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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
POST-EFFECTIVE AMENDMENT NO. 6
TO REGISTRATION STATEMENT NO. 33-28976
Under
The Securities Act of 1933
IDS Life Insurance Company
(Exact name of registrant as specified in charter)
Minnesota
(State or other jurisdiction of incorporation or organization)
63
___________________________________________________________________
(Primary Standard Industrial Classification Code Number)
41-0823832
___________________________________________________________________
(I.R.S. Employer Identification No.)
IDS Tower 10, Minneapolis, MN 55440-0010
(612) 671-3131
___________________________________________________________________
(Address, including zip code, and telephone number, including
area code, of registrant's principal executive offices)
Mary Ellyn Minenko, Counsel
IDS Life Insurance Company
IDS Tower 10, Minneapolis, Minnesota 55440-0010
(612) 671-3678
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
It is proposed that this filing become effective on May 1, 1995.
If any of the Securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act of 1933, check the following box. [X]
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Calculation of Registration Fee
<TABLE>
<C> <C> <C> <C> <C>
Proposed
Title of each class Proposed maximum
of securities to be Amount to be maximum offering aggregate offering Amount of
registered registered price per unit price registration fee
N/A
</TABLE>
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IDS LIFE ACCOUNT MGA
GROUP AND INDIVIDUAL MARKET VALUE ANNUITY CONTRACTS ISSUED BY
IDS LIFE INSURANCE COMPANY
Cross-Reference Sheet
Pursuant to Regulation S-K
Item 501(b)
Form S-1 Item Number and Caption Location in Prospectus
1. Forepart of the Registration
Statement and Outside Front
Cover Page of Prospectus...............Outside Front Cover
2. Inside Front and Outside Back
Cover Pages of Prospectus..............Table of Contents
(inside front cover)
3. Summary Information, Risk Factors
and Ratio of Earnings to Fixed
Charges................................Summary or, as to ratio
of earnings to fixed
charges, Not Applicable
4. Use of Proceeds........................Investments by IDS Life
5. Determination of Offering Price........Not Applicable
6. Dilution...............................Not Applicable
7. Selling Security Holders...............Not Applicable
8. Plan of Distribution...................Distribution of
Contracts
9. Description of Securities to Be
Registered.............................Description of Contracts
10. Interests of Named Experts and
Counsel................................Not Applicable
11. Information with Respect to the
Registrant.............................The Company; Directors
and Executive Officers
of the Registrant;
Executive Compensation;
Security Ownership of
Management;
Legal Proceedings and
Opinion; and
Financial Statements
12. Disclosure of Commission Position
on Indemnification for Securities
Act Liabilities........................See Item 14 in Part II
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PAGE 4
PART I.
INFORMATION REQUIRED IN PROSPECTUS
Attached hereto and made a part hereof is the Prospectus.
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IDS Life Market Value Annuity
Prospectus, May 1, 1995
This prospectus describes interests in a group market value annuity
contract and individual market value annuity contracts (Preferred
Choice Annuities) offered by IDS Life Insurance Company (IDS Life)
to the general public for non-tax benefited purchases. With
respect to the group contract, eligible individuals include members
of the general public.
Participation in a group contract will be accounted for separately
by the issuance of a certificate showing your interest under the
group contract. Participation in an individual contract is shown
by the issuance of an individual annuity contract. The certificate
and the individual contract are both referred to as the "Contract."
In addition, IDS Life may offer these Contracts in the following
tax benefited programs: (1) plans qualified under Section 401(a),
401(k) or 403(a) of the Internal Revenue Code of 1986, as amended
(the Code); (2) annuity purchase plans adopted by public school
systems and certain tax-exempt organizations pursuant to Section
403(b) of the Code; (3) individual retirement annuities established
by persons, eligible under Section 408 of the Code (IRA); (4)
contracts purchased by the U.S. Government, the government of any
state or political subdivision thereof, or by any agency or
instrumentality (within the meaning of Section 414(d) of the Code),
for use in satisfying its obligation to provide a benefit under a
governmental plan; and (5) deferred compensation plans under
Section 457 of the Code.
A minimum purchase payment of at least $5,000 must accompany the
application for a Contract. No additional payment is permitted
under a Contract. The Accumulation Value will be guaranteed by the
general assets of IDS Life. IDS Life generally intends to invest
funds received in relation to Contracts in a variety of debt
instruments having price durations which tend to match the
applicable Contract.
IDS Life Account MGA
Group and Individual Market
Value Annuity Contracts
Sold by:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Telephone: 800-422-3542
THESE SECURITIES MAY BE SUBJECT TO A SUBSTANTIAL SURRENDER CHARGE
AND/OR MARKET VALUE ADJUSTMENT IF NOT HELD TO THE RENEWAL DATE
WHICH COULD RESULT IN YOUR RECEIPT OF LESS THAN YOUR ORIGINAL
PURCHASE PAYMENT.
FOR RENEWAL GUARANTEE PERIODS, THE RENEWAL INTEREST RATE WILL BE
DECLARED BY IDS LIFE BASED ON VARIOUS FACTORS. IT MAY BE HIGHER OR
LOWER THAN THE PREVIOUS GUARANTEED INTEREST RATE.<PAGE>
PAGE 6
THE MINIMUM GUARANTEED RENEWAL INTEREST RATE IS 3 PERCENT.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
IDS LIFE INSURANCE COMPANY IS NOT A BANK AND THE SECURITIES IT
OFFERS ARE NOT BACKED OR GUARANTEED BY ANY BANK, NOR ARE THEY
INSURED BY THE FDIC.
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Table of Contents Page
Summary...................................................
Glossary of Special Terms.................................
Description of Contracts..................................
General...................................................
Application and Purchase Payment..........................
Right to Cancel...........................................
Guarantee Periods.........................................
Surrenders................................................
Surrender Charge..........................................
Market Value Adjustment...................................
Premium Taxes.............................................
Death Benefit Prior to Settlement.........................
Statement.................................................
Electing the Settlement Date and Form of Annuity..........
Investments by IDS Life...................................
Amendment of Contracts....................................
Distribution of Contracts.................................
Assignment of Contracts...................................
Federal Tax Considerations................................
The Company...............................................
Business..................................................
Selected Financial Data...................................
Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations.............
Reserves..................................................
Investments...............................................
Competition...............................................
Employees.................................................
Properties................................................
State Regulation..........................................
Directors and Executive Officers..........................
Executive Compensation....................................
Security Ownership of Management..........................
Legal Proceedings and Opinion.............................
Experts...................................................
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Appendix A (Partial Surrender Illustration)...............
Appendix B (Market Value Adjustment Illustration).........
IDS Life Financial Information............................
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Summary
IDS Life is offering group and individual market value annuities to
the general public for non-tax benefited and tax benefited
purchases. IDS Life is a wholly owned subsidiary of American
Express Financial Corporation, which itself is a wholly owned
subsidiary of American Express Company. As described in this
prospectus, market value annuity Contracts have a guaranteed
interest rate that is credited to the purchase payment when it is
held to the end of the Guarantee Period (the Renewal Date).
Surrenders before the Renewal Date are subject to a Market Value
Adjustment and a surrender charge (if applicable).
When a payment is made under an application, the applicant selects
a Guarantee Period from among those then offered by IDS Life.
During this Guarantee Period, the purchase payment earns interest
at the applicable guaranteed interest rate as established by IDS
Life. Interest is credited on a daily basis and the interest
credited earns interest at the applicable guaranteed interest rate
as established by IDS Life. (See Guarantee Periods page ).
At the end of each Guarantee Period, a renewal Guarantee Period of
one year will begin, unless the Owner elects a different duration.
The Owner must elect the length of a renewal Guarantee Period
during the 30 days before the end of the previous Guarantee Period.
Failure to make an election will result in an automatic renewal for
a period of one year. As of the first day of each renewal
Guarantee Period the renewal value will earn interest at the then
applicable renewal guaranteed interest rate and the interest
credited will earn interest at the then applicable renewal
guaranteed interest rate. (See Guarantee Periods page ).
Subject to certain restrictions, partial or total surrenders are
permitted. We may defer payment of any surrender for a period up
to six months from the date we receive notice of surrender or the
period permitted by state law, if less. A deferral of payment will
not be for a period greater than seven days except under
extraordinary circumstances. We will pay annual interest of at
least 3 percent of any amounts deferred for more than thirty days
during such period if we choose to exercise this deferral right.
(See Surrenders page ).
Surrenders may be subject to a surrender charge and/or a Market
Value Adjustment. Before the eighth Contract anniversary, a
surrender charge beginning at a maximum of 8 percent will be
assessed if you surrender. No surrender charge will be applied for
any surrenders after the eighth Contract anniversary or if the
surrender occurs on the last day of a Guarantee Period. We will
waive the surrender charge in certain instances. (See Surrender
Charge page ).
A Market Value Adjustment will be applied when the surrender occurs
before the Renewal Date. No Market Value Adjustment will be
applied to any surrender effective as of the end of a Guarantee
Period. The Market Adjusted Value will reflect the relationship,
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PAGE 10
at the time of surrender, between the rate we then are crediting on
purchase payments to new Contracts with the same durations as the
time remaining in the Guarantee Period, and the guaranteed interest
rate applicable to that Contract. Generally, significant factors
affecting the amount of the Market Value Adjustment are the level
of interest rates on investments that are similar to those
supporting current Contract purchase payments and the time
remaining to the end of the Guarantee Period. The Market Adjusted
Value is sensitive, therefore, to changes in Current Interest
Rates. The level of the Market Value Adjustment is dependent on
the Current Interest Rate at the time of surrender. The Market
Value Adjustment may increase or decrease the value of this
investment before the Renewal Date. It is possible that the amount
you receive on surrender would be less than your original purchase
payment if interest rates increase. Also, if interest rates
decrease, the amount you receive on surrender may be more than your
original purchase payment and accrued interest. The Market
Adjusted Value also affects settlements under an annuity payment
plan. (See Market Value Adjustment page ).
We reserve the right to deduct applicable premium taxes from the
Accumulation Value of the Contract. (See Premium Taxes page ).
The Contract provides for a guaranteed death benefit. In the event
of the death of the Annuitant or Owner prior to the Settlement
Date, IDS Life will pay to the Owner or beneficiary the death
benefit in lieu of any other payment under the Contract. The
amount of the death benefit will equal the Accumulation Value. (See
Death Benefit Prior to Settlement page ).
On the Settlement Date specified by the Owner, IDS Life will pay
the Owner a lump sum payment or start to pay a series of payments.
A series of payments may be elected under certain Annuity Plans.
(See Electing the Settlement Date and Form of Annuity page ).
Glossary of Special Terms
In this prospectus "we" "us" and "IDS Life" refer to IDS Life
Insurance Company and "you" and "yours" refer to an Owner who has
been issued a Contract.
In addition, as used in this prospectus, the following terms have
the indicated meanings:
Accumulation Value - The value of the purchase payment plus
interest credited, adjusted for any surrenders.
Annuitant - The person on whose life monthly annuity payments
depend.
Cash Surrender Value - The Market Adjusted Value less any
applicable surrender charge.
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Contract Anniversary - The same day and month as the Contract Date
each year that the Contract remains in force.
Contract Date - The effective date of the Contract as designated in
the Contract.
Current Interest Rate - The applicable interest rate contained in a
schedule of rates established by us from time to time for various
Guarantee Periods.
Initial Guarantee Period - The period during which the Initial
Guarantee Rate will be credited.
Initial Guarantee Rate - The rate of interest credited to the
purchase payment during the Initial Guarantee Period.
Market Adjusted Value - The Accumulation Value adjusted by the
Market Adjusted Value formula, on any date before the end of the
Guarantee Period.
Market Value Adjustment - The Market Adjusted Value minus the
Accumulation Value.
Owner - The person or entity to whom the annuity Contract is
issued.
Renewal Date - The first day of a Renewal Guarantee Period. It
will always be on a Contract Anniversary.
Renewal Guarantee Period - A Renewal Guarantee Period will begin at
the end of each Guarantee Period.
Renewal Guarantee Rate - The rate of interest credited to the
Renewal Value during the Renewal Guarantee Period.
Renewal Value - The accumulation value at the end of the current
Guarantee Period.
Settlement - The application of the Market Adjusted Value of the
Contract to provide annuity payments.
Settlement Date - The date on which annuity payments are to begin.
Written Request - A request in writing signed by you and delivered
to us at our Home Office.
Description of Contracts
General
This prospectus describes interests in market value annuities
offered by IDS Life for non-tax benefited purchases. In addition,
IDS Life may offer the Contracts in the following tax benefited
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PAGE 12
programs: (1) Section 401(a), 401(k) and 403(a) Plans; (2) Section
403(b) Plans; (3) IRAs; (4) certain governmental plans; and (5)
deferred compensation plans.
As described in this prospectus, the Contracts have a guaranteed
interest rate that is credited to a purchase payment in the
Contract when the purchase payment is held to its Renewal Date.
Surrenders prior to the Renewal Date are subject to a Market Value
Adjustment and a surrender charge (if applicable).
Application and Purchase Payment
To apply for a Contract, you must complete an application and make
a minimum purchase payment of $5,000. For individuals age 75 and
younger, the maximum purchase payment is $1,000,000 without prior
approval. For individuals age 76 to 85, it is $500,000. If you
purchase the Contract to fund a tax benefited plan, that plan's
limit on contributions also will apply.
We will return an improperly completed application, along with the
corresponding purchase payment, five days after we receive it if
the application has not, by that time, been properly completed.
A payment is credited to a Contract on the date we receive a
properly completed application along with the purchase payment.
Interest is earned the next day. IDS Life then issues a Contract
and confirms the purchase payment in writing.
Right to Cancel
State or Federal law may give you the right to cancel the Contract
within a specific period of time after receipt of the Contract and
receive a refund of the entire purchase payment. For revocation to
be effective, mailing or delivery of notice of cancellation must be
made in writing to our Home Office at IDS Tower 10, Minneapolis,
Minnesota 55440-0010.
Guarantee Periods
The Owner selects the duration of the Guarantee Period from among
those durations we offer. As of the date of this prospectus, we
are offering Guarantee Periods with annual durations from one to 10
years; however, the Guarantee Periods we offer in the future could
be different. The duration selected will determine the guaranteed
interest rate and the purchase payment (less surrenders made and
less applicable premium taxes, if any) will earn interest at this
guaranteed interest rate during the entire Guarantee Period. All
interest earned will be credited daily; this compounding effect is
reflected in the guaranteed interest rate.
Below is an illustration of how we will credit interest during the
Guarantee Period. For the purpose of this example, we have made
the assumptions as indicated.
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PAGE 13
Example of Guaranteed Rate of Accumulation
Beginning Account Value: $50,000
Guaranteed Period: 10 years
Guaranteed Rate: 5 percent Annual Effective Rate
Interest Credited
to the Account Cumulative Interest
Year During Year Credited to the Account
1 $2,500.00 $ 2,500.00
2 2,625.00 5,125.00
3 2,756.25 7,881.25
4 2,894.06 10,775.31
5 3,038.77 13,814.08
6 3,190.70 17,004.78
7 3,350.24 20,355.02
8 3,517.75 23,872.77
9 3,693.64 27,566.41
10 3,878.32 31,444.73
Guaranteed Accumulation Value at the end of 10 years is:
$50,000 + $31,444.73 = $81,444.73
Note: This example assumes no surrenders of any amount during the
entire ten-year period. A Market Value Adjustment applies and a
surrender charge may apply to any interim surrender. (See
Surrenders). The hypothetical interest rates are illustrative only
and are not intended to predict future interest rates to be
declared under the Contract. Actual interest rates declared for
any given time may be more or less than those shown.
Renewal Guarantee Periods - At the end of any Guarantee Period, a
Renewal Guarantee Period will begin. We will notify you in writing
about the Renewal Guarantee Periods available before the Renewal
Date. This written notification will not specify the interest rate
for the Renewal Value. You may elect in writing, during the 30-day
period before the end of the Guarantee Period, a Renewal Guarantee
Period of a different duration from among those we offer at that
time. If no election is made, we will automatically apply the
Renewal Value to a Guarantee Period of one year. In no event may
Renewal Guarantee Periods extend beyond the Settlement Date then in
effect for the Contract. For example, if the Annuitant is age 62
at the end of a Guarantee Period and the Settlement Date for the
Annuitant is age 65, a three-year Guarantee Period is the maximum
Guarantee Period that may be selected under the Contract. The
Renewal Value will then earn interest at a guaranteed interest rate
that we have declared for such duration. We may declare new
schedules of guaranteed interest rates as frequently as daily.
At the beginning of any Renewal Guarantee Period, the Renewal Value
will be the Accumulation Value at the end of the Guarantee Period
just ending. The Renewal Value is guaranteed by our general
assets. This amount will earn interest for the Renewal Guarantee
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PAGE 14
Period at the then applicable guaranteed interest rate for the
period selected, that may be higher or lower than the previous
guaranteed interest rate.
At your Written Request, we will notify you of the Renewal
Guarantee Rates for the periods then available. You also may call
us to inquire about Renewal Guarantee Rates.
Establishment of Guaranteed Interest Rates - The guaranteed
interest rate for a chosen Guarantee Period will be known at the
time a purchase payment is received or an Accumulation Value is
renewed. We will send a confirmation that will show the amount and
the applicable guaranteed interest rate. The minimum guaranteed
interest rate for Renewal Values is 3 percent per year. The rate
on Renewal Values will be equal to or greater than the rate
credited on new comparable purchase payments at that time.
IDS Life has no specific formula for determining the rate of
interest that it will declare as guaranteed interest rates in the
future. We will declare the guaranteed interest rates from time to
time based on our analysis of current market conditions. (See
Investments by IDS Life). In addition, IDS Life also may consider
various other factors in determining guaranteed interest rates for
a given period, including, regulatory and tax requirements; sales
commission and administrative expenses we bear; general economic
trends; and competitive factors. IDS Life management will make the
final determination as to the guaranteed interest rates to be
declared. We cannot predict nor can we guarantee future guaranteed
interest rates above the 3 percent rate.
Surrenders
General - Subject to certain tax law and retirement plan
restrictions noted below, total and partial surrenders may be made
under a Contract at any time.
In the case of all surrenders, the Accumulation Value will be
reduced by the amount surrendered on the surrender date and that
amount will be payable to the Owner. The Accumulation Value also
will be reduced by any applicable surrender charge and either
reduced or increased by any Market Value Adjustment applicable to
the surrender. IDS Life will, on request, inform you of the amount
payable in a total or partial surrender. Any total or partial
surrender may be subject to tax and tax penalties. Surrenders from
certain tax benefited Contracts also may be subject to 20 percent
income tax withholding. (See Federal Tax Considerations).
Tax-Sheltered Annuities - The Code imposes certain restrictions on
an Owner's right to receive early distributions attributable to
salary reduction contributions from a Contract purchased for a
retirement plan qualified under Section 403(b) of the Code as a
Tax-Sheltered Annuity (TSA).
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PAGE 15
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 contract only if the Owner has attained age 59-1/2, has become
disabled as defined in the Code, has separated from the service of
the employer that purchased the Contract or has died.
Additionally, if the Owner should encounter a financial hardship
(within the meaning of the Code), he or she may receive a
distribution of all Contract values attributable to salary
reduction contributions made after Dec. 31, 1988, but not of the
earnings on them.
Even though a distribution may be permitted under these rules
(e.g., for hardship or after separation from service), it may
nonetheless be subject to a 10 percent IRS penalty tax (in addition
to income tax) as a premature distribution and to 20 percent income
tax withholding. (See Federal Tax Considerations).
These restrictions do not apply to transfers of Contract value to
another TSA investment vehicle available through the employer.
Partial Surrenders - The minimum amount you may surrender is $250.
You cannot make a partial surrender if it would reduce the
Accumulation Value of your annuity to less than $2,000.
You may request the net check amount you wish to receive. We will
determine how much Accumulation Value needs to be surrendered to
yield the net check amount after any applicable Market Value
Adjustments and surrender charge deductions.
A partial surrender request not exceeding $40,000 may be made by
telephone. We have the authority to honor any telephone partial
surrender request believed to be authentic and will use reasonable
procedures to confirm that they are. This includes asking
identifying questions and tape recording calls. As long as
reasonable procedures are followed, neither IDS Life nor its
affiliates will be liable for any loss resulting from fraudulent
requests. At times when the volume of telephone requests is
unusually high, we will take special measures to ensure that your
call is answered as promptly as possible. A telephone surrender
request will not be allowed within 30 days of a phoned-in address
change.
Total Surrenders - We will compute the value of your Contract at
the close of business after we receive your request for a complete
surrender. We may ask you to return the Contract.
Payment on Surrender - We may defer payment of any partial or total
surrender for a period not exceeding 6 months from the date we
receive your notice of surrender or the period permitted by state
insurance law, if less. Only under extraordinary circumstances
will we defer a surrender payment more than 7 days, and if we defer
payment for more than 30 days, we will pay annual interest of at
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PAGE 16
least 3 percent on the amount deferred. While all circumstances
under which we could defer payment upon surrender may not be
foreseeable at this time, such circumstances could include, for
example, our inability to liquidate assets due to a general
financial crisis. If we intend to withhold payment more than 30
days, we will notify you in writing.
Surrender Charge
A surrender charge may be assessed on any total or partial
surrender taken prior to the eighth Contract anniversary unless the
surrender occurs on the last day of a Guarantee Period. The amount
of the surrender charge will be based on the length of the
Guarantee Period. The table below shows the maximum amount of the
surrender charge.
Surrender Charge Percentage
Guarantee Period Contract Years as measured from the beginning
of a Guarantee Period
1 2 3 4 5 6 7 8
1 Year 1%
2 Years 2 1%
3 Years 3 2 1%
4 Years 4 3 2 1%
5 Years 5 4 3 2 1%
6 Years 6 5 4 3 2 1%
7 Years 7 6 5 4 3 2 1%
8 Years 8 7 6 5 4 3 2 1%
9 Years 8 7 6 5 4 3 2 1
10 Years 8 7 6 5 4 3 2 1
For Renewal Guarantee Periods, the surrender charge will be based
on the lesser of:
o the length of the new Guarantee Period, or
o the number of years remaining until the eighth Contract
anniversary.
For example, if a Contract Owner chose an Initial Guarantee Period
of 5 years and later a Renewal Guarantee Period of 4 years, the
surrender charge percentages would be:
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PAGE 17
Contract Year Surrender Charge
1 5%
2 4
3 3
4 2
5 1*
6 3
7 2
8 1
9+ 0
*0% on last day of 5th Contract year.
There will never be any surrender charges after the eighth Contract
anniversary.
Also, after the first Contract anniversary, surrender charges will
not apply to surrenders of amounts totalling up to 10 percent of
the Accumulation Value as of the last Contract anniversary.
Surrender Charge Calculation - If there is a surrender charge, it
is calculated as:
(A minus B) multiplied by P
where: A = Market Adjusted Value surrendered
B = 10 percent of Accumulation Value on last Contract
anniversary not already taken as a partial surrender
this Contract year.
P = applicable surrender charge percentage
For an illustration of a partial surrender and applicable surrender
charges, see Appendix A.
Waiver of Surrender Charge - There will be no surrender charge:
o on the last day of a Guarantee Period;
o after the eighth Contract anniversary;
o after the first Contract anniversary for surrenders of amounts
totalling up to 10 percent of the Contract Accumulation Value
as of the last Contract anniversary;
o upon the death of the Annuitant or Owner; or
o upon the application of the Market Adjusted Value to provide
annuity payments under an annuity payment plan (if such
application occurs on a Renewal Date, there will be no
surrender charge or Market Value Adjustment, and the full
Accumulation Value will be applied under an annuity payment
plan).
In some cases, such as when an employer makes this annuity
available to employees, we may expect to incur lower sales and
administrative expenses or perform fewer services due to the size
of the group, the average contribution and the use of group
enrollment procedures. Then we may be able to reduce or eliminate
surrender charges. However, we expect this to occur infrequently.<PAGE>
PAGE 18
Market Value Adjustment
The Accumulation Value, including the interest credited, is
guaranteed if the Contract is held until the end of the Guarantee
Period. However, a Market Value Adjustment will be applied if a
surrender occurs prior to the end of the Guarantee Period. The
Market Adjusted Value also affects Settlements under an annuity
payment plan.
The Market Adjusted Value is your Accumulation Value (purchase
payment plus interest credited minus surrenders and surrender
charges) adjusted by a formula. The Market Adjusted Value reflects
the relationship between the guaranteed interest rate on your
Contract and the interest rate we are crediting on new contracts
with Guarantee Periods that are the same as the time remaining in
your Guarantee Period.
The Market Adjusted Value is sensitive to changes in Current
Interest Rates. The difference between your Accumulation Value and
Market Adjusted Value on any day will depend on our current
schedule of guaranteed interest rates on that day, the time
remaining in your Guarantee Period and your guaranteed interest
rate.
Your Market Adjusted Value may be more or less than your
Accumulation Value. If your guaranteed interest rate is lower than
the Current Interest Rate, your Market Adjusted Value probably will
be lower than your Accumulation Value. If your guaranteed interest
rate is higher than the Current Interest Rate, your Market Adjusted
Value probably will be higher than your Accumulation Value.
For example, assume you bought a Contract with a Guarantee Period
of 10 years and a guaranteed interest rate of 4.5 percent annually.
Assume that after 3 years you decide to surrender your Contract
(you have 7 years left in your Guarantee Period). If the Current
Interest Rate we are offering on new Contracts with 7-year
Guarantee Periods is 5 percent, your Market Adjusted Value will be
lower than your Accumulation Value. On the other hand, if the
Current Interest Rate we are then offering on new Contracts with
7-year Guarantee Periods is 4 percent, your Market Adjusted Value
will be higher than your Accumulation Value.
Market Adjusted Value Formula:
Market Adjusted Value = (Renewal Value)
(1 + ic + .0025)(N + t)
Renewal Value -- The Accumulation Value at the end of the current
Guarantee Period
ic -- The Current Interest Rate offered for new Contract
sales and renewals for the number of years
remaining in the Guarantee Period
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PAGE 19
N -- The number of complete Contract years to the end
of the current Guarantee Period
t -- The fraction of the Contract year remaining to the
end of the Contract year (for example, if 180 days
remain in a 365 day year, t would be .493)
The current guaranteed interest rate (ic) is declared by us
periodically. It is the rate which we are then paying on purchase
payments and renewals paid under this class of Contracts for
Guarantee Period durations equaling the remaining Guarantee Period
duration of the Contract to which the formula is being applied. If
the remaining Guarantee Period is a number of complete years, the
specific complete year guarantee rate will be used. If the
remaining Guarantee Period is less than 1 year, the one year
guarantee rate will be used. If the remaining Guarantee Period is
a number of complete years plus fractional years, the rate will be
determined by straight line interpolation between the two years'
rates. For example, if the remaining Guarantee Period duration is
8.5 years, and the current guaranteed interest rate for 8 years is
4 percent and for 9 years is 5 percent, IDS Life will use a
guaranteed interest rate of 4.5 percent.
Market Value Adjustment Formula:
Market Value Adjustment = Market Adjusted Value less
Accumulation Value
For an illustration showing an upward and downward adjustment, see
Appendix B.
Premium Taxes
We reserve the right to deduct an amount from the Accumulation
Value of the Contract at the time that any applicable premium taxes
not previously deducted are payable. If a tax is payable at the
time of the purchase payment and we choose to not deduct it at that
time, we further reserve the right to deduct it at a later date.
Current premium taxes range in an amount up to 3.5 percent
depending on jurisdiction.
Death Benefit Prior to Settlement
If the Annuitant or Owner dies before the Settlement Date, the
death benefit payable to the beneficiary will equal the
Accumulation Value.
If your Spouse is Sole Beneficiary or Co-Owner - If you, as Owner
or Co-Owner, die before the Settlement Date and your spouse is the
only beneficiary or Co-Owner, your spouse may keep the annuity as
Owner. To do this, your spouse must, within 60 days after we
receive proof of death, give us written instructions to keep the
Contract in force.
<PAGE>
PAGE 20
Section 401(k) Plans, Section 403(b) Plans (TSAs), Section 457
Plans, Custodial and Trusteed Plans, and IRAs - If the Contract is
purchased under a Section 401(k) plan, Section 403(b) plan, Section
457 plan, custodial or trusteed plan or for an IRA and we receive
proof of the annuitant's death before the Settlement Date, we will
pay the beneficiary the death benefit described above. If the
annuitant dies before reaching age 70-1/2 and the spouse is the
only beneficiary, the spouse may keep the annuity in force until
the date on which the annuitant would have reached 70-1/2. To do
this, the spouse must, within 60 days after we receive proof of
death, give us written instructions to keep the Contract in force.
Paying the Beneficiary - Unless you have given us other written
instructions, we will pay the beneficiary in a single payment. The
beneficiary may elect to receive this payment at any time within 5
years after the date of death. Payment from a tax benefited
Contract (except an IRA) made to a surviving spouse instead of
being directly rolled over to an IRA may be subject to 20 percent
income tax withholding. We may make payments under any payment
plan available under this Contract if:
o the beneficiary asks us in writing within 60 days after we
receive proof of death;
o payments begin no later than one year after death; and
o the payment period does not extend beyond the beneficiary's life
or life expectancy.
We will determine the Market Adjusted Value at the next close of
business after our death claim requirements are fulfilled. We will
mail payment to the beneficiary within seven days after our death
claim requirements are fulfilled.
Statement
Prior to the Settlement Date, at least annually, we will send a
statement showing a summary of the Contract.
Electing the Settlement Date and Form of Annuity
A Settlement Date is established when you apply for the Contract.
The Settlement Date may be changed, but any such change must be
made in writing and received by us at least 30 days prior to the
scheduled Settlement Date.
The Settlement Date cannot be later than the later of:
o the Contract anniversary nearest the Annuitant's 85th birthday;
or
o the 10th Contract anniversary.
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Annuity Payments - The first payment will be made as of the
Settlement Date. Once annuity payments have started for an
Annuitant, no surrender of the annuity benefit can be made for the
purpose of receiving a lump sum in lieu of payments.
Death After Settlement Date - If you or the Annuitant dies after
the Settlement Date, the amount payable to the beneficiary, if any,
will continue as provided in the annuity payment plan then in
effect.
Annuity Plans - There are different ways to receive annuity
payments. We call these plans. You may select one of these plans,
or another payment arrangement to which we agree, by giving us
written notice at least 30 days before the Settlement Date.
The Market Adjusted Value (less applicable premium taxes, if any)
may be applied on the Settlement Date under any of the annuity
plans described below, but in the absence of an election, the
Market Adjusted Value will be applied on the Settlement Date under
Plan B to provide a life annuity with 120 monthly payments certain.
If the amount to be applied to an annuity plan is not at least
$2,000 or if payments are to be made to other than a natural
person, we have the right to make a lump sum payment of the Cash
Surrender Value. If a lump sum payment is made from a tax
benefited Contract (except an IRA), 20 percent income tax
withholding may apply.
o Plan A - This provides monthly annuity payments for the
lifetime of the Annuitant. No payments will be made after the
Annuitant dies.
o Plan B - This provides monthly annuity payments for the
lifetime of the Annuitant with a guarantee by us that payments
will be made for a period of at least 5, 10 or 15 years. You
must select the period.
o Plan C - This provides monthly annuity payments for the
lifetime of the Annuitant with a guarantee by us that payments
will be made for a certain number of months. We determine the
number of months by dividing the Market Adjusted Value applied
under this plan by the amount of the monthly annuity payment.
o Plan D - We call this a Joint and Survivor life annuity.
Monthly payments will be paid for the lifetime of the
Annuitant and a joint annuitant. When either the Annuitant or
joint annuitant dies we will continue to make monthly payments
for the lifetime of the survivor. No payments will be paid
after the death of both the Annuitant and joint annuitant.
o Plan E - This provides monthly fixed dollar annuity payments
for a period of years. The period of years may be no less
than 10 nor more than 30.
<PAGE>
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The Contract provides for annuity payment plans on a fixed basis
only. The amount of each annuity payment will not change during
the annuity payment period. The amount of the annuity payment will
depend on:
- -- the Market Adjusted Value (less any applicable premium tax
not previously deducted) on the date;
- -- the annuity table we are then using for annuity settlements
(never less than the table guaranteed in the Contract);
- -- the Annuitant's age; and
- -- the annuity payment plan selected.
The tables for Plans A, B, C and D are based on the "1983
Individual Annuitant Mortality Table A" and an assumed rate of 4
percent per year. The table for Plan E is based on an interest
rate of 4 percent. IDS Life may, at our discretion, if mortality
appears more favorable and interest rates justify, apply other
tables that will result in higher monthly payments.
Restrictions for Some Tax Benefited Plans - If your annuity was
purchased under a Section 401(k) plan, custodial or trusteed plan,
Section 457 plan, Section 403(b) plan (TSA), or as an IRA, you must
select a payment plan that provides for payments:
o during the life of the Annuitant;
o during the joint lives of the Annuitant and 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 beneficiary.
Reference also must be made to the terms of the tax benefited plan
and applicable law for any limitations or restrictions on the
Settlement Date or annuity payment plan that may be selected.
Investments by IDS Life
Assets of IDS Life must be invested in accordance with requirements
established by applicable state laws regarding the nature and
quality of investments that may be made by life insurance companies
and the percentage of their assets that may be committed to any
particular type of investment. In general, these laws permit
investments, within specified limits and subject to certain
qualifications, in federal, state, and municipal obligations,
corporate bonds, preferred and common stocks, real estate
mortgages, real estate and certain other investments. All claims
by purchasers of the Contracts, and other general account products,
will be funded by the general account.
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IDS Life intends to construct and manage the investment portfolio
using a strategy known as "immunization." Immunization seeks to
lock in a defined return on the pool of assets versus the pool of
liabilities over a specified time horizon. Since the return on the
assets versus the liabilities is locked in, it is "immune" to any
potential fluctuations in interest rates during the given time.
Immunization is achieved by constructing a portfolio of assets with
a price sensitivity to interest rate changes (i.e., price duration)
that is essentially equal to the price duration of the
corresponding portfolio of liabilities. Portfolio immunization
provides flexibility and efficiency to IDS Life in creating and
managing the asset portfolio, while still assuring safety and
soundness for funding liability obligations.
IDS Life's investment strategy will incorporate the use of a
variety of debt instruments having price durations tending to match
the applicable guaranteed interest periods. These instruments
include, but are not necessarily limited to, the following:
o Securities issued by the U.S. government or its agencies
or instrumentalities, which issues may or may not be
guaranteed by the U.S. government;
o Debt securities that have an investment grade, at the
time of purchase, within the four highest grades assigned
by the nationally recognized rating agencies;
o Debt instruments that are unrated, but which are deemed
by IDS Life to have an investment quality within the four
highest grades;
o Other debt instruments, which are rated below investment
grade, limited to 10 percent of assets at the time of
purchase; and
o Real estate mortgages, limited to 30 percent of portfolio
assets at the time of acquisition.
In addition, options and futures contracts on fixed income
securities will be used from time to time to achieve and maintain
appropriate investment and liquidity characteristics on the overall
asset portfolio.
While this information generally describes our investment strategy,
we are not obligated to follow any particular strategy except as
may be required by Federal law and Minnesota and other state
insurance laws.
Amendment of Contracts
We reserve the right to amend the Contracts to meet the
requirements of applicable federal or state laws or regulations.
We will notify you in writing of any such amendments.
<PAGE>
PAGE 24
Distribution of Contracts
IDS Life is the principal underwriter for the Contracts. IDS Life
is registered with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 (1934 Act) as a broker-dealer and
is a member of the National Association of Securities Dealers,
Inc. IDS Life may enter into Distribution Agreements with certain
broker-dealers registered under the 1934 Act. IDS Life will pay a
maximum commission of 5 percent for the sale of a Contract. In the
future, we may pay a commission on an election of a subsequent
Guarantee Period by an Owner.
Assignment of Contracts
You may change ownership of your annuity at any time by filing a
change of ownership with us at our home office. No change of
ownership will be binding upon us until we receive and record it.
We take no responsibility for the validity of the change. If you
have a tax-benefited plan, the Contract may not be sold, assigned,
transferred, discounted or pledged as collateral for a loan or as
security for the performance of an obligation or for any other
purpose to any person other than IDS Life; provided, however, that
if the Owner is a trust or custodian, or an employer acting in a
similar capacity, ownership of a Contract may be transferred to the
Annuitant.
The value of any part of a non-tax benefited annuity contract
assigned or pledged is taxed like a cash withdrawal to the extent
allocable to investment in annuity contracts after Aug. 13, 1982.
Transfer of a non-tax benefited annuity Contract to another person
without adequate consideration is considered a gift and the
transfer will be considered a surrender of the Contract for federal
income tax purposes. The income in the Contract will be taxed to
the transferor who may be subject to the 10 percent IRS penalty tax
for early withdrawal. The transferee's investment in the annuity
will be the value of the annuity at the time of the transfer.
Consult with your tax advisor before taking any action.
Federal Tax Considerations
Under current law, there is no liability for federal income tax on
any increase in the annuity's value until payments are made (except
for change of ownership discussed above in "Assignment of
Contracts"). However, since federal tax consequences cannot always
be anticipated, you should consult a tax advisor if you have any
questions about the taxation of your annuity Contract.
You are not taxed on your investment in the Contract. Your
investment in the Contract generally includes purchase payments
made into the Contract with after-tax dollars. If the investment
in the Contract was made by you or on your behalf with pre-tax
dollars as part of a tax benefited retirement plan, such amounts
are not considered to be part of your investment in the Contract
and will be taxed when paid to you.
<PAGE>
PAGE 25
If you surrender part or all of your Contract before the date on
which you have decided to begin to receive annuity payments, you
will be taxed on the payments which you receive, to the extent that
the value of your Contract exceeds your investment in the Contract,
and you may have to pay an IRS penalty tax for early withdrawal.
If you begin receiving annuity payments under a non-tax benefited
annuity Contract, a portion of each payment will be subject to tax
and a portion of each payment will be considered to be part of your
investment in the Contract and will not be taxed. All amounts
received after your investment in the annuity is recovered will be
subject to tax. If you begin receiving payments from a tax
benefited annuity, for example an IRA, Section 403(b) plan, or
Section 457 plan, all of the payments generally will be subject to
taxation except to the extent that the contributions were made with
after-tax dollars.
Unlike life insurance proceeds, the death benefit under an annuity
contract is not tax exempt. The gain, if any, is taxable as
ordinary income to the beneficiary in the year(s) he or she
receives the payments.
Tax law requires that all non-qualified deferred annuity contracts
issued by the same company to the same contract owner during a
calendar year are to be treated as a single, unified contract. The
amount of income included and taxed in a distribution (or a
transaction deemed a distribution under tax law) taken from any one
of such contracts is determined by summing all such contracts.
The income earned on an annuity contract held by such entities as
corporations, partnerships or trusts generally will be treated as
ordinary income received during that year.
You may have to pay a 10 percent IRS penalty tax on any amount
includible in your ordinary income. This penalty will not apply to
any amount received:
o after you reach age 59-1/2;
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 over your life or life expectancy (or joint
lives or life expectancies of you and your designated
beneficiary); or
o if it is allocable to an investment before Aug. 14, 1982 (except
for Contracts in tax benefited plans).
These are the major exceptions to the 10 percent IRS penalty tax.
Additional exceptions may apply depending upon whether or not the
annuity is tax benefited.
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PAGE 26
For tax benefited Contracts, other penalties apply if you surrender
an annuity bought under your plan before the plan specifies that
payments can be made under the plan.
If you receive all or part of the Contract value from a tax
benefited annuity (except an IRA), mandatory 20 percent income tax
withholding generally will be imposed at the time the payment is
made. In addition, federal income tax and the 10 percent IRS
penalty tax for early withdrawals may apply to amounts properly
includible in income. This mandatory 20 percent income tax
withholding will not be imposed if:
o instead of receiving the payment, you elect to have the payment
rolled over directly to an IRA or another eligible plan;
o the payment is one of a series of substantially equal periodic
payments, made at least annually, over your life or life
expectancy (or joint lives or life expectancies of you and your
designated beneficiary) or made over a period of 10 years or
more; or
o the payment is a minimum distribution required under the Code.
These are the major exceptions to the mandatory 20 percent income
tax withholding. Payments made to a surviving spouse instead of
being directly rolled over to an IRA may be subject to 20 percent
income tax withholding. For taxable distributions that are not
subject to the mandatory 20 percent withholding, federal income tax
will be withheld from the taxable part of your distribution unless
you elect otherwise. State withholding also may be imposed on
taxable distributions.
You will receive a tax statement for any year that you receive a
taxable distribution from your annuity Contract.
The Contract is intended to qualify as an annuity for federal
income tax purposes. To that end, the provisions of the Contract
are to be interpreted to ensure or maintain such tax qualification,
notwithstanding any other provisions of the Contract. We reserve
the right to amend the Contract to reflect any clarifications that
may be needed or are appropriate to maintain such qualification or
to conform the Contract to any applicable changes in the tax
qualification requirements. We will send you a copy of any such
amendments.
Our discussion of federal tax laws is based upon our understanding
of these laws as they are currently interpreted. Either federal
tax laws or current interpretations of them may change. You are
urged to consult your tax advisor concerning your specific
circumstances.
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PAGE 27
The Company
Business
IDS Life is a stock insurance company organized in 1957 under the
laws of the State of Minnesota. IDS Life is a wholly owned
subsidiary of American Express Financial Corporation, which is a
wholly owned subsidiary of American Express Company. IDS Life acts
as a direct writer of insurance policies and annuities and as the
investment manager of various investment companies. IDS Life is
licensed to write life insurance and annuity contracts in 49 states
and the District of Columbia. The headquarters of IDS Life is IDS
Tower 10, Minneapolis, MN 55440-0010.
Selected Financial Data
The following selected financial data for IDS Life and its
subsidiaries should be read in conjunction with the consolidated
financial statements and notes included in the prospectus beginning
on page __.
<TABLE><CAPTION>
Years ended Dec. 31, (Thousands)
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C>
Premiums $ 127,245 $ 114,379 $ 102,338 $ 89,749
Net investment income 1,783,219 1,616,821 1,422,866 1,204,934
Net gain (loss) on investments (6,737) (3,710) (5,837) 1,022
Other 304,344 240,959 198,344 165,742
Total revenues 2,208,071 1,968,449 1,717,711 1,461,447
Income before income taxes 412,726 315,821 259,467 227,742
Net income $ 270,079 $ 211,170 $ 182,037 $ 157,748
Total assets $33,057,753 $27,295,773 $22,558,809 $18,088,351
</TABLE>
Management's Discussion and Analysis of Consolidated Financial
Condition and Results of Operations
Results of Operations
1994 Compared to 1993:
1993 Compared to 1992: Consolidated income before income taxes
totaled $413 million in 1993, compared with $316 million in 1992.
In 1993, $104 million was from the life, disability income, health
and long-term care insurance segment, compared with $96 million in
1992. In 1993, $315 million was from the annuity segment, compared
with $223 million in 1992. The remaining $6.7 million loss in 1993
was a net loss on investments, compared with a net loss on
investments of $3.7 million in 1992.
Total premiums received increased to $5.3 billion in 1993, compared
with $4.4 billion in 1992. This increase is primarily due to
strong sales of variable annuities due to the low interest rate
environment. In addition, IDS Life reported small increases in its
fixed single premium deferred annuity line. Universal life-type
insurance and variable universal life insurance premiums received
also increased from the prior year.
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PAGE 28
Total revenues increased to $2.2 billion in 1993, compared with
$2.0 billion in 1992. Of this, net investment income was $1.8
billion in 1993, compared with $1.6 billion in 1992, reflecting an
increase in invested assets. Total invested assets grew 14 percent
to $21.9 billion at Dec. 31, 1993, from $19.2 billion at Dec. 31,
1992.
Policyholder and contractholder charges, which consist primarily of
cost of insurance charges on universal life-type policies,
increased 18 percent to $184 million in 1993, compared with $156
million in 1992. This increase reflects higher total life
insurance in force which grew 13 percent to $46.1 billion at
Dec. 31, 1993.
Management and other fees increased 41 percent to $120 million in
1993, compared with $85 million in 1992. This is primarily due to
an increase in assets held in segregated asset accounts, which grew
45 percent to $9.0 billion at Dec. 31, 1993, resulting from strong
sales of variable products. IDS Life provides investment
management services for the mutual funds used as investment options
for variable annuities and variable life insurance. IDS Life also
receives a mortality and expense risk fee from the segregated asset
accounts.
In 1993, IDS Life reported a net loss on investments of $6.7
million, compared with a net loss on investments of $3.7 million in
1992. During 1993, net realized losses from the sale of
investments amounted to $12.5 million. This was offset by a net
decrease in allowance for losses of $5.8 million, including an
increase of $9.3 million for mortgage investments and real estate,
offset by a decrease of $15.1 million for below investment grade
bonds (those rated below BBB).
Total benefits and expenses increased to $1.8 billion in 1993,
compared with $1.7 billion in 1992. The largest component of
expenses, interest credited to policyholder accounts for universal
life-type insurance and investment contracts aggregated $1.2
billion and was essentially unchanged from the prior year. This
reflected interest credited to higher accumulation values offset by
lower interest credited rates.
Amortization of deferred policy acquisition costs increased to $212
million in 1993, compared with $140 million in 1992, reflecting
prior years' growth of life insurance and annuity business and a
cumulative adjustment driven by the long-term decrease in accrual
rates on fixed annuities.
Other insurance and operating expenses, which include non-
capitalized commissions and indirect selling expenses, direct and
indirect operating expenses, premium taxes and guaranty association
expenses increased to $242 million in 1993, compared with $216
million in 1992.
<PAGE>
PAGE 29
In May 1993, the Financial Accounting Standards Board issued SFAS
No. 115, "Accounting for Certain Investments in Debt and Equity
Securities," which IDS Life will implement, effective Jan. 1, 1994.
Under the new rules, debt securities that IDS Life has both the
positive intent and ability to hold to maturity will be carried at
amortized cost. Debt securities that IDS Life does not have the
positive intent and ability to hold to maturity and all marketable
equity securities will be classified as available-for-sale and
carried at fair value. Unrealized gains and losses on securities
classified as available-for-sale will be carried as a separate
component of stockholder's equity. The effect of the new rules
will be to increase stockholder's equity by approximately $181
million, net of taxes, as of Jan. 1, 1994, but the new rules will
have no material impact on IDS Life's results of operations.
SFAS No. 114, "Accounting by Creditors for Impairment of a Loan,"
and FASB Interpretation No. 39, "Offsetting of Amounts Related to
Certain Contracts," are expected to have no material impact on IDS
Life's results of operations or financial condition.
Liquidity and Capital Resources
The liquidity requirements of IDS Life are met by funds provided
from operations and investment activity. The components of the
funds provided are premiums, investment income, proceeds from sales
of investments as well as maturities and periodic repayments of
investment principal.
The primary uses of funds are policy benefits, commissions and
operating expenses, policy loans and new investment purchases.
IDS Life has available lines of credit with two banks aggregating
$75 million, which are used strictly as short-term
sources of funds. Borrowings outstanding under the agreements were
$1.5 million at Dec. 31, 1993. IDS Life also uses reverse
repurchase agreements for short-term liquidity needs. Reverse
repurchase agreements aggregated $30 million at Dec. 31, 1993.
At Dec. 31, 1993, investments in fixed maturities comprised 89
percent of IDS Life's total invested assets. Of the fixed maturity
portfolio, approximately 51 percent is invested in GNMA, FNMA and
FHLMC mortgage-backed securities which are considered AAA/Aaa
quality.
At Dec. 31, 1993, approximately 8.8 percent of IDS Life's
investments in fixed maturities were below investment grade bonds.
These investments may be subject to a higher degree of risk than
the more "traditional" issues because of the borrower's generally
greater sensitivity to adverse economic conditions, such as
recession or increasing interest rates, and in certain instances,
the lack of an active secondary market. Expected returns on below
investment grade bonds reflect consideration of such factors. IDS
Life has established an allowance for losses for below investment
grade bonds totaling $23 million at Dec. 31, 1993. Management
<PAGE>
PAGE 30
believes that the allowance for losses is adequate, however, future
economic factors could impact the ratings of securities owned and
additional reserves for losses may be required.
At Dec. 31, 1993, net unrealized appreciation on fixed maturities
included $1.1 billion of gross unrealized appreciation and $82
million of gross unrealized depreciation.
At Dec. 31, 1993, IDS Life had an allowance for losses for mortgage
loans totaling $35 million and for real estate totaling $11
million.
The economy and other factors have caused an increase in the number
of insurance companies that are under regulatory supervision. This
circumstance has resulted in an increase in assessments by state
guaranty associations to cover losses to policyholders of insolvent
or rehabilitated companies. Some assessments can be partially
recovered through a reduction in future premium taxes in certain
states. IDS Life established an asset for guaranty association
assessments from those states allowing a reduction in future
premium taxes over a reasonable period of time. The asset will be
amortized as future premium taxes are reduced. IDS Life has also
estimated the potential effect of future assessments on IDS Life's
financial position and results of operations and has established a
reserve for such potential assessments.
In the first quarter of 1994, IDS Life paid a $40 million dividend
to its parent. In 1993, dividends paid to its parent were $25
million.
Segment Information
IDS Life's operations consist of two business segments:
Individual and group life, disability income, long-term care and
health insurance; and fixed and variable annuity products designed
for individuals, pension plans, small businesses and
employer-sponsored groups. IDS Life is not dependent upon any
single customer and no single customer accounted for more than 10
percent of revenue in 1994, 1993 or 1992. (See Note 8, Segment
information, in the "Notes to Consolidated Financial Statements".)
Reinsurance
Reinsurance arrangements are used to reduce exposure to large
losses. The maximum amount of risk retained by IDS Life on any one
life is $750,000 of life and waiver of premium benefits plus
$50,000 of accidental death benefits. The excesses are reinsured
with other life insurance companies. At Dec. 31, 1993, traditional
life and universal life-type insurance in force aggregated $46.1
billion, of which $3.0 billion was reinsured.
IDS Life has a reinsurance agreement with an affiliated company,
whereby IDS Life assumed 100 percent of a block of single premium
life insurance business. Reserves related to this agreement were
<PAGE>
PAGE 31
$760 million at Dec. 31, 1993. IDS Life also has a reinsurance
agreement to cede 50 percent of its long-term care insurance
business to an affiliated company. Reserves and reinsurance
receivables related to this agreement both amounted to $44.1
million at Dec. 31, 1993.
Reserves
In accordance with the insurance laws and regulations under which
IDS Life operates, it is obligated to carry on its books, as
liabilities, actuarially determined reserves to meet its
obligations on its outstanding life and health insurance policies
and annuity contracts. Reserves for policies and contracts are
based on mortality and morbidity tables in general use in the
United States. These reserves are computed amounts that, with
additions from premiums to be received, and with interest on such
reserves compounded annually at assumed rates, will be sufficient
to meet IDS Life's policy obligations at their maturities or in the
event of an insured's death. In the accompanying financial
statements these reserves are determined in accordance with
generally accepted accounting principles. (See Note 1, Liabilities
for future policy benefits, in the "Notes to Consolidated Financial
Statements.")
Investments
Of IDS Life's consolidated total investments of $____ billion at
Dec. 31, 1994, ___ percent was invested in mortgage-backed
securities, ___ percent in corporate and other bonds, ___ percent
in primary mortgage loans on real estate, ___ percent in policy
loans and the remaining ___ percent in other investments.
Competition
IDS Life is engaged in a business that is highly competitive due to
the large number of stock and mutual life insurance companies and
other entities marketing insurance products. There are over 2,600
stock, mutual and other types of insurers in the life insurance
business. In Fortune magazine's May 1994 listing of the 50 largest
life insurance companies as ranked by assets, IDS Life ranked
fourteenth. Best's Insurance Reports, Life-Health edition, 1994,
assigned IDS Life one of its highest classifications, A+
(Superior).
Employees
As of Dec. 31, 1994, IDS Life and its subsidiaries had ____
employees; including ____ employed at the home office in
Minneapolis, MN, and __ employed at IDS Life Insurance Company of
New York located in Albany, NY.
Properties
IDS Life occupies office space in Minneapolis, MN, which is rented
by its parent, American Express Financial Corporation. IDS Life
reimburses American Express Financial Corporation for rent based on<PAGE>
PAGE 32
direct and indirect allocation methods. Facilities occupied by IDS
Life and its subsidiaries are believed to be adequate for the
purposes for which they are used and are well maintained.
State Regulation
IDS Life is subject to the laws of the State of Minnesota governing
insurance companies and to the regulations of the Minnesota
Department of Commerce. An annual statement in the prescribed form
is filed with the Minnesota Department of Commerce each year
covering IDS Life's operation for the preceding year and its
financial condition at the end of such year. Regulation by the
Minnesota Department of Commerce includes periodic examination to
determine IDS Life's contract liabilities and reserves so that the
Minnesota Department of Commerce may certify that these items are
correct. IDS Life's books and accounts are subject to review by
the Minnesota Department of Commerce at all times. Such regulation
does not, however, involve any supervision of the account's
management or IDS Life's investment practices or policies. In
addition, IDS Life is subject to regulation under the insurance
laws of other jurisdictions in which it operates. A full
examination of IDS Life's operations is conducted periodically by
the National Association of Insurance Commissioners.
Under insurance guaranty fund laws, in most states, insurers doing
business therein can be assessed up to prescribed limits for
policyholder losses incurred by insolvent companies. Most of these
laws do provide, however, that an assessment may be excused or
deferred if it would threaten an insurer's own financial strength.
Directors and Executive Officers*
The members of the Board of Directors and the principal executive
officers of IDS Life, together with the principal occupation of
each during the last five years, are as follows:
Directors
Louis C. Fornetti, 45
Director since March 1994; senior vice president and director, IDS,
since February 1985.
David R. Hubers, 52
Director since September 1989; president and chief executive
officer, IDS, since August 1993, and director, IDS, since January
1984. Senior vice president, Finance and chief financial officer,
IDS, from January 1984 to August 1993.
Richard W. Kling, 54
Director since February 1984; president since March 1994.
Executive vice president, Marketing and Products from January 1988
to March 1994. Senior vice president, IDS, since __________.
Director of IDS Life Series Fund, Inc. and manager of IDS Life
Variable Annuity Funds A and B.
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PAGE 33
Paul F. Kolkman, 48
Director since May 1984; executive vice president since March 1994;
vice president, Finance from May 1984 to March 1994; vice
president, IDS, since January 1987.
Peter A. Lefferts, 53
Director and executive vice president, Marketing since March 1994;
senior vice president and director, IDS, since February 1986.
Janis E. Miller, 43
Director and executive vice president, Variable Assets since March
1994; vice president, IDS, since June 1990. Director, Mutual Funds
Product Development and Marketing, IDS, from May 1987 to May 1990.
Director of IDS Life Series Fund, Inc. and manager of IDS Life
Variable Annuity Funds A and B.
James A. Mitchell, 53
Chairman of the board since March 1994; director since July 1984;
chief executive officer since November 1986; president from July
1984 to March 1994; executive vice president, IDS, since March
1994; director, IDS, since July 1984; senior vice president, IDS,
from July 1984 to March 1994.
Barry J. Murphy, 44
Director and executive vice president, Client Service, since March
1994; senior vice president, Operations, Travel Related Services
(TRS), a subsidiary of American Express Company, since July 1992;
vice president, TRS, from November 1989 to July 1992; chief
operating officer, TRS, from March 1988 to November 1989.
Stuart A. Sedlacek, 37
Director and executive vice president, Assured Assets since March
1994; vice president, IDS, since September 1988.
Melinda S. Urion, 41
Director and controller since September 1991; executive vice
president since March 1994; vice president and treasurer from
September 1991 to March 1994; corporate controller, IDS, since
__________; vice president, IDS, since September 1991; chief
accounting officer, IDS, from July 1988 to September 1991.
Officers Other Than Directors
Timothy V. Bechtold, 41
Vice president, Insurance Product Development, since __________.
David J. Berry, 51
Vice president since __________.
Alan R. Dakay, 42
Vice president, Institutional Insurance Marketing, since
__________.
Robert M. Elconin, __
Vice president since __________.
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PAGE 34
Morris Goodwin Jr., 43
Vice president and treasurer since March 1994; vice president and
corporate treasurer, IDS, since July 1989; chief financial officer
and treasurer, IDS Bank & Trust, from January 1988 to July 1989.
Lorraine R. Hart, 43
Vice president, Investments, since __________.
Ryan R. Larson, 44
Vice president, Annuity Product Development, since __________.
Mary O. Neal, 41
Vice president, Sales Support, since __________.
James R. Palmer, 49
Vice president, Taxes, since __________.
F. Dale Simmons, 57
Vice president, Real Estate Loan Management, since __________.
William A. Stoltzmann, 46
Vice president, general counsel and secretary since 1985; vice
president and assistant general counsel, IDS, since __________.
*The address for all of the directors and principal officers is:
IDS Tower 10, Minneapolis, MN 55440-0010.
Executive Compensation
Executive officers of IDS Life also may serve one or more
affiliated companies. The following table reflects cash
compensation paid to the five most highly compensated executive
officers as a group for services rendered in 1994 to IDS Life and
its affiliates. The table also shows the total cash compensation
paid to all executive officers of IDS Life, as a group, who were
executive officers at any time during 1994.
Name of individual Cash
or number in group Position held compensation
Five most highly compensated
executive officers as a group: $
James A. Mitchell President
Richard W. Kling Exec. Vice President,
Marketing and Products
ReBecca K. Roloff Exec. Vice President,
Operations
Alan R. Dakay Vice President,
Institutional Insurance Marketing
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PAGE 35
Paul F. Kolkman Vice President,
Finance
All executive officers
as a group (12) $
Security Ownership of Management
IDS Life's directors and officers do not beneficially own any
outstanding shares of stock of IDS Life. All of the outstanding
shares of stock of IDS Life are beneficially owned by its parent,
American Express Financial Corporation. The percentage of shares
of American Express Financial Corporation owned by any director,
and by all directors and officers of IDS Life as a group, does not
exceed one percent of the class outstanding.
Legal Proceedings and Opinion
Legal matters in connection with federal laws and regulations
affecting the issue and sale of the Contracts described in this
prospectus and the organization of IDS Life, its authority to issue
Contracts under Minnesota law and the validity of the forms of the
Contracts under Minnesota law have been passed on by the General
Counsel of IDS Life.
Experts
The consolidated financial statements of IDS Life Insurance Company
at Dec. 31, 1994, and 1993, and for each of the three years in the
period ended Dec. 31, 1994, appearing in this Prospectus and
Registration Statement have been audited by Ernst & Young LLP,
independent auditors, as set forth in their reports thereon
appearing elsewhere herein and in the Registration Statement, and
are included in reliance upon such reports given upon the authority
of such firm as experts in accounting and auditing.
Appendix A
Partial Surrender Illustration
Involving a Surrender Charge and a Market Value Adjustment
Annuity Assumptions:
Single Payment $10,000
Guarantee Period 10 Years
Guarantee Rate (ig) 4.5 percent effective
annual yield
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PAGE 36
End of Contract year
Contract Surrender Accumulation Values
year Charge % if no surrenders
1 8% $10,450.00
2 7 $10,920.25
3 6 $11,411.66
4 5 $11,925.19
5 4 $12,461.82
6 3 $13,022.60
7 2 $13,608.62
8 1 $14,221.01
9 0 $14,860.95
10 0 $15,529.69
Partial Surrender Assumptions:
On the first day of your 4th Contract year you request a partial
surrender of:
Example I - $2,000 of your Accumulation Value
Example II - A $2,000 net surrender check
You may surrender 10 percent of $11,411.66 (end of 3rd Contract
year Accumulation Value) without surrender charge but subject to a
Market Value Adjustment -- this is $1,141.17
The excess Market Adjusted Value surrendered is subject to both a 5
percent (4th Contract year) surrender charge and a Market Value
Adjustment.
The current rate (ic) for applicable new sales and renewals = 4
percent
The number of full years left in your Guarantee Period (N) = 7
The number of fractional years left in your Guarantee Period (t) =
0
Example I - $2,000 of Accumulation Value Surrendered
What Will Be Your Market Value Adjustment Amount?
The Market Adjusted Value of your $2,000 partial surrender will be:
Renewal Value of Accumulation Value Surrendered
(1 + ic + .0025)(N+t)
= $2,000 (1 + ig)7
(1 + ic + .0025)7
= $2,000 (1.045)7
(1.0425)7
= $2,033.82
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PAGE 37
The Market Value Adjustment = the Market Adjusted Value surrendered
less the Accumulation Value surrendered
$2,033.82 - $2,000 = $33.82
(NOTE: This Market Value Adjustment is Positive. In Other Cases
The Market Value Adjustment May Be Negative.)
What Will Be Your Surrender Charge Amount?
The surrender charge will be 5 percent multiplied by the excess of
the Market Adjusted Value over the Accumulation Value that may be
surrendered without surrender charge:
($2,033.82 - $1,141.17) x .05 = $44.63
What Net Amount Will You Receive?
Your Contract's Accumulation Value will decrease by $2,000 and we
will send you a check for:
Accumulation Value surrendered $2,000.00
Plus Market Value Adjustment 33.82
Less surrender charge (44.63)
Net surrender amount $1,989.19
Example II - $2,000 Net Surrender Check Requested
What Will Be The Accumulation Value Surrendered?
Tell us if you want a specific net surrender check amount. We will
work backwards using an involved formula to determine how much
Accumulation Value must be surrendered to result in a net check to
you for a specific amount. For a $2,000 net check to you, the
formula results in $2,011.20 of Accumulation Value to be
surrendered.
What Will Be Your Market Value Adjustment Amount?
The Market Adjusted Value is:
Renewal Value of Accumulation Value Surrendered
(1 + ic + .0025)(N+t)
= $2,011.20 (1 + ig)7
(1 + ic + .0025)7
= $2,011.20 (1.045)7
(1.0425)7
= $2,045.21
The Market Value Adjustment = the Market Adjusted Value surrendered
less the Accumulation Value surrendered
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PAGE 38
$2,045.21 - $2,011.20 = $34.00
(NOTE: This Market Value Adjustment is Positive. In Other Cases
The Market Value Adjustment May Be Negative.)
What Will Be Your Surrender Charge Amount?
The surrender charge will be 5 percent multiplied by the excess of
the Market Adjusted Value over the Accumulation Value that may be
surrendered without surrender charge:
($2,045.21 - $1,141.17) x .05 = $45.20
What Net Amount Will You Receive?
Your Contract's Accumulation Value will decrease by $2,011.20 and
we will send you a check for:
Accumulation Value surrendered $2,011.20
Plus Market Value Adjustment 34.00
Less surrender charge (45.20)
Net surrender amount $2,000.00
Appendix B
Market Value Adjustment Illustration
Annuity Assumptions:
Single Payment $50,000
Guarantee Period 10 Years
Guarantee Rate 4.5 percent effective annual yield
Market Adjustment Assumptions: These examples show how the Market
Value Adjustment may affect your Contract values. The surrenders
in these examples occur one year after the Contract date. There
are no previous surrenders.
The Accumulation Value at the end of one year is $52,250. If there
aren't any surrenders, the Renewal Value at the end of the 10 year
Guarantee Period will be $77,648.47.
The Market Value Adjustment is based on the rate we are crediting
(at the time of your surrender) on new Contracts with the same
length Guarantee Period as the time remaining in your Guarantee
Period. After one year, you have 9 years left of your 10 year
Guarantee Period.
Example I shows a downward Market Value Adjustment. Example II
shows an upward Market Value Adjustment. These examples do not
show the surrender charge (if any) which would be calculated
separately after the Market Value Adjustment. Surrender charge
calculations are shown in Appendix A.
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PAGE 39
Market Adjusted Value Formula:
Market Adjusted = (Renewal Value)
Value (1 + ic + .0025)(N+t)
Renewal Value -- The Accumulation Value at the end of the
current Guarantee Period
ic -- The Current Interest Rate offered for new
Contract sales and renewals for the number of
years remaining in the Guarantee Period
N -- The number of complete Contract years to the
end of the current Guarantee Period
t -- The fraction of the Contract year remaining to
the end of the Contract year
Example I - Downward Market Value Adjustment
A surrender results in a downward Market Value Adjustment when
interest rates have increased. Assume after 1 year, we are now
crediting 5 percent for a new Contract with a 9 year Guarantee
Period. If you fully surrender, the Market Adjusted Value would
be:
Renewal Value
(1 + ic + .0025)(N+t)
= $77,648.47
(1 + .05 + .0025)9
= $48,993
The Market Value Adjustment is a $3,257 reduction of the
Accumulation Value:
($3,257) = $48,993 - $52,250
If you surrendered half of your Contract instead of all, the Market
Adjusted Value of the surrendered portion would be one-half that of
the full surrender:
$38,824.24
$24,496.50 = (1 + .05 + .0025)9
Example II - Upward Market Value Adjustment
A surrender results in an upward Market Value Adjustment when
interest rates have decreased. Assume after 1 year, we are now
crediting 4 percent for a new Contract with a 9 year guarantee
period. If you fully surrender, the Market Adjusted Value would
be:
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PAGE 40
Renewal Value
(1 + ic + .0025)(N+t)
= $77,648.47
(1 + .04 + .0025)9
= $53,388.58
The Market Value Adjustment is a $1,138.58 increase of the
Accumulation Value:
$1,138.58 = $53,388.50 - $52,250
If you surrendered half of your Contract instead of all, the Market
Adjusted Value of the surrendered portion would be one-half that of
the full surrender:
$38,824.24
$26,694.29 = (1 + .04 + .0025)9
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PAGE 41
PART II.
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution.
The expenses of the issuance and distribution of the interests
in the IDS Life Account MGA of IDS Life Insurance Company to be
registered, other than commissions on sales of the Contracts, are
to be borne by the registrant.
Item 14. Indemnification of Directors and Officers
Section 300.083 of Minnesota Law provides in part that a
corporation organized under such law shall have power to indemnify
anyone made, or threatened to be made, a party to a threatened,
pending or completed proceeding, whether civil or criminal,
administrative or investigative, because he is or was a director or
officer of the corporation, or served as a director or officer of
another corporation at the request of the corporation.
Indemnification in such a proceeding may extend to judgments,
penalties, fines and amounts paid in settlement, as well as to
reasonable expenses, including attorneys' fees and disbursements.
In a civil proceeding, there can be no indemnification under the
statute, unless it appears that the person seeking indemnification
has acted in good faith and in a manner he reasonably believed to
be in, or not opposed to, the best interests of the corporation and
its shareholders and unless such person has received no improper
personal benefit; in a criminal proceeding, the person seeking
indemnification must also have no reasonable cause to believe his
conduct was unlawful.
Article IX of the By-laws of the IDS Life Insurance Company
requires the IDS Life Insurance Company to indemnify directors and
officers to the extent indemnification is permitted as stated by
the preceding paragraph, and contains substantially the same
language as the above-mentioned Section 300.083.
Article IX, paragraph (2), of the By-laws of the IDS Life
Insurance Company provides as follows:
"Section 2. The Corporation 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."
<PAGE>
PAGE 42
The parent company of IDS Life Insurance Company maintains an
insurance policy which affords liability coverage to directors and
officers of the IDS Life Insurance Company while acting in that
capacity. IDS Life Insurance Company pays its proportionate share
of the premiums for the policy.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Item 15. Recent Sales of Unregistered Securities
None
Item 16. Exhibits and Financial Statement Schedules
(a) Exhibits
3.1 Copy of Certificate of Incorporation of IDS Life
Insurance Company filed electronically as Exhibit 3.1 to
Post-Effective Amendment No. 5 to Registration Statement
No. 33-28976 is incorporated herein by reference.
3.2 Copy of the Amended By-laws of IDS Life Insurance Company
filed electronically as Exhibit 3.2 to Post-Effective
Amendment No. 5 to Registration Statement No. 33-28976 is
incorporated herein by reference.
3.3 Copy of Resolution of the Board of Directors of IDS Life
Insurance Company, dated May 5, 1989, establishing IDS
Life Account MGA filed electronically as Exhibit 3.3 to
Post-Effective Amendment No. 5 to Registration Statement
No. 33-28976 is incorporated herein by reference.
4.1 Copy of Group Annuity Contract, Form 30363C, filed
electronically as Exhibit 4.1 to Post-Effective Amendment
No. 5 to Registration Statement No. 33-28976 is
incorporated herein by reference.
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PAGE 43
4.2 Copy of Group Annuity Certificate, Form 30360C, filed
electronically as Exhibit 4.2 to Post-Effective Amendment
No. 5 to Registration Statement No. 33-28976 is
incorporated herein by reference.
4.3 Copy of Endorsement No. 30340C-GP to the Group Annuity
Contract filed electronically as Exhibit 4.3 to Post-
Effective Amendment No. 5 to Registration Statement No.
33-28976 is incorporated herein by reference.
4.4 Copy of Endorsement No. 30340C to the Group Annuity
Certificate filed electronically as Exhibit 4.4 to Post-
Effective Amendment No. 5 to Registration Statement No.
33-28976 is incorporated herein by reference.
5. Copy of Opinion of Counsel regarding legality of
Contracts, dated Oct. 3, 1990, filed electronically as
Exhibit 5 to Post-Effective Amendment No. 5 to
Registration Statement No. 33-28976 is incorporated
herein by reference.
22. Copy of List of Subsidiaries filed electronically as
Exhibit 22 to Post-Effective Amendment No. 5 to
Registration Statement No. 33-28976 is incorporated
herein by reference.
24. Consent of Independent Auditors filed electronically as
Exhibit 24 to Post-Effective Amendment No. 5 to
Registration Statement No. 33-28976 is incorporated
herein by reference.
25. Powers of Attorney, dated March 31, 1994, filed
electronically as Exhibit 25 to Post-Effective Amendment
No. 5 to Registration Statement No. 33-28976 is
incorporated herein by reference.
(b) Financial Statement Schedules
27. To be filed by amendment.
Item 17. Undertakings
A. The Registrant undertakes: (a) to file, during any period in
which offers or sales are being made, a post-effective amendment to
this registration statement: (i) to include any prospectus required
by Section 10(a)(3) of the Securities Act of 1933, (ii) to reflect
in the prospectus any facts or events arising after the effective
date of the Registration Statement (or the most recent post-
effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set
forth in the Registration Statement, (iii) to include any material
information with respect to the plan of distribution not previously
disclosed in the Registration Statement or any material change to
such information in the Registration Statement, (b) that, for the
purpose of determining any liability under the Securities Act of
1933, each such post-effective amendment may be deemed to be a new
<PAGE>
PAGE 44
Registration Statement relating to the securities offered therein
and the offering of such securities at that time may be deemed to
be the initial bona fide offering thereof, (c) that all
post-effective amendments will comply with the applicable forms,
rules and regulations of the Commission in effect at the time such
post-effective amendments are filed, and (d) to remove from
registration by means of a post-effective amendment any of the
securities being registered which will remain at the termination of
the offering.
B. The Registrant represents that it is relying upon the no-action
assurance given to the American Council of Life Insurance (pub.
avail. Nov. 28, 1988). Further, the Registrant represents that it
has complied with the provisions of paragraphs (1) - (4) of the no-
action letter.
<PAGE>
PAGE 45
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, IDS
Life Insurance Company has duly caused this Registration Statement
to be signed on behalf of the Registrant by the undersigned,
thereunto duly authorized in this City of Minneapolis, and State of
Minnesota on the 23rd day of February, 1995.
IDS Life Insurance Company
(Registrant)
By IDS Life Insurance Company
By /s/ James A. Mitchell*
James A. Mitchell
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following
persons in the capacities indicated on the 23rd day of February,
1995.
Signature Title
/s/ James A. Mitchell* Chairman of the Board
James A. Mitchell and Chief Executive
Officer
/s/ Richard W. Kling* Director and President
Richard W. Kling
/s/ Louis C. Fornetti* Director
Louis C. Fornetti
/s/ David R. Hubers* Director
David R. Hubers
/s/ Paul F. Kolkman* Director and Executive Vice
Paul F. Kolkman President
/s/ Peter A. Lefferts* Director and Executive Vice
Peter A. Lefferts President, Marketing
/s/ Janis E. Miller* Director and Executive Vice
Janis E. Miller President, Variable Assets
/s/ Barry J. Murphy* Director and Executive Vice
Barry J. Murphy President, Client Service
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PAGE 46
Signature Title
/s/ Stuart A. Sedlacek* Director and Executive Vice
Stuart A. Sedlacek President, Assured Assets
/s/ Melinda S. Urion* Director, Exective Vice
Melinda S. Urion President and Controller
*Signed pursuant to Power of Attorney dated March 31, 1994, filed
as Exhibit 25 to Registration Statement No. 33-28976 for IDS Life
Insurance Company (IDS Life Account MGA).
By:
Mary Ellyn Minenko
