<PAGE>
PAGE 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 4 (File No. 33-52567) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 5 (File No. 811-3500) X
(formerly known as)
IDS LIFE OF NEW YORK ACCOUNT 4 IDS LIFE OF NEW YORK ACCOUNT 4
IDS LIFE OF NEW YORK ACCOUNT 5 IDS LIFE OF NEW YORK ACCOUNT 5
IDS LIFE OF NEW YORK ACCOUNT 6 IDS LIFE OF NEW YORK ACCOUNT 6
IDS LIFE OF NEW YORK ACCOUNT 9 IDS LIFE OF NEW YORK ACCOUNT 9
IDS LIFE OF NEW YORK ACCOUNT 10 IDS LIFE OF NEW YORK ACCOUNT 10
IDS LIFE OF NEW YORK ACCOUNT 11 IDS LIFE OF NEW YORK ACCOUNT 11
IDS LIFE OF NEW YORK ACCOUNT 12
IDS LIFE OF NEW YORK ACCOUNT 13
IDS LIFE OF NEW YORK ACCOUNT 14
(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
X on April 30, 1996 pursuant to paragraph (b) of Rule 485
60 days after filing pursuant to paragraph (a)(i) of Rule 485
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 23, 1996.<PAGE>
PAGE 2
<TABLE>
<CAPTION>
CROSS REFERENCE SHEET
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 IDS 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) Financial statements
7(a) Buying the contract and (b) Financial statements
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 IDS Life of New York
<PAGE>
PAGE 3
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>
<PAGE>
PAGE 4
IDS Life of New York Employee Benefit Annuity
Prospectus
April 30, 1996
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, 11, 12, 13 and 14
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, IDS LIFE SPECIAL INCOME FUND, IDS LIFE
MONEYSHARE FUND, IDS LIFE GROWTH DIMENSIONS FUND, IDS LIFE GLOBAL
YIELD FUND AND IDS LIFE INCOME ADVANTAGE FUND. 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 FINANCIAL INSTITUTION AND THE
SECURITIES IT OFFERS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY ANY FINANCIAL INSTITUTION NOR ARE THEY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY.
A Statement of Additional Information (SAI) dated April 30, 1996
(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.
<PAGE>
PAGE 5
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
Growth Dimensions Fund
Global Yield Fund
Income Advantage Fund
The fixed account
Buying the contract and certificate
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 certificate
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<PAGE>
PAGE 6
Changing ownership
Benefits in case of death
The annuity payout period
Annuity payout plans
Death after annuity payouts begin
Taxes
Voting rights
Substitution
Distribution of the certificates
About IDS Life of New York
Regular and special reports
Services
Table of contents of the Statement of
Additional Information
<PAGE>
PAGE 7
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 4 p.m. Eastern 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.
<PAGE>
PAGE 8
Mutual funds (funds) - Nine 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 - Nine 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 Albany 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 nine variable accounts, each of which invests in mutual funds
with a particular investment objective. The value of each
variable account varies with the performance of the
particular fund. We cannot guarantee that the value at the
retirement date will equal or exceed the total of purchase
payments allocated to the variable accounts. (p.)
<PAGE>
PAGE 9
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.)
Benefits 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.)
Certificate 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 11 certificate years old. (p.)
<PAGE>
PAGE 10
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 Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management fees .64% .86% .63% .62% .63% .54% .63% .84% .62%
Other expenses .04 .09 .04 .03 .04 .05 .05 .06 .05
Total* .68% .95% .67% .65% .67% .59% .68%** .90%** .67%**
</TABLE>
* Annualized operating expenses of underlying mutual funds at Dec.
31, 1995.
** This is a new fund, operating expenses are based on annualized
estimates of such expenses to be incurred in the current fiscal
year.
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:
<PAGE>
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<TABLE>
<CAPTION>
Aggressive International Capital Special Growth Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 year $ 101.78 $ 104.32 $ 101.68 $ 101.49 $ 101.68 $ 100.93 $ 101.78 $ 103.85 $ 101.68
3 years 147.35 155.02 147.07 146.50 147.07 144.79 147.35 153.60 147.07
5 years 184.14 197.11 183.65 182.68 183.65 179.78 184.14 194.72 183.65
10 years 249.25 277.14 248.20 246.10 248.20 239.78 249.25 272.03 248.20
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 time period:
Aggressive International Capital Special Growth Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
1 year $ 19.32 $ 22.09 $ 19.22 $ 19.01 $ 19.22 $ 18.40 $ 19.32 $ 21.58 $ 19.22
3 years 59.76 68.13 59.45 58.83 59.45 56.96 59.76 66.59 59.45
5 years 102.72 116.78 102.19 101.15 102.19 97.99 102.72 114.19 102.19
10 years 222.19 250.80 221.12 218.96 221.12 212.48 222.19 245.56 221.12
</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 .205% 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.
<TABLE>
<CAPTION>
Years ended Dec. 31,
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Account 4 (investing in shares of Capital Resource Fund)
Accumulation unit value at
beginning of year ............ $3.43 $3.43 $3.35 $3.25 $2.24 $2.25 $1.78 $1.61 $1.44 $1.33
Accumulation unit value at end
of year ...................... $4.35 $3.43 $3.43 $3.35 $3.25 $2.24 $2.25 $1.78 $1.61 $1.44
Number of accumulation units
outstanding at end of year
(000 omitted) ................ 44,849 38,283 30,089 21,677 13,591 10,058 8,345 7,347 7,342 5,640
Ratio of operating expense to
average net assets ........... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Account 101 (investing in shares of International Equity Fund)
Accumulation unit value at
beginning of period .......... $1.25 $1.29 $0.98 $1.00 - - - - - -
Accumulation unit value at end
of period .................... $1.38 $1.25 $1.29 $0.98 - - - - - -
Number of accumulation units
outstanding at end of period
(000 omitted) ................ 63,576 51,480 21,650 3,421 - - - - - -
Ratio of operating expense to
average net assets ........... 1.00% 1.00% 1.00% 1.00% - - - - - -
Account 112 (investing in shares of Aggressive Growth Fund)
Accumulation unit value at
beginning of period .......... $1.12 $1.21 $1.08 $1.00 - - - - - -
Accumulation unit value at end
of period .................... $1.47 $1.12 $1.21 $1.08 - - - - - - <PAGE>
PAGE 12
Number of accumulation units
outstanding at end of period
(000 omitted) ................ 62,233 45,347 19,430 5,961 - - - - - -
Ratio of operating expense to
average net assets ........... 1.00% 1.00% 1.00% 1.00% - - - - - -
Account 5 (investing in shares of Special Income Fund)
Accumulation unit value at
beginning of year ............ $2.91 $3.06 $2.67 $2.46 $2.12 $2.05 $1.90 $1.74 $1.74 $1.48
Accumulation unit value at end
of year ...................... $3.53 $2.91 $3.06 $2.67 $2.46 $2.12 $2.05 $1.90 $1.74 $1.74
Number of accumulation units
outstanding at end of year
(000 omitted) ................ 23,903 21,936 23,259 16,710 12,228 10,315 9,301 7,891 8,093 7,151
________________________________________________________________________________________________________________________
Ratio of operating expense to
average net assets ........... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Account 6 (investing in shares of Moneyshare Fund)
Accumulation unit value at
beginning of year ............ $1.91 $1.86 $1.83 $1.80 $1.71 $1.61 $1.49 $1.40 $1.33 $1.26
Accumulation unit value at end
of year ...................... $1.99 $1.91 $1.86 $1.83 $1.80 $1.71 $1.61 $1.49 $1.40 $1.33
Number of accumulation units
outstanding at end of year
(000 omitted) ................ 5,445 3,794 4,113 5,378 7,253 6,487 5,493 2,836 2,125 1,055
________________________________________________________________________________________________________________________
Ratio of operating expense to
average net assets ........... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Simple yield3 ................ 4.00% 4.23% 1.90% 1.77% 3.24% 6.20% 6.80% 7.30% 5.73% 4.16%
________________________________________________________________________________________________________________________
Compound yield3 .............. 4.08% 4.32% 1.92% 1.79% 3.29% 6.39% 7.03% 7.57% 5.90% 4.24%
________________________________________________________________________________________________________________________
Account 94 (Investing in shares of Managed Fund)
Accumulation unit value at
beginning of year ............ $2.09 $2.21 $1.98 $1.86 $1.45 $1.42 $1.14 $1.06 $1.01 $1.00
Accumulation unit value at end
of year ...................... $2.57 $2.09 $2.21 $1.98 $1.86 $1.45 $1.42 $1.14 $1.06 $1.01
Number of accumulation units
outstanding at end of year
(000 omitted) ................ 72,999 66,800 50,761 31,828 20,105 15,292 12,248 11,920 12,219 4,030
Ratio of operating expense to
average net assets ........... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
1Account 10 commenced operations on Jan. 13, 1992.
2Account 11 commenced operations on Jan. 13, 1992.
3Net of annual contract administrative fee and mortality and expense risk fee.
4Account 9 commenced operations on April 30, 1986.
</TABLE>
Financial statements
The SAI dated April 30, 1996, contains:
o complete audited financial statements of the variable
accounts 4, 5, 6, 9, 10 and 11* including:
- statements of net assets as of Dec. 31, 1995;
- statements of operations for the year ended Dec. 31,
1995; and
- statements of changes in net assets for the years ended
Dec. 31, 1995 and Dec. 31, 1994.
o complete audited financial statements for IDS Life of New
York including:
- balance sheets as of Dec. 31, 1995 and Dec. 31, 1994;
and
- related statements of income and cash flows for each of
the three years in the period ended Dec. 31, 1995.
<PAGE>
PAGE 13
* No financial statements are provided for variable accounts 12, 13
and 14. These accounts began operations on April 30, 1996 and
therefore did not have any assets as of Dec. 31, 1995.
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 - For accounts investing in income funds: 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 over a specified period of time (reflecting
change in an account's accumulation unit value). The calculation
assumes reinvestment of investment earnings and reflects the
deduction of all applicable charges, including the contract
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 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<PAGE>
PAGE 14
mutual funds that sell their shares directly to the public. (See
the SAI for a further description of methods used to determine
yield and total return for the accounts.)
If you would like additional information about actual performance,
contact your financial advisor.
The variable accounts
Purchase payments can be allocated to any or all of the variable
accounts that invest in shares of the following funds:
IDS Life 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
Growth Dimensions Fund 14 April 17, 1996
Global Yield Fund 12 April 17, 1996
Income Advantage Fund 13 April 17, 1996
Each variable account meets the definition of a separate account
under federal securities laws. Income, capital gains and capital
losses of each account are credited or charged to that account
alone. No variable account will be charged with liabilities of any
other account or of our general business. Each variable account's
net assets are held in relation to the contracts described in this
prospectus as well as other variable annuity contracts that we
issue that are not described in this prospectus. All obligations
arising under the contracts are general obligations of IDS Life 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. <PAGE>
PAGE 15
Capital Resource Fund
Objective: capital appreciation. Invests primarily in U.S. common
stocks and other securities convertible into common stock,
diversified over many different companies in a variety of
industries.
Managed Fund
Objective: maximum total investment return. Invests primarily in
U.S. common stocks, 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.
Growth Dimensions Fund
Objective: long-term growth of capital. Invests primarily in
common stocks of U.S. and foreign companies showing potential for
significant growth.
Global Yield Fund
Objective: high total return through income and growth of capital.
Invests primarily in a non-diversified portfolio of debt securities
of U.S. and foreign issuers.
Income Advantage Fund
Objective: high current income, with capital growth as a secondary
objective. Invests in long-term, high-yielding, high-risk debt
securities below investment grade issued by U.S. and foreign
corporations.
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
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PAGE 16
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 advisor 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 prospectus, or
from your financial advisor.
The fixed account
Purchase payments can also be allocated to the fixed account. The
cash value of the fixed account increases as interest is credited
to the account. Purchase payments and transfers to the fixed
account become part of the general account of IDS Life 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.
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PAGE 17
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.
The retirement date
Upon processing your application we will establish the retirement
date to the maximum age or date as specified below. You can also
select a date within the maximum limits. 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 "Benefits 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
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PAGE 18
Maximum first-year payment(s):
This maximum is based on the participant's age on the effective
date of the certificate.
Up to age 75 $1 million
76 to 85 $500,000
86 to 90 $50,000
Maximum payment for each subsequent year: $50,000**
**These limits apply in total to all IDS Life 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. The variable accounts pay this fee at the
time that dividends are distributed from the funds in which they
invest. Annually, the fee totals 1% of the variable accounts'
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.
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 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)
<PAGE>
PAGE 19
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 was 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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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 (including administrative charge).
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 owner bears this investment risk in a variable account.
Factors that affect variable account accumulation units
Accumulation units may change in two ways; in number and in value.
Here are the factors that influence those changes:
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PAGE 21
The number of accumulation units you own may fluctuate due to:
o additional purchase payments allocated to the variable
account(s);
o transfers into or out of the variable account(s);
o partial 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 18 5.56
March 100 17 5.88
April 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(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 September) and fewer units when the per
unit market price is high.
<PAGE>
PAGE 22
You have paid an average price of only $17.91 per unit over the 10
months, while the average market price actually was $18.10.
Dollar-cost averaging does not guarantee that any variable account
will gain in value, nor will it protect against a decline in value
if market prices fall. However, if you can continue to invest
regularly throughout changing market conditions, it can be an
effective strategy to help meet your long-term goals.
Transferring money between accounts
You may transfer money from any one account, including the fixed
account, to another before the annuity payouts begin. If we
receive your request before the close of business, we will process
it that day. Requests received after the close of business will be
processed the next business day. There is no charge for transfers.
Before making a transfer, you should consider the risks involved in
switching investments.
We may suspend or modify transfer privileges at any time. Certain
restrictions apply to transfers involving the fixed account. In
addition, any restriction imposed by the plan will apply.
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 (including
automated transfers) 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 Once annuity payouts begin, no transfers may be made to or from
the fixed account, but transfers may be made once per contract
year among the variable accounts.
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 5144
Albany, NY 12205
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PAGE 23
Express mail:
IDS Life Insurance Company of New York
20 Madison Ave. Ext.
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 certificate value)
Mail surrenders: None (up to 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. 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 to IDS Life of New York. 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.
<PAGE>
PAGE 24
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 25
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
available through the employer.
o If the contract/certificate has a loan provision, the right
to receive a loan from your fixed account continues to exist
and is described in detail in your contract/certificate and
is subject to the contract/certificate plan.
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 or any other date permitted by the Code.
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.
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PAGE 26
When paying the beneficiary, we will determine the certificate's
value at the next close of business after our death claim
requirements are fulfilled. Interest, if any, will be paid from
the date of death at a rate no less than required by law. We will
mail payment to the beneficiary within seven days after our death
claim requirements are fulfilled. (See "Taxes.")
The annuity payout period
As the participant, you have the right to decide how and to whom
annuity payouts will be made starting at the retirement date. You
may select one of the annuity payout plans outlined below or we
will mutually agree on other payout arrangements. The amount
available for payouts under the plan you select is the certificate
value on the retirement date. No surrender charges are deducted
under the payout plans listed below.
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; and
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.)
For information with respect to transfers between accounts after
annuity payouts begin, see "Transfer policies."
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.
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PAGE 27
o Plan C - Life annuity - installment refund: Monthly payouts are
made until the annuitant's death, with our guarantee that payouts
will continue for some period of time. Payouts will be made for at
least the number of months determined by dividing the amount
applied under this option by the first monthly payout, whether or
not the annuitant is living.
o Plan D - Joint and last survivor life annuity - no refund:
Monthly payouts are made to the annuitant and a joint annuitant
while both are living. If either annuitant dies, monthly payouts
continue at the full amount until the death of the surviving
annuitant. Payouts end with the death of the second annuitant.
o Plan E - Payouts for a specified period: Monthly payouts are
made for a specific payout period of 10 to 30 years chosen by the
annuitant. Payouts will be made only for the number of years
specified whether the annuitant is living or not. Depending on the
time period selected, it is foreseeable that an annuitant can
outlive the payout period selected. In addition, a 10% IRS penalty
tax could apply under this payout plan. (See "Taxes.")
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.
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.
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PAGE 28
(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;
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.
<PAGE>
PAGE 29
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 payment from which federal withholding is deducted may also
have state withholding deducted. The withholding requirements may
differ if payment is being made to a non-U.S. citizen or if the
payment is being delivered outside the United States.
Important: Our discussion of federal tax laws is based upon our
understanding of these laws as they are currently interpreted.
Federal tax laws or current interpretations of them may change.
For this reason and because tax consequences are complex and highly
individual and cannot always be anticipated, you should consult a
tax advisor 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 for
Federal income tax purposes. To that end, the provisions of the
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 the
contract and/or related certificates to reflect any clarifications
that may be needed or are appropriate to maintain such
qualification or to conform the contract and/or certificates to any
applicable changes in the tax qualification requirements. We will
send you a copy of any such amendment.
Voting rights
As 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.
<PAGE>
PAGE 30
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.
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 managers and field vice presidents 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. American
<PAGE>
PAGE 31
Express Financial Corporation 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 Ave. Ext., 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 Advisors Inc. serves individuals and
businesses through its nationwide network of more than 175 offices
and more than 7800 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.
Table of contents of the Statement of Additional Information
Performance information............................3
Calculating annuity payouts........................6
Rating agencies....................................7
Principal underwriter..............................7
Independent auditors...............................8
Mortality and expense risk charge..................8
Prospectus.........................................8
Financial statements -
IDS Life of New York Accounts
4, 5, 6, 9, 10 and 11........................9
IDS Life Insurance Company of New York.......17
___________________________________________________________________
<PAGE>
PAGE 32
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 33
STATEMENT OF ADDITIONAL INFORMATION
for
EMPLOYEE BENEFIT ANNUITY
IDS LIFE OF NEW YORK ACCOUNTS 4, 5, 6, 9, 10, 11, 12, 13 and 14
April 30, 1996
IDS Life of New York Accounts 4, 5, 6, 9, 10, 11, 12, 13 and 14 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 April 30, 1996, is
not a prospectus. It should be read together with the Accounts'
prospectus, dated April 30, 1996, 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
<PAGE>
PAGE 34
TABLE OF CONTENTS
Performance Information.......................................p. 3
Calculating Annuity Payouts...................................p. 6
Rating Agencies...............................................p. 7
Principal Underwriter.........................................p. 7
Independent Auditors..........................................p. 8
Mortality and Expense Risk Fee... ............................p. 8
Prospectus....................................................p. 8
Financial Statements
- IDS Life of New York Accounts 4, 5, 6, 9, 10 and 11....p. 9
- IDS Life Insurance Company of New York.................p. 17
<PAGE>
PAGE 35
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 certificate charges, including the annual
administrative charge and the mortality and expense risk fee.) The
net change in the account value is divided by the value of the
account at the beginning of the period to obtain the return for the
period. That return is then multiplied by 365/7 to obtain an
annualized figure. The value of the hypothetical account includes
the amount of any declared dividends, the value of any shares
purchased with any dividend paid during the period and any
dividends declared for such shares. The variable account's
(account) yield does not include any realized or unrealized gains
or losses, nor does it include the effect of any applicable
surrender charge.
The account calculates its compound yield according to the
following formula:
Compound Yield = [(return for seven-day period +1)365/7 ] - 1
On Dec. 31, 1995, the account's annualized simple yield was 4.00%
and its compound yield was 4.08%.
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 variable 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 accounts investing in income funds
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 36
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, 1995, the annualized yield for account 5 was 8.42%.
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
administrative charge and mortality and expense risk fee.
Performance figures will be shown with the deduction of the
applicable surrender charge; in addition, performance figures 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.
The following performance figures are calculated on the basis of
historical performance of the funds.
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PAGE 37
Average Annual Total Return For Period Ended: Dec. 31, 1995
<TABLE>
<CAPTION>
Average Annual Total Return with Surrender
Since
Account investing in: 1 Year 5 Year 10 Year Inception
<S> <C> <C> <C> <C>
IDS Life
Aggressive Growth Fund (1/92)* 23.31 --% --% 8.74%
Capital Resource Fund (10/81) 19.45 13.21 12.40 --
International Equity Fund (1/92) 3.34 -- -- 6.99
Managed Fund (4/86) 15.83 10.97 -- 10.12
Moneyshare Fund (10/81) -2.65 1.75 4.55 --
Special Income Fund (10/81) 13.57 9.58 8.88 --
Average Annual Total Return without Surrender
Since
Account Investing in: 1 Year 5 Year 10 Year Inception
IDS Life
Aggressive Growth Fund (1/92) 30.31% --% --% 10.09%
Capital Resource Fund (10/81) 26.45 14.05 12.40 --
International Equity Fund (1/92) 10.34 -- -- 8.41
Managed Fund (4/86) 22.83 11.88 -- 10.12
Moneyshare Fund (10/81) 4.35 3.02 4.55 --
Special Income Fund (10/81) 20.57 10.53 8.88 --
* inception dates of the funds are shown in parentheses
</TABLE>
Aggregate total return
Aggregate total return represents the cumulative change in the
value of an investment over a specified period of time (reflecting
change in an account's accumulation unit value) and is computed by
the following formula:
ERV - P
P
where: P = a hypothetical initial payment of $1,000.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five, or
ten year (or other) period at the end of the one,
five, or ten year (or other) period (or fractional
portion thereof).
Performance of the accounts may be quoted or compared to rankings,
yields, or returns as published or prepared by independent rating
or statistical services or publishers or publications such as The
Bank Rate Monitor National Index, Barron's, Business Week,
Donoghue's Money Market Fund Report, Financial Services Week,
Financial Times, Financial World, Forbes, Fortune, Global Investor,
Institutional Investor, Investor's Daily, Kiplinger's Personal
Finance, Lipper Analytical Services, Money, Mutual Fund Forecaster,
Newsweek, The New York Times, Personal Investor, Stanger Report,
Sylvia Porter's Personal Finance, USA Today, U.S. News and World
Report, The Wall Street Journal and Wiesenberger Investment
Companies Service.
<PAGE>
PAGE 38
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.
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 3.5% 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
<PAGE>
PAGE 39
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the net investment factor may be greater or less than
one, and the accumulation unit value may increase or decrease. You
bear this investment risk in a variable account.
The Fixed Account
Your fixed annuity payout amounts are guaranteed. Once calculated,
your payout will remain the same and never change. To calculate
your annuity payouts we:
o take the value of your fixed account at the retirement date or
the date you have selected to begin receiving your annuity payouts;
then
o using an annuity 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 1995, 1994
and 1993, aggregated $464,724, $269,275, and $151,536,
respectively. Commissions paid by IDS Life of New York for 1995,
<PAGE>
PAGE 40
1994 and 1993, aggregated $681,615, $1,130,352, and $1,244,668,
respectively. The surrender charges were applied toward payment of
commissions.
INDEPENDENT AUDITORS
The financial statements of IDS Life of New York Accounts 4, 10,
11, 5, 6 and 9 including the statements of net assets as of
December 31, 1995, and the related statements of operations for the
year then ended and the related statements of changes in net assets
for each of the two years in the period then ended, and the
financial statements of IDS Life Insurance Company of New York as
of December 31, 1995 and for each of the three years in the period
then ended, appearing in this SAI, have been audited by Ernst &
Young LLP, independent auditors, as stated in their reports
appearing herein.
MORTALITY AND EXPENSE RISK FEE
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 April 30, 1996, is hereby incorporated in this
Statement of Additional Information by reference.
<PAGE>
PAGE 41
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6 and 9
Statements of Net Assets Dec. 31, 1995
Combined
Segregated Asset Account Variable
Assets 4 10 11 5 6 9 Annuity
<S> <C> <C> <C> <C> <C> <C> <C>
Investments in shares of mutual funds at market value:
IDS Life Capital Resource
Fund - 7,550,825 shares
at net asset value of
$25.85 per share
(cost $177,252,519).... $195,196,040 $ -- $ -- $ -- $ -- $ -- $195,196,040
IDS Life International
Equity Fund - 6,721,556
shares at net asset value
of $13.05 per share
(cost $80,992,055)..... -- 87,722,622 -- -- -- -- 87,722,622
IDS Life Aggressive Growth
Fund - 6,067,827 shares at
net asset value of
$15.05 per share
(cost $71,223,473)..... -- -- 91,307,459 -- -- -- 91,307,459
IDS Life Special Income
Fund, Inc. - 7,032,180
shares at net asset value
of $12.01 per share
(cost $79,523,027)..... -- -- -- 84,481,134 -- -- 84,481,134
IDS Life Moneyshare
Fund, Inc. -10,868,389
shares at net asset
value of $1.00 per share
(cost $10,865,043)...... -- -- -- -- 10,867,497 -- 10,867,497
IDS Life Managed Fund, Inc.
Fund, Inc. - 11,998,103
shares at net asset value
of $15.67 per share
(cost $160,854,294).... -- -- -- -- -- 188,047,349 188,047,349
195,196,040 87,722,622 91,307,459 84,481,134 10,867,497 188,047,349 657,622,101
Dividends receivable... -- -- -- 482,721 44,692 -- 527,413
Accounts receivable from
IDS Life of New York for
contract purchase
payments............... 168,888 129,969 127,133 103,087 3,893 102,881 635,851
Receivable from mutual funds
for share redemptions.. -- -- -- 217 80,603 322 81,142
Total assets........... 195,364,928 87,852,591 91,434,592 85,067,159 10,996,685 188,150,552 658,866,507
Liabilities
Payable to IDS Life of New York for:
Mortality and expense
risk fee............... 153,969 69,073 71,756 66,597 8,527 148,158 518,080
Contract terminations.. -- -- -- 217 80,603 322 81,142
Payable to mutual funds
for investments
purchased.............. 168,888 129,969 127,133 519,212 40,059 102,881 1,088,142
Total liabilities...... 322,857 199,042 198,889 586,026 129,189 251,361 1,687,364
Net assets applicable to
contracts in accumulation
period................. 194,933,490 87,667,101 91,222,549 84,329,024 10,821,929 187,324,102 656,298,195
Net assets applicable to
contracts in payment
period................. 108,581 (13,552) 13,154 152,109 45,567 575,089 880,948
Total net assets....... $195,042,071 $87,653,549 $91,235,703 $84,481,133 $10,867,496 $187,899,191 $657,179,143
Accumulation units
outstanding............ 44,849,219 63,576,047 62,233,323 23,903,081 5,445,411 72,999,139
Net asset value per
accumulation unit...... $ 4.35 $ 1.38 $ 1.47 $ 3.53 $ 1.99 $ 2.57
See accompanying notes to financial statements.
<PAGE>
PAGE 42
IDS Life of New York Accounts 4, 10, 11, 5, 6, and 9
Statements of Operations Year ended Dec. 31, 1995
Combined
Segregated Asset Account Variable
Investment Income 4 10 11 5 6 9 Annuity
Dividend income from
mutual funds.......... $ 19,873,457 $ 1,711,697 $ 537,119 $ 5,806,165 $ 464,411 $ 4,528,920 $32,921,769
Mortality and expense
risk fee (Note 3)..... 1,677,094 738,045 730,927 732,967 86,870 1,675,207 5,641,110
Investment income
(loss) -- net......... 18,196,363 973,652 (193,808) 5,073,198 377,541 2,853,713 27,280,659
Realized and Unrealized Gain (Loss) on Investments -- net
Realized gain on sales of
investments in mutual funds:
Proceeds from sales... 1,150,991 3,217,344 544,376 3,752,529 6,351,309 2,659,573 17,676,122
Cost of investments
sold.................. 1,063,205 3,274,425 456,847 3,824,927 6,353,758 2,512,900 17,486,062
Net realized gain (loss) on
investments........... 87,786 (57,081) 87,529 (72,398) (2,449) 146,673 190,060
Net change in unrealized
appreciation or depreciation
of investments........ 19,556,680 6,954,573 18,746,495 8,858,427 2,447 30,533,716 84,652,338
Net gain (loss) on
investments........... 19,644,466 6,897,492 18,834,024 8,786,029 (2) 30,680,389 84,842,398
Net increase
from operations....... $ 37,840,829 $ 7,871,144 $18,640,216 $13,859,227 $ 377,539 $ 33,534,102 $112,123,057
See accompanying notes to financial statements.
<PAGE>
PAGE 43
IDS Life of New York Accounts 4, 10, 11, 5, 6 and 9
Statements of Changes in Net Assets Year ended Dec. 31, 1995
Combined
Segregated Asset Account Variable
Operations 4 10 11 5 6 9 Annuity
Investment income
(loss) - net....... $ 18,196,363 $ 973,652 $ (193,808) $ 5,073,198 $ 377,541 $ 2,853,713 $ 27,280,659
Net realized gain
(loss) on
investments........ 87,786 (57,081) 87,529 (72,398) (2,449) 146,673 190,060
Net change in
unrealized appreciation
or depreciation
of investments..... 19,556,680 6,954,573 18,746,495 8,858,427 2,447 30,533,716 84,652,338
Net increase
from operations.... 37,840,829 7,871,144 18,640,216 13,859,227 377,539 33,534,102 112,123,057
Contract Transactions
Variable annuity contract
purchase payments.. 17,774,286 9,647,212 9,970,694 8,824,370 5,766,036 13,779,392 65,761,990
Net transfers*..... 15,429,827 8,077,120 13,841,579 1,677,378 (1,624,726) 7,758,872 45,160,050
Loan repayments.... 119,341 49,312 56,943 43,465 7,715 108,253 385,029
Annuity payments (7,054) (904) (66) (4,097) -- (24,947) (37,068)
Contract charges
(Note 3)........... (175,972) (79,384) (74,786) (68,007) (6,429) (172,302) (576,880)
Contract terminations:
Surrender benefits. (6,815,254) (2,029,739) (2,019,720) (3,336,084) (842,323) (5,674,574) (20,717,694)
Death benefits..... (568,783) (274,425) (139,773) (421,430) (41,803) (876,643) (2,322,857)
Increase from contract
transactions....... 25,756,391 15,389,192 21,634,871 6,715,595 3,258,470 14,898,051 87,652,570
Net assets at beginning
of period.......... 131,444,851 64,393,213 50,960,616 63,906,311 7,231,487 139,467,038 457,403,516
Net assets at end
of period.......... $195,042,071 $87,653,549 $91,235,703 $84,481,133 $10,867,496 $187,899,191 $657,179,143
Accumulation Unit Activity
Units outstanding at
beginning of
period............. 38,283,499 51,479,988 45,346,878 21,935,625 3,793,729 66,799,845
Contract purchase
payments........... 4,595,175 7,739,246 7,846,624 2,737,871 2,946,331 5,995,376
Net transfers*..... 3,917,622 6,358,941 10,791,998 486,490 (838,659) 3,316,169
Transfers for
policy loans....... 30,100 38,541 44,002 13,690 3,922 46,329
Contract charges... (45,603) (62,946) (57,886) (21,461) (3,415) (74,760)
Contract terminations:
Surrender benefits. (1,784,376) (1,746,253) (1,636,852) (1,108,257) (435,104) (2,679,553)
Death benefits..... (147,198) (231,470) (101,441) (140,877) (21,393) (404,267)
Units outstanding at
end of period....... 44,849,219 63,576,047 62,233,323 23,903,081 5,445,411 72,999,139
*Includes transfer activity from (to) other Accounts and transfers (from) to IDS Life for conversion from (to) Fixed Account.
See accompanying notes to financial statements.
<PAGE>
PAGE 44
IDS Life of New York Accounts 4, 10, 11, 5, 6 and 9
Statements of Changes in Net Assets Year ended Dec. 31, 1994
Combined
Segregated Asset Account Variable
Operations 4 10 11 5 6 9 Annuity
Investment income
(loss) - net....... $ 13,240,239 $ 1,250,952 $ (296,789) $ 4,743,798 $ 217,760 $ 7,081,656 $ 26,237,616
Net realized gain
(loss) on
investments........ 41,219 1,724 (4,251) (136,032) (21) 12,662 (84,699)
Net change in
unrealized appreciation
or depreciation
of investments..... (12,937,247) (3,394,978) (1,571,685) (8,197,603) (8) (14,289,852) (40,391,393)
Net increase (decrease)
from operations.... 344,211 (2,142,302) (1,872,725) (3,589,837) 217,731 (7,195,534) (14,238,476)
Contract Transactions
Variable annuity contract
purchase payments.. 18,920,075 17,412,099 13,231,024 12,729,002 5,008,226 24,260,004 91,560,430
Net transfers*..... 13,441,550 22,198,315 16,626,302 (13,515,187) (4,575,639) 14,090,849 48,266,190
Loan repayments.... 109,900 29,851 30,606 48,227 9,397 111,952 339,933
Annuity payments (4,700) -- -- -- -- (11,820) (15,897)
Contract charges
(Note 3)........... (149,334) (57,760) (46,731) (71,099) (6,935) (154,009) (485,868)
Contract terminations:
Surrender benefits. (3,806,292) (716,854) (466,670) (2,426,200) (1,029,901) (2,943,745) (11,389,662)
Death benefits..... (514,092) (169,388) (82,471) (521,284) (23,829) (648,725) (1,959,789)
Increase (decrease)
from contract
transactions....... 27,997,730 38,696,263 29,292,060 (3,756,541) (618,681) 34,704,506 126,315,334
Net assets at beginning
of period.......... 103,102,910 27,839,252 23,541,281 71,252,709 7,632,437 111,958,066 345,326,655
Net assets at end
of period.......... $131,444,851 $64,393,213 $50,960,616 $63,906,331 $7,231,487 $139,467,038 $457,403,516
Accumulation Unit Activity
Units outstanding at
beginning of
period............. 30,089,286 21,650,329 19,430,140 23,259,461 4,113,215 50,761,194
Contract purchase
payments........... 5,550,328 13,493,341 11,706,736 4,301,276 2,690,867 11,309,731
Net transfers*..... 3,925,993 17,068,799 14,750,027 (4,563,976) (2,421,933) 6,450,489
Transfers for
policy loans....... 31,960 23,044 27,321 16,366 4,923 52,360
Contract charges... (44,486) (45,188) (42,134) (24,217) (3,807) (73,063)
Contract terminations:
Surrender benefits. (1,110,107) (583,594) (449,677) (869,164) (576,903) (1,393,669)
Death benefits..... (159,475) (126,743) (75,535) (184,121) (12,633) (307,197)
Units outstanding at
end of period....... 38,283,499 51,479,988 45,346,878 21,935,625 3,793,729 66,799,845
*Includes transfer activity from (to) other Accounts and transfers (from) to IDS Life for conversion from (to) Fixed Account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 45
IDS Life of New York Accounts 4, 10, 11, 5, 6 and 9
Notes to Financial Statements
___________________________________________________________________
1. Organization
IDS Life of New York Accounts 4, 10, 11, 5, 6 and 9 were
established as segregated asset accounts of IDS Life Insurance
Company of New York (IDS Life of New York) under New York law
and are registered collectively as a single unit investment
trust under the Investment Company Act of 1940. Accounts 4, 5
and 6 were established on Nov. 12, 1981. Account 9 was
established on Feb. 12, 1986 and commenced operations on April
30, 1986. Accounts 10 and 11 were established on Oct. 8, 1991
and commenced operations on Jan. 13, 1992. IDS Life of New
York Accounts 4, 10, 11, 5, 6 and 9 are collectively referred
to as "the Accounts."
The assets of each Account are held for the exclusive benefit
of the Retirement Annuity contract owners and are not
chargeable with liabilities arising out of the business
conducted by any other Account or by IDS Life of New York.
Contract owners allocate their variable purchase payments to
one or more of the six segregated asset accounts. Such funds
are then invested in shares of six mutual funds organized by
IDS Life Insurance Company (IDS Life) as the investment
vehicles for variable annuity contracts issued by IDS Life of
New York and by IDS Life.
All of the mutual funds, except IDS Life Managed Fund, Inc.,
commenced operations on Oct. 13, 1981. IDS Life Managed Fund,
Inc. commenced operations on April 30, 1986. These mutual
funds are registered under the Investment Company Act of 1940
as diversified, open-end management investment companies.
Funds allocated to IDS Life of New York Account 4 are invested
in the shares of IDS Life Capital Resource Fund; IDS Life of
New York Account 10 invests in the shares of IDS Life
International Equity Fund; IDS Life of New York Account 11
invests in the shares of IDS Life Aggressive Growth Fund; IDS
Life of New York Account 5 invests in the shares of IDS Life
Special Income Fund, Inc.; IDS Life of New York Account 6
invests in the shares of IDS Life Moneyshare Fund, Inc. and
IDS Life of New York Account 9 invests in the shares of IDS
Life Managed Fund, Inc.
IDS Life, parent company of IDS Life of New York, serves as
manager, investment adviser and underwriter for the underlying
six mutual funds. American Express Financial Advisors Inc., an
affiliated company, is the principal underwriter for the
Accounts. IDS Life of New York serves as issuer for the
Accounts.
<PAGE>
PAGE 46
___________________________________________________________________
2. Summary of Significant Accounting Policies
Investments in Mutual Funds
Investments in shares of the mutual funds are stated at market
value, which is the net asset value per share as determined by
the respective mutual funds.
Investment transactions are accounted for on the date the
shares are purchased and sold. The cost of investments sold
and redeemed is determined on the average cost method.
Dividend distributions received from the mutual funds are
reinvested, net of any expenses payable to IDS Life of New York, in
additional shares of the mutual funds and are recorded as income by
the Accounts on the ex-dividend date. Unrealized appreciation or
depreciation of investments in the accompanying financial
statements represents the Accounts' share of the mutual funds'
undistributed net investment income, undistributed realized
gain or loss and the unrealized appreciation or depreciation
on their investment securities.
Federal Income Taxes
IDS Life of New York is taxed as a life insurance company.
The Accounts are treated as part of IDS Life of New York for
federal income tax purposes. Under existing tax law, no
income taxes are payable with respect to any income of the
Accounts.
___________________________________________________________________
3. Mortality and Expense Risk Fee and Administrative Charges
IDS Life of New York makes contractual assurances to the
Accounts that possible future adverse changes in contract
expenses and mortality experience of the annuitants and
beneficiaries will not affect the Accounts. The mortality and
expense risk fee paid to IDS Life of New York is computed
daily and is equal, on an annual basis, to 1 percent of the
average daily net assets of the Accounts.
An annual charge of $20 is deducted from the contract value of
each Variable Retirement Annuity contract. An annual charge
of $30 is deducted from the contract value of each Combination
Retirement Annuity contract. An annual charge of $30 is
deducted from the certificate value of each Employee Benefit
Annuity Certificate. A quarterly charge of $6 is deducted
from the contract value of each Flexible Annuity contract.
The annual charges are deducted at contract year end and the
quarterly charges are deducted at contract quarter end, during
the accumulation period, for administrative services provided
to the Accounts by IDS Life of New York.
A contingent deferred sales charge (surrender charge) will be
imposed upon:
a) certain Variable Retirement Annuity contract surrenders during
the first seven years,<PAGE>
PAGE 47
___________________________________________________________________
3. Mortality and Expense Risk Fee and Administrative Charges
(continued)
b) Combination Retirement Annuity contract surrenders during the
first eleven years,
c) Employee Benefit Annuity Certificate surrenders during the first
eleven years, and
d) Flexible Annuity contract surrenders of amounts other than those
representing earnings or those representing purchase payments
more than six years old.
Charges by IDS Life of New York for surrenders are not available on
an individual segregated asset account basis. Charges for all
segregated asset accounts amounted to $464,724 in 1995 and $269,275
in 1994. Such charges are not an expense of the Accounts. They are
deducted from contract surrender benefits paid by IDS Life of New
York.
___________________________________________________________________
4. Investment Transactions
The Accounts' purchases of mutual fund shares (net of charges),
including reinvestment of dividend distributions, were as follows:
<TABLE>
<CAPTION>
Year Ended Dec. 31,
Account Investment 1995 1994
<C> <C> <C> <C>
4 IDS Life Capital Resource Fund........ $ 45,150,464 $ 42,073,838
10 IDS Life International Equity Fund.... 19,597,217 40,017,816
11 IDS Life Aggressive Growth Fund....... 22,015,912 29,510,159
5 IDS Life Special Income Fund, Inc..... 15,921,102 10,653,876
6 IDS Life Moneyshare Fund, Inc......... 9,987,321 7,096,008
9 IDS Life Managed Fund, Inc............ 20,445,428 43,041,591
$133,117,444 $172,393,288
</TABLE>
___________________________________________________________________
5. Annuity Contracts in Payment Period
Net assets and annuity units relating to contracts in the payment
period as of Dec. 31, 1995 are as follows:
<TABLE>
<CAPTION>
4 10 11 5 6 9
<S> <C> <C> <C> <C> <C> <C>
Net assets applicable
to contracts in payment
period................. $108,581 $(13,552) $13,154 $152,109 $45,567 $575,089
Annuity units in
payment period......... 501 118 11 574 - 3,482
</TABLE>
<PAGE>
PAGE 48
IDS Life of New York Accounts 4, 10, 11, 5, 6 and 9
Annual Financial Information
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the accompanying individual and combined statements
of net assets of IDS Life of New York Accounts 4, 10, 11, 5, 6 and
9 as of December 31, 1995, and the related statements of operations
for the year then ended, and the statements of changes in net
assets for each of the two years in the period then ended. These
financial statements are the responsibility of the management of
IDS Life Insurance Company of New York. Our responsibility is to
express an opinion on these financial statements based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned at December 31, 1995 with the
affiliated mutual fund manager. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the individual and combined
financial position of IDS Life of New York Accounts 4, 10, 11, 5, 6
and 9 at December 31, 1995, and the individual and combined results
of their operations and changes in their net assets for the periods
described above, in conformity with generally accepted accounting
principles.
ERNST & YOUNG LLP
Minneapolis, Minnesota
March 15, 1996
<PAGE>
PAGE 49
IDS Life of New York Financial Information
The financial statements shown below are those of the insurance
company and not those of any other entity. They are included in
the prospectus for the purpose of informing investors as to the
financial condition of the insurance company and its ability to
carry out its obligations under its variable contracts.
<TABLE>
<CAPTION>
IDS Life Insurance Company of New York
Balance Sheets Dec. 31, 1995 Dec. 31, 1994
Assets (thousands)
<S> <C> <C>
Investments:
Fixed maturities:
Held to maturity, at amortized cost
(Fair value: 1995, $683,147; 1994, $653,080) $ 642,580 $ 686,483
Available for sale, at fair value
(Amortized cost: 1995, $577,068;
1994, $474,599) 601,298 455,103
1,243,878 1,141,586
Mortgage loans on real estate
(Fair value: 1995, $168,194; 1994, $157,085) 158,730 164,916
Policy loans 18,035 14,899
Other investments 1,915 1,524
Total investments 1,422,558 1,322,925
Cash and cash equivalents -- 5,262
Accrued investment income 22,572 21,517
Deferred policy acquisition costs 109,800 100,078
Other assets 2,108 1,584
Separate account assets 724,212 506,208
Total assets $2,281,250 $1,957,574
Liabilities and Stockholder's Equity
Liabilities:
Fixed annuities - future policy benefits $1,109,167 $1,087,367
Universal life-type insurance - future
policy benefits 136,475 127,871
Traditional life, disability income and
long-term care insurance - future policy
benefits 42,477 40,546
Policy claims and other policyholders' funds 3,644 3,217
Deferred income taxes 15,663 2,044
Amounts due to brokers 10,000 --
Other liabilities 21,029 18,600
Separate account liabilities 724,212 506,208
Total liabilities 2,062,667 1,785,853
Stockholder's equity:
Capital stock, $10 par value per share; 200,000
shares authorized, issued and outstanding 2,000 2,000
Additional paid-in capital 49,000 49,000
Net unrealized gain (loss) on investments 15,341 (12,369)
Retained earnings 152,242 133,090
Total stockholder's equity 218,583 171,721
Total liabilities and stockholder's equity $2,281,250 $1,957,574
Commitments and contingencies (Note 7)
See accompanying notes.
</TABLE>
<PAGE>
PAGE 50
<TABLE>
<CAPTION>
____________________________________________________________________________
Statements of Income Years ended Dec. 31,
1995 1994 1993
(thousands)
____________________________________________________________________________
<S> <C> <C> <C>
Revenues:
Traditional life, disability income and
long-term care insurance premiums $ 9,280 $ 7,846 $ 7,110
Policyholder and contractholder charges 13,216 11,607 9,634
Mortality and expense risk fees 6,213 4,562 2,904
Net investment income 110,924 108,143 110,147
Net realized gain on investments 1,548 957 1,334
Total revenues 141,181 133,115 131,129
Benefits and expenses:
Death and other benefits - traditional
life, disability income and long-term
care insurance 3,354 6,016 5,715
Death and other benefits - universal
life-type insurance and investment contracts 4,548 3,773 2,465
Increase (decrease) in liabilities for future
policy benefits for traditional life,
disability income and long-term care insurance 1,958 506 (1,343)
Interest credited on universal life-type
insurance and investment contracts 68,630 65,018 68,987
Amortization of deferred policy
acquisition costs 13,085 12,994 10,434
Other insurance and operating expenses 7,474 8,359 7,652
Total benefits and expenses 99,049 96,666 93,910
Income before income taxes 42,132 36,449 37,219
Income taxes 14,745 12,794 13,335
Net income $ 27,387 $ 23,655 $ 23,884
See accompanying notes.
<PAGE>
PAGE 51
__________________________________________________________________________
Statements of Cash Flows Years ended Dec. 31,
1995 1994 1993
(thousands)
Cash flows from operating activities:
Net income $ 27,387 $ 23,655 $ 23,884
Adjustments to reconcile net income to net
cash provided by operating activities:
Issuance - policy loans, excluding
universal life-type insurance (2,093) (1,365) (1,044)
Repayment - policy loans, excluding
universal life-type insurance 881 849 455
Change in accrued investment income (1,055) (175) (1,476)
Change in deferred policy acquisition
costs, net (11,017) (11,522) (10,622)
Change in liabilities for future policy
benefits for traditional life, disability
income and long-term care insurance 1,931 501 (939)
Change in policy claims and other
policyholders' funds 427 870 282
Change in deferred income taxes (1,301) (4,321) (449)
Change in other liabilities 2,429 (1,711) 4,348
Amortization of premium (accretion
of discount), net (480) 2,464 (1,598)
Net realized gain on investments (1,548) (957) (1,334)
Premiums related to universal life-type
insurance 21,694 19,522 15,141
Surrenders and death benefits related to
universal life-type insurance (13,164) (13,208) (9,785)
Interest credited to account balances related
to universal life-type insurance 7,036 6,640 6,892
Policyholder and contractholder
charges, non-cash (6,962) (6,000) (5,663)
Other, net (508) 689 (780)
Net cash provided by operating activities $ 23,657 $ 15,931 $ 17,312
Cash flows from investing activities:
Fixed maturities held to maturity:
Purchases $(37,540) $(36,560) $ --
Maturities, sinking fund payments and calls 34,216 78,757 --
Sales 28,905 2,649 --
Fixed maturities available for sale:
Purchases (133,503) (117,965) --
Maturities, sinking fund payments and calls 44,234 70,316 --
Sales 8,839 14,533 --
Investment securities:
Purchases -- -- (331,900)
Maturities, sinking fund payments and calls -- -- 265,059
Sales -- -- 28,519
Other investments, excluding policy loans:
Purchases (1,939) (47,353) (65,202)
Sales 5,993 2,975 2,568
Change in amounts due to brokers 10,000 (4,952) (10,448)
Net cash used in investing activities (40,795) (37,600) (111,404)
Cash flows from financing activities:
Activity related to investment contracts:
Considerations received 137,737 168,947 149,269
Surrenders and death benefits (177,531) (198,963) (119,158)
Interest credited to account balances 61,594 58,378 62,250
Issuance - policy loans, universal life-type
insurance (4,870) (3,907) (3,403)
Repayment - policy loans, universal life-type
insurance 2,946 2,476 1,886
Cash dividend to parent (8,000) -- --
Net cash provided by financing activities 11,876 26,931 90,844
Net (decrease) increase in cash and cash
equivalents (5,262) 5,262 (3,248)
Cash and cash equivalents at beginning
of year 5,262 - 3,248
Cash and cash equivalents at end of year $ -- $ 5,262 $ --
See accompanying notes.
</TABLE>
<PAGE>
PAGE 52
IDS Life Insurance Company of New York
Notes to Financial Statements ($ thousands)
1. Summary of significant accounting policies
Nature of business
IDS Life Insurance Company of New York (the Company) is engaged in
the insurance and annuity business in the state of New York. The
Company's principal products are deferred annuities and universal
life insurance which are issued primarily to individuals. It
offers single premium and annual premium deferred annuities on both
a fixed and variable dollar basis. Immediate annuities are offered
as well. The Company's insurance products include universal life
(fixed and variable), whole life, single premium life and term
products (including waiver of premium and accidental death
benefits). The Company also markets disability income and long-
term care insurance.
The Company's principal annuity product in terms of amount in force
is the fixed deferred annuity. The annuity contract guarantees a
minimum interest rate during the accumulation period (the time
before annuity payments begin), although the Company normally pays
a higher rate reflective of current market rates. The fixed
annuity provides for a surrender charge during the first seven to
ten years after a purchase payment is made. The Company has also
adopted a practice whereby the higher current rate is guaranteed
for a specified period. The Company also offers a variable annuity
product under the name Flexible Annuity. This is a fixed/variable
annuity offering the purchasers a choice among mutual funds with
portfolios of equities, bonds, managed assets and/or short-term
securities, and the Company's general account, as the underlying
investment vehicles. With respect to funds applied to the variable
portion of the annuity, the purchaser, rather than the Company,
assumes the investment risks and receives the rewards inherent in
the ownership of the underlying investment. The Flexible Annuity
provides for a surrender charge during the first six years after a
purchase payment is made.
The Company's principal insurance product is the flexible-premium,
adjustable-benefit universal life insurance policy. In this type
of insurance policy, each premium payment accumulates interest in a
cash value account. The policyholder has access to the cash
surrender value in whole or in part after the first year. The size
of the cash value of the fund can also be controlled by the
policyholder by increasing or decreasing premiums, subject only to
maintaining a required minimum to keep the policy in force.
Monthly deductions from the cash value of the policy are made for
the cost of insurance, expense charges and any policy riders.
Basis of presentation
The Company is a wholly owned subsidiary of IDS Life Insurance
Company (IDS Life), which is a wholly owned subsidiary of American
Express Financial Corporation, which is a wholly owned subsidiary
of American Express Company. The accompanying financial
statements have been prepared in conformity with generally accepted
<PAGE>
PAGE 53
1. Summary of significant accounting policies (continued)
accounting principles which vary in certain respects from reporting
practices prescribed or permitted by the New York Department of
Insurance as reconciled in Note 11.
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Investments
Fixed maturities that the Company has both the positive intent and
the ability to hold to maturity are classified as held to maturity
and carried at amortized cost. All other fixed maturities and all
marketable equity securities are classified as available for sale
and carried at fair value. Unrealized gains and losses on
securities classified as available for sale are carried as a
separate component of stockholder's equity.
Management determines the appropriate classification of fixed
maturities at the time of purchase and reevaluates the
classification at each balance sheet date.
Mortgage loans on real estate are carried principally at the unpaid
principal balances of the related loans. Policy loans are carried
at the aggregate of the unpaid loan balances which do not exceed
the cash surrender values of the related policies. Other
investments include interest rate caps and equity securities. When
evidence indicates a decline in the underlying value or earning
power of individual investments which is other than temporary such
investments are written down to fair value by a charge to income.
Equity securities are carried at market value and the related net
unrealized appreciation or depreciation is reported as a credit or
charge to stockholder's equity.
Realized investment gain or loss is determined on an identified
cost basis.
Prepayments are anticipated on certain investments in mortgage-
backed securities in determining the constant effective yield used
to recognize interest income. Prepayment estimates are based on
information received from brokers who deal in mortgage-backed
securities.
Statements of cash flows
The Company considers investments with a maturity at the date of
their acquisition of three months or less to be cash equivalents.
These securities are carried principally at amortized cost which
approximates fair value.
<PAGE>
PAGE 54
1. Summary of significant accounting policies (continued)
Supplementary information to the statements of cash flows for the
years ended Dec. 31 is summarized as follows:
1995 1994 1993
Cash paid during the year for:
Income taxes $15,026 $17,386 $14,138
Interest on borrowings 742 147 235
Recognition of profits on fixed annuity contracts and insurance
policies
The Company issues single premium deferred annuity contracts that
provide for a service fee (surrender charge) at annually decreasing
rates upon withdrawal of the annuity accumulation value by the
contract owner. No sales fee is deducted from the contract
considerations received on these contracts ("no load" annuities).
All of the Company's single premium deferred annuity contracts
provide for crediting the contract owners' accumulations at
specified rates of interest. Such rates are revised by the Company
from time to time based on changes in the market investment yield
rates for fixed-income securities.
Profits on single premium deferred annuities and installment
annuities are recognized by the Company over the lives of the
contracts and represent the excess of investment income earned from
investment of contract considerations over interest credited to
contract owners and other expenses.
The retrospective deposit method is used in accounting for
universal life-type insurance. This method recognizes profits over
the lives of the policies in proportion to the estimated gross
profits expected to be realized.
Premiums on traditional life, disability income and long-term care
insurance policies are recognized as revenue when collected or due,
and related benefits and expenses are associated with premium
revenue in a manner that results in recognition of profits over the
lives of the insurance policies. This association is accomplished
by means of the provision for future policy benefits and the
deferral and subsequent amortization of policy acquisition costs.
Deferred policy acquisition costs
The costs of acquiring new business, principally sales
compensation, policy issue costs, underwriting and certain sales
expenses, have been deferred on insurance and annuity contracts.
The deferred acquisition costs for single premium deferred
annuities and installment annuities are amortized based upon
surrender charge revenue and a portion of the excess of investment
income earned from investment of the contract considerations over
the interest credited to contract owners. The costs for universal
life-type insurance are amortized over the lives of the policies as
a percentage of the estimated gross profits expected to be realized
on the policies. For traditional life, disability income and long-
term care insurance policies, the costs are amortized over an
appropriate period in proportion to premium revenue.<PAGE>
PAGE 55
1. Summary of significant accounting policies (continued)
Liabilities for future policy benefits
Liabilities for universal life-type insurance, single premium
deferred annuities and installment annuities are accumulation
values.
Liabilities for fixed annuities in a benefit status are based on
the Progressive Annuity Table with interest at 5 percent, the 1971
Individual Annuity Table with interest at 7 percent or 8.25
percent, or the 1983a Table with various interest rates ranging
from 5.5 percent to 9.5 percent, depending on year of issue.
Liabilities for future benefits on traditional life insurance have
been computed principally by the net level premium method, based on
anticipated rates of mortality (approximating the 1965-1970 Select
and Ultimate Basic Table for policies issued after 1980 and the
1955-1960 Select and Ultimate Basic Table for policies issued prior
to 1981 and the 1975-1980 Select and Ultimate Basic Table for term
insurance policies issued after 1986), policy persistency derived
from IDS Life's experience data (first-year rates ranging from
approximately 70 percent to 90 percent and increasing rates
thereafter), and estimated future investment yields of 4 percent
for policies issued before 1974 and 5.25 percent for policies
issued from 1974 to 1980. Cash value plans issued in 1980 and
later assume future investment rates that grade from 9.5 percent to
5 percent over 20 years. Term insurance issued from 1981 to 1984
assumes an 8 percent level investment rate, and term insurance
issued from 1985 to 1994 assumes investment rates that grade from
10 percent to 6 percent over 20 years, and term insurance issued
after 1994 assumes investment rates that grade from 8 percent to
6.5 percent over 7 years.
Liabilities for future disability income policy benefits have been
computed principally by the net level premium method, based on the
1964 Commissioners Disability Table with the 1958 Commissioners
Standard Ordinary Mortality Table at 3 percent interest for persons
disabled in 1980 and prior, 8 percent interest for persons disabled
from 1981 to 1991, 7 percent interest for persons disabled in 1992
and 6 percent interest for persons disabled after 1992.
Liabilities for future benefits on long-term care insurance have
been computed principally by the net level premium method, using
morbidity rates based on the 1985 National Nursing Home Survey and
mortality rates based on the 1983a Table. The interest rate basis
is 9.5 percent grading to 7 percent over ten years for policies
issued from 1989 to 1992, 7.75 percent grading to 7 percent over
four years for policies issued after 1992, 8 percent for claims
incurred in 1989 to 1991, 7 percent for claims incurred in 1992 and
6 percent for claims incurred after 1992.
Reinsurance
The maximum amount of life insurance risk retained by the Company
on any one life is $750 of life and waiver of premium benefits plus
$50 of accidental death benefits. The maximum amount of disability
income risk retained by the Company on any one life is $6 of
<PAGE>
PAGE 56
1. Summary of significant accounting policies (continued)
monthly benefit for benefit periods longer than three years. The
excesses are reinsured with other life insurance companies on a
yearly renewable term basis.
Federal income taxes
The Company's taxable income is included in the consolidated
federal income tax return of American Express Company. The Company
provides for income taxes on a separate return basis, except that,
under an agreement between American Express Financial Corporation
and American Express Company, tax benefit is recognized for losses
to the extent they can be used on the consolidated tax return. It
is the policy of American Express Financial Corporation to
reimburse a subsidiary for any tax benefit.
Included in other liabilities at Dec. 31, 1995 and 1994 are $3,971
and $3,161, respectively, payable to IDS Life for federal income
taxes.
Separate account business
The separate account assets and liabilities represent funds held
for the exclusive benefit of the variable annuity and variable life
insurance contract owners. The Company receives a monthly cost of
insurance charge and receives a minimum death benefit guarantee fee
from variable life insurance separate accounts and a mortality and
expense assurance fee from the variable annuity and variable life
insurance separate accounts.
The Company makes contractual mortality assurances to the variable
annuity contract owners that the net assets of the separate
accounts will not be affected by future variations in the actual
life expectancy experience of the annuitants and the beneficiaries
from the mortality assumptions implicit in the annuity contracts.
The Company makes periodic fund transfers to, or withdrawals from,
the separate accounts for such actuarial adjustments for variable
annuities that are in the benefit payment period. The Company
guarantees, for the variable life insurance policyholders, the
contractual insurance rate and that the death benefit will never be
less than the death benefit at the date of issuance.
Accounting changes
The Financial Accounting Standards Board's (FASB) SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to Be Disposed Of," is effective Jan. 1, 1996. The
new rule is not expected to have a material impact on the Company's
results of operations or financial condition.
The Company's adoption of SFAS No. 114 as of Jan. 1, 1995 is
discussed in Note 2.
The Company adopted SFAS No. 115, "Accounting for Certain
Investments in Debt and Equity Securities." The effect of adopting
the new rule was to increase stockholder's equity by approximately
$12 million, net of tax, as of Jan. 1, 1994, but the adoption had
no impact on the Company's net income.<PAGE>
PAGE 57
1. Summary of significant accounting policies (continued)
Reclassification
Certain 1994 and 1993 amounts have been reclassified to conform to
the 1995 presentation.
2. Investments
Fair values of investments in fixed maturities represent quoted
market prices and estimated values when quoted prices are not
available. Estimated values are determined by established
procedures involving, among other things, review of market indices,
price levels of current offerings of comparable issues, price
estimates and market data from independent brokers and financial
files.
Changes in net unrealized appreciation (depreciation) of
investments for the years ended Dec. 31 are summarized as follows:
1995 1994 1993
Fixed maturities:
Held to maturity $73,970 $(84,244) $ --
Available for sale 43,726 (38,226) --
Investment securities -- -- 25,350
Net realized gain (loss) on investments for the years ended Dec. 31
is summarized as follows:
1995 1994 1993
Fixed maturities $1,997 $948 $1,316
Other investments (449) 9 18
$1,548 $957 $1,334
The amortized cost, gross unrealized gains and losses and fair
value of investments in fixed maturities and equity securities at
Dec. 31, 1995 are as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Held to maturity Cost Gains Losses Value
<S> <C> <C> <C> <C>
U.S. Government agency
obligations $ 5,003 $ 199 $ -- $ 5,202
State and municipal
obligations 150 -- 2 148
Corporate bonds and
obligations 578,253 41,939 2,027 618,165
Mortgage-backed securities 59,174 846 388 59,632
$642,580 $42,984 $2,417 $683,147
<PAGE>
PAGE 58
2. Investments (continued)
Gross Gross
Amortized Unrealized Unrealized Fair
Available for sale Cost Gains Losses Value
State and municipal
obligations $ 105 $ 10 $ -- $ 115
Corporate bonds and
obligations 248,973 17,470 497 265,946
Mortgage-backed securities 327,990 9,157 1,910 335,237
Total fixed maturities 577,068 26,637 2,407 601,298
Equity securities 10 -- -- 10
$577,078 $26,637 $2,407 $601,308
</TABLE>
The change in net unrealized gain (loss) on available for sale
securities included as a separate component of stockholder's equity
was $27,710 in 1995.
The amortized cost, gross unrealized gains and losses and fair
value of investments in fixed maturities and equity securities at
Dec. 31, 1994 are as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Held to maturity Cost Gains Losses Value
<S> <C> <C> <C> <C>
U.S. Government agency
obligations $ 398 $ 2 $ 18 $ 382
Corporate bonds and
obligations 622,422 6,564 33,976 595,010
Mortgage-backed securities 63,663 580 6,555 57,688
$686,483 $7,146 $40,549 $653,080
Gross Gross
Amortized Unrealized Unrealized Fair
Available for sale Cost Gains Losses Value
U.S. Government agency
obligations $ 10,000 $ -- $ 135 $ 9,865
State and municipal
obligations 104 1 -- 105
Corporate bonds and
obligations 142,447 2,632 2,447 142,632
Mortgage-backed securities 322,048 381 19,928 302,501
Total fixed maturities 474,599 3,014 22,510 455,103
Equity securities 332 -- 197 135
$474,931 $3,014 $22,707 $455,238
</TABLE>
The change in net unrealized gain (loss) on available for sale
securities included as a separate component of stockholder's equity
was $(12,393) in 1994.
The amortized cost and fair value of investments in fixed
maturities at Dec. 31, 1995 by contractual maturity are shown
below. Expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay
obligations with or without call or prepayment penalties.
<PAGE>
PAGE 59
2. Investments (continued)
Amortized Fair
Held to maturity Cost Value
Due in one year or less $ 18,748 $ 19,136
Due from one to five years 99,486 105,747
Due from five to ten years 367,875 392,671
Due in more than ten years 97,297 105,961
Mortgage-backed securities 59,174 59,632
$642,580 $683,147
Amortized Fair
Available for sale Cost Value
Due in one year or less $ 15,296 $ 15,473
Due from one to five years 80,249 85,561
Due from five to ten years 108,127 114,937
Due in more than ten years 45,406 50,090
Mortgage-backed securities 327,990 335,237
$577,068 $601,298
During the year ended Dec. 31, 1995, fixed maturities classified as
held to maturity were sold with proceeds of $28,905 and gross
realized gains and losses on such sales were $1,055 and $121,
respectively. The sale of these fixed maturities was due to
significant deterioration in the issuers' creditworthiness. As a
result of adopting the FASB Special Report, "A Guide to
Implementation of Statement 115 on Accounting for Certain
Investments in Debt and Equity Securities," the Company
reclassified securities with a book value of $15,607 and net
unrealized gains of $144 from held to maturity to available for
sale in December 1995.
In addition, fixed maturities available for sale were sold during
1995 with proceeds of $8,839 and gross realized gains and losses on
such sales were $nil and $74, respectively.
During the year ended Dec. 31, 1994, fixed maturities classified as
held to maturity were sold with proceeds of $2,649 and gross
realized gains and losses on such sales were $nil and $86,
respectively. The sale of these fixed maturities was due to
significant deterioration in the issuers' creditworthiness.
In addition, fixed maturities available for sale were sold during
1994 with proceeds of $14,533 and gross realized gains and losses
on such sales were $181 and $308, respectively.
At Dec. 31, 1995, bonds carried at $262 were on deposit with the
state of New York as required by law.
Net investment income for the years ended Dec. 31 is summarized as
follows:
<PAGE>
PAGE 60
2. Investments (continued)
1995 1994 1993
Interest on fixed maturities $ 97,092 $ 93,800 $100,940
Interest on mortgage loans 13,888 13,226 8,424
Other investment income 1,291 1,219 1,220
Interest on cash equivalents 186 363 63
112,457 108,608 110,647
Less investment expenses 1,533 465 500
$110,924 $108,143 $110,147
At Dec. 31, 1995, investments in fixed maturities comprised 87
percent of the Company's total invested assets. Securities are
rated by Moody's and Standard & Poor's (S&P), except for securities
carried at approximately $144 million which are rated by American
Express Financial Corporation internal analysts using criteria
similar to Moody's and S&P. A summary of investments in fixed
maturities, at amortized cost, by rating on Dec. 31 is as follows:
Rating 1995 1994
Aaa/AAA $ 391,321 $ 393,736
Aa/AA 17,572 18,857
Aa/A 9,950 9,710
A/A 209,483 191,694
A/BBB 61,912 57,206
Baa/BBB 357,445 340,271
Baa/BB 46,029 48,552
Below investment grade 125,936 101,056
$1,219,648 $1,161,082
At Dec. 31, 1995, 90 percent of the securities rated Aaa/AAA are
GNMA, FNMA and FHLMC mortgage-backed securities. No holdings of
any other issuer are greater than 1 percent of the Company's total
investments in fixed maturities.
At Dec. 31, 1995, approximately 11.2 percent of the Company's
invested assets were mortgage loans on real estate. Summaries of
mortgage loans by region and by type of real estate are as follows:
<TABLE>
<CAPTION>
Dec. 31, 1995 Dec. 31, 1994
On Balance Commitments On Balance Commitments
Region Sheet to Purchase Sheet to Purchase
<S> <C> <C> <C> <C>
West North Central $ 23,705 $ -- $ 26,660 $--
East North Central 34,207 -- 35,018 --
South Atlantic 38,802 2,033 39,516 18
Middle Atlantic 23,502 -- 24,061 --
Pacific 13,150 -- 13,297 --
Mountain 14,937 5,084 15,218 --
New England 8,982 -- 9,674 --
East South Central 1,613 7,407 1,629 --
West South Central 277 -- 288 --
159,175 14,524 165,361 18
Less allowance for losses 445 -- 445 --
$158,730 $14,524 $164,916 $18
<PAGE>
PAGE 61
2. Investments (continued)
Dec. 31, 1995 Dec. 31, 1994
On Balance Commitments On Balance Commitments
Property type Sheet to Purchase Sheet to Purchase
Apartments $ 64,136 $ 7,988 $ 65,389 $18
Department/retail stores 55,308 -- 57,608 --
Office buildings 12,367 6,536 13,107 --
Industrial buildings 13,255 -- 13,583 --
Medical buildings 5,255 -- 6,704 --
Nursing/retirement 6,565 -- 6,644 --
Other 2,012 -- 2,038 --
Hotels/motels 277 -- 288 --
159,175 14,524 165,361 18
Less allowance for losses 445 -- 445 --
$158,730 $14,524 $164,916 $18
</TABLE>
Mortgage loan fundings are restricted by state insurance regulatory
authority to 80 percent or less of the market value of the real
estate at the time of origination of the loan. The Company holds
the mortgage document, which gives the right to take possession of
the property if the borrower fails to perform according to the
terms of the agreement. The fair value of the mortgage loans is
determined by a discounted cash flow analysis using mortgage
interest rates currently offered for mortgages of similar
maturities. Commitments to purchase mortgages are made in the
ordinary course of business. The fair value of the mortgage
commitments is $nil.
As of Jan. 1, 1995, the Company adopted Statement of Financial
Accounting Standards No. 114, "Accounting by Creditors for
Impairment of a Loan" (SFAS No. 114), as amended by Statement of
Financial Accounting Standards No. 118, "Accounting by Creditors
for Impairment of a Loan - Income Recognition and Disclosures".
The adoption of the new rules did not have a material impact on the
Company's results of operations or financial condition.
SFAS No. 114 applies to all loans except for smaller-balance
homogeneous loans, that are collectively evaluated for impairment.
Impairment is measured as the excess of the loan's recorded
investment over its present value of expected principal and
interest payments discounted at the loan's effective interest rate,
or the fair value of collateral. The amount of the impairment is
recorded as a reserve for investment losses.
Based on management's judgment as to the ultimate collectibility of
principal, interest payments received are either recognized as
income or applied to the recorded investment in the loan until it
has been recovered. Once the recorded investment has been
recovered, any additional payments are recognized as interest
income.
The reserve for investment losses is maintained at a level that
management believes is adequate to absorb estimated credit losses
in the portfolio. The level of the reserve account is determined
based on several factors, including historical experience, expected
future principal and interest payments, estimated collateral
values, and current and anticipated economic and political
conditions. Management regularly evaluates the adequacy of the
reserve for investment losses.
<PAGE>
PAGE 62
2. Investments (continued)
At Dec. 31, 1995, the Company's recorded investment in impaired
loans was $2,052 with a reserve of $445. During the year, the
average recorded investment in impaired loans was $3,003. There
was no change in the reserve for investment losses from the prior
year.
The Company recognized $204 of interest income related to impaired
loans for the year ended Dec. 31, 1995.
3. Income taxes
The Company qualifies as a life insurance company for federal
income tax purposes. As such, the Company is subject to the
Internal Revenue Code provisions applicable to life insurance
companies.
Income tax expense consists of the following:
1995 1994 1993
Federal income taxes:
Current $15,146 $16,419 $13,164
Deferred (1,301) (4,320) (449)
13,845 12,099 12,715
State income taxes-current 900 695 620
Income tax expense $14,745 $22,794 $13,335
Increases (decreases) to the federal tax provision applicable to
pretax income based on the statutory rate are attributable to:
<TABLE>
<CAPTION>
1995 1994 1993
Provision Rate Provision Rate Provision Rate
<S> <C> <C> <C> <C> <C> <C>
Federal income taxes based
on the statutory rate $14,746 35.0% $12,757 35.0% $13,026 35.0%
Increases (decreases) are
attributable to:
Tax-excluded interest
and dividend income (464) (1.1) (554) (1.5) (557) (1.5)
Other, net (437) (1.0) (104) (0.3) 246 0.7
Federal income taxes $13,845 32.9% $12,099 33.2% $12,715 34.2%
</TABLE>
A portion of life insurance company income earned prior to 1984 was
not subject to current taxation but was accumulated, for tax
purposes, in a "policyholders' surplus account." At Dec. 31, 1995,
the Company had a policyholders' surplus account balance of $798.
The policyholders' surplus account is only taxable if dividends to
the stockholder exceed the stockholder's surplus account or if the
Company is liquidated. Deferred income taxes of $279 have not been
established because no distributions of such amounts are
contemplated.
Significant components of the Company's deferred tax assets and
liabilities as of Dec. 31 are as follows:
<PAGE>
PAGE 63
3. Income taxes (continued)
1995 1994
Deferred tax assets:
Policy reserves $ 26,237 $21,567
Investments -- 3,331
Other 2,791 2,991
Total deferred tax assets 29,028 27,889
Deferred tax liabilities:
Deferred policy acquisition costs 33,001 29,933
Investments 11,690 --
Total deferred tax liabilities 44,691 29,933
Net deferred tax liabilities $(15,663) $(2,044)
The Company is required to establish a "valuation allowance" for
any portion of the deferred tax assets that management believes
will not be realized. In the opinion of management, it is more
likely than not that the Company will realize the benefit of the
deferred tax assets, and, therefore, no such valuation allowance
has been established.
4. Stockholder's equity
Retained earnings available for distribution as dividends to the
parent are limited to the Company's surplus as determined in
accordance with accounting practices prescribed by the New York
Department of Insurance. Statutory unassigned surplus aggregated
$85,964 as of Dec. 31, 1995 and $70,974 as of Dec. 31, 1994 (see
Note 3 with respect to the income tax effect of certain
distributions).
Dividends paid to parent were $8,000 in 1995, $nil in 1994 and $nil
in 1993.
During 1995, the Company incurred a loss of $235 on the sale of an
interest rate cap to IDS Life. This loss has been reflected as a
direct charge to stockholder's equity in the accompanying financial
statements.
5. Retirement plan and services
Until July 1, 1995, the Company participated in the IDS Retirement
Plan of American Express Financial Corporation which covered all
permanent employees age 21 and over who had met certain employment
requirements. Effective July 1, 1995, the IDS Retirement Plan was
merged with American Express Company's American Express Retirement
Plan, which simultaneously was amended to include a cash balance
formula and a lump sum distribution option. Employer contributions
to the plan are based on participants' age, years of service and
total compensation for the year. Funding of retirement costs for
this plan complies with the applicable minimum funding requirements
specified by ERISA. The Company's share of the total net periodic
pension cost was $nil in 1995, 1994 and 1993.
<PAGE>
PAGE 64
5. Retirement plan and services (continued)
The Company has a "Sales Benefit Plan" which is an unfunded,
noncontributory retirement plan for all eligible financial
advisors. Total plan costs for 1995, 1994 and 1993, which are
calculated on the basis of commission earnings of the individual
financial advisors, were $1,392, $1,372 and $1,042, respectively.
Such costs are included in deferred policy acquisition costs.
The Company also participates in defined contribution pension plans
of American Express Company which cover all employees who have met
certain employment requirements. Company contributions to the
plans are a percent of either each employee's eligible compensation
or basic contributions. Costs of these plans charged to operations
in 1995, 1994 and 1993 were $231, $251 and $201, respectively.
The Company participates in defined benefit health care plans of
American Express Financial Corporation that provide health care and
life insurance benefits to retired employees and retired financial
advisors. The plans include participant contributions and service-
related eligibility requirements. Upon retirement, such employees
are considered to have been employees of American Express Financial
Corporation. American Express Financial Corporation expenses these
benefits and allocates the expenses to its subsidiaries.
Accordingly, costs of such benefits to the Company are included in
employee compensation and benefits and cannot be identified on a
separate company basis. At Dec. 31, 1995, the total accumulated
post retirement benefit obligation, has been recorded as a
liability by American Express Financial Corporation.
6. Incentive plan and operating expenses
The Company maintains a "Persistency Payment Plan." Under the
terms of this plan, financial advisors earn additional compensation
based on the volume and persistency of insurance sales. The total
costs for the plan for 1995, 1994 and 1993 were $1,720, $1,287 and
$1,387, respectively. Such costs are included in deferred policy
acquisition costs.
Charges by IDS Life and American Express Financial Corporation for
the use of joint facilities, marketing services and other services
aggregated $12,122, $9,314 and $7,421 for 1995, 1994 and 1993,
respectively. Certain of the costs assessed to the Company are
included in deferred policy acquisition costs.
7. Commitments and contingencies
At Dec. 31, 1995 and 1994, traditional life insurance and universal
life-type insurance in force aggregated $3,502,851 and $3,155,571,
respectively, of which $163,462 and $162,956 were reinsured at the
respective year ends.
In addition, the Company has a stop loss reinsurance agreement with
IDS Life covering ordinary life benefits. IDS Life agrees to pay
all death benefits incurred each year which exceed 125 percent of
normal claims, where normal claims are defined in the agreement as
.095 percent of the mean retained life insurance in force.
<PAGE>
PAGE 65
7. Commitments and contingencies (continued)
Premiums ceded to IDS Life amounted to $85, $76 and $67 for the
years ended Dec. 31, 1995, 1994 and 1993, respectively. Claim
recoveries under the terms of this reinsurance agreement were $nil
in 1995, 1994 and 1993.
Premiums ceded to reinsurers other than IDS Life amounted to $269,
$721 and $741 for the years ended Dec. 31, 1995, 1994 and 1993,
respectively. Reinsurance recovered from reinsurers other than IDS
Life amounted to $576, $14 and $379 for the years ended Dec. 31,
1995, 1994 and 1993.
Reinsurance contracts do not relieve the Company from its primary
obligations to policyholders.
The Company has an agreement to assume a block of extended term
life insurance business. The amount of insurance in force related
to this agreement was $392,106 and $447,317 at Dec. 31, 1995 and
1994, respectively. The accompanying statement of income includes
premiums of $nil for the years ended Dec. 31, 1995, 1994 and 1993,
and decrease in liabilities for future policy benefits of $2,039,
2,538 and $3,032 related to this agreement for the years ended Dec.
31, 1995, 1994 and 1993, respectively.
8. Lines of credit
The Company has available lines of credit with two banks
aggregating $30,000 at 40 to 80 basis points over each bank's cost
of funds. Outstanding borrowings under these agreements were $nil
at Dec. 31, 1995 and 1994.
9. Derivative financial instruments
The Company enters into transactions involving derivative
financial instruments to manage its exposure to interest rate risk,
including hedging specific transactions. The Company manages risks
associated with these instruments as described below. The Company
does not hold derivative instruments for trading purposes.
Market risk is the possibility that the value of the derivative
financial instruments will change due to fluctuations in a factor
from which the instrument derives its value, primarily an interest
rate. The Company is not impacted by market risk related to
derivatives held for non-trading purposes beyond that inherent in
cash market transactions. Derivatives held for purposes other than
trading are largely used to manage risk and, therefore, the cash
flow and income effects of the derivatives are inverse to the
effects of the underlying transactions.
Credit risk is the possibility that the counterparty will not
fulfill the terms of the contract. The Company monitors credit
exposure related to derivative financial instruments through
established approval procedures, including setting concentration
limits by counterparty and industry, and requiring collateral,
where appropriate. A vast majority of the Company's counterparties
are rated A or better by Moody's and Standard & Poor's.
<PAGE>
PAGE 66
9. Derivative financial instruments (continued)
The notional or contract amount of a derivative financial
instrument is generally used to calculate the cash flows that are
received or paid over the life of the agreement. Notional amounts
are not recorded on the balance sheet. Notional amounts far exceed
the related credit exposure.
Credit exposure related to interest rate caps is measured by
replacement cost of the contracts. The replacement cost represents
the fair value of the instruments.
<TABLE>
<CAPTION>
Notional Carrying Fair Total Credit
Dec. 31, 1995 Amount Value Value Exposure
<S> <C> <C> <C> <C>
Assets:
Interest rate caps $300,000 $1,905 $745 $745
Dec. 31, 1994
Assets:
Interest rate caps $200,000 $1,389 $828 $828
</TABLE>
The fair values of derivative financial instruments are based on
market values, dealer quotes or pricing models. The interest rate
caps expire on various dates from 1997 to 2000.
Interest rate caps are used to manage the Company's exposure to
rising interest rates. These instruments are used primarily to
protect the margin between interest rates earned on investments and
the interest rates credited to related annuity contract holders.
The cost of interest rate caps is amortized to interest expense
over the life of the contracts and payments received as a result
of these agreements are recorded as a reduction of interest expense
when realized. The amortized cost of interest rate cap contracts
is included in other investments.
10. Fair values of financial instruments
The Company discloses fair value information for most on- and off-
balance sheet financial instruments for which it is practical to
estimate that value. Fair values of life insurance obligations,
receivables and all non-financial instruments, such as deferred
acquisition costs are excluded. Off-balance sheet intangible
assets, such as the value the field force, are also excluded.
Management believes the value of excluded assets is significant.
The fair value of the Company, therefore, cannot be estimated by
aggregating the amounts presented.
<PAGE>
PAGE 67
10. Fair values of financial instruments (continued)
<TABLE>
<CAPTION>
1995 1994
Carrying Fair Carrying Fair
Financial Assets Value Value Value Value
<S> <C> <C> <C> <C>
Investments:
Fixed maturities (Note 2):
Held to maturity $ 642,580 $ 683,147 $ 686,483 $ 653,080
Available for sale 601,298 601,298 455,103 455,103
Mortgage loans on real
estate (Note 2) 158,730 168,194 164,916 157,085
Other:
Equity securities (Note 2) 10 10 135 135
Derivative financial
instruments (Note 9) 1,905 745 1,389 828
Cash and cash equivalents
(Note 1) -- -- 5,262 5,262
Separate accounts assets
(Note 1) 724,212 724,212 506,208 506,208
Financial Liabilities
Future policy benefits for
fixed annuities 1,038,431 1,005,004 1,025,881 991,358
Separate account liabilitie 678,263 645,389 474,958 448,665
</TABLE>
At Dec. 31, 1995 and 1994, the carrying amount and fair value of
future policy benefits for fixed annuities exclude life insurance-
related contracts carried at $67,843 and $59,803, respectively,
and policy loans of $2,893 and $1,683, respectively. The fair
value of these benefits is based on the status of the annuities at
Dec. 31, 1995 and 1994. The fair value of deferred annuities is
estimated as the carrying amount less any surrender charges and
related loans. The fair value for annuities in non-life contingent
payout status is estimated as the present value of projected
benefit payments at rates appropriate for contracts issued in 1995
and 1994.
At Dec. 31, 1995 and 1994, the fair value of liabilities related to
separate accounts is estimated as the carrying amount less
applicable surrender charges and less variable insurance contracts
carried at $45,949 and $31,250, respectively.
11. Statutory insurance accounting practices
Reconciliations of net income for 1995, 1994 and 1993 and
stockholder's equity at Dec. 31, 1995 and 1994, as shown in the
accompanying financial statements, to that determined using
statutory accounting practices are as follows:
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Net income, per accompanying
financial statements $ 27,387 $23,655 $23,884
Deferred policy acquisition costs (9,722) (12,187) (10,622)
Adjustments of future policy
benefit liabilities (10,655) 13,741 13,597
Deferred federal income taxes (1,301) (4,321) (462)
Provision for losses on investments -- (1,652) 438
Separate account gains 20,769 142 2,708
Other, net (1,678) 755 (1,182)
Net income, on basis of
statutory accounting practices
$24,800 $20,133 $28,361
<PAGE>
PAGE 68
11. Statutory insurance accounting practices (continued)
1995 1994
Stockholder's equity, per
accompanying financial
statements $218,583 $171,721
Deferred policy acquisition costs (109,800) (100,078)
Adjustments of future policy
benefit liabilities 23,172 33,827
Deferred federal income taxes 15,663 2,044
Securities valuation reserve (18,029) (15,939)
Adjustments of separate account
liabilitiess 34,326 13,557
Net unrealized loss on
investments (24,231) 19,497
Premiums due 925 851
Deferred revenue liability 794 834
Allowance for losses 445 445
Non-admitted assets (578) (503)
Interest maintenance reserve (2,442) (2,110)
Other, net 347 249
Stockholder's equity, on basis
of statutory accounting
practices $139,175 $124,395
</TABLE>
<PAGE>
PAGE 69
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the accompanying balance sheets of IDS Life
Insurance Company of New York (a wholly owned subsidiary of IDS
Life Insurance Company) as of December 31, 1995 and 1994, and the
related statements of income and cash flows for each of the three
years in the period ended December 31, 1995. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Life Insurance Company of New York at December 31, 1995 and 1994,
and the results of its operations and its cash flows for each of
the three years in the period ended December 31, 1995, in
conformity with generally accepted accounting principles.
As discussed in Note 1 to the financial statements, the Company
changed its method of accounting for certain investments in debt
and equity securities in 1994.
Ernst & Young LLP
February 2, 1996
Minneapolis, Minnesota
<PAGE>
PAGE 70
PART C.
Item 24. Financial Statements and Exhibits
(a) Financial Statements included in Part B of this Registration
Statement.
IDS Life of New York Accounts 4, 5, 6, 9, 10 and 11:
Statements of Net Assets at Dec. 31, 1995.
Statements of Operations for the year ended Dec. 31, 1995.
Statements of Changes in Net Assets for the years ended Dec.
31, 1995 and Dec. 31, 1994.
Notes to Financial Statements.
Report of Independent Auditors dated March 15, 1996.
IDS Life Insurance Company of New York.
Balance Sheets at Dec. 31, 1995 and 1994;
Statements of Income for the years ended Dec. 31, 1995, 1994,
and 1993;
Statements of Cash Flows for the years ended Dec. 31, 1995,
1994, and 1993;
Notes to Financial Statements.
Report of Independent Auditors dated February 2, 1996.
Exhibits to Financial Statements included in Part B:
Financial Statement Schedules I, III, IV and V as required by
Regulation S-X:
Schedule I - Summary of Investments Other than
Investments in Related Parties
Schedule III - Supplementary Insurance Information
Schedule IV - Reinsurance
Schedule V - Valuation and Qualifying Accounts
Report of Independent Auditors dated February 2, 1996.
All other schedules to the financial statements required by
Article 7 of Regulation S-X are not required under the
related instructions or are inapplicable and, therefore have
been omitted.
(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.
<PAGE>
PAGE 71
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.
1.4 Consent in Writing in Lieu of Meeting of Board of directors
of IDS Life Insurance Company of New York establishing
Accounts 12, 13 and 14 on April 17, 1996, filed
electronically herewith.
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 as Exhibit 5.1 to Post-Effective Amendment No.
1 to Registration Statement No. 33-52567, is incorporated
herein by reference.
5.2 Copy of form of Participant Enrollment Form (for Employee
Benefit Annuity) (form 38609 A), filed electronically as
Exhibit 5.2 to Post-Effective Amendment No. 1 to Registration
Statement No. 33-52567, is incorporated herein by reference.
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.
7. Not applicable.
8. Not applicable.
9. Opinion of counsel and consent to its use as to the legality
of the securities being registered was filed with
Registrant's 24f-2 Notice on or about February 23, 1996.
10. Consent of Independent Auditors, filed electronically
herewith.
<PAGE>
PAGE 72
11. Financial Statement Schedules and Report of Independent
Auditors, filed electronically herewith.
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. Financial Data Schedules filed electronically herewith.
15. Power of Attorney to sign Amendments to this Registration
Statement, dated April 16, 1996, filed electronically
herewith.
Item 25. Directors and Officers of the Depositor (IDS Life
Insurance Company of New York)
<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
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
Donna M. Gaglione 20 Madison Avenue Extension Secretary
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 IDS Tower 10 Director, Vice
Minneapolis, MN 55440 President and Chief
Operating Officer
<PAGE>
PAGE 73
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 IDS Tower 10 Executive Vice President
Minneapolis, MN 55440
Michael P. Monaco World Financial Center Director
New York, NY
Stephen P. Norman World Financial Center Director
New York, NY
Kevin E. Palmer IDS Tower 10 Reinsurance Actuary
Minneapolis, MN 55440
Louise M. Parent World Financial Center Director
New York, NY
Carl N. Platou IDS Tower 10 Director
Minneapolis, MN 55440
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>
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
<PAGE>
PAGE 74
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
Jurisdiction
Name of Subsidiary of Incorporation
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Companies engaged in Investors Diversified Financial Services
American Centurion Life Assurance Company New York
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Financial Advisors Inc. Delaware
American Express Financial Corporation Delaware
American Express Insurance Agency of Nevada Inc. Nevada
American Express Minnesota Foundation Minnesota
American Express Service Corporation Delaware
American Express Tax and Business Services Inc. Minnesota
American Express Trust Company Minnesota
American Partners Life Insurance Company Arizona
AMEX Assurance Company Illinois
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 Ltd. Mississippi
IDS Insurance Agency of New Mexico Inc. New Mexico
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Ohio Inc. Ohio
IDS Insurance Agency of Texas Inc. Texas
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS International, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
IDS Management Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Plan Services of California, Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Real Estate Services, Inc. Delaware
IDS Realty Corporation Minnesota
IDS Sales Support Inc. Minnesota
IDS Securities Corporation Delaware
Investors Syndicate Development Corp. Nevada
<PAGE>
PAGE 75
Item 27. Number of Contractowners
On March 31, 1996, there were 1,696 contract owners of
the Employee Benefit Annuity.
Item 28. Indemnification
The By-Laws of the depositor provide that it shall
indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that
he is or was a director, officer, employee or agent of
this Corporation, or is or was serving at the direction
of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture,
trust or other enterprise, to any threatened, pending or
completed action, suit or proceeding, wherever brought,
to the fullest extent permitted by the laws of the State
of Minnesota, as now existing or hereafter amended,
provided that this Article shall not indemnify or protect
any such director, officer, employee or agent against any
liability to the Corporation or its security holders to
which he would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless
disregard of his obligations and duties.
Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to director, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Item 29. Principal Underwriters.
(a) American Express Financial Advisors 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
<PAGE>
PAGE 76
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:
<PAGE>
PAGE 77
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
Peter J. Anderson Senior Vice President- None
IDS Tower 10 Investments
Minneapolis, MN 55440
Ward D. Armstrong Vice President- None
IDS Tower 10 Sales and Marketing,
Minneapolis, MN 55440 IDS Institutional
Retirement 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-Risk None
IDS Tower 10 Management Products
Minneapolis, MN 55440
John D. Begley Group Vice President- None
Suite 100 Ohio/Indiana
7760 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
Suite 200 Greater Pennsylvania
3500 Market Street
Camp Hill, PA 17011
Alan F. Bignall Vice President- None
IDS Tower 10 Technology and
Minneapolis, MN 55440 Development
Brent L. Bisson Group Vice President- None
Ste 900 E. Westside Twr Los Angeles Metro
11835 West Olympic Blvd.
Los Angeles, CA 90064
<PAGE>
PAGE 78
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
John C. Boeder Vice President- Director
IDS Tower 10 Mature Market Group
Minneapolis, MN 55440
Walter K. Booker Group Vice President- None
Suite 200 New Jersey
3500 Market Street
Camp Hill, NJ 17011
Bruce J. Bordelon Group Vice President- None
Galleria One Suite 1900 Gulf States
Galleria Blvd.
Metairie, LA 70001
Charles R. Branch Group Vice President- None
Suite 200 Northwest
West 111 North River Dr
Spokane, WA 99201
Karl J. Breyer Senior Vice President- None
IDS Tower 10 Corporate Affairs and
Minneapolis, MN 55440 Special 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
IDS Tower 10 Field Management
Minneapolis, MN 55440
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- Director
290 Woodcliff Drive Upstate New York
Fairport, NY 14450
<PAGE>
PAGE 79
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Henry J. Cormier Group Vice President- None
Commerce Center One Connecticut
333 East River Drive
East Hartford, CT 06108
John M. Crawford Group Vice President- None
Suite 200 Arkansas/Springfield/Memphis
10800 Financial Ctr Pkwy
Little Rock, AR 72211
Kevin F. Crowe Group Vice President- None
Suite 312 Carolinas/Eastern Georgia
7300 Carmel Executive Pk
Charlotte, NC 28226
Colleen Curran Vice President and None
IDS Tower 10 Assistant General Counsel
Minneapolis, MN 55440
Alan R. Dakay Vice President- None
IDS Tower 10 Institutional Products
Minneapolis, MN 55440 Group
Regenia David Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
Scott M. DiGiammarino Group Vice President- None
Suite 500 Washington/Baltimore
8045 Leesburg Pike
Vienna, VA 22182
Bradford L. Drew Group Vice President- None
Two Datran Center Eastern Florida
Penthouse One B
9130 S. Dadeland Blvd.
Miami, FL 33156
William H. Dudley Director and Executive None
IDS Tower 10 Vice President-
Minneapolis MN 55440 Investment Operations
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
<PAGE>
PAGE 80
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Mark A. Ernst Vice President- None
IDS Tower 10 Retail Services
Minneapolis, MN 55440
Joseph Evanovich Jr. Group Vice President- None
One Old Mill Nebraska/Iowa/Dakotas
101 South 108th Avenue
Omaha, NE 68154
Louise P. Evenson Group Vice President- None
Suite 200 San Francisco Bay Area
1333 N. California Blvd.
Walnut Creek, CA 94596
Gordon M. Fines Vice President- None
IDS Tower 10 Mutual Fund Equity
Minneapolis MN 55440 Investments
Douglas L. Forsberg Group Vice President- None
Suite 100 Portland/Eugene
7931 N. E. Halsey
Portland, OR 97213
William P. Fritz Group Vice President- None
Suite 160 Northern Missouri
12855 Flushing Meadows Dr
St. Louis, MO 63131
Carl W. Gans Group Vice President- None
8500 Tower Suite 1770 Twin City Metro
8500 Normandale Lake Blvd.
Bloomington, MN 55437
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
<PAGE>
PAGE 81
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Bruce M. Guarino Group Vice President- None
Suite 1736 Hawaii
1585 Kapiolani Blvd.
Honolulu, HI 96814
David A. Hammer Vice President None
IDS Tower 10 and Marketing
Minneapolis, MN 55440 Controller
Teresa A. Hanratty Group Vice President- None
Suites 6&7 Northern New England
169 South River Road
Bedford, NH 03110
John R. Hantz Group Vice President- None
Suite 107 Detroit Metro
17177 N. Laurel Park
Livonia, MI 48154
Robert L. Harden Group Vice President- None
Two Constitution Plaza Boston Metro
Boston, MA 02129
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
Brian M. Heath Group Vice President- None
Suite 150 North Texas
801 E. Campbell Road
Richardson, TX 75081
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
David J. Hockenberry Group Vice President- None
30 Burton Hills Blvd. Eastern Tennessee
Suite 175
Nashville, TN 37215
Kevin P. Howe Vice President- None
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations and
Chief Compliance Officer
<PAGE>
PAGE 82
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
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
James E. Kaarre Vice President- None
IDS Tower 10 Marketing Promotions
Minneapolis, MN 55440
Linda B. Keene Vice President- None
IDS Tower 10 Market Development
Minneapolis, MN 55440
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
Richard W. Kling Senior Vice President- Chairman of
IDS Tower 10 Risk Management Products the Board and
Minneapolis, MN 55440 President
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
Ste 108 Trestle Bridge V Greater Michigan
5136 Lovers Lane
Kalamazoo, MI 49002
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
Suite 680 Chicago Metro
8585 Broadway
Merrillville, IN 48410
<PAGE>
PAGE 83
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Edward Labenski Jr. 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
Richard J. Lazarchic Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Peter A. Lefferts Senior Vice President- None
IDS Tower 10 Corporate Strategy and
Minneapolis, MN 55440 Development
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
Suite 650 Pittsburgh Metro
5700 Corporate Drive
Pittsburgh, PA 15237
William J. McKinney Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440 Support
<PAGE>
PAGE 84
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
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
Union Plaza Suite 900 Kansas/Oklahoma
3030 Northwest Expressway
Oklahoma City, OK 73112
Pamela J. Moret Vice President-Services None
IDS Tower 10
Minneapolis, MN 55440
Alan D. Morgenstern Group Vice President- None
Suite 200 Central California/
3500 Market Street Western Nevada
Camp Hill, NJ 17011
Barry J. Murphy Senior Vice President- None
IDS Tower 10 Client Service
Minneapolis, MN 55440
Mary Owens Neal Vice President- None
IDS Tower 10 Mature Market Segment
Minneapolis, MN 55440
Robert J. Neis Vice President- None
IDS Tower 10 Technology Services
Minneapolis, MN 55440 Operations
Ronald E. Newton Group Vice President- None
319 Southbridge St. Rhode Island/Central
Auburn, MA 01501 Massachusetts
Thomas V. Nicolosi Group Vice President- None
Suite 220 New York Metro Area
500 Mamaroneck Avenue
Harrison, NY 10528<PAGE>
PAGE 85
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
James R. Palmer Vice President- None
IDS Tower 10 Taxes
Minneapolis, MN 55440
Carla P. Pavone Vice President- None
IDS Tower 10 Specialty Service Teams
Minneapolis, MN 55440 and Emerging Business
Susan B. Plimpton Vice President- None
IDS Tower 10 Segmentation Development
Minneapolis, MN 55440 and Support
Larry M. Post Group Vice President- None
One Tower Bridge Philadelphia Metro
100 Front Street 8th Fl
West Conshohocken, PA 19428
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 Geographical Service
Minneapolis, MN 55440 Teams
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
R. Daniel Richardson Group Vice President- None
Suite 800 Southern Texas
Arboretum Plaza One
9442 Capital of Texas Hwy N.
Austin, TX 78759
Roger B. Rogos Group Vice President- None
One Sarasota Tower Western Florida
Suite 700
Two N. Tamiami Trail
Sarasota, FL 34236
ReBecca K. Roloff Vice President-Private None
IDS Tower 10 Client Group
Minneapolis, MN 55440
Stephen W. Roszell Vice President- None
IDS Tower 10 Advisory Institutional
Minneapolis, MN 55440 Marketing
<PAGE>
PAGE 86
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Max G. Roth Group Vice President- None
Suite 201 S IDS Ctr Wisconsin/Upper Michigan
1400 Lombardi Avenue
Green Bay, WI 54304
Robert A. Rudell Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Institutional Retirement
Services
John P. Ryan Vice President and None
IDS Tower 10 General Auditor
Minneapolis, MN 55440
Erven Samsel Senior Vice President- None
45 Braintree Hill Park Field Management
Suite 402
Braintree, MA 02184
Russell L. Scalfano Group Vice President- None
Suite 201 Illinois/Indiana/Kentucky
101 Plaza East Blvd.
Evansville, IN 47715
William G. Scholz Group Vice President- None
Suite 205 Arizona/Las Vegas
7333 E Doubletree Ranch Rd
Scottsdale, AZ 85258
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
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 President- None
Ste 1700 Orlando FinCtr Orlando/Jacksonville
800 North Magnolia Ave.
Orlando, FL 32803
<PAGE>
PAGE 87
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
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
466 Westdale Mall Eastern Iowa Area
Cedar Rapids, IA 52404
Bridget Sperl Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440 Management Services
Paul J. Stanislaw Group Vice President- None
Suite 1100 Southern California
Two Park Plaza
Irvine, CA 92714
Lois A. Stilwell Group Vice President- None
Suite 433 Outstate Minnesota Area/
9900 East Bren Road North Dakota/Western Wisconsin
Minnetonka, MN 55343
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
Suite 425 Seattle/Tacoma
101 Elliott Avenue West
Seattle, WA 98119
John R. Thomas Senior Vice President- None
IDS Tower 10 Information and
Minneapolis, MN 55440 Technology
Melinda S. Urion Senior Vice President None
IDS Tower 10 and Chief Financial
Minneapolis, MN 55440 Officer
<PAGE>
PAGE 88
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Peter S. Velardi Group Vice President- None
Suite 180 Atlanta/Birmingham
1200 Ashwood Parkway
Atlanta, GA 30338
Charles F. Wachendorfer Group Vice President- None
Suite 100 Denver/Salt Lake City/
Stanford Plaza II Albuquerque
7979 East Tufts Ave Pkwy
Denver, CO 80237
Wesley W. Wadman Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Norman Weaver Jr. Senior Vice President- None
1010 Main St Suite 2B Field Management
Huntington Beach, CA 92648
Michael L. Weiner Vice President- None
IDS Tower 10 Tax Research and Audit
Minneapolis, MN 55440
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
Suite 200 Cleveland Metro
28601 Chagrin Blvd.
Woodmere, OH 44122
Eric S. Williams Group Vice President- None
Suite 250 Virginia
3951 Westerre Parkway
Richmond, VA 23233
Edwin M. Wistrand Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
<PAGE>
PAGE 89
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Michael R. Woodward Senior Vice President- Director
32 Ellicott St Ste 100 Field Management
Batavia, NY 14020
<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 $464,274 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 90
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 485(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 23rd day
of April, 1996.
IDS LIFE ACCOUNT 4
IDS LIFE ACCOUNT 5
IDS LIFE ACCOUNT 6
IDS LIFE ACCOUNT 9
IDS LIFE ACCOUNT 10
IDS LIFE ACCOUNT 11
IDS LIFE ACCOUNT 12
IDS LIFE ACCOUNT 13
IDS LIFE ACCOUNT 14
(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 23rd day of April, 1996.
Signature Title
/s/ Richard W. Kling* Director, Chairman of the
Richard W. Kling Board and President
/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 91
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 16, 1996, filed
electronically herewith.
______________________________
Mary Ellyn Minenko
<PAGE>
PAGE 92
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 4
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.
Financial Statements.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
IDS LIFE OF NEW YORK EMPLOYEE BENEFIT ANNUITY
Registration No. 33-52567/811-3500
EXHIBIT INDEX
Exhibit 1.4: Consent in Writing in Lieu of Meeting of Board of
Directors of IDS Life Insurance Company of New York
establishing Accounts 12, 13 and 14 on April 17,
1996.
Exhibit 10: Consent of Independent Auditors.
Exhibit 11: Financial Statement Schedules and Report of
Independent Auditors.
Exhibit 14: Financial Data Schedules.
Exhibit 15: Power of Attorney to sign Amendments to this
Registration Statement, dated April 16, 1996.
<PAGE>
PAGE 1
CONSENT IN WRITING IN LIEU
OF MEETING OF BOARD OF DIRECTORS
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY OF NEW YORK
By this consent in writing in lieu of a meeting of the board of
Directors of IDS Life Insurance Company of New York, a New York
corporation, we the Directors of said Corporation do hereby consent
to and authorize the adoption of the following resolution to be
effective immediately upon receipt by the Secretary of the
Corporation:
WHEREAS, This Board of Directors had determined that it is
desirable for the Corporation to provide for the acquisition
of shares of IDS Life Global Yield Fund, IDS Life Income
Advantage Fund, and IDS Life Growth Dimensions Fund under its
variable annuity contracts. Now, therefore, be it
RESOLVED, That the three separate accounts set forth below are
hereby established in accordance with Section 4240 of the New
York Insurance Law:
IDS Life Account 12, to invest in shares of IDS Life
Global Yield Fund;
IDS Life Account 13, to invest in shares of IDS Life
Income Advantage Fund; and
IDS Life Account 14, to invest in shares of IDS Life
Growth Dimensions Fund.
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized to accomplish all filings,
registrations, and applications for exemptive relief necessary
to carry the foregoing into effect.
RESOLVED FURTHER, That the Unit Investment Trust comprised of
IDS Life Accounts 4, 5, 6, 9, 10, and 11 is hereby
reconstituted as IDS Life Accounts 4, 5, 6, 9, 10, 11, 12, 13
and 14.
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed to establish such
separate accounts and/or subaccounts as they determine to be
appropriate;
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed, as they may deem
appropriate from time to time and in accordance with
applicable laws and regulations to: establish further any
separate accounts and/or subaccounts; change the designation
of the separate account to another designation; and deregister
a separate account;
<PAGE>
PAGE 2
/s/ John C. Boeder /s/ Michael P. Monaco
John C. Boeder Michael P. Monaco
/s/ Roger C. Corea /s/ Stephen P. Norman
Roger C. Corea Stephen P. Norman
/s/ Charles A. Cuccinello /s/ Louise M. Parent
Charles A. Cuccinello Louise M. Parent
/s/ Milton R. Fenster /s/ Carl N. Platou
Milton R. Fenster Carl N. Platou
/s/ Robert A. Hatton /s/ Gordon H. Ritz
Robert A. Hatton Gordon H. Ritz
/s/ Richard W. Kling /s/ Michael R. Woodward
Richard W. Kling Michael R. Woodward
/s/ Edward Landes
Edward Landes
Received by the Secretary
April 17, 1996
/s/ Donna M. Gaglione
Donna M. Gaglione
<PAGE>
PAGE 1
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption
"Independent Auditors" and to the use of our reports dated February
2, 1996 on the financial statements and schedules of IDS Life
Insurance Company of New York and our report dated March 15, 1996
on the financial statements of IDS Life of New York Accounts 4, 5,
6, 9, 10 and 11 in Post Effective Amendment No. 4 to the
Registration Statement (Form N-4 No. 33-52567) for the registration
of the Employee Benefit Annuity to be offered by IDS Life Insurance
Company of New York.
Ernst & Young LLP
Minneapolis, Minnesota
April 23, 1996
<PAGE>
PAGE 1
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE I - SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES ($ thousands)
AS OF DECEMBER 31, 1995
Column A Column B Column C Column D
Amount at which
Type of Investment Cost Value shown in the
balance sheet
<S> <C> <C> <C>
Fixed maturities:
Held to maturity:
United States Government and
government agencies and
authorities (a) $ 19,863 $ 19,914 $ 19,863
States, municipalities and
political subdivisions 150 148 150
All other corporate bonds 622,567 663,085 622,567
Total held to maturity 642,580 683,147 642,580
Available for sale:
United States Government and
government agencies and
authorities (b) 145,261 148,087 148,087
States, municipalities and
political subdivisions 105 115 115
All other corporate bonds 431,703 453,096 453,096
Total available for sale 577,069 $ 601,298 601,298
Mortgage loans on real estate 158,730 XXXXXXXXXX 158,730
Policy loans 18,035 XXXXXXXXXX 18,035
Other investments 1,915 1,915
Total investments $ 1,398,329 XXXXXXXXXX $ 1,422,558
(a) - Includes mortgage-backed securities with a cost and market value of $14,860 and $14,712,
respectively.
(b) - Includes mortgage-backed securities with a cost and market value of $145,261 and $148,087,
respectively.
</TABLE>
<PAGE>
PAGE 2
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1995
Column A Column B Column C Column D Column E Column F
Segment Deferred Future Unearned Other policy Premium
policy policy premiums claims and revenue
acquisition benefits, benefits
cost losses, payable
claims and
loss
expenses
<S> <C> <C> <C> <C> <C>
Annuities $ 65,283 $1,109,167 $ - $ 2,222 $ -
Life, DI and
Long--term Care
Insurance 44,517 178,952 - 1,422 9,280
Total $ 109,800 $1,288,119 $ - $ 3,644 $9,280
Column A Column G Column H Column I Column J Column K
Segment Net Benefits, Amortization Other Premiums
investment claims, of deferred operating written
income losses and policy expenses
settlement acquisition
expenses costs
Annuities $ 95,323 $ 171 $ 9,138 $ 6,908 N/A
Life, DI and
Long--term Care
Insurance 15,601 9,689 3,947 566 N/A
Total $ 110,924 $ 9,860 $ 13,085 $ 7,474 N/A
</TABLE>
<PAGE>
PAGE 3
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1994
Column A Column B Column C Column D Column E Column F
Segment Deferred Future Unearned Other policy Premium
policy policy premiums claims and revenue
acquisition benefits, benefits
cost losses, payable
claims and
loss
expenses
<S> <C> <C> <C> <C> <C>
Annuities $ 61,442 $1,087,367 $ - $ 1,348 $ -
Life, DI and
Long-term Care
Insurance 38,636 168,417 - 1,869 7,846
Total $ 100,078 $1,255,784 $ - $ 3,217 $7,846
Column A Column G Column H Column I Column J Column K
Segment Net Benefits, Amortization Other Premiums
investment claims, of deferred operating written
income losses and policy expenses
settlement acquisition
expenses costs
Annuities $ 92,583 $ 81 $ 9,392 $ 4,765 N/A
Life, DI and
Long-term Care
Insurance 15,560 10,214 3,602 3,594 N/A
Total $ 108,143 $ 10,295 $ 12,994 $ 8,359 N/A
</TABLE>
<PAGE>
PAGE 4
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1993
Column A Column B Column C Column D Column E Column F
Segment Deferred Future Unearned Other policy Premium
policy policy premiums claims and revenue
acquisition benefits, benefits
cost losses, payable
claims and
loss
expenses
<S> <C> <C> <C> <C> <C>
Annuities $ 53,300 $1,059,005 $ - $ 1,707 $ -
Life, DI and
Long-term Care
Insurance 34,591 160,962 - 640 7,110
Total $ 87,891 $1,219,967 $ - $ 2,347 $7,110
Column A Column G Column H Column I Column J Column K
Segment Net Benefits, Amortization Other Premiums
investment claims, of deferred operating written
income losses and policy expenses
settlement acquisition
expenses costs
Annuities $ 93,943 $ 103 $ 7,707 $ 4,459 N/A
Life, DI and
Long-term Care
Insurance 16,204 6,733 2,727 3,193 N/A
Total $ 110,147 $ 6,836 $ 10,434 $ 7,652 N/A
</TABLE>
<PAGE>
PAGE 5
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE IV - REINSURANCE ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
Column A Column B Column C Column D Column E Column F
Gross amount Ceded to other Assumed from Net % of amount
companies other companies Amount assumed to net
<S> <C> <C> <C> <C> <C>
For the year ended
December 31, 1995
Life insurance
in force $ 3,110,745 $ 163,462 $ 392,106 $ 3,339,389 11.74%
Premiums:
Life insurance
& annuities $ 2,327 $ 185 $ -- $ 2,142 0.00%
DI & long-term care
insurance 7,221 83 -- 7,138 0.00%
Total premiums $ 9,548 $ 268 $ 0 $ 9,280 0.00%
For the year ended
December 31, 1994
Life insurance
in force $ 3,602,888 $ 162,956 $ 447,317 $ 3,887,249 11.51%
Premiums:
Life insurance
& annuities $ 2,219 $ 209 $ -- $ 2,010 0.00%
DI & long--term care
insurance 5,919 83 -- 5,836 0.00%
Total premiums $ 8,138 $ 292 $ 0 $ 7,846 0.00%
For the year ended
December 31, 1993
Life insurance
in force $ 2,933,830 $ 172,973 $ 512,555 $ 3,273,412 15.66%
Premiums:
Life insurance
& annuities $ 2,250 $ 187 $ -- $ 2,063 0.00%
DI & long--term care
insurance 5,140 93 -- 5,047 0.00%
Total premiums $ 7,390 $ 280 $ 0 $ 7,110 0.00%
</TABLE>
<PAGE>
PAGE 6
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
Column A Column B Column C Column D Column E
Additions
--------------
Balance at Charged to
Description Beginning Charged to Other Accounts- Deductions- Balance at End
of Period Costs & Expenses Describe Describe of Period
<S> <C> <C> <C> <C> <C>
For the year ended
December 31, 1995
- ------------------------------
Reserve for
Mortgage Loans $ 445 $ 0 $0 $0 $ 445
Reserve for
Fixed Maturities $ 0 $ 26 $0 $0 $ 26
For the year ended
December 31, 1994
- ------------------------------
Reserve for
Mortgage Loans $ 445 $ 0 $0 $0 $ 445
Reserve for
Fixed Maturities $1,652 $(1,652) $0 $0 $ 0
For the year ended
December 31, 1993
- ------------------------------
Reserve for
Mortgage Loans $ 500 $ (55) $0 $0 $ 445
Reserve for
Fixed Maturities $1,159 $ 493 $0 $0 $1,652
</TABLE>
<PAGE>
PAGE 7
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the financial statements of IDS Life Insurance
Company of New York (a wholly owned subsidiary of IDS Life
Insurance Company) as of December 31, 1995 and 1994, and for each
of the three years in the period ended December 31, 1995, and have
issued our report thereon dated February 2, 1996 (included
elsewhere in this Registration Statement).
Our audits also included the financial statement schedules listed
in Item 24(a) of this Registration Statement. These schedules are
the responsibility of the Company's management. Our responsibility
is to express an opinion based on our audits.
In our opinion, the financial statement schedules referred to
above, when considered in relation to the basic financial
statements taken as a whole, present fairly, in all material
respects, the information set forth therein.
Ernst & Young LLP
Minneapolis, Minnesota
February 2, 1996
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<NAME> IDS Life of New York Accounts 4, 10, 11, 5, 6 and 9
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<PERIOD-TYPE> YEAR
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 580710411
<INVESTMENTS-AT-VALUE> 657622101
<RECEIVABLES> 1244406
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 658866507
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (1687364)
<TOTAL-LIABILITIES> (1687364)
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 273006220
<SHARES-COMMON-PRIOR> 227639564
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 657179143
<DIVIDEND-INCOME> 32921769
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> (5641110)
<NET-INVESTMENT-INCOME> 27280659
<REALIZED-GAINS-CURRENT> 190060
<APPREC-INCREASE-CURRENT> 84652338
<NET-CHANGE-FROM-OPS> 112123057
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 56908427
<NUMBER-OF-SHARES-REDEEMED> (11541771)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 199775627
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (5641110)
<AVERAGE-NET-ASSETS> 557291329
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<PAGE>
<ARTICLE> 7
<LEGEND>
<CIK>
<NAME> IDS Life Insurance Company of New York
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLAR
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-START> JAN-01-1995 JAN-01-1994
<PERIOD-END> DEC-31-1995 DEC-31-1994
<PERIOD-TYPE> YEAR YEAR
<EXCHANGE-RATE> 1 1
[DEBT-HELD-FOR-SALE] 601298 455103
[DEBT-CARRYING-VALUE] 642580 686483
[DEBT-MARKET-VALUE] 683147 653080
[EQUITIES] 10 135
[MORTGAGE] 158730 164916
<REAL-ESTATE 0 0
[TOTAL-INVEST] 1422558 1322925
[CASH] 0 5262
[RECOVER-REINSURE] 40 3
[DEFERRED-ACQUISITION] 109800 100078
[TOTAL-ASSETS] 2281250 1957574
[POLICY-LOSSES] 1288119 1255784
[UNEARNED-PREMIUMS] 0 0
[POLICY-OTHER] 0 0
[POLICY-HOLDER-FUNDS] 3644 3217
[NOTES-PAYABLE] 0 0
[COMMON] 2000 2000
[PREFERRED-MANDATORY] 0 0
[PREFERRED] 0 0
[OTHER-SE] 216583 169721
[TOTAL-LIABILITY-AND-EQUITY] 2281250 1957574
[PREMIUMS] 9280 7846
[INVESTMENT-INCOME] 110924 108143
[INVESTMENT-GAINS] 1548 957
[OTHER-INCOME] 19429 16170
[BENEFITS] 78490 75313
[UNDERWRITING-AMORTIZATION] 13085 12994
[UNDERWRITING-OTHER] 7474 8359
[INCOME-PRETAX] 42132 36449
[INCOME-TAX] 14745 12794
[INCOME-CONTINUING] 27387 23655
[DISCONTINUED] 0 0
[EXTRAORDINARY] 0 0
[CHANGES] 0 0
[NET-INCOME] 27387 23655
[EPS-PRIMARY] 0 0
[EPS-DILUTED] 0 0
[RESERVE-OPEN] 1702 450
[PROVISION-CURRENT] 7902 9789
[PROVISION-PRIOR] 0 0
[PAYMENTS-CURRENT] 8462 8537
[PAYMENTS-PRIOR] 0 0
[RESERVE-CLOSE] 1142 1702
[CUMULATIVE-DEFICIENCY] 0 0
</TABLE>
<PAGE>
PAGE 1
IDS LIFE INSURANCE COMPANY OF NEW YORK
POWER OF ATTORNEY
City of Albany
State of New York
Each of the undersigned, as officers and/or directors of the
below listed unit investment trusts that previously have filed
registration statements and amendments thereto pursuant to the
requirements of the Securities Act of 1933 and the Investment
Company Act of 1940 with the Securities and Exchange Commission:
1933 Act 1940 Act
Reg. Number Reg. Number
IDS Life of New York 4, 5, 6, 9, 10,
11, 12, 13 and 14
IDS Life of New York Employee Benefit
Annuity 33-52567 811-3500
IDS Life of New York 4, 5, 6, 9, 10,
11, 12, 13 and 14
IDS Life of New York Flexible Annuity 33-4174 811-3500
IDS Life of New York 4, 5, 6, 9, 10,
11, 12, 13 and 14
IDS Life of New York Variable
Retirement and Combination Retirement
Annuity 2-78194 811-3500
IDS Life of New York Account 8
Flexible Premium Variable Life
Insurance Policy 33-15290 811-5213
IDS Life of New York Account SBS
IDS Life Symphony Annuity 33-45776 811-6560
IDS Life of New York Account 7
Single Premium Variable Life
Insurance Policy 33-10334 811-4913
hereby constitutes and appoints William A. Stoltzmann, Mary Ellyn
Minenko, Eileen J. Newhouse and Timothy S. Meehan or any one of
them, as her or his attorney-in-fact and agent, to sign for her or
him in her or his name, place and stead any and all filings,
applications (including applications for exemptive relief),
periodic reports, registration statements (with all exhibits and
other documents required or desirable in connection therewith)
other documents, and amendments thereto and to file such filings,
applications, periodic reports, registration statements other
documents, and amendments thereto with the Securities and Exchange
Commission, and any necessary states, and grants to any or all of
them the full power and authority to do and perform each and every
act required or necessary in connection therewith.
<PAGE>
PAGE 2
Dated the 16th day of April, 1996.
/s/ John C. Boeder /s/ Michael P. Monaco
John C. Boeder Michael P. Monaco
/s/ Roger C. Corea /s/ Stephen P. Norman
Roger C. Corea Stephen P. Norman
/s/ Charles A. Cuccinello /s/ Louise M. Parent
Charles A. Cuccinello Louise M. Parent
/s/ Milton R. Fenster /s/ Carl N. Platou
Milton R. Fenster Carl N. Platou
/s/ Robert A. Hatton /s/ Gordon H. Ritz
Robert A. Hatton Gordon H. Ritz
/s/ Richard W. Kling /s/ Michael R. Woodward
Richard W. Kling Michael R. Woodward
/s/ Edward Landes
Edward Landes
