment return minus the 1% risk charge.
<PAGE>
PAGE 6
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
Annuitant
The Participant named in each certificate on whose life annuity
payments will be based.
Participant
An eligible employee or other person named in the certificate who
is entitled to benefits under the Plan as determined and reported
to us by the Owner.
You, Your
The owner of this contract.
We, Our, Us
IDS Life Insurance Company of New York (IDS Life of New York).
Contract Owner
The employer or other organization which makes application for this
contract.
Participant Enrollment Form
The document or application signed by each Participant that serves
as his or her application for enrollment under the contract.
Plan
The retirement plan under which the contract is issued and which
meets the particular requirements of Section 403(b) of the Internal
Revenue Code of 1986, as amended ("Code").
Purchase Payment (Payment)
An amount paid to Us by or on behalf of a participant as
consideration for the benefits provided by the contract and related
certificates.
Certificate
The document for each Participant which evidences the coverage of
the Participant under the contract.
Certificate Year
Any period of one year commencing with the issue date of a
Participant's certificate and each anniversary thereafter.
<PAGE>
PAGE 7
DEFINITIONS
(Continued)
Certificate Anniversary
The first day of any certificate year.
Accumulation Unit
An accumulation unit is an accounting unit of measure. It is used
to calculate a Participant's certificate value prior to settlement.
Annuity Unit
An annuity unit is an accounting unit of measure. It is used to
calculate the value of annuity payments from the variable accounts
on and after the retirement date.
Contract Date
The date from which contract anniversaries, contract years, and
contract months are determined. Your contract date is shown under
Contract Data.
Contract Anniversary
The same day and month as the contract date each year that the
contract remains in force.
Certificate Value
The sum of the: (1) Fixed Account certificate value; and (2)
Variable Account certificate value .
Retirement Date
The date elected by the Participant on which annuity payments are
to begin. This date may be changed as provided in this contract.
The participant will be notified prior to the retirement date in
order to select an appropriate annuity payment plan.
Settlement
The application of a Participant's certificate value to provide
annuity payments.
Valuation Date
A valuation date is each day the New York Stock Exchange is open
for trading.
Valuation Period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
<PAGE>
PAGE 8
DEFINITIONS
(Continued)
Fixed Account
The fixed account is made up of all our assets other than those in
any separate account.
Variable Accounts
The variable accounts are named under Contract Data. Each is a
separate investment account of ours.
Fixed Annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
Variable Annuity
A variable annuity is an annuity with payments which (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of one or more of the
variable accounts.
Written Request
A request in writing signed by you or a Participant and delivered
to us.
<PAGE>
PAGE 9
GENERAL PROVISIONS
Entire Contract
This contract form is the entire contract between you and us.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other persons
has the authority to change or waive any of our rights or
requirements under this contract.
Certificates
We shall issue an individual certificate setting forth in substance
the benefits to which each Participant is entitled under this
contract. Nothing in the group annuity contract invalidates or
impairs any right granted to the certificate holder required by
law. Such certificate is not a part of this contract.
Incontestable
The contract and certificates are incontestable from their date of
issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age that is incorrect, benefits will be recalculated on the basis
of the correct data. Any underpayments made by us will immediately
be paid in a single sum with an interest credit of 6% per annum.
Any overpayments made by us will be subtracted from the future
payments together with an interest charge of 6% per annum.
State Laws
This contract is governed by the law of the state in which it is
delivered. The values and benefits of this contract are at least
equal to those required by such state.
Periodic Reports
Statements will be sent to the Owner and Participant quarterly, or
more frequently as the Code may require, showing the number, type
and value of the fixed amounts and accumulation units credited to
the contract and the Participant's certificate. The statement shall
be accurate as of a date not more than two (2) months prior to the
date of mailing. Statements reflecting transactions in each
Participant's certificate as may be required by applicable laws,
rules and regulations will also be sent.
<PAGE>
PAGE 10
GENERAL PROVISIONS
(Continued)
Evidence of Survival
Where any payments under this contract depend on the recipient or
annuitant being alive on a given date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making the payments.
Protection of Proceeds
Payments under this contract are not assignable by any beneficiary
prior to the time they are due. To the extent allowed by law,
payments are not subject to the claims of creditors or to legal
process.
Payments By Us
All sums payable by us are payable at our home office. Any payment
of a variable annuity or surrender based on the variable contract
value shall be payable only from the variable accounts.
Voting Rights
We will vote mutual fund shares held by the variable accounts at
meetings of shareholders of the fund(s), in accordance with
instructions received from the Owner, Participants, or other
authorized party. Notice will be given to each person who may be
entitled to vote on any matter. Such notice will specify the
matters upon which the person may be entitled to vote and the
method of determining the number of votes which may be cast at any
such meeting. Fund shares held in each variable account for which
no timely voting instructions are received and fund shares that are
not otherwise attributable to Owners, Participants, or other
authorized party will be voted by the Company in the same
proportion as the shares for which voting instructions are
received.
Changes in Plan
Evidence may be requested that the Plan meets the requirements of
qualification under Section 403(b) of the Code. You agree to
provide notification immediately if, at any time, the Plan fails to
meet the requirements of that Section of the Code.
<PAGE>
PAGE 11
OWNERSHIP AND BENEFICIARY
Owner's Rights
Unless otherwise provided in this contract, you may exercise all
rights and privileges provided in this contract or allowed by us.
Participants rights under the contract are subject to the terms of
the Owner's Plan.
Trust or Custodial Ownership
If you are a tax qualified trust or tax qualified custodial
account, then your trustees or custodian (or their successors)
properly named by your trust or custodial agreement may exercise
all rights and privileges provided in this contract or allowed by
us.
Change of Ownership (Restricted)
Your right to change the ownership of this contract is restricted.
This contract may not be sold, assigned, transferred, discounted or
pledged as collateral for a loan or as security for the performance
of an obligation or for any other purpose to any person other than
to us. The Participants vested rights under this contract are
nonforfeitable and this contract or the rights under it may not be
transferred to any person other than to us.
Beneficiary
Beneficiaries are those named by the Participant in accordance with
applicable provisions of the Plan and the Code, in a form
satisfactory to us, to receive benefits of the certificate if the
Participant dies while the certificate is in force.
Unless you have provided otherwise, only those beneficiaries who
are living on the date of death may share in the benefits, if any.
If no beneficiary is then living, we will pay the benefits to the
Participant's estate.
Change of Beneficiary
The Participant may change the beneficiary anytime while the
annuitant is living by satisfactory written request. Once the
change is received by us, it will take effect as of the date of
your request, subject to any action taken or payment made before
the recording.
<PAGE>
PAGE 12
PAYMENTS TO BENEFICIARY
Death Benefit Before the Retirement Date
If the Participant dies before the retirement date and age 75 while
the certificate is in force we will pay to the beneficiary the
greater of:
1. the certificate value; or
2. the purchase payments paid less any amounts surrendered.
If the Participant dies before the retirement date and on or after
the Participant's 75th birthday, while the certificate is in force,
we will pay to the beneficiary the certificate value.
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the Participant. The beneficiary may elect to
receive payment anytime within 5 years after the date of death of
the Participant.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of death;
and
3. the plan provides payments over a period which does not exceed
the life of the beneficiary, or the life expectancy of the
beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the certificate value as of the valuation date on
or next following the date on which due proof of death is received
at our home office.
Spouse Option to Continue Certificate Upon Annuitant's Death
If the Participant dies prior to the retirement date, a spouse who
is designated as sole beneficiary may elect in writing to forego
receipt of the death benefit and instead continue the certificate
in force. The election by the spouse must be made within 60 days
after we receive due proof of death. The spouse may not make
additional purchase payments to the certificate.
In this event, the retirement date may not be later than the
April 1 following the calendar year in which the Participant would
have attained age 70 1/2, or such other date which allows the
spouse to satisfy the minimum distribution requirements under the
Code, its regulations and/or promulgations by the Internal Revenue
Service.
<PAGE>
PAGE 13
PAYMENTS TO BENEFICIARY
(Continued)
Annuitant's Death After the Retirement Date
If the annuitant dies after the retirement date, the amount
payable, if any, will be as provided in the Annuity Payment Plan
then in effect.
<PAGE>
PAGE 14
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments made by, or on behalf of, the
participant under this contract for the benefits it provides.
Purchase payments must be paid or mailed to us or to an authorized
agent. If requested, we'll give you a receipt for your purchase
payments. Upon payment to us, purchase payments become our
property.
Net purchase payments are that part of the purchase payments
applied to the certificate value. A net purchase payment is equal
to the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date a Participant's certificate
terminates by surrender or otherwise; or (2) the date on which
annuity payments begin for the Participant.
Subject to the Payment Limits Provision the Participant may: (1)
stop and/or restart purchase payments; or (2) increase or decrease
the amount of purchase payments; or (3) change the interval of
purchase payments.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments in the
first or later years may not exceed the applicable limits allowed
under the Code and Plan.
Minimum Purchase Payments - The minimum purchase payment is $25 per
month which on an annualized basis equals $300.
We also reserve the right to cancel a certificate if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 36 months; and
(2) less than $600 in purchase payments have been paid under the
certificate. In this event we will give the Participant 30 days
written notice of our intent to cancel the certificate. Upon such
cancellation we will pay the Participant the certificate value in
one sum. The certificate will then terminate.
Allocation of Purchase Payments
Participants shall give instructions on how purchase payments are
to be allocated among the fixed account and variable accounts.
Choices for each account may be made in any whole percent from 0%
to 100% as long as the total adds up to 100%. A participants'
Allocation instructions as of the certificate date will be shown in
the certificate. By written request, or by another method agreed
upon, participants may change their choice of accounts or
percentages. The first net purchase payment will be allocated as of
the end of the valuation period during which we make an affirmative
<PAGE>
PAGE 15
PURCHASE PAYMENTS
(Continued)
decision to issue the certificate. Net purchase payments after the
first will be allocated as of the end of the valuation period
during which we receive the payment at our home office.
Termination of Payments
If purchase payments made by or on behalf of a Participant are
terminated for any reason prior to the retirement date, the
Participant may elect to surrender the certificate value in
accordance with any applicable provisions of this contract, the
Plan or the Code or leave the certificate in force under the
contract until the certificate value is surrendered, paid upon the
Participant's death or applied to an annuity payment plan. When the
certificate remains in force under the contract, any monies
allocated to the variable accounts will continue to reflect the net
investment experience of the funds. If the total certificate value
becomes less than $600, we reserve the right to pay the certificate
value to the Participant in a lump sum.
The Participant also may transfer the certificate under a group
deferred annuity contract held by another contract owner that is
issued by us under the same policy form.
<PAGE>
PAGE 16
CERTIFICATE VALUE PROVISIONS
Certificate Value
A participant's certificate value at any time is the sum of (1) the
Fixed Account certificate value; and (2) the Variable Account
certificate value.
If: (1) part or all of the certificate value is surrendered; or (2)
charges described herein are made against the certificate value;
then a number of accumulation units from the variable accounts and
an amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed or
variable accounts that are specified. Otherwise, the number of
units from the variable accounts and the amount from the fixed
account will be deducted in the same proportion that the
participants' interest in each bears to the total certificate
value.
Fixed Account Certificate Value
The fixed account certificate value at any time will be: (1) the
sum of all amounts credited to the fixed account under the
certificate; less (2) any amounts deducted for charges or
surrenders.
Interest to be Credited
We will credit interest to the fixed account certificate value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine from
time to time. However, we guarantee that the rate will not be less
than the Guaranteed Interest Rate shown under Contract Data.
Variable Account Certificate Value
The variable account certificate value at any time will be: (1) the
sum of the value of all variable account accumulation units under
the certificate resulting from purchase payments so allocated, or
transfers among the variable and fixed accounts; less (2) any units
deducted for charges or surrenders.
Administrative Charge
We charge a fee for establishing and maintaining our records for
each certificate under this contract. The charge is shown under
Contract Data and is deducted from the certificate value at the end
of each certificate year or, if earlier, when the certificate is
surrendered. The charge does not apply after annuity payments begin
for each participant. We reserve the right to reduce or eliminate
the administrative charge.
Premium Tax Charges
We reserve the right to deduct an amount from a participant's
certificate value for any applicable premium taxes not previously
deducted.
<PAGE>
PAGE 17
CERTIFICATE VALUE PROVISIONS
(Continued)
Transfers of Certificate Values
While a certificate is in force prior to the settlement date,
transfers of certificate account values may be made as outlined
below:
1. Subject to provisions of the Plan, Participants may transfer
all or a part of the values held in one or more of the
variable accounts to another one or more of the variable
accounts. Subject to item 2, participants may also transfer
values held in one or more of the variable accounts to the
fixed account.
2. Once per year subject to provisions of the Plan, Participants
may transfer values from the fixed account to one or more of
the variable accounts. If such a transfer is made, no
transfers from a variable account to the fixed account may be
made until the next eligible period as defined in the Plan.
Participants may make a transfer by written request. There is no
fee or charge for these transfers. However, the minimum transfer
amount is $250, or if less, the entire value in the account from
which the transfer is being made.
In lieu of the above, participants can set up scheduled transfers
on a monthly or quarterly basis. The minimum transfer amount is
$50. The maximum scheduled transfer from the fixed account, when it
is established, is limited to the current value of the fixed
account divided by 12.
<PAGE>
PAGE 18
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all of
our assets other than: (1) those in the variable accounts; and (2)
those in any other segregated asset account.
The Variable Accounts
The variable accounts are separate investment accounts of ours.
They are named under Contract Data. We have allocated a part of our
assets for this and certain other contracts to the variable
accounts. Such assets remain our property. However, they may not be
charged with the liabilities from any other business in which we
may take part.
Investments of the Variable Accounts
Purchase payments applied to the variable accounts will be
allocated as specified by the Participant. Each variable account
will buy, at net asset value, shares of the fund shown for that
account under Contract Data or as later added or changed.
Valuation of Assets
Mutual fund shares in the variable accounts will be valued at their
net asset value.
Variable Account Accumulation Units
The number of accumulation units for each of the variable accounts
is found by dividing: (1) the net amount allocated to the account;
by (2) the accumulation unit value for the account for the
valuation period during which we received the purchase payment.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable accounts
was arbitrarily set at $1 when the first mutual fund shares were
bought. The value for any later valuation period is found as
follows:
The accumulation unit value for each variable account for the
last prior valuation period is multiplied by the net
investment factor for the same account for the next following
valuation period. The result is the accumulation unit value.
The value of an accumulation unit may increase or decrease
from one valuation period to the next.
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable account from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
<PAGE>
PAGE 19
FIXED AND VARIABLE ACCOUNTS
(Continued)
The net investment factor for any such account for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund held in
the variable account determined at the end of the current
valuation period; plus
b. the per share amount of any dividend or capital gain
distributions made by the mutual fund held in the
variable account, if the "ex-dividend" date occurs during
the current valuation period.
(2) is the net asset value per share of the mutual fund held in
the variable account, determined at the end of the last prior
valuation period.
(3) is a factor representing the mortality and expense risk
charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable accounts equal, on an
annual basis, to 1.00% of the daily net asset value. This deduction
is made to compensate us for assuming the mortality and expense
risks under contracts of this type. We estimate that approximately
2/3 of this charge is for assumption of mortality risk and 1/3 is
for assumption of expense risk. The deduction is: (1) made from
each variable account; and (2) computed on a daily basis.
Annuity Unit Value
The value of an annuity unit for each variable account was
arbitrarily set at $1 when the first mutual funds were bought. The
value for any later valuation period is found as follows:
1. The annuity unit value for each variable account for the last
prior valuation period is multiplied by the net investment
factor for the account for the valuation period for which the
annuity unit value is being calculated.
2. The result is multiplied by an interest factor. This is done
to neutralize the assumed investment rate which is built into
the annuity tables on page 16.
<PAGE>
PAGE 20
SURRENDER PROVISIONS
Surrender
By written request and subject to requirements under the Plan and
the rules below a Participant may:
1. surrender the certificate for the total surrender value; or
2. partially surrender the certificate for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the certificate value;
2. minus the administrative charge;
3. minus any surrender charge.
Surrender Charge
The surrender charge shall apply to surrenders by each participant
and is based on:
1. the amount surrendered; and
2. the certificate year in which a surrender is made.
The schedule of surrender charges is shown under Contract Data. We
reserve the right to reduce or eliminate the surrender charges.
Surrender charges shall not apply if amounts are distributed due to
the following:
1. a Participant's retirement under the Plan on or after Age 55,
or
2. death of the Participant, or
3. settlement of the certificate under an Annuity Payment Plan
as described herein.
Rules For Surrender
All surrenders will have the following conditions:
1. The Participant must apply by written request or other method
agreed to by us: (a) while the certificate is in force; and
(b) prior to the earlier of the retirement date or the death
of the Participant.
2. The Participant must surrender an amount equal to at least
$250. The certificate value after a partial surrender must be
at least $600.
<PAGE>
PAGE 21
SURRENDER PROVISIONS
(Continued)
3. The amount surrendered, less any charges, will normally be
paid to the Participant within seven days of the receipt of
written request and the certificate, if required. For
surrenders from the fixed account, we have the right to defer
payment for up to 6 months from the date we receive the
request.
4. For partial surrenders, if the Participant does not specify
from which accounts the surrender is to be made, the surrender
will be made from the variable accounts and fixed account in
the same proportion as the Participant's interest in each
bears to the certificate value.
Upon surrender for the full surrender value the certificate will
terminate. We may require return of the certificate to us before we
pay the full surrender value.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable accounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is restricted; or
3. When an emergency exists as a result of which: (a) disposal of
securities held in the variable accounts is not reasonably
practicable; or (b) it is not reasonably practicable to fairly
determine the value of the net assets of the variable account;
or
4. During any other period when the Securities and Exchange
Commission, by order, so permits for the protection of
security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
Surrenders May Be Taxed
The earnings portion of any surrender is subject to tax as income,
possible penalty charges and 20% withholding according to the
Internal Revenue Code.
Surrender Restrictions Before Age 59 1/2
Section 403(b) of the Code prohibits any distributions from the
contract or certificate unless the Participant has:
1. attained age 59 1/2; or
2. separated from service of the employer; or
<PAGE>
PAGE 22
SURRENDER PROVISIONS
(Continued)
3. died; or
4. become disabled (as defined in Section 72(m)(7) of the Code;
or
5. encountered hardship (within the meaning of Section 403(b) of
the Code;
and then only such amounts that the Code may provide.
We shall require satisfactory written proof of the event(s) in
items 1 through 5 above prior to any distribution.
<PAGE>
PAGE 23
LOAN PROVISIONS
Loan Amount
We may make loans from the Fixed Account Certificate Value to the
Participant at any time before retirement payments begin. The
security for the loan will be the Fixed Account Certificate Value.
A loan cannot exceed $50,000 or one-half of the Certificate Value,
whichever is less. In no event will such amount exceed 93 % of the
Fixed Account Certificate Value. If the Participant has taken a
plan loan in the past, the $50,000 limit may be reduced. The
reduction equals $50,000 minus the excess, if any of (a) the
highest loan balances owed during the prior one-year period, over
(b) the balances currently owed. If one-half of the Certificate
Value is less than $10,000, we may make a loan in such other amount
provided in the loan agreement and permitted under applicable law.
Loans of less than $600 will not be permitted.
Loan Interest
During the loan term, the fixed account certificate value equal to
the value of the loan will continue to earn interest at a rate of
4% per year compounded annually in lieu of the current interest
rate. Loan interest will be charged on the outstanding loan balance
at a rate of 5.7% per year payable annually in advance, unless a
different rate is required by applicable federal law. In no event
will the rate exceed the maximum rate prescribed for
contracts/certificates of this type in the state where the
certificate is issued.
Loan Period and Repayment
Loans plus interest must be repaid within 5 years unless the loan
request and supplemental loan agreement specify that the loan
period will be 10 years and is agreed to by us.
Loan repayments will be due at the times set forth in the loan
agreement. If the loan balance outstanding, plus interest, is not
repaid by the end of the loan period or prior to surrender or
settlement of the certificate, the loan balance, plus interest and
any surrender charge, will be deducted from the Fixed Account
Certificate Value and paid to us. The loan balance plus interest
will be treated as a surrender. (Caution: such a surrender before
age 59 1/2 may result in a tax penalty.)
The loan may be repaid in full or in part as provided in the loan
agreement before the certificate is surrendered or retirement
payments begin.
Effect of Loan on Certificate Value
If the Certificate is surrendered while there is an outstanding
loan, the surrender value will be reduced by the amount of the loan
outstanding plus pro rata loan interest and the surrender charge.
Upon death of the Participant, the beneficiary will receive the
death benefit reduced by the amount of the loan outstanding plus
pro rata loan interest. If retirement payments start while there is
<PAGE>
PAGE 24
LOAN PROVISIONS
(Continued)
an outstanding loan, the fixed account certificate value will be
reduced by the amount of the loan outstanding plus pro rata loan
interest.
Transfers and Partial Surrenders During Loan Period
While there is an existing loan, transfers or partial surrenders
from the fixed account may be made (if otherwise permitted under
the certificate) but only with fixed account values that exceed an
amount determined by dividing the debt by 93 %. In addition, the
certificate value, less any debt, after a partial surrender must be
at least $600.
Tax Status
Loans taken under the terms above together with the Loan Request
and Supplemental Loan Agreement are intended to meet the
requirements under Section 72(p) of the Internal Revenue Code (the
Code) as it now exists or may later be amended. With respect to
remaining so qualified, we reserve the right to modify this
contract to comply with: future changes in the Code; any
regulations or rulings issued under the Code; and any other
requirements imposed by the Internal Revenue Service. We will
provide you notice and copy of any such modifications.
<PAGE>
PAGE 25
ANNUITY PROVISIONS
Settlement
When settlement occurs with respect to a Participant, the
certificate value will be applied to make annuity payments under
one of the Annuity Plans described below. The first payment will be
made as of the retirement date. This date is specified in each
Certificate. Before payments begin we will require satisfactory
proof that the annuitant is alive. We may also require the
Participant to exchange the Certificate for a supplemental contract
which provides the annuity payments.
Change of Retirement Date
A Participant may change the retirement date by written request.
The maximum Retirement Date is the later of:
1. April 1 following the calendar year in which the annuitant
attains age 70 1/2; or
2. such other date which satisfies the minimum distribution
requirements under the Code, its regulations and/or
promulgations by the Internal Revenue Service; or
Notwithstanding the above, the maximum Retirement Date is the later
of:
1. The certificate anniversary on or preceding the Participant's
85th birthday; or
2. the 10th certificate anniversary.
Also, if the Participant selects a new retirement date, it must be
at least 30 days after written request is received.
Annuity Payment Plans
Subject to the terms of the Plan and the Code, annuity payments may
be made on a fixed-dollar basis, a variable basis or a combination
of both. The Participant can schedule receipt of annuity payments
according to one of the Plans A through E below or another plan
agreed to by us provided:
1. the Plan selected provides for payments over the life of the
annuitant or over the life of the annuitant and a designated
beneficiary; or
2. the Plan selected provides for payments over a period which
does not exceed the life expectancy of the annuitant, or the
life expectancy of the annuitant and a designated beneficiary;
and
3. the Plan selected meets the minimum death incidental benefit
requirements under the Code.
<PAGE>
PAGE 26
ANNUITY PROVISIONS
(Continued)
Plan A - This provides monthly annuity payments during the
lifetime of the annuitant. No payments will be made after the
annuitant dies.
Plan B - This provides monthly annuity payments during the
lifetime of the annuitant with a guarantee by us that payments
will be made for a period of at least five, ten or fifteen
years. You must select the guaranteed period.
Plan C - This provides monthly annuity payments during the
lifetime of the annuitant with a guarantee by us that
payments will be made for a certain number of months. We
determine the number of months by dividing the amount applied
under this Plan by the amount of the first monthly annuity
payment.
Plan D - Monthly payments will be paid during the lifetime of
the annuitant and a joint annuitant. When either the annuitant
or the joint annuitant dies we will continue to make monthly
payments during the lifetime of the survivor. No payments will
be paid after the death of both the annuitant and joint
annuitant.
Plan E - (Installment for a specified period) This provides
monthly fixed dollar annuity payments for a period of years.
The period of years may be no less than 10 nor more than 30.
By written request at least 30 days before the Retirement Date, the
Participant may select the Plan. If at least 30 days before the
Retirement Date the Participant has not selected a Plan, we will
make fixed-dollar payments according to Plan B with payments
guaranteed for ten years unless this option is contrary to
applicable provisions of the Plan or the Code.
If you select a Plan that has a payment amount that is the same as
another Plan having a longer guarantee period, then the Plan with
the longer guarantee period will be deemed to have been chosen.
If the amount to be applied to a Plan would not provide an initial
monthly payment of at least $20, we have the right to make a lump
sum payment of the certificate value.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
payment will never be less than the amount of the first payment. At
settlement, the fixed account certificate value will be applied to
the applicable Annuity Table. This will be done in accordance with
the Payment Plan chosen. The amount payable for each $1,000 so
applied is shown in Table B on page 17.
<PAGE>
PAGE 27
ANNUITY PROVISIONS
(Continued)
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of the variable accounts.
Determination of First Variable Annuity Payment
At settlement, the variable account certificate value will be
applied to the applicable Annuity Table. This will be done: (1) on
the valuation date on or next preceding the seventh calendar day
before the retirement date; and (2) in accordance with the Payment
Plan chosen. The amount payable for the first payment for each
$1,000 so applied is shown in Table A on page 16.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first payment vary in amount.
The amount changes with the investment performance of the variable
accounts. The dollar amount of variable annuity payments after the
first is not fixed. It may change from month to month. The dollar
amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is divided by
the value of an annuity unit as of the valuation date on or
next preceding the seventh calendar day before the retirement
date. This result establishes the fixed number of annuity
units for each monthly annuity payment after the first
payment. This number of annuity units remains fixed during the
annuity payment period.
2. The fixed number of annuity units is multiplied by the annuity
unit value as of the valuation date on or next preceding the
seventh calendar day before the date the payment is due. This
result establishes the dollar amount of the payment.
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
Exchange of Annuity Units
Annuity units of any variable account may be exchanged for units of
any of the other variable accounts. This may be done no more than
once a year. Once annuity payments start no exchanges may be made
to or from any fixed annuity.
<PAGE>
PAGE 28
TABLE OF SETTLEMENT RATES
Annuity payments for each $1,000 of value applied under a Payment
Plan will be based on our table of settlement rates in effect on
the date of settlement. The amount of the first monthly variable
annuity payment, based on a 3 1/2% assumed investment return, is
guaranteed to be not less than the amount shown in Table A for the
adjusted age of the annuitant(s). The amount of the first and all
subsequent fixed dollar annuity payments is guaranteed to be not
less than the amount shown in Table B for the adjusted age of the
annuitant(s). Adjusted Age shall be equal to the age nearest
birthday minus an "adjustment" depending on the calendar year of
birth of the annuitant as follows:
Calendar Calendar
Year of Year of
Annuitant's Adjust- Annuitant's Adjust-
Birth ment Birth ment
Prior to 1920 0 1945 through 1949 6
1920 through 1924 1 1950 through 1959 7
1925 through 1929 2 1960 through 1969 8
1930 through 1934 3 1970 through 1979 9
1935 through 1939 4 1980 through 1989 10
1940 through 1944 5 After 1989 11
<PAGE>
PAGE 29
TABLE OF SETTLEMENT RATES
(Continued)
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
TABLE A Dollar Amount of First Monthly Variable Annuity Payment Per $1,000 Applied
_____________________________________________________________________________________________________________________________
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted age of Joint Annuitant
_____________________________________________________________________________________________________________________________
Adj. Life 5 Years 10 Years 15 Years With Adj. 10 Years 5 Years Same 5 Years 10 Years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
_____________________________________________________________________________________________________________________________
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 3.73 3.73 3.72 3.71 3.69 40 3.34 3.41 3.48 3.54 3.59
41 3.76 3.76 3.76 3.75 3.72 41 3.36 3.44 3.51 3.57 3.62
42 3.80 3.80 3.80 3.78 3.76 42 3.39 3.46 3.53 3.60 3.65
43 3.84 3.84 3.84 3.82 3.80 43 3.41 3.48 3.56 3.63 3.69
44 3.89 3.88 3.88 3.86 3.83 44 3.43 3.51 3.59 3.66 3.73
45 3.93 3.93 3.92 3.91 3.87 45 3.45 3.54 3.62 3.70 3.76
46 3.98 3.98 3.97 3.95 3.92 46 3.48 3.57 3.66 3.74 3.80
47 4.03 4.03 4.02 4.00 3.96 47 3.50 3.60 3.69 3.78 3.85
48 4.08 4.08 4.07 4.05 4.01 48 3.53 3.63 3.73 3.82 3.89
49 4.14 4.13 4.12 4.10 4.06 49 3.56 3.66 3.77 3.86 3.94
50 4.20 4.19 4.18 4.15 4.11 50 3.59 3.70 3.81 3.91 3.99
51 4.26 4.25 4.24 4.21 4.16 51 3.62 3.74 3.85 3.96 4.04
52 4.32 4.32 4.30 4.26 4.22 52 3.65 3.78 3.90 4.01 4.10
53 4.39 4.38 4.36 4.33 4.27 53 3.69 3.82 3.95 4.06 4.16
54 4.46 4.46 4.43 4.39 4.34 54 3.73 3.86 4.00 4.12 4.22
55 4.54 4.53 4.51 4.46 4.40 55 3.76 3.91 4.05 4.18 4.29
56 4.62 4.61 4.58 4.53 4.47 56 3.80 3.96 4.11 4.25 4.36
57 4.71 4.70 4.66 4.60 4.54 57 3.85 4.01 4.17 4.31 4.44
58 4.80 4.79 4.75 4.68 4.62 58 3.89 4.06 4.23 4.39 4.52
59 4.90 4.88 4.84 4.76 4.70 59 3.94 4.12 4.30 4.47 4.60
60 5.00 4.99 4.93 4.84 4.78 60 3.99 4.18 4.37 4.55 4.70
61 5.11 5.09 5.03 4.93 4.87 61 4.04 4.25 4.45 4.64 4.79
62 5.23 5.21 5.14 5.02 4.96 62 4.10 4.31 4.53 4.73 4.90
63 5.36 5.33 5.25 5.12 5.06 63 4.16 4.39 4.62 4.83 5.01
64 5.49 5.46 5.37 5.21 5.17 64 4.22 4.47 4.71 4.94 5.13
65 5.64 5.60 5.50 5.31 5.28 65 4.29 4.55 4.81 5.05 5.26
66 5.79 5.75 5.63 5.42 5.39 66 4.36 4.64 4.92 5.18 5.40
67 5.95 5.91 5.77 5.53 5.52 67 4.44 4.73 5.03 5.31 5.54
68 6.13 6.08 5.91 5.63 5.65 68 4.52 4.83 5.15 5.45 5.70
69 6.32 6.26 6.07 5.74 5.79 69 4.60 4.94 5.28 5.61 5.87
70 6.53 6.46 6.23 5.86 5.94 70 4.70 5.05 5.43 5.77 6.06
71 6.75 6.67 6.40 5.97 6.09 71 4.79 5.18 5.58 5.95 6.25
72 6.99 6.89 6.58 6.08 6.26 72 4.90 5.31 5.74 6.14 6.47
73 7.26 7.13 6.76 6.18 6.44 73 5.01 5.45 5.92 6.35 6.70
74 7.54 7.39 6.95 6.29 6.29 74 5.13 5.61 6.11 6.58 6.96
75 7.85 6.67 7.14 6.39 6.83 75 5.26 5.77 6.32 6.82 7.22
_____________________________________________________________________________________________________________________________
* Adjusted age of annuitant.
_____________________________________________________________________________________________________________________________
Table A above is based on the "1983 Individual Female Annuitant Mortality Table A." Settlement rates for any age not shown above,
will be calculated on the same basis as those rates shown in the table above. Such rates will be furnished by us upon request.
Fixed dollar annuity payments will not be less than those shown in Table B. In addition, the amount of such payments will not be
less than that which would be provided if a single premium immediate annuity contract then offered by us to annuitant's in the same
class was to be purchased with the greater of: (1) the surrender value of this contract; or (2) 95% of the contract value of this
contract.
</TABLE>
<PAGE>
PAGE 30
<TABLE>
<CAPTION>
TABLE OF SETTLEMENT RATES
(Continued)
_________________________________________________________________________________________________________
TABLE B Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
_________________________________________________________________________________________________________
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted Age of Joint Annuitant
_________________________________________________________________________________________________________
Adj. Life 5 Years 10 Years 15 Years With Adj. 10 Years 5 Years Same 5 Years 10 Years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
_________________________________________________________________________________________________________
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 3.42 3.42 3.42 3.41 3.38 40 3.03 3.10 3.17 3.24 3.29
41 3.46 3.46 3.46 3.45 3.42 41 3.05 3.13 3.20 3.27 3.32
42 3.50 3.50 3.50 3.49 3.45 42 3.07 3.15 3.23 3.30 3.36
43 3.54 3.54 3.54 3.53 3.49 43 3.10 3.18 3.26 3.33 3.39
44 3.59 3.59 3.58 3.57 3.53 44 3.12 3.21 3.29 3.37 3.43
45 3.63 3.63 3.63 3.61 3.57 45 3.15 3.24 3.33 3.41 3.47
46 3.68 3.68 3.67 3.66 3.61 46 3.17 3.27 3.36 3.44 3.51
47 3.73 3.73 3.72 3.71 3.66 47 3.20 3.30 3.40 3.48 3.56
48 3.79 3.79 3.77 3.76 3.70 48 3.23 3.33 3.44 3.53 3.60
49 3.84 3.84 3.83 3.81 3.75 49 3.26 3.37 3.48 3.57 3.65
50 3.90 3.90 3.89 3.86 3.80 50 3.29 3.41 3.52 3.62 3.71
51 3.97 3.96 3.95 3.92 3.86 51 3.32 3.44 3.56 3.67 3.76
52 4.03 4.03 4.01 3.98 3.91 52 3.36 3.48 3.61 3.72 3.82
53 4.10 4.10 4.08 4.04 3.97 53 3.39 3.53 3.66 3.78 3.88
54 4.18 4.17 4.15 4.11 4.03 54 3.43 3.57 3.71 3.84 3.94
55 4.25 4.25 4.22 4.18 4.10 55 3.47 3.62 3.77 3.90 4.01
56 4.34 4.33 4.30 4.25 4.17 56 3.51 3.67 3.83 3.97 4.08
57 4.42 4.41 4.38 4.32 4.24 57 3.56 3.72 3.89 4.04 4.16
58 4.52 4.50 4.47 4.40 4.31 58 3.60 3.78 3.95 4.11 4.24
59 4.61 4.60 4.56 4.48 4.39 59 3.65 3.84 4.02 4.19 4.33
60 4.72 4.70 4.66 4.57 4.48 60 3.71 3.90 4.10 4.28 4.42
61 4.83 4.81 4.76 4.66 4.56 61 3.76 3.97 4.17 4.36 4.52
62 4.95 4.93 4.86 4.75 4.66 62 3.82 4.04 4.26 4.46 4.63
63 5.07 5.05 4.98 4.85 4.75 63 3.88 4.11 4.35 4.56 4.74
64 5.21 5.18 5.10 4.95 4.86 64 3.94 4.19 4.44 4.67 4.86
65 5.35 5.32 5.22 5.05 4.97 65 4.01 4.28 4.54 4.79 4.99
66 5.51 5.47 5.36 5.16 5.08 66 4.08 4.36 4.65 4.91 5.13
67 5.67 5.63 5.50 5.26 5.20 67 4.16 4.46 4.76 5.04 5.28
68 5.85 5.80 5.65 5.37 5.33 68 4.24 4.56 4.89 5.19 5.43
69 6.04 5.98 5.80 5.49 5.47 69 4.33 4.67 5.02 5.34 5.61
70 6.25 6.18 5.96 5.60 5.61 70 4.42 4.79 5.16 5.51 5.79
71 6.47 6.39 6.14 5.71 5.76 71 4.52 4.91 5.31 5.69 5.99
72 6.71 6.62 6.31 5.83 5.93 72 4.63 5.04 5.48 5.88 6.20
73 6.97 6.86 6.50 5.94 6.10 73 4.74 5.19 5.66 6.09 6.43
74 7.26 7.12 6.69 6.04 6.28 74 4.86 5.34 5.85 6.32 6.68
75 7.56 7.39 6.89 6.14 6.48 75 4.99 5.51 6.06 6.56 6.96
_________________________________________________________________________________________________________
*Adjusted age of annuitant.
_________________________________________________________________________________________________________
Table B above is based on the "1983 Individual Annuitant Mortality Table A" assuming a 3% annual effective
interest rate. Settlement rates for any age not shown above, or any combination of ages not shown above,
will be calculated on the same basis as those rates shown in the table above. Such rates will be furnished
by us upon request. Amounts shown in the Table below are based on assuming a 3% annual effective interest
rate.
_________________________________________________________________________________________________________
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
_________________________________________________________________________________________________________
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
10 $ 9.61 17 $ 6.23 24 $ 4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
_________________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 31
GROUP DEFERRED ANNUITY CONTRACT
- - Employer Plan
- - Group Deferred Annuity
- - Individual Allocation - Optional fixed dollar or variable
accumulation values and annuity payments.
- - This contract is nonparticipating. Dividends are not payable.
IDS Life Insurance Company
of New York
Box 5144
Albany, New York 12205
<PAGE>
PAGE 1
Form 38609A (5/94)
Participant Enrollment Form (for Employee Benefit Annuity)
Group Billing Number _____________
IDS Home Office Use Only
Certificate Number ___-___-___-___
Participant Information
Name ______________________________
Last First M.I.
Soc. Sec. No. ___________________
Address _________________________________________________________
City ___________________________ State _____ Zip ______
Telephone No. _____________
Date of Birth _____ Date of Hire _____
Marital Status: __ Married __ Single
Sex: __ M __ F
Purchase Payment Election
1) __ Installment Payments totalling $_____ annually. (Note:
Minimum $300/Year)
(Annual Salary $___________)
2) __ Single Payment $ ______. (Note: Minimum single payment
of $1,000)
Investment Election
I elect to invest my account in the group annuity as follows:
Fixed Amount ___%
Capital Resource Fund ___%
International Equity Fund ___%
Aggressive Growth Fund ___%
Special Income Fund ___%
Moneyshare Fund ___%
Managed Fund ___%
TOTAL: 100%
<PAGE>
PAGE 2
Beneficiary Election
If you are married, your spouse must be your beneficiary unless he
or she consents to your naming another beneficiary as described
below. Name your beneficiary below (to name more than one person
attach a separate piece of paper with the name, relationship,
address and the percentage each person should receive).
Beneficiary Name ________________ Date of Birth ________
Relationship ____________
Address __________________ City ______________ State ___ Zip_______
Employer-Sponsored Plans Only - If you are married and have named
someone other than your spouse to receive benefits, he or she must
agree to your designation of beneficiary by completing, in the
presence of a notary public, a separate form entitled "Consent to
Name Non-Spouse Beneficiary."
Signatures and Statements
Is this annuity intended to replace or change any existing life
insurance or annuities? __ Yes __ No
I acknowledge receipt of Prospectuses for the IDS Life Insurance
Company of New York Group Deferred Fixed/Variable Annuity Contract
and the Retirement Annuity Mutual Funds. I understand that all
benefits and values provided under the contract, when based on
investment experience of a separate account, are variable and are
not guaranteed as to fixed dollar amount. I understand that the
Certificate issued from this enrollment form will evidence my
participation under the master group annuity contract issued to my
employer and that such documents together with the 403(b)
Retirement Plan constitute my rights and obligations under the
Plan.
Dated at: City ________________ State _________________
Date ______________
___________________________ _____________________________
Participant's Signature Financial Planner's Signature
Complete for Employer-Sponsored 403(b) Plan
Approved By ___________________________ Date __________________
Employer Name _________________________ Contact _______________
Address _______________________________ Telephone No. _________
City ___________ State __ Zip _________
<PAGE>
PAGE 3
Tax-Sheltered Annuity (TSA) Explanation, Disclosure and
Acknowledgment
Check marks indicate that the item has been explained by the IDS
Life Insurance Company of New York planner and is fully understood
by the participating employee.
__ 1. Contributions may be allocated to purchase (a) variable
benefits only, (b) fixed benefits only, or (c) a
combination of both variable and fixed benefits.
__ 2. To the extent contributions are used to purchase variable
benefits, the value of the certificate during the years
prior to retirement, and also the amount of retirement
benefits, will vary with the investment performance of
the assets in the variable accounts and not assurance can
be made as to how many dollars will be available to the
participant.
__ 3. Information about administrative and surrender charges;
mortality and expense fees; and mutual fund management
fees have been explained.
__ 4. The main purpose of an annuity is for long-term
retirement accumulation and benefits and it should be
purchased for this purpose.
__ 5. The investments made in accordance with my elections
shall be for my exclusive benefit and are neither
assignable nor transferable.
__ 6. Under current federal income tax law, as a general rule,
payments to the annuitant/participant will be taxable
when received, as ordinary income. Payments also may be
subject to a 10% IRS early withdrawal penalty tax and 20%
federal income tax withholding. (See the prospectus for
further discussion of the tax treatment.)
__ 7. The annuity certificate benefits and provisions also may
be subject to the Employer's qualified plan rules and
provisions.
__ 8. Effective 1-1-89 a distribution from a Tax-Sheltered
Annuity (TSA) purchased under section 403(b) of the
Internal Revenue Code may be made only if the
employee/participant has:
1. attained age 59 1/2; or
2. separated from the service of the employer that purchased
the TSA; or
3. died; or
4. become disabled, as defined in Section 72(m)(7) of the
Code; or
5. encountered financial hardship within the meaning of
Section 403(b) of the Code and as defined in the
Employer's qualified plan.
<PAGE>
PAGE 4
The restriction applies to contributions of deferred salary
made after December 31, 1988, and all earnings credited to the
TSA after that date. The "hardship" exception above is
limited to the amount of contributions made and does not apply
to any earnings credited to the TSA.
The restriction does not apply to any values in the TSA as of
December 31, 1988, nor to transfers or exchanges of
certificate values within the annuity or to another registered
variable annuity contract or investment vehicle available
through the employer.
Participant's Name _______________________
(Print)
Date ___________________________
_____________________________ ______________________________
Participant's Signature Financial Planner's
Signature Signature
Financial Planner's Report
Declaration and Signature
You certify that you personally solicited this application and
witnessed its signing. The application and this report are
complete and accurate to the best of your knowledge and belief.
Are you related to the annuitant/participant? Please state
relationship. ______________________ (required)
This application __ does __ does not involve replacement of
existing insurance or annuities.
___________________________ _______________ _______________
Financial Planner's Planner I.D. Compensation %
Signature
____ (___)__________
D.O. Phone
___________________________ _______________ _______________
Joint Financial Planner's Planner I.D. Compensation %
Signature
____ (___)__________
D.O. Phone
