<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. 5 (File No. 33-52567) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 6 (File No. 811-3500) X
--- --
IDS LIFE OF NEW YORK ACCOUNT 4
IDS LIFE OF NEW YORK ACCOUNT 5
IDS LIFE OF NEW YORK ACCOUNT 6
IDS LIFE OF NEW YORK ACCOUNT 9
IDS LIFE OF NEW YORK ACCOUNT 10
IDS LIFE OF NEW YORK ACCOUNT 11
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
on May 1, 1997 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
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 19, 1997.
<PAGE>
PAGE 2
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.
<TABLE>
<CAPTION>
PART A PART B
Section in
Section Statement of
Item No. in Prospectus Item No. Additional Information
<S> <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
11(a) Surrendering a certificate
(b) NA
(c) Surrendering a certificate
(d) Buying the contract and
certificate
(e) The Employee Benefit Annuity in brief
</TABLE>
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PAGE 3
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.
<PAGE>
PAGE 4
IDS Life of New York Employee Benefit Annuity
Prospectus
May 1, 1997
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 (AEFC).
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: 800-541-2215.
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 read these
documents carefully and keep them 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) (incorporated by reference into this
prospectus) filed with the Securities and Exchange Commission (SEC) 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
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
IDS Life 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
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PAGE 6
TSA special surrender provisions
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.
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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 - 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.20)
<PAGE>
PAGE 9
o one fixed account, which earns interest at rates that are
adjusted periodically by IDS Life of New York. (p.26)
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.27)
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.36)
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.39)
Changing ownership: Restrictions apply concerning change of ownership of rights
under a contract or certificate. (p.44)
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.45)
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. During the
annuity payout period, you cannot be invested in more than five variable
accounts at any one time unless we agree otherwise. (p.46)
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.51)
Certificate charges: Your certificate is subject to an annual administrative
charge of $30, a 1% mortality and expense risk fee and a surrender charge.
(p.30)
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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."
Contract Owner Expenses
Surrender charge*
(Contingent deferred sales charge as percentage amount surrendered)
- -------------------------------------
Certificate year Percentage
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
Annual administrative charge: $30
(Deducted from certificate value of each Certificate)
Separate account annual expenses
(As a percentage of average daily net assets)
Mortality and expense risk fee: 1%
*The surrender charge is further limited so that it will never exceed 8.5% or
aggregate purchase payments made to the certificate.
Annual operating expenses of underlying mutual funds (Management fees and other
expenses deducted as a percentage of average net assets as follows)
<TABLE>
<CAPTION>
IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life
Aggressive International Capital IDS Life Special IDS Life Growth Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management fees .60 .82 .60 .59 .59 .50 .63 .84 .63
Other expenses .09 .16 .08 .07 .10 .06 .22 .62 .54
Total* .69 .98 .68 .66 .69 .56 .85 1.46 1.17
</TABLE>
* Annualized operating expenses of underlying mutual funds at Dec.
31, 1996.
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:
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PAGE 11
<TABLE>
<CAPTION>
IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life
Aggressive International Capital IDS Life Special IDS Life Growth Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 year $101.42 $104.15 $101.32 $101.13 $101.42 $100.19 $102.93 $108.68 $105.94
3 years 146.27 154.51 145.98 145.41 146.27 142.56 150.82 168.04 159.88
5 years 182.30 196.25 181.81 180.84 182.30 175.99 190.02 218.98 205.30
10 years 245.26 275.30 244.21 242.10 245.26 231.51 261.94 323.17 294.52
</TABLE>
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:
<TABLE>
<CAPTION>
IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life
Aggressive International Capital IDS Life Special IDS Life Growth Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 year $ 18.93 $ 21.90 $ 18.83 $ 18.62 $ 18.93 $ 17.60 $ 20.57 $ 26.82 $ 23.85
3 years 58.58 67.58 58.27 57.64 58.58 54.53 63.55 82.35 73.44
5 years 100.73 115.85 100.20 99.15 100.73 93.89 109.09 140.48 125.66
10 years 218.10 248.92 217.02 214.86 218.10 204.00 235.21 298.02 268.63
</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
.157% 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,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
- -----------------------------------------------------------------------------------------------------------------------------
Account 4 (investing in shares
of Capital Resource Fund)
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at
beginning of year ............ $4.35 $3.43 $3.43 $3.35 $3.25 $2.24 $2.25 $1.78 $1.61 $1.44
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ...................... $4.64 $4.35 $3.43 $3.43 $3.35 $3.25 $2.24 $2.25 $1.78 $1.61
- -----------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................ 47,283 44,849 38,283 30,089 21,677 13,591 10,058 8,345 7,347 7,342
- -----------------------------------------------------------------------------------------------------------------------------
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 .......... $1.38 $1.25 $1.29 $0.98 $1.00 - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of period .................... $1.50 $1.38 $1.25 $1.29 $0.98 - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
<PAGE>
PAGE 12
Number of accumulation units12
outstanding at end of period
(000 omitted) ................ 77,830 63,576 51,480 21,650 3,421 - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ........... 1.00% 1.00% 1.00% 1.00% 1.00% - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
Account 112 (investing in shares
of Aggressive Growth Fund)
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at
beginning of period .......... $1.47 $1.12 $1.21 $1.08 $1.00 - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of period .................... $1.69 $1.47 $1.12 $1.21 $1.08 - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of period
(000 omitted) ................ 77,673 62,233 45,347 19,430 5,961 - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ........... 1.00% 1.00% 1.00% 1.00% 1.00% - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
Account 5 (investing in shares of
Special Income Fund)
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at
beginning of year ............ $3.53 $2.91 $3.06 $2.67 $2.46 $2.12 $2.05 $1.90 $1.74 $1.74
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ...................... $3.73 $3.53 $2.91 $3.06 $2.67 $2.46 $2.12 $2.05 $1.90 $1.74
- -----------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................ 24,424 23,903 21,936 23,259 16,710 12,228 10,315 9,301 7,891 8,093
- -----------------------------------------------------------------------------------------------------------------------------
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 ............ $1.99 $1.91 $1.86 $1.83 $1.80 $1.71 $1.61 $1.49 $1.40 $1.33
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ...................... $2.07 $1.99 $1.91 $1.86 $1.83 $1.80 $1.71 $1.61 $1.49 $1.40
- -----------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................ 5,927 5,445 3,794 4,113 5,378 7,253 6,487 5,493 2,836 2,125
- -----------------------------------------------------------------------------------------------------------------------------
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 ................ 3.78% 4.00% 4.23% 1.90% 1.77% 3.24% 6.20% 6.80% 7.30% 5.73%
- -----------------------------------------------------------------------------------------------------------------------------
Compound yield3 .............. 3.85% 4.08% 4.32% 1.92% 1.79% 3.29% 6.39% 7.03% 7.57% 5.90%
- -----------------------------------------------------------------------------------------------------------------------------
Account 94 (Investing in shares
of Managed Fund)
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at
beginning of year ............ $2.57 $2.09 $2.21 $1.98 $1.86 $1.45 $1.42 $1.14 $1.06 $1.01
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ...................... $2.96 $2.57 $2.09 $2.21 $1.98 $1.86 $1.45 $1.42 $1.14 $1.06
- -----------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................ 75,219 72,999 66,800 50,761 31,828 20,105 15,292 12,248 11,920 12,219
- -----------------------------------------------------------------------------------------------------------------------------
<PAGE>
PAGE 13
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 125 (Investing in shares
of Global Yield Fund)
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at
beginning of year ............ $1.00 -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ...................... $1.07 -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................ 2,311 -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ........... 1.00% -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Account 135 (Investing in shares
of Income Advantage Fund)
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at
beginning of year ............ $1.00 -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ...................... $1.05 -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................ 4,671 -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ........... 1.00% -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Account 145 (Investing in shares
of Growth Dimensions Fund)
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at
beginning of year ............ $1.00 -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at end
of year ...................... $1.11 -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Number of accumulation units
outstanding at end of year
(000 omitted) ................ 27,817 -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of operating expense to
average net assets ........... 1.00% -- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
1 Account 10 commenced operations on Jan. 13, 1992.
2 Account 11 commenced operations on Jan. 13, 1992.
3 Net of annual contract administrative fee and mortality and expense risk fee.
4 Account 9 commenced operations on April 30, 1986.
5 Account 12, 13 and 14 commenced operations on April 30, 1996.
Financial statements
The SAI dated May 1, 1997, contains:
o complete audited financial statements of the variable accounts
including:
- statements of net assets as of Dec. 31, 1996;
- statements of operations for the year ended Dec. 31, 1996,
except for IDS Life of New York Accounts 12, 13, and 14 which
are for the period April 30, 1996 (commencement of operations)
to Dec. 31, 1996;
and
<PAGE>
PAGE 14
- statements of changes in net assets for the years ended Dec.
31, 1996 and Dec. 31, 1995, except for IDS Life of New York
Accounts 12, 13, and 14 which are for the period April 30, 1996
(commencement of operations) to Dec. 31, 1996.
o complete audited financial statements for IDS Life of New York
including:
- balance sheets as of Dec. 31, 1996 and Dec. 31, 1995; and
- related statements of income and cash flows for each of the
three years in the period ended Dec. 31, 1996.
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 IDS Life 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 average annual 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
administrative charge, mortality and expense risk fee and surrender charge,
assuming a surrender at the end of the illustrated period. Optional aggregate
total return quotations may be made that do not
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PAGE 15
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 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
IDS Life Aggressive Growth Fund 11 Oct. 8, 1991
IDS Life International Equity Fund 10 Oct. 8, 1991
IDS Life Capital Resource Fund 4 Nov. 12, 1981
IDS Life Managed Fund 9 Feb. 12, 1986
IDS Life Special Income Fund 5 Nov. 12, 1981
IDS Life Moneyshare Fund 6 Nov. 12, 1981
IDS Life Growth Dimensions Fund 14 April 17, 1996
IDS Life Global Yield Fund 12 April 17, 1996
IDS Life 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.
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PAGE 16
The funds
IDS Life 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.
IDS Life 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.
IDS Life 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.
IDS Life 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.
IDS Life 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.
IDS Life 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.
IDS Life 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.
IDS Life 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.
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PAGE 17
IDS Life 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.
More comprehensive information regarding each fund is contained in the fund
prospectus. You should read the fund prospectus and consider carefully, and on a
continuing basis, which fund or combination of funds is best suited to your
long-term investment needs. There is no assurance that the investment objectives
of the funds will be attained nor is there any guarantee that the certificate
value will equal or exceed the total purchase payments made. Some funds may
involve more risk than others--please monitor your investments accordingly.
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 that they may provide additional
guidance concerning how many variable accounts may be offered and how many
exchanges among variable accounts may be allowed before the participant is
considered to have investment control and thus is currently taxed on income
earned within variable account assets. We do not know at this time what the
additional guidance will be or when action will be taken. We reserve the right
to modify the contract/certificate, as necessary, to ensure that the participant
will not be subject to current taxation as the owner of the variable account
assets.
We intend to comply with all federal tax laws to ensure that the
contract/certificate continues to qualify as an annuity for federal income tax
purposes. We reserve the right to modify the contract/certificate as necessary
to comply with any new tax laws.
IDS Life is the investment manager and AEFC is the investment advisor for each
of the funds. IDS International, Inc., a wholly-owned subsidiary of AEFC, is the
sub-investment advisor for IDS Life International Equity Fund. The investment
manager and advisors 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 may 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,
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PAGE 18
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. Please remember that investment
performance, expenses and deduction of certain charges affect accumulation unit
value.
When you enroll in the certificate, you can select:
o the account(s) in which you want to invest;
o the date you want to start receiving annuity payouts (the
retirement date); and
o a beneficiary.
The owner selects the frequency with which it will make purchase payments.
If the application and enrollment forms are complete, we will process them
within two business days after we receive them at our Albany office. 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 business 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 after we receive and accept your
payments at our Albany office.
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.
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PAGE 19
To avoid IRS penalty taxes, the retirement date generally must be:
o on or after the date you reach age 59 1/2; and
o for all other qualified annuities, by April 1 of the year
following the calendar year when the annuitant reaches age 70 1/2 or, if
later, retires; except that 5% business owners may not select a retirement
date that is later than April 1 of the year following the calendar year when
they 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
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.
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PAGE 20
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. If, as a group,
IDS Life of New York annuitants outlive the life expectancy we have assumed in
our actuarial tables, then we must take money from our general assets to meet
our obligations. If, as a group, IDS Life of New York annuitants do not live as
long as expected, we could profit from the mortality risk fee.
Expense risk arises because the administrative charge cannot be increased and
may not cover our expenses. Any deficit would have to be made up from our
general assets.
We may use any profits realized from the mortality and expense risk fee for any
proper corporate purpose, including, among others, payment of distribution
(selling) 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:
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PAGE 21
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.
Example of surrender charge:
Owner requests...$1,000 partial surrender = $1,052.63
Total amount surrendered................... $1,052.63
x 0.05
Total surrender charge..................... $ 52.63
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.
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 the 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
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PAGE 22
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:
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.
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PAGE 23
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.
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.
Because this strategy involves continuous investing, your success with
dollar-cost averaging will depend upon your willingness to continue to invest
regularly through periods of low price levels. Dollar-cost averaging can be an
effective way 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
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PAGE 24
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
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)
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PAGE 25
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.
Receiving payment when a participant requests a surrender
By regular or express mail:
o Payable to participant;
o Mailed to address of record.
Note: You will be charged a fee if you request express mail
delivery.
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PAGE 26 By wire:
o Request that payment be wired to your bank;
o Bank account must be in the same ownership as your contract; and
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.")
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.
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PAGE 27
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 the retirement date, 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, or other date
as permitted by the code; and
o the payout period does not extend beyond the beneficiary's life
or life expectancy.
When paying the beneficiary, we will determine the certificate's value at the
next close of business after our death claim requirements are fulfilled.
Interest, if any, will be paid from 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
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PAGE 28
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 you elect. This
election will determine the length of the payout period to the beneficiary if
the annuitant should die before the elected period has expired. The guaranteed
payout period is calculated from the retirement date. If the annuitant outlives
the elected guaranteed payout period, payouts will continue until the
annuitant's death.
o Plan C - Life annuity - installment refund: Monthly payouts are made until the
annuitant's death, with our guarantee that payouts will continue for some period
of time. Payouts will be made for at least the number of months determined by
dividing the amount applied under this option by the first monthly payout,
whether or not the annuitant is living.
o Plan D - Joint and last survivor life annuity - no refund: Monthly payouts are
made while both the annuitant and a joint annuitant are living. If either
annuitant dies, monthly payouts
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PAGE 29
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 that you elect. 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. (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 according to our records.
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.
<PAGE>
PAGE 30
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 after separation from service, 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 during or after 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.
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
<PAGE>
PAGE 31
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.
The state may also impose withholding requirements similar to the federal
withholding described above. Therefore, 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.
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.
<PAGE>
PAGE 32
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 AEFC. American
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 AEFC) 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.
<PAGE>
PAGE 33
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 7,800
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
Prospectus......................................... 8
Financial statements - IDS Life of New York Accounts 4, 5, 6, 9, 10, 11, 12, 13
and 14 IDS Life Insurance Company of New York
- -------------------------------------------------------------------
Please check the appropriate box to receive a copy of the Statement of
Additional Information for:
_____ IDS Life of New York Employee Benefit Annuity
_____ IDS Life Retirement Annuity Mutual Funds
Please return this request to:
IDS Life of New York Annuity Service
IDS Life Insurance Company of New York
P.O. Box 5144
Albany, NY 12205
<PAGE>
PAGE 34
Your name _______________________________________________________
Address _________________________________________________________
City ______________________ State ______________ Zip ___________
<PAGE>
PAGE 35
STATEMENT OF ADDITIONAL INFORMATION
for
EMPLOYEE BENEFIT ANNUITY
IDS LIFE OF NEW YORK ACCOUNTS 4, 5, 6, 9, 10, 11, 12, 13 and 14
May 1, 1997
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 May 1, 1997, is not a
prospectus. It should be read together with the accounts' prospectus, dated May
1, 1997, 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 36
TABLE OF CONTENTS
Performance Information.......................................p. 3
Calculating Annuity Payouts...................................p. 6
Rating Agencies...............................................p. 7
Principal Underwriter.........................................p. 7
Independent Auditors..........................................p. 8
Prospectus....................................................p. 8
Financial Statements
- IDS Life of New York Accounts 4, 5, 6, 9, 10, 11, 12, 13 and 14
- IDS Life Insurance Company of New York
<PAGE>
PAGE 37
PERFORMANCE INFORMATION
Calculation of yield for Account 6
IDS Life of New York Account 6, which invests in IDS Life Moneyshare Fund,
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, 1996, the account's annualized simple yield was 3.78% and its
compound yield was 3.85%.
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 38
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, 1996, the annualized yield for Account 5 was 7.68% for Account 12
2.79% and for Account 13 9.32%.
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 ten 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 average annual 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.
<PAGE>
PAGE 39
Average Annual Total Return For Period Ended: Dec. 31, 1996
Average Annual Total Return with Surrender
<TABLE>
<CAPTION>
Since
Account investing in: 1 Year 5 Year 10 Year Inception
- --------------------
IDS Life
<S> <C> <C> <C> <C>
Aggressive Growth Fund (1/92)* 7.96% --% --% 10.09%
Capital Resource Fund (10/81) -0.21 6.21 12.27 --
International Equity Fund (1/92) 1.38 -- -- 7.33
Managed Fund (4/86) 8.72 8.67 11.28 --
Moneyshare Fund (10/81) -3.09 1.61 4.44 --
Special Income Fund (10/81) -1.20 7.45 7.76 --
Growth Dimensions Fund (4/96) -- -- -- 3.83
Global Yield Fund (4/96) -- -- -- 0.14
Income Advantage Fund (4/96) -- -- -- -2.05
Average Annual Total Return without Surrender
Since
Account Investing in: 1 Year 5 Year 10 Year Inception
- --------------------
IDS Life
Aggressive Growth Fund (1/92) 14.96% --% --% 11.03%
Capital Resource Fund (10/81) 6.79 7.29 12.27 --
International Equity Fund (1/92) 8.38 -- -- 8.37
Managed Fund (4/86) 15.72 9.66 11.28 --
Moneyshare Fund (10/81) 3.91 2.89 4.44 --
Special Income Fund (10/81) 5.80 8.48 7.76 --
Growth Dimensions Fund (4/96) -- -- -- 10.83
Global Yield Fund (4/96) -- -- -- 7.14
Income Advantage Fund (4/96) -- -- -- 4.95
</TABLE>
* inception dates of the funds are shown in parentheses
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, CDA Technologies, 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, Morningstar, 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 40
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 o subtracting the percentage factor representing the
mortality and expense risk fee from the result.
<PAGE>
PAGE 41
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 1996, 1995 and 1994,
aggregated $551,374, $464,724, and $269,275, respectively. Commissions paid by
IDS Life of New York for 1996, 1995 and 1994, aggregated $1,036,511, $681,615,
and $1,130,352, respectively. The surrender charges were applied toward payment
of commissions.
<PAGE>
PAGE 42
INDEPENDENT AUDITORS
The financial statements of IDS Life of New York Accounts 4, 5, 6, 9, 10, 11,
12, 13 and 14, including the statements of net assets as of December 31, 1996,
and the related statements of operations for the year then ended, except for IDS
Life of New York Accounts 12, 13 and 14 which are for the period April 30, 1996
(commencement of operations) to December 31, 1996 and the related statements of
changes in net assets for each of the two years in the period then ended, except
for IDS Life of New York Accounts 12, 13 and 14 which are for the period April
30, 1996 (commencement of operations) to December 31, 1996 and the financial
statements of IDS Life Insurance Company of New York as of December 31, 1996 and
1995, and for each of the three years in the period ended December 31, 1996,
appearing in this SAI, have been audited by Ernst & Young LLP, independent
auditors, as stated in their reports appearing herein.
PROSPECTUS
The prospectus dated May 1, 1997, is hereby incorporated in this Statement of
Additional Information by reference.
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- -------------------------------------------------------------------------------------------------------------------------
Statements of Net Assets Dec. 31, 1996
Segregated Asset Account
-------------------------------------------------------------------------
Assets 4 10 11 5 6
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investments in shares of mutual funds,
at market value:
IDS Life Capital Resource Fund -
9,296,157 shares at net asset value
of $23.68 per share (cost $221,823,927) ... $220,112,291 $ -- $ -- $ -- $ --
IDS Life International Equity Fund -
8,460,137 shares at net asset value
of $13.77 per share (cost $104,618,790) ... -- 116,517,540 -- -- --
IDS Life Aggressive Growth Fund -
8,375,263 shares at net asset value
of $15.66 per share (cost $108,479,787) ... -- -- 131,159,892 -- --
IDS Life Special Income Fund -
7,690,600 shares at net asset value
of $11.90 per share (cost $87,503,384) .... -- -- -- 91,492,614 --
IDS Life Moneyshare Fund, Inc. -
12,366,654 shares at net asset value
of $1.00 per share (cost $12,364,374) ..... -- -- -- -- 12,366,659
IDS Life Manged Fund, Inc. -
13,381,220 shares at net asset value
of $16.77 per share (cost $185,133,073) ... -- -- -- -- --
IDS Life Global Yield Fund -
236,119 shares at net asset value
of $10.49 per share (cost $2,399,519) ..... -- -- -- -- --
IDS Life Income Advantage Fund -
488,904 shares at net asset value
of $10.04 per share (cost $4,830,882) ..... -- -- -- -- --
IDS Life Growth Dimensions Fund -
2,783,508 shares at net asset value
of $11.11 per share (cost $29,561,245) .... -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
220,112,291 116,517,540 131,159,892 91,492,614 12,366,659
- ------------------------------------------------------------------------------------------------------------------------
Dividends receivable ........................ -- -- -- 575,496 49,582
Accounts receivable from IDS Life of New York
for contract purchase payments .............. 51,509 33,654 25,757 6,414 452,379
Receivable from mutual funds for
share redemptions ........................... 282,812 84,551 83,943 44,198 --
- ------------------------------------------------------------------------------------------------------------------------
Total assets ................................ 220,446,612 116,635,745 131,269,592 92,118,722 12,868,620
- ------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------
Payable to IDS Life of New York for:
Mortality and expense risk fee .............. 193,324 101,548 113,945 80,388 10,329
Contract terminations ....................... 282,812 84,551 83,943 44,198 --
Payable to mutual funds for investments
purchased ................................ 51,509 33,655 25,756 501,522 492,633
- ------------------------------------------------------------------------------------------------------------------------
Total liabilities ........................... 527,645 219,754 223,644 626,108 502,962
- ------------------------------------------------------------------------------------------------------------------------
Net assets applicable to contracts in
accumulation period ...................... 219,568,659 116,414,351 130,982,792 91,167,981 12,263,241
Net assets applicable to contracts in
payment period ........................... 350,308 1,640 63,156 324,633 102,417
- ------------------------------------------------------------------------------------------------------------------------
Total net assets ............................ $219,918,967 $116,415,991 $131,045,948 $ 91,492,614 $ 12,365,658
- ------------------------------------------------------------------------------------------------------------------------
Accumulation units outstanding .............. 47,282,795 77,830,409 77,672,683 24,424,365 5,926,901
- ------------------------------------------------------------------------------------------------------------------------
Net asset value per accumulation unit ...... $4.64 $1.50 $1.69 $3.73 $2.07
- ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ------------------------------------------------------------------------------------------------------------------------
Statements of Net Assets (continued) Dec. 31, 1996
Segregated Asset Account Combined
---------------------------------------------------------- Variable
9 12 13 14 Account
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investments in shares of mutual funds,
at market value:
IDS Life Capital Resource Fund -
9,296,157 shares at net asset value
of $23.68 per share (cost $221,823,927) ... $ -- $ -- $ -- $ -- $220,112,291
IDS Life International Equity Fund -
8,460,137 shares at net asset value
of $13.77 per share (cost $104,618,790) ... -- -- -- -- 116,517,540
IDS Life Aggressive Growth Fund -
8,375,263 shares at net asset value
of $15.66 per share (cost $108,479,787) ... -- -- -- -- 131,159,892
IDS Life Special Income Fund -
7,690,600 shares at net asset value
of $11.90 per share (cost $87,503,384) .... -- -- -- -- 91,492,614
IDS Life Moneyshare Fund, Inc. -
12,366,654 shares at net asset value
of $1.00 per share (cost $12,364,374) ..... -- -- -- -- 12,366,659
IDS Life Manged Fund, Inc. -
13,381,220 shares at net asset value
of $16.77 per share (cost $185,133,073) ... 224,451,184 -- -- -- 224,451,184
IDS Life Global Yield Fund -
236,119 shares at net asset value
of $10.49 per share (cost $2,399,519) ..... -- 2,477,817 -- -- 2,477,817
IDS Life Income Advantage Fund -
488,904 shares at net asset value
of $10.04 per share (cost $4,830,882) ..... -- -- 4,906,891 -- 4,906,891
IDS Life Growth Dimensions Fund -
2,783,508 shares at net asset value
of $11.11 per share (cost $29,561,245) .... -- -- -- 30,924,903 30,924,903
- ------------------------------------------------------------------------------------------------------------------------
224,451,184 2,477,817 4,906,891 30,924,903 834,409,791
- ------------------------------------------------------------------------------------------------------------------------
Dividends receivable ........................ -- 5,376 35,654 -- 666,108
Accounts receivable from IDS Life of New York
for contract purchase payments .............. 95,182 8,381 11,055 15,035 699,366
Receivable from mutual funds for
share redemptions ........................... 135 -- -- 33,074 528,713
- ------------------------------------------------------------------------------------------------------------------------
Total assets ................................ 224,546,501 2,491,574 4,953,600 30,973,012 836,303,978
- ------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------
Payable to IDS Life of New York for:
Mortality and expense risk fee .............. 196,435 2,050 4,121 25,400 727,540
Contract terminations ....................... 135 -- -- 33,074 528,713
Payable to mutual funds for investments
purchased ................................ 95,182 11,707 42,586 15,036 1,269,586
- ------------------------------------------------------------------------------------------------------------------------
Total liabilities ........................... 291,752 13,757 46,707 73,510 2,525,839
- ------------------------------------------------------------------------------------------------------------------------
Net assets applicable to contracts in
accumulation period ...................... 222,678,072 2,474,841 4,906,893 30,822,712 831,279,542
Net assets applicable to contracts in
payment period ........................... 1,576,677 2,976 -- 76,790 2,498,597
- ------------------------------------------------------------------------------------------------------------------------
Total net assets ............................ $224,254,749 $ 2,477,817 $ 4,906,893 $ 30,899,502 $833,778,139
- ---------------------------------------------------------------------------------------------------------
Accumulation units outstanding .............. 75,218,566 2,311,440 4,671,075 27,817,069
- ---------------------------------------------------------------------------------------------------------
Net asset value per accumulation unit ...... $2.96 $1.07 $1.05 $1.11
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ----------------------------------------------------------------------------------------------------------------------------------
Statements of Operations Year ended Dec. 31, 1996
Segregated Asset Account
----------------------------------------------------------------------
Investment Income 4 10 11 5 6
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Dividend income from mutual funds ...................... $ 34,766,577 $ 4,041,729 $ 13,550,738 $ 6,849,609 $ 548,659
Mortality and expense risk fee ......................... 2,198,649 1,061,164 1,169,568 893,306 112,057
- ----------------------------------------------------------------------------------------------------------------------------------
Investment income (loss) - net ......................... 32,567,928 2,980,565 12,381,170 5,956,303 436,602
- ----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments - net
- ----------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on sales of investments
in mutual funds:
Proceeds from sales .................................... 13,175,154 879,002 1,327,697 5,967,130 7,658,767
Cost of investments sold ............................... 11,982,866 795,929 1,028,550 5,767,665 7,657,565
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments ....................... 1,192,288 83,073 299,147 199,465 1,202
- ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation of investments ............................ (19,655,157) 5,168,183 2,596,119 (968,877) (169)
- ----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments ......................... (18,462,869) 5,251,256 2,895,266 (769,412) 1,033
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase from operations ........................... $ 14,105,059 $ 8,231,821 $ 15,276,436 $ 5,186,891 $ 437,635
- ----------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- -------------------------------------------------------------------------------------------------------------------------------
Statements of Operations (continued) Year ended Dec. 31, 1996
Segregated Asset Account
------------------------------------------------------- Combined
Investment Income 9 12* 13* 14* Variable
Account
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Dividend income from mutual funds ...................... $19,241,896 $ 32,460 $ 133,975 $ 65,957 $79,231,600
Mortality and expense risk fee ......................... 2,096,584 11,631 15,866 81,681 7,640,506
- -------------------------------------------------------------------------------------------------------------------------------
Investment income (loss) - net ......................... 17,145,312 20,829 118,109 (15,724) 71,591,094
- -------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments - net
- -------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on sales of investments
in mutual funds:
Proceeds from sales .................................... 7,861,652 100,199 39,008 23,151 37,031,760
Cost of investments sold ............................... 6,472,998 98,943 38,701 22,402 33,865,619
- -------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments ....................... 1,388,654 1,256 307 749 3,166,141
- -------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation of investments ............................ 12,125,056 78,298 76,009 1,363,658 783,120
- -------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments ......................... 13,513,710 79,554 76,316 1,364,407 3,949,261
- -------------------------------------------------------------------------------------------------------------------------------
Net increase from operations ........................... $30,659,022 $ 100,383 $ 194,425 $ 1,348,683 $75,540,355
- -------------------------------------------------------------------------------------------------------------------------------
*For the period April 30, 1996 (commencement of operations) to Dec. 31, 1996.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ----------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
Segregated Asset Account
---------------------------------------------------------------------------------
Operations 4 10 11 5 6
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income (loss) - net ............... $ 32,567,928 $ 2,980,565 $ 12,381,170 $ 5,956,303 $ 436,602
Net realized gain on investments ............. 1,192,288 83,073 299,147 199,465 1,202
Net change in unrealized appreciation or
depreciation of investments .................. (19,655,157) 5,168,183 2,596,119 (968,877) (169)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase from operations ................. 14,105,059 8,231,821 15,276,436 5,186,891 437,635
- ----------------------------------------------------------------------------------------------------------------------------------
Contract Transactions
- ----------------------------------------------------------------------------------------------------------------------------------
Variable annuity contract purchase payments .. 20,330,907 12,049,591 13,404,656 10,398,139 8,607,758
Net transfers**............................... 1,600,158 12,202,696 15,280,912 (2,184,401) (6,469,416)
Loan repayments .............................. 202,501 103,529 109,247 54,947 63,917
Annuity payments ............................. (15,604) (2,155) (1,422) (15,209) --
Contract charges ............................. (202,297) (93,716) (100,503) (71,767) (7,431)
Contract terminations:
Surrender benefits ........................... (10,133,424) (3,283,391) (3,668,917) (5,387,735) (986,101)
Death benefits ............................... (1,010,404) (445,933) (490,164) (969,384) (148,200)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase from contract transactions........... 10,771,837 20,530,621 24,533,809 1,824,590 1,060,527
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets at beginning of year .............. 195,042,071 87,653,549 91,235,703 84,481,133 10,867,496
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year .................... $ 219,918,967 $ 116,415,991 $ 131,045,948 $ 91,492,614 $ 12,365,658
- ----------------------------------------------------------------------------------------------------------------------------------
Accumulation Unit Activity
- ----------------------------------------------------------------------------------------------------------------------------------
Units outstanding at beginning of year ....... 44,849,219 63,576,047 62,233,323 23,903,081 5,445,411
Contract purchase payments ................... 4,567,169 8,408,019 8,509,131 2,970,770 4,416,368
Net transfers**............................... 404,594 8,480,752 9,621,711 (594,109) (3,159,416)
Transfers for policy loans ................... 45,098 71,375 68,531 15,495 31,550
Contract charges ............................. (45,712) (65,492) (63,531) (20,385) (3,814)
Contract terminations:
Surrender benefits ........................... (2,293,619) (2,289,122) (2,326,635) (1,565,420) (731,034)
Death benefits ............................... (243,954) (351,170) (369,847) (285,067) (72,164)
- ----------------------------------------------------------------------------------------------------------------------------------
Units outstanding at end of year ............. 47,282,795 77,830,409 77,672,683 24,424,365 5,926,901
- ----------------------------------------------------------------------------------------------------------------------------------
**Includes transfer activity from (to) other Accounts and transfers (from) to IDS Life of New York for conversion from (to)
Fixed Account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ----------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued) Year ended Dec. 31, 1996
Segregated Asset Account
----------------------------------------------------------------- Combined
Operations 9 12* 13* 14* Variable
Account
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income (loss) - net ............... $ 17,145,312 $ 20,829 $ 118,109 $ (15,724) $ 71,591,094
Net realized gain on investments ............. 1,388,654 1,256 307 749 3,166,141
Net change in unrealized appreciation or
depreciation of investments .................. 12,125,056 78,298 76,009 1,363,658 783,120
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase from operations ................. 30,659,022 100,383 194,425 1,348,683 75,540,355
- ----------------------------------------------------------------------------------------------------------------------------------
Contract Transactions
- ----------------------------------------------------------------------------------------------------------------------------------
Variable annuity contract purchase payments .. 14,199,518 729,261 1,221,447 4,412,059 85,353,336
Net transfers**............................... 3,533,766 1,658,796 3,530,908 25,471,387 54,624,806
Loan repayments .............................. 250,240 515 663 11,905 797,464
Annuity payments ............................. (53,767) -- -- (1,152) (89,309)
Contract charges ............................. (185,940) (363) (773) (5,767) (668,557)
Contract terminations:
Surrender benefits ........................... (10,923,388) (10,775) (39,777) (337,613) (34,771,121)
Death benefits ............................... (1,123,893) -- -- -- (4,187,978)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase from contract transactions........... 5,696,536 2,377,434 4,712,468 29,550,819 101,058,641
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets at beginning of year .............. 187,899,191 -- -- -- 657,179,143
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year .................... $ 224,254,749 $ 2,477,817 $ 4,906,893 $ 30,899,502 $ 833,778,139
- ----------------------------------------------------------------------------------------------------------------------------------
Accumulation Unit Activity
- -----------------------------------------------------------------------------------------------------------------
Units outstanding at beginning of year ....... 72,999,139 -- -- --
Contract purchase payments ................... 5,336,610 723,874 1,249,285 4,300,482
Net transfers**............................... 1,346,249 1,611,211 3,491,927 23,898,488
Transfers for policy loans ................... 92,249 483 638 10,893
Contract charges ............................. (69,479) (348) (762) (5,376)
Contract terminations:
Surrender benefits ........................... (4,029,397) (23,780) (70,013) (387,418)
Death benefits ............................... (456,805) -- -- --
- -----------------------------------------------------------------------------------------------------------------
Units outstanding at end of year ............. 75,218,566 2,311,440 4,671,075 27,817,069
- -----------------------------------------------------------------------------------------------------------------
*For the period April 30, 1996 (commencement of operations) to Dec. 31, 1996.
**Includes transfer activity from (to) other Accounts and transfers (from) to IDS Life of New York for conversion from (to)
Fixed Account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- -------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets Year ended Dec. 31, 1995
Segregated Asset Account Combined
------------------------------------------------------------------------------------------ Variable
Operations 4 10 11 5 6 9 Annuity
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
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... (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 year............ 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 year............ $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 year.. 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 year......... 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 of New York for conversion from (to) Fixed Account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Organization
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14 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. Accounts 12, 13 and
14 were established on April 17, 1996 and commenced operations on April 30,
1996. IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14 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 nine
segregated asset accounts. Such funds are then invested in shares of nine 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.
Each Fund is registered under the Investment Company Act of 1940 as a
diversified, (non-diversified for Global Yield) open-end management investment
company. IDS Life Capital Resource Fund, IDS Life Special Income Fund and IDS
Life Moneyshare Fund, Inc. commenced operations on Oct. 13, 1981. IDS Life
Managed Fund, Inc. commenced operations on April 30, 1986. IDS Life Aggressive
Growth Fund and IDS Life International Equity Fund commenced operations on Jan.
13, 1992. IDS Life Global Yield Fund, IDS Life Income Advantage Fund and IDS
Life Growth Dimensions Fund commenced operations on April 30, 1996. 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; IDS Life of New
York Account 6 invests in the shares of IDS Life Moneyshare Fund, Inc.; IDS Life
of New York Account 9 invests in the shares of IDS Life Managed Fund, Inc.; IDS
Life of New York Account 12 invests in the shares of IDS Life Global Yield Fund;
IDS Life of New York Account 13 invests in the shares of IDS Life Income
Advantage Fund and IDS Life of New York Account 14 invests in the shares of IDS
Life Growth Dimension Fund.
IDS Life, parent company of IDS Life of New York, serves as manager, investment
adviser and underwriter for the underlying nine 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.
- --------------------------------------------------------------------------------
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,
b) Combination Retirement Annuity contract surrenders during the
first eleven years,
c) Employee Benefit Annuity Certificate surrenders during the first eleven
years, and
c) 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 $551,374 in 1996 and $464,724 in 1995. Such charges are not
an expense of the Accounts. They are deducted from contract surrender benefits
paid by IDS Life of New York.
<PAGE>
- --------------------------------------------------------------------------------
4. Investment Transactions
The Accounts' purchases of mutual fund shares (net of charges), including
reinvestment of dividend distributions, were as follows:
<TABLE>
Year Ended Dec. 31,
Account Investment 1996 1995
- -----------------------------------------------------------------------------
<S> <C> <C>
4 IDS Life Capital Resource Fund........ $ 56,554,274 $ 45,150,464
10 IDS Life International Equity Fund.... 24,422,664 19,597,217
11 IDS Life Aggressive Growth Fund....... 38,284,864 22,015,912
5 IDS Life Special Income Fund.......... 13,748,022 15,921,102
6 IDS Life Moneyshare Fund, Inc......... 9,156,896 9,987,321
9 IDS Life Managed Fund, Inc............ 30,751,777 20,445,428
12 IDS Life Global Yield Fund............ 2,498,462* --
13 IDS Life Income Advantage Fund. ...... 4,869,583* --
14 IDS Life Growth Dimensions Fund....... 29,583,647* --
- -----------------------------------------------------------------------------
$209,870,189 $133,117,444
*For the period April 30, 1996 to Dec. 31, 1996.
</TABLE>
- --------------------------------------------------------------------------------
5. Annuity Contracts in Payment Period
Net assets and annuity units relating to contracts in the payment period
as of Dec. 31, 1996 were as follows:
<TABLE>
Net assets applicable
to contracts in Annuity units in
Account payment period payment period
- ----------------------------------------------------------
<S> <C> <C>
4 $350,308 880
10 1,640 196
11 63,156 167
5 324,633 885
6 102,417 --
9 1,576,677 3,834
12 2,976 --
13 -- --
14 76,790 224
- ----------------------------------------------------
$2,498,597
</TABLE>
<PAGE>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14
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, 9, 12, 13 and 14 as of
December 31, 1996, and the related statements of operations for the year then
ended, except for Accounts 12, 13 and 14 which are for the period April 30, 1996
(commencement of operations) to December 31, 1996, and the statements of changes
in net assets for each of the two years in the period then ended, except for
Accounts 12, 13 and 14 which are for the period April 30, 1996 (commencement of
operations) to December 31, 1996. 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 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. Our procedures included
confirmation of securities owned at December 31, 1996 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, 9, 12, 13 and 14 at December 31,
1996, 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 21, 1997
<PAGE>
IDS LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS
Dec. 31, Dec. 31,
ASSETS 1996 1995
- ------ ---- ---------
(thousands)
Investments:
Fixed maturities:
Held to maturity, at amortized cost (Fair value:
1996, $10,521,650; 1995, $11,878,377) .............. $10,236,379 $11,257,591
Available for sale, at fair value (Amortized cost:
1996, $11,008,622; 1995, $10,146,136) .............. 11,146,845 10,516,212
Mortgage loans on real estate ...................... 3,493,364 2,945,495
Policy loans ....................................... 459,902 424,019
Other investments .................................. 251,465 146,894
Total investments .................................. 25,587,955 25,290,211
Cash and cash equivalents .......................... 224,603 72,147
Amounts recoverable from reinsurers ................ 157,722 114,387
Amounts due from brokers ........................... 11,047 --
Other accounts receivable .......................... 44,089 39,108
Accrued investment income .......................... 343,313 348,008
Deferred policy acquisition costs .................. 2,330,805 2,025,725
Deferred income taxes .............................. 33,923 --
Other assets ....................................... 37,364 36,410
Separate account assets ............................ 18,535,160 14,974,082
Total assets ....................................... $47,305,981 $42,900,078
=========== ===========
<PAGE>
IDS LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS (continued)
Dec. 31, Dec. 31
LIABILITIES AND STOCKHOLDER'S EQUITY 1996 1995
- ------------------------------------ ---- ----
(thousands)
Liabilities:
Future policy benefits:
Fixed annuities .................................... $21,838,008 $21,404,836
Universal life-type insurance ...................... 3,177,149 3,076,847
Traditional life insurance ......................... 209,685 209,249
Disability income and long-term care insurance ..... 424,200 327,157
Policy claims and other
policyholders' funds ............................... 83,634 56,323
Deferred income taxes .............................. -- 112,904
Amounts due to brokers ............................. 261,987 121,618
Other liabilities .................................. 332,078 285,354
Separate account liabilities ....................... 18,535,160 14,974,082
Total liabilities .................................. 44,861,901 40,568,370
Stockholder's equity:
Capital stock, $30 par value per share;
100,000 shares authorized, issued and outstanding .. 3,000 3,000
Additional paid-in capital ......................... 283,615 278,814
Net unrealized gain on investments ................. 86,102 230,129
Retained earnings .................................. 2,071,363 1,819,765
Total stockholder's equity ......................... 2,444,080 2,331,708
Total liabilities and stockholder's equity ......... $47,305,981 $42,900,078
=========== ===========
Commitments and contingencies (Note 6)
See accompanying notes to consolidated financial statements.
<PAGE>
IDS LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Years ended Dec. 31,
1996 1995 1994
---- ---- ----
(thousands)
<S> <C> <C> <C>
Revenues:
Premiums:
Traditional life insurance $ 51,403 $ 50,193 $ 48,184
Disability income and long-term care insurance 131,518 111,337 96,456
Total premiums 182,921 161,530 144,640
Policyholder and contractholder charges 302,999 256,454 219,936
Management and other fees 271,342 215,581 164,169
Net investment income 1,965,362 1,907,309 1,781,873
Net realized loss on investments (159) (4,898) (4,282)
Total revenues 2,722,465 2,535,976 2,306,336
Benefits and expenses:
Death and other benefits:
Traditional life insurance 26,919 29,528 28,263
Universal life-type insurance
and investment contracts 85,017 71,691 52,027
Disability income and
long-term care insurance 19,185 16,259 13,393
Increase (decrease) in liabilities for future policy benefits:
Traditional life insurance 1,859 (1,315) (3,229)
Disability income and
long-term care insurance 57,230 51,279 37,912
Interest credited on universal life-type
insurance and investment contracts 1,370,468 1,315,989 1,174,985
Amortization of deferred policy acquisition costs 278,605 280,121 280,372
Other insurance and operating expenses 261,468 211,642 210,101
Total benefits and expenses 2,100,751 1,975,194 1,793,824
Income before income taxes 621,714 560,782 512,512
Income taxes 207,138 195,842 176,343
Net income $ 414,576 $ 364,940 $ 336,169
========== ========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY
Three years ended Dec. 31, 1996
(thousands)
Additional Net Unrealized
Capital Paid-In Gain (Loss) on Retained
Stock Capital Investments Earnings Total
----- ------- ----------- -------- -----
<S> <C> <C> <C> <C> <C>
Balance, Dec. 31, 1993 $3,000 $ 222,000 $ 114 $1,468,230 $1,693,344
Initial adoption of SFAS No. 115 -- -- 181,269 -- 181,269
Net income -- -- -- 336,169 336,169
Change in net unrealized
gain (loss) on investments -- -- (457,091) -- (457,091)
Cash dividends -- -- -- (165,000) (165,000)
Balance, Dec. 31, 1994 3,000 222,000 (275,708) 1,639,399 1,588,691
Net income -- -- -- 364,940 364,940
Change in net unrealized
gain (loss) on investments -- -- 505,837 -- 505,837
Capital contribution from parent -- 56,814 -- -- 56,814
Loss on reinsurance transaction
with affiliate -- -- -- (4,574) (4,574)
Cash dividends -- -- -- (180,000) (180,000)
Balance, Dec. 31, 1995 3,000 278,814 230,129 1,819,765 2,331,708
Net income -- -- -- 414,576 414,576
Change in net unrealized
gain (loss) on investments -- -- (144,027) -- (144,027)
Capital contribution from parent -- 4,801 -- -- 4,801
Other changes -- -- -- 2,022 2,022
Cash dividends -- -- -- (165,000) (165,000)
Balance, Dec. 31, 1996 $3,000 $283,615 $ 86,102 $2,071,363 $2,444,080
===== ======= ====== ======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended Dec. 31,
1996 1995 1994
---- ---- ----
(thousands)
<S> <C> <C> <C>
Cash flows from operating activities:
Net income $ 414,576 $ 364,940 $ 336,169
Adjustments to reconcile net income to
net cash (used in) provided by operating activities:
Policy loan issuance, excluding universal
life-type insurance (49,314) (46,011) (37,110)
Policy loan repayment, excluding universal
life-type insurance 41,179 36,416 33,384
Change in amounts recoverable from reinsurers (43,335) (34,083) (25,006)
Change in other accounts receivable (4,981) 12,231 (28,551)
Change in accrued investment income 4,695 (30,498) (10,333)
Change in deferred policy acquisition
costs, net (294,755) (196,963) (192,768)
Change in liabilities for future policy
benefits for traditional life,
disability income and
long-term care insurance 97,479 85,575 55,354
Change in policy claims and other
policyholders' funds 27,311 6,255 5,552
Change in deferred income taxes (65,609) (33,810) (19,176)
Change in other liabilities 46,724 (6,548) (122)
(Accretion of discount)
amortization of premium, net (23,032) (22,528) 30,921
Net realized loss on investments 159 4,898 4,282
Policyholder and contractholder
charges, non-cash (154,286) (140,506) (126,918)
Other, net (10,816) 3,849 (8,709)
Net cash (used in) provided by operating
activities $ (14,005) $ 3,217 $ 16,969
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
Years ended Dec. 31,
1996 1995 1994
(thousands)
<S> <C> <C> <C>
Cash flows from investing activities:
Fixed maturities held to maturity:
Purchases $ (43,751) $ (1,007,208) $ (879,740)
Maturities, sinking fund payments and calls 759,248 538,219 1,651,762
Sales 279,506 332,154 58,001
Fixed maturities available for sale:
Purchases (2,299,198) (2,452,181) (2,763,278)
Maturities, sinking fund payments and calls 1,270,240 861,545 1,234,401
Sales 238,905 136,825 374,564
Other investments, excluding policy loans:
Purchases (904,536) (823,131) (634,807)
Sales 236,912 160,521 243,862
Change in amounts due from brokers (11,047) 7,933 (2,214)
Change in amounts due to brokers 140,369 (105,119) (124,749)
Net cash used in investing activities (333,352) (2,350,442) (842,198)
Cash flows from financing activities:
Activity related to universal life-type insurance
and investment contracts:
Considerations received 3,567,586 4,189,525 3,566,814
Surrenders and death benefits (4,250,294) (3,141,404) (3,602,392)
Interest credited to account balances 1,370,468 1,315,989 1,174,985
Universal life-type insurance policy loans:
Issuance (86,501) (84,700) (78,239)
Repayment 58,753 52,188 50,554
Capital contribution from parent 4,801 -- --
Cash dividends to parent (165,000) (180,000) (165,000)
Net cash provided by financing activities 499,813 2,151,598 946,722
Net increase (decrease) in cash and
cash equivalents 152,456 (195,627) 121,493
Cash and cash equivalents at
beginning of year 72,147 267,774 146,281
Cash and cash equivalents at
end of year $ 224,603 $ 72,147 $ 267,774
========= ======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
IDS LIFE INSURANCE COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
($ thousands)
1. Summary of significant accounting policies
Nature of business
IDS Life Insurance Company (the Company) is a stock life insurance company
organized under the laws of the State of Minnesota. The Company is a wholly
owned subsidiary of American Express Financial Corporation, which is a wholly
owned subsidiary of American Express Company. The Company serves residents of
all states except New York. IDS Life Insurance Company of New York is a
wholly owned subsidiary of the Company and serves New York State residents.
The Company also wholly owns American Enterprise Life Insurance Company,
American Centurion Life Assurance Company (ACLAC) and American Partners Life
Insurance Company.
The Company's principal products are deferred annuities and universal life
insurance, which are issued primarily to individuals. It offers single
premium and flexible 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.
Basis of presentation
The accompanying consolidated financial statements include the accounts of
the Company and its wholly owned subsidiaries. All material intercompany
accounts and transactions have been eliminated in consolidation.
The accompanying consolidated financial statements have been prepared in
conformity with generally accepted accounting principles which vary in
certain respects from reporting practices prescribed or permitted by state
insurance regulatory authorities.
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, net of deferred
taxes.
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.
Mortgage loans on real estate are carried at amortized cost less reserves for
mortgage loan losses. The estimated 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.
Impairment of mortgage loans 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 in a reserve for
mortgage loan losses. The reserve for mortgage loans losses is maintained at
a level that management believes is adequate to absorb estimated 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 mortgage loan losses.
The Company generally stops accruing interest on mortgage loans for which
interest payments are delinquent more than three months. Based on
management's judgement as to the ultimate collectibility of principal,
interest payments received are either recognized as income or applied to the
recorded investment in the loan.
The cost of interest rate caps and floors is amortized to investment income
over the life of the contracts and payments received as a result of these
agreements are recorded as investment income when realized. The amortized
cost of interest rate caps and floors is included in other investments.
Amounts paid or received under interest rate swap agreements are recognized
as an adjustment to investment income.
Policy loans are carried at the aggregate of the unpaid loan balances which
do not exceed the cash surrender values of the related policies.
When evidence indicates a decline, which is other than temporary, in the
underlying value or earning power of individual investments, such investments
are written down to the fair value by a charge to income.
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.
Supplementary information to the consolidated statements of cash flows
for the years ended Dec. 31 is summarized as follows:
1996 1995 1994
--------- -------- -----
Cash paid during the year for:
Income taxes $317,283 $191,011 $226,365
Interest on borrowings 4,119 5,524 1,553
Recognition of profits on annuity contracts and insurance policies
Profits on fixed deferred annuities are recognized by the Company over the
lives of the contracts, using primarily the interest method. Profits
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 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.
Policyholder and contractholder charges include the monthly cost of insurance
charges and issue and administrative fees. These charges also include the
minimum death benefit guarantee fees received from the variable life
insurance separate accounts. Management and other fees include investment
management fees and mortality and expense risk fees from the variable annuity
and variable life insurance separate accounts and underlying funds.
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 most
single premium deferred annuities and installment annuities are amortized in
relation to 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 and certain installment annuities are amortized 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.
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 are based on
the net level premium method and anticipated rates of mortality, policy
persistency and interest earnings. Anticipated mortality rates generally
approximate the 1955-1960 Select and Ultimate Basic Table for policies issued
prior to 1980, the 1965-1970 Select and Ultimate Basic Table for policies
issued from 1981-1984 and the 1975-1980 Select and Ultimate Basic Table for
policies issued after 1984. Anticipated policy persistency rates vary by
policy form, issue age and policy duration with persistency on cash value
plans generally anticipated to be better than persistency on term insurance
plans. Anticipated interest rates are 4% for policies issued before 1974,
5.25% for policies issued from 1974-1980, and range from 10% to 6% depending
on policy form, issue year and policy duration for policies issued after
1980.
Liabilities for future disability income policy benefits include both policy
reserves and claim reserves. Policy reserves are based on the net level
premium method and anticipated rates of morbidity, mortality, policy
persistency and interest earnings. Anticipated morbidity rates are based on
the 1964 Commissioners Disability Table for policies issued before 1996 and
the 1985 CIDA table for policies issued in 1996. Anticipated mortality rates
are based on the 1958 Commissioners Standard Ordinary Table for policies
issued before 1996 and the 1975-1980 Basic Table for policies issued in 1996.
Anticipated policy persistency rates vary by policy form, occupation class,
issue age and policy duration. Anticipated interest rates are 3% for policies
issued before 1996 and grade from 7.5% to 5% over five years for policies
issued in 1996. Claim reserves are calculated on the basis of anticipated
rates of claim continuance and interest earnings. Anticipated claim
continuance rates are based on the 1964 Commissioners Disability Table for
claims incurred before 1993 and the 1985 CIDA Table for claims incurred after
1992. Anticipated interest rates are 8% for claims incurred prior to 1992, 7%
for claims incurred in 1992 and 6% for claims incurred after 1992.
Liabilities for future long-term care policy benefits include both policy
reserves and claim reserves. Policy reserves are based on the net level
premium method and anticipated rates of morbidity, mortality, policy
persistency and interest earnings. Anticipated morbidity rates are based on
the 1985 National Nursing Home Survey. Anticipated mortality rates are based
on the 1983a Table. Anticipated policy persistency rates vary by policy form,
issue age and policy duration. Anticipated interest rates are 9.5% grading to
7% over 10 years for policies issued from 1989-1992 and 7.75% grading to 7%
over 4 years for policies issued after 1992. Claim reserves are calculated on
the basis of anticipated rates of claim continuance and interest earnings.
Anticipated claim continuance rates are based on the 1985 National Nursing
Home Survey. Anticipated interest rates are 8% for claims incurred prior to
1992, 7% claims incurred in 1992 and 6% 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 monthly benefit for benefit periods longer
than three years. The excesses are reinsured with other life insurance
companies on a yearly renewable term basis. Graded premium whole life and
long-term care policies are primarily reinsured on a coinsurance 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 subsidiaries for all tax benefits.
Included in other liabilities at Dec. 31, 1996 and 1995 are $33,358 and
($13,415), respectively, receivable from/(payable to) American Express
Financial Corporation 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 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. For variable life
insurance, the Company guarantees that the rates at which insurance charges
and administrative fees are deducted from contract funds will not exceed
contractual maximums. The Company also guarantees that the death benefit will
continue payable at the initial level regardless of investment performance so
long as minimum premium payments are made.
Accounting changes
The Financial Accounting Standards Board's (FASB) Statement of Financial
Accounting Standards (SFAS) No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," was effective
Jan. 1, 1996. The new rule did not have a material impact on the Company's
results of operations or financial condition. 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
$181,269, net of tax, as of Jan. 1, 1994, but the adoption had no impact on
the Company's net income.
Reclassification
Certain 1995 and 1994 amounts have been reclassified to conform to the 1996
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.
Net realized gain (loss) on investments for the years ended Dec. 31 is
summarized as follows:
1996 1995 1994
-------- -------- --------
Fixed maturities ............ $ 8,736 $ 9,973 $ (1,575)
Mortgage loans .............. (8,745) (13,259) (3,013)
Other investments ........... (150) (1,612) 306
-------- -------- --------
$ (159) $ (4,898) $ (4,282)
======== ======== ========
<PAGE>
Changes in net unrealized appreciation (depreciation) of investments for the
years ended Dec. 31 are summarized as follows:
1996 1995 1994
---------- ------------ -----------
Fixed maturities:
Held to maturity ....... $ (335,515) $ 1,195,847 $(1,329,740)
Available for sale ..... (231,853) 811,649 (720,449)
Equity securities ......... (52) 3,118 (2,917)
The amortized cost, gross unrealized gains and losses and fair values of
investments in fixed maturities and equity securities at Dec. 31, 1996 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 $ 44,002 $ 933 $ 1,276 $ 43,659
State and municipal obligations 9,685 412 -- 10,097
Corporate bonds and obligations 8,057,997 356,687 47,639 8,367,045
Mortgage-backed securities 2,124,695 21,577 45,423 2,100,849
------------ --------- ------- ------------
$10,236,379 $379,609 $94,338 $10,521,650
=========== ======== ======= ===========
Gross Gross
Amortized Unrealized Unrealized Fair
Available for sale Cost Gains Losses Value
------------------ ---- ----- ------ -----
U.S. Government agency obligations $ 77,944 $ 2,607 $ 96 $ 80,455
State and municipal obligations 11,032 1,336 -- 12,368
Corporate bonds and obligations 3,701,604 122,559 24,788 3,799,375
Mortgage-backed securities 7,218,042 104,808 68,203 7,254,647
---------- -------- ------ -----------
Total fixed maturities 11,008,622 231,310 93,087 11,146,845
Equity securities 3,000 308 -- 3,308
----------- -------- ------- -----------
$11,011,622 $231,618 $93,087 $11,150,153
=========== ======== ======= ===========
</TABLE>
The amortized cost, gross unrealized gains and losses and fair values 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 $ 64,523 $ 3,919 $ -- $ 68,442
State and municipal obligations 11,936 362 32 12,266
Corporate bonds and obligations 8,921,431 620,327 36,786 9,504,972
Mortgage-backed securities 2,259,701 42,684 9,688 2,292,697
----------- --------- ------- -----------
$11,257,591 $667,292 $46,506 $11,878,377
=========== ======== ======= ===========
Gross Gross
Amortized Unrealized Unrealized Fair
Available for sale Cost Gains Losses Value
U.S. Government agency obligations $ 84,082 $ 3,248 $ 50 $ 87,280
State and municipal obligations 11,020 1,476 -- 12,496
Corporate bonds and obligations 2,514,308 186,596 3,451 2,697,453
Mortgage-backed securities 7,536,726 206,288 24,031 7,718,983
---------- -------- ------- ----------
Total fixed maturities 10,146,136 397,608 27,532 10,516,212
Equity securities 3,156 361 -- 3,517
---------- -------- ------- ----------
$10,149,292 $397,969 $27,532 $10,519,729
=========== ======== ======= ===========
</TABLE>
<PAGE>
The amortized cost and fair value of investments in fixed maturities at Dec.
31, 1996 by contractual maturity are shown below. Expected maturities will
differ from contractual maturities because borrowers may have the right to
call or prepay obligations with or without call or prepayment penalties.
Amortized Fair
Held to maturity Cost Value
Due in one year or less $ 197,711 $ 200,134
Due from one to five years 2,183,374 2,294,335
Due from five to ten years 4,606,775 4,779,690
Due in more than ten years 1,123,824 1,146,642
Mortgage-backed securities 2,124,695 2,100,849
------------ ------------
$10,236,379 $10,521,650
Amortized Fair
Available for sale Cost Value
Due in one year or less $ 227,051 $ 229,650
Due from one to five years 851,428 899,098
Due from five to ten years 2,140,579 2,182,079
Due in more than ten years 571,522 581,371
Mortgage-backed securities 7,218,042 7,254,647
------------ ------------
$11,008,622 $11,146,845
During the years ended Dec. 31, 1996, 1995 and 1994, fixed maturities
classified as held to maturity were sold with amortized cost of $277,527,
$333,508 and $61,290, respectively. Net gains and losses on these sales were
not significant. 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 $91,760
and net unrealized gains of $881 from held to maturity to available for sale
in December 1995.
In addition, fixed maturities available for sale were sold during 1996 with
proceeds of $238,905 and gross realized gains and losses of $571 and $16,084,
respectively. Fixed maturities available for sale were sold during 1995 with
proceeds of $136,825 and gross realized gains and losses of $nil and $5,781,
respectively. Fixed maturities available for sale were sold during 1994 with
proceeds of $374,564 and gross realized gains and losses of $1,861 and
$7,602, respectively.
At Dec. 31, 1996, bonds carried at $13,571 were on deposit with various
states as required by law.
<PAGE>
Net investment income for the years ended Dec. 31 is summarized as follows:
1996 1995 1994
--------- ------- -----
Interest on fixed maturities $1,666,929 $1,656,136 $1,556,756
Interest on mortgage loans 283,830 232,827 196,521
Other investment income 43,283 35,936 38,366
Interest on cash equivalents 5,754 5,363 6,872
------------- ------- -----------
1,999,796 1,930,262 1,798,515
Less investment expenses 34,434 22,953 16,642
------------ --------- ----------
$1,965,362 $1,907,309 $1,781,873
========== ========== ==========
At Dec. 31, 1996, investments in fixed maturities comprised 84 percent of the
Company's total invested assets. These securities are rated by Moody's and
Standard & Poor's (S&P), except for securities carried at approximately $1.9
billion 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 1996 1995
------ ----------- -----------
Aaa/AAA ....................... $ 9,460,134 $ 9,907,664
Aaa/AA ........................ 2,870 3,112
Aa/AA ......................... 241,914 279,403
Aa/A .......................... 192,631 154,846
A/A ........................... 2,949,895 3,104,122
A/BBB ......................... 1,034,661 871,782
Baa/BBB ....................... 4,531,515 4,417,654
Baa/BB ........................ 768,285 657,633
Below investment grade ........ 2,063,096 2,007,511
----------- -----------
$21,245,001 $21,403,727
At Dec. 31, 1996, 95 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.
<PAGE>
At Dec. 31, 1996, approximately 13.7 percent of the Company's invested assets
were mortgage loans on real estate. Summaries of mortgage loans by region of
the United States and by type of real estate are as follows:
Dec. 31, 1996 Dec. 31, 1995
------------------------- ------------------------
On Balance Commitments On Balance Commitments
Region Sheet to Purchase Sheet to Purchase
------------------ ----------- ----------- ----------- ----------
East North Central $ 777,960 $ 19,358 $ 720,185 $ 67,206
West North Central 389,285 29,620 303,113 34,411
South Atlantic 891,852 35,007 732,529 111,967
Middle Atlantic 553,869 17,959 508,634 37,079
New England 310,177 14,042 244,816 40,452
Pacific 190,770 4,997 168,272 23,161
West South Central 105,173 11,246 61,860 27,978
East South Central 75,176 -- 58,462 10,122
Mountain 236,597 11,401 184,964 16,774
---------- -------- -------- ------
3,530,859 143,630 2,982,835 369,150
Less allowance for losses 37,495 -- 37,340 --
---------- -------- ------- ---
$3,493,364 $143,630 $2,945,495 $369,150
========== ======== ========== ========
Dec. 31, 1996 Dec. 31, 1995
------------------------- ------------------------
On Balance Commitments On Balance Commitments
Property type Sheet to Purchase Sheet to Purchase
- ----------------------- --------- --------- ----------- -----------
Department/retail stores $1,154,179 $ 68,032 $ 985,660 $ 134,538
Apartments 1,119,352 23,246 1,038,446 84,978
Office buildings 611,395 27,653 464,381 62,664
Industrial buildings 296,944 6,716 255,469 22,721
Hotels/motels 97,870 6,257 31,335 48,816
Nursing/retirement homes 88,226 1,877 80,864 4,378
Mixed Use 73,120 -- 53,169 --
Medical buildings 67,178 8,289 57,772 2,495
Other 22,595 1,560 15,739 8,560
------------ ---------- --------- --------
3,530,859 143,630 2,982,835 369,150
Less allowance for losses 37,495 -- 37,340 --
------------ ------ --------- ------
$3,493,364 $143,630 $2,945,495 $369,150
========== ======== ========== ========
<PAGE>
Mortgage loan fundings are restricted by state insurance regulatory authorities
to 80 percent or less of the market value of the real estate at the time of
origination of the loan. The Company holds the mortgage document, which gives
the right to take possession of the property if the borrower fails to perform
according to the terms of the agreement. The fair value of the mortgage loans is
determined by a discounted cash flow analysis using mortgage interest rates
currently offered for mortgages of similar maturities. Commitments to purchase
mortgages are made in the ordinary course of business. The fair value of the
mortgage commitments is $nil.
At Dec. 31, 1996 and 1995, the Company's recorded investment in impaired loans
was $79,441 and $83,874 with a reserve of $16,162 and $19,307, respectively.
During 1996 and 1995, the average recorded investment in impaired loans was
$74,338 and $74,567, respectively.
The Company recognized $4,889 and $5,014 of interest income related to impaired
loans for the year ended Dec. 31, 1996 and 1995, respectively.
The following table presents changes in the reserve for investment losses
related to all loans:
1996 1995
--------- --------
Balance, Jan. 1 .................... $ 37,340 $ 35,252
Provision for investment losses .... 10,005 15,900
Loan payoffs ....................... (4,700) (11,900)
Foreclosures ....................... (5,150) (1,350)
Other .............................. -- (562)
-------- --------
Balance, Dec. 31 ................... $ 37,495 $ 37,340
======== ========
At Dec. 31, 1996, the Company had commitments to purchase affordable housing
limited partnership investments of $28,476, which is recorded as a liability in
the accompanying balance sheets. The total amounts committed in 1997 and 1998
are $25,234 and $3,242, respectively. The Company also had commitments to
purchase real estate investments for $35,425. Commitments to purchase real
estate investments are made in the ordinary course of business. The fair value
of these commitments is $nil.
<PAGE>
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:
1996 1995 1994
------ -------- -------
Federal income taxes:
Current $260,357 $218,040 $186,508
Deferred (65,609) (33,810) (19,175)
-------- -------- --------
194,748 184,230 167,333
State income taxes-current 12,390 11,612 9,010
--------- ------- ------
Income tax expense $207,138 $195,842 $176,343
======== ======== ========
Increases (decreases) to the federal tax provision applicable to pretax
income based on the statutory rate are attributable to:
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ----------------- -----------------
Provision Rate Provision Rate Provision Rate
<S> <C> <C> <C> <C> <C> <C>
Federal income
taxes based on
the statutory rate $217,600 35.0% $196,274 35.0% $179,379 35.0%
Increases (decreases)
are attributable to:
Tax-excluded interest
and dividend income (9,636) (1.6) (8,524) (1.5) (9,939) (2.0)
Other, net (13,216) (2.1) (3,520) (0.6) (2,107) (0.4)
--------- ----- -------- ---- -------- ----
Federal income taxes $194,748 31.3% $184,230 32.9% $167,333 32.6%
======== ===== ======== ==== ======== ====
</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, 1996, the Company had a
policyholders' surplus account balance of $20,114. 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 $7,040 have not been established because no distributions of
such amounts are contemplated.
<PAGE>
Significant components of the Company's deferred tax assets and liabilities
as of Dec. 31 are as follows:
1996 1995
------- -----
Deferred tax assets:
Policy reserves $724,412 $600,176
Life insurance guarantee
fund assessment reserve 29,854 26,785
Other 2,763 --
--------- -------
Total deferred tax assets 757,029 626,961
--------- -------
Deferred tax liabilities:
Deferred policy acquisition costs 665,685 590,762
Unrealized gain on investments 48,486 129,653
Investments, other 8,935 17,152
Other -- 2,298
-------- -------
Total deferred tax liabilities 723,106 739,865
-------- -------
Net deferred tax assets (liabilities)$ 33,923 $(112,904)
========= =========
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
During 1996, the Company received a $4,801 capital contribution from its
parent, American Express Financial Corporation. During 1995, the Company
received a $39,700 capital contribution from its parent in the form of
investments in fixed maturities and mortgage loans. In addition, effective
Jan. 1, 1995, the Company began consolidating the financial results of ACLAC.
This change reflected the transfer of ownership of ACLAC from Amex Life
Assurance Company (Amex Life), a former affiliate, to the Company prior to
the sale of Amex Life to an unaffiliated third party on Oct. 2, 1995. This
transfer of ownership to the Company has been reflected as a capital
contribution of $17,114 in the accompanying financial statements. The effect
of this change in reporting entity was not significant and prior periods have
not been restated.
As discussed in Note 5, the Company entered into a reinsurance agreement with
Amex Life during 1995. As a result of this transaction, a loss of $4,574 was
realized and reported as a direct charge to retained earnings.
Other changes in the statements of stockholder's equity are primarily related
to reinsurance transactions with affiliates.
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 state insurance regulatory authorities. Statutory
unassigned surplus aggregated $1,261,592 as of Dec. 31, 1996 and $1,103,993
as of Dec. 31, 1995 (see Note 3 with respect to the income tax effect of
certain distributions). In addition, any dividend distributions in 1997 in
excess of approximately $351,306 would require approval of the Department of
Commerce of the State of Minnesota.
Statutory net income for the years ended Dec. 31 and capital and surplus as
of Dec. 31 are summarized as follows:
1996 1995 1994
------ ------ ------
Statutory net income $ 365,585 $ 326,799 $ 294,699
Statutory capital and surplus 1,565,082 1,398,649 1,261,958
Dividends paid to American Express Financial Corporation were $165,000 in
1996, $180,000 in 1995, and $165,000 in 1994.
5. Related party transactions
The Company has loaned funds to American Express Financial Corporation under
a collateral loan agreement. The balance of the loan was $11,800 and $25,800
at Dec. 31, 1996 and 1995, respectively. This loan can be increased to a
maximum of $75,000 and pays interest at a rate equal to the preceding month's
effective new money rate for the Company's permanent investments. It is
collateralized by equity securities valued at $116,543 at Dec. 31, 1996.
Interest income on related party loans totaled $780, $1,371 and $2,894 in
1996, 1995 and 1994, respectively.
The Company purchased a five year secured note from an affiliated company
which had an outstanding balance of $nil and $19,444 at Dec. 31, 1996 and
1995, respectively. The note bears a fixed rate of 8.42 percent. Interest
income on the above note totaled $1,637, $1,937 and $2,278 in 1996, 1995 and
1994, respectively.
The Company has a reinsurance agreement whereby it assumed 100 percent of a
block of single premium life insurance business from Amex Life Assurance
Company (Amex Life), a former affiliate. The accompanying consolidated
balance sheets at Dec. 31, 1996 and 1995 include $758,812 and $764,663,
respectively, of future policy benefits related to this agreement.
The Company has a reinsurance agreement to cede 50 percent of its long-term
care insurance business to Amex Life. The accompanying consolidated balance
sheets at Dec. 31, 1996 and 1995 include $134,121 and $95,484, respectively,
of reinsurance receivables related to this agreement. Premiums ceded amounted
to $32,917, $25,553 and $20,360 and reinsurance recovered from reinsurers
amounted to $5,135, $4,998 and $3,022 for the years ended Dec. 31, 1996, 1995
and 1994, respectively.
The Company has a reinsurance agreement to assume deferred annuity contracts
from Amex Life. At Oct. 1, 1995, a $803,618 block of deferred annuities and
$28,327 of deferred policy acquisition costs were transferred to the Company.
The accompanying consolidated balance sheet at Dec. 31, 1996 includes
$828,298 of future policy benefits related to this agreement. Contracts with
future policy benefits totaling $50,400 were still reinsured with the former
affiliate at Dec. 31, 1996. The remaining contracts had been novated to
Company contracts.
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 $174,
$155 and $156 in 1996, 1995 and 1994, respectively.
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 1996, 1995 and 1994 were $990, $815 and
$957, 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.
Charges by American Express Financial Corporation for use of joint
facilities, marketing services and other services aggregated $397,362,
$377,139, and $335,183 for 1996, 1995 and 1994, respectively. Certain of
these costs are included in deferred policy acquisition costs. In addition,
the Company rents its home office space from American Express Financial
Corporation on an annual renewable basis.
6. Commitments and contingencies
At Dec. 31, 1996 and 1995, traditional life insurance and universal life-type
insurance in force aggregated $67,274,354 and $59,683,532, respectively, of
which $3,875,921 and $3,771,204 were reinsured at the respective year ends.
The Company also reinsures a portion of the risks assumed under disability
income and long-term care policies. Under all reinsurance agreements,
premiums ceded to reinsurers amounted to $48,250, $39,399 and $31,016 and
reinsurance recovered from reinsurers amounted to $15,612, $14,088, and
$10,778 for the years ended Dec. 31, 1996, 1995 and 1994. Reinsurance
contracts do not relieve the Company from its primary obligation to
policyholders.
A number of lawsuits have been filed against life and health insurers in
jurisdictions in which the Company and its subsidiaries do business involving
insurers' sales practices, alleged agent misconduct, failure to properly
supervise agents, and other matters. In December 1996, an action of this type
was brought against the Company and its parent, American Express Financial
Corporation. The plaintiffs purport to represent a class consisting of all
persons who replaced existing Company policies with new Company policies from
and after Jan. 1, 1985. The complaint puts at issue various alleged sales
practices and misrepresentations, alleged breaches of fiduciary duties and
alleged violations of consumer fraud statutes. Plaintiffs seek damages in an
unspecified amount and seek to establish a claims resolution facility for the
determination of individual issues. The Company and its parent believe they
have meritorious defenses to the claims raised in the lawsuit. The outcome of
any litigation cannot be predicted with certainty, particularly in the early
stages of an action. In the opinion of management, however, the ultimate
resolution of the above lawsuit and others filed against the Company should
not have a material adverse effect on the Company's consolidated financial
position.
During 1996, the Company settled the federal tax audit for 1987 through 1989
tax years. There was no material impact as a result of that audit. Also, the
IRS is currently auditing the Company's 1990 through 1992 tax years.
Management does not believe there will be a material impact as a result of
this audit.
7. Lines of credit
The Company has available lines of credit with two banks and its parent
aggregating $175,000, of which $100,000 is with its parent. The lines of
credit are at 40 to 80 basis points over the lenders' cost of funds or equal
to the prime rate, depending on which line of credit agreement is used. The
$25,000 line of credit with one bank expired on Dec. 31, 1996 and the Company
did not seek renewal. The $50,000 line of credit with the other bank expires
on June 30, 1997 and the Company expects to seek renewal. Borrowings
outstanding under these agreements were $nil at Dec. 31, 1996 and 1995.
8. 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 does not hold derivative instruments for
trading purposes. The Company manages risks associated with these instruments
as described below.
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.
Credit exposure related to interest rate caps and floors is measured by the
replacement cost of the contracts. The replacement cost represents the fair
value of the instruments.
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.
<PAGE>
The Company's holdings of derivative financial instruments are as follows:
Notional Carrying Fair Total Credit
Dec. 31, 1996 Amount Value Value Exposure
------------- --------- ------- -------- ------------
Assets:
Interest rate caps $ 4,000,000 $16,227 $ 7,439 $ 7,439
Interest rate floors 1,000,000 2,041 4,341 4,341
Interest rate swaps 1,000,000 -- (24,715) --
---------- ------- -------- -------
$6,000,000 $18,268 $(12,935) $11,780
========== ======= ======== =======
Dec. 31, 1995
Assets:
Interest rate caps $5,100,000 $26,680 $ 8,366 $ 8,366
========== ======= ======== =======
The fair values of derivative financial instruments are based on market
values, dealer quotes or pricing models. The interest rate caps and floors
expire on various dates from 1996 to 2001. The interest rate swaps are in
effect through 2001.
Interest rate caps, swaps and floors are used principally to manage the
Company's interest rate risk. These instruments are used to protect the
margin between interest rates earned on investments and the interest rates
credited to related annuity contract holders.
9. Fair values of financial instruments
The Company discloses fair value information for most on- and off-balance
sheet financial instruments for which it is practicable to estimate that
value. Fair values of life insurance obligations and all non-financial
instruments, such as deferred acquisition costs are excluded. Off-balance
sheet intangible assets, such as the value of 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.
1996 1995
------ -----
<TABLE>
<CAPTION>
Carrying Fair Carrying Fair
Financial Assets Value Value Value Value
---------------- ----- ----- ----- -----
<S> <C> <C> <C> <C>
Investments:
Fixed maturities (Note 2):
Held to maturity $10,236,379 $10,521,650 $11,257,591 $11,878,377
Available for sale 11,146,845 11,146,845 10,516,212 10,516,212
Mortgage loans on
real estate (Note 2) 3,493,364 3,606,077 2,945,495 3,184,666
Other:
Equity securities (Note 2) 3,308 3,308 3,517 3,517
Derivative financial
instruments (Note 8) 18,268 (12,935) 26,680 8,366
Other 63,993 66,242 52,182 52,182
Cash and
cash equivalents (Note 1) 224,603 224,603 72,147 72,147
Separate account assets
(Note 1) 18,535,160 18,535,160 14,974,082 14,974,082
Financial Liabilities
Future policy benefits
for fixed annuities 20,641,986 19,721,968 20,259,265 19,603,114
Separate account
liabilities 17,358,087 16,688,519 14,208,619 13,665,636
</TABLE>
<PAGE>
At Dec. 31, 1996 and 1995, the carrying amount and fair value of future
policy benefits for fixed annuities exclude life insurance-related contracts
carried at $1,112,155 and $1,070,598, respectively, and policy loans of
$83,867 and $74,973, respectively. The fair value of these benefits is based
on the status of the annuities at Dec. 31, 1996 and 1995. The fair value of
deferred annuities is estimated as the carrying amount less any applicable
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 1996 and 1995.
At Dec. 31, 1996 and 1995, the fair value of liabilities related to separate
accounts is estimated as the carrying amount less any applicable surrender
charges and less variable insurance contracts carried at $1,177,073 and
$765,463, respectively.
10.Segment information
The Company's operations consist of two business segments; first, individual
and group life insurance, disability income and long-term care insurance, and
second, annuity products designed for individuals, pension plans, small
businesses and employer-sponsored groups. The consolidated condensed
statements of income for the years ended Dec. 31, 1996, 1995 and 1994 and
total assets at Dec. 31, 1996, 1995 and 1994 by segment are summarized as
follows:
1996 1995 1994
------ ------ -----
Net investment income:
Life, disability income
and long-term care insurance $ 262,998 $ 256,242 $ 247,047
Annuities 1,702,364 1,651,067 1,534,826
----------- ----------- ------------
$ 1,965,362 $ 1,907,309 $ 1,781,873
=========== =========== ============
Premiums, charges and fees:
Life, disability income
and long-term care insurance $ 448,389 $ 384,008 $ 335,375
Annuities 308,873 249,557 193,370
------------ ------------ -------------
$ 757,262 $ 633,565 $ 528,745
============ ============ =============
Income before income taxes:
Life, disability income
and long-term care insurance $ 161,115 $ 125,402 $ 122,677
Annuities 460,758 440,278 394,117
Net loss on investments (159) (4,898) (4,282)
------------- ------------- --------------
$ 621,714 $ 560,782 $ 512,512
============ ============ =============
Total assets:
Life, disability income
and long-term care insurance $ 7,028,906 $ 6,195,870 $ 5,269,188
Annuities 40,277,075 36,704,208 30,478,355
----------- ----------- -----------
$47,305,981 $42,900,078 $35,747,543
=========== =========== ===========
Allocations of net investment income and certain general expenses are based
on various assumptions and estimates.
Assets are not individually identifiable by segment and have been allocated
principally based on the amount of future policy benefits by segment.
Capital expenditures and depreciation expense are not material, and
consequently, are not reported.
<PAGE>
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company
We have audited the accompanying consolidated balance sheets of IDS Life
Insurance Company (a wholly owned subsidiary of American Express Financial
Corporation) as of December 31, 1996 and 1995, and the related consolidated
statements of income, stockholder's equity and cash flows for each of the three
years in the period ended December 31, 1996. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of IDS Life Insurance
Company at December 31, 1996 and 1995, and the consolidated results of its
operations and its cash flows for each of the three years in the period ended
December 31, 1996, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the consolidated financial statements, the Company
changed its method of accounting for certain investments in debt and equity
securities in 1994.
Ernst & Young LLP
February 7, 1997
Minneapolis, Minnesota
<PAGE>
PAGE 43
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, 11, 12, 13 and 14:
Statements of Net Assets at Dec. 31, 1996.
Statements of Operations for the year ended Dec. 31, 1996.
Statements of Changes in Net Assets for the years ended Dec.
31, 1996 and Dec. 31, 1995.
Notes to Financial Statements.
Report of Independent Auditors dated March 21, 1997.
IDS Life Insurance Company of New York.
Balance Sheets at Dec. 31, 1996 and 1995;
Statements of Income for the years ended Dec. 31, 1996, 1995,
and 1994;
Statements of Cash Flows for the years ended Dec. 31, 1996,
1995, and 1994;
Notes to Financial Statements.
Report of Independent Auditors dated February 7, 1997.
Exhibits to Financial Statements included in Part C:
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 7, 1997.
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 44
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 as Exhibit 1.4 to Registration Statement No.
33-52567, is incorporated herein by reference.
2. Not applicable.
3. Form of Variable Annuity and Life Insurance Distribution
Agreement filed electronically as Exhibit 3 to Registration
Statement No. 33-52567, is incorporated herein by reference.
4.1 Copy of form of Group Deferred Annuity Contract (form 38607) filed
electronically as Exhibit 4.1 to Registration Statement No. 33-52567, is
incorporated herein by reference.
4.2 Copy of form of Group Deferred Annuity Participant
Certificate (form 38611) filed electronically as Exhibit
4.2 to Registration Statement No. 33-52567, is incorporated
herein by reference.
5.1 Copy of form of Employee Benefit Annuity Master Application
for Group Deferred Annuity Contract (form 38608 A), filed
electronically 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 19, 1997.
<PAGE>
PAGE 45
10. Consent of Independent Auditors, filed electronically
herewith.
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
March 26, 1997, filed electronically herewith.
Item 25. Directors and Officers of the Depositor (IDS Life
Insurance Company of New York)
Positions and
Name Principal Business Address Offices with Depositor
Mario Alaia 20 Madison Avenue Extension Claims Officer and
Albany, NY Assistant Secretary
Darrell C. Beckstrom IDS Tower 10 Underwriting Officer
Minneapolis, MN 55440
John C. Boeder 20 Madison Avenue Extension Director
Albany, NY
Eugene C. Chen 20 Madison Avenue Extension Chief Actuary
Albany, NY
Roger C. Corea 20 Madison Avenue Extension Director
Albany, NY
Charles A. Cuccinello 20 Madison Avenue Extension Director
Albany, NY
Darlene S. Farron 20 Madison Avenue Extension Treasurer
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
<PAGE>
PAGE 46
Robert A. Hatton IDS Tower 10 Director, Vice
Minneapolis, MN 55440 President and Chief
Operating Officer
Richard W. Kling IDS Tower 10 Director, Chairman of
Minneapolis, MN 55440 the Board and President
Edward Landes IDS Tower 10 Director
Minneapolis, MN 55440
Thomas V. Nicolosi Suite 220 Director
500 Mamaroneck Avenue
Harrison, NY 10528
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
Richard M. Starr 20 Madison Avenue Extension Director
Albany, NY
William A. Stoltzmann IDS Tower 10 Counsel and Assistant
Minneapolis, MN 55440 Secretary
Michael R. Woodward 20 Madison Avenue Extension Director
Albany, NY
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
IDS Life Assurance 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.
<PAGE>
PAGE 47
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
Jurisdiction
Name of Subsidiary of Incorporation
I. Travel Related Services
American Express Travel Related
Services Company, Inc. New York
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Companies engaged in Financial Services
Advisory Capital Strategies Group Inc. Minnesota
American Centurion Life Assurance Company New York
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Client Services Corporation Minnesota
American Express Financial Advisors Inc. Delaware
American Express Financial Corporation Delaware
American Express Insurance Agency of Arizona Inc.Arizona
American Express Insurance Agency of Idaho Inc. Idaho
American Express Insurance Agency of Nevada Inc. Nevada
American Express Minnesota Foundation Minnesota
American Express Property Casualty Insurance
Agency of Kentucky Inc. Kentucky
American Express Property Casualty Insurance
Agency of Mississippi Inc. Mississippi
American Express Property Casualty Insurance
Agency of Pennsylvania Inc. Pennsylvania
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 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
<PAGE>
PAGE 48
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
Jurisdiction
Name of Subsidiary of Incorporation
IDS International, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
IDS Management Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Plan Services of California, Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Real Estate Services, Inc. Delaware
IDS Realty Corporation Minnesota
IDS Sales Support Inc. Minnesota
IDS Securities Corporation Delaware
Investors Syndicate Development Corp. Nevada
Item 27. Number of Contractowners
On January 31, 1997, there were 2,201 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
<PAGE>
PAGE 49
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 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., Growth Trust;
Growth and Income Trust; Income Trust, Tax-Free Income Trust, World Trust
and IDS Certificate Company.
(b) As to each director, officer or partner of the principal
underwriter:
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald G. Abrahamson Vice President- None
IDS Tower 10 Service Quality and
Minneapolis, MN 55440 Reengineering
Douglas A. Alger Vice President-Field None
IDS Tower 10 Compensation and
Minneapolis, MN 55440 Administration
Peter J. Anderson Senior Vice President- Vice
IDS Tower 10 Investments President
Minneapolis, MN 55440
Ward D. Armstrong Vice President- None
IDS Tower 10 American Express,
Minneapolis, MN 55440 Institutional Services
John M. Baker Vice President- None
Plan Sponsor Services
Joseph M. Barsky III Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
<PAGE>
PAGE 50
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
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
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
John C. Boeder Vice President- None
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
<PAGE>
PAGE 51
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
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- None
290 Woodcliff Drive Upstate New York
Fairport, NY 14450
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
Regenia David Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
Luz Maria Davis Vice President- None
IDS Tower 10 Communications
Minneapolis, MN 55440
<PAGE>
PAGE 52
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
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 Board member
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
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 Vice President- None
IDS Tower 10 Institutional Products
Minneapolis, MN 55440 Group
Jeffrey P. Fox Vice President and None
IDS Tower 10 Corporate Controller
Minneapolis, MN 55440
<PAGE>
PAGE 53
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
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
John J. Golden Vice President- None
IDS Tower 10 Human Resources Planning
Minneapolis, MN 55440 and Field Support
Morris Goodwin Jr. Vice President and None
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
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
<PAGE>
PAGE 54
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
Brian M. Heath Group Vice President- None
Suite 150 North Texas
801 E. Campbell Road
Richardson, TX 75081
Janis K. Heaney Vice President- None
IDS Tower 10 Incentive Compensation
Minneapolis, MN 55440
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
David J. Hockenberry Group Vice President- None
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
David R. Hubers Chairman, Chief Board member
IDS Tower 10 Executive Officer and
Minneapolis, MN 55440 President
James M. Jensen Vice President- None
IDS Tower 10 Life Products
Minneapolis, MN 55440
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
Matthew N. Karstetter Vice President- None
IDS Tower 10 Investment Accounting
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
<PAGE>
PAGE 55
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
Susan D. Kinder Senior Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440
Richard W. Kling Senior Vice President- None
IDS Tower 10 Products
Minneapolis, MN 55440
Paul F. Kolkman Vice President- None
IDS Tower 10 Actuarial Finance
Minneapolis, MN 55440
Claire Kolmodin Vice President- None
IDS Tower 10 Service Quality
Minneapolis, MN 55440
David S. Kreager Group Vice President- None
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
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
<PAGE>
PAGE 56
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
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
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
William Miller Vice President and None
IDS Tower 10 Senior Portfolio Manager
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
<PAGE>
PAGE 57
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
Pamela J. Moret Vice President-Retail None
IDS Tower 10 Services
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
Thomas V. Nicolosi Group Vice President- None
Suite 220 New York Metro Area
500 Mamaroneck Avenue
Harrison, NY 10528
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
<PAGE>
PAGE 58
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
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
Debra J. Rabe Vice President-Financial None
IDS Tower 10 Planning
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
Max G. Roth Group Vice President- None
Suite 201 S IDS Ctr Wisconsin/Upper Michigan
1400 Lombardi Avenue
Green Bay, WI 54304
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
<PAGE>
PAGE 59
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
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
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
<PAGE>
PAGE 60
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
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
Barbara Stroup Stewart Vice President-Corporate None
IDS Tower 10 Reengineering
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- Board member
IDS Tower 10 Information and
Minneapolis, MN 55440 Technology
Melinda S. Urion Senior Vice President Treasurer
IDS Tower 10 and Chief Financial
Minneapolis, MN 55440 Officer
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
<PAGE>
PAGE 61
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
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- None
IDS Tower 10 Global Investments
Minneapolis, MN 55440
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
Michael R. Woodward Senior Vice President- None
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. $1,036,511 $551,374 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.
<PAGE>
PAGE 62
Item 32. Undertakings
(a) (b) & (c) These undertakings were filed with the Registrant's
initial Registration Statement, File No. 33-52567.
(d) The sponsoring insurance company represents that the
fees and charges deducted under the contract, in the
aggregate, are reasonable in relation to the
services rendered, the expenses expected to be
incurred, and the risks assumed by the insurance
company.
<PAGE>
PAGE 63
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 21st day of April,
1997.
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 21st day of
April, 1997.
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/ Darlene S. Farron* Director
Darlene S. Farron
/s/ Robert A. Hatton* Director, Vice President
Robert A. Hatton and Chief Operating Officer
/s/ Edward Landes* Director
Edward Landes
/s/ Thomas V. Nicolosi* Director
Thomas V. Nicolosi
<PAGE>
PAGE 64
Signature Title
/s/ Steven P. Norman* Director
Steven P. Norman
/s/ Carl Platou* Director
Carl Platou
/s/ Gordon H. Ritz* Director
Gordon H. Ritz
/s/ Richard M. Starr* Director
Richard M. Starr
/s/ Michael R. Woodward* Director
Michael R. Woodward
*Signed pursuant to Power of Attorney, dated March 26, 1997, filed
electronically herewith.
- ------------------------------
Colin Lancaster
<PAGE>
PAGE 65
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 5
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 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 March 26, 1997.
<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 7, 1997 on the financial statements
and schedules of IDS Life Insurance Company of New York and our report dated
March 21, 1997 on the financial statements of IDS Life of New York Accounts 4,
10, 11, 5, 6, 9, 12, 13 and 14, in Post Effective Amendment No. 5 to the
Registration Statement (Form N-4, No. 33-52567) and related Prospectus 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 18, 1997
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES ($ thousands)
AS OF DECEMBER 31, 1996
- -----------------------------------------------------------------------------
Column A Column B Column C Column D
Type of Investment Cost Value Amount at which
shown in the
balance sheet
- -----------------------------------------------------------------------------
Fixed maturities:
Held to maturity:
United States Government and
government agencies and
authorities (a) $ 62,005 $ 60,732 $ 62,005
All other corporate bonds 523,807 543,903 523,807
---------- ----------- ----------------
Total held to maturity 585,812 604,635 585,812
Available for sale:
United States Government and
government agencies and
authorities (b) 308,587 311,541 311,541
States, municipalities and
political subdivisions 105 115 115
All other corporate bonds 281,916 289,967 289,967
---------- ----------- ----------------
Total available for sale 590,608 601,623 601,623
Mortgage loans on real estate 160,017 XXXXXXXXX 160,017
Policy loans 20,077 XXXXXXXXX 20,077
Other investments 1,374 XXXXXXXXX 1,374
---------- ----------------
Total investments $ 1,357,888 $ XXXXXXXXX $ 1,368,903
========== ================
(a) - Includes mortgage-backed securities with a cost and market value of
$57,507 and $56,090, respectively.
(b) - Includes mortgage-backed securities with a cost and market value of
$308,587 and $311,541, respectively.
<PAGE>
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1996
Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K
Segment Deferred Future Unearned Other Premium Net Benefits, Amortization Other Premiums
policy policy premiums policy revenue investment claims, of deferred operating written
acquisition benefits, claims income* losses and policy expenses*
cost losses, and settlement acquisition
claims and benefits expenses costs
loss payable
expenses
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Annuities $67,568 $1,054,954$ - $ 1,055 $ - $ 93,319 $ 80 $ 11,257 $ 3,923 N/A
Life, DI and
Long-term Care
Insurance 51,615 187,616 - 2,100 10,931 16,149 10,835 4,814 5,049 N/A
- -----------------------------------------------------------------------------------------------------------
Total $119,183 $1,242,570$ - $ 3,155 $10,931 $109,468 $10,915 $ 16,071 $ 8,972 N/A
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*Allocations of net investment income and other operating expenses are based on
various assumptions and estimates.
<PAGE>
<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 Column G Column H Column I Column J Column K
Segment Deferred Future Unearned Other Premium Net Benefits, Amortization Other Premiums
policy policy premiums policy revenue investment claims, of deferred operating written
acquisition benefits, claims income* losses and policy expenses*
cost losses, and settlement acquisition
claims and benefits expenses costs
loss payable
expenses
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Annuities $ 65,283 $1,109,167$ - $ 2,222 $ - $ 95,323 $ 171 $ 9,138 $ 6,908 N/A
Life, DI and
Long-term Care
Insurance 44,517 178,952 - 1,422 9,280 15,601 9,689 3,947 566 N/A
- -----------------------------------------------------------------------------------------------------------------
Total $ 109,800 $1,288,119$ - $ 3,644 $ 9,280 $110,924 $ 9,860 $ 13,085 $ 7,474 N/A
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
*Allocations of net investment income and other operating expenses are based on
various assumptions and estimates.
<PAGE>
<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 Column G Column H Column I Column J Column K
Segment Deferred Future Unearned Other policy Premium Net Benefits, Amortization Other Premiums
policy policy premiums claims and revenue investment claims, of deferred operating written
acquisition benefits, benefits income* losses and policy expenses*
cost losses, payable settlement acquisition
claims and expenses costs
loss
expenses
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Annuities $61,442 $1,087,367$ - $ 1,348 $ - $92,583 $ 81 $ 9,392 $ 4,765 N/A
Life, DI and
Long-term Care
Insurance 38,636 168,417 - 1,869 7,846 15,560 10,214 3,602 3,594 N/A
- --------------------------------------------------------------------------------------------------------------------
Total $100,078 $1,255,784$ - $ 3,217 $ 7,846 $108,143 $ 10,295 $ 12,994 $ 8,359 N/A
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
*Allocations of net investment income and other operating expenses are based on
various assumptions and estimates.
<PAGE>
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE IV - REINSURANCE ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
- ---------------------------------------------------------------------------------------------------
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, 1996
Life insurance in force $ 3,707,618 $ 203,963 $ 345,943 $ 3,849,598 8.99%
===================================================================================================
Premiums:
Life insurance & annuities $ 2,634 $ 222 $ -- $ 2,412 0.00%
DI & long-term care insurance 8,651 132 -- 8,519 0.00%
- ---------------------------------------------------------------------------------------------------
Total premiums $ 11,285 $ 354 $ 0 $ 10,931 0.00%
===================================================================================================
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%
===================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
- -----------------------------------------------------------------------------------------------
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, 1996
- ------------------------------
Reserve for Mortgage Loans $445 $855 $0 $0 $1,300
Reserve for Fixed Maturities $26 $23 $0 $0 $49
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
</TABLE>
<PAGE>
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, 1996 and 1995, and for each
of the three years in the period ended December 31, 1996, and have
issued our report thereon dated February 7, 1997 (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 7, 1997
<TABLE> <S> <C>
<ARTICLE> 7
<CIK> 0000703704
<NAME> IDS Life Insurance Company of New York
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLAR
<S> <C>
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<PERIOD-TYPE> YEAR
<EXCHANGE-RATE> 1
<DEBT-HELD-FOR-SALE> 601623
<DEBT-CARRYING-VALUE> 585812
<DEBT-MARKET-VALUE> 604635
<EQUITIES> 0
<MORTGAGE> 160017
<REAL-ESTATE> 0
<TOTAL-INVEST> 1368903
<CASH> 0
<RECOVER-REINSURE> 12
<DEFERRED-ACQUISITION> 119183
<TOTAL-ASSETS> 2463122
<POLICY-LOSSES> 1242570
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 3155
<NOTES-PAYABLE> 0
<COMMON> 2000
0
0
<OTHER-SE> 227863
<TOTAL-LIABILITY-AND-EQUITY> 2463122
10931
<INVESTMENT-INCOME> 109468
<INVESTMENT-GAINS> (1424)
<OTHER-INCOME> 24406
<BENEFITS> 76014
<UNDERWRITING-AMORTIZATION> 16071
<UNDERWRITING-OTHER> 8972
<INCOME-PRETAX> 42324
<INCOME-TAX> 14640
<INCOME-CONTINUING> 27684
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 27684
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<RESERVE-OPEN> 1142
<PROVISION-CURRENT> 8591
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 8253
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 1480
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<NAME> IDS Life of New York Accounts 4,10,11,5,6,9,12,13 and 14
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLAR
<S> <C>
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<PERIOD-TYPE> YEAR
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 756714981
<INVESTMENTS-AT-VALUE> 834409791
<RECEIVABLES> 1894187
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 836303978
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (2525839)
<TOTAL-LIABILITIES> (2525839)
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 343155303
<SHARES-COMMON-PRIOR> 273006220
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 833778139
<DIVIDEND-INCOME> 79231600
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> (7640506)
<NET-INVESTMENT-INCOME> 71591094
<REALIZED-GAINS-CURRENT> 3166141
<APPREC-INCREASE-CURRENT> 783120
<NET-CHANGE-FROM-OPS> 75540355
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 89672952
<NUMBER-OF-SHARES-REDEEMED> (19523869)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 176598996
<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> (7640506)
<AVERAGE-NET-ASSETS> 745478641
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<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 IDS Life Insurance
Company of New York on behalf of the below listed registrants 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 Flexible Portfolio
Annuity Account
IDS Life of New York Flexible Portfolio
Annuity
IDS Life of New York Account 8
Flexible Premium Variable Life
Insurance Policy 33-15290 811-5213
IDS Life of New York Account SBS
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, Sherilyn K. Beck, Colin Lancaster 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 26th day of March, 1997.
/s/ John C. Boeder /s/ Thomas V. Nicolosi
John C. Boeder Thomas V. Nicolosi
Director Director
/s/ Roger C. Corea /s/ Stephen P. Norman
Roger C. Corea Stephen P. Norman
Director Director
/s/ Charles A. Cuccinello /s/ Carl N. Platou
Charles A. Cuccinello Carl N. Platou
Director Director
/s/ Darlene S. Farron /s/ Gordon H. Ritz
Darlene S. Farron Gordon H. Ritz
Treasurer Director
/s/ Robert A. Hatton /s/ Richard M. Starr
Robert A. Hatton Richard M. Starr
Director, Vice President Director
and Chief Operating Officer
/s/ Richard W. Kling /s/ Michael R. Woodward
Richard W. Kling Michael R. Woodward
Director, Chairman of the Director
Board and President
/s/ Edward Landes
Edward Landes
Director
