Registration No. 33-76028
- ------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------
FORM N-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 |___|
Pre-Effective Amendment No. |___|
-------------------------- -----
Post-Effective Amendment No. 4 |_X_|
-----
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 |___|
Amendment No.
----- |___|
-----------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Exact Name of Registrant)
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Name of Insurance Company)
787 Seventh Avenue, New York, New York 10019
(Address of Insurance Company's Principal Executive Offices)
Insurance Company's Telephone Number, including Area Code: (212) 714-4086
---------------------------------
HOPE E. ROSENBAUM WERNER
Vice President
and Counsel
The Equitable Life Assurance Society of the United States
787 Seventh Avenue, New York, New York 10019
(Name and Address of Agent for Service)
----------------------------------
Please send copies of all communications to:
PETER E. PANARITES
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W., Washington, D.C. 20036
-----------------------------------
<PAGE>
CROSS REFERENCE SHEET
SHOWING LOCATION OF INFORMATION IN PROSPECTUS
---------------------------------------------
FORM N-3 ITEM PROSPECTUS CAPTION
------------- ------------------
1. Cover Page Cover Page
2. Definitions Part I - RIA Summary
3. Synopsis Part I - RIA Summary
4. Condensed Financial Part I - RIA Summary;
Information Condensed Financial Information
5. General Description Part I - RIA Summary;
of Registrant and Part III - Equitable Life and
Insurance Company Its Funds
6. Management Part II - Charges and Fees -
Investment Management and Financial
Accounting Fee Applicable to the
Funds; Part III - Equitable Life and
Its Funds - Investment Management
7. Deductions and Expenses Part II - Charges and Fees
8. General Description of Part V - Provisions of RIA and
Variable Annuity Contracts Retirement Benefits; Part VIII -
Participant Recordkeeping Services
(Optional)
9. Annuity Period Part V - Provisions of RIA and
Retirement Benefits - Annuity
Benefits
10. Death Benefit Not Applicable
11. Purchases and Part III - Equitable Life
Contract Value and Its Funds - Investment Objectives
and Policies; Purchase and Redemption
of Units; How We Determine the Unit
Value
- i -
<PAGE>
FORM N-3 ITEM PROSPECTUS CAPTION
------------- -----------------
12. Redemption Part II - Charges and Fees -
Contingent Withdrawal Charge; Part
III - Equitable Life and Its Funds -
Purchase and Redemption of Units; How
We Determine the Unit Value
13. Taxes Part VII - Tax and ERISA
Considerations
14. Legal Proceedings Part VI - Miscellaneous Matters -
Legal Proceedings
15. Table of Contents of SAI Table of Contents
the Statement of
Additional Information
- ii -
<PAGE>
CROSS REFERENCE SHEET SHOWING
LOCATION OF INFORMATION IN
STATEMENT OF ADDITIONAL INFORMATION
-----------------------------------
STATEMENT OF ADDITONAL
FORM N-3 ITEM INFORMATION CAPTION
------------- -------------------
16. Cover Page Cover Page
17. Table of Contents Table of Contents
18. General Information Part I - Fund Information
and History
19. Investment Objectives Part I - Fund
and Policies Information - Restrictions and
Requirements of the Bond, Balanced,
Common Stock and Aggressive Stock
Funds; Certain Investments of the
Bond Fund
20. Management Part II - Management for The Bond,
Balanced, Common Stock and Aggressive
Stock Funds and Equitable Life
21. Investment Advisory Part I - Fund Information -
and Other Services Brokerage Fees and Charges for
Securities Transactions; Part II -
Management for The Bond,
Balanced, Common Stock and Aggressive
Stock Fund and Equitable Life
22. Brokerage Allocation Part I - Fund Information -
Brokerage Fees and Charges for
Securities Transactions
23. Purchase and Pricing Part I - Fund Information -
of Securities Being Offered Summary of Unit Values; How We
Determine the Unit Value
24. Underwriters Part II - Management for The Bond,
Balanced, Common Stock and Aggressive
Stock Funds and Equitable Life
25. Calculation of Yield Not Applicable
Quotations of Money
Market Sub-Accounts
26. Annuity Payments Not Applicable
27. Financial Statements Part III - Financial Statements
- iii -
<PAGE>
Approximate Date of Proposed Public Offering: Continuous
It is proposed that this filing will become effective (check
appropriate box):
|___| Immediately upon filing pursuant to paragraph (b) of Rule 485 .
|_X_| On May 1 pursuant to paragraph (b) of Rule 485.
|___| 60 days after filing pursuant to paragraph (a)(1) of Rule 485.
|___| On (date) pursuant to paragraph (a)(1) of Rule 485.
|___| 75 days after filing pursuant to paragraph (a)(2) of Rule 485.
|___| On (date) pursuant to paragraph (a)(3) of Rule 485.
If appropriate, check the following box:
This post-effective amendment designates a new effective date for
|___| previously filed post-effective amendment.
- v -
<PAGE>
SUPPLEMENT, DATED MAY 1, 1996 TO
PROSPECTUS, DATED MAY 1, 1995, FOR
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT UNITS OF INTEREST UNDER
GROUP ANNUITY CONTRACTS
<TABLE>
<S> <C> <C>
o Money Market Fund o Growth & Income Fund Blended Funds:
o Intermediate Government o Equity Index Fund o Conservative Investors Fund
Securities Fund o Common Stock Fund o Balanced Fund
o Bond Fund o Global Fund o Growth Investors Fund
o Quality Bond Fund o International Fund
o High Yield Fund o Aggressive Stock Fund
</TABLE>
OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
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[RIA LOGO]
- --------------------------------------------------------------------------------
This supplement, dated May 1, 1996 (SUPPLEMENT), updates certain information in
the prospectus (PROSPECTUS) for the Retirement Investment Account (RIA) of The
Equitable Life Assurance Society of the United States (EQUITABLE LIFE), dated
May 1, 1995. You should keep the Supplement and the Prospectus for future
reference. We have filed with the Securities and Exchange Commission (SEC) our
Statement of Additional Information dated May 1, 1996, (SAI). If you have
previously received, but do not presently have, a copy of the Prospectus, you
may obtain an additional copy of the Prospectus, as well as a copy of the SAI,
from us, free of charge, if you write to Equitable Life, RIA Service Office,
Attn: SAI Request, 200 Plaza Drive, 1st Floor, Secaucus, NJ 07094-3689, call
(800) 967-4560 or (201) 392-5500 (Business Days, 9 A.M. to 5 P.M. Eastern Time)
or fax (201) 392-2285, 2286, or 2287, or mail in the SAI request form located at
the end of the Prospectus Supplement. The SAI is incorporated by reference into
the Supplement.
In the Supplement, each section of the Prospectus in which a change has been
made is identified and the number of each Prospectus page on which a change
occurs is also noted. Special terms used in the Prospectus have the same meaning
in the Supplement unless otherwise noted.
- --------------------------------------------------------------------------------
COPYRIGHT 1996 888-1114 (5/96)
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES.
ALL RIGHTS RESERVED.
<PAGE>
ON THE COVER PAGE OF THE PROSPECTUS, THE LAST SENTENCE OF THE FOURTH PARAGRAPH
IS DELETED.
ON PAGE 3, THE FIRST PARAGRAPH UNDER THE HEADING "RIA TERMS" IS DELETED AND
REPLACED BY THE FOLLOWING:
RIA is an investment program designed for employer plans that qualify for
tax-favored treatment under Section 401(a) of the Code. Eligible employer plans
include defined benefit plans, defined contribution plans or profit-sharing
plans, including 401(k) plans. RIA is composed of two group annuity contracts
(CONTRACTS), a MASTER RETIREMENT TRUST agreement, a participation or
installation agreement, an optional participant recordkeeping services (PRS)
agreement and fifteen investment options. The trustee of the Master Retirement
Trust has entered into the two Contracts with us to implement RIA. Currently the
Chase Manhattan Bank, N.A., acts as trustee under the Master Retirement Trust.
The sole responsibility of the Chase Manhattan Bank, N.A., is to serve as a
party to the Contracts. It has no responsibility for the administration of RIA.
ON PAGES 5 THROUGH 7, THE SECTIONS ENTITLED "FEE TABLES" AND "EXAMPLES" ARE
DELETED AND REPLACED BY THE FOLLOWING:
FEE TABLES
The purpose of these Tables is to assist you in understanding the various costs
and expenses which may affect employer plan balances participating in the Funds.
See PART II -- CHARGES AND FEES and PART V -- PROVISIONS OF RIA AND RETIREMENT
BENEFITS for a description of fees for optional PRS, loan fees, annuity purchase
charges and state or local tax charges. If an annuity benefit is elected under
RIA, a $175 annuity benefit charge will be imposed and a charge for any
applicable state or local taxes such as premium tax will be deducted from the
amount applied to provide an annuity benefit. The Tables reflect expenses of
Funds including, for Separate Account No. 51, the corresponding Trust Portfolio,
for the period ended December 31, 1995.
As explained in Part IV, the Guaranteed Interest Account is not a Fund.
Therefore, the only expenses shown in the Table which apply to the Guaranteed
Interest Account are the "Contingent Withdrawal Charge" and the "Ongoing
Operations Fee." In addition, there is a loan fee charged against the Guaranteed
Interest Account which is equal to 1% of the principal amount of the loan.
Certain expenses and fees shown in these Tables may not apply to your plan. To
determine whether a particular item in a Table applies (and the actual amount,
if any), consult the portion of the prospectus indicated in the notes.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
COMMON AGGRESSIVE
BOND BALANCED STOCK STOCK
FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PARTICIPATING PLAN
TRANSACTION EXPENSES:
Sales Load on Purchases............................................ [---------------------None------------------------]
Maximum Contingent Withdrawal Charge (as a percentage of
plan balances)(1)............................................... [------------------6% Maximum---------------------]
Maximum Annual Ongoing Operations Fee (as a percentage
of plan balances)(2)............................................ [-----------------1.25% Maximum-------------------]
SEPARATE ACCOUNT ANNUAL EXPENSES:
Administrative Charge.............................................. None None None None
Annual Investment Management Fee Including Financial
Accounting Fees (as a percentage of plan balances in
each Fund)...................................................... 0.50% 0.50% 0.50% 0.50%
---- ---- ---- ----
Total Separate Account Annual Expenses (3) 0.50% 0.50% 0.50% 0.50%
==== ==== ==== ====
TRUST ANNUAL EXPENSES: [----------------not applicable-------------------]
- -----------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) The contingent withdrawal charge is waived in certain circumstances. The
charge reduces to 2% of the amount withdrawn in the ninth participation
year and cannot be imposed after the ninth anniversary of a plan's
participation in RIA. See PART II -- CHARGES AND FEES -- CONTINGENT
WITHDRAWAL CHARGE.
(2) The annual ongoing operations fee is applied on a decremental scale,
declining to 0.50% on the portion of plan balances over $1,000,000,
except for plans that adopted RIA before February 9, 1986. See PART II --
CHARGES AND FEES.
(3) The Total Separate Account Annual Expenses are reflected in the Unit value.
</FN>
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT FUNDS OF SEPARATE ACCOUNT
NO. 51
---------------------------------------
CONSER-
INTERMEDIATE VATIVE GROWTH
MONEY GOVERNMENT QUALITY HIGH GROWTH & EQUITY INTER- INVES- INVES-
MARKET SECURITIES BOND YIELD INCOME INDEX GLOBAL NATIONAL TORS TORS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PARTICIPATING PLAN TRANSACTION
EXPENSES
Sales Load On Purchases.......... [-------------------------------------None-------------------------------------------------]
Maximum Contingent Withdrawal
Charge (as a percentage of
Plan Balances)(1) ............. [----------------------------------6% Maximum----------------------------------------------]
Maximum Annual Ongoing
Operations Fee (as a
percentage of
Plan Balances)(2).............. [--------------------------------1.25% Maximum---------------------------------------------]
SEPARATE ACCOUNT ANNUAL EXPENSES
Administrative Charge (3)(5)..... [-------------------------------------0.05%------------------------------------------------]
TRUST ANNUAL EXPENSES
Investment Advisory Fee ......... 0.40% 0.50% 0.55% 0.55% 0.55% 0.35% 0.53% 0.90% 0.55% 0.52%
Other Expenses................... 0.04% 0.07% 0.04% 0.05% 0.05% 0.13% 0.08% 0.13% 0.04% 0.04%
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Total Annual Expenses
for the Trust(4)(5).......... 0.44% 0.57% 0.59% 0.60% 0.60% 0.48% 0.61% 1.03% 0.59% 0.56%
==== ==== ==== ==== ==== ==== ==== ==== ==== ====
<FN>
Notes:
(1) The contingent withdrawal charge is waived in certain circumstances. The
charge reduces to 2% of the amount withdrawn in the ninth participation
year and cannot be imposed after the ninth anniversary of a plan's
participation in RIA. See PART II -- CHARGES AND FEES -- CONTINGENT
WITHDRAWAL CHARGE.
(2) The annual ongoing operations fee is applied on a decremental scale,
declining to 0.50% on the portion of plan balances over $1,000,000, except
for plans that adopted RIA before February 9, 1986. See PART II -- CHARGES
AND FEES.
(3) Separate Account expenses are shown as a percentage of each Investment
Fund's average value. We reserve the right to increase the separate account
administrative charge upon 90 days written notice to the employer. See PART
II -- CHARGES AND FEES.
(4) The Hudson River Trust expenses are shown as a percentage of each
portfolio's average value. See PART II -- CHARGES AND FEES -- TRUST CHARGES
TO PORTFOLIOS. Expenses shown for all portfolios except the International
Portfolio are for the fiscal year ended December 31, 1995. The amount shown
for the International Portfolio, which was established April 3, 1995, is
annualized. The investment advisory fee for each Portfolio may vary from
year to year depending upon the average daily net assets of the respective
Portfolio of the Trust. The maximum investment advisory fees, however,
cannot be changed without a vote of that Portfolio's shareholders. The
other direct operating expenses will also fluctuate from year to year
depending on actual expenses. The Trust expenses are shown as a percentage
of each Portfolio's average value. See PART II -- CHARGES AND FEES -- TRUST
CHARGES TO PORTFOLIOS.
(5) The Separate Account Annual Expenses and Trust Annual Expenses are
reflected in the Unit value.
</FN>
</TABLE>
3
<PAGE>
EXAMPLES --
The examples below show the expenses that a plan would pay in two hypothetical
situations, assuming a single investment of $1,000 in each Fund listed and a 5%
annual return on assets. For purposes of these examples, the ongoing operations
fee is computed by reference to the actual aggregate annual ongoing operations
fee as a percentage of total assets held under the Contracts invested in
Registered Units. The expenses shown would be lower for corporate plans which
generally have greater total assets. See Note (2) to the Table above. These
examples assume that no loan has been taken and do not reflect PRS or annuity
benefit charges or a charge for premium taxes, none of which may apply to any
particular Participant.
IF THE ENTIRE EMPLOYER PLAN BALANCE IS WITHDRAWN AT THE END OF EACH PERIOD
SHOWN, THE EXPENSE WOULD BE --
1 YEAR 3 YEARS 5 YEARS 10 YEARS
Money Market ................. 75.41 96.79 118.95 156.12
Intermediate Government 76.68 100.73 125.72 171.07
Securities ................ 74.52 94.06 114.25 145.66
Bond ......................... 75.50 97.10 119.47 157.28
Quality Bond ................. 76.88 101.34 126.75 173.36
High Yield ................... 76.97 101.64 127.27 174.49
Growth & Income .............. 76.97 101.64 127.27 174.49
Equity Index ................. 75.80 98.01 121.04 160.74
Common Stock ................. 75.50 97.10 119.47 157.28
Global ....................... 77.07 101.94 127.79 175.63
International ................ 81.18 114.57 149.36 222.44
Aggressive Stock ............. 75.50 97.10 119.47 157.28
Blended Funds:
Conservative Investors..... 76.88 101.34 126.75 173.36
Balanced .................. 75.50 97.10 119.47 157.28
Growth Investors .......... 76.58 100.43 125.20 169.93
IF THE ENTIRE EMPLOYER PLAN BALANCE IS NOT WITHDRAWN AT THE END OF EACH PERIOD
SHOWN, THE EXPENSE WOULD BE --
1 YEAR 3 YEARS 5 YEARS 10 YEARS
Money Market .................. 13.20 41.07 71.03 156.12
Intermediate Government
Securities ................. 14.55 45.22 78.11 171.07
Bond .......................... 13.30 41.39 71.57 157.28
Quality Bond .................. 14.76 45.86 79.19 173.36
High Yield .................... 14.86 46.18 79.73 174.49
Growth & Income ............... 14.86 46.18 79.73 174.49
Equity Index .................. 13.61 42.35 73.21 160.74
Common Stock .................. 13.30 41.39 71.57 157.28
Global ........................ 14.97 46.50 80.28 175.63
International ................. 19.35 59.83 102.84 222.44
Aggressive Stock .............. 13.30 41.39 71.57 157.28
Blended Funds:
Conservative Investors...... 14.76 45.86 79.19 173.36
Balanced ................... 13.30 41.39 71.57 157.28
Growth Investors ........... 14.45 44.90 77.56 169.93
- -------------------------------------------------------------------------------
These examples should not be considered a representation of past or future
expenses for each Fund. Actual expenses may be greater or less than those shown
above. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
ON PAGES 7 THROUGH 12, THE SECTION ENTITLED "CONDENSED FINANCIAL INFORMATION" IS
DELETED AND REPLACED BY THE FOLLOWING:
CONDENSED FINANCIAL INFORMATION
The following tables give information about income, expenses and capital changes
of the Bond, Balanced, Common Stock and Aggressive Stock Funds, and Unit values
of the Investment Funds of Separate Account No. 51, attributable to a Registered
Unit outstanding for the periods indicated, along with other supplementary data.
Registered Units have been offered under RIA in the Bond, Balanced, Common Stock
and Aggressive Stock Funds as of May 1, 1992, January 23, 1985, April 8, 1985
and July 7, 1986, respectively. Registered and Non-Registered Units for the
Investment Funds of Separate Account No. 51 were first offered under RIA on June
1, 1994. Non-registered Units have been offered under RIA in the Bond Fund since
1991, the Balanced and Common Stock Funds since 1983 and the Aggressive Stock
Fund since 1986.
Condensed Financial Information for the Portfolios is contained in the Hudson
River Trust prospectus attached to the Supplement.
High portfolio turnover rates may result in additional transaction and brokerage
expenses which are reflected in the Unit values.
The selected per unit data and ratios for the years ended December 31, 1995,
1994 and 1993, have been audited by Price Waterhouse LLP, independent
accountants, as stated in their report on the FINANCIAL STATEMENTS contained in
Part III of the SAI. The selected per unit data and ratios for each of the years
prior to 1993 were audited by other independent accountants. The financial
statements of the separate accounts as well as the Consolidated Financial
Statements of Equitable Life are contained in the SAI. These tables should be
read in conjunction with the Financial Statements.
4
<PAGE>
SEPARATE ACCOUNT NO. 13 -- POOLED (BOND FUND) OF THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIOD INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE F)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------
MAY 1, 1992 -
1995 1994 1993 DECEMBER 31, 1992
------------ ------------ ------------ -------------------
<S> <C> <C> <C> <C>
Income............................. $ 3.07 $ 2.32 $ 2.18 $ 0.59
Expenses (Note B).................. (0.23) (0.12) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ............. 2.84 2.20 2.18 0.59
Net realized and
unrealized gain (loss)
on investments
(Note C)........................ 3.72 (2.99) 1.65 2.37
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Bond Fund
Unit Value....................... 6.56 (0.79) 3.83 2.96
Bond Fund
Unit Value
(Note A):
Beginning of
Period....................... 42.35 43.14 39.31 36.35
- -----------------------------------------------------------------------------------------------------------------------------------
End of Period.................. $48.91 $42.35 $43.14 $39.31
===================================================================================================================================
Ratio of expenses to
average net assets
attributable to Units
(Note B)......................... 0.50% 0.36% N/A N/A
Ratio of net investment income to
average net assets
attributable to Units............ 6.17% 5.12% 5.17% 6.00% (Note D)
Number of registered
Bond Fund Units
outstanding at end of period .... 2,392 1,632 545 288
Portfolio turnover rate (Note E)... 288% 264% 254% 151%
===================================================================================================================================
<FN>
See Notes following tables.
</FN>
</TABLE>
5
<PAGE>
SEPARATE ACCOUNT NO. 10 -- POOLED (BALANCED FUND) OF THE EQUITABLE LIFE
ASSURANCE SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE F)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Income .................... $ 3.18 $ 2.63 $ 2.67 $ 2.69 $ 2.63 $ 3.08 $ 3.04 $ 2.30 $ 1.63 $ 1.56
Expenses (Note B) ......... (0.43) (0.23) -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income ..... 2.75 2.40 2.67 2.69 2.63 3.08 3.04 2.30 1.63 1.56
Net realized and unrealized
gain (loss)
on investments
(Note C) ............... 13.34 (9.48) 7.28 (4.51) 20.34 (3.17) 8.66 3.44 (3.54) 4.09
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in Balanced Fund Unit
Value .................. 16.09 (7.08) 9.95 (1.82) 22.97 (0.09) 11.70 5.74 (1.91) 5.65
Balanced Fund Unit Value
(Note A):
Beginning of
Period ............ 78.77 85.85 75.90 77.72 54.75 54.84 43.14 37.40 39.31 33.66
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period ....... $94.86 $78.77 $85.85 $75.90 $77.72 $54.75 $54.84 $43.14 $37.40 $39.31
====================================================================================================================================
Ratio of expenses to
average net assets
attributable to Units
(Note B) ............... 0.50% 0.30% N/A N/A N/A N/A N/A N/A N/A N/A
Ratio of net investment
income to average net
assets attributable to
Units .................. 3.19% 2.94% 3.31% 3.68% 4.15% 5.78% 6.12% 5.70% 3.79% 3.97%
Number of registered
Balanced Fund
Units outstanding at end
of period .............. 73,979 86,914 87,242 81,860 80,964 86,377 86,942 67,815 54,112 31,233
Portfolio turnover rate
(Note E) ............... 170% 107% 102% 90% 114% 199% 175% 172% 238% 230%
====================================================================================================================================
<FN>
See Notes to following tables.
</FN>
</TABLE>
6
<PAGE>
SEPARATE ACCOUNT NO. 4 -- POOLED (COMMON STOCK FUND) OF THE EQUITABLE LIFE
ASSURANCE SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIOD INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE F)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Income ............... $ 3.98 $ 3.83 $ 3.69 $ 3.13 $ 2.74 $ 3.82 $ 3.42 $ 2.52 $ 2.37 $ 2.58
Expenses
(Note B) .......... (2.03) (1.00) -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment
income ............ 1.95 2.83 3.69 3.13 2.74 3.82 3.42 2.52 2.37 2.58
Net realized and
unrealized gain
(loss) on
investments
(Note C) .......... 108.54 (8.98) 56.16 1.86 96.86 (26.92) 62.70 19.19 4.86 12.09
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
Common Stock
Fund Unit Value ... 110.49 (6.15) 59.85 4.99 99.60 (23.10) 66.12 21.71 7.23 14.67
Common Stock Fund
Unit Value
(Note A):
Beginning of
Period ....... 346.92 353.07 293.22 288.23 188.63 211.73 145.61 123.90 116.67 102.00
- ------------------------------------------------------------------------------------------------------------------------------------
End of
Period ....... $457.41 $346.92 $353.07 $293.22 $288.23 $188.63 $211.73 $145.61 $123.90 $116.67
====================================================================================================================================
Ratio of
expenses to
average net
assets
attributable
to Units
(Note B)........... 0.50% 0.30% N/A N/A N/A N/A N/A N/A N/A N/A
Ratio of net
investment
income to
average net
assets
attributable
to Units........... 0.49% 0.81% 1.17% 1.13% 1.14% 2.02% 1.85% 1.84% 1.69% 2.18%
Number of
registered
Common Stock
Fund Units
outstanding at
end of period...... 25,937 27,438 24,924 23,331 20,799 18,286 14,129 8,461 5,466 3,508
Portfolio turnover
rate (Note E) ..... 108% 91% 82% 68% 66% 93% 113% 101% 121% 102%
====================================================================================================================================
<FN>
See Notes following tables.
</FN>
</TABLE>
7
<PAGE>
SEPARATE ACCOUNT NO. 3 -- POOLED (AGGRESSIVE STOCK FUND) OF THE EQUITABLE LIFE
ASSURANCE SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE F)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, JULY 7, 1986 -
------------------------------------------------------------------------------------------------ DECEMBER 31,
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986,
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Income .................... $ 0.98 $ 0.71 $ 1.01 $ 1.21 $ 1.06 $ 1.03 $ 1.06 $ 0.60 $ 0.62 $ 0.24
Expenses (Note B) ......... (0.75) (0.37) -- -- -- -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net investment
income ................. 0.23 0.34 1.01 1.21 1.06 1.03 1.06 0.60 0.62 0.24
Net realized and unrealized
gain (loss) on
investments
(Note C) ............... 40.49 (5.81) 17.43 (4.23) 55.15 4.45 17.77 0.35 (1.36) (5.79)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
Aggressive Stock Fund
Unit Value ............. 40.72 (5.47) 18.44 (3.02) 56.21 5.48 18.83 0.95 (0.74) (5.55)
Aggressive Stock Fund Unit
Value (Note A):
Beginning of
Period ............ 129.95 135.42 116.98 120.00 63.79 58.31 39.48 38.53 39.27 44.82
- -------------------------------------------------------------------------------------------------------------------------------
End of Period ....... $170.67 $129.95 $135.42 $116.98 $120.00 $63.79 $58.31 $39.48 $38.53 $39.27
====================================================================================================================================
Ratio of expenses to
average net assets
attributable to Units
(Note B) ............... 0.50% 0.30% N/A N/A N/A N/A N/A N/A N/A N/A
Ratio of net investment
income to average
net assets attributable
to Units ............... 0.15% 0.25% 0.82% 1.09% 1.11% 1.72% 2.09% 1.47% 1.35% 1.23%(Note D)
Number of registered
Aggressive Stock Fund
Units outstanding at end
of period................ 26,043 26,964 23,440 21,917 14,830 8,882 5,519 3,823 2,630 651
Portfolio turnover rate
(Note E) ................ 137% 94% 83% 71% 63% 48% 92% 103% 227% 162%
====================================================================================================================================
<FN>
See Notes following tables.
</FN>
</TABLE>
8
<PAGE>
Notes:
A. The values for a Registered Bond Fund, Balanced Fund, Common Stock Fund and
Aggressive Stock Fund Unit on May 1, 1992, January 23, 1985, April 8, 1985
and July 7, 1986, the first date on which payments were allocated to
purchase Registered Units in each Fund, were $36.35, $28.07, $84.15 and
$44.82, respectively.
B. Certain expenses under RIA are borne directly by employer plans
participating in RIA. Accordingly, those charges and fees discussed under
PART II-- CHARGES AND FEES are not included above and did not affect the
Fund Unit values. Those charges and fees are recovered through an
appropriate reduction in the number of Units credited to each employer plan
participating in the Fund unless the charges and fees are billed directly to
the employer. The dollar amount recovered is included in the expenses in the
Statements of Operations and Changes in Net Assets for each Fund, which
appear in PART III -- FINANCIAL STATEMENTS of the SAI.
As of June 1, 1994, the Annual Investment Management and Financial
Accounting Fee is deducted from the assets of the Bond, Balanced, Common
Stock and Aggressive Stock Funds and is reflected in the computation of
their unit values. If all charges and fees had been made directly against
employer plan assets in the Funds and had been reflected in the computation
of Fund Unit Value, RIA Registered Unit expenses would have amounted to
$0.70, $1.28, $6.31 and $2.34 for the year ended December 31, 1995 on a per
Unit basis for the Bond, Balanced, Common Stock and Aggressive Stock Funds,
respectively. For the same reporting periods, the ratio of expenses to
average net assets attributable to Registered Units would have been (on an
annualized basis) 1.52%, 1.49%, 1.56% and 1.57%, for the Bond, Balanced,
Common Stock and Aggressive Stock Funds, respectively.
C. See Note 2 to Financial Statements of Separate Account Nos. 13 (Pooled), 10
(Pooled), 4 (Pooled), 3 (Pooled) and 51 which appear in Part III of the SAI.
D. Annualized basis.
E. The portfolio turnover rate excludes all short-term U.S. Government
securities and all other securities whose maturities at the time of
acquisition were one year or less. The rate stated is the annual turnover
rate for the entire Separate Account Nos. 13 -- Pooled, 10 -- Pooled, 4 --
Pooled and 3 -- Pooled.
F. Income, expenses, gains and losses shown above pertain only to employer
plans' accumulations attributable to RIA Registered Units. Other plans and
trusts also participate in Separate Account Nos. 13 -- Pooled, 10 -- Pooled,
4 -- Pooled and 3 -- Pooled and may have operating results and other
supplementary data different from those shown above.
<TABLE>
<CAPTION>
SEPARATE ACCOUNT NO. 51 (POOLED) UNIT VALUES
INTERMEDIATE
MONEY GOVERNMENT QUALITY HIGH GROWTH EQUITY CONSERVATIVE GROWTH
MARKET SECURITIES BOND YIELD & INCOME INDEX GLOBAL INTERNATIONAL INVESTORS INVESTORS
FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Unit Value as of:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
December 31, 1994 ..... $102.65 $ 98.94 $ 99.83 $ 98.99 $ 99.81 $101.71 $ 99.84 $ -- $ 99.83 $ 99.52
December 31, 1995...... 108.49 112.07 116.76 118.64 123.78 138.75 118.56 104.60 120.14 125.70
Number of Registered Units
Outstanding at
December 31, 1995...... 1,374 248 52 40 1,323 641 6,314 -- 236 4,502
</TABLE>
ON PAGE 13, THE FIRST FOOTNOTE IS DELETED.
ON PAGE 17, THE SECOND AND THIRD PARAGRAPHS UNDER THE HEADING "EQUITABLE LIFE"
ARE DELETED AND REPLACED BY THE FOLLOWING:
Equitable Life is a wholly-owned subsidiary of The Equitable Companies
Incorporated (the "Holding Company"). The largest stockholder of the Holding
Company is AXA, a French insurance holding company. AXA beneficially owns 60.6%
of the outstanding shares of common stock of the Holding Company as well as
$392.2 million stated value of its issued and outstanding Series E Convertible
Preferred Stock. Under its investment arrangements with Equitable Life and the
Holding Company, AXA is able to exercise significant influence over the
operations and capital structure of the Holding Company and its subsidiaries,
including Equitable Life. AXA is the principal holding company for most of the
companies in one of the largest insurance groups in Europe. The majority of
AXA's stock is controlled by a group of five French mutual insurance companies.
9
<PAGE>
Equitable Life, the Holding Company and their subsidiaries, managed
approximately $195.3 billion of assets as of December 31, 1995, including third
party assets of approximately $144.4 billion. We are one of the nation's leading
pension fund managers. These assets are primarily managed for retirement and
annuity programs for businesses, tax-exempt organizations and individuals. This
broad customer base includes nearly half the Fortune 100, more than 42,000 small
businesses, state and local retirement funds in more than half the 50 states,
approximately 250,000 employees of educational and non-profit institutions, as
well as nearly 500,000 individuals. Millions of Americans are covered by
Equitable Life's annuity, life, health and pension contracts.
ON PAGE 17, THE SECOND PARAGRAPH UNDER THE HEADING "ABOUT OUR FUNDS" IS DELETED
AND REPLACED BY THE FOLLOWING:
We established the Growth Investors, Conservative Investors and Global Funds as
Investment Funds of Separate Account No. 51 under the Insurance Law of New York
State in 1993. The Money Market, Intermediate Government Securities, Quality
Bond, High Yield, Growth & Income and Equity Index Funds were established as
Investment Funds of Separate Account No. 51 in 1994. The International Fund was
established as an investment fund of Separate Account No. 51 on September 1,
1995. The Investment Funds of Separate Account No. 51 invest in shares of a
corresponding Portfolio of the Trust which are actively managed as described in
the attached Trust Prospectus.
ON PAGE 18, THE FIRST PARAGRAPH UNDER THE HEADING "HOW WE DETERMINE THE UNIT
VALUE" IS DELETED AND REPLACED BY THE FOLLOWING:
The Unit values (rounded to the nearest cent) of the Bond, Balanced, Common
Stock and Aggressive Stock Funds were $36.35, $28.07, $84.15, and $44.82,
respectively, on May 1, 1992, January 23, 1985, April 8, 1985 and July 7, 1986,
respectively, the first date on which Registered Units under the Contracts were
purchased in these Funds under RIA. The Unit values (rounded to the nearest
cent) of the Money Market, Intermediate Government Securities, Quality Bond,
High Yield, Growth & Income, Equity Index, Global, Conservative Investors and
Growth Investors Funds were $100.00 on June 1, 1994, the first date on which
Registered Units under the Contracts were purchased in these Funds. The Unit
value (rounded to the nearest cent) of the International Fund was $100.00 on
September 1, 1995, the first date on which Registered Units under the Contracts
were purchased in this Fund.
ON PAGES 19 THROUGH 20, THE INFORMATION UNDER THE HEADING "BALANCED FUND" IS
DELETED AND REPLACED BY THE FOLLOWING:
The Balanced Fund's investment objective is to achieve both appreciation of
capital and current income by investments in a diversified portfolio of common
stocks, other equity-type securities and longer-term fixed income securities,
and current income by investments in publicly traded debt securities and
short-term money market instruments. The investment mix is determined by the
Fund manager.
We will vary the portion of the Balanced Fund's assets invested in each type of
security in accordance with our evaluation of economic conditions, the general
level of common stock prices, anticipated interest rates and other relevant
considerations, including our assessment of the risks associated with each
investment medium. The Fund is subject to the risk that we may incorrectly
predict changes in the relative values of the equity and debt markets.
In general, publicly traded equity securities will comprise the greatest portion
of the Balanced Fund's assets. At the years ended December 31, 1985 through
1995, the percentage of the Balanced Fund's assets invested in equity securities
(including equity-type securities such as convertible preferred stocks or
convertible debt instruments) has ranged from 50% to 57%.
The Fund's non-money market debt securities will consist primarily of publicly
traded securities issued or guaranteed by the United States Government or its
agencies or instrumentalities, and corporate fixed income securities, including,
but not limited to, bank obligations, notes, asset-backed securities, mortgage
pass-through obligations, collateralized mortgage obligations, zero coupon bonds
and preferred stock. The Balanced Fund may also buy debt securities with equity
features such as conversion or exchange rights, or warrants for the acquisition
of stock or participations, based on revenues, sales or profits. The Balanced
Fund's non-money market debt securities will be subject to the same investment
quality criteria at the time of purchase, as are described above for the
non-money market investments of the Bond Fund. The average maturity of the
non-money market debt securities held by the Balanced Fund will vary according
to market conditions and the state of interest rate cycles.
The Balanced Fund may invest in money market securities through our Separate
Account No. 2A or directly. See COMMON STOCK FUND below. The investments the
Balanced Fund makes in money market instruments will be payable only in United
States dollars and will consist principally of securities issued or guaranteed
by the United States Government or one of its agencies or instrumentalities,
negotiable certificates of deposit, bankers' acceptances or bank time deposits,
repurchase agreements (covering securities issued or guaranteed by the United
States Government or one of its agencies or instrumentalities, certificates of
deposit or bankers' acceptances), commercial paper that is rated Prime-1 by
Moody's Investors Services, Inc. (MOODY'S) or A-1 or A-1 Plus by Standard &
Poor's Corporation
10
<PAGE>
(S&P), unrated commercial paper, master demand notes or variable amount floating
rate notes of any issuer that has an outstanding issue of unsecured debt that is
currently rated Aa or better by Moody's or AA or better by S&P with less than
one year to maturity. Such investments may include certificates of deposit and
time deposits of London Branches of United States banks (these investments are
usually referred to as EURODOLLARS) and certificates of deposit and commercial
paper issued by Schedule B Banks (Canadian chartered bond subsidiaries of United
States banks). For additional information concerning the debt instruments in
which the Balanced Fund may invest, see PART I -- FUND INFORMATION -- CERTAIN
INVESTMENTS OF THE BOND AND BALANCED FUNDS in the SAI.
Mortgage pass-through securities and certain collateralized mortgage
obligations, asset-backed securities and other debt instruments in which the
Fund may invest, are subject to prepayments prior to their stated maturity. It
is usually not possible to accurately predict the rate at which prepayments will
be made, which rate may be affected, among other things, by changes in generally
prevailing market interest rates. If prepayments occur, the Fund suffers the
risk that it will not be able to reinvest the proceeds at as high a rate of
interest as it had previously been receiving. Also, the Fund will incur a loss
to the extent that prepayments are made for an amount that is less than the
value at which the security was then being carried by the Fund. Moreover,
securities that may be prepaid tend to increase in value less during times of
declining interest rates, and to decrease in value more during times of
increasing interest rates, than do securities that are not subject to
prepayment.
The Fund may invest up to 10% of its total assets in securities that are not
readily marketable and may invest up to 20% of its total assets in foreign
securities. Certain risks of investment in illiquid or foreign securities are
discussed below under COMMON STOCK FUND. The Balanced Fund may enter into
contracts for the purchase or sale of a specific foreign currency at a future
date at a price set at the time of the contract. Generally, such forward
contracts will be for a period of less than three months. The Fund will enter
into such forward contracts for hedging purposes only. These transactions will
include forward purchases or sales of foreign currencies for the purpose of
protecting the dollar value of securities denominated in a foreign currency, or
protecting the dollar equivalent of interest or dividends to be paid on such
securities. Forward contracts are traded in the inter-bank market, and not on
organized commodities or securities exchanges. Accordingly, the Fund is
dependent upon the good faith and creditworthiness of the other party to the
transaction, as evaluated by the Fund's manager.
The Balanced Fund's investment policies permit hedging transactions, such as
through the use of stock index or interest rate futures. Although the Balanced
Fund currently has no plans to enter into such transactions, information about
such transactions is included in the SAI under PART I -- FUND INFORMATION --
CERTAIN INVESTMENTS OF THE BOND AND BALANCED FUNDS.
The Balanced Fund may enter into forward commitments for the purchase or sale of
securities and may purchase and sell securities on a when-issued or delayed
delivery basis. For more information about these investment techniques see PART
I -- FUND INFORMATION -- CERTAIN INVESTMENTS OF THE BOND AND BALANCED FUNDS in
the SAI.
Because the types and proportions of the Balanced Fund's assets are expected to
change frequently in accordance with market conditions, an annual portfolio
turnover rate cannot be predicted.
ON PAGE 20, THE LAST FULL SENTENCE IN THE FIFTH PARAGRAPH UNDER THE HEADING
"COMMON STOCK FUND" IS DELETED AND REPLACED BY THE FOLLOWING:
As of December 31, 1995, 28.5% of the Common Stock Fund's assets was held in the
securities of four issuers. See PORTFOLIO OF INVESTMENTS in the SAI.
ON PAGE 21, THE THIRD PARAGRAPH UNDER THE HEADING "INVESTMENT MANAGEMENT" IS
DELETED AND REPLACED BY THE FOLLOWING:
Alliance is a registered investment adviser under the Investment Advisors Act of
1940 and acts as an investment adviser to various separate accounts and general
accounts of Equitable Life and other affiliated insurance companies. Alliance's
main office is located at 1345 Avenue of the Americas, New York, New York 10105.
On December 31, 1995, Alliance was managing over $146.5 billion in assets.
ON PAGE 21, THE SECOND PARAGRAPH UNDER THE HEADING "RATES OF RETURN" IS DELETED
AND REPLACED BY THE FOLLOWING:
Performance data for the Bond, Balanced, Common Stock and Aggressive Stock Funds
reflect (i) the investment results of the Fund since inception and (ii) the
investment management and financial accounting fee. We have recalculated
performance prior to June 1, 1994 to reflect the deduction of this fee even
though it did not apply as an asset-based charge. Performance data for the
Investment Funds of Separate Account No. 51 reflect (i) the investment results
of the corresponding Portfolios of the Trust from the date of inception of those
Portfolios, (ii) the actual investment advisory fee and direct operating
expenses of the relevant Portfolio and (iii) the Separate Account Administrative
Charge (although this latter charge was not an asset-based charge before the
Portfolios were available under RIA). None of the data reflects the Ongoing
Operations Fee, which may be paid by a reduction in the number of Units credited
under an employer plan and applied (for employer plans enrolled in RIA on or
after February 9, 1986, on a decremental scale based on employer plan balances),
or loan fee, annuity benefit charge or charge for premium taxes, which may not
be applicable to any particular Participant.
11
<PAGE>
Because rates of return do not reflect the Ongoing Operations Fee or other
charges and fees applicable to employer plans under RIA, the rate of return for
an employer plan would be lower if such charges and fees were reflected.
ON PAGE 22, "INCEPTION DATES AND COMPARATIVE BENCHMARKS" IS DELETED AND REPLACED
BY THE FOLLOWING:
INCEPTION DATES AND COMPARATIVE BENCHMARKS
MONEY MARKET: May 11, 1982; Salomon Brothers Three-Month T-Bill Index (3-Month
T-Bill).
INTERMEDIATE GOVERNMENT SECURITIES: April 1, 1991; Lehman Intermediate
Government Bond Index (Lehman Intermediate Government).
BOND: May 1, 1981; Lehman Intermediate Government/Corporate Bond Index (Lehman
Intermediate GC).
QUALITY BOND: October 1, 1993; Lehman Aggregate Bond Index (Lehman Aggregate).
HIGH YIELD: January 2, 1987; Merrill Lynch High Yield Master Index (Master High
Yield).
GROWTH & INCOME: October 1, 1993; 75% Standard & Poor's 500 Index (S&P 500), and
25% Value Line Convertible Index (75% S&P 500/25% Value Line Conv.).
EQUITY INDEX: March 1, 1994; S&P 500 which includes reinvested dividends.
COMMON STOCK: July 1, 1969; Standard & Poor's 500 Index (S&P 500e), which
includes reinvested dividends.
GLOBAL: August 31, 1987; Morgan Stanley Capital International World Index (MSCI
World).
INTERNATIONAL: April 3, 1995; Morgan Stanley Capital International Europe,
Australia, Far East Index (MSCI EAFE).
AGGRESSIVE STOCK: May 1, 1969; 50% Russell 2000 Small Stock Index and 50% S&P
Mid-Cap Total Return (50% Russell 2000/50% S&P Mid-Cap).
CONSERVATIVE INVESTORS: October 2, 1989; 70% Lehman Treasury Bond Composite
Index and 30% S&P 500 (70% Lehman Treas./30% S&P 500).
BALANCED: June 25, 1979; 50% S&P 500 and 50% Lehman Government/Corporate Bond
Index (50% S&P 500/50% Lehman Corp.).
GROWTH INVESTORS: October 2, 1989; 30% Lehman Government/Corporate Bond Index
and 70% S&P 500 (30% Lehman Treas./70% S&P 500).
The Lipper Mutual Funds Survey (LIPPER) records the performance of over 7,000
mutual funds. According to Lipper Analytical Services, Inc., the data are
presented net of investment management fees, direct operating expenses, and, for
funds with Rule 12b-1 plans, asset-based sales charges. Lipper data provide a
more accurate picture of RIA performance relative to that of other mutual funds
underlying retirement plan products than the market indices.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends. Cumulative rates of return
reflect performance over a stated period of time. Annualized rates of return
represent the annual rate of growth that would have produced the same cumulative
return, if performance had been constant over the entire period.
The performance of the Funds does not represent the actual experience of a
particular participating employer plan; the amount and timing of contributions
affects individual performance, as do Fund expenses. For a discussion of charges
and fees and how they are deducted from a RIA plan, see PART II -- CHARGES AND
FEES.
PAST PERFORMANCE IS NOT A GUARANTEE OR INDICATION OF FUTURE RESULTS. NO
PROVISIONS HAVE BEEN MADE FOR THE EFFECT OF TAXES ON INCOME AND GAINS OR UPON
DISTRIBUTION.
12
<PAGE>
ON PAGE 23, THE HEADING OF THE CHART IS CHANGED TO "ANNUALIZED RATES OF RETURN
FOR PERIODS ENDING DECEMBER 31, 1995" AND THE CHART IS DELETED AND REPLACED BY
THE FOLLOWING:
<TABLE>
<CAPTION>
SINCE INCEPTION
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION DATE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET 5.69% 4.19% 4.43% 5.97% -- 7.37% July 31, 1981
Lipper Money Market 5.37 3.89 4.12 5.64 -- 7.15
3-Month T-Bill 5.74 4.34 4.47 5.77 -- 7.09
INTERMEDIATE GOVERNMENT 13.27 6.16 -- -- -- 7.58 April 1, 1991
SECURITIES
Lipper U.S. Government 15.75 6.56 -- -- -- 8.03
Lehman Intermediate Government 14.41 6.74 -- -- -- 8.17
BOND 15.48 7.30 8.44 8.44 -- 10.93 April 28, 1981
Lipper Intermediate
Government Funds Average 17.34 6.96 8.35 8.16 -- 10.50
Lehman Intermediate GC 15.33 7.16 8.61 8.82 -- 11.23
QUALITY BOND 16.97 -- -- -- -- 4.49 Oct 1, 1993
Lipper Corporate Bond A-Rated 18.45 -- -- -- -- 5.38
Lehman Aggregate 18.47 -- -- -- -- 6.46
HIGH YIELD 19.86 12.75 14.89 -- -- 10.15 January 2, 1987
Lipper High Yield 16.44 10.18 16.58 -- -- 8.98
Master High Yield 19.91 11.57 17.17 -- -- 11.28
GROWTH & INCOME 24.01 -- -- -- -- 9.61 October 1, 1993
Lipper Growth & Income 30.82 -- -- -- -- 13.47
75% S&P 500/25% Value Line Conv. 34.93 -- -- -- -- 15.45
EQUITY INDEX 36.41 -- -- -- -- 19.12 March 1, 1994
Lipper S&P Index Funds 36.84 -- -- -- -- 18.92
S&P 500 37.54 -- -- -- -- 19.89
COMMON STOCK 31.85 15.70 18.97 15.70 15.86 13.01 July 1, 1969
Lipper Growth Funds Avg. 30.79 12.45 16.01 12.95 14.79 10.29
S&P 500e 37.54 15.30 16.57 14.87 14.59 11.46
GLOBAL 18.76 18.15 16.44 -- -- 11.32 August 27, 1987
Lipper Global 16.05 13.96 12.28 -- -- 7.87
MSCI World 20.72 15.83 11.74 -- -- 6.75
INTERNATIONAL -- -- -- -- -- 10.66* April 3, 1995
Lipper International -- -- -- -- -- 10.32*
MSCI EAFE -- -- -- -- -- 9.17*
AGGRESSIVE STOCK 31.33 13.15 21.34 15.58 17.03 10.70 May 1, 1969
Lipper Small Company
Growth Funds Avg. 31.55 14.77 20.78 13.62 16.22 9.85
50% Russell 2000/50% S&P Mid-Cap 29.69 13.67 20.16 13.66 N/A N/A
THE BLENDED FUNDS:
CONSERVATIVE INVESTORS 20.34 8.49 10.10 -- -- 9.61 October 2, 1989
Lipper Income 25.08 10.80 12.85 -- -- 10.28
70% Lehman Treas./30% S&P 500 24.11 10.41 11.73 -- -- 10.55
BALANCED 20.43 7.46 11.24 10.45 -- 14.08 June 25, 1979
Lipper Balanced Portfolio 25.16 10.73 13.04 11.40 -- 13.37
50% S&P 500/50% Lehman Govt./Corp. 28.39 12.01 13.39 12.53 -- 13.67
GROWTH INVESTORS 26.31 12.10 17.07 -- -- 16.01 October 2, 1989
Lipper Flexible Portfolio 25.08 10.80 12.85 -- -- 10.28
30% Lehman Corp./70% S&P 500 32.05 13.35 14.70 -- -- 11.97
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
*Unannualized
</FN>
</TABLE>
13
<PAGE>
ON PAGE 24, THE HEADING OF THE CHART IS CHANGED TO "CUMULATIVE RATES OF RETURN
FOR PERIODS ENDING DECEMBER 31, 1995" AND THE CHART IS DELETED AND REPLACED BY
THE FOLLOWING:
<TABLE>
<CAPTION>
SINCE INCEPTION
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION DATE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET 5.69% 13.12% 24.22% 78.66% --% 179.66% July 13, 1981
Lipper Money Market 5.37 12.13 22.34 73.21 -- 172.66
3-Month T-Bill 5.74 13.58 24.45 75.23 -- 170.07
INTERMEDIATE GOVERNMENT 13.27 19.66 -- -- -- 41.48 April 1, 1991
SECURITIES
Lipper U.S. Government 15.75 21.09 -- -- -- 44.66
Lehman Intermediate Government 14.41 21.60 -- -- -- 45.17
BOND 15.48 23.55 49.93 124.86 -- 358.05 April 28, 1981
Lipper Intermediate
Government Funds Average 17.34 22.46 49.41 119.56 -- 337.56
Lehman Aggregate GC 15.33 23.05 51.15 132.76 -- 376.88
QUALITY BOND 16.97 -- -- -- -- 10.37 October 1, 1993
Lipper Corporate Bond A-Rated 18.45 -- -- -- -- 12.58
Lehman Aggregate 18.47 -- -- -- -- 15.09
HIGH YIELD 19.86 43.34 100.17 -- -- 138.60 Januuary 2, 1987
Lipper High Yield 16.44 33.90 116.45 -- -- 118.26
Master High Yield 19.91 38.89 120.85 -- -- 161.50
GROWTH & INCOME 24.01 -- -- -- -- 22.91 October 1, 1993
Lipper Growth & Income 30.82 -- -- -- -- 33.24
75% S&P 500/25% Value Line Conv. 34.93 -- -- -- -- 38.14
EQUITY INDEX 36.41 -- -- -- -- 37.83 March 1, 1994
Lipper S&P Index Funds 36.84 -- -- -- -- 37.40
S&P 500 37.54 -- -- -- -- 39.30
COMMON STOCK 31.85 54.89 138.37 329.91 1800.81 2455.37 July 1,1969
Lipper Growth Funds Avg. 30.79 42.98 113.39 251.64 1534.57 1506.49
S&P 500e 37.54 53.30 115.25 300.11 1425.04 1677.13
GLOBAL 18.76 64.95 114.04 -- -- 144.65 August 27, 1987
Lipper Global 16.05 48.34 79.41 -- -- 90.34
MSCI World 20.72 55.39 74.20 -- -- 72.38
INTERNATIONAL -- -- -- -- -- 10.66* April 3, 1995
Lipper International -- -- -- -- -- 10.32*
MSCI EAFE -- -- -- -- -- 9.17*
AGGRESSIVE STOCK 31.33 44.87 163.01 325.49 2220.84 1405.00 May 1, 1969
Lipper Small Company
Growth Funds Avg. 31.55 52.74 161.35 269.45 2032.27 1271.48
50% Russell 2000/50%
S&P Mid-Cap 29.69 46.89 150.49 259.88 N/A N/A
THE BLENDED FUNDS:
CONSERVATIVE INVESTORS 20.34 27.70 61.75 -- -- 77.32 October 2, 1989
Lipper Income 25.08 36.25 84.60 -- -- 85.64
70% Lehman Treas./30% S&P 500 24.11 34.58 74.09 -- -- 87.24
BALANCED 20.43 24.10 70.32 170.17 -- 780.37 June 25, 1979
Lipper Balanced Portfolio 25.16 35.96 86.17 196.13 -- 703.07
50% S&P 500/50% Lehman Govt./ Corp. 28.39 40.53 87.43 225.59 -- 731.07
GROWTH INVESTORS 26.31 40.86 119.90 -- -- 152.80 October 2, 1989
Lipper Flexible Portfolio 25.08 36.25 84.60 -- -- 85.64
30% Lehman Corp./70% S&P 500 32.05 45.64 98.56 -- -- 102.72
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
*Unannualized
</FN>
</TABLE>
14
<PAGE>
ON PAGE 24, THE CHART UNDER THE HEADING "YEAR-BY-YEAR RATES OF RETURN" IS
DELETED AND IS REPLACED BY THE FOLLOWING:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
INTERMEDIATE
MONEY GOVERNMENT QUALITY HIGH GROWTH & EQUITY COMMON
MARKET SECURITIES BOND BOND YIELD INCOME INDEX STOCK
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1985 8.11% --% 19.53% --% --% --% --% 32.06%
1986 6.55 -- 13.79 -- -- -- -- 13.81
1987 6.58 -- 1.58 -- 4.62* -- -- 5.67
1988 7.27 -- 6.21 -- 9.68 -- -- 16.94
1989 9.13 -- 13.29 -- 5.08 -- -- 44.68
1990 8.19 -- 7.82 -- -1.15 -- -- - 11.35
1991 6.13 12.03* 14.45 -- 24.40 -- -- 52.03
1992 3.48 5.54 6.03 -- 12.26 -- -- 1.22
1993 2.94 10.52 9.21 - 0.52* 23.08 - 0.27* -- 19.81
1994 3.96 - 4.42 - 2.03 - 5.15 - 2.83 - 0.62 1.04* - 1.94
1995 5.69 13.27 15.48 16.97 19.86 24.01 36.41 31.85
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
AGGRESSIVE CONSERVATIVE GROWTH
GLOBAL INTERNATIONAL STOCK INVESTORS BALANCED INVESTORS
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1985 --% -- 18.07% --% 25.27% --%
1986 -- -- 1.61 -- 16.19 --
1987 - 13.28* -- - 2.36 -- - 5.34 --
1988 10.83 -- 1.94 -- 14.78 --
1989 26.67 -- 46.97 3.08* 26.48 3.98*
1990 - 6.11 -- 8.85 6.35 - 0.65 10.56
1991 30.49 -- 87.18 19.79 41.23 48.84
1992 - 0.56 -- - 3.01 5.74 - 2.83 4.88
1993 32.06 -- 15.19 10.71 12.54 15.20
1994 5.18 -- - 4.24 - 4.15 - 8.43 - 3.19
1995 18.76 10.66* 31.33 20.34 20.43 26.31
- --------------------------------------------------------------------------------------------------------
<FN>
*Unannualized
</FN>
</TABLE>
ON PAGE 25, THE LAST PARAGRAPH OF THE SECTION ENTITLED "CURRENT AND MINIMUM
INTEREST RATES" IS DELETED AND REPLACED BY THE FOLLOWING:
THE CURRENT RATE OF INTEREST FOR 1996, AND THE 1997 AND 1998 MINIMUM RATES OF
INTEREST GUARANTEED FOR EACH CLASS, ARE STATED IN THE PROPOSAL DOCUMENTS
SUBMITTED TO SPONSORS OF PROSPECTIVE RIA EMPLOYER PLANS. The establishment of
new classes will not decrease the rates applicable to employer plans already
assigned to a previous class. The effective current rate for 1997 and the
minimum rates effective for calendar years 1998 and 1999 will be declared in
December 1996.
ON PAGE 31, THE FIRST PARAGRAPH UNDER THE HEADING "MODIFICATION OF CONTRACT
DISCONTINUANCE/TERMINATION" IS DELETED AND REPLACED BY THE FOLLOWING:
The Contracts are group annuity contracts which may be modified between us and
Chase Manhattan Bank, N.A., under the Master Retirement Trust agreement and, by
such agreement, have been amended from time to time. However, no change to the
Contracts can reduce annuities in the course of payment.
ON PAGE 33, THE SECTION ENTITLED "EXPERTS" IS DELETED AND REPLACED BY THE
FOLLOWING:
The financial statements as of December 31, 1995 and for each of the two years
in the period then ended included in the SAI for Separate Account Nos. 13, 10,
4, 3 and 51, and the condensed financial information for each of the two years
in the period ended December 31, 1995 included in the Supplement and the
financial statements as of December 31, 1995, 1994 and 1993, and for each of the
two years in the period ended December 31, 1995 included in the SAI for
Equitable Life, have been so included in reliance on the report of Price
Waterhouse LLP, independent accountants, given on the authority of said firm as
experts in auditing and accounting.
ON PAGES 34 THROUGH 35, THE FOURTH, SIXTH AND SEVENTH PARAGRAPHS UNDER THE
HEADING "TAX ASPECTS OF CONTRIBUTIONS TO A PLAN" ARE DELETED AND REPLACED BY THE
FOLLOWING:
The deductible limits for corporate plans and Keogh plans which are defined
benefit plans are based on the minimum funding standard determined by the plan
actuary each year. No participant can receive a benefit which exceeds the lesser
of (i) $90,000 ($120,000 as indexed for inflation for the 1996 plan year) or
(ii) 100% of the participant's average compensation for the consecutive
three-year period which results in the highest such average. The $90,000 limit
is actuarially reduced for participants retiring prior to the social security
retirement age (currently age 65) and actuarially increased for participants
retiring after the social security retirement age. Special grandfathering rules
apply to certain participants whose benefits exceed the $90,000 limit.
15
<PAGE>
A participant cannot elect to defer annually more than $7,000 ($9,500 as indexed
for inflation in 1996) under all salary reduction arrangements in which the
individual participates. If an individual's aggregate elective deferrals under
all such salary reduction arrangements exceeds the permitted elective deferral
limit in any taxable year, the individual will be taxed twice on the excess
deferral -- once in the year of the deferral and again when a distribution
occurs. If the participant notifies the affected plan or plans by March 1 of the
following year and by April 15 of such year takes a distribution of the excess
deferral and related income, the excess deferral will only be taxed once in the
year of the distribution. The excess deferral distribution will not be treated
as an impermissible withdrawal or an "eligible rollover distribution," and will
not be subject to the 10% penalty tax on premature distributions, discussed
below.
A qualified plan must not discriminate in favor of highly compensated employees.
In addition to the general non-discrimination rule that is applicable to all
qualified pension and profit sharing plans, two special nondiscrimination rules
limit contributions and benefits for highly compensated employees in the case of
(1) a 401(k) plan and (2) any defined contribution plan, whether or not a 401(k)
plan, which provides for employer matching contributions to employee after-tax
contributions or elective deferrals. In both cases the special nondiscrimination
tests compare the deferrals or the aggregate contributions, as the case may be,
made by the eligible highly compensated employees with those made by the
non-highly compensated employees. Coordination rules between the two provisions
are prescribed. Highly compensated participants include five percent owners,
employees earning more than $100,000 per year, employees earning more than
$66,000 per year and who are in the top 20% of all employees based on
compensation, and officers (or deemed officers) earning more than $60,000 per
year (in each case after indexing for inflation in 1996).
ON PAGE 36, THE THIRD PARAGRAPH UNDER THE HEADING "ELIGIBLE ROLLOVER
DISTRIBUTIONS" IS DELETED AND REPLACED BY THE FOLLOWING:
In addition, none of the following is treated as an eligible rollover
distribution:
o any distribution, to the extent that it is a minimum distribution required
under Section 401(a)(9) of the Code (see "Distribution Requirements and
Limits" below);
o certain corrective distributions in plans subject to Sections 401(k), 401(m)
or 402(g) of the Code;
o loans that are treated as deemed distributions under Section 72(p) of the
Code;
o P.S. 58 costs (incurred if the plan provides life insurance protection for
participants);
o dividends paid on employer securities as described in Section 401(k) of the
Code; and
o a distribution to a non-spousal beneficiary.
ON PAGE 37, THE LAST PARAGRAPH UNDER THE HEADING "DISTRIBUTION REQUIREMENTS AND
LIMITS" IS DELETED AND REPLACED BY THE FOLLOWING:
A 15% excise tax is imposed on a participant's aggregate excess distributions
from all tax-favored retirement plans. The excise tax is in addition to the
ordinary income tax due, but is reduced by the amount (if any) of the early
distribution penalty tax imposed by the Code. In addition, in certain cases the
estate tax imposed on a deceased participant's estate will be increased if the
accumulated value of the participant's interests in tax-favored retirement plans
is excessive. The aggregate distributions or accumulations in any year will be
subject to excise tax if they exceed applicable prescribed limits ($155,000 for
1996). Whether a lump sum distribution is excessive for excise tax purposes is
separately calculated. The applicable limits are five times the above limits.
16
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
- ------------------------------------------------------------------------------------------
<S> <C>
PART I-- FUND INFORMATION.................................................... 2
General................................................................... 2
Restrictions and Requirements of the Bond, Balanced, Common Stock
and Aggressive Stock Funds.............................................. 2
Certain Investments of the Bond Fund...................................... 2
How We Determine the Unit Value........................................... 3
Summary of Unit Value..................................................... 4
Money Market Yield Information............................................ 8
Brokerage Fees and Charges for Securities Transactions.................... 9
Ongoing Operations Fee.................................................... 10
PART II-- MANAGEMENT FOR THE BOND, BALANCED, COMMON STOCK AND AGGRESSIVE
STOCK FUNDS AND EQUITABLE LIFE............................................ 11
Funds .................................................................... 11
Distribution.............................................................. 11
Equitable Life............................................................ 11
Directors............................................................... 11
Officer-Directors....................................................... 12
Other Officers.......................................................... 12
PART III-- FINANCIAL STATEMENTS.............................................. 13
Index..................................................................... 13
Financial Statements...................................................... 14
- ------------------------------------------------------------------------------------------
</TABLE>
If you wish to obtain a free copy of the Statement of Additional Information,
send or fax this request form to:
Equitable Life--RIA Service Office
Attn. SAI Request
200 Plaza Drive 1st Floor
Secaucus, NJ 07094-3689
Tel: (800) 967-4560
(201) 392-5500
(Business Days, 9 A.M. to 5 P.M. Eastern time)
Fax: (201) 392-2285, 2286 or 2287
- --------------------------------------------------------------------------------
Please send me a copy of the Statement of Additional Information for RIA dated
May 1, 1996.
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip Code
- --------------------------------------------------------------------------------
Client Number
- -----
Check here if you would like another copy of the Prospectus
- -----
<PAGE>
================================================================================
[RIA LOGO]
SEPARATE ACCOUNT UNITS OF INTEREST
UNDER GROUP ANNUITY CONTRACTS
<TABLE>
<S> <C> <C>
o Money Market Fund o Growth & Income Fund Blended Funds:
o Intermediate Government o Equity Index Fund o Conservative Investors Fund
Securities Fund o Common Stock Fund o Balanced Fund
o Bond Fund o Global Fund o Growth Investors Fund
o Quality Bond Fund o International Fund
o High Yield Fund o Aggressive Stock Fund
</TABLE>
OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
---------------------------------------------------------
RIA SERVICE OFFICE:
Equitable Life
RIA Service Office
200 Plaza Drive, 1st Floor
Secaucus, NJ 07094-3689
Tel.: (800) 967-4560
(201)392-5500
(9 A.M. to 5 P.M. Eastern time)
Fax: (201) 392-2285, 2286 or 2287
(To obtain pre-recorded Fund unit values, use our toll-free number listed above)
ADDRESS FOR CONTRIBUTIONS ONLY:
Equitable Life
RIA/EPP
P.O. Box 13503
Newark, NJ 07188
EXPRESS MAIL ADDRESS FOR CONTRIBUTIONS ONLY:
First Chicago National Processing Center (FCNPC)
300 Harmon Meadow Boulevard, 3rd Floor
Att: Box 13503
Secaucus, NJ 07094
================================================================================
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT UNITS OF INTEREST UNDER
GROUP ANNUITY CONTRACTS
<TABLE>
<S> <C> <C>
o Money Market Fund o Growth & Income Fund Blended Funds:
o Intermediate Government o Equity Index Fund o Conservative Investors Fund
Securities Fund o Commond Stock Fund o Balanced Fund
o Bond Fund o Global Fund o Growth Investors Fund
o Quality Bond Fund o International Fund
o High Yield Fund o Aggressive Stock Fund
</TABLE>
Of
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
- --------------------------------------------------------------------------------
[RIA LOGO]
- --------------------------------------------------------------------------------
Retirement Investment Account (RIA) is an investment vehicle for the assets of
employee retirement plans (EMPLOYER PLANS) that meet the requirements of Section
401(a) of the Internal Revenue Code of 1986, as amended (CODE), and whose funds
are maintained by trusts described in Section 501(a) of the Code. In addition,
some of these employer plans meet the requirements of the Employee Retirement
Income Security Act of 1974, as amended (ERISA). RIA is offered under a group
annuity contract issued by THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED
STATES.
Under RIA, employers may choose from fifteen investment options (INVESTMENT
OPTIONS) available under the Contracts. These Investment Options include (i) the
GUARANTEED INTEREST ACCOUNT, which is part of Equitable Life's general account
and pays interest at a periodically redetermined guaranteed fixed rate; (ii) the
investment funds of our Separate Account No. 51 -- Money Market Fund,
Intermediate Government Securities Fund, Quality Bond Fund, High Yield Fund,
Growth & Income Fund, Equity Index Fund, Global Fund, International Fund,
Conservative Investors Fund and Growth Investors Fund (THE INVESTMENT FUNDS OF
SEPARATE ACCOUNT NO. 51), and (iii) the Bond Fund (our Separate Account No. 13
- -- Pooled), the Balanced Fund (our Separate Account No. 10 -- Pooled), the
Common Stock Fund (our Separate Account No. 4 -- Pooled), the Aggressive Stock
Fund (our Separate Account No. 3 -- Pooled) (collectively with the investment
funds of Separate Account No. 51, the FUNDS.)
We invest each Investment Fund of Separate Account No. 51, in shares of a
corresponding Portfolio (PORTFOLIO) of the Hudson River Trust (TRUST), a mutual
fund whose shares are purchased by the separate accounts of insurance companies.
The prospectus for the Trust, which is attached to this prospectus, describes
the investment objectives, policies and risks of the Portfolios.
Employer plan assets invested in a Fund will fluctuate in value with the
investment performance of that Fund. The Bond Fund is available only to employer
plans that signed an agreement to invest monies in the Bond Fund prior to June
1, 1994. Subject to regulatory approvals, the International Fund will be
available on or about September 1, 1995.
This prospectus provides important information you should be aware of before
investing. Additional information is included in the Statement of Additional
Information (SAI) dated May 1, 1995 which has been filed with the Securities and
Exchange Commission. Parts of the SAI have been incorporated by reference into
this prospectus. A table of contents for the SAI appears at page 41 of this
prospectus. To obtain a copy of the SAI free of charge, complete the SAI request
form on page 41 and mail it to us, or call or write:
The Equitable Life Assurance Society of the United States -- RIA Service Office
Attn. SAI Request
200 Plaza Drive, 3rd floor
Secaucus, NJ 07094-3689
or call
(800) 967-4560
(201) 392-5500
(Business Days, 9 A.M. to 5 P.M. Eastern time)
or fax
(201) 392-2285, 2286 or 2287
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.
KEEP THIS PROSPECTUS FOR FUTURE REFERENCE.
MAY 1, 1995
- --------------------------------------------------------------------------------
Copyright 1995 888-1094 (5/95)
The Equitable Life Assurance Society of the United States.
All rights reserved.
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
PART I--RIA SUMMARY PAGE 3
Equitable Life 3
RIA Terms 3
Business Day and Transaction Date 3
Participation and Funding Requirements 4
Miscellaneous 4
Investment Options 4
Charges and Fees 4
Cash Available to a Participant Under RIA Before
Retirement 5
Benefit Payments 5
Fee Tables 5
Condensed Financial Information 7
Investment Policies and Objectives 13
Contributions, Transfers and Withdrawals 13
Loans 14
Communications with Us 14
PART II--CHARGES AND FEES PAGE 15
Charges Which Are Reflected in Reductions in the
Unit Value 15
Charges Which Reduce the Number of Units in RIA 15
Ongoing Operations Fee 16
Participant Recordkeeping Services Charge 16
Loan Fee 16
PART III--EQUITABLE LIFE AND ITS FUNDS PAGE 17
Equitable Life 17
About Our Funds 17
The Trust 17
Purchase and Redemption of Units 17
How We Determine the Unit Value 18
Investment Objectives and Policies 18
Bond Fund 18
Balanced Fund 19
Common Stock Fund 19
Aggressive Stock Fund 20
Investment Management 21
Rates of Return 21
Inception Dates and Comparative
Benchmarks 22
Annualized Rates of Return for Periods Ending
December 31, 1994 23
Cumulative Rates of Return for Periods Ending
December 31, 1994 24
PART IV--THE GUARANTEED INTEREST ACCOUNT PAGE 25
General 25
The Guarantees 25
Current and Minimum Interest Rates 25
Classes of Employer Plans 25
Charges and Fees 25
Deferred Payout Provision 25
PART V--PROVISIONS OF RIA AND RETIREMENT BENEFITS PAGE 28
Contributions; Frequency and Amount 28
Rollover or Transfer from a Plan 28
Selecting Investment Options 28
Allocation Choices 28
Transfer Provisions 28
Special Rules Applicable to Plans That
May Invest in the Bond Fund 29
Loan Provision 29
Benefit Payments General 30
Cash Distributions 30
Annuity Benefits 30
Amount of Fixed Annuity Payments 30
Payment of Annuity 31
Assignment and Alienation 31
Creditors' Claims 31
When We Pay Proceeds 31
Periodic Reports 31
If a Plan Fails to Qualify 31
Modification or Contract Discontinuance/
Termination 31
PART VI--MISCELLANEOUS MATTERS PAGE 32
How We are Regulated 32
Commissions and Service Fees 32
Copies of the Master Retirement Trust Agreement 32
Fiduciaries 32
Acceptance 32
Voting Rights 32
Our Rights 33
Legal Proceedings 33
Experts 33
Where To Get Additional Information 33
Changes in Funding Vehicle 33
PART VII--TAX AND ERISA CONSIDERATIONS PAGE 34
Tax Aspects of Contributions to a Plan 34
Tax Aspects of Distributions from a Plan 35
Certain Rules Applicable to Plan Loans 37
Impact of Taxes to Equitable Life 38
Certain Rules Applicable to Plans Designed to
Comply With Section 404(c) of ERISA 38
PART VIII--PARTICIPANT RECORDKEEPING SERVICES PAGE 39
(OPTIONAL)
SAI TABLE OF CONTENTS PAGE 41
Index
Financial Statements
SAI REQUEST FORM PAGE 41
2
<PAGE>
- --------------------------------------------------------------------------------
PART I -- RIA SUMMARY
- --------------------------------------------------------------------------------
EQUITABLE LIFE
We are The Equitable Life Assurance Society of the United States. "We," "us" or
"Equitable Life" refers to us. We are a New York stock life insurance company
that has been in business since 1859.
RIA TERMS
RIA is an investment program designed for employer plans that qualify for
tax-favored treatment under Section 401(a) of the Code. Eligible employer plans
include defined benefit plans, defined contribution plans or profit-sharing
plans, including 401(k) plans. RIA is composed of two group annuity contracts
(CONTRACTS), a MASTER RETIREMENT TRUST agreement, a participation or
installation agreement, an optional participant recordkeeping services (PRS)
agreement and fifteen investment options. The trustee of the Master Retirement
Trust has entered into the two Contracts with us to implement RIA. Currently the
United States Trust Company of New York acts as trustee under the Master
Retirement Trust. The sole responsibility of the United States Trust Company of
New York is to serve as a party to the Contracts. It has no responsibility for
the administration of RIA.
The INVESTMENT FUNDS OF SEPARATE ACCOUNT NO. 51 are the Money Market Fund,
Intermediate Government Securities Fund, Quality Bond Fund, High Yield Fund,
Growth & Income Fund, Equity Index Fund, Global Fund, International Fund,
Conservative Investors Fund and Growth Investors Fund. Each invests in
corresponding Portfolios of the Trust. The other funds are held in pooled
separate accounts as follows:
The BOND FUND is our Separate Account No. 13--Pooled.
The BALANCED FUND is our Separate Account No. 10--Pooled.
The COMMON STOCK FUND is our Separate Account No. 4--Pooled.
The AGGRESSIVE STOCK FUND is our Separate Account No. 3--Pooled.
A PARTICIPANT-DIRECTED EMPLOYER PLAN is an employer plan that by its terms
permits investment directions by participants for contribution allocations or
transfers of account accumulations among investment options. The provisions of
one of the Contracts govern this plan.
A TRUSTEE-DIRECTED EMPLOYER PLAN permits these same directions to be made only
by the employer, a trustee or any named fiduciary or an authorized delegate of
the plan. The provisions of the other Contract govern this plan. At our sole
discretion, a trustee-directed plan may change its participation basis to a
participant-directed plan.
An EMPLOYER is an employer, a plan trustee or other named fiduciary, or an
authorized delegate, of the plan. The employer is specified in the RIA adoption
documents.
The PLAN TRUSTEE is generally responsible for instructing us as to the
investment of plan contributions (including allocations and transfers) and
withdrawals, and receives amounts withdrawn from RIA.
A BUSINESS DAY is any day on which Equitable Life is open and the New York Stock
Exchange is open for trading. We are closed on national business holidays,
Martin Luther King, Jr. Day and the Friday after Thanksgiving. We may also
choose to close on the day immediately preceding or following a national
business holiday or due to emergency conditions. Our Business Day ends at 4:00
p.m. Eastern time.
A TRANSACTION DATE is the Business Day we receive a contribution at the RIA
contribution processing office with properly completed and signed allocation
instructions, or a properly completed and signed written or facsimile request
for a financial transaction at the RIA Service Office. (For the addresses, see
the inside back cover of this prospectus.)
An EXCLUSIVE FUNDING EMPLOYER PLAN is one which uses RIA as the exclusive
funding vehicle for the assets of an employer plan. The annual amount of
contributions must be at least $10,000.
Subject to our sole discretion, a PARTIAL FUNDING EMPLOYER PLAN is one which
uses RIA as a partial investment funding vehicle for an employer plan. The
aggregate amount of contributions in the initial participation year must be at
least $50,000 and the annual aggregate amount of contributions thereafter must
be at least $25,000.
An exclusive funding employer plan may not change its participation basis to
that of a partial funding employer plan, or vice versa, unless the underwriting
and other requirements referred to above are satisfied and approved by us.
We reserve
o the right to change these amounts in the future for new sales only; and
o the right to impose higher annual minimums for certain plans.
We will give you advance notice of any such changes.
THE EMPLOYER OR PLAN SPONSOR, AS THE CASE MAY BE, IS RESPONSIBLE FOR DETERMINING
WHETHER RIA IS A SUITABLE FUNDING VEHICLE AND SHOULD CAREFULLY READ THE
PROSPECTUS AND INSTALLATION DOCUMENTS BEFORE SIGNING A PARTICIPATION OR
INSTALLATION AGREEMENT.
NOTE TO PARTICIPANTS: This prospectus describes RIA as it is generally available
to employer plans. However, the terms and conditions of the employer's plan
govern which aspects of RIA are available to participants. Therefore, the
employer's plan may be different from the features of RIA described in this
prospectus.
NOTE TO EMPLOYERS: Equitable Life's duties and responsibilities are limited to
those described in this prospectus. Except as explicitly set forth in the PRS
program, we do not provide administrative services in connection with an
employer plan. SEE PART VIII--PARTICIPANT RECORDKEEPING SERVICES (OPTIONAL). In
addition, no Equitable Life Agent or firm operated by an Equitable Life Agent
(AGENT) is authorized to solicit or agree to perform plan administrative
services in his capacity as an Agent. If an employer or trustee
3
<PAGE>
engages an Agent to provide administrative support services to an
employer plan, the employer or trustee engages that Agent as its representative
rather than Equitable Life's. EQUITABLE LIFE IS NOT LIABLE TO ANY EMPLOYER,
TRUSTEE OR EMPLOYER PLAN FOR ANY DAMAGES ARISING FROM OR IN CONNECTION WITH ANY
PLAN ADMINISTRATION SERVICES PERFORMED OR AGREED TO BE PERFORMED BY AN AGENT.
PARTICIPATION AND FUNDING REQUIREMENTS
You may participate in RIA as either an exclusive funding employer plan or a
partial funding employer plan, subject to our sole discretion and underwriting
standards and on a case-by-case basis.
To enroll in RIA, a partnership, sole proprietor or corporation must adopt the
Master Retirement Trust as part of its employer plan, and the employer must
execute the participation or installation agreement and provide us with certain
plan information. No contributions will be accepted until the Transaction Date
on which we accept the enrollment of the employer plan.
MISCELLANEOUS
This prospectus describes units of interest (UNITS) in the Funds which are
registered under the Securities Act of 1933 (REGISTERED UNITS). Pursuant to an
exemption under the Securities Act of 1933, the Units maintained by corporate or
governmental entities (CORPORATE PLANS) are not Registered Units. In all other
respects, Registered Units are identical to unregistered Units.
INVESTMENT OPTIONS
There are fifteen investment options available for employers to fund their
plans: the Guaranteed Interest Account and the Money Market Fund, Intermediate
Government Securities Fund, Bond Fund, Quality Bond Fund, High Yield Fund,
Growth & Income Fund, Equity Index Fund, Common Stock Fund, Global Fund,
International Fund, Aggressive Stock Fund, Conservative Investors Fund, Balanced
Fund, and Growth Investors Fund. All of the Funds except for the Bond Fund,
Balanced Fund, Common Stock Fund and Aggressive Stock Fund, invest in shares of
a corresponding Portfolio of a mutual fund called The Hudson River Trust
(TRUST). The Trust prospectus (found in the second part of this booklet)
describes the investment objectives and policies of the available Portfolios.
The investment objectives and policies of the Bond Fund, Balanced Fund, Common
Stock Fund and Aggressive Stock Fund are described in this prospectus under PART
III--EQUITABLE LIFE AND ITS FUNDS and in the SAI under PART I--FUND
INFORMATION. If the Employer or Plan Trustee does not select all fifteen
Investment Options in the RIA program, your choices will be limited to the
Investment Options selected. If the Plan is intended to comply with the
requirements of ERISA Section 404(c), the Employer or the Plan Trustee is
responsible for making sure that the Investment Options chosen constitute a
broad range of investment choices as required by the Department of Labor (DOL)
Section 404(c) regulations. See "PLANS DESIGNED TO COMPLY WITH SECTION 404(C) OF
ERISA" in PART VII--TAX AND ERISA CONSIDERATIONS.
CHARGES AND FEES
INVESTMENT MANAGEMENT AND FINANCIAL ACCOUNTING FEE FOR THE BOND, BALANCED,
COMMON STOCK AND AGGRESSIVE STOCK FUNDS. An investment management and financial
accounting fee equal to 0.50% of the assets in the Bond, Balanced, Common Stock
and Aggressive Stock Funds, is reflected in the daily Unit value for each of
these Funds. The Bond, Balanced, Common Stock and Aggressive Stock Funds incur
certain commissions, fees and expenses, including audit, custody and other
expenses, as part of their portfolio transactions and overall operation of these
Funds are reflected in the Unit values.
SEPARATE ACCOUNT ADMINISTRATIVE CHARGE FOR THE INVESTMENT FUNDS OF SEPARATE
ACCOUNT NO. 51. An administrative charge at an annual rate of 0.05% of the
assets is reflected in the daily Unit value for each Investment Fund.
TRUST CHARGES. Investment advisory fees and other expenses of the Trust are
charged daily against the Trust's assets. These charges are reflected in the
Portfolio's daily share price and in the Unit value for the Investment Funds of
Separate Account No. 51.
ONGOING OPERATIONS FEE. The ongoing operations fee, which is paid monthly, is
based on a declining scale which starts at a maximum annual rate of 1.25% of the
combined balances of all of the Investment Options in which the employer plan
assets are allocated.
PARTICIPANT RECORDKEEPING SERVICES. If the employer elects to enroll in RIA's
PRS program, there is an annual charge of $25 per participant under the employer
plan. The charge is applied on a pro-rata basis against the combined balances of
all the Investment Options in which the employer plan assets are invested and is
deducted monthly. See PART VIII--PARTICIPANT RECORDKEEPING SERVICES (OPTIONAL).
LOAN FEE. We charge an employer plan a loan fee in an amount equal to 1% of the
loan principal amount on the Transaction Date a loan is made.
CONTINGENT WITHDRAWAL CHARGE. We impose a contingent withdrawal charge against
withdrawals made from RIA at any time up to and including the ninth anniversary
of the date on which the employer plan began its participation in RIA. The
maximum contingent withdrawal charge is 6% of the employer plan assets
withdrawn. Outstanding loan balances are included in the plan's assets for
purposes of assessing the contingent withdrawal charge. See PART II--CHARGES
AND FEES--CONTINGENT WITHDRAWAL CHARGE.
FIXED ANNUITY ADMINISTRATIVE CHARGE. If a fixed annuity under RIA is elected by
or on behalf of a participant or by a beneficiary, an administrative charge of
$175 will be deducted from the amount of the employer plan proceeds applied to
purchase the annuity.
PREMIUM TAX CHARGE. At the time an amount is applied to an annuity distribution
option, we currently deduct a charge based on any applicable state or local
taxes imposed on the transaction. We reserve the right to deduct any such charge
from each contribution or from withdrawals. The current premium tax rate that
might be imposed ranges from 0% to 2.25%. The rate is 1% in Puerto Rico and 5%
in the Virgin Islands.
DIRECT BILLING. Subject to a written agreement between Equitable Life and an
employer, the employer has the option of being billed directly for the Ongoing
Operations fee and, if applicable, the fee for PRS.
4
<PAGE>
We reserve the right to change certain of the charges and fees discussed above.
However, the investment advisory fees for the Portfolios of the Trust cannot be
changed without a vote of that Portfolio's shareholders.
CASH AVAILABLE TO A PARTICIPANT UNDER
RIA BEFORE RETIREMENT
The amount of any cash payments that may be available to a participant before
retirement will depend on the terms of the employer plan and will be affected by
the charges to the employer plan and investment performance of the Funds.
Certain cash withdrawals by a participant that are permitted under an employer
plan prior to retirement may give rise to tax penalties or other adverse tax
consequences. See PART II -- CHARGES AND FEES, PART V -- PROVISIONS OF RIA AND
RETIREMENT BENEFITS and PART VII -- TAX AND ERISA CONSIDERATIONS.
BENEFIT PAYMENTS
At retirement, in accordance with the employer plan, a participant can receive
fixed annuity payments funded through our general account, a lump sum payment or
a combination of both. RIA does not offer variable annuity payments. The amount
available for retirement benefits will depend upon the amount invested in the
Guaranteed Interest Account and the Funds and the investment performance of the
Funds, and may be affected by charges to the employer plan. See PART V --
PROVISIONS OF RIA AND RETIREMENT BENEFITS.
Disability and death benefits are provided in accordance with the employer plan;
RIA does not have separate disability or death benefit provisions.
We pay benefit distribution payments withdrawn from RIA to the plan trustee of
the employer plan.
FEE TABLES
The purpose of these Tables is to assist you in understanding the various costs
and expenses which may affect employer plan balances participating in the Funds.
See PART II -- CHARGES AND FEES and PART V -- PROVISIONS OF RIA AND RETIREMENT
BENEFITS for a description of fees for optional PRS, loan fees, annuity purchase
charges and state or local tax charges. If an annuity benefit is elected under
RIA, a $175 annuity benefit charge will be imposed and a charge for any
applicable premium taxes will be deducted from the amount applied to provide an
annuity benefit. The Tables reflect expenses of Funds including, for Separate
Account No.51, the corresponding Trust Portfolio, for the period ended December
31, 1994.
As explained in Part IV, the Guaranteed Interest Account is not a Fund.
Therefore, the only expenses shown in the Table which apply to the Guaranteed
Interest Account are the "Contingent Withdrawal Charge" and the "Ongoing
Operations Fee." In addition, there is a loan fee charged against the Guaranteed
Interest Account which is equal to 1% of the principal amount of the loan.
Certain expenses and fees shown in these Tables may not apply to your plan. To
determine whether a particular item in a Table applies (and the actual amount,
if any), consult the portion of the prospectus indicated in the notes.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON
BOND BALANCED STOCK AGGRESSIVE
FUND FUND FUND STOCK FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
PARTICIPATING PLAN
TRANSACTION EXPENSES:
Sales Load on Purchases............................................ [-------------------------None---------------------]
Maximum Contingent Withdrawal Charge (as a percentage of
plan balances)(1)............................................... [---------------------6% Maximum-------------------]
Maximum Annual Ongoing Operations Fee (as a percentage
of plan balances)(2)............................................ [-------------------1.25% Maximum------------------]
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL EXPENSES:
Administrative Charge.............................................. None None None None
Annual Investment Management Fee Including Financial
Accounting Fees (as a percentage of plan balances in
each Fund)...................................................... 0.50% 0.50% 0.50% 0.50%
---- ---- ---- ----
Total Separate Account Annual Expenses (3)...................... 0.50% 0.50% 0.50% 0.50%
==== ==== ==== ====
</TABLE>
<TABLE>
<S> <C>
TRUST ANNUAL EXPENSES: [--------------------not applicable----------------]
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) The contingent withdrawal charge is waived in certain circumstances. The
charge reduces to 2% of the amount withdrawn in the ninth participation
year and cannot be imposed after the ninth anniversary of a plan's
participation in RIA. See PART II -- CHARGES AND FEES -- CONTINGENT
WITHDRAWAL CHARGE.
(2) The annual ongoing operations fee is applied on a decremental scale,
declining to 0.50% on the portion of plan balances over $1,000,000,
except for plans that adopted RIA before February 9, 1986. See PART II --
CHARGES AND FEES.
(3) The Total Separate Account Annual Expenses are reflected in the
Unit value.
</FN>
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT FUNDS OF SEPARATE ACCOUNT NO. 51
-------------------------------------------
CONSER-
INTERMEDIATE GROWTH VATIVE GROWTH
MONEY GOVERNMENT QUALITY HIGH & EQUITY INTER- INVES- INVES-
MARKET SECURITIES BOND YIELD INCOME INDEX GLOBAL NATIONAL TORS TORS
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
PARTICIPATING PLAN TRANSACTION
EXPENSES
Sales Load On Purchases........... [--------------------------------------- None -------------------------------------------]
Maximum Contingent Withdrawal
Charge (as a percentage of
Plan Balances)(1) .............. [----------------------------------------6% Maximum--------------------------------------]
Maximum Annual Ongoing
Operations Fee (as a
percentage of plan balances)(2). [----------------------------------------1.25% Maximum-----------------------------------]
SEPARATE ACCOUNT ANNUAL EXPENSES
Administrative Charge (3)(5)...... [----------------------------------------0.05%-------------------------------------------]
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TRUST ANNUAL EXPENSES
Investment Advisory Fee ......... 0.40% 0.50% 0.55% 0.55% 0.55% 0.35% 0.54% 0.90% 0.55% 0.54%
Other Expenses................... 0.02% 0.06% 0.04% 0.06% 0.23% 0.14% 0.15% 0.41% 0.04% 0.05%
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Annual Expenses for the
Trust(4)(5)......... 0.42% 0.56% 0.59% 0.61% 0.78% 0.49% 0.69% 1.31% 0.59% 0.59%
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
<FN>
Notes:
(1) The contingent withdrawal charge is waived in certain circumstances. The
charge reduces to 2% of the amount withdrawn in the ninth participation
year and cannot be imposed after the ninth anniversary of a plan's
participation in RIA. See PART II -- CHARGES AND FEES -- CONTINGENT
WITHDRAWAL CHARGE.
(2) The annual ongoing operations fee is applied on a decremental scale,
declining to 0.50% on the portion of plan balances over $1,000,000, except
for plans that adopted RIA before February 9, 1986. See PART II -- CHARGES
AND FEES.
(3) Separate Account expenses are shown as a percentage of each Investment
Fund's average value. We reserve the right to increase the Separate Account
Administrative Charge upon 90 days written notice to the employer. See PART
II -- CHARGES AND FEES.
(4) The Hudson River Trust expenses are shown as a percentage of each
portfolio's average value. See PART II -- CHARGES AND FEES -- TRUST CHARGES
TO PORTFOLIOS. Amounts shown for all Portfolios except the Equity Index
Portfolio are for the fiscal year ended December 31, 1994. Amounts shown
for the Equity Index Portfolio, which was established on March 1, 1994, are
annualized. The amounts shown for the International Portfolio which was
established under the Trust on April 3, 1995, are an estimate. The
investment advisory fee for each Portfolio may vary from year to year
depending upon the average daily net assets of the respective Portfolio of
the Trust. The maximum investment advisory fees, however, cannot be changed
without a vote of that Portfolio's shareholders. The other direct operating
expenses will also fluctuate from year to year depending on actual
expenses. The Trust expenses are shown as a percentage of each Portfolio's
average value. See PART II -- CHARGES AND FEES -- TRUST CHARGES TO
PORTFOLIOS.
(5) The Separate Account Annual Expenses and Trust Annual Expenses are
reflected in the Unit value.
</FN>
</TABLE>
6
<PAGE>
EXAMPLES --
The examples below show the expenses that a plan would pay in two hypothetical
situations, assuming a single investment of $1,000 in each Fund listed and a 5%
annual return on assets. For purposes of these examples, the ongoing operations
fee is computed by reference to the actual aggregate annual ongoing operations
fee as a percentage of total assets held under the Contracts invested in
Registered Units. The expenses shown would be lower for corporate plans which
generally have greater total assets. See Note (2) to the Table above. These
examples assume that no loan has been taken and do not reflect PRS or annuity
benefit charges or a charge for premium taxes, none of which may apply to any
particular Participant.
IF THE ENTIRE EMPLOYER PLAN BALANCE IS WITHDRAWN AT THE END OF EACH PERIOD
SHOWN, THE EXPENSE WOULD BE --
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
Money Market............$75.35 $96.62 $118.65 $155.46
Intermediate Government
Securities........... 76.72 100.86 125.94 171.56
Bond.................... 75.64 97.53 120.22 158.93
Quality Bond............ 77.01 101.77 127.49 174.98
High Yield.............. 77.21 102.37 128.53 177.25
Growth & Income......... 78.87 107.49 137.30 196.40
Equity Index............ 76.04 98.74 122.30 163.54
Common Stock............ 75.64 97.53 120.22 158.93
Global.................. 77.99 104.78 132.66 186.30
International........... 84.06 123.35 164.23 254.07
Aggressive Stock........ 75.64 97.53 120.22 158.93
Blended Funds:
Conservative
Investors.......... 77.01 101.77 127.49 174.98
Balanced............. 75.64 97.53 120.22 158.93
Growth Investors..... 77.01 101.77 127.49 174.98
IF THE ENTIRE EMPLOYER PLAN BALANCE IS NOT WITHDRAWN AT THE END OF EACH PERIOD
SHOWN, THE EXPENSE WOULD BE --
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
Money Market.............. $13.14 $40.88 $ 70.71 $155.46
Intermediate Government
Securities............. 14.60 45.36 78.34 171.56
Bond...................... 13.45 41.84 72.35 158.93
Quality Bond.............. 14.91 46.31 79.96 174.98
High Yield................ 15.12 46.95 81.05 177.25
Growth & Income........... 16.89 52.36 90.22 196.40
Equity Index.............. 13.87 43.12 74.53 163.54
Common Stock.............. 13.45 41.84 72.35 158.93
Global.................... 15.95 49.50 85.37 186.30
International............. 22.41 69.10 118.40 254.07
Aggressive Stock.......... 13.45 41.84 72.35 158.93
Blended Funds:
Conservative Investors. 14.91 46.31 79.96 174.98
Balanced............... 13.45 41.84 72.35 158.93
Growth Investors....... 14.91 46.31 79.96 174.98
- ------------------------------------------------------------------------
These examples should not be considered a representation of past or future
expenses for each Fund. Actual expenses may be greater or less than those shown
above. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
CONDENSED FINANCIAL INFORMATION
The following tables give information about income, expenses and capital
changes of the Bond, Balanced, Common Stock and Aggressive Stock Funds, and Unit
values of the Investment Funds of Separate Account No. 51, attributable to a
Registered Unit outstanding for the periods indicated, along with other
supplementary data. Registered Units have been offered under RIA in the Bond,
Balanced, Common Stock and Aggressive Stock Funds as of May 1, 1992, January 23,
1985, April 8, 1985 and July 7, 1986 respectively. Registered and Non-Registered
Units for the Investment Funds of Separate Account No. 51 were first offered
under RIA on June 1, 1994. Non-registered Units have been offered under RIA in
the Bond Fund since 1991, the Balanced and Common Stock Funds since 1983 and the
Aggressive Stock Fund since 1986.
Condensed Financial Information for the Portfolios is contained in the Hudson
River Trust prospectus attached to this prospectus.
High portfolio turnover rates may result in additional transaction and brokerage
expenses which are reflected in the Unit values.
The selected per unit data and ratios for the years ended December 31, 1994 and
1993 have been audited by Price Waterhouse LLP, independent accountants, as
stated in their report on the FINANCIAL STATEMENTS contained in Part III of the
SAI. The selected per unit data and ratios for each of the years prior to 1993
were audited by other independent accountants. The financial statements of the
separate accounts as well as the Consolidated Financial Statements of Equitable
Life are contained in the SAI. These tables should be read in conjunction with
the Financial Statements.
7
<PAGE>
SEPARATE ACCOUNT NO. 13 -- POOLED (BOND FUND) OF THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIOD INDICATED AND OTHER SUPPLEMENTARY DATA
(NOTE F)
- --------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------
MAY 1, 1992-
1994 1993 DECEMBER 31, 1992
------------ ------------ -------------------
Income........................... $ 2.32 $ 2.18 $ 0.59
Expenses (Note B)................ (0.12) -- --
- --------------------------------------------------------------------------------
Net investment income ........... 2.20 2.18 0.59
Net realized and
unrealized gain (loss)
on investments
(Note C)..................... (2.99) 1.65 2.37
- --------------------------------------------------------------------------------
Net increase in Bond Fund
Unit Value.................... (0.79) 3.83 2.96
Bond Fund
Unit Value
(Note A):
Beginning of
Period.................... 43.14 39.31 36.35
- --------------------------------------------------------------------------------
End of Period................ $42.35 $43.14 $39.31
================================================================================
Ratio of expenses to
average net assets
attributable to Units
(Note B)...................... 0.36% N/A N/A
Ratio of net investment income to
average net assets
attributable to Units......... 5.12% 5.17% 6.00%(Note D)
Number of registered
Bond Fund Units
outstanding at end of period . 1,632 545 288
Portfolio turnover rate (Note E). 264% 254% 151%
================================================================================
See Notes following tables.
8
<PAGE>
SEPARATE ACCOUNT NO. 10 -- POOLED (BALANCED FUND) OF THE EQUITABLE LIFE
ASSURANCE SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA
(NOTE F)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------- JANUARY 23, 1995--
1994 1993 1992 1991 1990 1989 1988 1987 1986 DECEMBER 31, 1985
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Income......................... $2.63 $2.67 $2.69 $2.63 $3.08 $3.04 $2.30 $1.63 $1.56 $1.63
Expenses (Note B) ............. (0.23) -- -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment
income....................... 2.40 2.67 2.69 2.63 3.08 3.04 2.30 1.63 1.56 1.63
Net realized and
unrealized gain
(loss) on investments
(Note C)..................... (9.48) 7.28 (4.51) 20.34 (3.17) 8.66 3.44 (3.54) 4.09 3.96
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
Balanced Fund
Unit Value................... (7.08) 9.95 (1.82 ) 22.97 (0.09) 11.70 5.74 (1.91) 5.65 5.59
Balanced Fund Unit
Value (Note A):
Beginning of
Period .................. 85.85 75.90 77.72 54.75 54.84 43.14 37.40 39.31 33.66 28.07
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period.............. $78.77 $85.85 $75.90 $77.72 $54.75 $54.84 $ 43.14 $37.40 $39.31 $33.66
====================================================================================================================================
Ratio of expenses to
average net assets
attributable to
Units (Note B)............... 0.30% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Ratio of net
investment income
to average net
assets attributable
to Units..................... 2.94% 3.31% 3.68% 4.15% 5.78% 6.12% 5.70% 3.79% 3.97% 5.50% (Note D)
Number of registered
Balanced Fund
Units outstanding
at end of period............. 86,914 87,242 81,860 80,964 86,377 86,942 67,815 54,112 31,233 7,706
Portfolio turnover rate (Note E) 107% 102% 90% 114% 199% 175% 172% 238% 230% 161%
====================================================================================================================================
</TABLE>
See Notes to following tables.
9
<PAGE>
SEPARATE ACCOUNT NO.4 - POOLED (COMMON STOCK FUND) OF THE EQUITABLE LIFE
ASSURANCE SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA
(NOTE F)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
- ----------------------------------------------------------------------------------------------------------------- APRIL 8, 1985-
1994 1993 1992 1991 1990 1989 1988 1987 1986 DECEMBER 31, 1985
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Income......................... $3.83 $3.69 $3.13 $2.74 $3.82 $3.42 $2.52 $2.37 $2.58 $1.90
Expenses (Note B) ............. (1.00) -- -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income.......... 2.83 3.69 3.13 2.74 3.82 3.42 2.52 2.37 2.58 1.90
Net realized and
unrealized gain
(loss)
on investments
(Note C)..................... (8.98) 56.16 1.86 96.86 (26.92) 62.70 19.19 4.86 12.09 15.95
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
Common Stock
Fund Unit Value.............. (6.15) 59.85 4.99 99.60 (23.10) 66.12 21.71 7.23 14.67 17.85
Common Stock
Fund Unit Value
(Note A):
Beginning of
Period.................... 353.07 293.22 288.23 188.63 211.73 145.61 123.90 116.67 102.00 84.15
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period.............. $346.92 $353.07 $293.22 $288.23 $188.63 $211.73 $145.61 $123.90 $116.67 $102.00
====================================================================================================================================
Ratio of expenses to
average net assets
attributable to Units
(Note B)..................... 0.30% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Ratio of net income to
average net assets
attributable to Units........ 0.81% 1.17% 1.13% 1.14% 2.02% 1.85% 1.84% 1.69% 2.18% 2.77%(Note D)
Number of registered
Common Stock
Fund Units
outstanding at end
of period.................... 27,438 24,924 23,331 20,799 18,286 14,129 8,461 5,466 3,508 452
Portfolio turnover rate (Note E) 91% 82% 68% 66% 93% 113% 101% 121% 102% 92%
====================================================================================================================================
</TABLE>
See Notes following tables.
10
<PAGE>
SEPARATE ACCOUNT NO. 3 -- POOLED (AGGRESSIVE STOCK FUND) OF THE EQUITABLE LIFE
ASSURANCE SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA
(NOTE F)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------- JULY 7, 1986-
1994 1993 1992 1991 1990 1989 1988 1987 DECEMBER 31, 1986
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Income......................... $0.71 $1.01 $ 1.21 $1.06 $1.03 $1.06 $0.60 $0.62 $0.24
Expenses (Note B) ............. (0.37) -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income.......... 0.34 1.01 1.21 1.06 1.03 1.06 0.60 0.62 0.24
Net realized and unrealized gain
(loss) on investments (Note C) (5.81) 17.43 (4.23) 55.15 4.45 17.77 0.35 (1.36) (5.79)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
Aggressive Stock Fund
Unit Value................... (5.47) 18.44 (3.02) 56.21 5.48 18.83 0.95 (0.74) (5.55)
Aggressive Stock Fund
Unit Value (Note A):
Beginning of Period........ 135.42 116.98 120.00 63.79 58.31 39.48 38.53 39.27 44.82
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period.............. $129.95 $135.42 $116.98 $120.00 $63.79 $58.31 $39.48 $38.53 $39.27
====================================================================================================================================
Ratio of expenses to average net
assets attributable to Units
(Note B)..................... 0.30% N/A N/A N/A N/A N/A N/A N/A N/A
Ratio of net investment income to
average net assets attributable
to Units..................... 0.25% 0.82% 1.09% 1.11% 1.72% 2.09% 1.47% 1.35% 1.23% (Note D)
Number of registered Aggressive
Stock Fund Units
outstanding at end of period. 26,964 23,440 21,917 14,830 8,882 5,519 3,823 2,630 651
Portfolio turnover rate (Note E) 94% 83% 71% 63% 48% 92% 103% 227% 162%
====================================================================================================================================
</TABLE>
See Notes following tables.
11
<PAGE>
Notes:
A. The values for a Registered Bond Fund, Balanced Fund,
Common Stock Fund and Aggressive Stock Fund Unit on May
1, 1992, January 23, 1985, April 8, 1985 and July 7,
1986, the first date on which payments were allocated to
purchase Registered Units in each Fund, were $36.35,
$28.07, $84.15 and $44.82, respectively.
B. Certain expenses under RIA are borne directly by
employer plans participating in RIA. Accordingly, those
charges and fees discussed under PART II-- CHARGES AND
FEES are not included above and did not affect the Fund
Unit values. Those charges and fees are recovered
through an appropriate reduction in the number of Units
credited to each employer plan participating in the Fund
unless the charges and fees are billed directly to the
employer. The dollar amount recovered is included in the
expenses in the Statements of Operations and Changes in
Net Assets for each Fund, which appear in PART III--
FINANCIAL STATEMENTS of the SAI.
As of June 1, 1994, the Annual Investment Management and
Financial Accounting Fee is deducted from the assets of
the Bond, Balanced, Common Stock and Aggressive Stock
Funds and is reflected in the computation of their unit
values. Prior to June 1, 1994, if the Annual Investment
Management and Financial Accounting Fee and certain
other fees had been reflected in the computation of Fund
Unit Values, RIA Registered Unit expenses would have
amounted to $0.67, $1.26, $5.41 and $2.05 for the year
ended December 31, 1994 on a per Unit basis for the
Bond, Balanced, Common Stock and Aggressive Stock Funds,
respectively. For the same reporting periods, the ratio
of expenses to average net assets attributable to
Registered Units would have been (on an annualized
basis) 1.57%, 1.56%, 1.57% and 1.59%, for the Bond,
Balanced, Common Stock and Aggressive Stock Funds,
respectively.
C. See Note 2 to Financial Statements of Separate Account
Nos. 13 (Pooled), 10 (Pooled), 4 (Pooled), 3 (Pooled)
and 51 which appear in Part III of the SAI.
D. Annualized basis.
E. The portfolio turnover rate excludes all short-term U.S.
Government securities and all other securities whose
maturities at the time of acquisition were one year or
less. The rate stated is the annual turnover rate for
the entire Separate Account Nos. 13 -- Pooled, 10 --
Pooled, 4 -- Pooled and 3 -- Pooled.
F. Income, expenses, gains and losses shown above pertain
only to employer plans' accumulations attributable to
RIA Registered Units. Other plans and trusts also
participate in Separate Account Nos. 13 -- Pooled, 10 --
Pooled, 4 -- Pooled and 3 -- Pooled and may have
operating results and other supplementary data different
from those shown above.
<TABLE>
<CAPTION>
SEPARATE ACCOUNT NO. 51 (POOLED) UNIT VALUES
INTERMEDIATE
GOVERNMENT QUALITY HIGH GROWTH
MONEY MARKET SECURITIES BOND YIELD & INCOME
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Unit Value as of:
December 31, 1994 ................... $102.65 $98.94 $99.83 $98.99 $99.81
Number of Registered Units Outstanding
at December 31, 1994................. 28 -- -- -- 192
</TABLE>
<TABLE>
<CAPTION>
SEPARATE ACCOUNT NO. 51 (POOLED) UNIT VALUES
EQUITY CONSERVATIVE GROWTH
INDEX GLOBAL INVESTORS INVESTORS
FUND FUND FUND FUND
---- ---- ---- ----
<S> <C> <C> <C> <C>
Unit Value as of:
December 31, 1994 .................. $101.71 $99.84 $99.83 $99.52
Number of Registered Units Outstanding
at December 31, 1994................ 10 2,468 -- 981
</TABLE>
12
<PAGE>
INVESTMENT POLICIES AND OBJECTIVES
The investment objectives and policies of the Bond, Balanced, Common Stock and
Aggressive Stock Funds are summarized below. Similarly, the investment
objectives and policies of the corresponding Portfolios of the Trust are
summarized for each of the Investment Funds of Separate Account No. 51.
Investment policies and objectives are explained in more detail in this
prospectus under PART III -- EQUITABLE AND ITS FUNDS and in the SAI under PART I
- -- FUND INFORMATION, and, with respect to the Portfolios, in the Trust's
prospectus and SAI. Investment objective and policies can be expected to affect
the rate of return for the Fund and the market and financial risks to which the
Fund is subject. There is no assurance that the objectives described below will
be met.
The MONEY MARKET FUND invests in the Trust's Money Market Portfolio which
invests primarily in high quality short-term money market instruments. Its
objective is to achieve high level of current income while preserving assets and
maintaining liquidity.
The INTERMEDIATE GOVERNMENT SECURITIES FUND invests in the Trust's Intermediate
Government Securities Portfolio which invests primarily in debt securities
issued or guaranteed by the U.S. Government, its agencies and instrumentalities.
Each investment will have a final maturity of not more than 10 years or a
duration not exceeding that of a 10-year Treasury note. Its objective is to
achieve high current income consistent with relative stability of principal.
The BOND FUND invests primarily in publicly traded fixed income securities, such
as bonds, debentures and notes. Its objective is to achieve maximum total
return, consistent with investment quality, with less volatility than a
long-term bond-account. The weighted average duration of the total portfolio
will be between one and five years.
The QUALITY BOND FUND invests in the Trust's Quality Bond Portfolio which
invests primarily in investment grade fixed income securities. Its objective is
to achieve current income consistent with preservation of capital.
The HIGH YIELD FUND invests in the Trust's High Yield Portfolio which invests
primarily in a diversified mix of high yield, fixed income securities involving
greater volatility of price and risk of principal and income than high quality
fixed income securities. Its objective is to achieve high return through a
combination of current income and capital appreciation. The medium and lower
quality debt securities in which the Portfolio may invest are known as "junk
bonds." See "Investment Policies of the High Yield Portfolio -- Risk Factors"
under "Investment Objectives and Policies" in the Trust prospectus.
The GROWTH & INCOME FUND invests in the Trust's Growth & Income Portfolio which
invests primarily in income producing common stocks and securities convertible
into common stocks. Its objective is to achieve high total return through a
combination of current income and capital appreciation.
The EQUITY INDEX FUND invests in the Trust's Equity Index Portfolio which
invests in securities in the Standard & Poor's 500 Index (the INDEX) which the
adviser believes will, in the aggregate, approximate the performance results of
the Index. Its objective is to achieve a total return performance (before Trust
expenses) that approximates the investment performance of the Index, including
reinvestment of dividends, at a risk level consistent with that of the Index.
The COMMON STOCK FUND invests primarily in common stocks and other equity-type
securities, generally issued by intermediate and large sized companies. Its
objective is to achieve long-term capital growth.
The GLOBAL FUND invests in the Trust's Global Portfolio which invests primarily
in equity securities of non-United States as well as United States companies.
Its objective is to achieve long-term growth of capital.
The INTERNATIONAL FUND invests in the Trust's International Portfolio which
invests primarily in equity securities selected principally to permit
participation in non-United States companies with prospects for growth. Its
objective is to achieve long-term growth of capital. *
The AGGRESSIVE STOCK FUND invests primarily in securities of medium and smaller
sized companies (with capitalization's generally between $50 million to $1.5
billion) perceived to have greater growth potential than larger companies. Its
objective is to achieve long-term capital growth, consistent with investment
quality.
Blended Funds:**
The CONSERVATIVE INVESTORS FUND invests in the Trust's Conservative Investors
Portfolio which invests in a diversified mix of publicly-traded, fixed income
and equity securities; asset mix and security selection are primarily based upon
factors expected to reduce risk. The Portfolio is generally expected to hold
approximately 70% of its assets in fixed income securities and 30% in equity
securities. Its objective is high total return consistent with the adviser's
opinion, without undue risk to principal.
The BALANCED FUND invests primarily in common stocks, other equity-type
instruments, longer-term fixed income securities, publicly-traded debt
securities and short-term money market instruments. Its objective is to achieve
both appreciation of capital and current income.
The GROWTH INVESTORS FUND invests in the Trust's Growth Investors Portfolio
which invests in a diversified mix of publicly-traded, fixed income and equity
securities; asset mix and security selection are primarily based upon factors
expected to increase possibility of high long-term return. The Portfolio is
generally expected to hold approximately 70% of its assets in equity securities
and 30% in fixed income securities. Its objective is high total return
consistent with the adviser's determination of reasonable risk.
CONTRIBUTIONS, TRANSFERS AND WITHDRAWALS
All contributions under an employer plan should be sent to the "CONTRIBUTIONS
ONLY" address listed at the end of this
- --------------
* The International Portfolio received its initial funding on April 3, 1995 and
will become available under RIA on or about September 1, 1995.
** For convenience, we have included the Balanced Fund as a Blended Fund,
because it invests in both equity and debt securities. The Balanced Fund is not
part of the Trust and is not managed by Alliance in the same manner as the
Trust's Conservative Investors and Growth Investors Portfolios.
13
<PAGE>
prospectus. We will process transactions in accordance with instructions
received from the employer/plan sponsor. We will allocate contributions among
and process withdrawals from one or more investment options by dollar amount. We
will transfer accumulated invested amounts among the investment options in any
whole number percentage or by dollar amount. All transactions are effective as
of the Transaction Date.
Changes in the allocation percentages of contributions made subsequent to the
initial allocation among the Investment Options and transfers of accumulated
invested amounts among the Investment Options may be made subject to our
consent, but when permitted, are made without charge and are not subject to tax
liability. See PART IV -- THE GUARANTEED INTEREST ACCOUNT and PART V --
PROVISIONS OF RIA and RETIREMENT BENEFITS -- ALLOCATION CHOICES and PART V --
TRANSFER PROVISIONS.
Withdrawals from any Fund for purposes of transfers among Investment Options,
loan transactions (see below) or to provide benefits under RIA are made by the
redemption of Units. In all cases, the value of a Unit changes in accordance
with the investment experience of the Fund. Fund investment performance does not
affect the number of Units owned in a Fund at any one time.
LOANS
Plan loans are available in our RIA program to the plan trustees of the employer
plan. We pay the loan amount to the plan trustees of the employer plan. It is
the responsibility of the plan administrator, the plan trustees and/or the
employer, and not Equitable Life, to properly administer any loan made to the
plan participants in accordance with the provisions of the plan and to the
extent allowed by the Code and ERISA. See PART V -- PROVISIONS OF RIA AND
RETIREMENT BENEFITS.
COMMUNICATIONS WITH US
Our Agents are available for information and assistance and can answer questions
about RIA. INFORMATION AND DAILY FUND UNIT VALUES MAY BE OBTAINED BY CALLING THE
RIA SERVICE OFFICE, TOLL FREE, AT 1-800-967-4560. WRITTEN COMMUNICATIONS,
INCLUDING REQUESTS FOR CONTRIBUTION ALLOCATION CHANGES, LOANS, TRANSFERS OR
WITHDRAWALS, MUST BE SENT DIRECTLY TO US AT THE RIA SERVICE OFFICE LISTED ON THE
INSIDE BACK COVER OF THIS PROSPECTUS.
Transaction requests must be made by the authorized person for the employer plan
as shown on our records (referred to herein as the employer, as explained
above), in a written or facsimile form acceptable to us and signed by the
employer. All requests will be effective on the Transaction Date. In certain
cases, transfers may not be effected until approved by us. See PART V --
PROVISIONS OF RIA AND RETIREMENT BENEFITS -- ALLOCATION CHOICES AND TRANSFER
PROVISIONS.
We will honor your properly completed transaction requests received via
facsimile only if we receive a properly completed transaction request form. The
request form must be signed by an individual who the plan trustees have
previously authorized in writing. We are not responsible for determining the
accuracy of a transmission and are not liable for any consequences, including,
but not limited to, investment losses and lost investment gains, resulting from
a faulty or incomplete transmission. If your request form is not properly
completed we will contact you within 24 hours of our receipt of your facsimile.
We will use our best efforts to acknowledge receipt of a facsimile transmission,
but our failure to acknowledge or a failure in your receipt of such
acknowledgment will not invalidate your transaction request. If you do not
receive acknowledgment of your facsimile within 24 hours, contact the RIA
Service Office on the toll-free 800 number.
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<PAGE>
- --------------------------------------------------------------------------------
PART II -- CHARGES AND FEES
- --------------------------------------------------------------------------------
There are two general types of expenses you may incur under RIA. The first
includes expenses which are reflected as reductions in the Unit values of the
Funds. These charges apply to all amounts invested in RIA, including amounts
being distributed under installment payout options.
The second type of charge is typically stated in terms of a defined percentage
or dollar amount and is deducted by reducing the number of Units in the
appropriate Funds and the number of dollars in the GIA.
No deductions are made from contributions for sales expenses. We reserve the
right (1) to change from time to time the charges and fees described in this
prospectus upon prior notice to the employer and (2) to establish separate fee
schedules for requested non-routine administrative services and for
newly-scheduled services not presently contemplated under the Contracts.
Under PART V -- PROVISIONS OF RIA AND RETIREMENT BENEFITS, we discuss a $175
annuity benefit charge and the possible application of a charge for state tax
which may arise if an annuity benefit is elected under RIA. We also discuss the
operation of the Ongoing Operations Fee and the Contingent Withdrawal Charge in
the event a loan is outstanding.
The Ongoing Operations Fee and the Participant Recordkeeping Services Charge,
each described below under CHARGES WHICH REDUCE THE NUMBER OF UNITS IN RIA, can
be paid either under a direct billing arrangement we have with the employer or
by redeeming the number of Units in each Fund applicable to the employer plan
or, finally, by reducing the amount of proceeds payable under the employer plan.
CHARGES WHICH ARE REFLECTED IN REDUCTIONS IN THE UNIT VALUE
Trust Charges to Portfolios
Investment Advisory fees charged daily against assets of the Trust, direct
operating expenses of the Trust (such as trustees' fees, expenses of independent
auditors and legal counsel, bank and custodian charges and liability insurance),
and certain investment-related expenses of the Trust (such as brokerage
commissions and other expenses related to the purchases and sale of securities),
are reflected in each Portfolio's daily share price. The maximum investment
advisory fees paid by the Portfolios cannot be changed without a vote by the
shareholders. The maximum investment advisory fees are as follows:
DAILY AVERAGE NET ASSETS
--------------------------------
FIRST NEXT OVER
$350 $400 $750
MILLION MILLION MILLION
-------- --------- ---------
Money Market.................. .400% .375% .350%
Intermediate Government
Securities................. .500% .475% .450%
High Yield, Global,
Conservative Investors
and Growth Investors....... .550% .525% .500%
FIRST NEXT OVER
$500 $500 $1
MILLION MILLION BILLION
-------- --------- ---------
Quality Bond and
Growth & Income............ .550% .525% .500%
FIRST NEXT OVER
$750 $750 $1.5
MILLION MILLION BILLION
-------- --------- ---------
Equity Index.................. .350% .300% .250%
FIRST NEXT OVER
$500 $1 $1.5
MILLION BILLION BILLION
-------- --------- ---------
International................. .900% .850% .800%
All of these fees and expenses are described more fully in the Trust prospectus
attached to this prospectus. Since the Trust shares are purchased at their net
asset value, these fees and expenses are passed on to the Investment Funds of
Separate Account No. 51 and are reflected in their Unit values. See PART III --
EQUITABLE LIFE AND ITS FUNDS.
Investment Management and Financial Accounting Fee Applicable to the Bond,
Balanced, Common Stock and Aggressive Stock Funds
We make a daily charge for investment management and financial accounting fees
at an annual rate equal to 0.50% of the assets in the Bond, Balanced, Common
Stock and Aggressive Stock Funds that is reflected in the daily Unit values for
the Funds. This is the fee charged for services as described in PART III --
EQUITABLE LIFE AND ITS FUNDS.
Separate Account Administrative Charge for the Investment Funds of Separate
Account No. 51
We make a daily charge at an annual rate of 0.05% of the assets invested in the
Investment Funds of Separate Account No. 51. The charge is designed to reimburse
us for our costs in providing the administrative services in connection with the
Contracts. See PART III -- EQUITABLE LIFE AND ITS FUNDS.
CHARGES WHICH REDUCE THE NUMBER OF UNITS IN RIA
Contingent Withdrawal Charge
We impose a contingent withdrawal charge (CWC) against withdrawals made from RIA
at any time up to and including
15
<PAGE>
the ninth anniversary of the date on which the employer plan began its
participation in RIA. However, a CWC will not be applied against amounts
withdrawn for the purpose of making benefit distribution payments unless such
withdrawals are made (i) on or after the date of discontinuance of an employer
plan's participation in RIA or (ii) as a result of a full or partial
termination, within the meaning of applicable Internal Revenue Service (IRS) or
court interpretations. A CWC will be applied against amounts withdrawn for
purposes of making benefit payments to participants who terminated employment
either voluntarily or involuntarily, BUT ONLY when such terminations are
attributable to (i) the employer's merger with another company, (ii) the sale of
the employer or (iii) the bankruptcy of the employer which leads to the full or
partial termination of the plan or the discontinuance of the employer plan's
participation in RIA.
Outstanding loan balances are included in the plan's assets for purposes of
assessing the CWC. There is no CWC on transfers between the Investment Options.
However, unless otherwise agreed to in writing by an officer of Equitable Life,
withdrawals from RIA for the purpose of transferring to another investment
option under the employer plan will be subject to the CWC. Withdrawals from RIA
for the purpose of paying plan expenses or the premium on a life insurance
policy, including one held under the employer plan (See PART VI -- COMMISSIONS
AND SERVICE FEES), are not considered in-service withdrawals or any other type
of benefit distribution and are subject to the CWC. The amount of any CWC is
determined in accordance with the rate schedule set forth below.
- --------------------------------------------------------------
WITHDRAWAL IN
PARTICIPATION
YEARS CONTINGENT WITHDRAWAL CHARGE
- --------------------------------------------------------------
1 or 2 6% of Amount Withdrawn
3 or 4 5%
5 or 6 4%
7 or 8 3%
9 2%
10 and later 0%
- --------------------------------------------------------------
Benefit distribution payments are those payments that become payable with
respect to participants under the terms of the employer plan as follows: (1) as
the result of the retirement, death or disability of a participant; (2) as the
result of a participant's separation from service as defined under Section
402(d)(4)(A) of the Code; (3) in connection with a loan transaction, if the loan
is repaid in accordance with its terms; (4) as a minimum distribution pursuant
to Section 401(a)(9) of the Code; (5) as a hardship withdrawal pursuant to
Section 401(k) of the Code; (6) pursuant to a qualified domestic relations order
(QDRO) under Section 414(p) of the Code, but only if the QDRO specifically
requires that the plan administrator withdraw amounts for payment to an
alternate payee; (7) as a result of an in-service withdrawal attributable to the
after-tax contributions of a participant; or (8) as a result of an in-service
withdrawal from a profit-sharing plan after meeting a minimum number of years of
service and/or participation in the plan, and the attainment of a minimum age
specified in the plan. Prior to any withdrawal from RIA for benefit distribution
purposes, Equitable Life reserves the right to receive from the employer and/or
trustees of the plan, evidence satisfactory to it that such benefit distribution
conforms to at least one of the types mentioned above. See PART V -- PROVISIONS
OF RIA AND RETIREMENT BENEFITS.
The CWC is designed to recover the unamortized sales and promotion expenses and
initial enrollment expenses.
Ongoing Operations Fee
The Ongoing Operations Fee is based on the combined net balances (including any
outstanding loan balance) of an employer plan in the Investment Options at the
close of business on the last Business Day of each month. The amount of the
Ongoing Operations Fee is determined under the rate schedule that applies to the
employer plan. Except as discussed above, it is paid from the employer plan
balances at the close of business on the last Business Day of the following
month.
Set forth below is the rate schedule for employer plans which adopted RIA after
February 9, 1986. Information concerning the rate schedule for employer plans
that adopted RIA on or before February 9, 1986 is included in the SAI under PART
I -- FUND INFORMATION.
- --------------------------------------------------------------
COMBINED BALANCE
OF MONTHLY
INVESTMENT OPTIONS RATE
- --------------------------------------------------------------
First $ 150,000 1/12 of 1.25%
Next $ 350,000 1/12 of 1.00%
Next $ 500,000 1/12 of 0.75%
Over $1,000,000 1/12 of 0.50%
- --------------------------------------------------------------
The Ongoing Operations Fee is designed to cover such expenses as Contract
underwriting and issuance for employer plans, employer plan-level recordkeeping,
processing transactions and benefit distributions, administratively maintaining
the Investment Options, commissions, promotion of RIA, administrative costs
(including certain enrollment and other servicing costs), systems development,
legal and technical support, product and financial planning and part of our
general overhead expenses. Administrative costs and overhead expenses include
such items as salaries, rent, postage, telephone, travel, office equipment and
stationery, and legal, actuarial and accounting fees.
Participant Recordkeeping Services Charge
The PRS is an optional service. If this service is elected, we charge a per
participant annual fee of $25. The fee is deducted on a monthly basis at the
rate of $2.08 per participant. The amount of the fee for an employer plan is
determined at the close of business on the last Business Day of each month based
on the number of participants enrolled with us at that time. Except as discussed
above, we charge the amount against the combined balances of each participant in
the Investment Options at the close of business on the last Business Day of the
following month.
The PRS fee covers expenses incurred for establishing and maintaining individual
records, issuing statements and reports for individual employees and employer
plans, and processing individual transactions and benefit distributions. We are
not responsible for reconciling participants' individual account balances with
the entire amount of the employer plan where we do not maintain individual
account balances. See PART VIII -- PARTICIPANT RECORDKEEPING SERVICES
(OPTIONAL).
Loan Fee
We charge a loan fee in an amount equal to 1% of the loan principal amount on
the Transaction Date the plan loan is made. See PART V -- PROVISIONS OF RIA AND
RETIREMENT BENEFITS.
16
<PAGE>
- --------------------------------------------------------------------------------
PART III -- EQUITABLE LIFE AND ITS FUNDS
- --------------------------------------------------------------------------------
EQUITABLE LIFE
EQUITABLE LIFE is a New York stock life insurance company that has been in
business since 1859. For more than 100 years we have been among the largest life
insurance companies in the United States. Equitable Life has been selling
annuities since the turn of the century. Our Home Office is located at 787
Seventh Avenue, New York, New York 10019. We are authorized to sell life
insurance and annuities in all fifty states, the District of Columbia, Puerto
Rico and the Virgin Islands. We maintain local offices throughout the United
States.
Equitable Life is a wholly-owned subsidiary of The Equitable Companies
Incorporated (the "Holding Company"). The largest stockholder of the Holding
Company is AXA, a French insurance holding company. AXA beneficially owns 60.5%
of the outstanding shares of common stock of the Holding Company as well as
$392.2 million stated value of its issued and outstanding Series E Convertible
Preferred Stock. Under its investment arrangements with Equitable Life and the
Holding Company, AXA is able to exercise significant influence over the
operations and capital structure of the Holding Company and its subsidiaries,
including Equitable Life. AXA is the principal holding company for most of the
companies in one of the largest insurance groups in Europe. The majority of
AXA's stock is controlled by a group of five French mutual insurance companies.
Equitable Life, the Holding Company and their subsidiaries managed approximately
$174.5 billion of assets as of December 31, 1994, including pension assets of
approximately $128 billion. We are one of the nation's leading pension fund
managers. These assets are primarily managed for retirement and annuity programs
for businesses, tax-exempt organizations and individuals. This broad customer
base includes nearly half the Fortune 100, more than 39,000 small businesses,
state and local retirement funds in more than half the 50 states, approximately
225,000 employees of educational and non-profit institutions, as well as nearly
370,000 individuals. Millions of Americans are covered by Equitable Life's
annuity, life, health and pension contracts.
ABOUT OUR FUNDS
We established the Bond, Balanced, Common Stock and Aggressive Stock Funds under
the Insurance Law of New York State as separate investment accounts in 1981,
1979, 1969 and 1969, respectively. Each of these Funds is a pooled separate
investment account used as an investment vehicle for contributions under
tax-favored employee benefit plans participating in the Fund, including employer
plans participating in RIA. The assets of the Bond, Balanced, Common Stock and
Aggressive Stock Funds, consisting of separate portfolios of securities and cash
items, are managed by us through one of our subsidiaries that also manages the
Trust. Because of exclusionary provisions, none of the Funds is subject to
regulation under the Investment Company Act of 1940, as amended (1940 ACT).
We established the Growth Investors, Conservative Investors and Global Funds as
Investment Funds of Separate Account No. 51 under the Insurance Law of New York
State in 1993. The Money Market, Intermediate Government Securities, Quality
Bond, High Yield, Growth & Income and Equity Index Funds were established as
Investment Funds of Separate Account No. 51 in 1994. The International Fund will
be established as an investment fund of Separate Account No. 51 on or about
September 1, 1995. The Investment Funds of Separate Account No. 51 invest in
shares of a corresponding Portfolio of the Trust which are actively managed as
described in the attached Trust Prospectus.
The assets of the Funds are our property; however, the portion of the assets of
the Funds equal to the reserves and other contract liabilities with respect to
the Funds will not be chargeable with liabilities arising out of any other
business we may conduct. Income, gains or losses, whether or not realized, from
assets allocated to the Funds are credited to or charged against the Fund
without regard to our other income, gains or losses.
THE TRUST
The Trust is an open-end, diversified management investment company, more
commonly called a mutual fund. As a "series" type of mutual fund, it issues
several different series of stock, each of which relates to a different
Portfolio of the Trust. The Trust commenced operations in January 1976 with a
predecessor of its Common Stock Portfolio. The Trust does not impose a sales
charge.
PURCHASE AND REDEMPTION OF UNITS
Amounts allocated to the Funds pursuant to an employer plan, with respect to
contributions submitted and transfers of accumulations from other Investment
Options (and in appropriate circumstances upon repayments of loans), are
invested in Separate Account No. 13 -- Pooled, Separate Account No. 10 --
Pooled, Separate Account No. 4 -- Pooled or Separate Account No. 3 -- Pooled,
respectively, through the purchase of Bond Fund Units, Balanced Fund Units,
Common Stock Fund Units or Aggressive Stock Fund Units. Similarly, amounts
allocated to the Investment Funds of Separate Account No. 51 are invested
through the purchase of Money Market Units, Intermediate Government Securities
Units, Quality Bond Units, High Yield Units, Growth & Income Units, Equity Index
Units, Global Units, International Units, Conservative Investors Units or Growth
Investors Units. The number of Units of each Fund purchased is equal to the
amount of the payment allocated to that Fund, divided by that Fund's Unit value
determined as of the Transaction Date. See PART I -- FUND INFORMATION in the
SAI. The resulting number of Units does not vary because of any subsequent
fluctuation in value, but the Unit values fluctuate to reflect the investment
income, realized and unrealized capital gains and losses of the Funds (or the
Trust's Portfolios), fees and expenses in connection with portfolio
transactions, investment management fees, and the annual operation of the Funds.
17
<PAGE>
Amounts withdrawn from a Fund for the purposes of payments of employer plan
benefits, transfers of accumulations to other Investment Options, loans or
payments of certain charges and fees when due are effected by reducing the
number of Units in the appropriate Fund. The number of Units redeemed for an
employer plan for such purposes is determined by the amount to be withdrawn
divided by the Unit value on the Transaction Date.
HOW WE DETERMINE THE UNIT VALUE
The Unit values (rounded to the nearest cent) of the Bond, Balanced, Common
Stock and Aggressive Stock Funds were $36.35, $28.07, $84.15, and $44.82,
respectively, on May 1, 1992, January 23, 1985, April 8, 1985 and July 7, 1986,
respectively, the first date on which Registered Units under the Contracts were
purchased in these Funds under RIA. The Unit values (rounded to the nearest
cent) of the Money Market, Intermediate Government Securities, Quality Bond,
High Yield, Growth & Income, Equity Index, Global, Conservative Investors and
Growth Investors Funds were $10.00 on June 1, 1994, the first date on which
Registered Units under the Contracts were purchased in these Funds.
We calculate Unit values for the Funds at the end of each Business Day. The Unit
value for the Bond, Balanced, Common Stock and Aggressive Stock Funds reflect
investment performance (including related expenses) and the investment
management and financial accounting fee. The Unit values for the Investment
Funds of Separate Account No. 51 reflect investment performance, the Separate
Account Administrative Charge and, indirectly, Trust expenses. For each of the
Funds, we determine the Unit value by multiplying the Unit value for the
preceding Business Day by the "net investment factor" for that subsequent day.
For a description of how the net investment factors are determined, see PART I
- -- FUND INFORMATION in the SAI.
When payments are invested in a Fund, the number of Units outstanding
attributable to each Fund is correspondingly increased; and when amounts are
withdrawn from a Fund, the number of Units outstanding attributable to that Fund
is correspondingly decreased. See PART I -- FUND INFORMATION in the SAI.
INVESTMENT OBJECTIVES AND POLICIES
Before deciding whether amounts will be allocated entirely to one of the Funds
or entirely to the Guaranteed Interest Account, or divided among the Investment
Options, the investment objectives and policies should be considered.
Each Fund, or Trust Portfolio in which an Investment Fund of Separate Account
No. 51 is invested, has different investment objectives and policies. The
differences may affect the return of each Fund, as well as the market and
financial risks of each. By market risks, we mean factors which do not
necessarily relate to a particular issuer but which affect the way markets, and
securities within those markets, perform. We sometimes describe market risk in
terms of volatility, that is, the range and frequency of market value changes.
Market risks include such things as changes in interest rates, general economic
conditions and investor perceptions regarding the value of debt and equity
securities. By financial risks we mean factors associated with a particular
issuer which may affect the price of its securities, such as its competitive
posture, its earnings and its ability to meet its debt obligations. There is no
assurance that the objectives of any of the Funds will be met. All investments
involve risk and there can be no guarantee against loss resulting from an
investment in the Funds.
Set forth below is information regarding the investment objectives and policies
of the Bond, Balanced, Common Stock and Aggressive Stock Funds. Additional
information regarding investment restrictions and requirements with respect to
these Funds, is given in the SAI in PART I -- FUND INFORMATION. A Statement of
Investments of the Bond, Balanced, Common Stock and Aggressive Stock Funds is
included in the financial statements of Separate Account No. 13 -- Pooled,
Separate Account No. 10 -- Pooled, Separate Account No. 4 -- Pooled and Separate
Account No. 3 -- Pooled, respectively, in Part III of the SAI.
Information regarding the investment objectives and policies, as well as
investment restrictions and requirements, with respect to the corresponding
Trust Portfolios in which the Investment Funds of Separate Account No. 51 are
invested, is included in the Trust's prospectus and SAI. A statement of
investments for each of the Portfolios is included in the Trust's financial
statements in the Trust's SAI.
BOND FUND
The Bond Fund invests primarily in publicly-traded fixed income securities, such
as bonds, debentures and notes. Its objective is to achieve maximum total
return, consistent with investment quality, with less volatility than a
long-term bond account.
The Bond Fund seeks to achieve its objective by investing primarily in
fixed-income securities including, but not limited to, the following:
obligations issued or guaranteed by the U.S. Government (such as U.S. Treasury
securities), its agencies (such as the Government National Mortgage
Association), or instrumentalities (such as the Federal National Mortgage
Association); corporate debt securities; mortgage pass-through securities;
collateralized mortgage obligations; asset-backed securities; zero coupon bonds;
and equipment trust certificates. All such securities will be investment grade,
i.e. rated within the four highest credit categories by S&P (AAA, AA, A or BBB)
or by Moody's (Aaa, Aa, A or Baa) or, if unrated, will be of comparable
investment quality as determined by our credit analysis. Bonds rated below A by
S&P or Moody's are more susceptible to adverse economic conditions or changing
circumstances than those rated A or higher but are regarded as having an
adequate capacity to pay principal and interest.
The fixed-income securities in which the Bond Fund invests have maturities less
than or equal to ten years. The weighted average duration of the total portfolio
will be between one and five years. Duration is a principle used in selecting
portfolio securities that indicates a particular fixed-income security's price
volatility. Duration is measured by taking into account all of the expected
payments relating to that security and the time in the future when each payment
will be made and weighting all such times by the present value of the
corresponding payments. The duration of a fixed- income security with interest
payments occurring prior to its maturity is always shorter than its term to
maturity. In addition, given identical maturities, the lower the stated rate of
interest of a fixed-income security, the longer its duration, and, conversely,
the higher the stated rate of interest of a fixed-income security, the shorter
its duration. We believe that the Bond Fund's policy of purchasing intermediate
duration bonds significantly reduces the volatility of the Fund's unit price
over that of a long-term bond account.
18
<PAGE>
While the Bond Fund will invest primarily in the types of fixed-income
securities described above, the Bond Fund may also invest in high-quality money
market securities, which may include obligations of the U.S. Government, its
agencies and instrumentalities; negotiable certificates of deposit; banker's
acceptances or bank time deposits; repurchase agreements; master demand notes;
and other money market instruments of the type described below for the Balanced
Fund. See -- BALANCED FUND below. The Bond Fund may purchase these money market
securities directly or may acquire units in our Separate Account No. 2A. See --
COMMON STOCK FUND below. For temporary or defensive purposes the Bond Fund may
invest directly or indirectly in money market securities without limitation.
The Bond Fund may purchase fixed-income securities and money market securities
having adjustable rates of interest with periodic demand features. The Bond Fund
may also purchase fixed-income securities and certain money market securities on
a when-issued or delayed delivery basis. The price of when-issued securities is
fixed at the time of commitment, but delivery and payment for such securities
may take place up to 90 days after the date of the commitment. The securities so
purchased are subject to market fluctuation, and no interest accrues to the
purchaser during this period. When-issued securities involve a risk of loss if
the value of the security declines prior to the settlement date. For additional
information on the instruments in which the Bond Fund invests, See PART I --
FUND INFORMATION -- CERTAIN INVESTMENTS OF THE BOND FUND in the SAI.
The Bond Fund is designed for participants who seek a greater rate of return
than that normally provided by money market investments and less volatility than
that experienced by long-term bond investments. Both the financial and market
risks of an investment in the Bond Fund are expected to be less than those for
the Common Stock, Balanced and Aggressive Stock Funds. Nevertheless, the Bond
Fund's unit price and yield will fluctuate. Interest rate fluctuations will
affect the value of Bond Fund Units but will not affect the income received from
the Fund's portfolio securities. A decline in prevailing interest rates
generally will increase the value of the securities held by the Bond Fund, while
an increase in prevailing interest rates usually reduces the value of the Bond
Fund's portfolio securities.
The portfolio turnover rate for the Bond Fund cannot be accurately predicted and
may be high.
BALANCED FUND
The Balanced Fund's investment objective is to achieve both appreciation of
capital and current income by investing in a diversified portfolio of publicly
traded common stocks, other equity-type securities and debt securities and
short-term money market instruments. The Balanced Fund will seek to achieve
long-term growth of its capital by investments in common stocks, other
equity-type instruments and longer-term fixed income securities, and increasing
income through investments in publicly traded debt securities and short-term
money market instruments.
We will vary the portion of the Balanced Fund's assets invested in each type of
security in accordance with our evaluation of economic conditions, the general
level of common stock prices, anticipated interest rates and other relevant
considerations, including our assessment of the risks associated with each
investment medium. In general, equity securities will comprise the greatest
portion of the Balanced Fund's assets. From its inception through December 31,
1994, the percentage of the Balanced Fund's assets invested in equity securities
(including convertibles) has ranged from 50% to 57%. The equity securities
invested in by the Balanced Fund will consist of the types of securities in
which the Common Stock Fund may invest, including equity-type securities (such
as convertible preferred stocks or convertible debt instruments). The publicly
traded debt securities investments will consist primarily of such securities as
bonds, notes, debentures and equipment trust certificates and also may include
equity features such as those described for the Common Stock Fund. The average
maturity of the debt securities held by the Balanced Fund will vary according to
market conditions and the stage of interest rate cycles. The Balanced Fund may
also realize gains on debt securities when such actions are considered
advantageous in light of existing market conditions. Like the Common Stock Fund,
the Balanced Fund may invest up to 10% of its total assets in restricted
securities and may invest in foreign companies without substantial business in
the United States. See -- COMMON STOCK FUND below.
The Balanced Fund may invest in money market securities through our Separate
Account No. 2A or directly. See -- COMMON STOCK FUND below. The kinds of
investments the Balanced Fund makes in money market instruments will be payable
only in United States dollars and will consist principally of securities issued
or guaranteed by the United States Government or one of its agencies or
instrumentalities, negotiable certificates of deposit, bankers' acceptances or
bank time deposits, repurchase agreements (covering securities issued or
guaranteed by the United States Government or one of its agencies or
instrumentalities, certificates of deposit or bankers' acceptances), commercial
paper that is rated Prime-1 by Moody's Investors Services, Inc. (MOODY'S) or A-1
or A-1 Plus by Standard & Poor's Corporation (S&P), unrated commercial paper,
master demand notes or variable amount floating rate notes of any issuer that
has an outstanding issue of unsecured debt that is currently rated Aa or better
by Moody's or AA or better by S&P with less than one year to maturity. Such
investments may include certificates of deposit and time deposits of London
branches of United States banks (these investments are usually referred to as
EURODOLLARS) and certificates of deposit and commercial paper issued by SCHEDULE
B BANKS (Canadian chartered bank subsidiaries of United States banks). The
Balanced Fund's investment policies do not prohibit hedging transactions such as
through the use of put and call options and stock index or interest rate
futures. However, the Balanced Fund currently has no plans to enter into such
transactions.
Because we have discretion to vary the proportion of the portfolio invested in
the different types of securities based on the factors indicated above, the
Balanced Fund is subject to the risk that we may incorrectly predict changes in
the relative values of the stock and bond markets.
Because the types and proportions of the Balanced Fund's assets are expected to
change frequently in accordance with market conditions, an annual portfolio
turnover rate cannot be predicted.
COMMON STOCK FUND
The Common Stock Fund's investment objective is to achieve long-term capital
growth. We try to achieve this objective by investing in the securities of
carefully selected companies we believe will share in the growth of our nation's
economy -- and those of other leading industrialized
19
<PAGE>
countries -- over a long period. The Common Stock Fund invests in securities of
companies of any capitalization but is generally invested primarily in
securities of intermediate to large size companies.
The Common Stock Fund invests primarily in common stocks and other equity-type
securities (such as convertible preferred stocks or convertible debt
instruments). The Common Stock Fund may use its assets to make non-equity
investments. These could include non-participating and non-convertible preferred
stocks, bonds and debentures. Some non-equity investments may carry certain
equity features such as conversion or exchange rights or warrants for the
acquisition of stocks of the same or different issuers or participations based
on revenues, sales or profit. If, in light of economic conditions and the
general level of stock prices, it appears that the Common Stock Fund's
investment objective will not be met by buying equities, non-equity investments
may be substantial. The Common Stock Fund may invest up to 10% of its total
assets in securities which are restricted as to resale under Federal securities
law (generally referred to as "restricted securities").
The Common Stock Fund may make temporary investments in government obligations,
short-term commercial paper and other money market instruments of the types
purchased by the Balanced Fund. It may buy these directly or acquire units in
our Separate Account No. 2A. We established Separate Account No. 2A in 1983 to
provide a more efficient means for our separate accounts to invest cash
positions on a pooled basis at no additional cost. Separate Account No. 2A seeks
to obtain a high level of current income, preserve its assets and maintain
liquidity. It invests only in short-term securities which mature in 60 days or
less from the date of purchase or which are subject to a repurchase agreement
requiring repurchases in 60 days or less. Units in Separate Account No. 2A are
not registered under the Securities Act of 1933 (1933 ACT). Some amounts may be
invested in securities which are restricted as to disposition under Federal
securities law.
While equity investments will be made primarily in securities of U.S. companies
or foreign companies doing substantial business here, a limited portion of the
Common Stock Fund's investments may be made in the securities of established
foreign companies without substantial business here. The amount of these
investments will not generally exceed 15% of the value of the Common Stock
Fund's assets. For many foreign securities, there are dollar-denominated
American Depository Receipts (ADRS), which are traded in the United States on
exchanges or over-the-counter, and are issued by domestic banks. The Common
Stock Fund may invest in foreign securities directly and through ADRs, and may
hold some foreign securities outside the United States. The Common Stock Fund
intends to invest in foreign securities only when the potential benefits to the
Common Stock Fund are deemed to outweigh the risks.
In addition to the general risks inherent in any equity investment, and the
market and financial risks discussed above, investment in the Common Stock Fund
is subject to the risk of investment in foreign securities and restricted
securities. Foreign investments may involve risks not present in domestic
investments, such as changes in the political or economic climate of countries
in which portfolio companies do business. Foreign securities may be less liquid
or subject to greater price volatility than securities of domestic issuers, and
foreign accounting, auditing and disclosure standards may differ from domestic
standards. There may be less regulation in foreign countries of stock exchanges,
brokers, banks, and listed companies than in the United States. The value of
foreign investments may rise or fall because of changes in currency exchange
rates or exchange controls. ADRs do not lessen the foreign exchange risk
inherent to investing in the securities of foreign issuers. However, by
investing in ADRs rather than directly in foreign issuers' stock, the Common
Stock Fund will avoid currency risks during the settlement period for either
purchases or sales. Restricted securities are generally less liquid than
registered securities and market quotations for such securities may not be
readily available. The Common Stock Fund may not be able to sell restricted
securities except pursuant to registration under applicable Federal and State
securities laws or pursuant to SEC rules which limit their sale to certain
purchasers and may require that they be held by the Common Stock Fund for a
specified period of time prior to resale. Because of these restrictions, at
times the Common Stock Fund may not be readily able to sell them at fair market
value. From time to time, the equity holdings in the Common Stock Fund may be
concentrated in the securities of a relatively small number of issues. In no
event will an investment be made for the Fund in securities of one issuer if
such investment would cause more than 10% of the net asset value of the Common
Stock Fund to be invested in the securities of such issuer, and no investment
will be made for the Fund if such investment would cause more than 40% of the
net asset value of the Fund to be invested in the securities of four or fewer
issuers. This strategy of investment concentration may increase an investor's
risk of loss in the event of a decline in the value of one of these securities
while it is held in the Common Stock Fund. As of December 31, 1994, 29.8% of the
Common Stock Fund's assets was held in the securities of four issuers. See
PORTFOLIO OF INVESTMENTS in the SAI.
The Common Stock Fund will generally hold its investments for an extended
period, and the annual portfolio turnover rate will normally be under 125%.
AGGRESSIVE STOCK FUND
The Aggressive Stock Fund seeks to achieve long-term capital growth, consistent
with investment quality. It will attempt to achieve this objective by investing
primarily in securities of medium and smaller sized companies (with
capitalizations generally between $50 million to $1.5 billion) which are
perceived to have greater growth potential than larger companies.
Most of the time, the Aggressive Stock Fund will invest primarily in common
stocks of medium and smaller sized companies. It may also invest in securities
not generally considered defined growth stocks, but that may have unusual value
or potential. For example, opportunities for capital growth exist from time to
time in what are believed to be cyclical industries, companies whose securities
are temporarily undervalued, special situations, younger but not widely known
companies and companies doing business in countries whose economies are
expanding. The Aggressive Stock Fund may invest in foreign companies without
substantial business activities in the United States. Industry diversification
is not an objective of the Aggressive Stock Fund and it may at times be less
diversified than a traditional equity portfolio. Some other equity-type
investments may also be made. The Aggressive Stock Fund may also invest in
short-term debt securities such as corporate notes and the types of temporary
money market investments
20
<PAGE>
described above for the Balanced Fund. The Aggressive Stock Fund may invest up
to 10% of its total assets in restricted securities. See -- BALANCED FUND and --
COMMON STOCK FUND above.
Medium and smaller sized companies may be dependent on only one or two products.
They may be more vulnerable to the competition from larger companies with
greater resources and to economic conditions affecting their market sector.
Therefore, consistent earnings may not be as likely in smaller companies as they
may be in more established companies. Such companies may also be more dependent
on access to equity markets to raise capital than larger companies with ability
to support debt. Small and intermediate sized companies may be new, without long
business or management histories, and perceived by the market as unproven. Their
securities may be held primarily by insiders or institutional investors which
may have an impact on marketability. These stocks may rise and fall more than
the overall market.
Foreign and restricted securities in the Aggressive Stock Fund are subject to
the risks described above for the Common Stock Fund.
IN LIGHT OF THE AGGRESSIVENESS OF ITS POLICIES AND THE LESS DIVERSIFIED NATURE
OF ITS INVESTMENTS, AS PARTICIPANTS NEAR RETIREMENT, THEY SHOULD PERIODICALLY
REEVALUATE THE AMOUNT ALLOCATED TO THE AGGRESSIVE STOCK FUND.
Many investments which we believe would have the greatest growth potential may
involve greater risks than are inherent in the Common Stock Fund and the
Balanced Fund.
In general, the annual portfolio turnover rate of the Aggressive Stock Fund is
not expected to exceed 150%.
INVESTMENT MANAGEMENT
As the investment manager of the Bond, Balanced, Common Stock and Aggressive
Stock Funds, we invest and reinvest the assets of these Funds in a manner
consistent with the policies described above under INVESTMENT OBJECTIVES AND
POLICIES OF THE FUNDS.
In providing these services to the Bond, Balanced, Common Stock and Aggressive
Stock Funds, we currently use the personnel and facilities of our majority-owned
subsidiary, Alliance Capital Management L.P. (ALLIANCE), for portfolio selection
and transaction services. Alliance is also the investment adviser for the Trust.
Alliance is a registered investment adviser under the Investment Advisors Act of
1940 and acts as an investment adviser to various separate accounts and general
accounts of Equitable Life and other affiliated insurance companies. Alliance's
main office is located at 1345 Avenue of the Americas, New York, New York 10105.
On December 31, 1994, Alliance was managing $121 billion in assets.
The securities held in the Bond, Balanced, Common Stock and Aggressive Stock
Funds must be reviewed and approved by the Investment Committee of our Board of
Directors. Subject to the Investment Committee's broad supervisory authority,
our investment officers have been given discretion as to sales and, within
specified limits, purchases of stocks, other equity securities and certain debt
securities. When an investment opportunity arises that is consistent with the
objectives of more than one of these Funds, investment opportunities are
allocated among these Funds in an impartial manner based on certain factors such
as the Funds' investment objectives and their then-current investment and cash
positions.
Our parent, The Holding Company, owns Donaldson, Lufkin & Jenrette, Inc. (DLJ).
A DLJ subsidiary, Donaldson, Lufkin & Jenrette Securities Corporation, is one of
the nation's largest investment banking and securities firms. Another DLJ
subsidiary, Autranet, Inc., is a securities broker that markets independently
originated research to institutions. Through the Pershing Division of Donaldson,
Lufkin & Jenrette Securities Corporation, DLJ supplies correspondent services,
including order execution, securities clearance and other centralized financial
services, to numerous independent regional securities firms and banks.
To the extent permitted by law, and consistent with the Bond, Balanced, Common
Stock and Aggressive Stock Funds transaction practices discussed in this
prospectus and the SAI, these Funds may engage in securities and other
transactions with the above entities or may invest in shares of the investment
companies with which those entities have affiliations.
RATES OF RETURN
In order to show how the performance of the Funds may affect employer balances,
the following tables provide a historical view of investment performance. The
information presented includes performance results for each Fund including, for
the Investment Funds of Separate Account No. 51, performance results since
inception of the corresponding Portfolios, along with the appropriate
benchmarks. These performance results are based on the change in the Unit value
for the periods shown. Note that year-to-date figures are not annualized.
Performance data for the Bond, Balanced, Common Stock and Aggressive Stock Funds
reflect (i) the investment results of the Fund since inception and (ii) the
investment management and financial accounting fee. We have recalculated
performance prior to June 1, 1994 to reflect the deduction of this fee even
though it did not apply as an asset-based charge. Performance data for the
Investment Funds of Separate Account No. 51 (other than the International Fund)
reflect (i) the investment results of the corresponding Portfolios of the Trust
from the date of inception of those Portfolios, (ii) the actual investment
advisory fee and direct operating expenses of the relevant Portfolio and (iii)
the Separate Account Administrative Charge (although this latter charge was not
an asset-based charge before the Portfolios were available under RIA). None of
the data reflects the Ongoing Operations Fee, which may be paid by a reduction
in the number of Units credited under an employer plan and applied (for employer
plans enrolled in RIA on or after February 9, 1986, on a decremental scale based
on employer plan balances), or loan fee, annuity benefit charge or charge for
premium taxes, which may not be applicable to any particular Participant.
Because rates of return do not reflect the Ongoing Operations Fee or other
charges and fees applicable to employer plans under RIA, the rate of return for
an employer plan would be lower if such charges and fees were reflected.
For amounts allocated or transferred to a Fund, investment return and principal
will fluctuate and Unit values may be worth more or less than the original cost
when redeemed.
Market indices are not subject to any charges for investment advisory fees
typically associated with a managed
21
<PAGE>
portfolio. Comparisons with these benchmarks, therefore, are of limited use. We
include them because they are widely known and may help you to understand the
universe or securities from which each Fund is likely to select its holdings.
INCEPTION DATES AND COMPARATIVE BENCHMARKS
MONEY MARKET: May 11, 1982; Salomon Brothers Three-Month T-Bill Index (3-Month
T-Bill).
INTERMEDIATE GOVERNMENT SECURITIES: April 1, 1991; Lehman Intermediate
Government Bond Index (Lehman Intermediate Government).
BOND: May 1, 1981; Lehman Intermediate Government/ Corporate Bond Index (Lehman
Intermediate GC).
QUALITY BOND: October 1, 1993; Lehman Aggregate Bond Index (Lehman Aggregate).
HIGH YIELD: January 2, 1987; Merrill Lynch High Yield Master Index (Master High
Yield).
GROWTH & INCOME: October 1, 1993; 75% Standard & Poor's 500 Index (S&P 500), and
25% Value Line Convertible Index (75% S&P 500/25% Value Line Conv.).
EQUITY INDEX: March 1, 1994; S&P 500 which includes reinvested dividends.
COMMON STOCK: July 1, 1969; Standard & Poor's 500 Index (S&P 500e), which
includes reinvested dividends.
GLOBAL: August 31, 1987; Morgan Stanley Capital International World Index (MSCI
World).
INTERNATIONAL: April 3, 1995; Morgan Stanley Capital International Europe,
Australia, Far East Index (MSCI EAFE) (To be offered under RIA on or about
September 1, 1995.)
AGGRESSIVE STOCK: May 1, 1969; 50% S&P 500 and 50% National Association of
Securities Dealers Automated Quotation System Composite (50% S&P 500/50%
NASDAQ).
CONSERVATIVE INVESTORS: October 2, 1989; 70% Lehman Treasury Bond Composite
Index and 30% S&P 500 (70% Lehman Treas./30% S&P 500).
BALANCED: June 25, 1979; 50% S&P 500 and 50% Lehman Government/Corporate Bond
Index (50% S&P 500/50% Lehman Corp.).
GROWTH INVESTORS: October 2, 1989; 30% Lehman Government/Corporate Bond Index
and 70% S&P 500 (30% Lehman Treas./70% S&P 500).
The Lipper Mutual Funds Survey (LIPPER) records the performance of over 7,000
mutual funds. According to Lipper Analytical Services, Inc., the data are
presented net of investment management fees, direct operating expenses, and, for
funds with Rule 12b-1 plans, asset-based sales charges. Lipper data provide a
more accurate picture of RIA performance relative to that of other mutual funds
underlying retirement plan products than the market indices.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends. Cumulative rates of return
reflect performance over a stated period of time. Annualized rates of return
represent the annual rate of growth that would have produced the same cumulative
return, if performance had been constant over the entire period.
The performance of the Funds does not represent the actual experience of a
particular participating employer plan; the amount and timing of contributions
affects individual performance, as do Fund expenses. For a discussion of charges
and fees and how they are deducted from a RIA plan, see PART II -- CHARGES AND
FEES.
PAST PERFORMANCE IS NOT A GUARANTEE OR INDICATION OF FUTURE RESULTS. NO
PROVISIONS HAVE BEEN MADE FOR THE EFFECT OF TAXES ON INCOME AND GAINS OR UPON
DISTRIBUTION.
22
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
ANNUALIZED RATES OF RETURN FOR PERIODS ENDING DECEMBER 31, 1994:
- -----------------------------------------------------------------------------------------------------------------------------
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION
------ ------- ------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET 3.96% 3.46% 4.92% 6.21% -- 7.49%
Lipper VA Money Market 2.62 2.15 3.56 4.94 -- 5.94
3-Month T-Bill 4.22 3.63 4.90 5.98 -- 6.75
INTERMEDIATE GOVERNMENT
SECURITIES (4.42) 3.69 -- -- -- 6.11
Lipper VA U.S. Government (4.94) 2.87 -- -- -- 5.57
Lehman Intermediate Government (1.75) 4.36 -- -- -- 6.55
BOND (2.03) 4.29 6.96 8.81 -- 10.60
Lipper Intermediate
Government Funds Average (3.72) 3.51 6.48 8.22 -- 8.79
Lehman Intermediate GC (1.93) 4.57 7.42 9.07 -- 10.93
QUALITY BOND (5.15) -- -- -- -- (4.54)
Lipper VA Corporate Bond A-Rated (5.64) -- -- -- -- (4.82)
Lehman Aggregate (2.92) -- -- -- -- (2.30)
HIGH YIELD (2.83) 10.32 10.55 -- -- 8.99
Lipper VA High Yield (4.23) 9.45 10.59 -- -- 8.07
Master High Yield (1.16) 11.03 11.99 -- -- 10.24
GROWTH & INCOME (0.62) -- -- -- -- (0.71)
Lipper VA Growth & Income (1.62) -- -- -- -- 0.03
75% S&P 500/25% Value Line Conv. 0.01 -- -- -- -- 1.84
EQUITY INDEX* -- -- -- -- -- 1.04
Lipper VA S&P Index Funds* -- -- -- -- -- (0.54)
S&P 500* -- -- -- -- -- 1.28
COMMON STOCK (1.94) 5.94 9.89 15.72 15.69% 12.33
Lipper Growth Funds Avg. (2.15) 5.64 8.88 12.99 16.05 10.42
S&P 500e 1.32 6.25 8.68 14.38 14.58 10.55
GLOBAL 5.18 11.37 11.09 -- -- 10.34
Lipper VA Global (2.40) 7.58 4.57 -- -- 3.52
MSCI World 5.08 6.85 3.67 -- -- 4.97
AGGRESSIVE STOCK (4.24) 2.28 16.87 14.36 17.46 9.97
Lipper Small Company Growth Funds
Avg. (0.73) 9.93 12.29 14.00 17.11 9.17
50% S&P 500/50% NASDAQ (0.94) 7.46 9.65 13.14 14.06 N/A
THE BLENDED FUNDS:
CONSERVATIVE INVESTORS (4.15) 3.91 7.41 -- -- 7.67
Lipper VA Income (3.13) 5.30 7.67 -- -- 7.77
70% Lehman Treas./30% S&P 500 (1.97) 5.14 7.85 -- -- 8.11
BALANCED (8.43) 0.05 7.04 10.89 -- 13.68
Lipper Balanced Portfolio (2.52) 5.27 7.87 11.70 -- 12.65
50% S&P 500/50% Lehman Govt./Corp. (1.09) 5.55 8.20 12.31 -- 12.62
GROWTH INVESTORS (3.19) 5.36 13.99 -- -- 14.14
Lipper VA Flexible Portfolio (3.65) 4.46 7.01 -- -- 6.86
30% Lehman Corp./70% S&P 500 (0.13) 5.83 8.39 -- -- 8.49
- ---------------
*Unannualized.
</TABLE>
23
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
CUMULATIVE RATES OF RETURN FOR PERIODS ENDING DECEMBER 31, 1994:
- ------------------------------------------------------------------------------------------------------------------------------------
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION
------ ------- ------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET 3.96% 10.75% 27.16% 82.74% --% 164.60%
Lipper VA Money Market 2.62 6.60 19.12 62.02 -- 107.76
3-Month T-Bill 4.22 11.29 26.99 78.68 -- 128.84
INTERMEDIATE GOVERNMENT (4.42) 11.49 -- -- -- 24.91
Lipper VA U.S. Government (4.94) 8.85 -- -- -- 22.56
Lehman Intermediate Government (1.75) 13.65 -- -- -- 26.89
BOND (2.03) 13.44 39.99 132.75 -- 296.65
Lipper Intermediate
Government Funds Average (3.72) 10.89 36.88 120.25 -- 216.45
Lehman Intermediate GC (1.93) 14.34 43.06 138.26 -- 313.48
QUALITY BOND (5.15) -- -- -- -- (5.64)
Lipper VA Corporate Bond A-Rated (5.64) -- -- -- -- (5.99)
Lehman Aggregate (2.92) -- -- -- -- (2.86)
HIGH YIELD (2.83) 34.25 65.10 -- -- 99.07
Lipper VA High Yield (4.23) 31.12 65.43 -- -- 86.07
Master High Yield (1.16) 36.87 76.16 -- -- 118.08
GROWTH & INCOME (0.62) -- -- -- -- (0.89)
Lipper VA Growth & Income (1.62) -- -- -- -- 0.04
75% S&P 500/25% Value Line Conv. 0.01 -- -- -- -- 2.30
EQUITY INDEX -- -- -- -- -- 1.04
Lipper VA S&P Index Funds -- -- -- -- -- (0.54)
S&P 500 -- -- -- -- -- 1.28
COMMON STOCK (1.94) 18.92 60.26 330.61 1,744.91 1,838.12
Lipper Growth (2.15) 17.90 53.00 239.11 1,862.91 1,161.74
S&P 500 1.32 19.95 51.64 283.20 1,421.23 1,192.08
GLOBAL 5.18 38.12 69.22 -- -- 106.01
Lipper VA Global (2.40) 24.49 25.04 -- -- 29.26
MSCI World 5.08 21.99 19.74 -- -- 42.79
AGGRESSIVE STOCK (4.24) 6.99 117.99 282.53 2,400.03 1,045.95
Lipper Small Company Growth Funds
Avg. (0.73) 32.86 78.56 270.59 2,255.15 851.16
50% S&P 500/50% NASDAQ (0.94) 24.10 58.49 243.61 1,289.14 N/A
THE BLENDED FUNDS:
CONSERVATIVE INVESTORS (4.15) 12.21 42.95 -- -- 47.35
Lipper VA Income (3.13) 16.75 44.72 -- -- 48.12
70% Lehman Treas./30% S&P 500 (1.97) 16.24 45.93 -- -- 50.68
BALANCED (8.43) 0.14 40.50 181.02 -- 631.02
Lipper Balanced Portfolio (2.52) 16.66 46.03 202.40 -- 533.72
50% S&P 500/50% Lehman Govt./Corp. (1.09) 17.61 48.29 219.37 -- 533.60
GROWTH INVESTORS (3.19) 16.97 92.48 -- -- 100.15
Lipper VA Flexible Portfolio (3.65) 14.00 40.35 -- -- 41.66
30% Lehman Corp./70% S&P 500 (0.13) 18.54 49.63 -- -- 53.39
</TABLE>
YEAR-BY-YEAR RATES OF RETURN
INTERMEDIATE
MONEY GOVERNMENT QUALITY HIGH
MARKET SECURITIES BOND BOND YIELD
------ ----------- ---- ------- -----
1985 8.11% -- % 19.53% -- % -- %
1986 6.55 -- 13.79 -- --
1987 6.58 -- 1.58 -- 4.62*
1988 7.27 -- 6.21 -- 9.68
1989 9.13 -- 13.29 -- 5.08
1990 8.19 -- 7.82 -- -1.15
1991 6.13 12.03* 14.45 -- 24.40
1992 3.48 5.54 6.03 -- 12.26
1993 2.94 10.52 9.21 -0.52* 23.08
1994 3.96 -4.42 -2.03 -5.15 -2.83
*Unannualized
<TABLE>
<CAPTION>
YEAR-BY-YEAR RATES OF RETURN
GROWTH
& EQUITY COMMON AGGRESSIVE CONSERVATIVE GROWTH
INCOME INDEX STOCK GLOBAL STOCK INVESTORS BALANCED INVESTORS
------- ------- ------ ------ ---------- ------------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1985 -- % -- % 32.06% -- % 18.07% -- % 25.27% -- %
1986 -- -- 13.81 -- 1.61 -- 16.19 --
1987 -- -- 5.67 -13.28* -2.36 -- -5.34 --
1988 -- -- 16.94 10.83 1.94 -- 14.78 --
1989 -- -- 44.68 26.67 46.97 3.08* 26.48 3.98*
1990 -- -- -11.35 -6.11 8.85 6.35 -0.65 10.56
1991 -- -- 52.03 30.49 87.18 19.79 41.23 48.84
1992 -- -- 1.22 -0.56 -3.01 5.74 -2.83 4.88
1993 -0.27* -- 19.81 32.06 15.19 10.71 12.54 15.20
1994 -0.62 1.04* -1.94 5.18 -4.24 -4.15 -8.43 -3.19
<FN>
*Unannualized
</FN>
</TABLE>
24
<PAGE>
- --------------------------------------------------------------------------------
PART IV -- THE GUARANTEED INTEREST ACCOUNT
- --------------------------------------------------------------------------------
GENERAL
Contributions allocated to the Guaranteed Interest Account become part of our
general account, which supports all of our insurance and annuity guarantees and
our general obligations. Our general account, as part of our insurance and
annuity operations, is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulation of
all jurisdictions in which we are authorized to do business, as discussed in
PART VI -- MISCELLANEOUS MATTERS. Because of applicable exemptive and
exclusionary provisions, interests in our general account have not been
registered under the Securities Act of 1933 nor is the general account an
investment company under the 1940 Act. Accordingly, neither our general account
nor any interests in our general account are subject to regulation under the
Securities Act of 1933 or 1940 Act, and we have been advised that the staff of
the SEC has not made a review of the information which is included in this
prospectus or in the SAI relating to our general account and the Guaranteed
Interest Account. These disclosures, 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.
THE GUARANTEES
The Guaranteed Interest Account provides an investment option in which the value
of the principal will not fluctuate. The amount allocated to the Guaranteed
Interest Account earns interest at the current guaranteed interest rate which is
an annual effective rate. After interest is credited, certain charges and fees
are deducted. The value of an employer plan's investment in the Guaranteed
Interest Account is, at any time, the total contributions allocated to the
Guaranteed Interest Account, PLUS the interest earned, LESS (i) employer plan
benefit payments, (ii) other employer plan withdrawals (including loans) and
(iii) charges and fees provided for under the Contracts.
Interest is credited through and allocated on the Transaction Date of any
transfer or withdrawal request. Interest is credited for each day of the month
on the amount maintained for the employer plan at the beginning of the day at a
daily rate equivalent to the guaranteed interest rate applicable to the employer
plan. The annual effective rate does not reflect deductions of fees and
expenses.
CURRENT AND MINIMUM INTEREST RATES
Except as described below, the "current" rate is the rate of interest that we
actually credit to amounts in the Guaranteed Interest Account for a given
calendar year. Current rates are declared for each class of employer plans
before the beginning of each calendar year. In addition to the current rate, we
declare "minimum" rates for the next two calendar years. The minimum interest
rates will never be lower than 4%. In general, we expect to declare current
rates in any year greater than the previously declared minimum rates for that
year. If the employer plan is permitted to invest in the Bond Fund, we may at
times have the right to declare a lower "current" rate of interest (REVISED
RATE) which will be applicable for the remainder of the calendar year only to
new amounts contributed or transferred by the employer plan to the Guaranteed
Interest Account. See PART V--PROVISIONS OF RIA AND RETIREMENT BENEFITS --
SPECIAL RULES APPLICABLE TO PLANS THAT MAY INVEST IN THE BOND FUND, for
circumstances in which a revised rate might be declared. Such revised rate will
reflect market interest rates for money market instruments and other short-term
investments existing at the time any such amount is contributed or transferred
to the Guaranteed Interest Account without regard to any previously declared
minimum rate.
THE CURRENT RATE OF INTEREST FOR 1995 AND THE 1996 AND 1997 MINIMUM RATES OF
INTEREST GUARANTEED FOR EACH CLASS ARE STATED IN THE PROPOSAL DOCUMENTS
SUBMITTED TO SPONSORS OF PROSPECTIVE RIA EMPLOYER PLANS. The establishment of
new classes will not decrease the rates applicable to employer plans already
assigned to a previous class. The effective current rate for 1996 and the
minimum rates effective for calendar years 1997 and 1998 will be declared in
December 1995.
CLASSES OF EMPLOYER PLANS
We assign an employer plan to a "class" of employer plans upon its participation
in the Master Retirement Trust in order to facilitate the determination of
current and minimum guaranteed rates of interest that are applicable for that
employer plan participating in our Guaranteed Interest Account. The initial
class of employer plans to which an employer plan is assigned will depend on the
adoption effective date.
However, we reserve the right to, at any time during a calendar year, (1) close
a class and begin a new class for employer plans adopting the Master Retirement
Trust during the balance of the calendar year or (2) combine two or more classes
of employer plans. When we begin a new class of employer plans or combine two or
more classes of employer plans we will not decrease the "current" or "minimum"
guaranteed rates of interest for a class once those rates have been declared.
CHARGES AND FEES
The ongoing operations fee, contingent withdrawal charge, loan fee, PRS charge,
annuity benefit charge and the charge for applicable state taxes discussed in
PART II -- CHARGES AND FEES apply to employer plan balances maintained in the
Guaranteed Interest Account. The loan fee is applied on the Transaction Date
that the loan amount is paid out of the Guaranteed Interest Account.
DEFERRED PAYOUT PROVISION
With respect to trustee-directed employer plans which are terminating their RIA
Contract, there is a deferred payout provision. Under that provision, we can
defer payment of
25
<PAGE>
the employer plan balance held in the Guaranteed Interest
Account less the contingent withdrawal charge by paying out the balance in six
installments over five years. During the deferred payout period, the balances
upon which we defer payment continue to earn the current interest rate declared
for each year. The ongoing operations fee continues to be deducted monthly from
the balance during the deferred payout period.
When the deferred payout provision is imposed, any trustee-directed employer
plan benefits becoming due during the deferred payout period will not be paid
from the employer plan balance in the Guaranteed Interest Account but, if
sufficient funds are available, would be paid from the new funding vehicle for
the trustee-directed employer plan. Participant-directed employer plans are not
subject to the deferred payout provision.
26
<PAGE>
<TABLE>
<CAPTION>
ILLUSTRATION OF DEFERRED PAYOUT PROVISION
- ------------------------------------------------------------------------------------------------------------------------------------
Transaction End of End of End of End of End of
Date Year 1 Year 2 Year 3 Year 4 Year 5
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Guaranteed
Interest
Account
Plan Assets
- - Withdrawal Charge
- -------------------
Distribution
Amount 1
- ----------------
Dist. Amt. 1
- ---------------
6
= 1st Payment
Dist. Amount 1
- - 1st payment
- -------------
Balance 1 -------] Balance 1
+ Interest
- Operations
Fee
---------------
Distribution
Amount 2
Dist. Amt.2
---------------
5
= 2nd Payment
Dist. Amount 2
- 2nd payment
--------------
Balance 2 -------------]Balance 2
+ Interest
- Operations
Fee
--------------
Distribution
Amount 3
Dist. Amt.3
---------------
4
= 3rd Payment
Dist. Amount 3
- 3rd payment
--------------
Balance 3 ----------]Balance 3
+ Interest
- Operations
Fee
------------
Distribution
Amount 4
Dist. Amt.4
---------------
3
= 4th Payment
Dist. Amount 4
- 4th payment
--------------
Balance 4 ----------]Balance 4
+ Interest
- Operations
Fee
--------------
Distribution
Amount 5
Dist. Amt.5
------------
2
= 5th Payment
Dist. Amount 5
- 5th payment
--------------
Balance 5 -------]Balance 5
+ Interest
- Operations
Fee
------------
Final
Distribution
27
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
PART V -- PROVISIONS OF RIA AND RETIREMENT BENEFITS
- --------------------------------------------------------------------------------
CONTRIBUTIONS; FREQUENCY AND AMOUNT
When RIA is utilized as the exclusive investment funding vehicle for the assets
of an employer plan, the annual aggregate amount of contributions must be at
least $10,000 (EXCLUSIVE FUNDING EMPLOYER PLAN).
In our sole discretion, RIA may also be utilized as a partial investment funding
vehicle for employer plans. In such cases, the aggregate amount of contributions
in the initial participation year must be at least $50,000 and the annual
aggregate amount of contributions thereafter must be at least $25,000 (PARTIAL
FUNDING EMPLOYER PLANS). There is no required minimum for the amount of each
contribution where employer plan contributions are made on a basis more frequent
than annually. The total amount of contributions under an employer plan is
limited by law. See PART VII -- TAX CONSIDERATIONS.
ROLLOVER OR TRANSFER FROM A PLAN
An employer can change the funding of an existing plan to use RIA.
Before making a change, the following should be carefully considered:
o The comparative costs and benefits under existing funding arrangements and
under RIA; and
o The amendments or changes that may have to be made in the plan if funds are
transferred.
To make a rollover or transfer to RIA, funds must be in cash. Therefore, any
assets accumulated under an existing plan will have to be liquidated for cash.
SELECTING INVESTMENT OPTIONS
An employer can elect to fund the employer plan with any number of the
Investment Options available under the Contracts. Generally, for
participant-directed plans, if the employer elects to fund the employer plan by
selecting any of the Intermediate Government Securities, Quality Bond, High
Yield or Conservative Investors Funds and intends for the employer plan to
comply with the requirements of ERISA Section 404(c), the employer should also
select the Money Market Fund. If the employer intends for the employer plan to
comply with ERISA Section 404(c) and none of the Money Market, Intermediate
Government Securities, Quality Bond, High Yield or Conservative Investors Funds
is selected, the employer should elect the Guaranteed Interest Account as a
funding option. If the employer selects any of the Money Market, Bond,
Intermediate Government Securities, Quality Bond, High Yield or Conservative
Investors Funds and the Guaranteed Interest Account, certain restrictions will
apply to transfers out of the Guaranteed Interest Account. The Bond Fund is
available only to employer plans that signed an Agreement to participate in that
Fund prior to June 1, 1994, and special transfer rules apply for these employer
plans. See SPECIAL RULES APPLICABLE TO PLANS THAT MAY INVEST IN THE BOND FUND in
this Section. If the Employer adds any of the Investment Funds of Separate
Account No. 51, the Bond Fund will no longer be subject to any transfer
restrictions. However, transfers out of the Guaranteed Interest Account will be
subject to certain restrictions. See TRANSFER PROVISIONS in this Section.
ALLOCATION CHOICES
Contributions may be allocated to the Investment Options by dollar amounts or in
any whole number percentages that total 100% in accordance with the allocation
instructions on file.
In addition to our rules, allocation changes may be subject to employer plan
provisions which may limit or disallow such movements. Allocation changes may be
made without charge.
EXCEPT AS PROVIDED BELOW IN CONNECTION WITH TRUSTEE-DIRECTED PLANS, AMOUNTS TO
BE ALLOCATED TO AN INVESTMENT OPTION TO EFFECTUATE PERMITTED CONTRIBUTION
ALLOCATION CHANGES WILL BE EFFECTIVE ON THE TRANSACTION DATE.
For allocations to the Guaranteed Interest Account in connection with
trustee-directed plans, any proposed change in an employer plan's contribution
allocation must be provided to us by written notice at least 60 days before the
effective date of the proposed change.
TRANSFER PROVISIONS
Transfers of accumulated amounts among the Investment Options will be permitted
at any time and in any amount, subject to the transfer limitations described in
this section. In addition to our rules, transfers among the Investment Options
may be subject to employer plan provisions which may limit or disallow such
movements. Transfers among the Investment Options may be made without charge.
Under certain situations, amounts transferred out of the Guaranteed Interest
Account during the calendar quarter in which the request is made and the three
preceding calendar quarters (TRANSFER PERIOD) are subject to a transfer
limitation described in this section.
PARTICIPANT-DIRECTED EMPLOYER PLANS THAT HAVE ELECTED THE PRS: If the employer
elects to fund the employer plan with the Guaranteed Interest Account and the
Money Market, Bond, Intermediate Government Securities, Quality Bond, High Yield
or Conservative Investors Funds, during any transfer period, the maximum amount
that may be transferred by a participant from the Guaranteed Interest Account is
equal to the greater of: (i) 25% of the amount the participant had in the
Guaranteed Interest Account as of the last calendar day of the prior calendar
year and (ii) the total of all amounts the participant transferred out of the
Guaranteed Interest Account during the prior calendar year. Generally, this
means that new participants will not be able to transfer amounts out of the
Guaranteed Interest Account during the first calendar year of their
participation under the Contract.
If assets have been transferred from another funding vehicle by the Employer,
the participant, for the remainder of that calendar year, may transfer to the
Funds up to 25% of
28
<PAGE>
such transferred amount that the participant initially allocated to the
Guaranteed Interest Account.
PARTICIPANT-DIRECTED EMPLOYER PLANS THAT HAVE NOT ELECTED THE PRS: If the
employer elects to fund the employer plan with the Guaranteed Interest Account
and the Money Market, Bond, Intermediate Government Securities, Quality Bond,
High Yield or Conservative Investors Funds, during any transfer period the
maximum amount that may be transferred from the Guaranteed Interest Account is
equal to the greater of: (i) 25% of the amount the employer plan had in the
Guaranteed Interest Account as of the last calendar day of the prior calendar
year and (ii) the total of all amounts the employer plan transferred out of the
Guaranteed Interest Account during the prior calendar year. The employer plan is
responsible for monitoring this transfer limitation.
If assets have been transferred from another funding vehicle by the Employer,
the trustee on behalf of the participant, for the remainder of that calendar
year, may transfer to the Funds up to 25% of such transferred amount that was
initially allocated to the Guaranteed Interest Account.
TRUSTEE-DIRECTED PLANS: Transfers of accumulated amounts among the Investment
Options will be permitted as determined by us in our sole discretion only.
If assets have been transferred from another funding vehicle by the Employer,
the plan trustee, for the remainder of that calendar year may transfer to an
Investment Option up to 25% of such transferred amount that was initially
allocated to the Guaranteed Interest Account.
SPECIAL RULES APPLICABLE TO PLANS
THAT MAY INVEST IN THE BOND FUND
The Bond Fund is available only to Participant-directed employer plans that
signed an agreement to participate in that Fund prior to June 1, 1994. Special
transfer rules, described below, apply to these employer plans when none of the
Investment Funds of Separate Account No. 51 is available (OLD EMPLOYER PLANS).
If the Employer for an old employer plan adds any of the Investment Funds of
Separate Account No. 51, the Bond Fund will no longer be subject to any transfer
restrictions. However, transfers out the Guaranteed Interest Account will be
subject to certain restrictions. See TRANSFER PROVISIONS in this Section.
TRANSFERS TO THE BOND FUND: Except as described below, a plan participant in an
old employer plan may elect to transfer to the Bond Fund any whole percentage up
to and including 100% of the amounts arising from participant-directed
contributions that are held on behalf of the plan participant under any other
Investment Option. Requests to transfer amounts to the Bond Fund will be
processed only if, on the Transaction Date with respect to such transfer, the
current guaranteed interest rate with respect to the employer plan's Guaranteed
Interest Account is higher than the then-current benchmark treasury rate.
A BENCHMARK TREASURY RATE will be determined on the Business Day coinciding with
or last preceding the 10th day of each month and will be applicable to transfer
requests with Transaction Dates that occur on or after the 16th day of the month
but before the 16th day of the immediately following month. The BENCHMARK
TREASURY RATE will be equal to the Five Year Constant Maturity rate (as
published in Federal Reserve Statistical Release H.15) for the Business Day on
which the rate is determined. The benchmark treasury rate can also be obtained
via a daily tape recording which can be accessed by calling the RIA Service
Office at 1-800-967-4560.
If we receive a request for a transfer of amounts into the Bond Fund that would
occur on a Transaction Date on which such a transfer is not permitted, we will
not process the transfer and will so notify the Employer within four Business
Days. We will not redirect the transfer to another Investment Option and will
not maintain any record of such request for future processing.
TRANSFERS FROM THE BOND FUND: Except as described below, a plan participant in
an old employer plan may elect to transfer any whole percentage (up to and
including 100%) of the amounts held in the Bond Fund on behalf of such
participant to one, or any combination, of the other Investment Options.
RESTRICTIONS AFFECTING THE GUARANTEED INTEREST ACCOUNT: We reserve the right to
declare a lower revised interest rate (see PART IV -- THE GUARANTEED INTEREST
ACCOUNT -- CURRENT AND MINIMUM INTEREST RATES) applicable only to new
contributions and transfers (ALLOCATIONS) being made to the Guaranteed Interest
Account from any Fund available under the employer plan, if all of the following
conditions exist:
- -- on the Transaction Date with respect to the allocation, the aggregate
amount held in the Bond Fund with respect to all employer plans comprising
Equitable Life's Small Pension book of business is at least 10% of the
aggregate amount then held under all the contracts which fund those plans;
- -- on the Transaction Date with respect to the allocation, the otherwise
applicable "current" guaranteed interest rate with respect to the employer
plan's Guaranteed Interest Account exceeds the benchmark treasury rate by
at least 0.75%; and
- -- prior allocations to the Guaranteed Interest Account for the employer plan
during that calendar year equal or exceed 110% of the average annual
allocations to the Guaranteed Interest Account for the employer plan during
the three immediately preceding calendar years.
If we declare a revised rate the employer or plan trustee may, by written
notice, withdraw all or part of the amount that would be credited with such
lower revised rate, without deduction of the contingent withdrawal charge. The
investment, for the remainder of the calendar year, of such withdrawn or
returned amounts in a funding vehicle other than RIA shall not be considered a
violation of an employer plan's exclusive funding obligation provided such
amount is contributed to RIA at the beginning of the following calendar year.
LOAN PROVISION
Loans to plan trustees on behalf of participants are permitted in our RIA
program. It is the plan administrator's responsibility to administer the loan
program. See PART VII -- TAX AND ERISA CONSIDERATIONS.
The following are important features of the RIA loan provision.
o A loan will be permitted only from the Guaranteed Interest Account. If the
amount requested to be borrowed plus the loan fee and loan reserve we
discuss below is more than the amount available in the Guaranteed Interest
Account for the loan transaction, the employer can move the additional
amounts necessary from one or more Funds to the Guaranteed Interest Account.
29
<PAGE>
o The plan administrator determines the interest rate, the maximum term and
all other terms and conditions of the loan.
o Repayment of loan principal and interest can be made only to the Guaranteed
Interest Account. The employer must identify the portion of the repayment
amount which is principal and which is interest.
o Upon repayment of a loan amount, any repayment of loan principal and loan
reserve (see below) taken from one or more Funds for loan purposes may be
moved back to a Fund.
o We charge a loan fee in an amount equal to 1% of the loan principal amount
on the Transaction Date a loan is made. The Contingent Withdrawal Charge
will be applied to any unpaid principal, as if the amount had been withdrawn
on the day the principal payment was due. See PART II -- CHARGES AND FEES.
o The minimum amount of a loan for a participant is $1,000, and the maximum
amount is 90% of the balances in all the Investment Options for a
participant. An employer plan, the Code and the Department of Labor (DOL)
(as described in PART VII -- TAX AND ERISA CONSIDERATIONS) may impose
additional conditions or restrictions on loan transactions.
o On the Transaction Date a loan is made, we create a loan reserve account in
the Guaranteed Interest Account in an amount equal to 10% of the loan
amount. The 10% loan reserve is intended to cover (1) the ongoing operations
fee applicable to amounts borrowed, (2) the possibility of our having to
deduct applicable contingent withdrawal charges (see PART II -- CHARGES AND
FEES) and (3) the deduction of any other withholdings, if required. The loan
amount will not earn any interest under the Contracts while the loan is
outstanding. The amount of the loan reserve will continue to earn interest
at the Guaranteed Interest Account rate applicable for the employer plan.
o The ongoing operations fee will apply to the sum of the Investment Option
balances (including the loan reserve) plus any unpaid loan principal. If the
employer plan is terminated or any amount is withdrawn, or if any withdrawal
from RIA results in the reduction of the 10% loan reserve amount in the
Guaranteed Interest Account, during the time a loan is outstanding, the
contingent withdrawal charge will be applied to any principal loan balances
outstanding as well as to any employer plan balances (including the loan
reserve) in the Investment Options. See PART II -- CHARGES AND FEES.
BENEFIT PAYMENTS GENERAL
Subject to the provisions of an employer plan, proceeds for the participant may
be applied to any one of the following benefit choices offered by RIA:
o purchase of one of our annuities;
o lump sum distribution;
o use of part of the proceeds to purchase one of our annuities with the
balance to be paid as a lump sum; or
o permitted cash withdrawal.
The amount used to purchase any one form of annuity under the Contracts, net of
all applicable charges and fees, must be at least $3,500. See PART II -- CHARGES
AND FEES -- CONTINGENT WITHDRAWAL CHARGE.
We require that the amount of any benefit distribution from an employer plan
that uses RIA as a partial investment funding vehicle be in proportion to the
amount of plan assets held in RIA unless some other method is specifically
agreed upon in writing between Equitable and the trustees of the employer plan.
CASH DISTRIBUTIONS
Requests for cash distributions must be made to us on an aggregate as opposed to
a participant-by-participant basis, except for employer plans using the PRS. See
PART VIII -- PARTICIPANT RECORDKEEPING SERVICES (OPTIONAL). Distribution checks
are made payable to the trustees of the plan. The plan trustees are responsible
for distribution of funds to the participant or other payee and for any
applicable Federal and state income tax withholding and reporting. See PART VII
- -- TAX AND ERISA CONSIDERATIONS.
ANNUITY BENEFITS
Subject to the provisions of an employer plan, we have available under RIA the
following forms of fixed annuities.
o LIFE ANNUITY: An annuity which guarantees a lifetime income to the retired
employee-participant (ANNUITANT) and ends with the last monthly payment
before the annuitant's death. There is no death benefit associated with this
annuity form and it provides the highest monthly amount of any of the
guaranteed life annuity forms. If this form of annuity is selected, it is
possible that only one payment will be made if the annuitant dies after that
payment.
o LIFE ANNUITY-PERIOD CERTAIN: This annuity form guarantees a lifetime income
to the annuitant and, if the annuitant dies during a previously selected
minimum payment period, continuation of payments to a designated beneficiary
for the balance of the period. The minimum period is usually 5, 10, 15 or 20
years.
o LIFE ANNUITY-REFUND CERTAIN: This annuity form guarantees a lifetime income
to the annuitant and, if the annuitant dies before the initial single
premium has been recovered, payments will continue to a designated
beneficiary until the single premium has been recovered. If no beneficiary
survives the annuitant, the refund will be paid in one lump sum to the
estate.
o PERIOD CERTAIN ANNUITY: Instead of guaranteed lifetime income, this annuity
form provides for payments to the annuitant over a specified period, usually
5, 10, 15 or 20 years, with payments continuing to the designated
beneficiary for the balance of the period if the annuitant dies before the
period expires.
o QUALIFIED JOINT AND SURVIVOR LIFE ANNUITY: This annuity form guarantees
lifetime income to the annuitant, and, after the annuitant's death, the
continuation of income to the surviving spouse. Generally, unless a married
annuitant elects otherwise with the written consent of his spouse, this will
be the form of annuity payment. If this form of annuity is selected, it is
possible that only one payment will be made if both the annuitant and the
spouse die after that payment.
All of the forms outlined above (with the exception of Qualified Joint and
Survivor Life Annuity) are available as either Single or Joint life annuities.
We offer other forms not outlined here. Your Agent can provide details.
AMOUNT OF FIXED ANNUITY PAYMENTS
Our forms of a fixed annuity provide monthly payments of specified amounts.
Fixed annuity payments, once begun,
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<PAGE>
will not change. The size of payments will depend on the form of annuity that is
chosen, our annuity rate tables in effect when the first payment is made, and,
in the case of a life income annuity, on the annuitant's age. The tables in our
Contracts show monthly payments for each $1,000 of proceeds applied under an
annuity. If our annuity rates in effect on the annuitant's retirement date would
yield a larger payment, those current rates will apply instead of the tables.
Our annuity rate tables are designed to determine the amounts required for the
annuity benefits elected and for administrative and investment expenses and
mortality and expense risks. Under our Contracts we can change the annuity rate
tables every five years. Such changes would not affect annuity payments being
made.
PAYMENT OF ANNUITY
Amounts in the Funds to be applied to retirement benefits are made available by
the redemption of Units. The proceeds, plus any amounts in the Guaranteed
Interest Account, less a $175 ADMINISTRATIVE CHARGE and PREMIUM TAX CHARGE, if
applicable, are applied to purchase the form of distribution selected.
ASSIGNMENT AND ALIENATION
The employer plan balances and rights under RIA cannot be assigned, sold,
alienated, discounted or pledged as collateral for a loan or other obligation to
any party (this reference to a loan does not apply to a loan discussed above
under -- LOAN PROVISION), except to the extent allowed by law for a Qualified
Domestic Relations Order (QDRO), as that term is defined in the Code.
CREDITORS' CLAIMS
Proceeds payable under our Contracts cannot be assigned or encumbered by the
payee.
All proceeds under our Contracts will be paid free from the claims of creditors
to the extent allowed by law.
WHEN WE PAY PROCEEDS
Application of proceeds to an annuity and payments or withdrawals out of the
Investment Options ordinarily will be made promptly after the Transaction Date.
However, we can defer payments, applications and withdrawals from the Funds for
any period during which the New York Stock Exchange is closed for trading, sales
of securities are restricted or determination of the fair market value of assets
of the Funds is not reasonably practicable because of an emergency. We may also
defer withdrawals from the Funds for up to 60 days and pay any withdrawals from
the plan in installments in order to protect the interests of the other contract
holders in a Fund.
PERIODIC REPORTS
We send the employer a report each quarter that shows transactions in the
Investment Options during the quarter for the employer plan, the number of Units
in the Funds credited to the employer plan, the Unit values and the balances in
all of the Investment Options as of the end of the quarter.
The employer will also receive an annual report and a semi-annual report
containing financial statements of the Funds and a list of the Funds' or Trust's
portfolio securities.
The employer automatically receives a confirmation notice following the
processing of a financial Investment Option transaction.
IF A PLAN FAILS TO QUALIFY
If an employer plan fails to maintain its qualification under the Code, we can
terminate the employer plan's participation under RIA. If we terminate the
employer plan's participation under RIA, we will withdraw the employer plan
balances from the Investment Options, less applicable charges and fees and any
outstanding loan balances, and pay the amounts to the trustees of the plan.
MODIFICATION OR CONTRACT
DISCONTINUANCE/TERMINATION
The Contracts are group annuity contracts which may be modified between us and
United States Trust Company under the Master Retirement Trust agreement and, by
such agreement, have been amended from time to time. However, no change to the
Contracts can reduce annuities in the course of payment.
The trustee under the Master Retirement Trust agreement at any time upon notice
to us may resign and we may appoint a successor trustee.
We can discontinue offering RIA at any time. Discontinuance of RIA would not
affect annuities in the course of payment, but no further contributions would be
accepted by us. The employer may elect to maintain Investment Options balances
with us to provide annuity benefits in accordance with the terms of the
Contracts. The employer may elect to discontinue the participation of the
employer plan in RIA at any time upon advance written notice to us. WE MAY
ELECT, UPON WRITTEN NOTICE TO THE EMPLOYER, TO DISCONTINUE THE PARTICIPATION OF
THE EMPLOYER PLAN IN RIA IF (1) THE EMPLOYER FAILS TO COMPLY WITH ANY TERMS OF
THE MASTER RETIREMENT TRUST, (2) THE EMPLOYER FAILS TO MAKE THE REQUIRED MINIMUM
CONTRIBUTIONS, (3) AS MAY BE AGREED UPON IN WRITING BETWEEN EQUITABLE LIFE AND
THE EMPLOYER IF THE PLAN FAILS TO MAINTAIN MINIMUM AMOUNTS OF FUNDS INVESTED IN
RIA, OR (4) THE EMPLOYER FAILS TO COMPLY WITH ANY REPRESENTATIONS AND WARRANTIES
MADE BY THE EMPLOYER, TRUSTEES OR EMPLOYER PLAN TO EQUITABLE LIFE IN CONNECTION
WITH THE EMPLOYER PLAN'S PARTICIPATION IN RIA. See PART I -- RIA SUMMARY --
PARTICIPATION AND FUNDING REQUIREMENTS.
At any time on or after the participation of the employer in RIA has been
discontinued, we may withdraw the entire amount of the employer plan assets held
in the Investment Options, and pay them to the trustee of the employer plan,
subject to our right to defer payout of amounts held in the Guaranteed Interest
Account, less any applicable charges and fees and outstanding loan balances. See
PART II -- CHARGES AND FEES and PART IV -- THE GUARANTEED INTEREST ACCOUNT.
Reference is made to copies of the Contracts, as amended and modified, which
have been filed as an exhibit to our Registration Statement, as amended from
time to time, and which are incorporated by reference herein.
31
<PAGE>
- --------------------------------------------------------------------------------
PART VI -- MISCELLANEOUS MATTERS
- --------------------------------------------------------------------------------
HOW WE ARE REGULATED
We are regulated and supervised by the New York State Insurance Department. In
addition, we are subject to the insurance laws and regulations in all
jurisdictions where we are authorized to do business. We submit annual reports
on our operations and finances to insurance officials in these jurisdictions.
The officials review our reports to be sure we are financially sound and that we
are complying with applicable laws and regulations.
The Contracts have been approved by the New York State Insurance Department. Its
regulation and Contract approvals do not involve any supervision of the
investment policies of the Funds or the selection of investments except to
determine compliance with New York insurance laws.
We are also subject to various Federal securities laws and regulations. However,
this does not involve supervision by the SEC of us or of the management or
investment practices or policies of the Funds or the Trust portfolios.
We are registered with the SEC as a broker-dealer under the Securities Exchange
Act of 1934. We are also a member of the National Association of Securities
Dealers, Inc. (NASD). We offer RIA through our Agents who are licensed by state
insurance officials and, where necessary, qualified by the NASD.
COMMISSIONS AND SERVICE FEES
Our Agents who assist in establishing an employer plan in RIA and providing
necessary services (not including recordkeeping services) are entitled to
receive commissions and service fees from us, which are paid to Agents and are
not in addition to the fees and charges we describe under PART II -- CHARGES AND
FEES. Any service fees paid to Agents are contingent upon their providing
service satisfactory to us.
While the charges and fees we receive from a RIA employer plan initially may be
less than the commissions and service fees paid to Agents by us, it is expected
that over time those charges and fees will be adequate to cover all expenses.
CERTAIN RETIREMENT PLANS THAT USE RIA MAY ALLOW EMPLOYER PLAN ASSETS TO BE USED
IN PART TO BUY LIFE INSURANCE POLICIES RATHER THAN APPLYING ALL OF THE
CONTRIBUTIONS TO RIA. Our Agents will receive commissions on any such Equitable
Life life insurance policies at standard rates. These commissions are subject to
regulation by state law and are at rates higher than those applicable to
commissions payable for placing an employer plan under RIA.
COPIES OF THE MASTER RETIREMENT TRUST AGREEMENT
We give a copy of the Master Retirement Trust and participation agreement to the
employer before the participation agreement is signed. It is recommended that
the contents of the Master Retirement Trust and participation agreement be fully
understood before the participation agreement is signed. Consultation with
independent financial counsel or tax counsel regarding the suitability of the
Master Retirement Trust and participation agreement is advisable, as we are not
permitted to give such advice.
FIDUCIARIES
We are registered as an investment adviser under the Investment Advisers Act of
1940, and we acknowledge that we are an investment manager and a fiduciary, as
defined in ERISA, with respect to employer plan assets that are allocated to the
Bond, Balanced, Common Stock and Aggressive Stock Funds under RIA.
ACCEPTANCE
The employer or plan sponsor, as the case may be, is solely responsible for
determining whether RIA is a suitable funding vehicle and should, therefore,
carefully read the prospectus and installation materials before the
participation agreement is signed.
VOTING RIGHTS
No voting rights apply to any of the Separate Accounts or the Guaranteed
Interest Account. As legal owners of the shares of the Trust held in Separate
Account No. 51 which invests in the Trust, however, we have the right to vote on
certain matters. The Trust is not required to hold annual meetings of
shareholders and may elect not to do so. If a meeting of shareholders is held,
they may vote on such matters as election of directors and any other matters
requiring a vote by shareholders under the 1940 Act. Equitable Life will vote
the shares of the Trust allocated to the Investment Funds of Separate Account
No. 51 in accordance with instructions received from employers, participants or
trustees, as the case may be, in the respective Investment Funds of Separate
Account No. 51. Each participant for whom we maintain records and, in other
cases, the employer or trustee, will be allowed to instruct us on how to vote
shares of the Trust in proportion to their interest in the Investment Funds of
Separate Account No. 51 as of the record date for the shareholder meeting. If we
do not receive instructions in time from all shareholders, we will vote the
shares for which no instructions have been received in the same proportion as we
vote shares for which we have received instructions. If you invest in Separate
Account No. 51, you will receive periodic reports relating to the Trust and
proxy material together with a voting instruction form, in connection with
shareholder meetings.
Currently, we control the Trust. Trust shares are held by other separate
accounts of ours and by separate accounts of insurance companies affiliated and
unaffiliated with us. Shares held by these separate accounts will generally be
voted according to the instructions of the owners of insurance policies and
contracts funded through those separate accounts, thus diluting the effect of
your voting instructions.
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OUR RIGHTS
We reserve the right to take certain actions in connection with our operations
and the operations of the Funds as permitted by applicable law. If necessary, we
will seek approval by participants in RIA.
We have reserved all rights to our corporate name or any part of it. We may
allow our Funds and other entities to use our name but we may also withdraw this
right.
We may unilaterally amend or modify the Contracts or the Master Retirement Trust
without the consent of the employer or plan sponsor, as the case may be, in
order to keep the Contracts or the Master Retirement Trust in compliance with
law.
LEGAL PROCEEDINGS
We are engaged in various litigation. In our judgment, no litigation is of
material importance to our total assets.
EXPERTS
The financial statements as of December 31, 1994 and for each of the two years
in the period then ended included in the SAI for Separate Account Nos. 13, 10,
4, 3 and 51 and the condensed financial information for each of the two years in
the period ended December 31, 1994 included in this prospectus and the financial
statements as of December 31, 1994 and 1993 and for each of the two years in the
period ended December 31, 1994 included in the SAI for Equitable Life have been
so included in reliance on the report of Price Waterhouse LLP, independent
accountants, given on the authority of said firm as experts in auditing and
accounting.
The financial statements of Equitable Life for the year ended December 31, 1992
included in the SAI have been audited by Deloitte and Touche LLP, as stated in
their report, and have been so included in reliance on the report of Deloitte
and Touche LLP, independent accountants, given upon the authority of such firm
as experts in accounting and auditing.
WHERE TO GET ADDITIONAL INFORMATION
We have filed with the SEC a registration statement relating to the Units and
the offering described in this prospectus and augmented with the information in
the related SAI. The registration statement, which is required by the Securities
Act of 1933, contains additional information that is not required in this
prospectus or SAI under the rules and regulations of the SEC. Copies of the
registration statement may be obtained from the SEC's main office in Washington,
D.C. upon payment of the applicable fee.
CHANGES IN FUNDING VEHICLE
A qualified retirement plan may ordinarily change the means of funding
retirement benefits. Persons contemplating such a change in order to participate
in RIA should carefully consider the relative advantages and disadvantages of
such a change, including, in particular, comparative cost factors and benefits
available under RIA and under existing investing vehicles. Such a change may
affect only future contributions or may include the transfer of funds previously
contributed. If funds already invested are transferred to us, they will normally
be accepted only in cash, making necessary liquidation of the assets accumulated
under the existing funding media. If a transfer is contemplated, it may be
advisable to study the terms of the existing funding vehicle for the employer
plan, with special reference to any liquidation charges or termination costs
that may be incurred.
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PART VII -- TAX AND ERISA CONSIDERATIONS
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Employer retirement plans that may qualify for tax-favored treatment are
governed by the provisions of the Internal Revenue Code (CODE) and the Employee
Retirement Income Security Act (ERISA). The Code is administered by the Internal
Revenue Service (IRS). ERISA is administered primarily by the Department of
Labor (DOL).
Provisions of the Code and ERISA include requirements for various features
including:
o participation, vesting and funding;
o nondiscrimination;
o limits on contributions and benefits;
o distributions;
o penalties;
o duties of fiduciaries;
o prohibited transactions; and
o withholding, reporting and disclosure.
IT IS THE RESPONSIBILITY OF THE EMPLOYER, PLAN TRUSTEE AND PLAN ADMINISTRATOR TO
SATISFY THE REQUIREMENTS OF THE CODE AND ERISA.
This prospectus does not provide detailed tax or ERISA information. The
following discussion briefly outlines the Code provisions relating to
contributions to and distributions from certain tax-qualified retirement plans,
although some information on other provisions is also provided. Various tax
disadvantages, including penalties, may result from actions that conflict with
requirements of the Code or ERISA, and regulations or other interpretations
thereof. In addition, Federal tax laws and ERISA are continually under review by
the Congress, and any changes in those laws, or in the regulations pertaining to
those laws, may affect the tax treatment of amounts contributed to tax-qualified
retirement plans or the legality of fiduciary actions under ERISA.
Certain tax advantages of tax-qualified retirement plan may not be available
under certain state and local tax laws. This outline does not discuss the effect
of any state or local tax laws. It also does not discuss the effect of federal
estate and gift tax laws (or state and local estate, inheritance and other
similar tax laws). This outline assumes that the participant does not
participate in any other qualified retirement plan. Finally, it should be noted
that many tax consequences depend on the particular jurisdiction or
circumstances of a participant or beneficiary.
THE PROVISIONS OF THE CODE AND ERISA ARE HIGHLY COMPLEX. FOR COMPLETE
INFORMATION ON THESE PROVISIONS, AS WELL AS ALL OTHER FEDERAL, STATE, LOCAL AND
OTHER TAX CONSIDERATIONS, QUALIFIED LEGAL AND TAX ADVISERS SHOULD BE CONSULTED.
TAX ASPECTS OF CONTRIBUTIONS TO A PLAN
Corporations, partnerships and self-employed individuals can establish qualified
plans for the working owners and their employees who participate in the plan.
Qualified plans established by partnerships and sole proprietorships are
frequently referred to as "Keogh" plans. The trustee or plan administrator may
make contributions on behalf of the plan participants which are deductible from
the employer's Federal gross income. Employer contributions which exceed the
amount currently deductible are subject to a 10% penalty tax. There are specific
rules that affect owner employees (i.e., a person who owns 100% of an
unincorporated trade or business or a person who owns more than 10% of either
the capital or profits of a partnership) who participate in a Keogh plan. In
addition, there are special rules for corporate plans and Keogh plans which are
top heavy plans (i.e., more than 60% of the contributions or benefits are
allocated to certain highly compensated employees otherwise known as key
employees).
The limits on the amount of contributions that can be made and/or forfeitures
that can be allocated to each participant in defined contribution plans is the
lesser of $30,000 or 25% of the compensation or earned income for each
participant. For self-employed individuals, earned income is defined so as to
exclude deductible contributions made to all tax- qualified retirement plans,
including Keogh plans, and takes into account the deduction for one-half the
individual's self-employment tax. Deductions for aggregate contributions to
profit sharing plans may not exceed 15% of all participants' compensation.
There are special limits on deductions for contributions to one or more defined
contribution plans and one or more defined benefit plans. The employer may not
consider compensation in excess of $150,000 in calculating contributions or
benefits to the plan. This amount may be adjusted for cost of living changes in
future years. Special limits on contributions apply to anyone who participates
in more than one qualified plan or who controls another trade or business. In
addition, there is an overall limit on the total amount of contributions and
benefits under all tax-qualified retirement plans in which an individual
participates.
The deductible limits for corporate plans and Keogh plans which are defined
benefit plans are based on the minimum funding standard determined by the plan
actuary each year. No participant can receive a benefit which exceeds the lesser
of (i) $90,000 ($120,000 as indexed for inflation for the 1995 plan year) or
(ii) 100% of the participant's average compensation for the consecutive three
year period which results in the highest such average. The $90,000 limit is
actuarially reduced for participants retiring prior to the social security
retirement age (currently age 65) and actuarially increased for participants
retiring after the social security retirement age. Special grandfathering rules
apply to certain participants whose benefits exceed the $90,000 limit.
A qualified plan may allow the participant to direct the employer to make
contributions which will not be included in the employee's income (elective
deferrals) by entering into a salary reduction agreement with the employer under
Section 401(k) of the Code. The 401(k) plan, otherwise known as a cash or
deferred arrangement, must not allow withdrawals of elective deferrals and the
earnings thereon
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prior to the earliest of the following events: (i) attainment of age 59 1/2,
(ii) death, (iii) disability, (iv) certain business dispositions and plan
terminations or (v) termination of employment. In addition, in service
withdrawals of elective deferrals (but not earnings after 1988) may be made in
the case of financial hardship.
A participant cannot elect to defer annually more than $7,000 ($9,240 as indexed
for inflation in 1995) under all salary reduction arrangements in which the
individual participates. If an individual's aggregate elective deferrals under
all such salary reduction arrangements exceeds the permitted elective deferral
limit in any taxable year, the individual will be taxed twice on the excess
deferral--once in the year of the deferral and again when a distribution occurs.
If the participant notifies the affected plan or plans by March 1 of the
following year and by April 15 of such year takes a distribution of the excess
deferral and related income, the excess deferral will only be taxed once in the
year of the distribution. The excess deferral distribution will not be treated
as an impermissible withdrawal or an "eligible rollover distribution" and will
not be subject to the 10% penalty tax on premature distributions, discussed
below.
A qualified plan must not discriminate in favor of highly compensated employees.
Two special nondiscrimination rules limit contributions and benefits for highly
compensated employees in the case of (1) a 401(k) plan and (2) any defined
contribution plan, whether or not a 401(k) plan, which provides for employer
matching contributions to employee after-tax contributions or elective
deferrals. In both cases the special nondiscrimination tests compare the
deferrals or the aggregate contributions, as the case may be, made by the
eligible highly compensated employees with those made by the non-highly
compensated employees. Coordination rules between the two provisions are
prescribed. Highly compensated participants include five percent owners,
employees earning more than $100,000 per year, employees earning more than
$66,000 per year and who are in the top 20% of all employees based on
compensation, and officers (or deemed officers) earning more than $60,000 per
year (in each case after indexing for inflation in 1995).
If a 401(k) plan or defined contribution plan with an employer match makes
contributions to highly compensated employees exceeding applicable
nondiscrimination limits for any plan year, the plan may be disqualified unless
the excess amounts including earnings are distributed before the close of the
next plan year. In addition, the employer is subject to a 10% penalty on any
such excess contributions or excess aggregate contributions. The employer may
avoid the penalty by distributing the excess contributions or excess aggregate
contributions, plus income, within two and one-half months after the close of
the plan year. Except where the distribution is de minimis (under $100), the
participant receiving any such distribution is taxed on the distribution and the
related income for the year of the excess contribution or excess aggregate
contribution. Such a distribution is not treated as an impermissible withdrawal
by the employee or an eligible rollover distribution and will not be subject to
the 10% penalty tax on premature distributions.
Contributions to a 401(k) plan or a defined contribution plan as matching
contributions, within the meaning of section 401(m) of the Code, may not be
deductible by the employer for a particular taxable year if the plan
contributions are attributable to compensation earned by a participant after the
end of the taxable year.
TAX ASPECTS OF DISTRIBUTIONS FROM A PLAN
Amounts held under qualified plans are generally not subject to Federal income
tax until benefits are distributed to the participant or other recipient. In
addition, there will not be any tax liability for transfers of any part of the
value of an employer plan among the Investment Options.
The various types of benefit payments include withdrawals, annuity payments and
lump sum distributions. Each benefit payment made to the participant or other
recipient is generally fully taxable as ordinary income. An exception to this
general rule is made, however, to the extent a distribution is treated as a
recovery of after-tax contributions made by the participant.
In addition to income tax, the taxable portion of any distribution may be
subject to a 10% penalty tax. See "Penalty Tax on Premature Distributions"
below.
Income Taxation of Withdrawals
The amount of any partial distribution prior to the annuity starting date is
treated as ordinary income except to the extent the distribution is treated as a
withdrawal of after-tax contributions. Withdrawals from a qualified plan are
normally treated as pro rata withdrawals of after-tax contributions and earnings
on those contributions. If the plan allowed withdrawals prior to separation from
service as of May 5, 1986, however, all after-tax contributions made prior to
January 1, 1987 may be withdrawn tax-free prior to withdrawing any taxable
amounts.
As discussed below in "Certain Rules Applicable to Plan Loans," taking a loan or
failing to repay an outstanding loan as required may, in certain situations, be
treated as a taxable distribution.
Income Taxation of Annuity Payments
In the case of a distribution in the form of an annuity, the amount of each
annuity payment is treated as ordinary income except where the participant has a
cost basis in the annuity. The cost basis is equal to the amount of after-tax
contributions, plus any employer contributions that had to be included in gross
income in prior years. If the participant has a cost basis in the annuity, a
portion of each payment received will be excluded from gross income to reflect
the return of the cost basis. The remainder of each payment will be includible
in gross income as ordinary income.
The excludable portion is based on the ratio of the participant's cost basis in
the annuity on the annuity starting date to the expected return under the
annuity as of such date. Under an annuity with a life contingency, the expected
return is based on the annuitant's life expectancy, that is, the number of
annuity payments anticipated to be made during the annuitant's lifetime. In the
case of a joint and survivor annuity, the expected return is based on the joint
life expectancy, that is, the number of payments anticipated to be made during
both of their lifetimes. An adjustment will be required in computing the
expected return of the annuity with a life contingency if payments are to be
made for any certain period. If the participant (and beneficiary under a joint
and survivor annuity) live beyond their life expectancies the full amount of the
payments received after the cost basis of the annuity is recovered is fully
taxable. If the participant (and beneficiary under a joint and survivor annuity)
die prior to recovering the full cost basis of the
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annuity, a deduction is allowed on the participant's (or beneficiary's) final
tax return. If there is a refund feature under the annuity, the beneficiary of
the refund may recover the remaining cost basis as payments are made.
Income Taxation of Lump Sum Distributions
If benefits are paid in a lump sum, the payment may be eligible for the special
tax treatment accorded lump sum distributions. Under the five-year averaging
method (and in certain cases, favorable ten-year averaging and long-term capital
gain treatment), the tax on the distribution is calculated separately from taxes
on other income for that year. To qualify, the participant must have
participated in the plan for at least five years and the distribution must
consist of the entire balance to the credit of the participant. The distribution
must be made in one taxable year of the recipient and must be made (i) after the
participant has attained age 59 1/2 or (ii) on account of the participant's (a)
death, (b) separation from service (not applicable to self-employed
individuals), or (c) disability (applicable only to self-employed individuals).
Eligible Rollover Distributions
Many types of distributions from qualified plans are "eligible rollover
distributions" that can be rolled over directly to another qualified plan or an
individual retirement arrangement (IRA), or rolled over to another plan or IRA
within 60 days of receipt by the individual. Death benefits received by a
spousal beneficiary may only be rolled over into an IRA. To the extent a
distribution is rolled over, it remains tax deferred. Distributions not rolled
over directly, however, are subject to 20% mandatory withholding. See "Federal
Income Tax Withholding" below.
The taxable portion of most distributions will generally be an "eligible
rollover distribution" unless the distribution is one of a series of
substantially equal periodic payments made (not less frequently than annually)
(1) for the life (or life expectancy) of the participant or the joint lives (or
joint life expectancies) of the participant and his or her designated
beneficiary, or (2) for a specified period of ten years or more. Nondeductible
voluntary contributions may not be rolled over.
In addition, none of the following is treated an eligible rollover distribution:
o minimum distributions required under Section 401(a)(9) of the Code (see
"Distribution Requirements and Limits" below);
o certain corrective distributions in plans subject to Sections 401(k), 401(m)
or 402(g) of the Code;
o certain loans that are treated as distributions under Section 72(p) of the
Code;
o P.S. 58 costs (incurred if the plan provides life insurance protection for
participants);
o dividends paid on employer securities as described in Section 404(k) of the
Code; and
o a distribution to a non-spousal beneficiary.
If a distribution is made to a participant's surviving spouse, or to a current
or former spouse under a qualified domestic relations order, the distribution
may be an eligible rollover distribution, subject to mandatory 20% withholding,
unless one of the exceptions described above applies.
If distributions eligible for rollover are in fact rolled over, the favorable
averaging rules discussed above in "Income Taxation of Lump Sum Distributions"
will not be available for future distributions.
Penalty Tax on Premature Distributions
An additional 10% penalty tax is imposed on all taxable amounts distributed to a
participant who has not reached age 59 1/2 unless the distribution falls within
a specified exception or is rolled over into an IRA or other qualified plan. The
specified exceptions are for (a) distributions made on account of the
participant's death or disability, (b) distributions (which begin after
separation from service) in the form of a life annuity or substantially equal
periodic installments over the participant's life expectancy (or the joint life
expectancy of the participant and the beneficiary), (c) distributions due to
separation from active service after age 55 and (d) distributions used to pay
certain extraordinary medical expenses.
Federal Income Tax Withholding
Mandatory Federal income tax withholding at a 20% rate will apply to all
"eligible rollover distributions" unless the participant elects to have the
distribution directly rolled over to another qualified plan or IRA. See the
description above of "Eligible Rollover Distributions."
With respect to distributions that are not eligible rollover distributions,
Federal income tax must be withheld on the taxable portion of pension and
annuity payments, unless the recipient elects otherwise. The rate of withholding
will depend on the type of distribution and, in certain cases, the amount of the
distribution. Special rules may apply to foreign recipients, or United States
citizens residing outside the United States. If a recipient does not have
sufficient income tax withheld, or make sufficient estimated income tax
payments, the recipient may incur penalties under the estimated income tax
rules. Recipients should consult their tax advisers to determine whether they
should elect out of withholding.
Requests not to withhold Federal income tax must be made in writing prior to
receiving payments and submitted in accordance with the terms of the employer
plan. No election out of withholding is valid unless the recipient provides the
recipient's correct taxpayer identification number and a U.S. residence address.
State Income Tax Withholding
Certain states have indicated that pension and annuity withholding will apply to
payments made to residents of such states. In some states a recipient may elect
out of state income tax withholding, even if Federal withholding applies. It is
not clear whether such states may require mandatory withholding with respect to
eligible rollover distributions that are not rolled over (as described above
under "Eligible Rollover Distributions"). Contact your tax adviser to see how
state withholding may apply to your payment.
Distribution Requirements and Limits
Distributions from qualified plans generally must commence no later than April 1
of the calendar year following
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the calendar year in which the participant attains age 70 1/2 . Distributions
can generally be made (1) in a lump sum payment, (2) over the life of the
participant, (3) over the joint lives of the participant and his or her
designated beneficiary, (4) over a period not extending beyond the life
expectancy of the participant or (5) over a period not extending beyond the
joint life expectancies of the participant and his or her designated
beneficiary. The minimum amount required to be distributed in each year after
age 70 1/2 is described in the Code, Treasury Regulations and IRS guidelines. If
a designated beneficiary is other than a participant's spouse, certain minimum
incidental benefit requirements also apply.
If the participant dies after required distribution has begun, payment of the
remaining interest under the plan must be made at least as rapidly as under the
method used prior to the participant's death. If a participant dies before
required distribution has begun, payment of the entire interest under the plan
must be completed within five years after death, unless payments to a designated
beneficiary begin within one year of the participant's death and are made over
the beneficiary's life or over a period certain which does not extend beyond the
beneficiary's life expectancy. If the surviving spouse is the designated
beneficiary, the spouse may delay the commencement of such payments up until the
date that the participant would have attained age 70 1/2 . Distributions
received by a beneficiary are generally given the same tax treatment the
participant would have received if distribution had been made to the
participant.
If there is an insufficient distribution in any year, a 50% tax may be imposed
on the amount by which the minimum required to be distributed exceeds the amount
actually distributed. Failure to have distributions made as the Code and
Treasury Regulations require may result in plan disqualification.
A 15% excise tax is imposed on a participant's aggregate excess distributions
from all tax-favored retirement plans. The excise tax is in addition to the
ordinary income tax due, but is reduced by the amount (if any) of the early
distribution penalty tax imposed by the Code. In addition, in certain cases the
estate tax imposed on a deceased participant's estate will be increased if the
accumulated value of the participant's interests in tax-favored retirement plans
is excessive. The aggregate distributions or accumulations in any year will be
subject to excise tax if they exceed applicable prescribed limits ($150,000 for
1995). Whether a lump sum distribution is excessive for excise tax purposes is
separately calculated. The applicable limits are five times the above limits.
Spousal Requirements
In the case of many corporate and Keogh plans, if a participant is married at
the time benefit payments become payable, unless the participant elects
otherwise with written consent of the spouse, the benefit must be paid in the
form of a qualified joint and survivor annuity (QJSA). A QJSA is an annuity
payable for the life of the participant with a survivor annuity for the life of
the spouse in an amount which is not less than one-half of the amount payable to
the participant during his or her lifetime. In addition, most plans require that
a married participant's beneficiary must be the spouse, unless the spouse
consents in writing to the designation of a different beneficiary.
CERTAIN RULES APPLICABLE TO PLAN LOANS
The following are Federal tax and ERISA rules that apply to loan provisions of
all employer plans. Employer plans may have additional restrictions. Employers
and participants should review these matters with their own tax advisers before
requesting a loan. There will not generally be any tax liability with respect to
properly made loans in accordance with an employer plan. A loan may be in
violation of applicable provisions unless it complies with the following
conditions:
o With respect to specific loans made by the plan to a plan participant, the
plan administrator determines the interest rate, the maximum term and all
other terms and conditions of the loan.
o In general, the term of the loan cannot exceed five years unless the loan is
used to acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level payments
over the term of the loan, with payments being made at least quarterly.
o The amount of a loan to a participant, when aggregated with all other loans
to the participant from all qualified plans of the employer, cannot exceed
the greater of $10,000 or 50% of the participant's non-forfeitable accrued
benefits, and cannot exceed $50,000 in any event. This $50,000 limit is
reduced by the excess (if any) of the highest outstanding loan balance over
the previous twelve months over the outstanding balance of plan loans on the
date the loan was made.
o For loans made prior to January 1, 1987 and not renewed, modified,
renegotiated or extended after December 31, 1986 the $50,000 maximum
aggregate loan balance is not required to be reduced, the quarterly
amortization requirement does not apply, and the term of a loan may exceed
five years if used to purchase the principal residence of the participant or
a member of his or her family, as defined in the Code.
o Only 50% of the participant's vested account balance may serve as security
for a loan. To the extent that a participant borrows an amount which should
be secured by more than 50% of the participant's vested account balance, it
is the responsibility of the trustee or plan administrator to obtain the
additional security.
o Loans must be available to all plan participants, former participants who
still have account balances under the plan, beneficiaries and alternate
payees on a reasonably equivalent basis.
o Each new or renewed loan must bear a reasonable rate of interest
commensurate with the interest rates charged by persons in the business of
lending money for loans that would be made under similar circumstances.
o Many plans provide that the participant's spouse must consent in writing to
the loan.
o Except to the extent permitted in accordance with the terms of a prohibited
transaction exemption issued by DOL, loans are not available (i) in a Keogh
(non-
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corporate) plan to an owner-employee or a partner who owns more than 10% of
a partnership or (ii) to 5% shareholders in an S corporation.
o If the loan does not qualify under the conditions above, the participant
fails to repay the interest or principal when due, or in some instances, if
the participant separates from service or the plan is terminated, the amount
borrowed or not repaid may be treated as a distribution. The participant may
be required to include as ordinary income the unpaid amount due and a 10%
penalty tax on early distributions may apply. The plan should report the
amount of the unpaid loan balance to the IRS as a distribution. See "Tax
Aspects of Distributions From a Plan" above.
o The loan requirements and provisions of RIA shall apply regardless of the
plan administrator's guidelines.
IMPACT OF TAXES TO EQUITABLE LIFE
Under existing Federal income tax law, no taxes are payable on investment income
and capital gains of the Funds that are applied to increase the reserves under
the Contracts. Accordingly, Equitable Life does not anticipate that it will
incur any Federal income tax liability attributable to income allocated to the
variable annuity contracts participating in the Investment Funds and it does not
currently impose a charge for Federal income tax on this income when it computes
Unit values for the Investment Funds. If changes in Federal tax laws or
interpretations thereof would result in Equitable Life being taxed, then
Equitable Life may impose a charge against the Investment Funds (on some or all
Contracts) to provide for payment of such taxes.
CERTAIN RULES APPLICABLE TO PLANS DESIGNED TO COMPLY WITH SECTION 404(C) OF
ERISA.
Section 404(c) of ERISA, and the related DOL regulation, provide that if a plan
participant or beneficiary exercises control over the assets in his or her plan
account, plan fiduciaries will not be liable for any loss that is the direct and
necessary result of the plan participant's or beneficiary's exercise of control.
As a result, if the plan complies with Section 404(c) and the DOL regulation
thereunder, the plan participant can make and is responsible for the results of
his or her own investment decisions.
Section 404(c) plans must provide, among other things, that a broad range of
investment choices are available to plan participants and beneficiaries and must
provide such plan participants and beneficiaries with enough information to make
informed investment decisions. Compliance with the Section 404(c) regulation is
completely voluntary by the plan sponsor, and the plan sponsor may choose not to
comply with Section 404(c).
The RIA Program provides employer plans with the broad range of investment
choices and information needed in order to meet the requirements of the Section
404(c) regulation. If the plan is intended to be a Section 404(c) plan, it is,
however, the plan sponsor's responsibility to see that the requirements of the
DOL regulation are met. Equitable Life and its Agents shall not be responsible
if a plan fails to meet the requirements of Section 404(c).
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PART VIII -- PARTICIPANT RECORDKEEPING SERVICES (OPTIONAL)
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SERVICES PROVIDED
Under the Participant Recordkeeping Services (PRS) program elected by the
employer or plan trustees, we
o establish an individual participant account for each participant covered by
the employer plan based on data received from the employer or trustees;
o receive and deposit contributions on behalf of participants to individual
participant accounts;
o maintain for the employer records reflecting for each participant in the
employer plan the contributions, transfers, loan transactions, withdrawals
and investment experience and interest accrued, as applicable, on an
individual participant's proportionate values in the employer plan;
o provide to the employer for its individual participants' reports reflecting
the activity in the individual participant's proportionate interest in the
employer plan; and
o process transfers and distributions of the participant's portion of his or
her share of the employer plan assets among the Investment Options as
instructed by the employer.
The employer or plan trustees are responsible for providing Equitable Life with
required information and for complying with our procedures relating to the PRS
program. We will not be liable for errors in recordkeeping if the information
provided by the employer or plan trustee is not provided on a timely basis or is
incorrect . The plan administrator retains full responsibility for the income
tax withholding and reporting requirements including required notices to the
participants of the employer plan, as set forth in the Code and applicable
Treasury Regulations.
INVESTMENT OPTIONS
The Employer must select the Guaranteed Interest Account when PRS is elected.
FEES
For this service we charge an annual fee of $25 per active participant paid in
twelve equal monthly installments of $2.08. The fee is deducted from the
individual participant's account at the end of each month by means of a
reduction of Units out of the Investment Options and a cash withdrawal from the
Guaranteed Interest Account. We retain the right to change the fee upon 30 days'
notice to the employer. See PART II -- CHARGES AND FEES.
ENROLLMENT
The employer may enroll for PRS at the time the employer plan is established
with us under RIA or at any time thereafter upon approval by us, at out sole
discretion.
We have summarized the main features of PRS here, and participation in this
aspect of the RIA program is subject to the terms set forth in the participation
agreement (including any separate supplementary agreement) entered into between
us and the employer.
39
<PAGE>
================================================================================
[RIA LOGO]
SEPARATE ACCOUNT UNITS OF INTEREST
UNDER GROUP ANNUITY CONTRACTS
o Money Market Fund o Growth & Income Fund Blended Funds:
o Intermediate Government o Equity Index Fund o Conservative Investors Fund
Securities Fund o Common Stock Fund o Balanced Fund
o Bond Fund o Global Fund o Growth Investors Fund
o Quality Bond Fund o International Fund
o High Yield Fund o Aggressive Stock Fund
OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
----------------------------------------------------------
RIA SERVICE OFFICE:
Equitable Life
RIA Service Office
200 Plaza Drive, 3rd Floor
Secaucus, NJ 07094-3689
Tel.: (800) 967-4560
(201) 392-5500
(9 A.M. to 5 P.M. Eastern time)
Fax: (201) 392-2285, 2286 or 2287
(To obtain pre-recorded Fund unit values, use our toll-free number listed above)
ADDRESS FOR CONTRIBUTIONS ONLY:
Equitable Life
RIA/EPP
P.O. Box 13503
Newark, NJ 07188
EXPRESS MAIL ADDRESS FOR CONTRIBUTIONS ONLY:
First Chicago National Processing Center (FCNPC)
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13503
Secaucus, NJ 07094
================================================================================
40
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
PAGE
- --------------------------------------------------------------------------------
PART I-- FUND INFORMATION .......................................... 2
General ......................................................... 2
Restrictions and Requirements of the Bond, Balanced,
Common Stock and Aggressive Stock Funds ....................... 2
Certain Investments of the Bond Fund ............................ 2
How We Determine the Unit Value ................................. 3
Summary of Unit Values .......................................... 4
Money Market Yield Information .................................. 8
Brokerage Fees and Charges for Securities Transactions .......... 9
Ongoing Operations Fee .......................................... 10
PART II-- MANAGEMENT FOR THE BOND, BALANCED, COMMON STOCK
AND AGGRESSIVE STOCK FUNDS AND EQUITABLE LIFE ................... 11
Funds ........................................................... 11
Distribution .................................................... 11
Equitable Life .................................................. 11
Directors ..................................................... 11
Officer-Directors ............................................. 12
Other Officers ................................................ 12
PART III-- FINANCIAL STATEMENTS .................................... 13
Index ........................................................... 13
Financial Statements ............................................ 14
- --------------------------------------------------------------------------------
If you wish to obtain a free copy of the Statement of Additional Information,
send or fax this request form to:
Equitable Life -- RIA Service Office
Attn. SAI Request
200 Plaza Drive, 3rd Floor
Secaucus, NJ 07094-3689
Tel: (800) 967-4560
(201) 392-5500
(Business Days, 9 A.M. to 5 P.M. Eastern time)
Fax: (201) 392-2285, 2286 or 2287
- --------------------------------------------------------------------------------
Please send me a copy of the Statement of Additional Information for RIA dated
May 1, 1995.
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip Code
- --------------------------------------------------------------------------------
Client Number
41
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1996
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT UNITS OF INTEREST UNDER
GROUP ANNUITY CONTRACTS
<TABLE>
<S> <C> <C>
o MONEY MARKET FUND o GROWTH & INCOME FUND BLENDED FUNDS:
o INTERMEDIATE GOVERNMENT o EQUITY INDEX FUND o CONSERVATIVE INVESTORS FUND
SECURITIES FUND o COMMON STOCK FUND o BALANCED FUND
o BOND FUND o GLOBAL FUND o GROWTH INVESTORS FUND
o QUALITY BOND FUND o INTERNATIONAL FUND
o HIGH YIELD FUND o AGGRESSIVE STOCK FUND
</TABLE>
OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
- --------------------------------------------------------------------------------
[RIA LOGO]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
TABLE OF CONTENTS PAGE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C>
PART I-- FUND INFORMATION ..................................................................................... 2
General..................................................................................................... 2
Restrictions and Requirements of the Bond, Balanced, Common Stock and Aggressive Stock Funds ............... 2
Certain Investments of the Bond and Balanced Funds.......................................................... 2
How We Determine the Unit Value............................................................................. 4
Summary of Unit Values ..................................................................................... 5
Money Market Yield Information ............................................................................. 9
Brokerage Fees and Charges for Securities Transactions ..................................................... 10
Ongoing Operations Fee ..................................................................................... 11
PART II-- MANAGEMENT FOR THE BOND, BALANCED, COMMON STOCK AND AGGRESSIVE STOCK FUNDS AND EQUITABLE LIFE........ 12
Funds ...................................................................................................... 12
Distribution ............................................................................................... 12
Equitable Life ............................................................................................. 12
Directors................................................................................................... 12
Officer-Directors .......................................................................................... 13
Other Officers ............................................................................................. 13
PART III-- FINANCIAL STATEMENTS ............................................................................... 14
Index ...................................................................................................... 14
Financial Statements........................................................................................ 14
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
This Statement of Additional Information (SAI) is not a prospectus. It should be
read in conjunction with the prospectus for our Retirement Investment Account
(RIA), dated May 1, 1995 (PROSPECTUS), and the supplement dated May 1, 1996 to
the Prospectus and any additional supplements.
Terms defined in the Prospectus have the same meaning in the SAI unless the
context otherwise requires.
You can obtain a copy of the Prospectus, and any supplements to the Prospectus,
from us free of charge by writing or calling the RIA Service Office listed on
the back of this SAI, or by contacting your Equitable Life Agent. Our Home
Office is located at 787 Seventh Avenue, New York, N.Y. 10019 (212) 554-1234.
- --------------------------------------------------------------------------------
888-1115 (5/96) Copyright 1996 The Equitable Life Assurance Society
of the United States.
All rights reserved.
Cat. No. 000000
<PAGE>
- --------------------------------------------------------------------------------
PART I -- FUND INFORMATION
- --------------------------------------------------------------------------------
GENERAL
In our Prospectus we discuss in more detail, among other things, the structure
of the Bond, Balanced, Common Stock and Aggressive Stock Funds, their investment
objectives and policies, including types of portfolio securities they may hold
and levels of investment risks that may be involved and investment management.
We also summarize certain of these matters with respect to the Investment Funds
and their corresponding Portfolios. See PART I -- RIA SUMMARY AND PART III --
EQUITABLE LIFE AND ITS FUNDS in the Prospectus.
Here we will discuss special restrictions, requirements and transaction expenses
that apply to the Bond, Balanced, Common Stock and Aggressive Stock Funds,
certain investments of the Bond Fund and determination of the value of Units for
all Funds, including some historical information. Investment objectives and
policies, as well as restrictions, requirements and risks pertaining to the
corresponding Portfolios of the Money Market, Intermediate Government
Securities, Quality Bond, High Yield, Growth & Income, Equity Index, Global,
International, Conservative Investors and Growth Investors Funds are found in
the Trust Prospectus and SAI.
RESTRICTIONS AND REQUIREMENTS OF THE BOND, BALANCED,
COMMON STOCK AND AGGRESSIVE STOCK FUNDS
Neither the Common Stock Fund nor the Balanced Fund will make an investment in
an industry if that investment would cause the Fund's holding in that industry
to exceed 25% of the Fund's assets.
The Bond Fund, Common Stock Fund and Aggressive Stock Funds will not purchase or
write puts or calls (options). The Balanced Fund's investment policies do not
prohibit hedging transactions such as through the use of put and call options
and stock index or interest rate futures. However, the Balanced Fund currently
has no plans to enter into such transactions.
The following investment restrictions apply to the Bond, Balanced, Common Stock
and Aggressive Stock Funds. None of those Funds will:
o trade in foreign exchange (except transactions incidental to the settlement
of purchases or sales of securities for a Fund and contracts for the purchase
or sale of a specific foreign currency at a future date at a price set at the
time of the contract);
o make an investment in order to exercise control or management over a company;
o underwrite the securities of other companies, including purchasing securities
that are restricted under the 1933 Act or rules or regulations thereunder
(restricted securities cannot be sold publicly until they are registered
under the 1933 Act), except as stated below;
o make short sales, except when the Fund has, by reason of ownership of other
securities, the right to obtain securities of equivalent kind and amount that
will be held so long as they are in a short position;
o trade in commodities or commodity contracts (except the Balanced Fund is not
prohibited from entering into hedging transactions through the use of stock
index or interest rate futures);
o purchase real estate or mortgages, except as stated below. The Funds may buy
shares of real estate investment trusts listed on stock exchanges or reported
on NASDAQ;
o have more than 5% of its assets invested in the securities of any one
registered investment company. A Fund may not own more than 3% of a
registered investment company's outstanding voting securities. The Fund's
total holdings of registered investment company securities may not exceed 10%
of the value of the Fund's assets;
o purchase any security on margin or borrow money except for short-term credits
necessary for clearance of securities transactions;
o make loans, except loans through the purchase of debt obligations or through
entry into repurchase agreements; or
o invest more than 10% of its total assets in restricted securities, real
estate investments, or portfolio securities not readily marketable.
CERTAIN INVESTMENTS OF THE BOND AND BALANCED FUNDS
The following are brief descriptions of certain types of investments which may
be made by the Bond and Balanced Funds and certain risks and investment
techniques.
MORTGAGE PASS-THROUGH SECURITIES. The Bond and Balanced Funds may invest in
mortgage pass-through securities, which are securities representing interests in
pools of mortgages. Principal and interest payments made on the mortgages in the
pools are passed through to the holder of such securities. Payment of principal
and interest on some mortgage pass-through securities (but not the market value
of the securities themselves) may be
2
<PAGE>
guaranteed by the full faith and credit of the U.S. Government (in the case of
securities guaranteed by the Government National Mortgage Association, or
"GNMA"), or guaranteed by agencies or instrumentalities of the U.S. Government
(in the case of securities guaranteed by the Federal National Mortgage
Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC")
which are supported only by discretionary authority of the U.S. Government to
purchase the agency's obligations). Mortgage pass-through securities created by
non-governmental issuers (such as commercial banks, savings and loan
institutions, private mortgage insurance companies, mortgage bankers, and other
secondary market issuers) may be supported by various forms of insurance or
guarantees, including individual loan, title, pool, and hazard insurance, and
letters of credit, which may be issued by governmental entities, private
insurers or the mortgage poolers.
COLLATERALIZED MORTGAGE OBLIGATIONS. The Bond and Balanced Funds may invest in
collateralized mortgage obligations ("CMOs"). CMOs are debt securities
collateralized by underlying mortgage loans or pools of mortgage pass-through
securities guaranteed by GNMA, FHLMC or FNMA and are generally issued by limited
purpose finance subsidiaries of U.S. Government instrumentalities. CMOs are not,
however, mortgage pass-through securities. Rather, they are pay-through
securities, i.e., securities backed by the cash flow from the underlying
mortgages. Investors in CMOs are not owners of the underlying mortgages, which
serve as collateral for such debt securities, but are simply owners of a debt
security backed by such pledged assets. CMOs are typically structured into
multiple classes, with each class bearing a different stated maturity and having
different payment streams. Monthly payments of principal, including prepayments,
are first returned to investors holding the shortest maturity class; investors
holding longer maturity classes receive principal payments only after the
shorter class or classes have been retired.
ASSET-BACKED SECURITIES. The Bond and Balanced Funds may purchase asset-backed
securities that represent either fractional interests or participation in pools
of leases, retail installment loans or revolving credit receivables held by a
trust or limited purpose finance subsidiary. Such asset-backed securities may be
secured by the underlying assets (such as Certificates for Automobile
Receivables) or may be unsecured (such as Credit Card Receivable Securities).
Depending on the structure of the asset-backed security, monthly or quarterly
payments of principal and interest or interest only are passed-through like
mortgage pass-through securities or paid through (like CMOs) to certificate
holders. Asset-backed securities may be guaranteed up to certain amounts by
guarantees, insurance or letters of credit issued by a financial institution
affiliated or unaffiliated with the originator of the pool.
Underlying automobile sales contracts and credit card receivables are, of
course, subject to prepayment (although to a lesser degree than mortgage
pass-through securities), which may shorten the securities' weighted average
life and reduce their overall return to certificate holders. Certificate holders
may also experience delays in payment if the full amounts due on underlying
loans, leases or receivables are not realized because of unanticipated legal or
administrative costs of enforcing the contracts or because of depreciation or
damage to the collateral (usually automobiles) securing certain contracts, or
other factors. The value of these securities also may change because of changes
in the market's perception of the creditworthiness of the servicing agent for
the pool, the originator of the pool, or the financial institution providing
credit support enhancement for the pool. If consistent with its investment
objective and policies, the Bond and Balanced Funds may invest in other
asset-backed securities that may be developed in the future.
ZERO-COUPON BONDS. The Bond and Balanced Funds may invest in zero-coupon bonds.
Such bonds may be issued directly by agencies and instrumentalities of the U.S.
Government or by private corporations. Zero-coupon bonds may originate as such
or may be created by stripping an outstanding bond. Zero-coupon bonds do not
make regular interest payments. Instead, they are sold at a deep discount from
their face value. Because a zero-coupon bond does not pay current income, its
price can be very volatile when interest rates change.
REPURCHASE AGREEMENTS. In repurchase agreements, the Bond or Balanced Fund buys
securities from a seller, usually a bank or brokerage firm, with the
understanding that the seller will repurchase the securities at a higher price
at a future date. During the term of the repurchase agreement the Fund retains
the securities subject to the repurchase agreement as collateral securing the
seller's repurchase obligation, continually monitors on a daily basis the market
value of the securities subject to the agreement and requires the seller to
deposit with the Fund collateral equal to any amount by which the market value
of the securities subject to the repurchase agreement falls below the resale
amount provided under the repurchase agreement. We evaluate the creditworthiness
of sellers with whom we enter into repurchase agreements. Such transactions
afford an opportunity for the Fund to earn a fixed rate of return on available
cash at minimal market risk, although the Fund may be subject to various delays
and risks of loss if the seller is unable to meet its obligation to repurchase.
The Funds currently treat repurchase agreements maturing in more than seven days
as illiquid securities.
DEBT SECURITIES SUBJECT TO PREPAYMENT RISKS. Mortgage pass-through securities
and certain collateralized mortgage obligations, asset-backed securities and
other debt instruments in which the Balanced Fund may invest are subject to
prepayments prior to their stated maturity. It is usually not possible to
accurately predict the rate at which prepayments will be made, which rate may be
affected, among other things, by changes in generally
3
<PAGE>
prevailing market interest rates. If prepayments occur, the Fund suffers the
risk that it will not be able to reinvest the proceeds at as high a rate of
interest as it had previously been receiving. Also, the Fund will incur a loss
to the extent that prepayments are made for an amount that is less than the
value at which the security was then being carried by the Fund. Moreover,
securities that may be prepaid tend to increase in value less during times of
declining interest rates, and to decrease in value more during times of
increasing interest rates, than do securities that are not subject to
prepayment.
WHEN-ISSUED AND DELAYED DELIVERY SECURITIES. The Bond and Balanced Funds may
purchase and sell securities on a when-issued or delayed delivery basis. In
these transactions, securities are purchased or sold by a Fund with payment and
delivery taking place in the future in order to secure what is considered to be
an advantageous price or yield to the Fund at the time of entering into the
transaction. However, the market value of such securities at the time of
settlement may be more or less than the purchase price then payable. When a Fund
engages in when-issued or delayed delivery transactions, the Fund relies on the
other party to consummate the transaction. Failure to consummate the transaction
may result in the Fund missing the opportunity of obtaining a price or yield
considered to be advantageous. When-issued and delayed delivery transactions are
generally expected to settle within three months from the date the transactions
are entered into, although the Fund may close out its position prior to the
settlement date. A Fund will sell on a forward settlement basis only securities
it owns or has the right to acquire.
FOREIGN CURRENCY FORWARD CONTRACTS. The Balance Fund may enter into contracts
for the purchase or sale of a specific foreign currency at a future date at a
price set at the time of the contract. Generally, such forward contracts will be
for a period of less than three months. The Fund will enter into such forward
contracts for hedging purposes only. These transactions will include forward
purchases or sales of foreign currencies for the purpose of protecting the
dollar value of securities denominated in a foreign currency or protecting the
dollar equivalent of interest or dividends to be paid on such securities.
Forward contracts are traded in the inter-bank market, and not on organized
commodities or securities exchanges. Accordingly, the Fund is dependent upon the
good faith and creditworthiness of the other party to the transaction, as
evaluated by the Fund's manager. To the extent inconsistent with any
restrictions in the SAI concerning the Fund's trading in foreign exchange, this
paragraph will control.
HEDGING TRANSACTIONS. The Balanced Fund may engage in hedging transactions which
are designed to protect against anticipated adverse price movements in
securities owned or intended to be purchased by the Fund. When interest rates go
up, the market value of outstanding debt securities declines and vice versa. In
recent years the volatility of the market for debt securities has increased
significantly, and market prices of longer-term obligations have been subject to
wide fluctuations, particularly as contrasted with those of short-term
instruments. The Fund will take certain risks into consideration when
determining which, if any, options or financial futures contracts it will use.
If the price movements of hedged portfolio securities are in fact favorable to
the Fund, the hedging transactions will tend to reduce and may eliminate the
economic benefit to the Fund which otherwise would result. Also, the price
movements of options and futures used for hedging purposes may not correlate as
anticipated with price movements of the securities being hedged. This can make a
hedge transaction less effective than anticipated and could result in a loss.
The options and futures markets can sometimes become illiquid and the exchanges
on which such instruments are traded may impose trading halts or delays on the
exercise of options and liquidation of futures positions in certain
circumstances. This could in some cases operate to the Fund's detriment.
HOW WE DETERMINE THE UNIT VALUE
In our Prospectus, we discuss how employer plan assets are put into and taken
out of the Funds by the purchase and redemption of Units under the Contracts,
respectively. See PART III -- EQUITABLE LIFE AND ITS FUNDS in the Prospectus.
Here we will discuss how we determine the value of Units.
When contributions are invested in the Funds, the number of Units outstanding
attributable to each Fund is correspondingly increased; and when amounts are
withdrawn from one of these Funds, the number of Units outstanding attributable
to that Fund is correspondingly decreased.
We calculate Unit values at the end of each Business Day. For the Bond,
Balanced, Common Stock and Aggressive Stock Funds, the Unit values reflect
investment performance and investment management and financial accounting fees.
We determine the respective Unit values for these Funds by multiplying the Unit
value for the preceding Business Day by the net investment factor for that
subsequent day. We determine the net investment factor as follows:
o First, we take the value of the Fund's assets at the close of business on the
preceding Business Day.
o Next, we add the investment income and capital gains, realized and
unrealized, that are credited to the assets of the Fund during the Business
Day for which the net investment factor is being determined.
o Then, we subtract the capital losses, realized and unrealized, and investment
management and financial accounting fees charged to the Fund during that
Business Day.
4
<PAGE>
o Finally, we divide this amount by the value of the Fund's assets at the close
of the preceding Business Day.
Prior to June 1, 1994, for the Bond, Balanced, Common Stock and Aggressive Stock
Funds, the investment management and financial accounting fees were deducted
monthly from employer plan balances in these Funds.
Assets of the Bond, Balanced, Common Stock and Aggressive Stock Funds are valued
as follows:
o Common stocks and other equity-type securities listed on national securities
exchanges and certain over-the- counter issues traded on the NASDAQ system
are valued at the last sale price or, if no sale, at the latest available bid
price. Other unlisted securities reported on the NASDAQ system are valued at
inside (highest) quoted bid prices.
o Foreign securities not traded directly, or in ADR form in the United States
are valued at the last sale price in the local currency on an exchange in the
country of origin. Foreign currency is converted into dollars at current
exchange rates.
o United States Treasury securities and other obligations issued or guaranteed
by the United States Government, its agencies or instrumentalities are valued
at representative quoted prices.
o Long-term (i.e., maturing in more than a year) publicly traded corporate
bonds are valued at prices obtained from a bond pricing service of a major
dealer in bonds when such prices are available; however, in circumstances
where it is deemed appropriate to do so, an over-the-counter or exchange
quotation may be used.
o Short-term debt securities maturing in 60 days or less are valued at
amortized cost, which approximates market value. Short-term debt securities
maturing in more than 60 days are valued at representative quoted prices. The
Funds can acquire short-term debt securities directly or through the
acquisition of units in our Separate Account No. 2A. See PART III --
EQUITABLE LIFE AND ITS FUNDS in the Prospectus.
o Convertible preferred stocks listed on national securities exchanges are
valued as of their last sale price or, if there is no last sale, at the
latest available bid price.
o Convertible bonds and unlisted convertible preferred stocks are valued at bid
prices obtained from one or more major dealers in such securities; where
there is a discrepancy between dealers, values may be adjusted based on
recent premium spreads to the underlying common stock.
o The unit value of Separate Account No. 2A is calculated each day the New York
Stock Exchange is open for trading by dividing (i) the value of the portfolio
securities and other assets of Separate Account No. 2A at the close of the
business on that day (before giving effect to amounts contributed or
withdrawn during that day), by (ii) the total number of units outstanding at
the close of business on the preceding day. Separate Account No. 2A invests
in short-term securities which mature in 60 days or less from the date of
purchase or are subject to a repurchase agreement requiring repurchase in 60
days or less. The assets of Separate Account No. 2A are valued as described
with respect to the Separate Accounts.
The Unit value for an Investment Fund of Separate Account No. 51 for any
Business Day (together with any preceding non-Business Days (VALUATION PERIOD)
is equal to the Unit value for the preceding Valuation Period multiplied by the
net investment factor for that Investment Fund for that Valuation Period. The
net investment factor for a Valuation Period is
(a\b) - c
where
a is the value of the Investment Fund's shares of the corresponding Portfolio
at the end of the Valuation Period before giving effect to any amounts
allocated to or withdrawn from the Investment Fund for the Valuation Period.
For this purpose, we use the share value reported to us by the Trust. This
share value is after deduction for investment advisory fees and other
expenses of the Trust.
b is the value of the Investment Fund's shares of the corresponding Portfolio
at the end of the preceding Valuation Period (after any amounts are allocated
or withdrawn for that Valuation Period).
c is the daily factor for the Separate Account Administrative Charge multiplied
by the number of calendar days in the Valuation Period.
Our investment officers and the Trust's investment adviser determine in good
faith the fair value of securities and other assets that do not have a readily
available market price in accordance with accepted accounting practices and
applicable laws and regulations.
See PART III -- EQUITABLE LIFE AND ITS FUNDS in the Prospectus.
SUMMARY OF UNIT VALUES
All of the Funds were established by us pursuant to the New York Insurance Law.
The Bond, Balanced, Common Stock and Aggressive Stock Funds were established in
1981, 1979, 1969 and 1969, respectively. We show in the tables below the Unit
values of these Funds on the last Business Day of each year since each Fund
began operations. However, Units in the Funds were not made available under RIA
until subsequent dates.
5
<PAGE>
Prior to June 1, 1994, the Unit values quoted for the Bond, Balanced, Common
Stock and Aggressive Stock Funds did not reflect the deduction of the Investment
Management and Financial Accounting Fee. That fee was assessed by reducing the
number of Units that the employer plan had in these Funds. The Unit values shown
for the periods included in the following table through the last business day of
December, 1993 reflect the actual performance of the Funds before the Investment
Management and Financial Accounting Fee had been reflected in their computation.
The Investment Management and Financial Accounting Fee is reflected in Unit
values for the last business day of 1994 and 1995.
We established the Growth Investors, Conservative Investors and Global Investors
Funds as Investment Funds of Separate Account No. 51 in 1993. The Money Market,
Intermediate Government Securities, Quality Bond, High Yield, Growth & Income
and Equity Index Funds were established as Investment Funds of Separate Account
No. 51 in 1994 and the International Fund was established on September 1, 1995.
The tables below set forth the Unit values as of the end of each year since each
Fund began operations.
See GENERAL in this SAI. In computing the Unit values, no provisions have been
made for the effect of taxes on income and gains or upon distribution.
THE UNIT VALUES REFLECT THOSE CHARGES AND FEES AS DESCRIBED IN THE RIA
PROSPECTUS UNDER PART II. ALSO DESCRIBED IN PART II ARE CHARGES AND FEES WHICH
ARE PAID BY THE REDUCTION OF THE NUMBER OF UNITS CREDITED TO AN EMPLOYER PLAN
UNDER RIA.
6
<PAGE>
The following Unit values are provided to demonstrate the changes for the period
shown.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
BOND FUND
(SEPARATE ACCOUNT NO. 13 -- POOLED)
- ------------------------------------------------------------------------------------------------------------------------------
Last Business Last Business
Day of Fund Day of Fund
December Unit Value December Unit Value
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1981 $11.11 1989 $29.59
1982 14.18 1990 32.07
1983 15.15 1991 36.89
1984 17.36 1992 39.31
1985 20.85 1993 43.14
1986 23.85 1994 42.35*
1987 24.35 1995 48.91*
1988 25.99
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND
(SEPARATE ACCOUNT NO. 10 -- POOLED)
- ------------------------------------------------------------------------------------------------------------------------------
Last Business Last Business
Day of Fund Day of Fund
December Unit Value December Unit Value
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1979 $11.17 1988 $43.14
1980 16.32 1989 54.84
1981 15.41 1990 54.75
1982 22.32 1991 77.72
1983 26.13 1992 75.90
1984 26.74 1993 85.85
1985 33.66 1994 78.77*
1986 39.31 1995 94.86*
1987 37.40
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK FUND
(SEPARATE ACCOUNT NO. 4 -- POOLED)
- ------------------------------------------------------------------------------------------------------------------------------
Last Business Last Business
Day of Fund Day of Fund
December Unit Value December Unit Value
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1969 $15.47 1983 $ 78.26
1970 15.87 1984 76.85
1971 20.18 1985 102.00
1972 25.40 1986 116.67
1973 23.46 1987 123.90
1974 17.06 1988 145.61
1975 21.94 1989 211.73
1976 26.01 1990 188.63
1977 23.79 1991 288.23
1978 26.56 1992 293.22
1979 35.21 1993 353.07
1980 52.91 1994 346.92*
1981 51.22 1995 457.41*
1982 64.94
</TABLE>
- ----------------
* The 1994 and 1995 Unit values reflect the deduction of the Investment
Management and Financial Accounting Fee.
7
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
AGGRESSIVE STOCK FUND
(SEPARATE ACCOUNT NO. 3 -- POOLED)
- ------------------------------------------------------------------------------------------------------------------------------
Last Business Last Business
Day of Fund Day of Fund
December Unit Value December Unit Value
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1969 $ 8.69 1983 $ 36.05
1970 7.26 1984 32.41
1971 8.63 1985 38.45
1972 9.73 1986 39.27
1973 7.07 1987 38.53
1974 4.72 1988 39.48
1975 6.71 1989 58.31
1976 7.91 1990 63.79
1977 7.52 1991 120.00
1978 8.95 1992 116.98
1979 14.66 1993 135.42
1980 23.81 1994 129.95*
1981 20.76 1995 170.67*
1982 27.45
</TABLE>
- ----------------
*The 1994 and 1995 Unit value reflects the deduction of the Investment
Management and Financial Accounting Fee.
- --------------------------------------------------------------------------------
MONEY MARKET FUND
(SEPARATE ACCOUNT NO. 51)
- --------------------------------------------------------------------------------
Last Business
Day of Fund
December Unit Value
- --------------------------------------------------------------------------------
1994 $102.65
1995 108.49
- --------------------------------------------------------------------------------
INTERMEDIATE GOVERNMENT SECURITIES FUND
(SEPARATE ACCOUNT NO. 51)
- --------------------------------------------------------------------------------
Last Business
Day of Fund
December Unit Value
- --------------------------------------------------------------------------------
1994 $ 98.94
1995 112.07
- --------------------------------------------------------------------------------
QUALITY BOND FUND
(SEPARATE ACCOUNT NO. 51)
- --------------------------------------------------------------------------------
Last Business
Day of Fund
December Unit Value
- --------------------------------------------------------------------------------
1994 $ 99.83
1995 116.76
- --------------------------------------------------------------------------------
HIGH YIELD FUND
(SEPARATE ACCOUNT NO. 51)
- --------------------------------------------------------------------------------
Last Business
Day of Fund
December Unit Value
- --------------------------------------------------------------------------------
1994 $ 98.99
1995 118.64
- --------------------------------------------------------------------------------
8
<PAGE>
- --------------------------------------------------------------------------------
GROWTH & INCOME FUND
(SEPARATE ACCOUNT NO. 51)
- --------------------------------------------------------------------------------
Last Business
Day of Fund
December Unit Value
- --------------------------------------------------------------------------------
1994 $ 99.81
1995 123.78
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
(SEPARATE ACCOUNT NO. 51)
- --------------------------------------------------------------------------------
Last Business
Day of Fund
December Unit Value
- --------------------------------------------------------------------------------
1994 $101.71
1995 138.75
- --------------------------------------------------------------------------------
GLOBAL FUND
(SEPARATE ACCOUNT NO. 51)
- --------------------------------------------------------------------------------
Last Business
Day of Fund
December Unit Value
- --------------------------------------------------------------------------------
1994 $ 99.84
1995 118.56
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
(SEPARATE ACCOUNT NO. 51)
- --------------------------------------------------------------------------------
Last Business
Day of Fund
December Unit Value
- --------------------------------------------------------------------------------
1995 $104.60
- --------------------------------------------------------------------------------
CONSERVATIVE INVESTORS FUND
(SEPARATE ACCOUNT NO. 51)
- --------------------------------------------------------------------------------
Last Business
Day of Fund
December Unit Value
- --------------------------------------------------------------------------------
1994 $ 99.83
1995 120.14
- --------------------------------------------------------------------------------
GROWTH INVESTORS FUND
(SEPARATE ACCOUNT NO. 51)
- --------------------------------------------------------------------------------
Last Business
Day of Fund
December Unit Value
- --------------------------------------------------------------------------------
1994 $ 99.52
1995 125.70
MONEY MARKET YIELD INFORMATION
The Money Market Fund calculates yield information for seven-day periods. The
seven-day current yield calculation is based on a hypothetical employer plan
with one Unit at the beginning of the period. To determine the seven-day rate of
return, the net change in the Unit value is computed by subtracting the Unit
value at the beginning of the period from a Unit value, exclusive of capital
changes, at the end of the period.
The net change is then reduced by the average Ongoing Operations Fee factor
(explained below). This reduction is made to recognize the deduction of the
Ongoing Operations Fee which is not reflected in the Unit value. See
9
<PAGE>
ONGOING OPERATIONS FEE IN PART II -- CHARGES AND FEES of the prospectus.
Accumulation Unit Values reflect all other accrued expenses of the Money Market
Fund.
The adjusted net change is divided by the Unit value at the beginning of the
period to obtain the adjusted base period rate of return. This seven-day
adjusted base period return is then multiplied by 365/7 to produce an annualized
seven-day current yield figure carried to the nearest one-hundredth of one
percent.
The actual dollar amount of the Ongoing Operations Fee that is deducted from the
Money Market Fund will vary for each employer plan depending upon how the plan's
balance is allocated among the Investment Options. To determine the effect of
the Ongoing Operations Fee on the yield, we start with the total dollar amount
of the fees deducted from the Fund on the last Business Day of the prior month.
This amount is multiplied by 7/30.417 to produce an average Ongoing Operations
Fee factor which is used in all weekly yield computations for the ensuing
quarter. The average Ongoing Operations Fee factor and the Separate Account
Administrative Charge is then divided by the number of Money Market Fund Units
as of the end of the prior month, and the resulting quotient is deducted from
the net change in Unit value for the seven-day period.
The effective yield is obtained by modifying the current yield to give effect to
the compounding nature of the Money Market Fund's investments, as follows: the
unannualized adjusted base period return is compounded by adding one to the
adjusted base period return, raising the sum to a power equal to 365 divided by
7, and subtracting one from the result, i.e., effective yield = (base period
return + 1) 365/7-1.
The Money Market Fund yield will fluctuate daily. Accordingly, yields for any
given period are not necessarily representative of future results. In addition,
the value of Units of the Money Market Fund will fluctuate and not remain
constant.
The Money Market Fund yield reflects charges that are not normally reflected in
the yields of other investments and therefore may be lower when compared with
yields of other investments. Money Market Fund yields should not be compared to
the return on fixed rate investments which guarantee rates of interest for
specified periods, such as the Guaranteed Interest Account or bank deposits. The
yield should not be compared to the yield of money market funds made available
to the general public because their yields usually are calculated on the basis
of a constant $1 price per share and they pay earnings in dividends which accrue
on a daily basis.
The Money Market Fund's seven-day current yield for the RIA Contracts was 4.60%
for the period ended December 31, 1995. The effective yield for that period was
4.71%. Because these yields reflect the deduction of the Ongoing Operations Fee
and the Separate Account Administrative Charge, they are lower than the
corresponding yield figures for the Money Market Portfolio which reflect only
the deduction of Trust-level expenses.
BROKERAGE FEES AND CHARGES FOR SECURITIES TRANSACTIONS
We discuss in the Prospectus that we are the investment manager of the Bond,
Balanced, Common Stock and Aggressive Stock Funds. As the investment manager of
these Funds, we invest and reinvest the assets of these Funds in a manner
consistent with the policies described in the Prospectus. In providing these
services we currently use the personnel and facilities of our majority-owned
subsidiary, Alliance, for portfolio selection and transaction services,
including arranging the execution of portfolio transactions. Alliance is also
the investment manager for the Trust. Information on brokerage fees and charges
for securities transactions for the Trust's Portfolios is provided in the Trust
prospectus. See PART III -- EQUITABLE LIFE AND ITS FUNDS --INVESTMENT MANAGEMENT
in the Prospectus.
The Bond, Balanced, Common Stock and Aggressive Stock Funds are charged for
securities brokers commissions, transfer taxes and other fees and expenses
relating to their operation. Transactions in equity securities for a Fund are
executed primarily through brokers which receive a commission paid by the Fund.
Brokers are selected by Alliance. Alliance seeks to obtain the best price and
execution of all orders placed for the portfolio of the Funds, considering all
the circumstances. If transactions are executed in the over-the-counter market
Alliance will deal with the principal market makers, unless more favorable
prices or better execution is otherwise obtainable. There are occasions on which
portfolio transactions for the Funds may be executed as part of concurrent
authorizations to purchase or sell the same security for certain other accounts
or clients advised by Alliance. Although these concurrent authorizations
potentially can be either advantageous or disadvantageous to the Funds, they are
effected only when it is believed that to do so is in the best interest of the
Funds. When these concurrent authorizations occur, the objective is to allocate
the executions among the accounts or clients in a fair manner.
We try to choose only brokers which we believe will obtain the best prices and
executions on securities transactions. Subject to this general requirement, we
also consider the amount and quality of securities research services provided by
a broker. Typical research services include general economic information and
analyses and specific information on and analyses of companies, industries and
markets. Factors in evaluating research services include the diversity of
sources used by the broker and the broker's experience, analytical ability and
professional stature.
The receipt of research services from brokers tends to reduce our expenses in
managing the Bond, Balanced, Common Stock and Aggressive Stock Funds. This is
taken into account when setting the expense charges. Brokers who provide
research services may charge
10
<PAGE>
somewhat higher commissions than those who do not. However, we will select only
brokers whose commissions we believe are reasonable in all the circumstances.
We periodically evaluate the services provided by brokers and prepare internal
proposals for allocating among those various brokers business for all the
accounts we manage or advise. That evaluation involves consideration of the
overall capacity of the broker to execute transactions, its financial condition,
its past performance and the value of research services provided by the broker
in servicing the various accounts advised or managed by us. Generally, we do not
tell brokers that we will try to allocate a particular amount of business to
them. We do occasionally let brokers know how their performance has been
evaluated.
Research information obtained by us may be used in servicing all clients or
accounts under our management, including our general account. Similarly, not all
research provided by a broker or dealer with which the Funds transact business
will necessarily be used in connection with those Funds.
Transactions for the Bond, Balanced, Common Stock and Aggressive Stock Funds in
the over-the-counter market are normally executed as principal transactions with
a dealer that is a principal market maker in the security, unless a better price
or better execution can be obtained from another source. Under these
circumstances, the Funds pay no commission. Similarly, portfolio transactions in
money market and debt securities will normally be executed through dealers or
underwriters under circumstances where the Fund pays no commission.
When making securities transactions for the Bond, Balanced, Common Stock and
Aggressive Stock Funds that do not involve paying a brokerage commission (such
as the purchase of short-term debt securities), we seek to obtain prompt
execution in an effective manner at the best price. Subject to this general
objective, we may give orders to dealers or underwriters who provide investment
research. None of the Funds will pay a higher price, however, and the fact that
we may benefit from such research is not considered in setting the expense
charges.
In addition to using brokers and dealers to execute portfolio securities
transactions for clients or accounts we manage, we may enter into other types of
business transactions with brokers or dealers. These other transactions will be
unrelated to allocation of the Funds' portfolio transactions.
We own Donaldson, Lufkin & Jenrette Inc. (DLJ). A DLJ subsidiary, Donaldson,
Lufkin & Jenrette Securities Corporation (DLJ SECURITIES CORP.), is one of the
nation's largest investment banking and securities firms. Another DLJ
subsidiary, Autranet, Inc., is a securities broker that markets independently
originated research to institutions. Through the Pershing Division of DLJ
Securities Corp., DLJ supplies correspondent services, including order
execution, securities clearance and other financial services to numerous
independent regional securities firms and banks.
To the extent permitted by law, and consistent with the Fund transaction
practices discussed in this SAI and the Prospectus, the Bond, Balanced, Common
Stock and Aggressive Stock Funds may engage in securities and other transactions
with the above entities or may invest in shares of the investment companies with
which those entities have affiliations. During 1993, there were no transactions
effected through DLJ subsidiaries and therefore no commissions were paid.
For 1995, 1994 and 1993, total brokerage commissions for Separate Account No. 10
- -- Pooled were $1,016,342, $801,704 and $820,212, respectively; for Separate
Account 4 -- Pooled were $6,044,623, $4,738,796 and $3,407,006, respectively;
and for Separate Account No. 3 -- Pooled were $1,547,073, $908,990 and $616,015,
respectively. For 1995, total brokerage commissions for Separate Account No. 13
- -- Pooled were $0. During 1995, commissions of $979,372, $5,731,568 and
$1,501,282 were paid to brokers providing research services to Separate Account
No. 10 -- Pooled, Separate Account No. 4 -- Pooled and Separate Account No. 3 --
Pooled, respectively, on portfolio transactions of $511,780,144, $3,120,414,654
and $606,654,623, respectively.
ONGOING OPERATIONS FEE
We determine the Ongoing Operations Fee based on the combined net balances of an
employer plan in all the Investment Options (including any outstanding loan
balances) at the close of business on the last Business Day of each month. For
employer plans that adopted RIA on or before February 9, 1986, we use the rate
schedule set forth below, and apply it to the employer plan balances at the
close of business on the last Business Day of the following month. For employer
plans that adopted RIA after February 9, 1986 we use the rate schedule set forth
in the Prospectus. See PART II -- CHARGES AND FEES in the Prospectus.
COMBINED BALANCE MONTHLY
OF INVESTMENT OPTIONS RATE
- ----------------------------------------------------------------
First $ 150,000 1/12 of 1.25%
Next $ 350,000 1/12 of 1.00%
Next $ 500,000 1/12 of 0.75%
Next $1,500,000 1/12 of 0.50%
Over $2,500,000 1/12 of 0.25%
11
<PAGE>
- --------------------------------------------------------------------------------
PART II -- MANAGEMENT FOR THE BOND, BALANCED, COMMON
STOCK AND AGGRESSIVE STOCK FUNDS AND EQUITABLE LIFE
- --------------------------------------------------------------------------------
FUNDS
In the Prospectus we give information about us, our Bond, Balanced, Common Stock
and Aggressive Stock Funds and how we, together with Alliance, provide
investment management for the investments and operations of these Funds. See
PART III -- EQUITABLE LIFE AND ITS FUNDS in the Prospectus. The amounts of the
investment management and financial accounting fees we received from employer
plans participating through registered Contracts in the Balanced, Common Stock
and Aggressive Stock Funds in 1995 were $35,578, $55,579 and $20,636
respectively; in 1994 were $36,984, $46,821 and $16,789, respectively; in 1993
were $34,038, $38,179, and $13,873, respectively. The amount of such fees
received under the Bond Fund in 1995, 1994 and 1993 were $455, $219 and $70,
respectively.
DISTRIBUTION
Equico Securities, Inc. (Equico), a wholly-owned subsidiary of Equitable Life,
on or about May 1, 1996 will change its name to EQ Financial Consultants, Inc.
Equico performs all sales functions for the Separate Accounts and may be deemed
to be their principal underwriter under the 1940 Act and is also the principal
underwriter of the Trust. Equico is registered with the SEC as a broker-dealer
under the Securities Exchange Act of 1934 (EXCHANGE ACT) and is a member of the
National Association of Securities Dealers, Inc. Equico's principal business
address is 1755 Broadway, New York, New York 10019. The contracts are
distributed through Equitable's Agents who are registered representatives of
Equico.
EQUITABLE LIFE
We are managed by a Board of Directors. See PART III -- EQUITABLE LIFE AND ITS
FUNDS in the Prospectus. Our Directors, certain of our executive officers and
their principal occupations are set forth below.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
DIRECTORS
Name Principal Occupation
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Claude Bebear Chairman and Chief Executive Officer, AXA
Christopher Brocksom Chief Executive Officer, AXA Equity and Law Life Assurance Society
Francoise Colloc'h Executive Vice President--Culture--Management--Communications, AXA
*Henri de Castries Executive Vice President--Finance, AXA
Joseph L. Dionne Chairman and Chief Executive Officer, The McGraw-Hill Companies
*William T. Esrey Chairman and Chief Executive Officer, Sprint Corporation
Jean-Rene Fourtou Chairman and Chief Executive Officer, Rhone-Poulenc, S.A.
Norman C. Francis President, Xavier University of Louisiana
Donald J. Greene Counselor-at-Law, Partner, LeBoeuf, Lamb, Greene & MacRae
Anthony J. Hamilton Chairman and Chief Executive Officer, Fox-Pitt, Kelton Limited
John T. Hartley Retired Chairman and Chief Executive Officer, Harris Corporation
*John H. F. Haskell, Jr. Director and Managing Director, Dillon, Read & Co., Inc.
*W. Edwin Jarmain President, Jarmain Group, Inc.
Don Johnston Retired Chairman and Chief Executive Officer, JWT Group, Inc.
*Winthrop Knowlton Chairman, Knowlton Brothers, Inc.
Arthur L. Liman Counselor-at-Law, Partner, Paul, Weiss, Rifkind, Wharton & Garrison
George T. Lowy Counselor-at-Law, Partner, Cravath, Swaine & Moore
Didier Pineau-Valencienne Chairman and Chief Executive Officer, Schneider S.A.
*George J. Sella, Jr. Retired Chairman and Chief Executive Officer, American Cyanamid Company
*Dave H. Williams Chairman and Chief Executive Officer, Alliance Capital Management, L.P.
<FN>
- ---------------
* MEMBERS OF OUR INVESTMENT COMMITTEE
</FN>
</TABLE>
12
<PAGE>
Unless otherwise indicated, the following persons have been involved in the
management of Equitable Life in various executive positions during the last five
years.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
OFFICER-DIRECTORS
Name Principal Occupation
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
*James M. Benson President and Chief Executive Officer; prior thereto, President, Management
Compensation Group
*William T. McCaffrey Senior Executive Vice President and Chief Operating Officer,
Equitable Life
*Joseph P. Melone President and Chief Executive Officer, The Equitable Companies
Incorporated; Chairman of the Board, Equitable Life prior thereto,
President, The Prudential Insurance Company of America
- --------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
Name Principal Occupation
- --------------------------------------------------------------------------------------------------------------------------------
Jerry M. de St. Paer Senior Executive Vice President and Chief Financial Officer
Robert E. Garber Executive Vice President and General Counsel
Peter D. Noris Executive Vice President and Chief Investment Officer; prior thereto
Vice President / Manager Insurance Company Investment Strategies
Group, Salomon Brothers, Inc.
Jose Suquet Executive Vice President and Chief Agency Officer
Gordon G. Dinsmore Senior Vice President
Alvin H. Fenichel Senior Vice President and Controller
J. Thomas Liddle, Jr. Senior Vice President and Chief Valuation Actuary
Kevin R. Byrne Vice President and Treasurer
Paul J. Flora Vice President and Auditor
Pauline Sherman Vice President, Secretary and Associate General Counsel
- --------------------------------------------------------------------------------------------------------------------------------
<FN>
- ---------------
* MEMBERS OF OUR INVESTMENT COMMITTEE
</FN>
</TABLE>
13
<PAGE>
- --------------------------------------------------------------------------------
PART III -- FINANCIAL STATEMENTS
INDEX
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Page
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
SEPARATE ACCOUNT NOS. 13
(POOLED), 10(POOLED), 4(POOLED), Report of Independent Accountants --...............................................FSA-1
3(POOLED) AND 51 (POOLED)
- -----------------------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT Statement of Assets and Liabilities, December 31, 1995............................ FSA-2
NO. 13(POOLED) Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1995 and 1994............................................ FSA-3
Portfolio of Investments, December 31, 1995....................................... FSA-4
- -----------------------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT Statement of Assets and Liabilities, December 31, 1995............................ FSA-5
NO. 10(POOLED) Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1995 and 1994............................................ FSA-6
Portfolio of Investments, December 31, 1995....................................... FSA-7
- -----------------------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT Statement of Assets and Liabilities, December 31, 1995............................ FSA-15
NO. 4(POOLED) Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1995 and 1994............................................ FSA-16
Portfolio of Investments, December 31, 1995....................................... FSA-17
- -----------------------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT Statement of Assets and Liabilities, December 31, 1995............................ FSA-21
NO. 3(POOLED) Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1995 and 1994............................................ FSA-22
Portfolio of Investments, December 31, 1995....................................... FSA-23
- -----------------------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT Statement of Assets and Liabilities, December 31, 1995............................ FSA-27
NO. 51(POOLED) The Money Market and Intermediate Government Securities
(THE MONEY MARKET, Funds Statements of Operations and Changes in Net Assets
INTERMEDIATE GOVERNMENT for the Year Ended December 31, 1995 and for the Period
SECURITIES, QUALITY BOND, June 1, 1994 to December 31, 1994................................................. FSA-30
HIGH YIELD, GROWTH & INCOME, The Quality Bond and High Yield Funds Statements of
EQUITY INDEX, GLOBAL, Operations and Changes in Net Assets for the Period
INTERNATIONAL, CONSERVATIVE June 1, 1994 to December 31, 1995................................................. FSA-31
INVESTORS AND GROWTH The Growth & Income and Equity Index Funds Statements
INVESTORS FUNDS) of Operations and Changes in Net Assets for the Year
Ended December 31, 1995 and for the Period June 1, 1994
to December 31, 1994.............................................................. FSA-32
The Global Fund Statements of Operations and Changes in Net
Assets for the Years Ended December 31, 1995 and 1994,
and the International Fund Statement of Operations and
Changes in Net Assets for the Period September 19, 1995
to December 31, 1995.............................................................. FSA-33
The Conservative Investors and Growth Investors Funds
Statements of Operations and Changes in Net Assets for
the Years Ended December 31, 1995 and 1994........................................ FSA-34
- -----------------------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT NOS. 13 Notes to Financial Statements..................................................... FSA-35
(POOLED), 10(POOLED),
4(POOLED), 3(POOLED)
AND 51(POOLED)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
Page
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
THE EQUITABLE LIFE ASSURANCE Report of Independent Accountants--............................................... F-1
SOCIETY OF THE UNITED STATES Independent Auditors' Report--.................................................... F-2
Consolidated Balance Sheets as of December 31, 1995 and 1994 ..................... F-3
Consolidated Statements of Earnings for the Years Ended
December 31, 1995, 1994 and 1993 ................................................. F-4
Consolidated Statement of Shareholder's Equity Years Ended
December 31, 1995, 1994 and 1993 ................................................. F-5
Consolidated Statements of Cash Flows for the Years Ended
December 31, 1995, 1994 and 1993 ................................................. F-6
Notes to Consolidated Financial Statements ....................................... F-7
- -----------------------------------------------------------------------------------------------------------------------------------
The financial statements of the Fundsreflect fees, charges and other expenses of
the Separate Accounts applicable to Contracts under RIA as in effect during the periods
covered, as well as the expense charges made in accordance with the terms of all
other contracts participating in the respective Funds.
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
================================================================================
SEPARATE ACCOUNT NOS. 13 (POOLED), 10 (POOLED), 4 (POOLED),
3 (POOLED) AND 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Board of Directors of
The Equitable Life Assurance Society of the United States
and the Participants in the
Retirement Investment Account
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and
changes in net assets present fairly, in all material respects, the financial
position of Separate Account Nos. 13, 10, 4 and 3, and Money Market Fund,
Intermediate Government Securities Fund, Quality Bond Fund, High Yield Fund,
Growth & Income Fund, Equity Index Fund, Global Fund, International Fund,
Conservative Investors Fund and Growth Investors Fund (constituting Separate
Account No. 51, hereafter referred to as "Separate Account No. 51") of The
Equitable Life Assurance Society of the United States ("Equitable Life") at
December 31, 1995 and each of their results of operations and changes in net
assets for each of the two years in the period then ended for Separate Account
Nos. 13, 10, 4 and 3, and for the periods indicated for Separate Account No. 51,
in conformity with generally accepted accounting principles. These financial
statements are the responsibility of Equitable Life's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which 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, assessing the accounting principles used and significant estimates
made by management and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1995 by correspondence with the custodian and brokers, the
application of alternative auditing procedures where confirmations from brokers
were not received and confirmation of shares owned in The Hudson River Trust
with the transfer agent, provide a reasonable basis for the opinion expressed
above.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The selected per unit information
(appearing under "Condensed Financial Information" in the prospectus supplement)
is presented for the purpose of satisfying regulatory reporting requirements and
is not a required part of the basic financial statements. Such selected per unit
information has been subjected to auditing procedures applied during the audit
of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
PRICE WATERHOUSE LLP
New York, NY
February 7, 1996
FSA-1
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 13 (POOLED) (THE BOND FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statement of Assets and Liabilities
December 31, 1995
- --------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments (Notes 2 and 3):
Long-term debt securities -- at value (amortized cost: $194,022,796)....................... $200,668,959
Participation in Separate Account No. 2A -- at amortized cost, which
approximates market value, equivalent to 33,456 units at $241.89......................... 8,092,702
Cash ......................................................................................... 2,073
Receivables:
Interest................................................................................... 4,890,148
Other...................................................................................... 17,217
- --------------------------------------------------------------------------------------------------------------
Total assets............................................................................. 213,671,099
- --------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Due to Equitable Life's General Account.................................................... 35,921
Investment management fees payable......................................................... 801
Accrued expenses.............................................................................. 32,077
- --------------------------------------------------------------------------------------------------------------
Total liabilities........................................................................ 68,799
- --------------------------------------------------------------------------------------------------------------
NET ASSETS.................................................................................... $213,602,300
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-2
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 13 (POOLED) (THE BOND FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations and Changes in Net Assets
- --------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
1995 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
INVESTMENT INCOME -- Interest (Note 2)................................. $ 16,735,643 $ 17,244,470
EXPENSES-- (NOTE 4).................................................... (1,643,257) (1,847,130)
- --------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME.................................................. 15,092,386 15,397,340
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 2):
Realized gain (loss) from security transactions ....................... 12,461,336 (22,020,938)
- --------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investments:
Beginning of year................................................... (2,530,637) (2,161,801)
End of year......................................................... 6,646,163 (2,530,637)
- --------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation ........................ 9,176,800 (368,836)
- --------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ................ 21,638,136 (22,389,774)
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets attributable to operations........... 36,730,522 (6,992,434)
- --------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions.......................................................... 26,805,952 73,568,948
Withdrawals............................................................ (159,649,077) (99,090,582)
- --------------------------------------------------------------------------------------------------------------
Decrease in net assets attributable to contributions and withdrawals... (132,843,125) (25,521,634)
- --------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS ................................................ (96,112,603) (32,514,068)
NET ASSETS -- BEGINNING OF YEAR ....................................... 309,714,903 342,228,971
- --------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR ............................................. $213,602,300 $309,714,903
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-3
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
SEPARATE ACCOUNT NO. 13 (POOLED) (THE BOND FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995
- ---------------------------------------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 3)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES (3.8%)
PRINTING, PUBLISHING & BROADCASTING
Tele-Communications, Inc.
8.0%, 2005 ........................................................ $ 7,700,000 $ 8,173,473
-------------
CREDIT-SENSITIVE
BANKS (12.5%)
Abbey National PLC
6.69%, 2005........................................................ 3,750,000 3,891,863
Chemical Banking Corp.
8.625% Sub. Deb., 2002............................................. 7,000,000 7,916,860
Citicorp
7.125%, 2005....................................................... 6,000,000 6,379,044
First Union Corp.
7.05%, 2005........................................................ 8,000,000 8,417,440
-------------
26,605,207
-------------
FINANCIAL SERVICES (3.3%)
Lehman Brothers Holdings, Inc.
7.125%, 2003....................................................... 6,850,000 7,067,556
-------------
INSURANCE (3.3%)
Prudential Insurance America
6.875%, 2003....................................................... 7,000,000 7,119,980
-------------
MORTGAGE-RELATED (5.3%)
Premier Auto Trust
7.15% Series 95-A5, 1999........................................... 11,000,000 11,254,320
-------------
U.S. GOVERNMENT (65.7%)
U.S. Treasury
5.625% Note, 1997.................................................. 17,000,000 17,111,554
7.25% Note, 1998................................................... 27,000,000 28,071,549
7.75% Note, 1999................................................... 44,135,000 47,914,059
5.875% Note, 2000.................................................. 11,000,000 11,226,875
5.75% Note, 2003................................................... 16,000,000 16,194,992
5.875% Note, 2005.................................................. 13,000,000 13,292,500
6.5% Note, 2005.................................................... 6,230,000 6,636,894
-------------
140,448,423
-------------
TOTAL CREDIT-SENSITIVE (90.1%)........................................ 192,495,486
-------------
TOTAL LONG-TERM DEBT SECURITIES (93.9%)
(Amortized Cost $194,022,796)...................................... 200,668,959
-------------
PARTICIPATION IN SEPARATE ACCOUNT NO. 2A,
at amortized cost, which approximates market value, equivalent
to 33,456 units at $241.89 each (3.8%)............................. 8,092,702
-------------
TOTAL INVESTMENTS (97.7%)
(Amortized Cost $202,115,498)...................................... 208,761,661
CASH AND RECEIVABLES LESS LIABILITIES (2.3%).......................... 4,840,639
-------------
NET ASSETS (100.0%)................................................... $213,602,300
=============
</TABLE>
See Notes to Financial Statements.
FSA-4
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 10 (POOLED) (THE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statement of Assets and Liabilities
December 31, 1995
- --------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments (Notes 2 and 3):
Common stocks -- at value (cost: $169,295,717)........................................... $194,746,029
Preferred stocks -- at value (cost: $3,966,336).......................................... 4,441,963
Long-term debt securities -- at value (amortized cost: $150,540,283)..................... 158,739,835
Participation in Separate Account No. 2A -- at amortized cost, which
approximates market value, equivalent to 59,604 units at $241.89....................... 14,417,728
Cash ....................................................................................... 256,781
Receivables:
Interest................................................................................. 3,239,084
Securities sold.......................................................................... 1,028,693
Dividends................................................................................ 260,201
- --------------------------------------------------------------------------------------------------------------
Total assets........................................................................... 377,130,314
- --------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Securities purchased..................................................................... 1,048,475
Due to Equitable Life's General Account.................................................. 1,666,465
Investment management fees payable....................................................... 3,933
Accrued expenses............................................................................ 227,291
- --------------------------------------------------------------------------------------------------------------
Total liabilities...................................................................... 2,946,164
- --------------------------------------------------------------------------------------------------------------
NET ASSETS.................................................................................. $374,184,150
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-5
<PAGE>
<TABLE>
<CAPTION>
===============================================================================================================
SEPARATE ACCOUNT NO. 10 (POOLED) (THE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations and Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
1995 1994
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
INVESTMENT INCOME (NOTE 2):
Interest................................................................ $ 11,113,819 $ 10,445,862
Dividends............................................................... 3,014,441 3,797,850
- ---------------------------------------------------------------------------------------------------------------
Total................................................................... 14,128,260 14,243,712
EXPENSES-- (NOTE 4)..................................................... (5,349,200) (6,108,541)
- ---------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME................................................... 8,779,060 8,135,171
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 2):
Realized gain (loss) from security transactions......................... 16,986,767 (2,337,066)
- ---------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investments:
Beginning of year.................................................... (8,178,659) 41,745,407
End of year.......................................................... 34,125,491 (8,178,659)
- ---------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation.......................... 42,304,150 (49,924,066)
- ---------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS.................. 59,290,917 (52,261,132)
- ---------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets attributable to operations............ 68,069,977 (44,125,961)
- ---------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions........................................................... 65,614,609 104,824,794
Withdrawals............................................................. (153,764,130) (138,822,093)
- ---------------------------------------------------------------------------------------------------------------
Decrease in net assets attributable to contributions and withdrawals.... (88,149,521) (33,997,299)
- ---------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS.................................................. (20,079,544) (78,123,260)
NET ASSETS -- BEGINNING OF YEAR......................................... 394,263,694 472,386,954
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR............................................... $374,184,150 $394,263,694
===============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-6
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 10 (POOLED) (THE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995
- --------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE
SHARES (NOTE 3)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (3.4%)
Freeport-McMoRan, Inc. ................................................ 24,000 $ 888,000
Hercules, Inc. ........................................................ 44,000 2,480,500
IMC Global, Inc. ...................................................... 72,000 2,943,000
Monsanto Co. .......................................................... 51,200 6,272,000
-----------
12,583,500
-----------
CHEMICALS -- SPECIALTY (1.0%)
Morton International, Inc. ............................................ 40,000 1,435,000
UCAR International, Inc.*.............................................. 42,000 1,417,500
Wellman, Inc. ......................................................... 48,500 1,103,375
-----------
3,955,875
-----------
METALS & MINING (0.2%)
Alumax, Inc.*.......................................................... 25,300 774,813
-----------
PAPER (0.2%)
Champion International Corp. .......................................... 16,000 672,000
-----------
TOTAL BASIC MATERIALS (4.8%)........................................... 17,986,188
-----------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.4%)
WMX Technologies, Inc. ................................................ 44,000 1,314,500
-----------
PRINTING, PUBLISHING & BROADCASTING (3.2%)
Cablevision Systems Corp. (Class A)*................................... 35,500 1,925,875
Clear Channel Communications, Inc.*.................................... 67,600 2,982,850
Comcast Corp. (Class A) SPL............................................ 82,500 1,500,469
Infinity Broadcasting Corp. (Class A)*................................. 35,650 1,327,962
Liberty Media Group (Class A)*......................................... 85,000 2,284,375
Tele-Communications, Inc. (Class A)*................................... 60,000 1,192,500
Tele-Communications International, Inc.*............................... 5,000 113,750
Time Warner, Inc. ..................................................... 19,000 719,625
-----------
12,047,406
-----------
PROFESSIONAL SERVICES (0.2%)
Ideon Group, Inc. ..................................................... 82,000 830,250
-----------
TRUCKING, SHIPPING (0.1%)
Sea Containers Ltd. ................................................... 30,000 521,250
-----------
TOTAL BUSINESS SERVICES (3.9%)......................................... 14,713,406
-----------
CAPITAL GOODS
AEROSPACE (0.4%)
Boeing Co. ............................................................ 10,000 783,750
Coltec Industries, Inc.* .............................................. 55,000 639,375
-----------
1,423,125
-----------
BUILDING MATERIALS & FOREST PRODUCTS (0.3%)
Martin Marietta Materials, Inc. ....................................... 50,000 1,031,250
-----------
BUILDING & CONSTRUCTION (0.2%)
American Standard Companies, Inc.* .................................... 30,000 840,000
-----------
Machinery (0.4%)
Solectron Corp.* ...................................................... 34,100 1,504,663
-----------
TOTAL CAPITAL GOODS (1.3%)............................................. 4,799,038
-----------
</TABLE>
FSA-7
<PAGE>
<TABLE>
<CAPTION>
===============================================================================================================
SEPARATE ACCOUNT NO. 10 (POOLED) (THE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Continued)
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE
SHARES (NOTE 3)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS
AIRLINES (0.2%)
Northwest Airlines Corp. (Class A)*....................................... 18,000 $ 918,000
-----------
AUTOS & TRUCKS (0.4%)
Autozone, Inc.*........................................................... 55,000 1,588,125
-----------
FOOD SERVICES, LODGING (0.7%)
La Quinta Motor Inns, Inc. ............................................... 28,000 766,500
McDonald's Corp. ......................................................... 40,000 1,805,000
-----------
2,571,500
-----------
HOUSEHOLD FURNITURE, APPLIANCES (0.2%)
First Brands Corporation.................................................. 12,100 576,263
-----------
LEISURE-RELATED (2.0%)
Carnival Corp. ........................................................... 80,000 1,950,000
Cyrk, Inc.* .............................................................. 56,500 550,875
Disney (Walt) Co. ........................................................ 30,000 1,770,000
ITT Corp. ................................................................ 58,800 3,116,400
-----------
7,387,275
-----------
PHOTO & OPTICAL (0.3%)
Eastman Kodak Co. ........................................................ 17,000 1,139,000
-----------
RETAIL -- GENERAL (0.8%)
Fingerhut Co., Inc. ...................................................... 127,500 1,769,062
Payless Cashways, Inc.* .................................................. 125,000 531,250
Tandy Corp. .............................................................. 15,000 622,500
-----------
2,922,812
-----------
TOTAL CONSUMER CYCLICALS (4.6%)........................................... 17,102,975
-----------
CONSUMER NONCYCLICALS
BEVERAGES (1.9%)
Coca-Cola Co. ............................................................ 20,000 1,485,000
Pepsico, Inc. ............................................................ 100,000 5,587,500
-----------
7,072,500
-----------
DRUGS (4.0%)
Biogen, Inc.* ............................................................ 10,000 615,000
Centocor, Inc. ........................................................... 33,700 1,040,488
Lilly (Eli) & Co. ........................................................ 25,000 1,406,250
Merck & Co., Inc. ........................................................ 45,000 2,958,750
Pfizer, Inc. ............................................................. 35,000 2,205,000
Pharmacia & Upjohn, Inc. ................................................. 43,595 1,689,306
Schering Plough Corp. .................................................... 40,000 2,190,000
Warner-Lambert Co. ....................................................... 31,300 3,040,012
-----------
15,144,806
-----------
HOSPITAL SUPPLIES & SERVICES (2.8%)
Amsco International, Inc.*................................................ 54,400 809,200
Columbia/HCA Healthcare Corp. ............................................ 70,000 3,552,500
Guidant Corp. ............................................................ 15,000 633,750
Healthsource, Inc.* ...................................................... 54,000 1,944,000
Summit Technology, Inc.*.................................................. 18,000 607,500
United Healthcare Corp. .................................................. 30,000 1,965,000
U.S. Healthcare, Inc. .................................................... 24,000 1,116,000
-----------
10,627,950
-----------
</TABLE>
FSA-8
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 10 (POOLED) (THE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Continued)
- --------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE
SHARES (NOTE 3)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL -- FOOD (0.1%)
Kroger Co.*............................................................. 8,410 $ 315,375
-----------
SOAPS & TOILETRIES (0.9%)
Gillette Corp. ......................................................... 65,000 3,388,125
-----------
TOBACCO (3.6%)
Loews Corp. ............................................................ 40,000 3,135,000
Philip Morris Cos., Inc. ............................................... 112,500 10,181,250
-----------
13,316,250
-----------
TOTAL CONSUMER NONCYCLICALS (13.3%)..................................... 49,865,006
-----------
CREDIT-SENSITIVE
BANKS (0.6%)
NationsBank Corp. ...................................................... 30,000 2,088,750
-----------
FINANCIAL SERVICES (1.2%)
Household International, Inc. .......................................... 15,000 886,875
MBNA Corp. ............................................................. 50,000 1,843,750
Merrill Lynch & Co., Inc. .............................................. 37,000 1,887,000
-----------
4,617,625
-----------
INSURANCE (6.2%)
Aetna Life & Casualty Co. .............................................. 24,000 1,662,000
American International Group, Inc. ..................................... 30,000 2,775,000
CNA Financial Corp.* ................................................... 4,500 510,750
General Re Corp. ....................................................... 7,000 1,085,000
ITT Hartford Group, Inc. ............................................... 46,100 2,230,088
Life Re Corp. .......................................................... 57,500 1,437,500
MGIC Investment Corp. .................................................. 25,000 1,356,250
NAC Re Corp. ........................................................... 30,000 1,080,000
PMI Group, Inc. ........................................................ 27,000 1,221,750
TIG Holdings, Inc. ..................................................... 55,500 1,581,750
Transatlantic Holdings, Inc. ........................................... 25,000 1,834,375
Travelers Group, Inc. .................................................. 102,500 6,444,687
-----------
23,219,150
-----------
UTILITY -- GAS (0.7%)
ENRON Corp. ............................................................ 70,000 2,668,750
-----------
UTILITY -- TELEPHONE (1.4%)
AT&T Corp. ............................................................. 62,000 4,014,500
Telephone & Data Systems, Inc. ......................................... 33,000 1,303,500
-----------
5,318,000
-----------
TOTAL CREDIT-SENSITIVE (10.1%).......................................... 37,912,275
-----------
ENERGY
OIL -- DOMESTIC (1.5%)
Atlantic Richfield Co. ................................................. 17,000 1,882,750
Tom Brown, Inc.* ....................................................... 40,000 585,000
Louis Dreyfus Natural Gas Corp.* ....................................... 62,900 951,363
Louisiana Land & Exploration Corp. ..................................... 25,900 1,110,462
Occidental Petroleum Corp. ............................................. 45,000 961,875
-----------
5,491,450
-----------
RAILROADS (0.3%)
Union Pacific Corp. .................................................... 17,000 1,122,000
-----------
TOTAL ENERGY (1.8%)..................................................... 6,613,450
-----------
</TABLE>
FSA-9
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 10 (POOLED) (THE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Continued)
- --------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE
SHARES (NOTE 3)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY
ELECTRONICS (4.7%)
Altera Corp.*............................................................. 20,500 $ 1,019,875
Applied Materials, Inc. .................................................. 70,000 2,756,250
Arrow Electronics, Inc.* ................................................. 6,549 282,426
Bay Networks, Inc.*....................................................... 43,200 1,776,600
Cisco Systems, Inc.*...................................................... 28,000 2,089,500
General Instrument Corp.*................................................. 55,000 1,285,625
Intel Corp. .............................................................. 50,000 2,837,500
ITT Industries, Inc. ..................................................... 58,800 1,411,200
Lam Research Corp.*....................................................... 13,000 594,750
Motorola, Inc. ........................................................... 10,000 570,000
National Semiconductor Corp.* ............................................ 66,985 1,490,415
3Com Corp.* .............................................................. 32,000 1,492,000
-------------
17,606,141
-------------
OFFICE EQUIPMENT (1.9%)
Ceridian Corp.* .......................................................... 82,400 3,399,000
Compaq Computer Corp.*.................................................... 55,000 2,640,000
Compuware Corp.*.......................................................... 54,700 1,011,950
-------------
7,050,950
-------------
OFFICE EQUIPMENT SERVICES (1.7%)
First Data Corp. ......................................................... 23,000 1,538,125
General Motors Corp. (Class E)............................................ 30,000 1,560,000
Informix Corp.* .......................................................... 12,000 360,000
Microsoft Corp.* ......................................................... 12,000 1,053,000
Oracle Corp.*............................................................. 45,000 1,906,875
-------------
6,418,000
-------------
TELECOMMUNICATIONS (2.9%)
AirTouch Communications, Inc.* ........................................... 86,400 2,440,800
Cox Communications, Inc. (Class A)*....................................... 99,800 1,946,100
Glenayre Technologies, Inc.*.............................................. 10,000 622,500
MCI Communications Corp. ................................................. 134,000 3,500,750
Millicom International Cellular S.A.*..................................... 5,900 179,950
Scientific Atlanta, Inc. ................................................. 80,800 1,212,000
Tellabs, Inc.*............................................................ 22,000 814,000
-------------
10,716,100
-------------
TOTAL TECHNOLOGY (11.2%).................................................. 41,791,191
-------------
DIVERSIFIED
MISCELLANEOUS (1.0%)
Alco Standard Corp. ...................................................... 40,000 1,825,000
Allied Signal, Inc. ...................................................... 45,000 2,137,500
-------------
TOTAL DIVERSIFIED (1.0%).................................................. 3,962,500
-------------
TOTAL COMMON STOCKS (52.0%)
(Cost $169,295,717).................................................... 194,746,029
-------------
PREFERRED STOCKS:
BASIC MATERIALS (0.1%)
PAPER
James River Corp.
9.0% Conv. ............................................................ 5,100 119,213
-------------
</TABLE>
FSA-10
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 10 (POOLED) (THE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Continued)
- --------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE
SHARES (NOTE 3)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL GOODS (0.1%)
ELECTRICAL EQUIPMENT
Westinghouse Electric Corp.
$1.30 Conv.* ........................................................ 32,400 $ 514,350
-------------
CONSUMER CYCLICALS (0.1%)
AIRLINES
Continental Air Finance Trust
8.5% Conv.*.......................................................... 8,800 470,800
-------------
CONSUMER NONCYCLICALS (0.1%)
HOSPITAL SUPPLIES & SERVICES
FHP International Corp.
5.0% Conv., Series A ................................................ 12,300 327,488
-------------
CREDIT-SENSITIVE
BANKS (0.1%)
First Chicago NBD Corp.
5.75% Conv., Series B ............................................... 8,000 536,000
-------------
FINANCIAL SERVICES (0.2%)
Allstate Corp.
$2.30 Conv. ......................................................... 6,200 254,200
First USA, Inc.
6.25% Conv. ......................................................... 9,300 367,350
-------------
621,550
-------------
INSURANCE (0.1%)
Travelers Group, Inc.
5.5% Conv., Series B ................................................ 4,200 366,450
-------------
UTILITY -- TELEPHONE (0.2%)
LCI International, Inc.
5.0% Conv............................................................ 15,700 839,950
-------------
TOTAL CREDIT-SENSITIVE (0.6%)........................................... 2,363,950
-------------
ENERGY (0.1%)
OIL -- DOMESTIC
Enron Corp.
6.25% Conv.* ........................................................ 11,100 266,400
-------------
TECHNOLOGY (0.1%)
TELECOMMUNICATIONS
MFS Communications Co., Inc.
8.0% Conv.*.......................................................... 7,800 379,762
-------------
TOTAL PREFERRED STOCKS (1.2%)
(Cost $3,966,336).................................................... 4,441,963
-------------
</TABLE>
FSA-11
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================
SEPARATE ACCOUNT NO. 10 (POOLED) (THE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Continued)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 3)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.3%)
Thermo Electron Corp.
5.0% Euro Conv., 2001................................................ $ 570,000 $ 964,725
------------
PRINTING, PUBLISHING & BROADCASTING (2.5%)
Tele-Communications, Inc.
10.125%, 2022........................................................ 4,000,000 5,011,520
Time Warner Entertainment Co.
8.375%, 2023......................................................... 3,900,000 4,198,389
------------
9,209,909
------------
PROFESSIONAL SERVICES (0.4%)
Career Horizons, Inc.
7.0% Conv., 2002..................................................... 210,000 238,875
Danka Business Systems PLC
6.75% Conv., 2002.................................................... 450,000 637,313
First Financial Management Corp.
5.0% Conv., 1999..................................................... 480,000 778,800
------------
1,654,988
------------
TOTAL BUSINESS SERVICES (3.2%).......................................... 11,829,622
------------
CAPITAL GOODS
MACHINERY (0.4%)
Solectron Corp.
Zero Coupon Sub. Note, 2012.......................................... 1,070,000 981,725
Titan Wheel International, Inc.
4.75% Conv., 2000.................................................... 310,000 409,587
------------
TOTAL CAPITAL GOODS (0.4%).............................................. 1,391,312
------------
CONSUMER CYCLICALS
FOOD SERVICES, LODGING (0.1%)
HFS, Inc.
4.5% Conv., 1999..................................................... 270,000 623,700
------------
Retail -- General (0.2%)
Federated Department Stores, Inc.
5.0% Conv., 2003..................................................... 295,000 295,000
Lowes Cos., Inc.
3.0% Conv., 2003..................................................... 310,000 404,163
------------
699,163
------------
TOTAL CONSUMER CYCLICALS (0.3%)......................................... 1,322,863
------------
CONSUMER NONCYCLICALS
DRUGS (0.1%)
Genzyme Corp.
6.75% Conv., 2001.................................................... 240,000 298,500
------------
HOSPITAL SUPPLIES & SERVICES (0.3%)
Healthsouth Corp.
5.0% Conv., 2001..................................................... 300,000 484,500
Integrated Health Services, Inc.
5.75% Conv., 2001.................................................... 590,000 593,687
------------
1,078,187
------------
TOTAL CONSUMER NONCYCLICALS (0.4%)...................................... 1,376,687
------------
</TABLE>
FSA-12
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 10 (POOLED) (THE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Continued)
- --------------------------------------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 3)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CREDIT-SENSITIVE
BANKS (2.0%)
Abbey National PLC
6.69%, 2005 ........................................................ $ 2,250,000 $ 2,335,118
St. George Bank Ltd.
7.15%, 2005 ........................................................ 4,850,000 5,020,041
-------------
7,355,159
-------------
FINANCIAL SERVICES (3.4%)
Commercial Credit Co.
6.125%, 2005 ....................................................... 2,400,000 2,376,958
Lehman Brothers Holdings, Inc.
8.75%, 2005 ........................................................ 4,525,000 5,145,378
Liberty Mutual Insurance Co.
8.5%, 2025 ......................................................... 4,050,000 4,507,488
Medaphis Corp.
6.5% Conv., 2000.................................................... 221,000 587,584
-------------
12,617,408
-------------
FOREIGN GOVERNMENT (1.3%)
Italy Global Bond
6.875%, 2023 ....................................................... 5,000,000 4,882,750
-------------
U.S. GOVERNMENT (30.0%)
U.S. Treasury:
5.5% Note, 1998 .................................................... 10,000,000 10,071,870
7.25% Note, 1998 ................................................... 27,000,000 28,071,549
7.75% Note, 1999 ................................................... 10,000,000 10,856,250
5.75% Note, 2000 ................................................... 14,000,000 14,214,368
7.75% Note, 2000 ................................................... 22,250,000 24,176,004
6.5% Note, 2005 .................................................... 11,770,000 12,538,722
6.875% Bond, 2025 .................................................. 5,575,000 6,289,296
7.625% Bond, 2025 .................................................. 5,250,000 6,414,843
-------------
112,632,902
-------------
UTILITY -- TELEPHONE (0.2%)
Worldcom, Inc.
5.0% Conv., 2003.................................................... 770,000 816,200
-------------
TOTAL CREDIT-SENSITIVE (36.9%)......................................... 138,304,419
-------------
TECHNOLOGY
ELECTRONICS (0.8%)
Altera Corp.
5.75% Conv. Sub. Note, 2002......................................... 310,000 361,150
Cypress Semiconductor Corp.
3.15% Conv., 2001................................................... 220,000 223,850
Integrated Device Technology, Inc.
5.5% Conv., 2002.................................................... 430,000 351,525
LSI Logic Corp.
5.5% Conv., 2001.................................................... 150,000 407,063
Lam Research Corp.
6.0% Conv. Sub. Deb., 2003.......................................... 260,000 482,950
Motorola, Inc.
Zero Coupon Conv., 2013............................................. 115,000 87,688
</TABLE>
FSA-13
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 10 (POOLED) (THE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Concluded)
- --------------------------------------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 3)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONICS (CONTINUED)
Sanmina Corp.
5.5% Conv., 2002.................................................... $ 475,000 $ 519,531
3Com Corp.
10.25% Conv., 2001.................................................. 375,000 599,063
------------
3,032,820
------------
OFFICE EQUIPMENT (0.1%)
Telxon Corp.
5.75% Conv., 2003................................................... 220,000 236,500
------------
TELECOMMUNICATIONS (0.3%)
Bay Networks, Inc.
5.25% Conv., 2003................................................... 545,000 589,962
U.S. Cellular Corp.
Zero Coupon Conv., 2015 ............................................ 1,860,000 655,650
------------
1,245,612
------------
TOTAL TECHNOLOGY (1.2%)................................................ 4,514,932
------------
TOTAL LONG-TERM DEBT SECURITIES (42.4%)
(Amortized Cost $150,540,283)....................................... 158,739,835
------------
PARTICIPATION IN SEPARATE ACCOUNT NO. 2A,
at amortized cost, which approximates
market value, equivalent to 59,604 units
at $241.89 each (3.9%) ............................................. 14,417,728
------------
TOTAL INVESTMENTS (99.5%)
(Cost/Amortized Cost $338,220,064).................................. 372,345,555
CASH AND RECEIVABLES LESS LIABILITIES (0.5%)........................... 1,838,595
------------
NET ASSETS (100.0%).................................................... $374,184,150
============
</TABLE>
*Non-income producing.
See Notes to Financial Statements.
FSA-14
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 4 (POOLED) (THE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statement of Assets and Liabilities -- December 31, 1995
- --------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments (Notes 2 and 3):
Common stocks -- at value (cost: $1,772,607,539)........................................ $2,071,380,232
Long-term debt securities -- at value (amortized cost: $43,389,734)..................... 35,481,250
Participation in Separate Account No. 2A -- at amortized cost, which
approximates market value, equivalent to 62,384 units at $241.89...................... 15,090,212
Cash....................................................................................... 3,285,960
Receivables:
Securities sold......................................................................... 15,481,889
Dividends............................................................................... 1,693,035
Interest................................................................................ 59,583
- --------------------------------------------------------------------------------------------------------------
Total assets........................................................................... 2,142,472,161
- --------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Securities purchased.................................................................... 10,088,399
Due to Equitable Life's General Account................................................. 5,686,050
Investment management fees payable...................................................... 7,255
Accrued expenses........................................................................... 521,041
Amount retained by Equitable Life in Separate Account No. 4 (Note 1)....................... 1,044,875
- --------------------------------------------------------------------------------------------------------------
Total liabilities...................................................................... 17,347,620
- --------------------------------------------------------------------------------------------------------------
NET ASSETS (NOTE 1):
Net assets attributable to participants' accumulations..................................... 2,102,751,745
Reserves and other contract liabilities attributable to annuity benefits................... 22,372,796
- --------------------------------------------------------------------------------------------------------------
NET ASSETS................................................................................. $2,125,124,541
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-15
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 4 (POOLED) (THE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations and Changes in Net Assets
- -------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
INVESTMENT INCOME (NOTE 2):
Dividends (net of foreign taxes withheld -- 1995: $239,657
and 1994: $280,079)............................................... $ 19,610,344 $ 18,981,135
Interest and amortization of premium................................. (852,218) 120,286
- -------------------------------------------------------------------------------------------------------------
Total................................................................ 18,758,126 19,101,421
EXPENSES-- (NOTE 4).................................................. (16,007,109) (14,943,802)
- -------------------------------------------------------------------------------------------------------------
NET INCOME........................................................... 2,751,017 4,157,619
- -------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 2):
Realized gain from security and foreign currency transactions........ 260,870,246 121,640,003
- -------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investments
and foreign currency transactions:
Beginning of year................................................. 41,831,973 211,185,607
End of year....................................................... 290,870,386 41,831,973
- -------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation....................... 249,038,413 (169,353,634)
- -------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS............... 509,908,659 (47,713,631)
- -------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets attributable to operations......... 512,659,676 (43,556,012)
- -------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions........................................................ 422,289,107 435,940,867
Withdrawals.......................................................... (474,530,080) (528,069,361)
- -------------------------------------------------------------------------------------------------------------
Decrease in net assets attributable to contributions and withdrawals. (52,240,973) (92,128,494)
- -------------------------------------------------------------------------------------------------------------
Decrease in accumulated amount retained by Equitable Life in
Separate Account No. 4 (Note 1)................................... 113,489 449,257
- -------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS.................................... 460,532,192 (135,235,249)
NET ASSETS -- BEGINNING OF YEAR...................................... 1,664,592,349 1,799,827,598
- -------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR............................................ $2,125,124,541 $1,664,592,349
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
FSA-16
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================
SEPARATE ACCOUNT NO. 4 (POOLED) (THE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995
- -------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE
SHARES (NOTE 3)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (0.3%)
CHEMICALS -- SPECIALTY
UCAR International, Inc.* .............................................. 175,000 $ 5,906,250
-------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.2%)
Rollins Environmental Services, Inc.* .................................. 1,054,700 3,032,263
USA Waste Services, Inc.*............................................... 120,000 2,265,000
-------------
5,297,263
-------------
PRINTING, PUBLISHING & BROADCASTING (1.2%)
Australis Media Ltd..................................................... 4,500,250 3,846,532
Australis Media Ltd.
CONV. NOTE* ......................................................... 22,000,000 18,804,225
IVI Publishing, Inc.* .................................................. 121,700 1,597,313
-------------
24,248,070
-------------
PROFESSIONAL SERVICES (0.1%)
Loewen Group, Inc. ..................................................... 50,000 1,265,625
-------------
TOTAL BUSINESS SERVICES (1.5%).......................................... 30,810,958
-------------
CAPITAL GOODS (2.3%)
AEROSPACE
General Motors Corp. (Class H) ......................................... 1,000,000 49,125,000
-------------
CONSUMER CYCLICALS
AIRLINES (1.9%)
America West Airlines, Inc. (Class B)*.................................. 750,000 12,750,000
Delta Air Lines, Inc. .................................................. 160,000 11,820,000
USAir Group, Inc.* ..................................................... 1,000,000 13,250,000
Worldcorp, Inc.* ....................................................... 339,300 3,393,000
-------------
41,213,000
-------------
APPAREL, TEXTILE (0.5%)
Cone Mills Corp.* ...................................................... 371,000 4,173,750
Nine West Group, Inc.* ................................................. 200,000 7,500,000
-------------
11,673,750
-------------
FOOD SERVICES, LODGING (0.3%)
La Quinta Motor Inns, Inc. ............................................. 200,000 5,475,000
-------------
HOUSEHOLD FURNITURE, APPLIANCES (1.0%)
Industrie Natuzzi (ADR)................................................. 480,000 21,780,000
-------------
LEISURE-RELATED (2.0%)
ITT Corp. .............................................................. 800,000 42,400,000
-------------
RETAIL -- GENERAL (2.6%)
Federated Department Stores, Inc.* ..................................... 750,000 20,625,000
Lowes Cos., Inc. ....................................................... 450,000 15,075,000
Office Depot, Inc.* .................................................... 300,000 5,925,000
Office Max, Inc.* ...................................................... 100,000 2,237,500
Tandy Corp. ............................................................ 260,000 10,790,000
-------------
54,652,500
-------------
TOTAL CONSUMER CYCLICALS (8.3%)......................................... 177,194,250
-------------
</TABLE>
FSA-17
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================
SEPARATE ACCOUNT NO. 4 (POOLED) (THE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Continued)
- -------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE
SHARES (NOTE 3)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER NONCYCLICALS
DRUGS (1.0%)
Biogen, Inc.* ............................................................ 45,000 $ 2,767,500
Centocor, Inc.* .......................................................... 325,000 10,034,375
MedImmune, Inc.* ......................................................... 145,400 2,908,000
Merck & Co., Inc. ........................................................ 70,000 4,602,500
-------------
20,312,375
-------------
HOSPITAL SUPPLIES & SERVICES (6.3%)
Amsco International, Inc.* ............................................... 150,000 2,231,250
Columbia/HCA Healthcare Corp. ............................................ 800,000 40,600,000
Sun Healthcare Group, Inc.* .............................................. 1,191,000 16,078,500
Surgical Care Affiliates, Inc. ........................................... 2,188,300 74,402,200
-------------
133,311,950
-------------
TOBACCO (10.4%)
Loews Corp. .............................................................. 2,250,000 176,343,750
Philip Morris Cos., Inc. ................................................. 500,000 45,250,000
-------------
221,593,750
-------------
TOTAL CONSUMER NONCYCLICALS (17.7%)....................................... 375,218,075
-------------
CREDIT-SENSITIVE
FINANCIAL SERVICES (3.1%)
Dean Witter Discover & Co. ............................................... 50,000 2,350,000
A.G. Edwards, Inc. ....................................................... 220,000 5,252,500
Household International, Inc. ............................................ 130,000 7,686,250
Legg Mason, Inc. ......................................................... 850,000 23,375,000
Merrill Lynch & Co., Inc. ................................................ 550,000 28,050,000
-------------
66,713,750
-------------
INSURANCE (12.5%)
CNA Financial Corp.* ..................................................... 1,552,500 176,208,750
ITT Hartford Group, Inc. ................................................. 800,000 38,700,000
Life Re Corp. ............................................................ 700,000 17,500,000
NAC Re Corp. ............................................................. 575,000 20,700,000
Travelers Group, Inc. .................................................... 200,000 12,575,000
-------------
265,683,750
-------------
REAL ESTATE (0.3%)
Walden Residential Properties, Inc. ...................................... 308,000 6,429,500
-------------
UTILITY -- TELEPHONE (7.7%)
Century Telephone Enterprises, Inc. ...................................... 397,800 12,630,150
Telephone & Data Systems, Inc. ........................................... 3,825,000 151,087,500
-------------
163,717,650
-------------
TOTAL CREDIT-SENSITIVE (23.6%)............................................ 502,544,650
-------------
ENERGY
COAL & GAS PIPELINES (0.0%)
Abraxas Petroleum Corp.* ................................................. 100,000 625,000
-------------
OIL -- DOMESTIC (0.7%)
Louisiana Land & Exploration Corp. ....................................... 200,000 8,575,000
Snyder Oil Corp. ......................................................... 500,000 6,062,500
-------------
14,637,500
-------------
</TABLE>
FSA-18
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================
SEPARATE ACCOUNT NO. 4 (POOLED) (THE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Continued)
- -------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE
SHARES (NOTE 3)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OIL -- INTERNATIONAL (1.6%)
Gulf Canada Resources Ltd. ORD* ........................................ 530,000 $ 2,186,250
Imperial Oil Ltd. ...................................................... 859,000 31,031,375
-------------
33,217,625
-------------
OIL -- SUPPLIES & CONSTRUCTION (4.5%)
ENSCO International, Inc.* ............................................. 500,000 11,500,000
Noble Drilling Corp.* .................................................. 1,000,000 9,000,000
Parker Drilling Co.* ................................................... 6,000,000 36,750,000
Rowan Cos., Inc.* ...................................................... 3,300,000 32,587,500
Seagull Energy Corp.* .................................................. 250,000 5,562,500
-------------
95,400,000
-------------
RAILROADS (0.3%)
Union Pacific Corp. .................................................... 100,000 6,600,000
-------------
TOTAL ENERGY (7.1%)..................................................... 150,480,125
-------------
TECHNOLOGY
ELECTRONICS (13.5%)
American Superconductor Corp.* ......................................... 149,000 2,160,500
Bay Networks, Inc.* .................................................... 300,000 12,337,500
Cisco Systems, Inc.* ................................................... 1,315,000 98,131,875
General Instrument Corp.* .............................................. 3,260,000 76,202,500
ITT Industries, Inc. ................................................... 800,000 19,200,000
National Semiconductor Corp.* .......................................... 2,000,000 44,500,000
Texas Instruments, Inc. ................................................ 200,000 10,350,000
3Com Corp.* ............................................................ 500,000 23,312,500
-------------
286,194,875
-------------
OFFICE EQUIPMENT (1.8%)
Compaq Computer Corp.* ................................................. 500,000 24,000,000
Sun Microsystems, Inc.* ................................................ 300,000 13,687,500
-------------
37,687,500
-------------
OFFICE EQUIPMENT SERVICES (0.2%)
Informix Corp.* ........................................................ 55,000 1,650,000
Oracle Corp.* .......................................................... 80,000 3,390,000
-------------
5,040,000
-------------
TELECOMMUNICATIONS (21.2%)
AirTouch Communications, Inc.* ......................................... 40,000 1,130,000
American Satellite Network -- Rights* .................................. 70,000 0
Cellular Communications, Inc. (Class A)* ............................... 869,268 43,246,083
Cellular Communications Puerto Rico, Inc.* ............................. 322,500 8,949,375
DSC Communications Corp.* .............................................. 650,000 23,968,750
Mannesmann AG .......................................................... 120,000 38,196,841
Mannesmann AG (ADR) .................................................... 200,000 63,600,000
Millicom International Cellular S.A.* .................................. 1,700,000 51,850,000
Nokia Corp. (ADR) ...................................................... 600,000 23,325,000
Rogers Cantel Mobile Communications, Inc. (Class B) (ADR)* ............. 900,000 23,850,000
Scientific Atlanta, Inc. ............................................... 2,035,000 30,525,000
Tellabs, Inc.* ......................................................... 450,000 16,650,000
U.S. Cellular Corp.* ................................................... 2,650,000 89,437,500
Vanguard Cellular Systems, Inc. (Class A)* ............................. 1,800,000 36,450,000
-------------
451,178,549
-------------
TOTAL TECHNOLOGY (36.7%)................................................ 780,100,924
-------------
</TABLE>
FSA-19
<PAGE>
<TABLE>
<CAPTION>
===============================================================================================================
SEPARATE ACCOUNT NO. 4 (POOLED) (THE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Concluded)
- ---------------------------------------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 3)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TOTAL COMMON STOCKS (97.5%)
(Cost $1,772,607,539)............................................... $2,071,380,232
--------------
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES (0.2%)
PROFESSIONAL SERVICES
First Financial Management Corp.
5.0% Conv., 1999.................................................... $ 2,000,000 3,245,000
--------------
TECHNOLOGY
ELECTRONICS (1.4%)
General Instrument Corp.
5.0% Conv., 2000 ................................................... 26,600,000 29,592,500
--------------
TELECOMMUNICATIONS (0.1%)
U.S. Cellular Corp.
Zero Coupon Conv., 2015 ............................................ 7,500,000 2,643,750
--------------
TOTAL TECHNOLOGY (1.5%)................................................ 32,236,250
--------------
TOTAL LONG-TERM DEBT SECURITIES (1.7%)
(Amortized Cost $43,389,734)........................................ 35,481,250
--------------
PARTICIPATION IN SEPARATE ACCOUNT NO. 2A,
at amortized cost, which approximates
market value, equivalent to 62,384 units
at $241.89 each (0.7%)............................................. 15,090,212
--------------
TOTAL INVESTMENTS (99.9%)
(Cost /Amortized Cost $1,831,087,485) .............................. 2,121,951,694
CASH AND RECEIVABLES LESS LIABILITIES (0.1%)........................... 4,217,722
AMOUNT RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT NO. 4 (0.0%) (NOTE 1).............................. (1,044,875)
--------------
NET ASSETS (100.0%) (Note 1)........................................... $2,125,124,541
==============
Reserves attributable to participants' accumulations................... $2,102,751,745
Reserves and other contract liabilities attributable to annuity
benefits............................................................ 22,372,796
--------------
NET ASSETS............................................................. $2,125,124,541
==============
</TABLE>
*Non-income producing.
See Notes to Financial Statements.
FSA-20
<PAGE>
<TABLE>
<CAPTION>
===============================================================================================================
SEPARATE ACCOUNT NO. 3 (POOLED) (THE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statement of Assets and Liabilities
December 31, 1995
- ---------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments (Notes 2 and 3):
Common stocks -- at value (cost: $274,102,539)........................................... $336,946,517
Participation in Separate Account No. 2A
-- at amortized cost, which approximates market value,
equivalent to 17,601 units at $241.89................................................ 4,257,425
Cash........................................................................................ 891,904
Receivables:
Securities sold.......................................................................... 2,490,920
Dividends................................................................................ 8,919
- ---------------------------------------------------------------------------------------------------------------
Total assets............................................................................ 344,595,685
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Securities purchased..................................................................... 1,122,353
Due to Equitable Life's General Account.................................................. 1,587,720
Investment management fees payable....................................................... 3,146
Accrued expenses............................................................................ 179,212
- ---------------------------------------------------------------------------------------------------------------
Total liabilities....................................................................... 2,892,431
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS.................................................................................. $341,703,254
===============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-21
<PAGE>
<TABLE>
<CAPTION>
===============================================================================================================
SEPARATE ACCOUNT NO. 3 (POOLED) (THE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations and Changes in Net Assets
- --------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
1995 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
INVESTMENT INCOME (NOTE 2):
Dividends (net of foreign taxes withheld --
1995: $21,522 and 1994: $19,204)........................................ $ 1,552,241 $ 1,382,831
Interest................................................................... 729,465 262,574
- --------------------------------------------------------------------------------------------------------------
Total...................................................................... 2,281,706 1,645,405
EXPENSES -- (NOTE 4)....................................................... (4,967,053) (4,244,367)
- --------------------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS........................................................ (2,685,347) (2,598,962)
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 2):
Realized gain (loss) from security and foreign currency transactions....... 75,694,748 (7,572,930)
- --------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investments:
Beginning of year....................................................... 42,542,366 46,444,593
End of year............................................................. 62,843,978 42,542,366
- --------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation............................. 20,301,612 (3,902,227)
- --------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS..................... 95,996,360 (11,475,157)
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets attributable to operations............... 93,311,013 (14,074,119)
- --------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions.............................................................. 205,540,949 213,517,834
Withdrawals................................................................ (266,542,005) (179,711,235)
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets attributable to contributions and
withdrawals............................................................. (61,001,056) 33,806,599
- --------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS..................................................... 32,309,957 19,732,480
NET ASSETS -- BEGINNING OF YEAR............................................ 309,393,297 289,660,817
- --------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR.................................................. $ 341,703,254 $309,393,297
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-22
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 3 (POOLED) (THE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995
- --------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE
SHARES (NOTE 3)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS -- SPECIALTY (1.4%)
Cytec Industries, Inc.* ................................................... 31,000 $ 1,933,625
UCAR International, Inc.* ................................................. 89,800 3,030,750
--------------
4,964,375
--------------
METALS & MINING (0.8%)
Newmont Mining Corp. ...................................................... 60,000 2,715,000
--------------
TOTAL BASIC MATERIALS (2.2%)............................................... 7,679,375
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.8%)
USA Waste Services, Inc.* ................................................. 320,300 6,045,663
--------------
PRINTING, PUBLISHING & BROADCASTING (2.5%)
Infinity Broadcasting Corp. (Class A)* .................................... 196,200 7,308,450
Playboy Enterprises, Inc.* ................................................ 127,900 1,071,163
--------------
8,379,613
--------------
PROFESSIONAL SERVICES (0.5%)
Loewen Group, Inc. ........................................................ 71,600 1,812,375
--------------
Trucking, Shipping (2.2%)
TNT Freightways Corp. ..................................................... 61,300 1,233,662
Xtra Corp. ................................................................ 152,300 6,472,750
--------------
7,706,412
--------------
TOTAL BUSINESS SERVICES (7.0%)............................................. 23,944,063
--------------
CONSUMER CYCLICALS
AIRLINES (5.1%)
America West Airlines, Inc. (Class B)* .................................... 197,400 3,355,800
Delta Air Lines, Inc. ..................................................... 33,000 2,437,875
Northwest Airlines Corp. (Class A)* ....................................... 79,900 4,074,900
Southwest Airlines Co. .................................................... 108,900 2,531,925
USAir Group, Inc.* ........................................................ 379,300 5,025,725
--------------
17,426,225
--------------
APPAREL, TEXTILE (3.8 %)
Jones Apparel Group, Inc.* ................................................ 48,200 1,897,875
Nine West Group, Inc.* .................................................... 299,100 11,216,250
--------------
13,114,125
--------------
FOOD SERVICES, LODGING (3.9%)
Extended Stay America, Inc.* .............................................. 62,300 1,713,250
HFS, Inc.* ................................................................ 83,100 6,793,425
Host Marriott Corp.* ...................................................... 358,800 4,754,100
--------------
13,260,775
--------------
HOUSEHOLD FURNITURE, APPLIANCES (1.8%)
Industrie Natuzzi (ADR) ................................................... 138,600 6,288,975
--------------
</TABLE>
FSA-23
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 3 (POOLED) (THE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Continued)
- --------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE
SHARES (NOTE 3)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LEISURE-RELATED (4.9%)
Ascent Entertainment Group, Inc.* ...................................... 51,000 $ 803,250
Heritage Media Corp. (Class A)* ........................................ 88,875 2,277,422
ITT Corp. .............................................................. 134,400 7,123,200
Mirage Resorts, Inc.* .................................................. 100,900 3,481,050
Sierra On-line, Inc.* .................................................. 100,800 2,898,000
------------
16,582,922
------------
PHOTO & OPTICAL (0.2%)
Luxottica Group (ADR) .................................................. 11,700 684,450
------------
RETAIL -- GENERAL (10.8%)
Bed Bath & Beyond, Inc.* ............................................... 171,400 6,652,462
Federated Department Stores, Inc.* ..................................... 478,300 13,153,250
Office Depot, Inc.* .................................................... 362,450 7,158,387
Office Max, Inc.* ...................................................... 390,400 8,735,200
Staples, Inc.* ......................................................... 48,650 1,185,844
------------
36,885,143
------------
TOTAL CONSUMER CYCLICALS (30.5%)........................................ 104,242,615
------------
CONSUMER NONCYCLICALS
DRUGS (3.9%)
Amgen, Inc.* ........................................................... 53,800 3,194,375
Biogen, Inc.* .......................................................... 46,000 2,829,000
Centocor, Inc.* ........................................................ 141,200 4,359,550
Cephalon, Inc.* ........................................................ 59,550 2,426,662
Pharmacyclics, Inc.* ................................................... 27,000 378,000
------------
13,187,587
------------
HOSPITAL SUPPLIES & SERVICES (14.5%)
Apria Healthcare Group, Inc.* .......................................... 154,960 4,377,620
Boston Scientific Corp.* ............................................... 108,900 5,336,100
Healthsouth Corp.* ..................................................... 457,200 13,315,950
Healthwise of America, Inc.* ........................................... 121,445 4,736,355
Manor Care, Inc. ....................................................... 89,400 3,129,000
Saint Jude Medical, Inc.* .............................................. 98,050 4,216,150
Summit Technology, Inc.* ............................................... 69,550 2,347,313
Sun Healthcare Group, Inc.* ............................................ 316,920 4,278,420
Surgical Care Affiliates, Inc. ......................................... 230,100 7,823,400
------------
49,560,308
------------
TOTAL CONSUMER NONCYCLICALS (18.4%)..................................... 62,747,895
------------
CREDIT-SENSITIVE
INSURANCE (6.6%)
CNA Financial Corp.* ................................................... 141,600 16,071,600
ITT Hartford Group, Inc. ............................................... 134,400 6,501,600
------------
22,573,200
------------
UTILITY -- TELEPHONE (4.4%)
Telephone & Data Systems, Inc. ......................................... 382,200 15,096,900
------------
TOTAL CREDIT-SENSITIVE (11.0%).......................................... 37,670,100
------------
</TABLE>
FSA-24
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 3 (POOLED) (THE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Continued)
- --------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE
SHARES (NOTE 3)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY
OIL -- DOMESTIC (1.0%)
Diamond Shamrock, Inc. ................................................... 54,900 $ 1,420,537
Snyder Oil Corp. ......................................................... 157,600 1,910,900
-------------
3,331,437
-------------
OIL -- SUPPLIES & CONSTRUCTION (10.1%)
Arethusa (Off-Shore) Ltd. ................................................ 96,600 2,704,800
Diamond Offshore Drilling, Inc.* ......................................... 251,600 8,491,500
Global Marine, Inc.* ..................................................... 806,500 7,056,875
Noble Drilling Corp.* .................................................... 496,900 4,472,100
Reading & Bates Corp.* ................................................... 319,000 4,785,000
Rowan Cos., Inc.* ........................................................ 528,400 5,217,950
Sonat Offshore Drilling, Inc. ............................................ 45,500 2,036,125
-------------
34,764,350
-------------
TOTAL ENERGY (11.1%)...................................................... 38,095,787
-------------
TECHNOLOGY
ELECTRONICS (3.3%)
Applied Materials, Inc.* ................................................. 35,400 1,393,875
Bay Networks, Inc.* ...................................................... 45,604 1,875,465
ITT Industries, Inc. ..................................................... 134,400 3,225,600
Parametric Technology Corp.* ............................................. 72,800 4,841,200
-------------
11,336,140
-------------
OFFICE EQUIPMENT (0.9%)
Dell Computer Corp.* ..................................................... 40,900 1,416,163
Storage Technology Corp.* ................................................ 74,000 1,766,750
-------------
3,182,913
-------------
OFFICE EQUIPMENT SERVICES (2.7%)
Hummingbird Communications Ltd.* ......................................... 14,100 571,050
Informix Corp.* .......................................................... 221,500 6,645,000
Sybase, Inc.* ............................................................ 57,700 2,077,200
-------------
9,293,250
-------------
TELECOMMUNICATIONS (10.3%)
American Satellite Network-- Rights* ..................................... 9,550 0
Andrew Corp.* ............................................................ 74,000 2,830,500
Ascend Communications, Inc.* ............................................. 23,800 1,930,775
Cellular Communications, Inc. (Class A)* ................................. 77,654 3,863,286
DSC Communications Corp.* ................................................ 66,800 2,463,250
Mannesmann AG (ADR) ...................................................... 31,200 9,921,600
Millicom International Cellular S.A.* .................................... 149,360 4,555,480
Tellabs, Inc.* ........................................................... 64,900 2,401,300
U.S. Cellular Corp.* ..................................................... 133,700 4,512,375
Vanguard Cellular Systems, Inc. (Class A)* ............................... 125,850 2,548,463
-------------
35,027,029
-------------
TOTAL TECHNOLOGY (17.2%).................................................. 58,839,332
-------------
DIVERSIFIED (1.2%)
MISCELLANEOUS
Pittston Services Group .................................................. 118,800 3,727,350
-------------
</TABLE>
FSA-25
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 3 (POOLED) (THE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Portfolio of Investments -- December 31, 1995 (Concluded)
- --------------------------------------------------------------------------------------------------------------
VALUE
(NOTE 3)
- --------------------------------------------------------------------------------------------------------------
<S> <C>
TOTAL COMMON STOCKS (98.6%)
(Cost $274,102,539)..................................................... $336,946,517
------------
PARTICIPATION IN SEPARATE ACCOUNT NO. 2A,
at amortized cost, which approximates
market value, equivalent to 17,601 units
at $241.89 each (1.3%)................................................... 4,257,425
------------
TOTAL INVESTMENTS (99.9%)
(Cost/Amortized Cost $278,359,964)...................................... 341,203,942
CASH AND RECEIVABLES LESS LIABILITIES (0.1%)............................... 499,312
============
NET ASSETS (100.0%)........................................................ $341,703,254
============
</TABLE>
*Non-income producing.
See Notes to Financial Statements.
FSA-26
<PAGE>
<TABLE>
<CAPTION>
===============================================================================================================
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Assets and Liabilities -- December 31, 1995
- ---------------------------------------------------------------------------------------------------------------
INTERMEDIATE
MONEY GOVERNMENT QUALITY HIGH
MARKET SECURITIES BOND YIELD
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Hudson River Trust, at value
(Cost: Money Market Portfolio -- $2,133,227;
Intermediate Government Securities
Portfolio -- $653,102;
Quality Bond Portfolio -- $1,308,305;
High Yield Portfolio -- $867,939) (Note 1)..... $2,126,645 $671,731 $1,358,928 $893,208
Receivable for The Hudson River Trust shares sold........ -- 36 744 11,654
Due from Equitable Life's General Account................ 551,683 410 -- --
- ---------------------------------------------------------------------------------------------------------------
Total assets......................................... 2,678,328 672,177 1,359,672 904,862
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for The Hudson River Trust shares purchased...... 550,611 -- -- --
Due to Equitable Life's General Account.................. -- -- -- 11,192
Accrued expenses......................................... 1,072 444 744 462
- ---------------------------------------------------------------------------------------------------------------
Total liabilities.................................... 551,683 444 744 11,654
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS............................................... $2,126,645 $671,733 $1,358,928 $893,208
===============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-27
<PAGE>
<TABLE>
<CAPTION>
============================================================================================================
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Assets and Liabilities (Continued)
December 31, 1995
- ------------------------------------------------------------------------------------------------------------
GROWTH & EQUITY
INCOME INDEX GLOBAL
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments in shares of The Hudson River Trust, at value
(Cost: Growth and Income Portfolio -- $3,937,179;
Equity Index Portfolio -- $5,051,554;
Global Portfolio - $26,282,287) (Note 1).............. $4,430,408 $5,480,970 $28,593,444
Receivable for The Hudson River Trust shares sold............... -- -- --
Due from Equitable Life's General Account....................... 5,778 70,301 55,852
- ------------------------------------------------------------------------------------------------------------
Total assets................................................ 4,436,186 5,551,271 28,649,296
- ------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for The Hudson River Trust shares purchased............. 3,500 67,202 38,154
Accrued expenses................................................ 2,278 3,099 23,058
- ------------------------------------------------------------------------------------------------------------
Total liabilities........................................... 5,778 70,301 61,212
- ------------------------------------------------------------------------------------------------------------
NET ASSETS...................................................... $4,430,408 $5,480,970 $28,588,084
============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-28
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Assets and Liabilities (Concluded)
December 31, 1995
- -------------------------------------------------------------------------------------------------------------
CONSERVATIVE GROWTH
INTERNATIONAL INVESTORS INVESTORS
FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments in shares of The Hudson River Trust, at value
(Cost: International Portfolio -- $46,014;
Conservative Investors Portfolio -- $4,895,468;
Growth Investors Portfolio - $24,944,438) (Note 1)... $45,787 $5,200,407 $27,425,238
Receivable for The Hudson River Trust shares sold.............. 7 3,225 --
Due from Equitable Life's General Account...................... -- 1,335 231,872
- -------------------------------------------------------------------------------------------------------------
Total assets............................................... 45,794 5,204,967 27,657,110
- -------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for The Hudson River Trust shares purchased............ -- -- 218,551
Accrued expenses............................................... 7 7,688 16,800
- -------------------------------------------------------------------------------------------------------------
Total liabilities.......................................... 7 7,688 235,351
- -------------------------------------------------------------------------------------------------------------
NET ASSETS..................................................... $45,787 $5,197,279 $27,421,759
=============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-29
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations and Changes in Net Assets
- --------------------------------------------------------------------------------------------------------------
Intermediate
Government Securities
Money Market Fund
-------------------------- -----------------------------
Year Ended June 1, 1994 to Year Ended June 1, 1994 to
December 31, December 31, December 31, December 31,
1995 1994 1995 1994
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
INVESTMENT INCOME -- Dividends from
The Hudson River Trust (Note 2)................... $ 80,788 $9,131 $28,574 $ 4,525
EXPENSES (NOTE 4).................................... (19,421) (1,015) (4,425) (271)
- ---------------------------------------------------------------------------------------------------------------
Net Investment Income................................ 61,367 8,116 24,149 4,254
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) from share transactions......... 54,144 7 615 (39)
- ---------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investments:
Beginning of period............................... (3,998) -- (4,096) --
End of period .................................... (6,582) (3,998) 18,629 (4,096)
- ---------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation....... (2,584) (3,998) 22,725 (4,096)
- ---------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
on Investments.................................... 51,560 (3,991) 23,340 (4,135)
- ---------------------------------------------------------------------------------------------------------------
Increase in net assets attributable to operations.... 112,927 4,125 47,489 119
- ---------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions........................................ 14,683,341 505,249 481,568 213,228
Withdrawals.......................................... (13,165,708) (13,289) (69,809) (862)
- ---------------------------------------------------------------------------------------------------------------
Increase in net assets attributable to contributions
and withdrawals................................... 1,517,633 491,960 411,759 212,366
- ---------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS............................... 1,630,560 496,085 459,248 212,485
NET ASSETS -- BEGINNING OF PERIOD.................... 496,085 -- 212,485 --
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD.......................... $ 2,126,645 $496,085 $671,733 $212,485
===============================================================================================================
</TABLE>
*Commencement of operations.
See Notes to Financial Statements.
FSA-30
<PAGE>
<TABLE>
<CAPTION>
======================================================================================================================
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations and Changes in Net Assets (Continued)
- ---------------------------------------------------------------------------------------------------------------------
QUALITY BOND FUND HIGH YIELD FUND
----------------------------- --------------------------------
YEAR ENDED JUNE 1, 1994* TO YEAR ENDED JUNE 1, 1994* TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
INVESTMENT INCOME -- Dividends from
The Hudson River Trust (Note 2)................... $ 54,553 $ 3,687 $ 74,333 $ 8,293
Expenses (Note 4).................................... (7,642) (462) (6,076) (437)
- ---------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME................................ 46,911 3,225 68,257 7,856
- ---------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
Investments (Note 2):
Realized gain (loss) from share transactions......... 4,452 (179) 3,294 (21)
- ---------------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investments:
Beginning of period............................... (4,701) -- (9,640) --
End of period .................................... 50,623 (4,701) 25,269 (9,640)
- ---------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation....... 55,324 (4,701) 34,909 (9,640)
- ---------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
on Investments.................................... 59,776 (4,880) 38,203 (9,661)
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets attributable to
operations........................................ 106,687 (1,655) 106,460 (1,805)
- ---------------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions........................................ 1,137,163 264,446 669,898 258,270
Withdrawals.......................................... (147,179) (534) (138,615) (1,000)
- ---------------------------------------------------------------------------------------------------------------------
Increase in net assets attributable to contributions
and withdrawals................................... 989,984 263,912 531,283 257,270
- ---------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS............................... 1,096,671 262,257 637,743 255,465
NET ASSETS -- BEGINNING OF PERIOD.................... 262,257 -- 255,465 --
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD.......................... $1,358,928 $262,257 $893,208 $255,465
=====================================================================================================================
</TABLE>
*Commencement of operations.
See Notes to Financial Statements.
FSA-31
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations and Changes in Net Assets (Continued)
- -------------------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND EQUITY INDEX FUND
----------------------------- ------------------------------
YEAR ENDED JUNE 1, 1994* TO YEAR ENDED JUNE 1, 1994* TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
INVESTMENT INCOME -- Dividends from
The Hudson River Trust (Note 2).................. $ 99,630 $ 11,570 $ 56,386 $ 2,792
EXPENSES (NOTE 4)................................... (28,920) (2,157) (22,767) (624)
- -------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME............................... 70, 710 9,413 33,619 2,168
- -------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
Investments (Note 2):
Realized gain (loss) from share transactions........ 63,019 (405) 178,220 --
Realized gain distribution from The Hudson
River Trust...................................... -- -- 40,549 1,341
- -------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)............................ 63,019 (405) 218,769 1,341
- -------------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investments:
Beginning of period.............................. (32,204) -- (6,547) --
End of period ................................... 493,229 (32,204) 429,416 (6,547)
- -------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation...... 525,433 (32,204) 435,963 (6,547)
- -------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
on Investments................................... 588,452 (32,609) 654,732 (5,206)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets attributable to
operations....................................... 659,162 (23,196) 688,351 (3,038)
- -------------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions....................................... 3,483,888 1,390,974 6,054,127 316,080
Withdrawals......................................... (1,048,180) (32,240) (1,574,510) (40)
- -------------------------------------------------------------------------------------------------------------------
Increase in net assets attributable to contributions
and withdrawals.................................. 2,435,708 1,358,734 4,479,617 316,040
- -------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS.............................. 3,094,870 1,335,538 5,167,968 313,002
NET ASSETS -- BEGINNING OF PERIOD................... 1,335,538 -- 313,002 --
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD......................... $4,430,408 $1,335,538 $5,480,970 $313,002
===================================================================================================================
</TABLE>
*Commencement of operations.
See Notes to Financial Statements.
FSA-32
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations and Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------------------------------------
INTERNATIONAL
GLOBAL FUND FUND
---------------------------- --------------
SEPTEMBER 19,
YEAR ENDED 1995* TO
DECEMBER 31, DECEMBER 31,
1995 1994 1995
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FROM OPERATIONS:
INVESTMENT INCOME -- Dividends from
The Hudson River Trust (Note 2)......................... $ 400,157 $ 84,653 $ 510
Expenses (Note 4).......................................... (224,839) (68,052) (12)
- --------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME...................................... 175,318 16,601 498
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
Investments (Note 2):
Realized gain (loss) from share transactions............... 55,631 2,308 (7)
Realized gain distribution from The Hudson
River Trust............................................. 788,817 238,966 189
- --------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN ......................................... 844,448 241,274 182
- --------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investments:
Beginning of period..................................... (467,857) (72,115) --
End of period .......................................... 2,311,157 (467,857) (227)
- --------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation............. 2,779,014 (395,742) (227)
- --------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
on Investments.......................................... 3,623,462 (154,468) (45)
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets attributable to
operations.............................................. 3,798,780 (137,867) 453
- --------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions.............................................. 19,143,847 12,404,705 45,334
Withdrawals................................................ (6,358,047) (1,857,754) --
- --------------------------------------------------------------------------------------------------------------
Increase in net assets attributable to contributions
and withdrawals......................................... 12,785,800 10,546,951 45,334
- --------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS..................................... 16,584,580 10,409,084 45,787
NET ASSETS -- BEGINNING OF PERIOD.......................... 12,003,504 1,594,420 --
- --------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD................................ $28,588,084 $12,003,504 $45,787
==============================================================================================================
</TABLE>
*Commencement of operations.
See Notes to Financial Statements.
FSA-33
<PAGE>
<TABLE>
<CAPTION>
======================================================================================================================
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations and Changes in Net Assets (Concluded)
- ----------------------------------------------------------------------------------------------------------------------
CONSERVATIVE INVESTORS
FUND GROWTH INVESTORS FUND
--------------------------- ------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
INVESTMENT INCOME -- Dividends from
The Hudson River Trust (Note 2)............... $ 224,858 $105,562 $ 602,858 $113,283
EXPENSES (NOTE 4)................................ (56,285) (37,272) (136,295) (41,929)
- ----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME............................ 168,573 68,290 466,563 71,354
- ----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized loss from share transactions............ (21,293) (66,443) (5,408) (14,850)
Realized gain distribution from The Hudson
River Trust................................... 32,181 -- 362,984 --
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)......................... 10,888 (66,443) 357,576 (14,850)
- ----------------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investments:
Beginning of year............................. (216,587) (98,372) (263,697) (56,176)
End of year .................................. 304,939 (216,587) 2,480,800 (263,697)
- ----------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation... 521,526 (118,215) 2,744,497 (207,521)
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS................................ 532,414 (184,658) 3,102,073 (222,371)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets attributable to
operations.................................... 700,987 (116,368) 3,568,636 (151,017)
- ----------------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions.................................... 2,281,637 1,652,385 20,374,439 5,339,146
Withdrawals...................................... (508,945) (920,352) (2,640,877) (622,957)
- ----------------------------------------------------------------------------------------------------------------------
Increase in net assets attributable to
contributions and withdrawals.................... 1,772,692 732,033 17,733,562 4,716,189
- ----------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS........................... 2,473,679 615,665 21,302,198 4,565,172
NET ASSETS -- BEGINNING OF YEAR.................. 2,723,600 2,107,935 6,119,561 1,554,389
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR........................ $5,197,279 $2,723,600 $27,421,759 $6,119,561
======================================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-34
<PAGE>
================================================================================
SEPARATE ACCOUNT NOS. 13 (POOLED), 10 (POOLED), 4 (POOLED),
3 (POOLED) AND 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Separate Account Nos. 13 (Pooled) (the Bond Fund), 10 (Pooled) (the Balanced
Fund), 4 (Pooled) (the Common Stock Fund), 3 (Pooled) (the Aggressive Stock
Fund), and 51 (Pooled) (the Money Market, Intermediate Government Securities,
Quality Bond, High Yield, Growth & Income, Equity Index, Global,
International, Conservative Investors and Growth Investors Funds) (the Funds)
of The Equitable Life Assurance Society of the United States (Equitable
Life), a wholly-owned subsidiary of The Equitable Companies Incorporated,
were established in conformity with the New York State Insurance Law.
Pursuant to such law, to the extent provided in the applicable contracts, the
net assets in the Funds are not chargeable with liabilities arising out of
any other business of Equitable Life. The excess of assets over reserves and
other contract liabilities amounting to $1,044,875 as shown in the Statement
of Assets and Liabilities in Separate Account No. 4 may be transferred to
Equitable Life's General Account.
Separate Account No. 51 was established as of the opening of business on July
1, 1993. Retirement Investment Account participant contributions were first
allocated to the Separate Account on June 1, 1994.
Interests of retirement and investment plans for employees, managers and
agents of Equitable Life in Separate Account Nos. 10, 4 and 3 aggregated
$22,742,258 (6.1%), $246,531,777 (11.6%) and $68,328,503 (20.0%),
respectively, at December 31, 1995 and $20,002,961 (5.1%), $184,086,304
(11.1%) and $48,123,292 (15.6%), respectively, at December 31, 1994, of the
net assets in these Funds.
Equitable Life is the investment manager for the Funds. Alliance Capital
Management L.P. (Alliance) serves as the investment adviser to Equitable Life
with respect to the management of Separate Account Nos. 13, 10, 4 and 3 (the
Equitable Funds). Alliance is a publicly-traded limited partnership which is
indirectly majority-owned by Equitable Life.
Separate Account No. 51 has ten investment funds which invest in shares of
corresponding portfolios of The Hudson River Trust (Trust). The Trust is an
open-end, diversified management investment company that invests the assets
of separate accounts of insurance companies. Alliance is the investment
adviser to the Trust.
Equitable Life and Alliance seek to obtain the best price and execution of
all orders placed for the portfolios of the Equitable Funds considering all
circumstances. In addition to using brokers and dealers to execute portfolio
security transactions for accounts under their management, Equitable Life and
Alliance may also enter into other types of business and securities
transactions with brokers and dealers, which will be unrelated to allocation
of the Equitable Funds' portfolio transactions.
2. Security transactions are recorded on the trade date. Amortized cost of debt
securities consists of cost, adjusted where applicable, for amortization of
premium or accretion of discount. Dividend income is recorded on the
ex-dividend date; interest income (including amortization of premium and
discount on securities using the effective yield method) is accrued daily.
Realized gains and losses on the sale of investments are computed on the
basis of the identified cost of the related investments sold. For Separate
Account No. 51, realized gains and losses on investments include gains and
losses on redemptions of the Trust's shares (determined on the identified
cost basis) and capital gain distributions from the Trust. Dividends and
realized gain distributions from The Hudson River Trust are recorded on
ex-date.
Transactions denominated in foreign currencies are recorded at the rate
prevailing at the date of such transactions. Asset and liability accounts
that are denominated in a foreign currency are adjusted to reflect the
current exchange rate at the end of the period. Transaction gains or losses
resulting from changes in the exchange rate during the reporting period or
upon settlement of the foreign currency transactions are reflected under
"Realized and Unrealized Gain (Loss) on Investments" in the Statements of
Operations and Changes in Net Assets.
FSA-35
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================
SEPARATE ACCOUNT NOS. 13 (POOLED), 10 (POOLED), 4 (POOLED),
3 (POOLED) AND 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Notes to Financial Statements (Continued)
- -----------------------------------------------------------------------------------------------------------
Equitable Life's internal short-term investment account, Separate Account No.
2A, was established to provide a more flexible and efficient vehicle to
combine and invest temporary cash positions of certain eligible accounts
(Participating Funds) under Equitable Life's management. Separate Account No.
2A invests in debt securities maturing in sixty days or less from the date of
the acquisition. At December 31, 1995, the amortized cost of investments held
in Separate Account No. 2A consists of the following:
- -----------------------------------------------------------------------------------------------------------
Amortized
Cost %
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Certificates of Deposit, 5.80% due 01/31/96............................ $ 20,000,000 6.7%
Commercial Paper, 5.53% - 5.87% due 01/12/96 through 02/23/96.......... 262,329,329 88.0
Time Deposits, 5.875% due 01/02/96..................................... 800,000 0.3
Variable Rate LIBOR, 5.968% due 01/08/96............................... 15,000,000 5.0
--------------------------------------------------------------------------------------------------------
Total Investments...................................................... 298,129,329 100.0
Cash and Receivables Less Liabilities.................................. 63,333 0.0
--------------------------------------------------------------------------------------------------------
Net Assets of Separate Account No. 2A.................................. $298,192,662 100.0%
========================================================================================================
Units Outstanding...................................................... 1,232,756
Unit Value............................................................. $241.89
========================================================================================================
</TABLE>
Participating Funds purchase or redeem units depending on each participating
account's excess cash availability or cash needs to meet its liabilities.
Separate Account No. 2A is not subject to investment management fees.
Short-term debt securities may also be purchased directly by the Equitable
Funds.
For 1995 and 1994, investment security transactions, excluding short-term
debt securities, were as follows:
<TABLE>
<CAPTION>
Separate Account No. 13 Separate Account No. 10
------------------------------ -------------------------------
Cost of Net Proceeds Cost of Net Proceeds
Purchases of Sales Purchases of Sales
------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Stocks and long-term corporate
debt securities:
1995....................... $155,464,426 $155,157,632 $374,948,659 $389,169,100
1994....................... 173,055,780 185,754,025 205,954,001 260,871,268
U.S. Government obligations:
1995....................... $487,651,584 $504,632,056 $219,815,471 $172,433,013
1994....................... 529,658,852 604,841,830 153,502,598 195,600,942
</TABLE>
<TABLE>
<CAPTION>
Separate Account No. 4 Separate Account No. 3
------------------------------- --------------------------------
Cost of Net Proceeds Cost of Net Proceeds
Purchases of Sales Purchases of Sales
-------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Stocks and long-term corporate
debt securities:
1995....................... $2,037,876,834 $2,082,648,235 $460,486,634 $525,937,180
1994....................... 1,556,068,225 1,644,508,525 314,667,935 272,832,266
U.S. Government obligations:
1995....................... -- -- -- --
1994....................... -- -- -- --
</TABLE>
FSA-36
<PAGE>
================================================================================
SEPARATE ACCOUNT NOS. 13 (POOLED), 10 (POOLED), 4 (POOLED),
3 (POOLED) AND 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Notes to Financial Statements (Concluded)
- --------------------------------------------------------------------------------
3. Investment securities for the Equitable Funds are valued as follows:
Stocks listed on national securities exchanges and certain over-the-counter
issues traded on the National Association of Securities Dealers, Inc.
automated quotation (NASDAQ) national market system are valued at the last
sale price, or, if there is no sale, at the latest available bid price.
Foreign securities not traded directly, or in American Depository Receipt
(ADR) form in the United States, are valued at the last sale price in the
local currency on an exchange in the country of origin. Foreign currency is
converted into its U.S. dollar equivalent at current exchange rates.
United States Treasury securities and other obligations issued or guaranteed
by the United States Government, its agencies or instrumentalities are valued
at representative quoted prices.
Long-term (i.e., maturing in more than a year) publicly-traded corporate
bonds are valued at prices obtained from a bond pricing service of a major
dealer in bonds when such prices are available; however, in circumstances
where Equitable Life and Alliance deem it appropriate to do so, an
over-the-counter or exchange quotation may be used.
Convertible preferred stocks listed on national securities exchanges are
valued at their last sale price or, if there is no sale, at the latest
available bid price.
Convertible bonds and unlisted convertible preferred stocks are valued at bid
prices obtained from one or more major dealers in such securities; where
there is a discrepancy between dealers, values may be adjusted based on
recent premium spreads to the underlying common stock.
Other assets that do not have a readily available market price are valued at
fair value as determined in good faith by Equitable Life's investment
officers.
The value of the investments of the Money Market, Intermediate Government
Securities, Quality Bond, High Yield, Growth & Income, Equity Index, Global,
International, Conservative Investors and Growth Investors Funds in the
corresponding Hudson River Trust Portfolios is calculated by multiplying the
number of shares held by Separate Account No. 51 in each Portfolio by the net
asset value per share of that Portfolio determined as of the close of
business on the same day as the respective unit values of the Money Market,
Intermediate Government Securities, Quality Bond, High Yield, Growth &
Income, Equity Index, Global, International, Conservative Investors and
Growth Investors Funds are determined.
Separate Account No. 2A is valued daily at amortized cost, which approximates
market value. Short-term debt securities purchased directly by the Equitable
Funds which mature in 60 days or less are valued at amortized cost.
Short-term debt securities which mature in more than 60 days are valued at
representative quoted prices.
4. Charges and fees relating to the Funds are deducted in accordance with the
terms of the various contracts which participate in the Funds. These expenses
consist of asset management fees, administrative and sales-related fees, and
operating expenses, as specified in each contract. Depending upon the terms
of a contract, sales related fees and operating expenses are paid (i) by a
reduction of an appropriate number of Fund Units or (ii) by a direct payment.
These charges and fees are recorded as expenses in the accompanying
Statements of Operations and Changes in Net Assets, and as an offsetting
contribution to the Funds from the contract holders. Asset management fee is
deducted in the daily unit values for the Equitable Funds. Administrative
charge for the investment funds of Separate Account No. 51 is deducted in the
daily unit value for each investment fund.
Investments in Separate Account No. 51 are also subject to the expenses
incurred in the underlying portfolios of the Trust, which are reflected
through the portfolios' net asset values.
5. No Federal income tax based on net income or realized and unrealized capital
gains was applicable to contracts participating in the Funds by reason of
applicable provisions of the Internal Revenue Code and no Federal income tax
payable by Equitable Life will affect such contracts. Accordingly, no Federal
income tax provision is required.
FSA-37
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholder of
The Equitable Life Assurance Society of the United States
In our opinion, the accompanying consolidated balance sheets and the related
consolidated statements of earnings, of shareholder's equity and of cash flows
present fairly, in all material respects, the financial position of The
Equitable Life Assurance Society of the United States and its subsidiaries
("Equitable Life") at December 31, 1995 and 1994, and the results of their
operations and their cash flows for each of the three years in the period ended
December 31, 1995, in conformity with generally accepted accounting principles.
These financial statements are the responsibility of Equitable Life's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these statements in
accordance with generally accepted auditing standards which 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, assessing the accounting principles used and significant estimates
made by management and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
As discussed in Note 2 to the consolidated financial statements, Equitable Life
changed its methods of accounting for loan impairments in 1995, for
postemployment benefits in 1994 and for investment securities in 1993.
PRICE WATERHOUSE LLP
New York, New York
February 7, 1996
F-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturities:
Available for sale, at estimated fair value............................. $ 15,899.9 $ 7,586.0
Held to maturity, at amortized cost..................................... - 5,223.0
Mortgage loans on real estate............................................. 3,638.3 4,018.0
Equity real estate........................................................ 3,916.2 4,446.4
Policy loans.............................................................. 1,976.4 1,731.2
Other equity investments.................................................. 621.1 678.5
Investment in and loans to affiliates..................................... 636.6 560.2
Other invested assets..................................................... 706.1 489.3
----------------- -----------------
Total investments..................................................... 27,394.6 24,732.6
Cash and cash equivalents................................................... 774.7 693.6
Deferred policy acquisition costs........................................... 3,083.3 3,221.1
Amounts due from discontinued GIC Segment................................... 2,097.1 2,108.6
Other assets................................................................ 2,713.1 2,078.6
Closed Block assets......................................................... 8,612.8 8,105.5
Separate Accounts assets.................................................... 24,566.6 20,469.5
----------------- -----------------
TOTAL ASSETS................................................................ $ 69,242.2 $ 61,409.5
================= =================
LIABILITIES
Policyholders' account balances............................................. $ 21,752.6 $ 21,238.0
Future policy benefits and other policyholders' liabilities................. 4,171.8 3,840.8
Short-term and long-term debt............................................... 1,899.3 1,337.4
Other liabilities........................................................... 3,379.5 2,300.1
Closed Block liabilities.................................................... 9,507.2 9,069.5
Separate Accounts liabilities............................................... 24,531.0 20,429.3
----------------- -----------------
Total liabilities..................................................... 65,241.4 58,215.1
----------------- -----------------
Commitments and contingencies (Notes 10, 12, 13, 14 and 15)
SHAREHOLDER'S EQUITY
Common stock, $1.25 par value 2.0 million shares authorized, issued
and outstanding........................................................... 2.5 2.5
Capital in excess of par value.............................................. 2,913.6 2,913.6
Retained earnings........................................................... 781.6 484.0
Net unrealized investment gains (losses).................................... 338.2 (203.0)
Minimum pension liability................................................... (35.1) (2.7)
----------------- -----------------
Total shareholder's equity............................................ 4,000.8 3,194.4
----------------- -----------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY.................................. $ 69,242.2 $ 61,409.5
================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF EARNINGS
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
REVENUES
Universal life and investment-type product policy fee
income...................................................... $ 771.0 $ 715.0 $ 644.5
Premiums...................................................... 606.8 625.6 599.1
Net investment income......................................... 2,127.7 2,030.9 2,599.3
Investment gains, net......................................... 5.3 91.8 533.4
Commissions, fees and other income............................ 886.8 845.4 1,717.2
Contribution from the Closed Block............................ 124.4 151.0 128.3
----------------- ----------------- -----------------
Total revenues.......................................... 4,522.0 4,459.7 6,221.8
----------------- ----------------- -----------------
BENEFITS AND OTHER DEDUCTIONS
Interest credited to policyholders' account balances.......... 1,244.2 1,201.3 1,330.0
Policyholders' benefits....................................... 1,011.3 920.6 1,003.9
Other operating costs and expenses............................ 1,856.5 1,943.1 3,584.2
----------------- ----------------- -----------------
Total benefits and other deductions..................... 4,112.0 4,065.0 5,918.1
----------------- ----------------- -----------------
Earnings before Federal income taxes and cumulative
effect of accounting change................................. 410.0 394.7 303.7
Federal income taxes.......................................... 112.4 101.2 91.3
----------------- ----------------- -----------------
Earnings before cumulative effect of accounting change........ 297.6 293.5 212.4
Cumulative effect of accounting change, net of Federal
income taxes................................................ - (27.1) -
----------------- ----------------- -----------------
Net Earnings.................................................. $ 297.6 $ 266.4 $ 212.4
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Common stock, at par value, beginning of year................. $ 2.5 $ 2.5 $ 2.0
Increase in par value......................................... - - .5
----------------- ----------------- -----------------
Common stock, at par value, end of year....................... 2.5 2.5 2.5
----------------- ----------------- -----------------
Capital in excess of par value, beginning of year............. 2,913.6 2,613.6 2,273.9
Additional capital in excess of par value..................... - 300.0 340.2
Increase in par value......................................... - - (.5)
----------------- ----------------- -----------------
Capital in excess of par value, end of year................... 2,913.6 2,913.6 2,613.6
----------------- ----------------- -----------------
Retained earnings, beginning of year.......................... 484.0 217.6 5.2
Net earnings.................................................. 297.6 266.4 212.4
----------------- ----------------- -----------------
Retained earnings, end of year................................ 781.6 484.0 217.6
----------------- ----------------- -----------------
Net unrealized investment (losses) gains, beginning of year... (203.0) 131.9 78.8
Change in unrealized investment gains (losses)................ 541.2 (334.9) (9.5)
Effect of adopting new accounting standard.................... - - 62.6
----------------- ----------------- -----------------
Net unrealized investment gains (losses), end of year......... 338.2 (203.0) 131.9
----------------- ----------------- -----------------
Minimum pension liability, beginning of year.................. (2.7) (15.0) -
Change in minimum pension liability........................... (32.4) 12.3 (15.0)
----------------- ----------------- -----------------
Minimum pension liability, end of year........................ (35.1) (2.7) (15.0)
----------------- ----------------- -----------------
TOTAL SHAREHOLDER'S EQUITY, END OF YEAR....................... $ 4,000.8 $ 3,194.4 $ 2,950.6
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Net earnings.................................................. $ 297.6 $ 266.4 $ 212.4
Adjustments to reconcile net earnings to net cash
provided (used) by operating activities:
Net change in trading activities and broker-dealer
related receivables/payables.............................. - - (4,177.8)
Increase in matched resale agreements....................... - - (2,900.5)
Increase in matched repurchase agreements................... - - 2,900.5
Investment gains, net of dealer and trading gains........... (5.3) (91.8) (160.8)
Change in amounts due from discontinued GIC Segment......... - 57.3 47.8
General Account policy charges.............................. (769.7) (711.9) (623.4)
Interest credited to policyholders' account balances........ 1,244.2 1,201.3 1,330.0
Changes in Closed Block assets and liabilities, net......... (69.6) (95.1) (73.3)
Other, net.................................................. 627.1 7.8 (416.1)
----------------- ----------------- -----------------
Net cash provided (used) by operating activities.............. 1,324.3 634.0 (3,861.2)
----------------- ----------------- -----------------
Cash flows from investing activities:
Maturities and repayments................................... 1,863.1 2,319.7 3,479.6
Sales....................................................... 8,901.4 5,661.9 7,399.2
Return of capital from joint ventures and limited
partnerships.............................................. 65.2 39.0 119.5
Purchases................................................... (11,675.5) (7,417.6) (11,184.2)
Decrease (increase) in loans to discontinued GIC Segment.... 1,226.9 (40.0) (880.0)
Cash received on sale of 61% interest in DLJ................ - - 346.7
Other, net.................................................. (625.5) (371.1) (317.0)
----------------- ----------------- -----------------
Net cash (used) provided by investing activities.............. (244.4) 191.9 (1,036.2)
----------------- ----------------- -----------------
Cash flows from financing activities:
Policyholders' account balances:
Deposits.................................................. 2,414.9 2,082.7 2,410.7
Withdrawals............................................... (2,692.7) (2,887.4) (2,433.5)
Net (decrease) increase in short-term financings............ (16.4) (173.0) 4,717.2
Additions to long-term debt................................. 599.7 51.8 97.7
Repayments of long-term debt................................ (40.7) (199.8) (64.4)
Proceeds from issuance of Alliance units.................... - 100.0 -
Payment of obligation to fund accumulated deficit of
discontinued GIC Segment.................................. (1,215.4) - -
Capital contribution from the Holding Company............... - 300.0 -
Other, net.................................................. (48.2) - -
----------------- ----------------- -----------------
Net cash (used) provided by financing activities.............. (998.8) (725.7) 4,727.7
----------------- ----------------- -----------------
Change in cash and cash equivalents........................... 81.1 100.2 (169.7)
Cash and cash equivalents, beginning of year.................. 693.6 593.4 763.1
----------------- ----------------- -----------------
Cash and Cash Equivalents, End of Year........................ $ 774.7 $ 693.6 $ 593.4
================= ================= =================
Supplemental cash flow information
Interest Paid............................................... $ 89.6 $ 34.9 $ 1,437.2
================= ================= =================
Income Taxes (Refunded) Paid................................ $ (82.7) $ 49.2 $ 41.0
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1) ORGANIZATION
The Equitable Life Assurance Society of the United States ("Equitable
Life") converted to a stock life insurance company on July 22, 1992 and
became a wholly owned subsidiary of The Equitable Companies Incorporated
(the "Holding Company"). Equitable Life's insurance business, which is
comprised of an Individual Insurance and Annuities segment and a Group
Pension segment is conducted principally by Equitable Life and its
wholly owned life insurance subsidiary, Equitable Variable Life
Insurance Company ("EVLICO"). Equitable Life's investment management
business, which comprises the Investment Services segment, is conducted
principally by Alliance Capital Management L.P. ("Alliance"), Equitable
Real Estate Investment Management, Inc. ("EREIM") and Donaldson, Lufkin
and Jenrette, Inc. ("DLJ"), an investment banking and brokerage
affiliate. AXA, a French holding company for an international group of
insurance and related financial services companies is the Holding
Company's largest shareholder, owning approximately 60.6% at December
31, 1995 (63.5% assuming conversion of Series E Convertible Preferred
Stock held by AXA and 54.2% if all securities convertible into, or
options on, common stock were to be converted or exercised).
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
-----------------------------------------------------
The accompanying consolidated financial statements are prepared in
conformity with generally accepted accounting principles ("GAAP").
The accompanying consolidated financial statements include the accounts
of Equitable Life and its wholly owned life insurance subsidiaries
(collectively, the "Insurance Group"); non-insurance subsidiaries,
principally Alliance, an investment advisory subsidiary and EREIM, a
real estate investment management subsidiary; and those partnerships and
joint ventures in which the Company has control and a majority economic
interest (collectively, including its consolidated subsidiaries, the
"Company"). The consolidated statement of earnings and cash flow for the
year ended December 31, 1993 include the results of operations and cash
flow of DLJ, an investment banking and brokerage affiliate, on a
consolidated basis through December 15, 1993 (see Note 20). Subsequent
to that date, DLJ is accounted for on the equity basis. The Closed Block
assets and liabilities and results of operations are presented in the
consolidated financial statements as single line items (see Note 6).
Unless specifically stated, all disclosures contained herein supporting
the consolidated financial statements exclude the Closed Block related
amounts.
The preparation of financial statements in conformity with GAAP 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.
All significant intercompany transactions and balances have been
eliminated in consolidation other than intercompany transactions and
balances with the Closed Block and the discontinued Guaranteed Interest
Contract ("GIC") Segment (see Note 7).
Certain reclassifications have been made in the amounts presented for
prior periods to conform these periods with the 1995 presentation.
F-6
<PAGE>
Closed Block
------------
As of July 22, 1992, Equitable Life established the Closed Block for the
benefit of certain classes of individual participating policies for
which Equitable Life had a dividend scale payable in 1991 and which were
in force on that date. Assets were allocated to the Closed Block in an
amount which, together with anticipated revenues from policies included
in the Closed Block, was reasonably expected to be sufficient to support
such business, including provision for payment of claims, certain
expenses and taxes, and for continuation of dividend scales payable in
1991, assuming the experience underlying such scales continues.
Assets allocated to the Closed Block inure solely to the benefit of the
holders of policies included in the Closed Block and will not revert to
the benefit of the Holding Company. The plan of demutualization
prohibits the reallocation, transfer, borrowing or lending of assets
between the Closed Block and other portions of Equitable Life's General
Account, any of its Separate Accounts or to any affiliate of Equitable
Life without the approval of the New York Superintendent of Insurance.
Closed Block assets and liabilities are carried on the same basis as
similar assets and liabilities held in the General Account.
The excess of Closed Block liabilities over Closed Block assets
represents the expected future post-tax contribution from the Closed
Block which would be recognized in income over the period the policies
and contracts in the Closed Block remain in force. If the actual
contribution from the Closed Block in any given period equals or exceeds
the expected contribution for such period as determined at the
establishment of the Closed Block, the expected contribution would be
recognized in income for that period. Any excess of the actual
contribution over the expected contribution would also be recognized in
income to the extent that the aggregate expected contribution for all
prior periods exceeded the aggregate actual contribution. Any remaining
excess of actual contribution over expected contributions would be
accrued in the Closed Block as a liability for future dividends to be
paid to the Closed Block policyholders. If, over the period the policies
and contracts in the Closed Block remain in force, the actual
contribution from the Closed Block is less than the expected
contribution from the Closed Block, only such actual contribution would
be recognized in income.
Discontinued Operations
-----------------------
In 1991, the Company's management adopted a plan to discontinue the
business operations of the GIC Segment, consisting of the Guaranteed
Interest Contract and Group Non-Participating Wind-Up Annuities lines of
business. The Company established a pre-tax provision for the estimated
future losses of the GIC line of business and a premium deficiency
reserve for the Group Non-Participating Wind-Up Annuities. Subsequent
losses incurred have been charged to the allowance for future losses and
the premium deficiency reserve. Total allowances are based upon
management's best judgment and there is no assurance that the ultimate
losses will not differ.
Accounting Changes
------------------
In the first quarter of 1995, the Company adopted Statement of Financial
Accounting Standards ("SFAS") No. 114, "Accounting by Creditors for
Impairment of a Loan". This statement applies to all loans, including
loans restructured in a troubled debt restructuring involving a
modification of terms. This statement addresses the accounting for
impairment of a loan by specifying how allowances for credit losses
should be determined. Impaired loans within the scope of this statement
are measured based on the present value of expected future cash flows
discounted at the loan's effective interest rate, at the loan's
observable market price or the fair value of the collateral if the loan
is collateral dependent. The Company provides for impairment of loans
through an allowance for possible losses. The adoption of this statement
did not have a material effect on the level of these allowances or on
the Company's consolidated statements of earnings and shareholder's
equity.
F-7
<PAGE>
In the fourth quarter of 1994 (effective as of January 1, 1994), the
Company adopted SFAS No. 112, "Employers' Accounting for Postemployment
Benefits," which required employers to recognize the obligation to
provide postemployment benefits. Implementation of this statement
resulted in a charge for the cumulative effect of accounting change of
$27.1 million, net of a Federal income tax benefit of $14.6 million.
At December 31, 1993, the Company adopted SFAS No. 115, "Accounting for
Certain Investments in Debt and Equity Securities," which expanded the
use of fair value accounting for those securities that a company does
not have positive intent and ability to hold to maturity. Implementation
of this statement increased consolidated shareholder's equity by $62.6
million, net of deferred policy acquisition costs, amounts attributable
to participating group annuity contracts and deferred Federal income
tax. Beginning coincident with issuance of SFAS No. 115 implementation
guidance in November 1995, the Financial Accounting Standards Board
("FASB") permitted companies a one-time opportunity, through December
31, 1995, to reassess the appropriateness of the classification of all
securities held at that time. On December 1, 1995, the Company
transferred $4,794.9 million of securities classified as held to
maturity to the available for sale portfolio. As a result consolidated
shareholder's equity increased by $126.2 million, net of deferred policy
acquisition costs, amounts attributable to participating group annuity
contracts and deferred Federal income tax.
New Accounting Pronouncements
-----------------------------
In January 1995, the FASB issued SFAS No. 120, "Accounting and Reporting
by Mutual Life Insurance Enterprises and by Insurance Enterprises for
Certain Long-Duration Participating Contracts," which permits, but does
not require, stock life insurance companies with participating life
contracts to account for those contracts in accordance with Statement of
Position No. 95-1, "Accounting for Certain Insurance Activities of
Mutual Life Insurance Enterprises". The Company has decided to retain
the existing methodology to account for traditional participating
policies and, therefore, will not adopt this statement.
In March 1995, the FASB issued SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
Of," which requires that long-lived assets and certain identifiable
intangibles be reviewed for impairment whenever events or changes in
circumstances indicate the carrying amount of such assets may not be
recoverable. The Company will implement this statement as of January 1,
1996. The cumulative effect of this accounting change will be a charge
of $23.4 million, net of a Federal income tax benefit of $12.1 million,
due to the writedown to fair value of building improvements relating to
facilities being vacated beginning in 1996. The Company currently
provides allowances for possible losses for other assets under the scope
of this statement. Management has not yet determined the impact of this
statement on assets to be held and used.
In May 1995, the FASB issued SFAS No. 122, "Accounting for Mortgage
Servicing Rights," which requires a mortgage banking enterprise to
recognize rights to service mortgage loans for others as separate assets
however those servicing rights are acquired. It further requires
capitalized mortgage servicing rights be assessed for impairment based
on the fair value of those rights. The Company will implement this
statement as of January 1, 1996. Implementation of this statement will
not have a material effect on the Company's consolidated financial
statements.
In October 1995, the FASB issued SFAS No. 123, "Accounting for
Stock-Based Compensation". This statement defines a fair value based
method of accounting for stock-based employee compensation plans while
continuing to allow an entity to measure compensation cost for such
plans using the intrinsic value based method of accounting. Management
has decided to retain the current compensation cost methodology
prescribed by Accounting Principles Board Opinion No. 25, "Accounting
for Stock Issued to Employees".
F-8
<PAGE>
Valuation of Investments
------------------------
Fixed maturities, which the Company has both the ability and the intent
to hold to maturity, are stated principally at amortized cost. Fixed
maturities identified as available for sale are reported at estimated
fair value. The amortized cost of fixed maturities is adjusted for
impairments in value deemed to be other than temporary.
Mortgage loans on real estate are stated at unpaid principal balances,
net of unamortized discounts and valuation allowances. Effective with
the adoption of SFAS No. 114 on January 1, 1995, the valuation
allowances are based on the present value of expected future cash flows
discounted at the loan's original effective interest rate or the
collateral value if the loan is collateral dependent. However, if
foreclosure is or becomes probable, the measurement method used is
collateral value. Prior to the adoption of SFAS No. 114, the valuation
allowances were based on losses expected by management to be realized on
transfers of mortgage loans to real estate (upon foreclosure or
in-substance foreclosure), on the disposition or settlement of mortgage
loans and on mortgage loans management believed may not be collectible
in full. In establishing valuation allowances, management previously
considered, among other things the estimated fair value of the
underlying collateral.
Real estate, including real estate acquired in satisfaction of debt, is
stated at depreciated cost less valuation allowances. At the date of
foreclosure (including in-substance foreclosure), real estate acquired
in satisfaction of debt is valued at estimated fair value. Valuation
allowances on real estate held for the production of income are computed
using the forecasted cash flows of the respective properties discounted
at a rate equal to the Company's cost of funds; valuation allowances on
real estate available for sale are computed using the lower of current
estimated fair value, net of disposition costs, or depreciated cost.
Policy loans are stated at unpaid principal balances.
Partnerships and joint venture interests in which the Company does not
have control and a majority economic interest are reported on the equity
basis of accounting and are included either with equity real estate or
other equity investments, as appropriate.
Common stocks are carried at estimated fair value and are included in
other equity investments.
Short-term investments are stated at amortized cost which approximates
fair value and are included with other invested assets.
Cash and cash equivalents includes cash on hand, amounts due from banks
and highly liquid debt instruments purchased with an original maturity
of three months or less.
All securities are recorded in the consolidated financial statements on
a trade date basis.
Investment Results and Unrealized Investment Gains (Losses)
-----------------------------------------------------------
Net investment income and realized investment gains and losses
(collectively, "investment results") related to certain participating
group annuity contracts are passed through to the contractholders as
interest credited to policyholders' account balances.
Realized investment gains and losses are determined by specific
identification and are presented as a component of revenue. Valuation
allowances are netted against the asset categories to which they apply
and changes in the valuation allowances are included in investment gains
or losses.
Unrealized investment gains and losses on fixed maturities available for
sale and equity securities held by the Company are accounted for as a
separate component of shareholder's equity, net of related deferred
Federal income taxes, amounts attributable to the discontinued GIC
Segment, Closed Block, participating group annuity contracts and
deferred policy acquisition costs related to universal life and
investment-type products.
F-9
<PAGE>
Recognition of Insurance Income and Related Expenses
----------------------------------------------------
Premiums from universal life and investment-type contracts are reported
as deposits to policyholders' account balances. Revenues from these
contracts consist of amounts assessed during the period against
policyholders' account balances for mortality charges, policy
administration charges and surrender charges. Policy benefits and claims
that are charged to expense include benefit claims incurred in the
period in excess of related policyholders' account balances.
Premiums from traditional life and annuity policies with life
contingencies generally are recognized as income when due. Benefits and
expenses are matched with such income so as to result in the recognition
of profits over the life of the contracts. This match is accomplished by
means of the provision for liabilities for future policy benefits and
the deferral and subsequent amortization of policy acquisition costs.
For contracts with a single premium or a limited number of premium
payments due over a significantly shorter period than the total period
over which benefits are provided, premiums are recorded as income when
due with any excess profit deferred and recognized in income in a
constant relationship to insurance in force or, for annuities, the
amount of expected future benefit payments.
Premiums from individual health contracts are recognized as income over
the period to which the premiums relate in proportion to the amount of
insurance protection provided.
Deferred Policy Acquisition Costs
---------------------------------
The costs of acquiring new business, principally commissions,
underwriting, agency and policy issue expenses, all of which vary with
and are primarily related to the production of new business, are
deferred. Deferred policy acquisition costs are subject to
recoverability testing at the time of policy issue and loss recognition
testing at the end of each accounting period.
For universal life products and investment-type products, deferred
policy acquisition costs are amortized over the expected average life of
the contracts (periods ranging from 15 to 35 years and 5 to 17 years,
respectively) as a constant percentage of estimated gross profits
arising principally from investment results, mortality and expense
margins and surrender charges based on historical and anticipated future
experience, updated at the end of each accounting period. The effect on
the amortization of deferred policy acquisition costs of revisions to
estimated gross profits is reflected in earnings in the period such
estimated gross profits are revised. The effect on the deferred policy
acquisition cost asset that would result from realization of unrealized
gains (losses) is recognized with an offset to unrealized gains (losses)
in consolidated shareholder's equity as of the balance sheet date.
For traditional life and annuity policies with life contingencies,
deferred policy acquisition costs are amortized in proportion to
anticipated premiums. Assumptions as to anticipated premiums are
estimated at the date of policy issue and are consistently applied
during the life of the contracts. Deviations from estimated experience
are reflected in earnings in the period such deviations occur. For these
contracts, the amortization periods generally are for the estimated life
of the policy.
For individual health benefit insurance, deferred policy acquisition
costs are amortized over the expected average life of the contracts (10
years for major medical policies and 20 years for disability income
products) in proportion to anticipated premium revenue at time of issue.
Policyholders' Account Balances and Future Policy Benefits
----------------------------------------------------------
Policyholders' account balances for universal life and investment-type
contracts are equal to the policy account values. The policy account
values represent an accumulation of gross premium payments plus credited
interest less expense and mortality charges and withdrawals.
F-10
<PAGE>
For traditional life insurance policies, future policy benefit and
dividend liabilities are estimated using a net level premium method on
the basis of actuarial assumptions as to mortality, persistency and
interest established at policy issue. Assumptions established at policy
issue as to mortality and persistency are based on the Insurance Group's
experience which, together with interest and expense assumptions,
provide a margin for adverse deviation. When the liabilities for future
policy benefits plus the present value of expected future gross premiums
for a product are insufficient to provide for expected future policy
benefits and expenses for that product, deferred policy acquisition
costs are written off and thereafter, if required, a premium deficiency
reserve is established by a charge to earnings. Benefit liabilities for
traditional annuities during the accumulation period are equal to
accumulated contractholders' fund balances and after annuitization are
equal to the present value of expected future payments. Interest rates
used in establishing such liabilities range from 2.25% to 11.5% for life
insurance liabilities and from 2.25% to 13.5% for annuity liabilities.
Individual health benefit liabilities for active lives are estimated
using the net level premium method, and assumptions as to future
morbidity, withdrawals and interest which provide a margin for adverse
deviation. Benefit liabilities for disabled lives are estimated using
the present value of benefits method and experience assumptions as to
claim terminations, expenses and interest.
Claim reserves and associated liabilities for individual disability
income and major medical policies were $639.6 million, $570.6 million at
December 31, 1995 and 1994, respectively. Incurred benefits (benefits
paid plus changes in claim reserves) and benefits paid for individual
disability income and major medical policies are summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Incurred benefits related to current year.......... $ 176.0 $ 188.6 $ 193.1
Incurred benefits related to prior years........... 67.8 28.7 106.1
----------------- ---------------- -----------------
Total Incurred Benefits............................ $ 243.8 $ 217.3 $ 299.2
================= ================ =================
Benefits paid related to current year.............. $ 37.0 $ 43.7 $ 48.9
Benefits paid related to prior years............... 137.8 132.3 123.1
----------------- ---------------- -----------------
Total Benefits Paid................................ $ 174.8 $ 176.0 $ 172.0
================= ================ =================
</TABLE>
The amount of policyholders' dividends to be paid (including those on
policies included in the Closed Block) is determined annually by
Equitable Life's Board of Directors. The aggregate amount of
policyholders' dividends is related to actual interest, mortality,
morbidity and expense experience for the year and judgment as to the
appropriate level of statutory surplus to be retained by Equitable Life.
Equitable Life is subject to limitations on the amount of statutory
profits which can be retained with respect to certain classes of
individual participating policies that were in force on July 22, 1992
which are not included in the Closed Block and with respect to
participating policies issued subsequent to July 22, 1992. Excess
statutory profits, if any, will be distributed over time to such
policyholders and will not be available to Equitable Life's shareholder.
Earnings in excess of limitations are accrued as policyholders'
dividends.
At December 31, 1995, participating policies including those in the
Closed Block represent approximately 27.2% ($58.4 billion) of directly
written life insurance in force, net of amounts ceded. Participating
policies represent primarily all of the premium income as reflected in
the consolidated statements of earnings and in the results of the Closed
Block.
F-11
<PAGE>
Federal Income Taxes
--------------------
Equitable Life and its life insurance and non-life insurance
subsidiaries file a consolidated Federal income tax return with the
Holding Company and its non-life insurance subsidiaries. Current Federal
income taxes are charged or credited to operations based upon amounts
estimated to be payable or recoverable as a result of taxable operations
for the current year. Deferred income tax assets and liabilities are
recognized based on the difference between financial statement carrying
amounts and income tax bases of assets and liabilities using enacted
income tax rates and laws.
Separate Accounts
-----------------
Separate Accounts are established in conformity with the New York State
Insurance Law and generally are not chargeable with liabilities that
arise from any other business of the Insurance Group. Separate Accounts
assets are subject to General Account claims only to the extent the
value of such assets exceeds the Separate Accounts liabilities.
Assets and liabilities of the Separate Accounts, representing net
deposits and accumulated net investment earnings less fees, held
primarily for the benefit of contractholders, and for which the
Insurance Group does not bear the investment risk, are shown as separate
captions in the consolidated balance sheets. The Insurance Group bears
the investment risk on assets held in one Separate Account, therefore,
such assets are carried on the same basis as similar assets held in the
General Account portfolio. Assets held in the other Separate Accounts
are carried at quoted market values or, where quoted values are not
available, at estimated fair values as determined by the Insurance
Group.
The investment results of Separate Accounts on which the Insurance Group
does not bear the investment risk are reflected directly in Separate
Accounts liabilities. For the years ended December 31, 1995, 1994 and
1993, investment results of such Separate Accounts were $1,956.3
million, $676.3 million and $1,676.5 million, respectively.
Deposits to all Separate Accounts are reported as increases in Separate
Accounts liabilities and are not reported in revenues. Mortality, policy
administration and surrender charges on all Separate Accounts are
included in revenues.
F-12
<PAGE>
3) INVESTMENTS
The following tables provide additional information relating to fixed
maturities and equity securities:
<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED ESTIMATED
COST GAINS LOSSES FAIR VALUE
----------------- ----------------- ---------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
DECEMBER 31, 1995
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 10,910.7 $ 617.6 $ 118.1 $ 11,410.2
Mortgage-backed.................... 1,838.0 31.2 1.2 1,868.0
U.S. Treasury securities and
U.S. government and
agency securities................ 2,257.0 77.8 4.1 2,330.7
States and political subdivisions.. 45.7 5.2 - 50.9
Foreign governments................ 124.5 11.0 .2 135.3
Redeemable preferred stock......... 108.1 5.3 8.6 104.8
----------------- ----------------- ---------------- ---------------
Total Available for Sale............... $ 15,284.0 $ 748.1 $ 132.2 $ 15,899.9
================= ================= ================ ===============
Equity Securities:
Common stock......................... $ 97.3 $ 49.1 $ 18.0 $ 128.4
================= ================= ================ ===============
December 31, 1994
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 5,663.4 $ 34.6 $ 368.0 $ 5,330.0
Mortgage-backed.................... 686.0 2.9 44.8 644.1
U.S. Treasury securities and
U.S. government and
agency securities................ 1,519.3 6.7 71.9 1,454.1
States and political subdivisions.. 23.4 .1 .7 22.8
Foreign governments................ 43.8 .3 4.2 39.9
Redeemable preferred stock......... 108.4 .4 13.7 95.1
----------------- ----------------- ---------------- ---------------
Total Available for Sale............... $ 8,044.3 $ 45.0 $ 503.3 $ 7,586.0
================= ================= ================ ===============
Held to Maturity:
Corporate.......................... $ 4,661.0 $ 67.9 $ 233.8 $ 4,495.1
U.S. Treasury securities and
U.S. government and
agency securities................ 428.9 4.6 44.2 389.3
States and political subdivisions.. 63.4 .9 3.7 60.6
Foreign governments................ 69.7 4.2 2.0 71.9
================= ================= ================ ===============
Total Held to Maturity................. $ 5,223.0 $ 77.6 $ 283.7 $ 5,016.9
================= ================= ================ ===============
Equity Securities:
Common stock......................... $ 126.4 $ 31.2 $ 23.5 $ 134.1
================= ================= ================ ===============
</TABLE>
F-13
<PAGE>
For publicly traded fixed maturities and equity securities, estimated
fair value is determined using quoted market prices. For fixed
maturities without a readily ascertainable market value, the Company has
determined an estimated fair value using a discounted cash flow
approach, including provisions for credit risk, generally based upon the
assumption that such securities will be held to maturity. Estimated fair
value for equity securities, substantially all of which do not have a
readily ascertainable market value, has been determined by the Company.
Such estimated fair values do not necessarily represent the values for
which these securities could have been sold at the dates of the
consolidated balance sheets. At December 31, 1995 and 1994, securities
without a readily ascertainable market value having an amortized cost of
$3,748.9 million and $3,980.4 million, respectively, had estimated fair
values of $3,981.8 million and $3,858.7 million, respectively.
The contractual maturity of bonds at December 31, 1995 is shown below:
<TABLE>
<CAPTION>
AVAILABLE FOR SALE
------------------------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Due in one year or less................................................ $ 357.9 $ 360.0
Due in years two through five.......................................... 3,773.1 3,847.1
Due in years six through ten........................................... 4,709.8 4,821.8
Due after ten years.................................................... 4,497.1 4,898.2
Mortgage-backed securities............................................. 1,838.0 1,868.0
---------------- -----------------
Total.................................................................. $ 15,175.9 $ 15,795.1
================ =================
</TABLE>
Bonds not due at a single maturity date have been included in the above
table in the year of final maturity. Actual maturities will differ from
contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties.
Investment valuation allowances and changes thereto are shown below:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Balances, beginning of year........................ $ 284.9 $ 355.6 $ 512.0
Additions charged to income........................ 136.0 51.0 92.8
Deductions for writedowns and asset dispositions... (95.6) (121.7) (249.2)
----------------- ---------------- -----------------
Balances, End of Year.............................. $ 325.3 $ 284.9 $ 355.6
================= ================ =================
Balances, end of year comprise:
Mortgage loans on real estate.................... $ 65.5 $ 64.2 $ 144.4
Equity real estate............................... 259.8 220.7 211.2
----------------- ---------------- -----------------
Total.............................................. $ 325.3 $ 284.9 $ 355.6
================= ================ =================
</TABLE>
Deductions for writedowns and asset dispositions for 1993 include an
$87.1 million writedown of fixed maturity investments at December 31,
1993 as a result of adopting a new accounting statement for the
valuation of these investments that requires specific writedowns instead
of valuation allowances.
At December 31, 1995, the carrying values of investments held for the
production of income which were non-income producing for the twelve
months preceding the consolidated balance sheet date were $37.2 million
of fixed maturities and $84.7 million of mortgage loans on real estate.
F-14
<PAGE>
The Insurance Group's fixed maturity investment portfolio includes
corporate high yield securities consisting of public high yield bonds,
redeemable preferred stocks and directly negotiated debt in leveraged
buyout transactions. The Insurance Group seeks to minimize the higher
than normal credit risks associated with such securities by monitoring
the total investments in any single issuer or total investment in a
particular industry group. Certain of these corporate high yield
securities are classified as other than investment grade by the various
rating agencies, i.e., a rating below Baa or National Association of
Insurance Commissioners ("NAIC") designation of 3 (medium grade), 4 or 5
(below investment grade) or 6 (in or near default). At December 31,
1995, approximately 15.57% of the $15,139.9 million aggregate amortized
cost of bonds held by the Insurance Group were considered to be other
than investment grade.
In addition to its holdings of corporate high yield securities, the
Insurance Group is an equity investor in limited partnership interests
which primarily invest in securities considered to be other than
investment grade.
The Company has restructured or modified the terms of certain fixed
maturity investments. The fixed maturity portfolio, based on amortized
cost, includes $15.9 million and $30.5 million at December 31, 1995 and
1994, respectively, of such restructured securities. These amounts
include fixed maturities which are in default as to principal and/or
interest payments, are to be restructured pursuant to commenced
negotiations or where the borrowers went into bankruptcy subsequent to
acquisition (collectively, "problem fixed maturities") of $1.6 million
and $9.7 million as of December 31, 1995 and 1994, respectively. Gross
interest income that would have been recorded in accordance with the
original terms of restructured fixed maturities amounted to $3.0
million, $7.5 million and $11.7 million in 1995, 1994 and 1993,
respectively. Gross interest income on these fixed maturities included
in net investment income aggregated $2.9 million, $6.8 million and $9.7
million in 1995, 1994 and 1993, respectively.
At December 31, 1995 and 1994, mortgage loans on real estate with
scheduled payments 60 days (90 days for agricultural mortgages) or more
past due or in foreclosure (collectively, "problem mortgage loans on
real estate") had an amortized cost of $87.7 million (2.4% of total
mortgage loans on real estate) and $96.9 million (2.3% of total mortgage
loans on real estate), respectively.
The payment terms of mortgage loans on real estate may from time to time
be restructured or modified. The investment in restructured mortgage
loans on real estate, based on amortized cost, amounted to $531.5
million and $447.9 million at December 31, 1995 and 1994, respectively.
These amounts include $3.8 million and $1.0 million of problem mortgage
loans on real estate at December 31, 1995 and 1994, respectively. Gross
interest income on restructured mortgage loans on real estate that would
have been recorded in accordance with the original terms of such loans
amounted to $52.1 million, $44.9 million and $51.8 million in 1995, 1994
and 1993, respectively. Gross interest income on these loans included in
net investment income aggregated $37.4 million, $32.8 million and $46.0
million in 1995, 1994 and 1993, respectively.
Impaired mortgage loans (as defined under SFAS No. 114) along with the
related provision for losses were as follows:
<TABLE>
<CAPTION>
December 31, 1995
-------------------
(IN MILLIONS)
<S> <C>
Impaired mortgage loans with provision for losses....................................... $ 310.1
Impaired mortgage loans with no provision for losses.................................... 160.8
-------------------
Recorded investment in impaired mortgage loans.......................................... 470.9
Provision for losses.................................................................... 62.7
-------------------
Net Impaired Mortgage Loans............................................................. $ 408.2
===================
</TABLE>
F-15
<PAGE>
Impaired mortgage loans with no provision for losses are loans where the
fair value of the collateral or the net present value of the loan equals
or exceeds the recorded investment. Interest income earned on loans
where the collateral value is used to measure impairment is recorded on
a cash basis. Interest income on loans where the present value method is
used to measure impairment is accrued on the net carrying value amount
of the loan at the interest rate used to discount the cash flows.
Changes in the present value attributable to changes in the amount or
timing of expected cash flows are reported as investment gains or
losses.
During the year ended December 31, 1995, the Company's average recorded
investment in impaired mortgage loans was $429.0 million. Interest
income recognized on these impaired mortgage loans totaled $27.9 million
for the year ended December 31, 1995, including $13.4 million recognized
on a cash basis.
At December 31, 1995, investments owned of any one issuer, including its
affiliates, for which the aggregate carrying values are 10% or more of
total shareholders' equity, were $508.3 million relating to Trammell
Crow and affiliates (including holdings of the Closed Block and the
discontinued GIC Segment). The amount includes restructured mortgage
loans on real estate with an amortized cost of $152.4 million. A $294.0
million commercial loan package which was in bankruptcy at the beginning
of the year was resolved in 1995, with part of the package reclassified
as restructured and the remainder reclassified as equity real estate.
The Insurance Group's investment in equity real estate is through direct
ownership and through investments in real estate joint ventures. At
December 31, 1995 and 1994, the carrying value of equity real estate
available for sale amounted to $255.5 million and $447.8 million,
respectively. For the years ended December 31, 1995, 1994 and 1993,
respectively, real estate of $35.3 million, $189.8 million and $261.8
million was acquired in satisfaction of debt. At December 31, 1995 and
1994, the Company owned $862.7 million and $1,086.9 million,
respectively, of real estate acquired in satisfaction of debt.
Depreciation of real estate is computed using the straight-line method
over the estimated useful lives of the properties, which generally range
from 40 to 50 years. Accumulated depreciation on real estate was $662.4
million and $703.1 million at December 31, 1995 and 1994, respectively.
Depreciation expense on real estate totaled $121.7 million, $117.0
million and $115.3 million for the years ended December 31, 1995, 1994
and 1993, respectively.
F-16
<PAGE>
4) JOINT VENTURES AND PARTNERSHIPS
Summarized combined financial information of real estate joint ventures
(38 and 47 individual ventures as of December 31, 1995 and 1994,
respectively) and of limited partnership interests accounted for under
the equity method, in which the Company has an investment of $10.0
million or greater and an equity interest of 10% or greater is as
follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
FINANCIAL POSITION
Investments in real estate, at depreciated cost........................ $ 2,684.1 $ 2,786.7
Investments in securities, generally at estimated fair value........... 2,459.8 3,071.2
Cash and cash equivalents.............................................. 489.1 359.8
Other assets........................................................... 270.8 398.7
---------------- -----------------
Total assets........................................................... 5,903.8 6,616.4
---------------- -----------------
Borrowed funds - third party........................................... 1,782.3 1,759.6
Borrowed funds - the Company........................................... 220.5 238.0
Other liabilities...................................................... 593.9 987.7
---------------- -----------------
Total liabilities...................................................... 2,596.7 2,985.3
---------------- -----------------
Partners' Capital...................................................... $ 3,307.1 $ 3,631.1
================ =================
Equity in partners' capital included above............................. $ 902.2 $ 964.2
Equity in limited partnership interests not included above............. 212.8 224.6
Excess (deficit) of equity in partners' capital over investment cost
and equity earnings.................................................. 3.6 (1.8)
Notes receivable from joint venture.................................... 5.3 6.1
---------------- -----------------
Carrying Value......................................................... $ 1,123.9 $ 1,193.1
================ =================
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Revenues of real estate joint ventures............. $ 463.5 $ 537.7 $ 602.7
Revenues of other limited partnership interests.... 242.3 103.4 319.1
Interest expense - third party..................... (135.3) (114.9) (118.8)
Interest expense - the Company..................... (41.0) (36.9) (52.1)
Other expenses..................................... (397.7) (430.9) (531.7)
----------------- ---------------- -----------------
Net Earnings....................................... $ 131.8 $ 58.4 $ 219.2
================= ================ =================
Equity in net earnings included above.............. $ 49.1 $ 18.9 $ 71.6
Equity in net earnings of limited partnerships
interests not included above..................... 44.8 25.3 46.3
Excess of earnings in joint ventures over equity
ownership percentage and amortization of
differences in bases............................. .9 1.8 9.2
Interest on notes receivable....................... .1 - .5
----------------- ---------------- -----------------
Total Equity in Net Earnings....................... $ 94.9 $ 46.0 $ 127.6
================= ================ =================
</TABLE>
F-17
<PAGE>
5) NET INVESTMENT INCOME AND INVESTMENT GAINS (LOSSES)
The sources of net investment income are summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities................................... $ 1,151.0 $ 1,024.5 $ 981.7
Trading account securities......................... - - 709.3
Securities purchased under resale agreements....... - - 533.8
Mortgage loans on real estate...................... 329.0 384.3 457.4
Equity real estate................................. 560.4 561.8 539.1
Other equity investments........................... 76.9 35.7 110.4
Policy loans....................................... 144.4 122.7 117.0
Broker-dealer related receivables.................. - - 292.2
Other investment income............................ 279.7 336.3 304.9
----------------- ---------------- -----------------
Gross investment income.......................... 2,541.4 2,465.3 4,045.8
----------------- ---------------- -----------------
Interest expense to finance short-term trading
instruments...................................... - - 983.4
Other investment expenses.......................... 413.7 434.4 463.1
----------------- ---------------- -----------------
Investment expenses.............................. 413.7 434.4 1,446.5
----------------- ---------------- -----------------
Net Investment Income.............................. $ 2,127.7 $ 2,030.9 $ 2,599.3
================= ================ =================
</TABLE>
Investment gains (losses), net, including changes in the valuation
allowances, are summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities................................... $ 119.9 $ (14.1) $ 123.1
Mortgage loans on real estate...................... (40.2) (43.1) (65.1)
Equity real estate................................. (86.6) 20.6 (18.5)
Other equity investments........................... 12.8 76.0 119.5
Dealer and trading gains........................... - - 372.5
Sales of newly issued Alliance Units............... - 52.4 -
Other.............................................. (.6) - 1.9
----------------- ---------------- -----------------
Investment Gains, Net.............................. $ 5.3 $ 91.8 $ 533.4
================= ================ =================
</TABLE>
Writedowns of fixed maturities amounted to $46.7 million, $30.8 million
and $5.4 million for the years ended December 31, 1995, 1994 and 1993,
respectively.
For the years ended December 31, 1995 and 1994, respectively, proceeds
received on sales of fixed maturities classified as available for sale
amounted to $8,206.0 million and $5,253.9 million. Gross gains of $211.4
million and $65.2 million and gross losses of $64.2 million and $50.8
million, respectively, were realized on these sales. The change in
unrealized investment gains (losses) related to fixed maturities
classified as available for sale for the years ended December 31, 1995
and 1994 amounted to $1,077.2 million and $(742.2) million,
respectively.
Gross gains of $188.5 million and gross losses of $145.0 million were
realized on sales of investments in fixed maturities held for investment
and available for sale for the year ended December 31, 1993.
F-18
<PAGE>
During each of the years ended December 31, 1995 and 1994, one security
classified as held to maturity was sold and during the eleven months
ended November 30, 1995 and the year ended December 31, 1994,
respectively, twelve and six securities so classified were transferred
to the available for sale portfolio. All actions were taken as a result
of a significant deterioration in creditworthiness. The aggregate
amortized cost of the securities sold were $1.0 million and $19.9
million with a related investment gain of $-0- million and $.8 million
recognized in 1995 and 1994, respectively; the aggregate amortized cost
of the securities transferred was $116.0 million and $42.8 million with
gross unrealized investment losses of $3.2 million and $3.1 million
charged to consolidated shareholders' equity for the eleven months ended
November 30, 1995 and the year ended December 31, 1994, respectively. On
December 1, 1995, the Company transferred $4,794.9 million of securities
classified as held to maturity to the available for sale portfolio. As a
result, unrealized gains on fixed maturities increased $307.0 million,
offset by deferred policy acquisition costs of $73.7 million, amounts
attributable to participating group annuity contracts of $39.2 million
and deferred Federal income tax of $67.9 million.
Investment gains from other equity investments for the year ended
December 31, 1993, included $79.9 million generated by DLJ's involvement
in long-term corporate development investments.
For the years ended December 31, 1995, 1994 and 1993, investment results
passed through to certain participating group annuity contracts as
interest credited to policyholders' account balances amounted to $131.2
million, $175.8 million and $243.2 million, respectively.
During 1995, Alliance entered into an agreement to acquire the business
of Cursitor-Eaton Asset Management Company and Cursitor Holdings Limited
(collectively, "Cursitor") for approximately $141.5 million consisting
of $84.9 million in cash, 1,764,115 of Alliance's publicly traded units
("Alliance Units"), 6% notes aggregating $21.5 million payable ratably
over four years, and substantial additional consideration which will be
determined at a later date. The transaction, which is expected to be
completed during the first quarter of 1996, is subject to the receipt of
consents, regulatory approvals, and certain other closing conditions,
including client approval of the transfer of Cursitor accounts. Upon
completion of this transaction, the Company's ownership percentage of
Alliance will be reduced.
In 1994, Alliance sold 4.96 million newly issued Alliance Units to third
parties at prevailing market prices. The sales decreased the Company's
ownership of Alliance's Units from 63.2% to 59.2%. In addition, the
Company continues to hold its 1% general partnership interest in
Alliance. The Company recognized an investment gain of $52.4 million as
a result of these transactions.
The Company's ownership interest in Alliance will be further reduced
upon the exercise of options granted to certain Alliance employees. At
December 31, 1995, Alliance had options outstanding to purchase an
aggregate of 4.8 million Alliance Units at a price ranging from $6.0625
to $22.25 per unit. Options are exercisable at a rate of 20% on each of
the first five anniversary dates from the date of grant.
Net unrealized investment gains (losses), included in the consolidated
balance sheets as a component of equity and the changes for the
corresponding years, are summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year......................... $ (203.0) $ 131.9 $ 78.8
Changes in unrealized investment (losses) gains.... 1,117.7 (823.8) (14.1)
Effect of adopting SFAS No. 115.................... - - 283.9
Changes in unrealized investment (gains)
losses attributable to:
Participating group annuity contracts.......... (78.1) 40.8 (36.2)
Deferred policy acquisition costs.............. (208.4) 269.5 (150.5)
Deferred Federal income taxes.................. (290.0) 178.6 (30.0)
----------------- ---------------- -----------------
Balance, End of Year............................... $ 338.2 $ (203.0) $ 131.9
================= ================ =================
</TABLE>
F-19
<PAGE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Balance, end of year comprises:
Unrealized investment (losses) gains on:
Fixed maturities............................... $ 615.9 $ (461.3) $ 283.9
Other equity investments....................... 31.1 7.7 75.8
Other.......................................... 31.6 14.5 25.0
----------------- ---------------- -----------------
Total........................................ 678.6 (439.1) 384.7
Amounts of unrealized investment (gains)
losses attributable to:
Participating group annuity contracts........ (72.2) 5.9 (34.9)
Deferred policy acquisition costs............ (89.4) 119.0 (150.5)
Deferred Federal income taxes................ (178.8) 111.2 (67.4)
----------------- ---------------- -----------------
Total.............................................. $ 338.2 $ (203.0) $ 131.9
================= ================ =================
</TABLE>
6) CLOSED BLOCK
Summarized financial information of the Closed Block follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets
Fixed Maturities:
Available for sale, at estimated fair value (amortized cost,
$3,662.8 and $1,270.3)........................................... $ 3,896.2 $ 1,197.0
Held to maturity, at amortized cost (estimated fair value of
$1,785.0 in 1994)................................................ - 1,927.8
Mortgage loans on real estate........................................ 1,368.8 1,543.7
Policy loans......................................................... 1,797.2 1,827.9
Cash and other invested assets....................................... 440.9 442.5
Deferred policy acquisition costs.................................... 823.6 878.1
Other assets......................................................... 286.1 288.5
----------------- -----------------
Total Assets......................................................... $ 8,612.8 $ 8,105.5
================= =================
Liabilities
Future policy benefits and policyholders' account balances........... $ 9,346.7 $ 8,965.3
Other liabilities.................................................... 160.5 104.2
----------------- -----------------
Total Liabilities.................................................... $ 9,507.2 $ 9,069.5
================= =================
</TABLE>
F-20
<PAGE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Premiums and other revenue......................... $ 753.4 $ 798.1 $ 860.2
Investment income (net of investment
expenses of $26.7, $19.0 and $17.3).............. 538.9 523.0 526.5
Investment losses, net............................. (20.2) (24.0) (15.0)
----------------- ---------------- -----------------
Total revenues............................... 1,272.1 1,297.1 1,371.7
----------------- ---------------- -----------------
Benefits and Other Deductions
Policyholders' benefits and dividends.............. 1,085.1 1,075.6 1,141.4
Other operating costs and expenses................. 62.6 70.5 102.0
----------------- ---------------- -----------------
Total benefits and other deductions.......... 1,147.7 1,146.1 1,243.4
----------------- ---------------- -----------------
Contribution from the Closed Block................. $ 124.4 $ 151.0 $ 128.3
================= ================ =================
</TABLE>
The fixed maturity portfolio, based on amortized cost, includes $4.3
million and $23.8 million at December 31, 1995 and 1994, respectively,
of restructured securities which includes problem fixed maturities of
$1.9 million and $6.4 million, respectively.
During the eleven months ended November 30, 1995, one security
classified as held to maturity was sold and ten securities classified as
held to maturity were transferred to the available for sale portfolio.
All actions resulted from a significant deterioration in
creditworthiness. The amortized cost of the security sold was $4.2
million. The aggregate amortized cost of the securities transferred was
$81.3 million with gross unrealized investment losses of $.1 million
transferred to equity. At December 1, 1995, $1,750.7 million of
securities classified as held to maturity were transferred to the
available for sale portfolio. As a result, unrealized gains of $88.5
million on fixed maturities were recognized and offset by an increase to
the deferred dividend liability. Implementation of SFAS No. 115 for the
valuation of fixed maturities at December 31, 1993 resulted in the
recognition of a deferred dividend liability of $49.6 million.
At December 31, 1995 and 1994, problem mortgage loans on real estate had
an amortized cost of $36.5 million and $27.6 million, respectively, and
mortgage loans on real estate for which the payment terms have been
restructured had an amortized cost of $137.7 million and $179.2 million,
respectively. At December 31, 1995 and 1994, the restructured mortgage
loans on real estate amount included $8.8 million and $.7 million,
respectively, of problem mortgage loans on real estate.
Valuation allowances amounted to $18.4 million and $46.2 million on
mortgage loans on real estate and $4.3 million and $2.6 million on
equity real estate at December 31, 1995 and 1994, respectively.
Writedowns of fixed maturities amounted to $16.8 million and $15.9
million and $1.7 million for the years ended December 31, 1995, 1994 and
1993, respectively.
Many expenses related to Closed Block operations are charged to
operations outside of the Closed Block; accordingly, the contribution
from the Closed Block does not represent the actual profitability of the
Closed Block operations. Operating costs and expenses outside of the
Closed Block are, therefore, disproportionate to the business outside of
the Closed Block.
F-21
<PAGE>
7) DISCONTINUED OPERATIONS
Summarized financial information of the GIC Segment follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets
Mortgage loans on real estate........................................ $ 1,485.8 $ 1,730.5
Equity real estate................................................... 1,122.1 1,194.8
Other invested assets................................................ 665.2 978.8
Other assets......................................................... 579.3 529.5
----------------- -----------------
Total Assets......................................................... $ 3,852.4 $ 4,433.6
================= =================
Liabilities
Policyholders' liabilities........................................... $ 1,399.8 $ 1,924.0
Allowance for future losses.......................................... 164.2 185.6
Amounts due to continuing operations................................. 2,097.1 2,108.6
Other liabilities.................................................... 191.3 215.4
----------------- -----------------
Total Liabilities.................................................... $ 3,852.4 $ 4,433.6
================= =================
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Investment income (net of investment expenses
of $143.8, $174.0 and $175.8).................... $ 325.1 $ 395.0 $ 535.1
Investment (losses) gains, net..................... (22.9) 26.8 (22.6)
Policy fees, premiums and other income............. .7 .3 8.7
----------------- ---------------- -----------------
Total revenues..................................... 302.9 422.1 521.2
Benefits and other deductions...................... 328.0 443.8 545.9
----------------- ---------------- -----------------
Losses Charged to Allowance for Future Losses...... $ (25.1) $ (21.7) $ (24.7)
================= ================ =================
</TABLE>
In 1991, the Company established a pre-tax provision of $396.7 million
for the estimated future losses of the GIC Segment. At December 31,
1993, implementation of SFAS No. 115 for the valuation of fixed
maturities resulted in a benefit of $13.1 million, offset by a
corresponding addition to the allowance for future losses.
The amounts due to continuing operations at December 31, 1994 consisted
of $3,324.0 million borrowed by the GIC Segment from continuing
operations, offset by $1,215.4 million representing an obligation of
continuing operations to provide assets to fund the accumulated deficit
of the GIC Segment. In January 1995, continuing operations transferred
$1,215.4 million in cash to the GIC Segment in settlement of its
obligation. Subsequently, the GIC Segment remitted $1,155.4 million in
cash to continuing operations in partial repayment of borrowings by the
GIC Segment. No gains or losses were recognized on these transactions.
Amounts due to continuing operations at December 31, 1995, consisted of
$2,097.1 million borrowed by the discontinued GIC Segment.
F-22
<PAGE>
Investment income included $88.2 million and $97.7 million of interest
income for the years ended December 31, 1994 and 1993, respectively, on
amounts due from continuing operations. Benefits and other deductions
includes $154.6 million, $219.7 million and $197.1 million of interest
expense related to amounts borrowed from continuing operations in 1995,
1994 and 1993, respectively.
Valuation allowances amounted to $19.2 million and $50.2 million on
mortgage loans on real estate and $77.9 million and $74.7 million on
equity real estate at December 31, 1995 and 1994, respectively.
Writedowns of fixed maturities amounted to $8.1 million, $17.8 million
and $1.1 million for the years ended December 31, 1995, 1994 and 1993,
respectively.
The fixed maturity portfolio, based on amortized cost, includes $15.1
million and $43.3 million at December 31, 1995 and 1994, respectively,
of restructured securities. These amounts include problem fixed
maturities of $6.1 million and $9.7 million at December 31, 1995 and
1994, respectively.
At December 31, 1995 and 1994, problem mortgage loans on real estate had
amortized costs of $35.4 million and $14.9 million, respectively, and
mortgage loans on real estate for which the payment terms have been
restructured had amortized costs of $289.3 million and $371.2 million,
respectively.
At December 31, 1995 and 1994, the GIC Segment had $310.9 million and
$312.2 million, respectively, of real estate acquired in satisfaction of
debt.
8) SHORT-TERM AND LONG-TERM DEBT
Short-term and long-term debt consists of the following:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Short-term debt...................................................... $ - $ 20.0
----------------- -----------------
Long-term debt:
Equitable Life:
Surplus notes, 6.95%, scheduled to mature 2005..................... 399.3 -
Surplus notes, 7.70%, scheduled to mature 2015..................... 199.6 -
Eurodollar notes, 10.375% due 1995................................. - 34.6
Eurodollar notes, 10.5% due 1997................................... 76.2 76.2
Zero coupon note, 11.25% due 1997.................................. 120.1 107.8
Other.............................................................. 16.3 14.3
----------------- -----------------
Total Equitable Life........................................... 811.5 232.9
----------------- -----------------
Wholly Owned and Joint Venture Real Estate:
Mortgage notes, 4.98% - 12.75% due through 2019.................... 1,084.4 1,080.6
----------------- -----------------
Alliance:
Other.............................................................. 3.4 3.9
----------------- -----------------
Total long-term debt................................................. 1,899.3 1,317.4
----------------- -----------------
Total Short-term and Long-term Debt.................................. $ 1,899.3 $ 1,337.4
================= =================
</TABLE>
Short-term Debt
---------------
Equitable Life has a $350.0 million bank credit facility available to
fund short-term working capital needs and to facilitate the securities
settlement process. The credit facility consists of two types of
borrowing options with varying interest rates. The interest rates are
based on external indices dependent on the type of borrowing and at
December 31, 1995 range from 5.8% (the London Interbank Offering Rate
plus 22.5 basis points) to 8.5% (the prime rate). There were no
borrowings outstanding under this bank credit facility at December 31,
1995.
F-23
<PAGE>
Equitable Life has a commercial paper program with an issue limit of
$500.0 million. This program is available for general corporate purposes
used to support Equitable Life's liquidity needs and is supported by
Equitable Life's existing $350.0 million five-year bank credit facility.
There were no borrowings outstanding under this program at December 31,
1995.
In 1994, Alliance established a $100.0 million revolving credit facility
with several banks. On March 31, 1997, the revolving credit facility
converts into a term loan payable in quarterly installments through
March 31, 1999. Outstanding borrowings generally bear interest at the
Eurodollar rate plus .875% per annum through March 31, 1997 and at the
Eurodollar rate plus 1.125% per annum after conversion through March 31,
1999. In addition, a quarterly commitment fee of .25% per annum is paid
on the average daily unused amount. At December 31, 1995, there were no
amounts outstanding under the facility.
In 1994, Alliance also established a $100.0 million commercial paper
program and entered into a three-year $100.0 million revolving credit
facility with a group of commercial banks to support commercial paper to
be issued under the program and for general corporate purposes. Amounts
outstanding under the facility bear interest at an annual rate ranging
from the Eurodollar rate plus .225% to the Eurodollar rate plus .2875%.
A fee of .125% per annum is paid quarterly on the entire facility. At
December 31, 1995, Alliance had not issued any commercial paper and
there were no amounts outstanding under the revolving credit facility.
During 1994, EREIM established two bank lines of credit totaling $30.0
million of which $20.0 million was outstanding at December 31, 1994.
Long-term Debt
--------------
Several of the long-term debt agreements have restrictive covenants
related to the total amount of debt, net tangible assets and other
matters. The Company is in compliance with all debt covenants.
On December 18, 1995, Equitable Life issued, in accordance with Section
1307 of the New York Insurance Law, $400.0 million of surplus notes
having an interest rate of 6.95% scheduled to mature in 2005 and $200.0
million of surplus notes having an interest rate of 7.70% scheduled to
mature in 2015. Proceeds from the issuance of the surplus notes were
$596.6 million, net of related issuance costs. The unamortized discount
on the surplus notes was $1.1 million at December 31, 1995. Payments of
interest on or principal of the surplus notes are subject to prior
approval by the New York Insurance Department.
The Company has pledged real estate, mortgage loans, cash and securities
amounting to $1,629.7 million and $1,744.4 million at December 31, 1995
and 1994, respectively, as collateral for certain long-term debt.
At December 31, 1995, aggregate maturities of the long-term debt based
on required principal payments at maturity for 1996 and the succeeding
four years are $124.0 million, $466.6 million, $309.5 million, $15.8
million, respectively, and $1,015.0 million thereafter.
9) FEDERAL INCOME TAXES
A summary of the Federal income tax expense (benefit) in the
consolidated statements of earnings is shown below:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Federal income tax expense (benefit):
Current.......................................... $ (11.7) $ 4.0 $ 115.8
Deferred......................................... 124.1 97.2 (24.5)
----------------- ---------------- -----------------
Total.............................................. $ 112.4 $ 101.2 $ 91.3
================= ================ =================
</TABLE>
F-24
<PAGE>
The Federal income taxes attributable to consolidated operations are
different from the amounts determined by multiplying the earnings before
Federal income taxes and cumulative effect of accounting change by the
expected Federal income tax rate of 35%. The sources of the difference
and the tax effects of each are as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Expected Federal income tax expense................ $ 143.5 $ 138.1 $ 106.3
Differential earnings amount....................... - (16.8) (23.2)
Adjustment of tax audit reserves................... 4.1 (4.6) 22.9
Tax rate adjustment................................ - - (5.0)
Other.............................................. (35.2) (15.5) (9.7)
----------------- --------------- -----------------
Federal Income Tax Expense......................... $ 112.4 $ 101.2 $ 91.3
================= ================ =================
</TABLE>
Prior to the date of demutualization, Equitable Life reduced its
deduction for policyholder dividends by the differential earnings
amount. This amount was computed, for each tax year, by multiplying
Equitable Life's average equity base, as determined for tax purposes, by
an estimate of the excess of an imputed earnings rate for stock life
insurance companies over the average mutual life insurance companies'
earnings rate. The differential earnings amount for each tax year was
subsequently recomputed when actual earnings rates were published by the
Internal Revenue Service. As a stock life insurance company, Equitable
Life is no longer required to reduce its policyholder dividend deduction
by the differential earnings amount, but differential earnings amounts
for pre-demutualization years were still being recomputed in 1994 and
1993.
The components of the net deferred Federal income tax asset are as
follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1995 December 31, 1994
--------------------------------- ---------------------------------
ASSETS LIABILITIES Assets Liabilities
--------------- ---------------- --------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Deferred policy acquisition costs,
reserves and reinsurance............. $ - $ 303.2 $ - $ 220.3
Investments............................ - 326.9 - 18.7
Compensation and related benefits...... 293.0 - 307.3 -
Other.................................. - 32.3 - 5.8
--------------- ---------------- --------------- ---------------
Total.................................. $ 293.0 $ 662.4 $ 307.3 $ 244.8
=============== ================ =============== ===============
</TABLE>
The deferred Federal income tax expense (benefit) impacting operations
reflect the net tax effects of temporary differences between the
carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. The sources of
these temporary differences and the tax effects of each are as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Deferred policy acquisition costs, reserves
and reinsurance.................................. $ 55.1 $ 13.0 $ (46.7)
Investments........................................ 13.0 89.3 60.4
Compensation and related benefits.................. 30.8 10.0 (50.1)
Other.............................................. 25.2 (15.1) 11.9
----------------- ---------------- -----------------
Deferred Federal Income Tax Expense (Benefit)...... $ 124.1 $ 97.2 $ (24.5)
================= ================ =================
</TABLE>
F-25
<PAGE>
The Internal Revenue Service completed its audit of the Company's
Federal income tax returns for the years 1984 through 1988. There was no
material effect on the Company's consolidated results of operations.
10) REINSURANCE AGREEMENTS
The Insurance Group assumes and cedes reinsurance with other insurance
companies. The Insurance Group evaluates the financial condition of its
reinsurers to minimize its exposure to significant losses from reinsurer
insolvencies. The effect of reinsurance (excluding group life and
health) is summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Direct premiums.................................... $ 474.2 $ 476.7 $ 458.8
Reinsurance assumed................................ 171.3 180.5 169.9
Reinsurance ceded.................................. (38.7) (31.6) (29.6)
----------------- ---------------- -----------------
Premiums........................................... $ 606.8 $ 625.6 $ 599.1
================= ================ =================
Universal Life and Investment-type Product
Policy Fee Income Ceded.......................... $ 38.9 $ 27.5 $ 33.7
================= ================ =================
Policyholders' Benefits Ceded...................... $ 48.2 $ 20.7 $ 72.3
================= ================ =================
Interest Credited to Policyholders' Account
Balances Ceded................................... $ 28.5 $ 25.4 $ 24.1
================= ================ =================
</TABLE>
In February 1993, management established a practice limiting the risk
retention on new policies issued by the Insurance Group to a maximum of
$5.0 million. In addition, effective January 1, 1994, all in force
business above $5.0 million was reinsured. The Insurance Group also
reinsures the entire risk on certain substandard underwriting risks as
well as in certain other cases.
The Insurance Group cedes 100% of its group life and health business to
a third party insurance company. Premiums ceded totaled $260.6 million,
$241.0 million and $895.1 million for the years ended December 31, 1995,
1994 and 1993, respectively. Ceded death and disability benefits totaled
$188.1 million, $235.5 million and $787.8 million for the years ended
December 31, 1995, 1994 and 1993, respectively. Insurance liabilities
ceded totaled $724.2 million and $833.4 million at December 31, 1995 and
1994, respectively.
11) EMPLOYEE BENEFIT PLANS
The Company sponsors qualified and non-qualified defined benefit plans
covering substantially all employees (including certain qualified
part-time employees), managers and certain agents. The pension plans are
non-contributory and benefits are based on a cash balance formula or
years of service and final average earnings, if greater, under certain
grandfathering rules in the plans. The Company's funding policy is to
make the minimum contribution required by the Employee Retirement Income
Security Act of 1974.
Components of net periodic pension (credit) cost for the qualified and
non-qualified plans are as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 30.0 $ 30.3 $ 29.8
Interest cost on projected benefit obligations..... 122.0 111.0 108.0
Actual return on assets............................ (309.2) 24.4 (178.6)
Net amortization and deferrals..................... 155.6 (142.5) 55.3
----------------- ---------------- -----------------
Net Periodic Pension (Credit) Cost................. $ (1.6) $ 23.2 $ 14.5
================= ================ =================
</TABLE>
F-26
<PAGE>
The funded status of the qualified and non-qualified pension plans is as
follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Actuarial present value of obligations:
Vested............................................................... $ 1,642.4 $ 1,295.5
Non-vested........................................................... 10.9 8.7
--------------- -----------------
Accumulated Benefit Obligation......................................... $ 1,653.3 $ 1,304.2
================ =================
Plan assets at fair value.............................................. $ 1,503.8 $ 1,193.5
Projected benefit obligation........................................... 1,743.0 1,403.4
---------------- -----------------
Projected benefit obligation in excess of plan assets.................. (239.2) (209.9)
Unrecognized prior service cost........................................ (25.5) (33.2)
Unrecognized net loss from past experience different from that
assumed.............................................................. 368.2 298.9
Unrecognized net asset at transition................................... (7.3) (20.8)
Additional minimum liability........................................... (51.9) (37.8)
---------------- -----------------
Prepaid (Accrued) Pension Cost......................................... $ 44.3 $ (2.8)
================ =================
</TABLE>
The discount rate and rate of increase in future compensation levels
used in determining the actuarial present value of projected benefit
obligations were 7.25% and 4.50%, respectively, at December 31, 1995 and
8.75% and 4.88%, respectively, at December 31, 1994. As of January 1,
1995 and 1994, the expected long-term rate of return on assets for the
retirement plan was 11% and 10%, respectively.
The Company recorded, as a reduction of shareholder's equity, an
additional minimum pension liability of $35.1 million and $2.7 million,
net of Federal income taxes, at December 31, 1995 and 1994,
respectively, representing the excess of the accumulated benefit
obligation over the fair value of plan assets and accrued pension
liability.
The pension plan's assets include corporate and government debt
securities, equity securities, equity real estate and shares of Group
Trusts managed by Alliance.
As of December 31, 1993, the Company changed the method of determining
the market-related value of plan assets from fair value to a calculated
value. This change in estimate had no material effect on the Company's
consolidated statements of earnings.
Prior to 1987, the qualified plan funded participants' benefits through
the purchase of non-participating annuity contracts from Equitable Life.
Benefit payments under these contracts were approximately $36.4 million,
$38.1 million and $39.9 million for the years ended December 31, 1995,
1994 and 1993, respectively.
The Company provides certain medical and life insurance benefits
(collectively, "postretirement benefits") for qualifying employees,
managers and agents retiring from the Company on or after attaining age
55 who have at least 10 years of service. The life insurance benefits
are related to age and salary at retirement. The costs of postretirement
benefits are recognized in accordance with the provisions of SFAS No.
106. The Company continues to fund postretirement benefits costs on a
pay-as-you-go basis and, for the years ended December 31, 1995, 1994 and
1993, the Company made estimated postretirement benefits payments of
$31.1 million, $29.8 million and $29.7 million, respectively.
F-27
<PAGE>
The following table sets forth the postretirement benefits plan's
status, reconciled to amounts recognized in the Company's consolidated
financial statements:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 4.0 $ 3.9 $ 5.3
Interest cost on accumulated postretirement
benefits obligation.............................. 34.7 28.6 29.2
Unrecognized prior service cost.................... (2.3) (3.9) (6.9)
Net amortization and deferrals..................... - - 1.5
----------------- ---------------- -----------------
Net Periodic Postretirement Benefits Costs......... $ 36.4 $ 28.6 $ 29.1
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Accumulated postretirement benefits obligation:
Retirees............................................................. $ 391.8 $ 300.4
Fully eligible active plan participants.............................. 50.4 33.0
Other active plan participants....................................... 64.2 44.0
---------------- -----------------
506.4 377.4
Unrecognized benefit of plan amendments................................ - 3.2
Unrecognized prior service cost........................................ 56.3 61.9
Unrecognized net loss from past experience different from that
assumed and from changes in assumptions.............................. (181.3) (64.7)
---------------- -----------------
Accrued Postretirement Benefits Cost................................... $ 381.4 $ 377.8
================ =================
</TABLE>
In 1993, the Company amended the cost sharing provisions of
postretirement medical benefits. At January 1, 1994, medical benefits
available to retirees under age 65 are the same as those offered to
active employees and medical benefits will be limited to 200% of 1993
costs for all participants.
The assumed health care cost trend rate used in measuring the
accumulated postretirement benefits obligation was 10% in 1995,
gradually declining to 3.5% in the year 2008 and in 1994 was 10%,
gradually declining to 5% in the year 2004. The discount rate used in
determining the accumulated postretirement benefits obligation was 7.25%
and 8.75% at December 31, 1995 and 1994, respectively.
If the health care cost trend rate assumptions were increased by 1%, the
accumulated postretirement benefits obligation as of December 31, 1995
would be increased 6.5%. The effect of this change on the sum of the
service cost and interest cost would be an increase of 6.7%.
12) DERIVATIVES AND FAIR VALUE OF FINANCIAL INSTRUMENTS
Derivatives
-----------
The Insurance Group primarily uses derivatives for asset/liability risk
management and for hedging individual securities. Derivatives mainly are
utilized to reduce the Insurance Group's exposure to interest rate
fluctuations. Accounting for interest rate swap transactions is on an
accrual basis. Gains and losses related to interest rate swap
transactions are amortized as yield adjustments over the remaining life
of the underlying hedged security. Income and expense resulting from
interest rate swap activities are reflected in net investment income
except for hedging transactions related to insurance liabilities. The
notional amount of matched interest rate swaps outstanding at December
31, 1995 was $1,120.8 million. The average unexpired terms at December
31, 1995 range from 2.5 to 3.0 years. At December 31, 1995, the cost of
terminating outstanding matched swaps in a loss position was $15.9
million and the unrealized gain on
F-28
<PAGE>
outstanding matched swaps in a gain position was $19.0 million. The
Company has no intention of terminating these contracts prior to
maturity. During 1995, 1994 and 1993, net gains (losses) of $1.4
million, $(.2) million and $-0- million, respectively, were recorded in
connection with interest rate swap activity. Equitable Life has
implemented an interest rate cap program designed to hedge crediting
rates on interest-sensitive individual annuities contracts. The
outstanding notional amounts at December 31, 1995 of contracts purchased
and sold were $2,625.0 million and $300.0 million, respectively. The net
premium paid by Equitable Life on these contracts was $12.5 million and
is being amortized ratably over the contract periods ranging from 3 to 5
years. Income and expense resulting from this program are reflected as
an adjustment to interest credited to policyholders' account balances.
Substantially all of DLJ's business related derivatives is by its nature
trading activities which are primarily for the purpose of customer
accommodations. DLJ's derivative activities consist of option writing
and trading in forward and futures contracts. Derivative financial
instruments have both on-and-off balance sheet implications depending on
the nature of the contracts. DLJ's involvement in swap contracts is not
significant.
Fair Value of Financial Instruments
-----------------------------------
The Company defines fair value as the quoted market prices for those
instruments that are actively traded in financial markets. In cases
where quoted market prices are not available, fair values are estimated
using present value or other valuation techniques. The fair value
estimates are made at a specific point in time, based on available
market information and judgments about the financial instrument,
including estimates of timing, amount of expected future cash flows and
the credit standing of counterparties. Such estimates do not reflect any
premium or discount that could result from offering for sale at one time
the Company's entire holdings of a particular financial instrument, nor
do they consider the tax impact of the realization of unrealized gains
or losses. In many cases, the fair value estimates cannot be
substantiated by comparison to independent markets, nor can the
disclosed value be realized in immediate settlement of the instrument.
Certain financial instruments are excluded, particularly insurance
liabilities other than financial guarantees and investment contracts.
Fair market value of off-balance-sheet financial instruments of the
Insurance Group was not material at December 31, 1995 and 1994.
Fair value for mortgage loans on real estate are estimated by
discounting future contractual cash flows using interest rates at which
loans with similar characteristics and credit quality would be made.
Fair values for foreclosed mortgage loans and problem mortgage loans are
limited to the estimated fair value of the underlying collateral if
lower.
The estimated fair values for the Company's liabilities under GIC and
association plan contracts are estimated using contractual cash flows
discounted based on the T. Rowe Price GIC Index Rate for the appropriate
duration. For durations in excess of the published index rate, the
appropriate Treasury rate is used plus a spread equal to the longest
duration GIC rate spread published.
The estimated fair values for those group annuity contracts which are
classified as investment contracts are measured at the estimated fair
value of the underlying assets. Deposit administration contracts
(included with group annuity contracts) classified as insurance
contracts are measured at estimated fair value of the underlying assets.
The estimated fair values for single premium deferred annuities ("SPDA")
are estimated using projected cash flows discounted at current offering
rates. The estimated fair values for supplementary contracts not
involving life contingencies ("SCNILC") and annuities certain are
derived using discounted cash flows based upon the estimated current
offering rate.
Fair value for long-term debt is determined using published market
values, where available, or contractual cash flows discounted at market
interest rates. The estimated fair values for non-recourse mortgage debt
are determined by discounting contractual cash flows at a rate which
takes into account the level of current market interest rates and
collateral risk. The estimated fair values for recourse mortgage debt
are determined by discounting contractual cash flows at a rate based
upon current interest rates of other companies with credit ratings
similar to the Company. The Company's fair value of short-term
borrowings approximates their carrying value.
F-29
<PAGE>
The following table discloses carrying value and estimated fair value
for financial instruments not otherwise disclosed in Notes 3, 6 and 7:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------------------------------------
1995 1994
--------------------------------- ---------------------------------
CARRYING ESTIMATED Carrying Estimated
VALUE FAIR VALUE Value Fair Value
--------------- ---------------- --------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Consolidated Financial Instruments:
-----------------------------------
Mortgage loans on real estate.......... $ 3,638.3 $ 3,973.6 $ 4,018.0 $ 3,919.4
Other joint ventures................... 492.7 492.7 544.4 544.4
Policy loans........................... 1,976.4 2,057.5 1,731.2 1,676.6
Policyholders' account balances:
Association plans.................... 101.0 100.0 141.0 141.0
Group annuity contracts.............. 2,335.0 2,395.0 2,450.0 2,469.0
SPDA................................. 1,265.8 1,272.0 1,744.3 1,732.7
Annuities certain and SCNILC......... 649.1 680.7 599.1 624.7
Long-term debt......................... 1,899.3 1,962.9 1,317.4 1,249.2
Closed Block Financial Instruments:
-----------------------------------
Mortgage loans on real estate.......... 1,368.8 1,461.4 1,543.7 1,477.8
Other equity investments............... 151.6 151.6 179.5 179.5
Policy loans........................... 1,797.2 1,891.4 1,827.9 1,721.9
SCNILC liability....................... 34.8 34.5 39.5 37.0
GIC Segment Financial Instruments:
----------------------------------
Mortgage loans on real estate.......... 1,485.8 1,666.1 1,730.5 1,743.7
Fixed maturities....................... 107.4 107.4 219.3 219.3
Other equity investments............... 455.9 455.9 591.8 591.8
Guaranteed interest contracts.......... 329.0 352.0 835.0 855.0
Long-term debt......................... 135.1 136.0 134.8 127.9
</TABLE>
13) COMMITMENTS AND CONTINGENT LIABILITIES
The Company has provided, from time to time, certain guarantees or
commitments to affiliates, investors and others. These arrangements
include commitments by the Company, under certain conditions: to make
liquidity advances to cover delinquent principal and interest and
property protection expenses with respect to loan servicing agreements
for securitized mortgage loans which at December 31, 1995 totaled $2.8
billion (as of December 31, 1995, $4.0 million have been advanced under
these commitments); to make capital contributions of up to $246.7
million to affiliated real estate joint ventures; to provide equity
financing to certain limited partnerships of $129.4 million at December
31, 1995, under existing loan or loan commitment agreements; and to
provide short-term financing loans which at December 31, 1995 totaled
$45.8 million. Management believes the Company will not incur any
material losses as a result of these commitments.
Equitable Life is the obligor under certain structured settlement
agreements which it had entered into with unaffiliated insurance
companies and beneficiaries. To satisfy its obligations under these
agreements, Equitable Life owns single premium annuities issued by
previously wholly owned life insurance subsidiaries. Equitable Life has
directed payment under these annuities to be made directly to the
beneficiaries under the structured settlement agreements. A contingent
liability exists with respect to these agreements should the previously
wholly owned subsidiaries be unable to meet their obligations.
Management believes the satisfaction of those obligations by Equitable
Life is remote.
At December 31, 1995, the Insurance Group had $29.0 million of letters
of credit outstanding.
F-30
<PAGE>
14) LITIGATION
A number of lawsuits have been filed against life and health insurers in
the jurisdictions in which Equitable Life and its subsidiaries do
business involving insurers' sales practices, alleged agent misconduct,
failure to properly supervise agents, and other matters. Some of the
lawsuits have resulted in the award of substantial judgments against
other insurers, including material amounts of punitive damages, or in
substantial settlements. In some states juries have substantial
discretion in awarding punitive damages. Equitable Life and its
insurance subsidiaries, like other life and health insurers, from time
to time are involved in such litigation. To date, no such lawsuit has
resulted in an award or settlement of any material amount against the
Company. Among litigations pending against Equitable Life and its
insurance subsidiaries of the type referred to in this paragraph are the
litigations described in the following two paragraphs.
An action entitled Golomb et al. v. The Equitable Life Assurance Society
of the United States was filed on January 20, 1995 in New York County
Supreme Court. The action purports to be brought on behalf of a class of
persons insured after 1983 under Lifetime Guaranteed Renewable Major
Medical Insurance Policies issued by Equitable Life (the "policies").
The complaint alleges that premium increases for these policies after
1983, all of which were filed with and approved by the New York State
Insurance Department and certain other state insurance departments,
breached the terms of the insurance policies, and that statements in the
policies and elsewhere concerning premium increases constituted
fraudulent concealment, misrepresentations in violation of New York
Insurance Law Section 4226 and deceptive practices under New York
General Business Law Section 349. The complaint seeks a declaratory
judgment, injunctive relief restricting the methods by which Equitable
Life increases premiums on the policies in the future, a refund of
premiums, and punitive damages. Plaintiffs also have indicated that they
will seek damages in an unspecified amount. Equitable Life has moved to
dismiss the complaint in its entirety on the grounds that it fails to
state a claim and that uncontroverted documentary evidence establishes a
complete defense to the claims. That motion is awaiting decision by the
court. In January 1996, separate actions were filed in Pennsylvania and
Texas state courts (entitled, respectively, Malvin et al. v. The
Equitable Life Assurance Society of the United States and Bowler et al.
v. The Equitable Life Assurance Society of the United States), making
claims similar to those in the New York action described above. These
new actions are asserted on behalf of proposed classes of Pennsylvania
issued or renewed policyholders and Texas issued or renewed
policyholders, insured under the policies. The Pennsylvania and Texas
actions seek compensatory and punitive damages and injunctive relief
restricting the methods by which Equitable Life increases premiums in
the future based on the common law and statutes of those states.
Although the outcome of any litigation cannot be predicted with
certainty, particularly in the early stages of an action, Equitable
Life's management believes that the ultimate resolution of those
litigations should not have a material adverse effect on the financial
position of the Company. Due to the early stage of such litigation,
Equitable Life's management cannot make an estimate of loss, if any, or
predict whether or not such litigation will have a material adverse
effect on the Company's results of operations in any particular period.
An action was instituted on April 6, 1995 against Equitable Life and its
wholly owned subsidiary, The Equitable of Colorado, Inc. ("EOC"), in New
York State Court, entitled Sidney C. Cole et al. v. The Equitable Life
Assurance Society of the United States and The Equitable of Colorado,
Inc., No. 95/108611 (N.Y. County). The action is brought by the holders
of a joint survivorship whole life policy issued by EOC. The action
purports to be on behalf of a class consisting of all persons who from
January 1, 1984 purchased life insurance policies sold by Equitable Life
and EOC based upon their allegedly uniform sales presentations and
policy illustrations. The complaint puts in issue various alleged sales
practices that plaintiffs assert, among other things, misrepresented the
stated number of years that the annual premium would need to be paid.
Plaintiffs seek damages in an unspecified amount, imposition of a
constructive trust, and seek to enjoin Equitable Life and EOC from
engaging in the challenged sales practices. Equitable Life and EOC
intend to defend vigorously and believe that they have meritorious
defenses which, if successful, would dispose of the action completely.
Equitable Life and EOC further do not believe that this case is an
appropriate class action. Although the outcome of any litigation cannot
be predicted with certainty, particularly in the early stages of an
action, Equitable Life's management believes that the ultimate
F-31
<PAGE>
resolution of this litigation should not have a material adverse effect
on the financial position of the Company. Due to the early stage of such
litigation, the Company's management cannot make an estimate of loss, if
any, or predict whether or not such litigation will have a material
adverse effect on the Company's results of operations in any particular
period.
Equitable Casualty Insurance Company ("Casualty"), a captive property
and casualty insurance company organized under the laws of Vermont,
which is an indirect wholly owned subsidiary of Equitable Life, is a
party to an arbitration proceeding that commenced in August 1995 with
the selection of three arbitrators. The arbitration will resolve a
dispute among Casualty, Houston General Insurance Company ("Houston
General"), and GEICO General Insurance Company ("GEICO General")
regarding the interpretation of a reinsurance agreement that was entered
into as part of a 1980 transaction whereby Equitable General Insurance
Company ("Equitable General"), formerly an indirect subsidiary of
Equitable Life and the predecessor of GEICO General, sold its commercial
lines business along with the stock of Houston General to subsidiaries
of Tokio Marine & Fire Insurance Company, Ltd. ("Tokio Marine").
Casualty and GEICO General maintain that, under the reinsurance
agreement, Houston General assumed liability for all losses insured
under commercial lines policies written by Equitable General and its
predecessors in order to effect the transfer of that business to Tokio
Marine's subsidiaries. Houston General contends that it did not assume
reinsurance liability for losses insured under certain of those
commercial lines policies. The arbitration panel determined to begin
hearing evidence in the arbitration in June 1996. The result of the
arbitration is expected to resolve two litigations that were commenced
by Houston General and that have been stayed by the presiding courts
pending the completion of the arbitration (in one case, Houston General
named as a defendant only GEICO General but Casualty intervened as a
defendant with GEICO General, and in the other case, Houston General
named GEICO General and Equitable Life). The arbitration is expected to
be completed during the second half of 1996. While the ultimate outcome
of the arbitration cannot be predicted with certainty, the Company's
management believes that the arbitrators will recognize that Houston
General's position is without merit and contrary to the way in which the
reinsurance industry operates and therefore the ultimate resolution of
this matter should not have a material adverse effect on the Company's
financial position or results of operations.
On July 25, 1995, a Consolidated and Supplemental Class Action Complaint
("Complaint") was filed against the Alliance North American Government
Income Trust, Inc. (the "Fund"), Alliance and certain other defendants
affiliated with Alliance, including the Holding Company, alleging
violations of Federal securities laws, fraud and breach of fiduciary
duty in connection with the Fund's investments in Mexican and Argentine
securities. A similar complaint was filed on November 7, 1995 and was
subsequently consolidated with the Complaint. The Complaint, which seeks
certification of a plaintiff class of persons who purchased or owned
Class A, B or C shares of the Fund from March 27, 1992 through December
23, 1994, seeks an unspecified amount of damages, costs, attorneys' fees
and punitive damages. The principal allegations of the Complaint are
that the Fund purchased debt securities issued by the Mexican and
Argentine governments in amounts that were not permitted by the Funds'
investment objective, and that there was no shareholder vote to change
the investment objective to permit purchases in such amounts. The
Complaint further alleges that the decline in the value of the Mexican
and Argentine securities held by the Fund caused the Fund's net asset
value to decline to the detriment of the Fund's shareholders. On
September 26, 1995, the defendants jointly filed a motion to dismiss the
Complaint which has not yet been decided by the Court. Alliance believes
that the allegations in the Complaint are without merit and intends to
vigorously defend against these claims. While the ultimate results of
this action cannot be determined, management of Alliance does not expect
that this action will have a material adverse effect on Alliance's
business.
On January 26, 1996, a purported purchaser of certain notes and warrants
to purchase shares of common stock of Rickel Home Centers, Inc.
("Rickel") filed a class action complaint against Donaldson, Lufkin &
Jenrette Securities Corporation ("DLJSC"), a wholly owned subsidiary of
DLJ, and certain other defendants for unspecified compensatory and
punitive damages in the United States District Court for the Southern
District of New York. The suit was brought on behalf of the purchasers
of 126,457 units consisting of $126,457,000 aggregate principal amount
of 13 1/2% senior notes due 2001 and 126,457 warrants to purchase shares
of common stock of Rickel (the "Units") issued by Rickel in October
1994. The complaint alleges violations of Federal securities laws and
common law fraud against DLJSC, as the underwriter of
F-32
<PAGE>
the Units and as an owner of 7.3% of the common stock of Rickel, Eos
Partners, L.P., and General Electric Capital Corporation, each as owners
of 44.2% of the common stock of Rickel, and members of the Board of
Directors of Rickel, including a DLJSC Managing Director. The complaint
seeks to hold DLJSC liable for alleged misstatements and omissions
contained in the prospectus and registration statement filed in
connection with the offering of the Units, alleging that the defendants
knew of financial losses and a decline in value of Rickel in the months
prior to the offering and did not disclose such information. The
complaint also alleges that Rickel failed to pay its semi-annual
interest payment due on the Units on December 15, 1995 and that Rickel
filed a voluntary petition for reorganization pursuant to Chapter 11 of
the United States Bankruptcy Code on January 10, 1996. DLJSC intends to
defend itself vigorously against all of the allegations contained in the
complaint. Although there can be no assurance, DLJ does not believe the
outcome of this litigation will have a material adverse effect on its
financial condition. Due to the early stage of this litigation, based on
the information currently available to it, DLJ's management cannot make
an estimate of loss or predict whether or not such litigation will have
a material adverse effect on DLJ's results of operations in any
particular period.
On June 12, 1995, a purported purchaser of certain securities issued by
Spectravision, Inc. ("Spectravision") filed a class action complaint
against DLJSC and certain other defendants for unspecified damages in
the U.S. District Court for the Northern District of Texas. The suit was
brought on behalf of the purchasers of $260,795,000 of securities issued
by Spectravision in November 1992, and alleges violations of the Federal
securities laws and the Texas Securities Act, common law fraud and
negligent misrepresentation. The securities were issued by Spectravision
pursuant to a prepackaged bankruptcy reorganization plan. DLJSC served
as financial advisor to Spectravision in its reorganization and as
Dealer Manager for Spectravision's 1992 issuance of the securities.
DLJSC is also being sued as a seller of certain notes of Spectravision
acquired and resold by DLJSC. The complaint seeks to hold DLJSC liable
for various alleged misstatements and omissions contained in
prospectuses and other materials issued between July 1992 and June 1994.
DLJSC intends to defend itself vigorously against all of the allegations
contained in the complaint. On June 8, 1995, Spectravision filed a
Chapter 11 petition in the United States Bankruptcy Court for the
District of Delaware. On January 5, 1996, the district court in the
litigation involving DLJSC ordered a partial stay of discovery until
Spectravision has emerged from bankruptcy or six months from the date of
the stipulated stay (whichever comes first). Accordingly, discovery of
DLJSC has not yet occurred. Although there can be no assurance, DLJ does
not believe that the ultimate outcome of this litigation will have a
material adverse effect on its financial condition. Due to the early
stage of such litigation, based upon information currently available to
it, DLJ's management cannot make an estimate of loss or predict whether
or not such litigation will have a material adverse effect on DLJ's
results of operations in any particular period. Plaintiff's counsel in
the class action against DLJSC described above has also filed another
securities class action based on similar factual allegations. Such suit
names as defendants Spectravision and its directors, and was brought on
behalf of a class of purchasers of $209.0 million of stock and $77.0
million of notes issued by Spectravision in October 1993. DLJSC served
as the managing underwriter for both of these issuances. DLJSC has not
been named as a defendant in this suit, although it has been reported to
DLJSC that plaintiff's counsel is contemplating seeking to amend the
complaint to add DLJSC as a defendant in that action.
In October 1995, DLJSC was named as a defendant in a purported class
action filed in a Texas State Court on behalf of the holders of $550.0
million principal amount of subordinated redeemable discount debentures
of National Gypsum Corporation ("NGC") canceled in connection with a
Chapter 11 plan of reorganization for NGC consummated in July 1993. The
named plaintiff in the State Court action also filed an adversary
proceeding in the Bankruptcy Court for the Northern District of Texas
seeking a declaratory judgment that the confirmed NGC plan of
reorganization does not bar the class action claims. Subsequent to the
consummation of NGC's plan of reorganization, NGC's shares traded for
values substantially in excess of, and in 1995 NGC was acquired for a
value substantially in excess of, the values upon which NGC's plan of
reorganization was based. The two actions arise out of DLJSC's
activities as financial advisor to NGC in the course of NGC's Chapter 11
reorganization proceedings. The class action complaint alleges that the
plan of reorganization submitted by NGC was based upon projections by
NGC and DLJSC which intentionally understated forecasts, and provided
misleading and incorrect information in order to hide NGC's true value
and that defendants breached their fiduciary duties by, among other
things, providing false, misleading or incomplete information to
deliberately understate the value of NGC. The class action complaint
seeks compensatory and punitive damages purportedly sustained by the
class. The Texas State
F-33
<PAGE>
Court action has subsequently been removed to the Bankruptcy Court,
which removal is being opposed by the plaintiff. DLJSC intends to defend
itself vigorously against all of the allegations contained in the
complaint. Although there can be no assurance, DLJ does not believe that
the ultimate outcome of this litigation will have a material adverse
effect on its financial condition. Due to the early stage of such
litigation, based upon the information currently available to it, DLJ's
management cannot make an estimate of loss or predict whether or not
such litigation will have a material adverse effect on DLJ's results of
operations in any particular period.
In November and December 1995, DLJSC, along with various other parties,
was named as a defendant in a number of purported class actions filed in
the U.S. District Court for the Eastern District of Louisiana. The
complaints allege violations of the Federal securities laws arising out
of a public offering in 1994 of $435.0 million of first mortgage notes
of Harrah's Jazz Company and Harrah's Jazz Finance Corp. The complaints
seek to hold DLJSC liable for various alleged misstatements and
omissions contained in the prospectus dated November 9, 1994. DLJSC
intends to defend itself vigorously against all of the allegations
contained in the complaints. Although there can be no assurance, DLJ
does not believe that the ultimate outcome of this litigation will have
a material adverse effect on its financial condition. Due to the early
stage of this litigation, based upon the information currently available
to it, DLJ's management cannot make an estimate of loss or predict
whether or not such litigation will have a material adverse effect on
DLJ's results of operations in any particular period.
In addition to the matters described above, Equitable Life and its
subsidiaries and DLJ and its subsidiaries are involved in various legal
actions and proceedings in connection with their businesses. Some of the
actions and proceedings have been brought on behalf of various alleged
classes of claimants and certain of these claimants seek damages of
unspecified amounts. While the ultimate outcome of such matters cannot
be predicted with certainty, in the opinion of management no such matter
is likely to have a material adverse effect on the Company's
consolidated financial position or results of operations.
15) LEASES
The Company has entered into operating leases for office space and
certain other assets, principally data processing equipment and office
furniture and equipment. Future minimum payments under noncancelable
leases for 1996 and the succeeding four years are $114.8 million, $101.8
million, $90.0 million, $73.6 million, $57.7 million and $487.0 million
thereafter. Minimum future sublease rental income on these noncancelable
leases for 1996 and the succeeding four years are $11.0 million, $8.7
million, $6.9 million, $4.6 million, $2.9 million and $1.1 million
thereafter.
At December 31, 1995, the minimum future rental income on noncancelable
operating leases for wholly owned investments in real estate for 1996
and the succeeding four years are $292.9 million, $271.2 million, $248.1
million, $226.4 million, $195.5 million and $1,018.8 million thereafter.
F-34
<PAGE>
16) OTHER OPERATING COSTS AND EXPENSES
Other operating costs and expenses consisted of the following:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Compensation costs................................. $ 595.9 $ 690.0 $ 1,452.3
Commissions........................................ 314.3 313.0 551.1
Short-term debt interest expense................... 11.4 19.0 317.1
Long-term debt interest expense.................... 108.1 98.3 86.0
Amortization of policy acquisition costs........... 320.4 318.1 275.9
Capitalization of policy acquisition costs......... (391.0) (410.9) (397.8)
Rent expense, net of sub-lease income.............. 124.8 128.9 159.5
Other.............................................. 772.6 786.7 1,140.1
----------------- ---------------- -----------------
Total.............................................. $ 1,856.5 $ 1,943.1 $ 3,584.2
================= ================ =================
</TABLE>
During the years ended December 31, 1995, 1994 and 1993, the Company
restructured certain operations in connection with cost reduction
programs and recorded pre-tax provisions of $32.0 million, $20.4 million
and $96.4 million, respectively. The amounts paid during 1995,
associated with the 1995 and 1994 cost reduction programs, totaled $24.0
million. At December 31, 1995, the liabilities associated with the 1995
and 1994 cost reduction programs amounted to $37.8 million. The 1995
cost reduction program included relocation expenses, including the
accelerated amortization of building improvements associated with the
relocation of the home office. The 1994 cost reduction program included
costs associated with the termination of operating leases and employee
severance benefits in connection with the consolidation of 16 insurance
agencies. The 1993 cost reduction program primarily reflected severance
benefits of terminated employees in connection with the combination of a
wholly owned subsidiary of the Company with Alliance.
17) INSURANCE GROUP STATUTORY FINANCIAL INFORMATION
Equitable Life is restricted as to the amounts it may pay as dividends
to the Holding Company. Under the New York Insurance Law, the New York
Superintendent has broad discretion to determine whether the financia1
condition of a stock life insurance company would support the payment of
dividends to its shareholders. For the years ended December 31, 1995,
1994 and 1993, statutory (loss) earnings totaled $(352.4) million, $67.5
million and $324.0 million, respectively. No amounts are expected to be
available for dividends from Equitable Life to the Holding Company in
1996.
At December 31, 1995, the Insurance Group, in accordance with various
government and state regulations, had $18.9 million of securities
deposited with such government or state agencies.
F-35
<PAGE>
Accounting practices used to prepare statutory financial statements for
regulatory filings of stock life insurance companies differ in certain
instances from GAAP. The following reconciles the Company's statutory
change in surplus and capital stock and statutory surplus and capital
stock determined in accordance with accounting practices prescribed by
the New York Insurance Department with net earnings and equity on a GAAP
basis.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Net change in statutory surplus and capital stock.. $ 78.1 $ 292.4 $ 190.8
Change in asset valuation reserves................. 365.7 (285.2) 639.1
----------------- ---------------- -----------------
Net change in statutory surplus, capital stock
and asset valuation reserves..................... 443.8 7.2 829.9
Adjustments:
Future policy benefits and policyholders'
account balances............................... (67.9) (11.0) (171.0)
Deferred policy acquisition costs................ 70.6 92.8 121.8
Deferred Federal income taxes.................... (150.0) (59.7) (57.5)
Valuation of investments......................... 189.1 45.2 202.3
Valuation of investment subsidiary............... (188.6) 396.6 (464.9)
Limited risk reinsurance......................... 416.9 74.9 85.2
Issuance of surplus notes........................ (538.9) - -
Sale of subsidiary and joint venture............. - - (366.5)
Contribution from the Holding Company............ - (300.0) -
Postretirement benefits.......................... (26.7) 17.1 23.8
Other, net....................................... 115.1 (44.0) 60.3
GAAP adjustments of Closed Block................. (3.1) 4.5 (16.0)
GAAP adjustments of discontinued GIC
Segment........................................ 37.3 42.8 (35.0)
----------------- ---------------- -----------------
Net Earnings....................................... $ 297.6 $ 266.4 $ 212.4
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Statutory surplus and capital stock................ $ 2,202.9 $ 2,124.8 $ 1,832.4
Asset valuation reserves........................... 1,345.9 980.2 1,265.4
----------------- ---------------- -----------------
Statutory surplus, capital stock and asset
valuation reserves............................... 3,548.8 3,105.0 3,097.8
Adjustments:
Future policy benefits and policyholders'
account balances............................... (1,017.4) (949.5) (938.5)
Deferred policy acquisition costs................ 3,083.3 3,221.1 2,858.8
Deferred Federal income taxes.................... (450.8) (26.8) (137.8)
Valuation of investments......................... 417.7 (794.1) (29.8)
Valuation of investment subsidiary............... (665.1) (476.5) (873.1)
Limited risk reinsurance......................... (429.0) (845.9) (920.8)
Issuance of surplus notes........................ (538.9) - -
Postretirement benefits.......................... (343.3) (316.6) (333.7)
Other, net....................................... 4.4 (79.2) (81.9)
GAAP adjustments of Closed Block................. 575.7 578.8 574.2
GAAP adjustments of discontinued GIC
Segment........................................ (184.6) (221.9) (264.6)
----------------- ---------------- -----------------
Total Shareholder's Equity......................... $ 4,000.8 $ 3,194.4 $ 2,950.6
================= ================ =================
</TABLE>
F-36
<PAGE>
18) BUSINESS SEGMENT INFORMATION
The Company has three major business segments: Individual Insurance and
Annuities; Investment Services and Group Pension.
Consolidation/elimination principally includes debt not specific to any
business segment. Attributed Insurance Capital represents net assets and
related revenues and earnings of the Insurance Group not assigned to the
insurance segments. Interest expense related to debt not specific to any
business segment is presented within Corporate interest expense.
Information for all periods is presented on a comparable basis.
The Individual Insurance and Annuities segment offers a variety of
traditional, variable and interest-sensitive life insurance products,
disability income, annuity products and mutual fund and other investment
products to individuals and small groups. This segment includes Separate
Accounts for certain individual insurance and annuity products.
The Investment Services segment provides investment fund management,
primarily to institutional clients. This segment includes Separate
Accounts which provide various investment options for group clients
through pooled or single group accounts.
Intersegment investment advisory and other fees of approximately $124.1
million, $135.3 million and $128.6 million for 1995, 1994 and 1993,
respectively, are included in total revenues of the Investment Services
segment. These fees, excluding amounts related to the discontinued GIC
Segment of $14.7 million, $27.4 million and $17.0 million for 1995, 1994
and 1993, respectively, are eliminated in consolidation.
The Group Pension segment administers traditional participating group
annuity contracts with conversion features, generally for corporate
qualified pension plans, and association plans which provide full
service retirement programs for individuals affiliated with professional
and trade associations.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Individual insurance and annuities................. $ 3,254.6 $ 3,110.7 $ 2,981.5
Group pension...................................... 292.0 359.1 426.6
Attributed insurance capital....................... 61.2 79.4 61.6
----------------- ---------------- -----------------
Insurance operations............................. 3,607.8 3,549.2 3,469.7
Investment services................................ 949.1 935.2 2,792.6
Consolidation/elimination.......................... (34.9) (24.7) (40.5)
----------------- ---------------- -----------------
Total.............................................. $ 4,522.0 $ 4,459.7 $ 6,221.8
================= ================ =================
Earnings (loss) before Federal income taxes
and cumulative effect of accounting change
Individual insurance and annuities................. $ 274.4 $ 245.5 $ 76.2
Group pension...................................... (13.3) 15.8 2.0
Attributed insurance capital....................... 18.7 69.8 49.0
----------------- ---------------- -----------------
Insurance operations............................. 279.8 331.1 127.2
Investment services................................ 161.2 177.5 302.1
Consolidation/elimination.......................... (3.1) .3 .5
----------------- ---------------- -----------------
Subtotal..................................... 437.9 508.9 429.8
Corporate interest expense......................... (27.9) (114.2) (126.1)
----------------- ---------------- -----------------
Total.............................................. $ 410.0 $ 394.7 $ 303.7
================= ================ =================
</TABLE>
F-37
<PAGE>
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets
Individual insurance and annuities..................................... $ 50,328.8 $ 44,063.4
Group pension.......................................................... 4,033.3 4,222.8
Attributed insurance capital........................................... 2,391.6 2,609.8
---------------- -----------------
Insurance operations................................................. 56,753.7 50,896.0
Investment services.................................................... 12,842.9 12,127.9
Consolidation/elimination.............................................. (354.4) (1,614.4)
---------------- -----------------
Total.................................................................. $ 69,242.2 $ 61,409.5
================ =================
</TABLE>
19) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The quarterly results of operations for the years ended December 31,
1995, 1994 and 1993, are summarized below:
<TABLE>
<CAPTION>
THREE MONTHS ENDED,
------------------------------------------------------------------------------
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
----------------- ----------------- ------------------ ------------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
1995
----
Total Revenues................ $ 1,074.7 $ 1,158.4 $ 1,127.1 $ 1,161.8
================= ================= ================== ==================
Net Earnings.................. $ 59.0 $ 94.3 $ 91.2 $ 53.1
================= ================= ================== ==================
1994
----
Total Revenues................ $ 1,107.4 $ 1,075.0 $ 1,153.8 $ 1,123.5
================= ================= ================== ==================
Earnings before Cumulative
Effect of Accounting
Change...................... $ 64.0 $ 68.4 $ 89.1 $ 72.0
================= ================= ================== ==================
Net Earnings.................. $ 36.9 $ 68.4 $ 89.1 $ 72.0
================= ================= ================== ==================
1993
----
Total Revenues................ $ 1,502.2 $ 1,539.7 $ 1,679.4 $ 1,500.5
================= ================= ================== ==================
Net Earnings.................. $ 32.3 $ 47.1 $ 68.8 $ 64.2
================= ================= ================== ==================
</TABLE>
20) INVESTMENT IN DLJ
On December 15, 1993, the Company sold a 61% interest in DLJ to the
Holding Company for $800.0 million in cash and securities. The excess of
the proceeds over the book value in DLJ at the date of sale of $340.2
million has been reflected as a capital contribution. In 1995, DLJ
completed the initial public offering ("IPO") of 10.58 million shares of
its common stock, which included 7.28 million of the Holding Company's
shares in DLJ, priced at $27 per share. Concurrent with the IPO, the
Company contributed equity securities to DLJ having a market value of
$21.2 million. Upon completion of the IPO, the Company's ownership
percentage was reduced to 36.1%. The Company's ownership interest will
be further reduced upon the issuance of common stock after the vesting
of forfeitable restricted stock units acquired by and/or the exercise of
options granted to certain DLJ employees. At December 31, 1995, DLJ had
options
F-38
<PAGE>
outstanding to purchase approximately 9.2 million shares of DLJ common
stock at $27.00 per share. Options are exercisable over a period of up
to ten years. DLJ restricted stock units represents forfeitable rights
to receive approximately 5.2 million shares of DLJ common stock through
February 2000.
The results of operations and cash flows of DLJ through the date of sale
are included in the consolidated statements of earnings and cash flow
for the year ended December 31, 1993. For the period subsequent to the
date of sale, the results of operations of DLJ are accounted for on the
equity basis and are included in commissions, fees and other income in
the consolidated statements of earnings. The Company's carrying value of
DLJ is included in investment in and loans to affiliates in the
consolidated balance sheets.
Summarized balance sheets information for DLJ, reconciled to the
Company's carrying value of DLJ, are as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets:
Trading account securities, at market value............................ $ 10,911.4 $ 8,970.0
Securities purchased under resale agreements........................... 18,748.2 10,476.4
Broker-dealer related receivables...................................... 13,023.7 11,784.8
Other assets........................................................... 1,893.2 2,030.4
---------------- -----------------
Total Assets........................................................... $ 44,576.5 $ 33,261.6
================ =================
Liabilities:
Securities sold under repurchase agreements............................ $ 26,744.8 $ 18,356.7
Broker-dealer related payables......................................... 12,915.5 10,618.0
Short-term and long-term debt.......................................... 1,717.5 1,956.5
Other liabilities...................................................... 1,775.0 1,285.1
---------------- -----------------
Total liabilities...................................................... 43,152.8 32,216.3
Cumulative exchangeable preferred stock................................ 225.0 225.0
Total shareholders' equity............................................. 1,198.7 820.3
---------------- -----------------
Total Liabilities, Cumulative Exchangeable Preferred Stock and
Shareholders' Equity................................................. $ 44,576.5 $ 33,261.6
================ =================
DLJ's equity as reported............................................... $ 1,198.7 $ 820.3
Unamortized cost in excess of net assets acquired in 1985
and other adjustments................................................ 40.5 50.8
The Holding Company's equity ownership in DLJ.......................... (499.0) (532.1)
Minority interest in DLJ............................................... (324.3) -
---------------- -----------------
The Company's Carrying Value of DLJ.................................... $ 415.9 $ 339.0
================ =================
</TABLE>
F-39
<PAGE>
Summarized statements of earnings information for DLJ reconciled to the
Company's equity in earnings of DLJ is as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Commission, fees and other income...................................... $ 1,325.9 $ 953.5
Net investment income.................................................. 904.1 791.9
Dealer, trading and investment gains, net.............................. 528.6 263.3
---------------- -----------------
Total Revenues......................................................... 2,758.6 2,008.7
Total expenses including income taxes.................................. 2,579.5 1,885.7
---------------- -----------------
Net earnings........................................................... 179.1 123.0
Dividends on preferred stock........................................... 19.9 20.9
---------------- -----------------
Earnings Applicable to Common Shares................................... $ 159.2 $ 102.1
================ =================
DLJ's earnings applicable to common shares as reported................. $ 159.2 $ 102.1
Amortization of cost in excess of net assets acquired in 1985.......... (3.9) (3.1)
The Holding Company's equity in DLJ's earnings......................... (90.4) (60.9)
Minority interest in DLJ............................................... (6.5) -
---------------- -----------------
The Company's Equity in DLJ's Earnings................................. $ 58.4 $ 38.1
================ =================
</TABLE>
21) RELATED PARTY TRANSACTIONS
On August 31, 1993, the Company sold $661.0 million of primarily
privately placed below investment grade fixed maturities to EQ Asset
Trust 1993, a limited purpose business trust, wholly owned by the
Holding Company. The Company recognized a $4.1 million gain net of
related deferred policy acquisition costs, deferred Federal income tax
and amounts attributable to participating group annuity contracts. In
conjunction with this transaction, the Company received $200.0 million
of Class B Notes issued by EQ Asset Trust 1993. These notes have
interest rates ranging from 6.85% to 9.45%. The Class B Notes are
reflected in investments in and loans to affiliates on the consolidated
balance sheets.
F-40
<PAGE>
================================================================================
[RIA LOGO]
SEPARATE ACCOUNT UNITS OF INTEREST
UNDER GROUP ANNUITY CONTRACTS
<TABLE>
<S> <C> <C>
o Money Market Fund o Growth & Income Fund Blended Funds:
o Intermediate Government o Equity Index Fund o Conservative Investors Fund
Securities Fund o Common Stock Fund o Balanced Fund
o Bond Fund o Global Fund o Growth Investors Fund
o Quality Bond Fund o International Fund
o High Yield Fund o Aggressive Stock Fund
</TABLE>
OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
---------------------------------------------------------
RIA SERVICE OFFICE:
Equitable Life
RIA Service Office
200 Plaza Drive, 1st Floor
Secaucus, NJ 07094-3689
Tel.: (800) 967-4560
(201)392-5500
(9 A.M. to 5 P.M. Eastern time)
Fax: (201) 392-2285, 2286 or 2287
(To obtain pre-recorded Fund unit values, use our toll-free number listed above)
ADDRESS FOR CONTRIBUTIONS ONLY:
Equitable Life
RIA/EPP
P.O. Box 13503
Newark, NJ 07188
EXPRESS MAIL ADDRESS FOR CONTRIBUTIONS ONLY:
First Chicago National Processing Center (FCNPC)
300 Harmon Meadow Boulevard, 3rd Floor
Att: Box 13503
Secaucus, NJ 07094
================================================================================
<PAGE>
PART C
OTHER INFORMATION
-----------------
Item 28. Financial Statements and Exhibits
---------------------------------
(a) Financial Statements included in Part B.
1. Separate Account Nos. 3 (Pooled), 4 (Pooled), 10 (Pooled) and
-------------------------------------------------------------
13 (Pooled) (The Aggressive Equity, Common Stock, Balanced
----------------------------------------------------------
and Bond Funds):
---------------
- Report of Independent Accountants - Price Waterhouse
2. Separate Account No. 3 (Pooled):
-------------------------------
- Statements of Assets and Liabilities, December 31, 1995
- Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1995 and 1994
- Portfolio of Investments, December 31, 1995
3. Separate Account No. 4 (Pooled):
-------------------------------
- Statements of Assets and Liabilities, December 31, 1995
- Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1995 and 1994
- Portfolio of Investments, December 31, 1995
4. Separate Account No. 10 (Pooled):
--------------------------------
- Statements of Assets and Liabilities, December 31, 1995
- Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1995 and 1994
- Portfolio of Investments, December 31, 1995
5. Separate Account No. 13 (Pooled):
--------------------------------
- Statements of Assets and Liabilities, December 31, 1995
- Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1995 and 1994
- Portfolio of Investments, December 31, 1995
6. Separate Account No. 51 (Pooled)
--------------------------------
- Report of Independent Accountants - Price Waterhouse
- Statements of Assets and Liabilities, December 31, 1995
- Statements of Operations and Changes in Net Assets for the
Year Ended December 31, 1995 and the period from June 1,
1994 to December 31, 1994.
7. Separate Account Nos. 3 (Pooled), 4 (Pooled), 10 (Pooled) and
-------------------------------------------------------------
13 (Pooled):
-----------
- Notes to Financial Statements
8. Separate Account No. 51 (Pooled):
--------------------------------
- Notes to Financial Statements
C-1
<PAGE>
9. The Equitable Life Assurance Society of the United States:
---------------------------------------------------------
- Report of Independent Accountants - Price Waterhouse
- Consolidated Balance Sheets, December 31, 1995 and 1994
- Consolidated Statements of Earnings for the Years Ended
December 31, 1995, 1994 and 1993
- Consolidated Statements of Shareholder's Equity Years Ended
December 31, 1995, 1994 and 1993
- Consolidated Statements of Cash Flows for the Years Ended
December 31, 1995, 1994 and 1993
- Notes to Consolidated Financial Statements
(b) Exhibits.
The following Exhibits are filed herewith:
1. Resolutions of the Board of Directors of The Equitable Life
Assurance Society of the United States ("Equitable")
authorizing the establishment of Separate Account Nos. 3, 4
and 10 and additional similar separate accounts, incorporated
by reference to Registration No. 2-91983 on Form N-3 of
Registrant, filed April 14, 1986.
2. Not Applicable.
3. Not Applicable.
4. (a) Investment Advisory Agreement between Equitable and
Equitable Investment Management Corporation dated
October 31, 1983, incorporated by reference to
Registration No. 2-91983 on Form N-3 of Registrant
filed on April 14, 1986.
(b) Investment Advisory and Management Agreement by and
between Alliance Capital Management L.P., Alliance
Corporate Finance Group Incorporated, an indirect
wholly owned subsidiary of Alliance, and The
Equitable Life Assurance Society of the United
States, previously filed with this Registration
Statement No. 33-76028 on March 3, 1994.
(c) Distribution Agreement dated as of January 1, 1995,
by and between The Hudson River Trust and Equico
Securities, Inc., previously filed with this
Registration Statement No. 33-76028 on April 24,
1995.
(d) Sales Agreement, dated as of January 1, 1995, by and
among Equico Securities, Inc., Equitable, and
Separate Account A, Separate Account No. 301 and
Separate Account No. 51, previously filed with this
Registration Statement No. 33-76028 on April 24,
1995.
5. Not Applicable.
C-2
<PAGE>
6. (a)1 Group Annuity Contract AC 5000 - 83T (No. 15,740)
between Equitable and United States Trust Company of
New York as Trustee under Retirement Investment
Account Master Retirement Trust, incorporated by
reference to Registration No. 2-91983 on Form N-3 of
Registrant filed April 14, 1986.
(a)2 Riders 1, 2, 3, 4, 5, 6 and 7 to Group Annuity
Contract AC 5000 - 83T (No. 15,740) between Equitable
and United States Trust Company of New York as
Trustee under Retirement Investment Account Master
Retirement Trust, as executed, incorporated by
reference to Registration No. 2-91983 on Form N-3 of
Registrant filed April 28, 1988.
(a)3 Form of Rider 8 to Group Annuity Contract AC 5000 -
83T (No. 15,740) between Equitable and United States
Trust Company of New York as Trustee under Retirement
Investment Account Master Retirement Trust,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed February 25, 1992.
(a)4 Form of Rider 9 to Group Annuity Contract AC 5000 -
83T between Equitable and United States Trust Company
of New York as Trustee under Retirement Investment
Account Master Retirement Trust, previously filed
with this Registration Statement No. 33-76028 on
March 3, 1994.
(b)1 Group Annuity Contract AC 5000 - 83E (No. 15,739)
between Equitable and United States Trust Company of
New York as Trustee under Retirement Investment
Account Retirement Trust, incorporated by reference
to Registration No. 2-91983 on Form N-3 of Registrant
filed April 14, 1986.
(b)2 Riders l, 2, 3, 4, 5, 6 and 7 to Group Annuity
Contract AC 5000 - 83E (No. 15,739) between Equitable
and United States Trust Company of New York as
Trustee under Retirement Investment Account
Retirement Trust, as executed, incorporated by
reference to Registration No. 2-91983 on Form N-3 of
Registrant filed April 14, 1986.
(b)3 Form of Rider 8 to Group Annuity Contract AC 5000 -
83E (No. 15,739) between Equitable and United States
Trust Company of New York, as Trustee under
Retirement Investment Account Master Retirement
Trust, incorporated by reference to Registration No.
2-91983 on Form N-3 of Registrant filed February 25,
1992.
(b)4 Form of Rider 9 to Group Annuity Contract AC 5000 -
83E between Equitable and United States Trust Company
of New York, as Trustee under Retirement Investment
Account Master Retirement Trust, previously filed
with this Registration Statement No. 33-76028 on
March 3, 1994.
C-3
<PAGE>
(c)1 Retirement Investment Account Master Retirement Trust
effective as of January 1, 1979, incorporated by
reference to Registration No. 2-91983 on Form N-3 of
Registrant filed April 14, 1986.
(c)2 Amendment to the Retirement Investment Account Master
Retirement Trust effective July 1, 1984, incorporated
by reference to Registration No. 2-91983 on Form N-3
of Registrant filed April 14, 1986.
(c)3 Revised Retirement Investment Account Master
Retirement Trust effective as of March 1, 1990,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed April 27, 1990.
(c)4 Form of Restated Retirement Investment Account Master
Retirement Trust as submitted to the Internal Revenue
Service, incorporated by reference to Registration
No. 2-91983 on Form N-3 of Registrant filed February
25, 1992.
7. (a) Retirement Investment Account Enrollment Forms -
Including Participation and Enrollment Agreements,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed April 14, 1986.
(b)(1) Supplementary Agreement to Master Retirement Trust
Participation Agreement, incorporated by reference to
Registration No. 2-91983 on Form N-3 of Registrant
filed April 14, 1986.
(b)(2) Supplementary Agreement B to Master Retirement Trust
Participation Agreement (RIA Loans), incorporated by
reference to Registration No. 2-91983 on Form N-3 of
Registrant filed April 28, 1988.
(b)(3) Form of Supplementary Agreement A to Master
Retirement Trust Participation Agreement (RIA Partial
Funding), as amended, incorporated by reference to
Registration No. 2-91983 on Form N-3 of Registrant
filed April 30, 1991.
(b)(4) Form of Supplementary Agreement to Master Retirement
Trust Participation Agreement (The Bond Account),
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed February 25, 1992.
(c) Basic Installation Information Form, dated May, 1989,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed April 24, 1992.
(d) RIA Installation Agreement, dated May, 1989,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed April 24, 1992.
C-4
<PAGE>
8. (a) Copy of the Restated Charter of Equitable, adopted
August 6, 1992, incorporated by reference to
Registration No. 2-91983 on Form N-3 of Registrant
filed April 21, 1993.
(b) By-Laws of Equitable, as amended through July 22,
1992, incorporated by reference to Registration No.
2-91983 on Form N-3 of Registrant filed April 21,
1993.
(c) Copy of the Certificate of Amendment of the Restated
Charter of Equitable, adopted November 18, 1993.
9. Not Applicable.
10. Not Applicable.
11. Not Applicable.
12. (a) Opinion and consent of Herbert P. Shyer, Executive
Vice President and General Counsel of Equitable Life,
dated August 28, 1984, incorporated by reference to
Registration No. 2-91983 on Form N-3 of Registrant
filed August 28, 1984.
(b) Opinion and consent of Herbert P. Shyer, Executive
Vice President and General Counsel of Equitable,
dated April 14, 1986, incorporated by reference to
Registration No. 2-91983 on Form N-3 of Registrant
filed April 14, 1986.
(c) Opinion and consent of Melvin S. Altman, Esq., Vice
President and Associate General Counsel of Equitable,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed on April 24, 1992.
(d) Opinion and consent of Hope E. Rosenbaum, Vice
President and Counsel of Equitable, previously filed
with this Registration Statement No. 33-76028 on
March 3, 1994.
13. (a) Consent of Price Waterhouse.
(b) Powers of Attorney.
27. Financial Data Schedules.
C-5
<PAGE>
Item 29: Directors and Officers of Equitable.
-----------------------------------
Set forth below is information regarding the directors and
principal officers of Equitable. Equitable's address is 787 Seventh Avenue, New
York, New York 10019. The business address of the persons whose names are
preceded by an asterisk is that of Equitable.
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
----------------- --------------------- -------------------
<S> <C> <C>
DIRECTORS
---------
Claude Bebear Director Chairman and Chief Executive
AXA S.A. Officer, AXA, and various
23, Avenue Matignon positions with AXA affiliated
75008 Paris, France companies; Director, The
Equitable Companies Incorporated
("EQ") and Chairman (February
1996 to present); Director,
Alliance Capital Management
Corporation ("Alliance")
(February 1996 to present,
Donaldson, Lufkin & Jenrette
("DLJ") (February 1996 to
present), and Equitable Real
Estate Investment Management,
Inc. ("Equitable Real Estate")
(March 1996 to present);
(Director of the following
non-AXA affiliated companies:
Schneider S.A., Societe
Generale, SOVAC and
Rhone-Poulenc, S.A.; Member of
Supervisory Board, Compagnie
Financiere de Paribas and Member
of the General Counsel of
Assicurazioni Generali S.p.A.).
</TABLE>
C-6
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
----------------- --------------------- -------------------
<S> <C> <C>
Christopher J. Brocksom Director Chief Executive Officer, AXA
AXA Equity & Law Equity & Law Life Assurance
Amersham Road Society ("AXA Equity & Law") and
High Wycombe various directorships and
Bucks HP 13 5 AL, England officerships with AXA Equity & Law
affiliated companies.
Francoise Colloc'h Director Executive Vice President, Culture
AXA S.A. - Management - Communications,
23, Avenue Matignon AXA, and various positions with
75008 Paris, France AXA affiliated companies.
Henri de Castries Director Executive Vice President -
AXA S.A. Financial Services and Life
23, Avenue Matignon Insurance Activities, AXA (1993 to
75008 Paris, France present) and various positions
with AXA affiliated companies;
Director EQ (May 1994 to present)
and Vice Chairman (February 1996
to present); Equitable Real
Estate, DLJ, and Alliance;
(Director, France Telecom).
Joseph L. Dionne Director Chairman and Chief Executive
The McGraw-Hill Companies Officer, The McGraw-Hill
1221 Avenue of the Americas Companies; Director, EQ (Director,
New York, NY 10020 Harris Corporation, Alexander &
Alexander Services, Inc. (1995 to
present), and Ryder System, Inc.
(1995 to present)).
William T. Esrey Director Chairman and Chief Executive
Sprint Corporation Officer, Sprint Corporation;
P.O. Box 11315 Director, EQ; (Director, Panhandle
Kansas City, MO 64112 Eastern Corporation, Everen
Capital Corporation (November 1995
to present), and General Mills,
Inc.).
</TABLE>
C-7
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
----------------- --------------------- -------------------
<S> <C> <C>
Jean-Rene Fourtou Director Chairman and Chief Executive
Rhone-Poulenc, S.A. Officer Rhone-Poulenc, S.A.;
25, Quai Paul Doumer Director, EQ; (Director, Societe
92408 Courvbevoie Cedex, Generale, Societe Eurosia,
France Schneider S.A. and AXA).
Norman C. Francis Director President, Xavier University of
Xavier University of Louisiana Louisiana (Chairman, Liberty Bank
7325 Palmetto Street and Trust, New Orleans, LA;
New Orleans, LA 70125 Director, First National Bank of
Commerce, New Orleans, LA, Piccadilly
Cafeteria (1995 to present), and
Entergy Corporation (1994 to present)).
Donald J. Greene Director Counselor-at-Law; Partner,
LeBoeuf, Lamb, Greene & LeBoeuf, Lamb, Greene & MacRae;
MacRae Director, EQ.
125 West 55th Street
New York, NY 10019-4513
Anthony J. Hamilton Director Chairman and Chief Executive
Fox-Pitt, Kelton Limited Officer, Fox-Pitt, Kelton Limited;
35 Wilson Street Chairman, AXA Equity & Law
London EC2M 2SJ, England (October 1995 to present) and Byas
Mosley Group Ltd.; Director, EQ
and AXA.
John T. Hartley Director Retired Chairman and Chief
Harris Corporation Executive Officer, Harris
1025 NASA Boulevard Corporation (until July 1995);
Melbourne, FL 32919 Director, EQ; (Director, Harris
Corporation and The McGraw-Hill
Companies).
</TABLE>
C-8
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
----------------- --------------------- -------------------
<S> <C> <C>
John H.F. Haskell, Jr. Director Director and Managing Director,
Dillon, Read & Co., Inc. Dillon, Read & Co., Inc.;
535 Madison Avenue Director, EQ; Chairman Supervisory
New York, NY 10028 Board, Dillon Read (France)
Gestion; Director, Dillon Read
Limited; (Director, Kaydon
Corporation).
W. Edwin Jarmain Director President, Jarmain Group, Inc.;
Jarmain Group, Inc. also an officer or director of
95 Wellington Street West several affiliated companies;
Suite 805 Chairman, FCA International, Ltd.;
Toronto, Ontario M5J 2N7, Director, EQ, DLJ, Anglo Canada
Canada General Insurance Company, AXA
Insurance (Canada), AXA Pacific
Insurance Company (formerly Boreal
Property and Casualty Insurance
Company) (December 1994 to
present), and several other AXA
affiliated companies.
G. Donald Johnston, Jr. Director Retired Chairman and Chief
184-400 Ocean Road Executive Officer JWT Group, Inc.
John's Island and J. Walter Thompson Company;
Vero Beach, FL 32963 (Director, The McGraw-Hill
Companies).
Winthrop Knowlton Director Chairman, Knowlton Brothers, Inc.;
Knowlton Brothers, Inc. President and Chief Executive
530 Fifth Avenue Officer, Knowlton Associates,
New York, NY 10036 Inc.; Director, EQ (Managing
Director, Family Partners & Co.
and Frontier Partners, Inc.;
Director, Bethlehem Steel
Corporation; and Chairman of the
Board, The Jackson Laboratory).
</TABLE>
C-9
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
----------------- --------------------- -------------------
<S> <C> <C>
Arthur L. Liman Director Counselor-at-Law; Partner, Paul,
Paul, Weiss, Rifkind, Weiss, Rifkind, Wharton &
Wharton & Garrison Garrison; Director, EQ (Director,
1285 Avenue of the Americas Continental Grain Company).
New York, NY 10019
George T. Lowy Director Counselor-at-Law; Partner,
Cravath, Swaine & Moore Cravath, Swaine & Moore.
825 Eighth Avenue (Director, Eramet (June 1995 to
New York, NY 10019 present)).
Didier Pineau-Valencienne Director Chairman and Chief Executive
Schneider S.A. Officer, Schneider S.A. and
64/70 Avenue Jean-Baptiste Clement various positions with Schneider
92646 Boulogne-Billancourt Cedex affiliated companies; Director, EQ
France (February 1996 to present);
(Director, AXA, CGIP, Compagnie
Industrielle de Paris, Sema Group
plc, and S.I.S.E.; member of
Supervisory Board of Banque
Paribas and European Advisory
Board of Bankers Trust Company).
George J. Sella, Jr. Director Retired Chairman, President and
P.O. Box 397 Chief Executive Officer, American
Newton, NJ 07860 Cyanamid Company; Director, EQ
(Director, Bush, Boake, Allen,
Inc., and Union Camp Corporation).
Dave H. Williams Director Chairman and Chief Executive
Alliance Capital Management Officer, Alliance and various
Corporation positions with Alliance
1345 Avenue of the Americas affiliated companies; Director, EQ.
New York, NY 10105
</TABLE>
C-10
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
----------------- --------------------- -------------------
<S> <C> <C>
*James M. Benson Director, President See Column 2; Prior thereto,
and Chief Executive Officer Director, President, and Chief
Operating Officer (until February
1996); Director and Senior Executive
Vice President, EQ; Director,
President, and Chief Operating
Officer, EVLICO; Director, Alliance,
AXA Re Life Insurance Company
(January 1995 to present), National
Mutual Holdings Limited (September
1995 to present), and The National
Mutual Life Association of
Australasia (September 1995 to
present), (Director, Health Plans,
Inc.).
*William T. McCaffrey Senior Executive Vice President and See Column 2; Prior thereto,
Chief Operating Officer and Director Executive Vice President and Chief
Administrative Officer (until
February 1996); Executive Vice
President and Chief Administrative
Officer, EQ; Director, EVLICO and
The Equitable Foundation (Director,
Lutheran Cemetery and Innovir
Laboratories).
</TABLE>
C-11
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
----------------- --------------------- -------------------
<S> <C> <C>
*Joseph J. Melone Chairman of the Board and Director See Column 2; Prior thereto, Chief
Executive Officer (until February
1996); Director and President, and
Chief Executive Officer (February
1996 to present), EQ, prior
thereto, Chief Operating Officer
(until February 1996); Chairman,
President, and Chief Executive
Officer, Equitable Investment
Corporation ("EIC") (September
1994 to present); Chairman and
Chief Executive Officer and
Director, EVLICO; Director,
Equitable Capital Management
Corporation ("ECMC"), DLJ,
Alliance, Equitable Real Estate
and AXA Equity & Law (Director,
Foster-Wheeler Corporation and
AT&T Capital Corporation).
OTHER OFFICERS
--------------
*Harvey Blitz Senior Vice President and Deputy Chief See Column 2; Senior Vice
Financial Officer President, EQ; Director, The
Equitable of Colorado, Inc.
("Colorado"); Director and
Chairman (September 1995 to
present), Frontier Trust Company
("Frontier"); Director, Equitable
Distributors, Inc. ("EDI")
(February 1995 to present) and
Equico Securities, Inc.
("Equico"); Director and Senior
Vice President, EquiSource, Inc.
and its subsidiaries
("EquiSource"); Director and Vice
President (April 1995 to present),
EVLICO.
</TABLE>
C-12
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
----------------- --------------------- -------------------
<S> <C> <C>
*Kevin R. Byrne Vice President and Treasurer See Column 2; Vice President and
Treasurer, EQ; Treasurer, EVLICO
and Frontier; Director, Equitable
Reality Assets Corporation
("ERAC"); Vice President and
Treasurer, Equitable Casualty
Insurance Company and EquiSource.
*Jerry M. de St. Paer Senior Executive Vice President and See Column 2; Prior thereto,
Chief Financial Officer Executive Vice President and Chief
Financial Officer (until February
1996); Executive Vice President and
Chief Financial Officer, EQ;
Director, EVLICO, DLJ, Equitable
Real Estate, Alliance (June 1994 to
present), National Mutual Asia
Limited (December 1995 to present),
and AXA Re Life Insurance Company
(June 1995 to present); Chairman,
President, and Chief Executive
Officer, ECMC and ACMC, Inc.;
Director, Executive Vice President,
and Chief Operating Officer, EIC;
Vice President, Equitable JV Holding
Corp.; Senior Investment Officer,
EVLICO; Member, Advisory Board,
Peter Wodtke (U.K.) and Peter Wodtke
(U.S.) (Director, Economic Sciences
Corporation and Nicos Seimei Hoken
(formerly Equitable Seimei Hoken)).
*Gordon G. Dinsmore Senior Vice President See Column 2; Executive Vice
President, Equico; Director and
Senior Vice President, EVLICO and
Colorado; Director, FHJV Holdings,
Inc. ("FHJV"), and The Equitable
Foundation.
</TABLE>
C-13
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
----------------- --------------------- -------------------
<S> <C> <C>
*Alvin H. Fenichel Senior Vice President and Controller See Column 2; Senior Vice
President and Controller, EQ; Vice
President, EVLICO and Colorado.
*Paul J. Flora Vice President and Auditor Prior thereto, Vice President and
Deputy Auditor (February 1994 to
September 1994); Vice President
and Auditor, EQ (September 1994 to
present); Vice President/Auditor,
National Westminster Bank
(November 1984 to June 1994).
*Robert E. Garber Executive Vice President and General See Column 2; prior thereto,
Counsel Senior Vice President and General
Counsel (September 1993 to September
1994); Executive Vice President and
General Counsel, EQ (September 1994
to present), Senior Vice President
and General Counsel (September 1993
to September 1994).
*J. Thomas Liddle, Jr. Senior Vice President and Chief See Column 2; Senior Vice
Valuation Actuary President and Chief Financial
Officer, EVLICO; Director, Vice
President and Chief Financial
Officer, Colorado; Vice President
and Controller, Frontier.
</TABLE>
C-14
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
----------------- --------------------- -------------------
<S> <C> <C>
*Michael S. Martin Senior Vice President See Column 2; Chairman, Equico;
Chairman and Chief Executive
Officer, EquiSource (January 1992
to October 1994) and Frontier
(April 1992 to October 1994); Vice
President, Hudson River Trust
("HRT") (February 1993 to February
1995); Director, Vice President
and Treasurer, EDI (August 1993 to
February 1995), also Chairman,
President, and Chief Executive
Officer (December 1993 to February
1995); Director, Colorado (January
1995 to present).
*Peter D. Noris Executive Vice President and Chief See Column 2; prior thereto, Vice
Investment Officer President/Manager, Insurance
Company Investment Strategies Group,
Salomon Brothers, Inc. (until May
1995); Executive Vice President (May
1995 to present) and Chief
Investment Officer (July 1995 to
present), EQ; Director and Senior
Vice President, EVLICO (June 1995 to
present); Director, Alliance (July
1995 to present) and Equitable Real
Estate (July 1995 to present).
*Anthony C. Pasquale Senior Vice President See Column 2; Director, ERAC, FHJV
(May 1995 to present) and
Equitable Agri-Business, Inc.
</TABLE>
C-15
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
----------------- --------------------- -------------------
<S> <C> <C>
*Pauline Sherman Vice President, Secretary and Associate Prior thereto, Vice President and
General Counsel Associate General Counsel (until
September 1995); Vice President,
Secretary and Associate General
Counsel, EQ (September 1995 to
present).
Richard V. Silver Senior Vice President and Chief Vice President and Chief
1755 Broadway, 3rd Floor Compliance Officer Compliance Officer (January 1995
New York, NY 10019 to February 1995); prior thereto,
Vice President; Director,
President, and Chief Operating
Officer (until January 1995),
Equico.
*Jose Suquet Executive Vice President and Chief Prior thereto, Agency/Sales
Agency Officer Manager (until August 1994);
Director, EVLICO (January 1995 to
present).
37189
</TABLE>
C-16
<PAGE>
Item 30. Persons Controlled by or Under Common Control with the Insurance
----------------------------------------------------------------
Company or Registrant
---------------------
Separate Account Nos. 3, 4, 10, 13, and 51 of The Equitable Life
Assurance Society of the United States (the "Separate Accounts") are separate
accounts of Equitable. Equitable, a New York stock life insurance company is a
wholly owned subsidiary of The Equitable Companies Incorporated (the "Holding
Company"), a publicly traded company.
The largest stockholder of the Holding Company is AXA S.A. At
December 31, 1995, AXA S.A. beneficially owned approximately 60.6% of the
Holding Company's outstanding common stock plus convertible preferred stock. AXA
S.A. is able to exercise significant influence over the operations and capital
structure of the Holding Company and its subsidiaries, including Equitable. AXA,
a French company, the holding company for an international group of insurance
and related financial services companies, is the principal holding company.
C-17
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
The Equitable Companies Incorporated (1991) (Delaware)
- ------------------------------------
Donaldson, Lufkin & Jenrette, Inc. (1993) (Delaware) (44.1%) (See Addendum
----------------------------------
for subsidiaries)
The Equitable Life Assurance Society of the United States (l859) (New
---------------------------------------------------------
York) (a)(b)
The Equitable of Colorado, Inc. (l983) (Colorado)
-------------------------------
Equitable Variable Life Insurance Company (l972) (New York) (a)
-----------------------------------------
FHJV Holdings, Inc. (1990) (Delaware)
-------------------
EVLICO, INC. (1995) (Delaware)
------------
EVLICO East Ridge, Inc. (1995) (Delaware)
-----------------------
GP/EQ Southwest, Inc. (1995)(Texas) (5.86%)
---------------------
Franconom, Inc. (1985) (Pennsylvania)
---------------
Frontier Trust Company (1987) (North Dakota)
----------------------
Gateway Center Buildings, Garage and Apartment Hotel, Inc.
----------------------------------------------------------
(inactive) (pre-l970) (Pennsylvania)
Equitable Deal Flow Fund, L.P.
------------------------------
Equitable Managed Assets (Delaware)
------------------------
EREIM LP Associates (99%)
-------------------------
EML Associates, L.P. (19.8%)
----------------------------
ACMC, Inc. (1991) (Delaware)
----------
Alliance Capital Management L.P. (1988) (Delaware)
--------------------------------
(46.7% limited partnership interests)
EVCO, Inc. (1991) (New Jersey)
----------
EVSA, Inc. (1992) (Pennsylvania)
----------
Prime Property Funding, Inc. (1993) (Delaware)
----------------------------
Wil Gro, Inc. (1992) (Pennsylvania)
-------------
Equitable BJVS, Inc. (1992) (California)
--------------------
- ----------
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-18
<PAGE>
The Equitable Companies Incorporated (1991) (Delaware) (cont.)
- ------------------------------------
The Equitable Life Assurance Society of the United States (cont.)
---------------------------------------------------------
Equitable Rowes Wharf, Inc. (1995) (Massachusetts)
---------------------------
GP/EQ Southwest, Inc. (1995) (Texas) (94.132%)
---------------------
Fox Run, Inc. (1994) (Massachusetts)
-------------
Equitable Underwriting and Sales Agency (Bahamas) Limited (1993)
---------------------------------------------------------
(Bahamas)
CCMI Corporation (1994) (Maryland)
----------------
FTM, Corporation (1994) (Maryland)
----------------
HVM Corporation (1994) (Maryland)
---------------
STCS, Inc. (1992) (Delaware)
----------
Camelback JVS, Inc. (1995) (Arizona)
-------------------
Equitable Holding Corporation (1985) (Delaware)
-----------------------------
Equico Securities, Inc. (l97l) (Delaware) (a) (b)
-----------------------
ELAS Securities Acquisition Corp. (l980) (Delaware)
---------------------------------
Equitable Realty Assets Corporation (l983) (Delaware)
-----------------------------------
100 Federal Street Funding Corporation (Massachusetts)
--------------------------------------
100 Federal Street Realty Corporation (Massachusetts)
--------------------------------------
EquiSource of New York, Inc. (formerly Traditional Equinet
----------------------------
Business Corporation of New York) (1986) (New York) (See
Addendum for subsidiaries.)
Equitable Casualty Insurance Company (l986) (Vermont)
------------------------------------
EREIM LP Corp. (1986) (Delaware)
--------------
EREIM LP Associates (1%)
------------------------
EML Associates (.02%)
---------------------
Six-Pac G.P., Inc. (1990) (Georgia)
------------------
Equitable Distributors, Inc. (1988) (Delaware) (a)
----------------------------
- ----------
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-19
<PAGE>
The Equitable Companies Incorporated (1991) (Delaware) (cont.)
- ------------------------------------
The Equitable Life Assurance Society of the United States (cont.)
---------------------------------------------------------
Equitable Holding Corporation (cont.)
-----------------------------
Equitable JVS, Inc. (1988) (Delaware)
-------------------
Astor/Broadway Acquisition Corp. (1990) (New York)
--------------------------------
Astor Times Square Corp. (1990) (New York)
------------------------
PC Landmark, Inc. (1990) (Texas)
-----------------
Equitable JVS II, Inc. (1994) (Maryland)
----------------------
EJSVS, Inc. (1995) (New Jersey)
-----------
Donaldson, Lufkin & Jenrette, Inc. (1985 by EIC; 1993 by EHC)
----------------------------------
(Delaware) (39%) (See Addendum for subsidiaries)
JMR Realty Services, Inc. (1994) (Delaware)
-------------------------
Equitable Investment Corporation (l97l) (New York)
--------------------------------
Stelas North Carolina Limited Partnership
-----------------------------------------
(50% limited partnership interest) (l984)
EQ Services, Inc. (1992) (Delaware)
-----------------
Equitable Agri-Business, Inc. (1984) (Delaware)
-----------------------------
Alliance Capital Management Corporation (l991) (Delaware)
---------------------------------------
(b)(See Addendum for subsidiaries)
Equitable Capital Management Corporation (l985)
----------------------------------------
(Delaware) (b)
Alliance Capital Management L.P. (1988) (Delaware)
--------------------------------
(16.6% limited partnership interests)
Equitable JV Holding Corporation (1989) (Delaware)
--------------------------------
Equitable Real Estate Investment Management, Inc. (l984)
-------------------------------------------------
(Delaware) (b)
Equitable Realty Portfolio Management, Inc. (1984)
-------------------------------------------
(Delaware)
EQK Partners (100% general partnership interest)
------------
Compass Management and Leasing Co. (formerly known as
-----------------------------------------------------
EREIM, Inc.) (l984) (Colorado)
-----------
- ----------
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-20
<PAGE>
The Equitable Companies Incorporated (1991) (Delaware) (cont.)
- ------------------------------------
The Equitable Life Assurance Society of the United States (cont.)
---------------------------------------------------------
Equitable Holding Corporation (cont.)
-----------------------------
Equitable Investment Corporation (cont.)
--------------------------------
Equitable Real Estate Investment Management, Inc. (cont.)
-------------------------------------------------
Equitable Real Estate Capital Markets, Inc. (1987)
-------------------------------------------
(Delaware) (a)
EQ Realty Associates-V, Inc. (1987) (Delaware)
----------------------------
EPPNLP Corp. (1987) (Delaware)
------------
Equitable Pacific Partners Corp. (1987) (Delaware)
--------------------------------
Equitable Pacific Partners Limited Partnership
----------------------------------------------
EREIM Managers Corp. (1986) (Delaware)
--------------------
ML/EQ Real Estate Portfolio, L.P.
---------------------------------
EML Associates, L.P. (80%)
--------------------------
Compass Retail, Inc. (1990) (Delaware)
--------------------
Compass Management and Leasing, Inc. (1991)(Delaware)
------------------------------------
Compass Cayman (1996) (Cayman Islands)
--------------
Column Financial, Inc. (1993) (Delaware) (50%)
----------------------
Buckhead Strategic Corp. (1994) (Delaware)
------------------------
Buckhead Strategic Fund, L.P.
-----------------------------
BH Strategic Co. I, L.P.
------------------------
Buckhead Strategic Co. II, L.P.
-------------------------------
Buckhead Strategic Co. III, L.P.
--------------------------------
Buckhead Strategic Co. IV, L.P.
-------------------------------
CJVS, Inc. (1994) (California)
----------
ERE European Corp. I, L.P. (1994) (Delaware)
--------------------------
A/E European Associates I Limited Partnership
---------------------------------------------
Community Funding, Inc. (1994) (Delaware)
-----------------------
Community Mortgage Fund, L.P. (1994) (Delaware)
-----------------------------
Buckhead Strategic Corp. II (1995) (Delaware)
---------------------------
C-21
<PAGE>
The Equitable Companies Incorporated (1991) (Delaware) (cont.)
- ------------------------------------
The Equitable Life Assurance Society of the United States (cont.)
---------------------------------------------------------
Equitable Holding Corporation (cont.)
-----------------------------
Equitable Investment Corporation (cont.)
--------------------------------
Equitable Real Estate Investment Management, Inc. (cont.)
-------------------------------------------------
Buckhead Strategic Corp. II (cont.)
---------------------------
Buckhead Strategic Fund L.P. II
-------------------------------
Buckhead Co. III, L.P.
----------------------
HYDOC, L.L.C.
-------------
C-22
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM - NON-REAL ESTATE SUBSIDIARY
OF EQUITABLE HOLDING CORPORATION
HAVING MORE THAN FIVE SUBSIDIARIES
--------------------------------------------
EquiSource of New York, Inc. (formerly Traditional Equinet Business Corporation
of New York) has the following subsidiaries that are brokerage companies to make
available to Equitable Agents within each state traditional (non-equity)
products and services not produced by Equitable:
EquiSource of Delaware, Inc. (1986) (Delaware)
EquiSource of Alabama, Inc. (1986) (Alabama)
EquiSource of Arizona, Inc. (1986) (Arizona)
EquiSource of Arkansas, Inc. (1987) (Arkansas)
EquiSource Insurance Agency of California, Inc. (1987) (California)
EquiSource of Colorado, Inc. (1986) (Colorado)
EquiSource of Hawaii, Inc. (1987) (Hawaii)
EquiSource of Maine, Inc. (1987) (Maine)
EquiSource Insurance Agency of Massachusetts, Inc. (1988) (Massachusetts)
EquiSource of Montana, Inc. (1986) (Montana)
EquiSource of Nevada, Inc. (1986) (Nevada)
EquiSource of New Mexico, Inc. (1987) (New Mexico)
EquiSource of Pennsylvania, Inc. (1986) (Pennsylvania)
EquiSource Insurance Agency of Utah, Inc. (1986) (Utah)
EquiSource of Washington, Inc. (1987) (Washington)
EquiSource of Wyoming, Inc. (1986) (Wyoming)
C-23
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM - OTHER NON-REAL ESTATE SUBSIDIARIES
HAVING MORE THAN FIVE SUBSIDIARIES
--------------------------------------------
Donaldson, Lufkin & Jenrette, Inc. has the following subsidiaries, and
- ----------------------------------
approximately 60 other subsidiaries, most of which are special purpose
subsidiaries (the number fluctuates according to business needs):
Donaldson, Lufkin & Jenrette, Inc. (1985) (Delaware)
----------------------------------
Donaldson, Lufkin & Jenrette Securities Corporation (1985)
---------------------------------------------------
(Delaware) (a) (b)
Wood, Struthers & Winthrop Management Corporation (1985)
-------------------------------------------------
(Delaware) (b)
Autranet, Inc. (1985) (Delaware) (a)
--------------
DLJ Real Estate, Inc.
---------------------
DLJ Capital Corporation (b)
-----------------------
DLJ Mortgage Capital, Inc. (1988) (Delaware)
--------------------------
Column Financial, Inc. (1993) (Delaware) (50%)
----------------------
Alliance Capital Management Corporation has the following subsidiaries:
- ---------------------------------------
Alliance Capital Management Corporation (1991) (Delaware) (b)
---------------------------------------
Alliance Capital Management L.P. (1988) (Delaware) (b)
--------------------------------
Alliance Capital Management Corporation of Delaware, Inc.
---------------------------------------------------------
(Delaware)
Alliance Fund Services, Inc. (Delaware)
----------------------------
Alliance Capital Management (Japan), Inc. (formerly
-----------------------------------------
Alliance Capital Mgmt. Intl.)
Alliance Fund Distributors, Inc. (Delaware) (a)
--------------------------------
Alliance Oceanic Corp. (Delaware) (formerly
----------------------
Alliance Capital, Ltd.)
Alliance Capital Management Australia Pty. Ltd.
-----------------------------------------------
(Australia)
Meiji - Alliance Capital Corp. (Delaware) (50%)
------------------------------
Alliance Capital (Luxembourg) S.A. (99.98%)
----------------------------------
Alliance Southern Europe Corp. (Delaware)
------------------------------
(inactive)
Alliance Barra Research Institute, Inc. (Delaware)
---------------------------------------
(50%)
Alliance Capital Management Canada, Inc. (Canada)
----------------------------------------
(99.99%)
Alliance Capital Management Limited (United
-----------------------------------
Kingdom)
Pastor Alliance Gestora de Fondas de
------------------------------------
Pensiones, S.A. (Spain) (50%)
---------------
Dementional Asset Management, Ltd. (U.K.)
----------------------------------
Dementional Trust Management, Ltd. (U.K.)
----------------------------------
Alliance Capital Global Derivatives Corp.
-----------------------------------------
(Delaware)
Alliance Corporate Finance Group, Inc. (Delaware)
--------------------------------------
- ----------
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-24
<PAGE>
AXA GROUP CHART
The information listed below is dated as of January 1, 1996; percentages shown
represent voting power. The name of the owner is noted when AXA indirectly
controls the company.
AXA INSURANCE AND REINSURANCE BUSINESS HOLDING
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
Axa Assurances Iard France 96.9%
Axa Assurances Vie France 100% by Axa and Uni Europe Vie
Uni Europe Assurance France 100% by Axa and Axa Assurances Iard
Uni Europe Vie France 99.3% by Axa and Axa Assurances Iard
Alpha Assurances Vie France 100%
Axa Direct France 100%
Direct Assurances Iard France 100% by Axa Direct
Direct Assurance Vie France 100% by Axa Direct
Axa Direkt Versicherung A.G. Germany 100% owned by Axa Direct
Axiva France 90.3%
Defense Civile France 95%
Societe Francaise d'Assistance France 51.2% by Axa Assurances Iard
Monvoisin Assurances France 99.92% by different companies and Mutuals
Societe Beaujon France 100%
Lor Finance France 99.9%
Jour Finance France 100% by different companies
Compagnie Auxiliaire pour le Commerce et France 100% by Societe Beaujon
l'Industrie
C.F.G.A. France 99.96% owned by the mutuals and Finaxa
Saint Bernard Diffusion France 89.9%
Sogarep France 95%, (100% with the mutuals)
Argovie France 100% by Axiva and SCA Argos
Finargos France 66.4% owned by Axiva
Astral France 100% by Uni Europe Assurance
Argos France N.S.
Finaxa Belgium Belgium 100%
</TABLE>
C-25
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
Axa Belgium Belgium 18.5% by Axa(SA) and 72.5% by Finaxa Belgium
De Kortrijske Verzekering Belgium 99.8%
Juris Belgium 100%
Finaxa Luxembourg Luxembourg 100%
Axa Assurance IARD Luxembourg Luxembourg 99.4%
Axa Assurance Vie Luxembourg Luxembourg 99.4%
Axa Aurora Spain 50%
Aurora Polar SA de Seguros y Reaseguros Spain 99.8% owned by Axa Aurora
Axa Vida SA de Seguros y Reaseguros Spain 99.8% owned by Axa Aurora
Axa Gestion de Seguros y Reaseguros Spain 100% owned by Axa Aurora
Axa Assicurazioni Italy 100%
Eurovita Italy 30% owned by Axa Assicurazioni
Axa Equity & Law plc U.K. 99.9%
Axa Equity & Law Life Assurance Society U.K. 100% by Axa Equity & Law plc
Axa Equity & Law International U.K. 100% owned by Axa Equity & Law plc
Axa Equity & Law Levensverzekeringen Netherlands 100% by Axa Equity & Law plc
Axa Insurance U.K. 100%
Axa Global Risks U.K. 100% by Axa and Uni Europe Assurance
Axa U.K. U.K. 100%
Axa Canada Canada 100%
Boreal Insurance Canada 100% owned by AXA Canada
Axa Assurances Inc Canada 100% owned by Axa Canada
Axa Insurance Inc Canada 100% owned by Axa Canada
Anglo Canada General Insurance Cy Canada 100% owned by Axa Canada
Axa Pacific Insurance Canada 100% by Boreal Insurance
Boreal Assurances Agricoles Canada 100% by Boreal Insurance
</TABLE>
C-26
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
Sime Axa Berhad Malaysia 30%
Axa Sime Investment Holdings Pte Ltd Singapore 50%
Axa Sime Assurance Hong Kong 100% owned by Axa Sime Invt. Holdings Pte
Ltd
Axa Sime Assurance Singapore 100% owned by Axa Sime Invt Holdings Pte Ltd
Axa Life Insurance Hong Kong 100%
PT Asuransi Axa Indonesia Indonesia 80%
Equitable Cies Incorp. U.S.A. 60.6% owned by Axa, 44.4% Financiere 45,
3.8%, Lorfinance 7.6% and Axa Equity & Law
Life Association Society 4.8%
Equitable Life Assurance of the USA U.S.A. 100% owned by Equitable Cies Inc.
National Mutual Holdings Ltd Australia 51%
The National Mutual Life Association of Australia 100% owned by National Mutual Holdings Ltd
Australasia Ltd
National Mutual International Pty Ltd 74% owned by National Mutual Holdings Ltd
and 26% by The National Mutual Life
Association of Australasia
National Mutual (Bermuda) Ltd Australia 100% owned by National Mutual International
Pty Ltd
National Mutual Asia Ltd Bermuda 54% owned by National Mutual (Bermuda) Ltd
and 20% by Delta Ltd
National Mutual Funds Management (Global) Ltd Australia 100% owned by National Mutual Holdings Ltd
National Mutual Funds Management North USA 100% owned by National Mutual Funds
America Holdings Inc Management (Global) Ltd
Australian Casualty & Life Ltd Australia 100% owned by National Mutual Holdings Ltd
National Mutual Health Insurance Pty Ltd Australia 100% owned by National Mutual Holdings Ltd
Axa Reassurance France 100%
Axa Re Finance France 100% owned by Axa Reassurance
Axa Re Vie France 100% owned by Axa Reassurance
Axa Cessions France 100%
</TABLE>
C-27
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
Abeille Reassurances France 100% owned by Axa Reassurance
Axa Re Mexico Mexico 100% owned by Axa Reassurance
Axa Re Asia Singapore 100% owned by Axa Reassurance
Axa Re U.K. Plc U.K. 100% owned by Axa Re U.K. Holding
Axa Re U.K. Holding U.K. 100% owned by Axa Reassurance
Axa Re U.S.A. U.S.A. 100% owned by Axa America
Axa America U.S.A. 100% owned by Axa Reassurance
International Technology Underwriters Inc U.S.A. 80% owned by Axa America
(INTEC)
Axa Re Life U.S.A. 100% owned by Axa Re Vie
C.G.R.M. Monaco 100% by Axa Reassurance
Axa Life Insurance Japan 100% owned by Axa
Dongbu Axa Life Insurance Co Ltd Korea 50%
Axa Oyak Hayat Sigota Turkey 60%
Oyak Hayat Sigorta Turkey 11%
</TABLE>
C-28
<PAGE>
AXA FINANCIAL BUSINESS
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
Compagnie Financiere de Paris (C.F.P.) France 96.9%, (100% with the Mutuals)
Axa Banque France 98.7% owned by C.F.P.
Financiere 78 France 100% owned by C.F.P.
Axa Credit France 65% owned by C.F.P.
Axa Gestion Interessement France 100% owned by C.F.P.
Compagnie Europeenne de Credit (C.E.C.) France 100% owned by C.F.P.
Fidei France 20.7% owned by C.F.P. and 10.8% by Axamur
Meeschaert Rousselle France 100% owned by Financiere 78
M R Futures SNC France 59% by Meeschaert Rousselle
Opale Derivee Bourse France 89.4% by M.R. Futures and Meeschaert
Rousselle
Anjou Courtage France 70% owned by Meeschaert Rousselle
Axiva Gestion France 100% owned by Axiva
Juri Creances France 100% by different companies
Societe de Placements Selectionnes S.P.S. France 99.3% with the Mutuals
Presence et Initiative France 73% with the Mutuals
Vamopar France 100% owned by Societe Beaujon
Financiere Mermoz France 100%
Axa Asset Management Europe France 100%
Axa Asset Management Partenaires France 100% owned by Axa Asset Management Europe
Axa Asset Management Conseils France 100% owned by Axa Asset Management Europe
Axa Asset Management Distribution France 100% owned by Axa Asset Management Europe
Axa Equity & Law Home Loans U.K. 100% owned by Axa Equity & Law
Axa Equity & Law Commercial Loans U.K. 100% owned by Axa Equity & Law
</TABLE>
C-29
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
Alliance Capital Management U.S.A. 59% held by ELAS
Donaldson Lufkin & Jenrette U.S.A. 36.1% owned by ELAS and 44.1% by Equitable
Cies Inc.
Cogefin Luxembourg 100% owned by Axa Belgium
Soflinter Belgium 100% owned by Axa Belgium
Financiere 45 France 99.6%
Mofipar France 99.76% owned by Societe Beaujon
ORIA France 100% owned by Axa Millesimes
Axa Oeuvres d'Art France 100% by the Mutuals
Axa Cantenac Brown France 100%
Colisee Acti Finance 1 France 100% owned by Societe Beaujon
Colisee Acti Finance 2 France 100% owned by Axa Assurances Iard Mutuelle
Participations 2001 France 100% owned by Societe Beaujon
Finalor France 100% owned by Societe Beaujon
</TABLE>
C-30
<PAGE>
AXA REAL ESTATE BUSINESS
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
C.I.P.M. France 97.6% with the Mutuals
Fincosa France 100% owned by C.I.P.M.
Prebail France 100% owned by Societe Beaujon and C.F.P.
Axamur France 100% by different companies and mutuals
Parigest France 100% by the Mutuals, C.I.P.M. and Fincosa
Parimmo France 100% by the insurance companies and the
mutuals
S.G.C.I. France 100% with the Mutuals
Transaxim France 99.4% owned by S.G.C.I.
Compagnie Parisienne de Participations France 100% owned by S.G.C.I.
Monte Scopeto France 100% owned by C.P.P.
Matipierre France 100% by different companies
Securimmo France 87% by different companies and mutuals
Paris Orleans France 99.9% by different companies
Colisee Bureaux France 99.4% by different companies
Colisee Premiere France 99.9% by different companies
Colisee Laffitte France 99.8% by Colisee Bureaux
Carnot Laforge France 100% by Colisee Premiere
Parc Camoin France 100% by Colisee Premiere
Delta Point du Jour France 100% owned by Matipierre
Paroi Nord de l'Arche France 100% owned by Matipierre
Falival France 100% owned by Axa Reassurance
Compagnie du Gaz d'Avignon France 99% owned by Axa Assurances Iard
Ahorro Familiar France 40.1% owned by Axa Assurances Iard
Fonciere du Val d'Oise France 100% owned by C.P.P.
Sodarec France 99.9% owned by C.P.P.
Centrexpo France 99.9% owned by C.P.P.
</TABLE>
C-31
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
Fonciere de la Vile du Bois France 99.6% owned by Centrexpo
Colisee Seine France 97.4% by different companies
Translot France 99.9% by SGCI
S.N.C. Dumont d'Urville France 100% owned by Colisee Premiere
Colisee Participations France 100% by SGCI
Colisee Federation France 100% by SGCI
Colisee Saint Georges France 100% by SGCI
Drouot Industrie France 50% by SGCI
Colisee Vauban France 99.7% by Matipierre
Fonciere Colisee France 98.9% by Matipierre
Axa Pierre S.C.I. France 97.6% owned by different companies and
Mutuals
Axa Millesimes France 77.8% owned by AXA and the Mutuals
Chateau Suduirault France 100% owned by Axa Millesimes
Diznoko Hongrie 100% owned by Axa Millesimes
Compagnie Fonciere Matignon France 100% by different companies and Mutuals
Equitable Real Estate Investment U.S.A. 100% owned by ELAS
Quinta do Noval Vinhos S.A. Portugal 99.9% owned by Axa Millesimes
</TABLE>
C-32
<PAGE>
OTHER AXA BUSINESS
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
<S> <C> <C>
A.N.F. France 95.4% owned by Finaxa
SCOR France 10.1% owned by Axa Reassurance
Campagnie du Cambodge France 23% owned by A.N.F.
Lucia France 20.6% owned by Axa Assurance Iard and 8.6%
by the mutuals
Rubis et Cie France 12.7% owned by Uni Europe Assurance
Schneider S.A. France 10%
Eurofin France 31.6% owned by Compangie Financiere de Paris
</TABLE>
C-33
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
NOTES
-----
1. The year of formation or acquisition and state or country of
incorporation of each affiliate is shown.
2. The chart omits certain relatively inactive special purpose real estate
subsidiaries, partnerships, and joint ventures formed to operate or
develop a single real estate property or a group of related properties,
and certain inactive name-holding corporations.
3. All ownership interests on the chart are 100% common stock ownership
except for (a) as noted for certain partnership interests, (b) ACMC,
Inc.'s and Equitable Capital's limited partnership interests in
Alliance Capital Management L.P., (c) as noted for certain subsidiaries
of Alliance Capital Management Corp. of Delaware, Inc., (d) Treasurer
Robert L. Bennett's 20% interest in Compass Management and Leasing
(formerly known as EREIM, Inc.), (e) as noted for certain subsidiaries
of AXA, (f) The Equitable Companies Incorporated's 61% interest in DLJ
and Equitable Holding Corp's 39% interest in same, and (g) DLJ Mortgage
Capital, Inc.'s and Equitable Real Estate Investment Management, Inc.'s
ownership (50% each) in Column Financial, Inc.
4. The operational status of the entities shown as having been formed or
authorized but "not yet fully operational" should be checked with the
appropriate operating areas, especially for those that are start-up
situations.
5. The following entities are not included in this chart because, while
they have an affiliation with The Equitable, their relationship is not
the ongoing equity-based form of control and ownership that is
characteristic of the affiliations on the chart, and, in the case of
the first two entities, they are under the direction of at least a
majority of "outside" trustees:
The Equitable Funds
The Hudson River Trust
Separate Accounts
6. This chart was last revised on March 25, 1996.
C-34
<PAGE>
Item 31. Number of Contractowners
------------------------
As of March 31, 1996 there were 17,920 owners of qualified and
non-qualified RIA Contracts offered by the registrant.
Item 32. Indemnification
---------------
(a) Indemnification of Principal Underwriter: to the extent
permitted by law of the State of New York and subject to all
applicable requirements thereof, Equitable undertook to
indemnify each of its directors and officers who is made or
threatened to be made a party to any action or proceeding,
whether civil or criminal, by reason of the fact that he,
his testator or intestate, is or was a director or officer
of Equitable.
(b) Undertaking: insofar as indemnification for liability
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 33. Business and Other Connections of Investment Adviser
----------------------------------------------------
The Equitable Life Assurance Society of the United States
("Equitable Life") acts as the investment manager for Separate Account Nos. 3,
4, 10, 13 and 51. In providing these services to the Separate Accounts,
Equitable Life uses the personnel and facilities of Alliance Capital Management
L.P. ("Alliance"), a publicly-traded limited partnership, that is indirectly
majority-owned by Equitable Life, to provide personnel and facilities for
portfolio selection and transaction services. Alliance recommends the securities
investments to be purchased and sold for Separate Account Nos. 3, 4, 10, 13 and
51 and arranges for the execution of portfolio transactions. Alliance
coordinates related accounting and bookkeeping functions with Equitable Life.
Both Equitable Life and Alliance are registered investment advisers under the
Investment Advisers Act of 1940.
C-35
<PAGE>
Information regarding the directors and principal officers of
Equitable is provided in Item 29 of this Part C and is incorporated herein by
reference.
Set forth below is certain information regarding the directors and
principal officers of Alliance Capital Management Corporation. The business
address of the Alliance persons whose names are preceded by an asterisk is 1345
Avenue of the Americas, New York, New York 10105.
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ------------------ -------------- ----------------------
DIRECTORS
- ---------
<S> <C> <C>
*Dave H. Willams Director, Chairman of the Board and See Column 2. Director - The
Chief Executive Officer Equitable Life Assurance Society of
the United States ("Equitable") and
The Equitable Companies
Incorporated ("EQ").
Luis Javier Bastida Director Chief Financial Officer and a
Banco Bilbao Vizcaya member of the Executive Committee
Gran Via 1 of Banco Bilbao Vizcaya.
Planta 16 48001
Bilbao, Spain
Claude Bebear Director Chairman and Chief Executive
AXA S.A. Office, AXA, and various positions
23, Avenue Matignon with AXA affiliated companies;
75008 Paris, France Director, EQ and Chairman (February
1996 to present); Director,
Donaldson, Lufkin & Jenrette
("DLJ") (February 1996 to present),
Equitable, and Equitable Real
Estate Investment Management, Inc.
("Equitable Real Estate") (March
1996 to present); (Director of the
following non-AXA affiliated
companies: Schneider S.A., Societe
Generale, SOVAC and
Rhone-Poulence, S.A.;
</TABLE>
C-36
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ------------------ -------------- ----------------------
<S> <C> <C>
Bebear cont. Member of Supervisory Board,
Compagnie Financiere de Paribas and
Member of the General Counsel of
Assicurazioni Generali S.p.A.).
James M. Benson Director Director, President and Chief
The Equitable Life Executive Officer, Equitable; Prior
Assurance Society thereto, President, Chief Operating
of the U.S. Officer and Director, (until
787 Seventh Avenue February 1996); Director and Senior
New York, NY 10019 Vice President, EQ; Director,
President and Chief Operating
Officer, Equitable Variable Life
Insurance Company ("EVLICO"),
Director, AXA Re Life Insurance
Company (January 1995 to present),
and The National Mutual Life
Association of Australasia (September
1995 to present), (Director, Health
Plans, Inc.).
*Bruce W. Calvert Director, Vice Chairman, and Chief See Column 2.
Investment Officer
</TABLE>
C-37
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ------------------ -------------- ----------------------
<S> <C> <C>
*John D. Carifa Director, President and Chief See Column 2. Chief Financial
Operating Officer Officer until December, 1994.
Henri de Castries Director Executive Vice President -
AXA Financial Services and Life
23, Avenue Matignon Insurance Activities, AXA and
75008, Paris, France various positions with AXA
affiliated companies; Director, EQ
(May 1994 to present) and Vice
Chairman (February 1996 to present);
Director, Equitable Real Estate, DLJ,
and Equitable; (Director, France
Telecom).
Kevin C. Dolan Director Senior Vice President -
AXA AXA
23, Avenue Matignon
75008, Paris, France
Dennis Duverne Director Senior Vice President,
AXA International Life of AXA.
23, Avenue Matignon
75008, Paris, France
Alfred Harrison Director, Vice Chairman See Column 2.
Alliance Capital
Management L.P.
3600 Piper Jaffray Tower
Minneapolis, MN 55402
</TABLE>
C-38
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ------------------ -------------- ----------------------
<S> <C> <C>
Jean-Pierre Hellebuyck Director Chief Investment Officer - AXA;
AXA - Gestion des Actifs Director - AXA Reassurance France,
40, rue de Colisee AXA Reinsurance UK Plc, AXA
Paris, France 75008 Reinsurance Company, Equity & Law
Plc, Equity & Law Investment
Managers Ltd., Equity & Law
Fondsmanagement GmbH, Europhenix
Management Company and Societe Des
Bourses Francaises.
Benjamin D. Holloway Director Consultant to Tishman/Speyer,
Continental Companies Edward Debartolo and The
3250 Mary Street Continental Companies. Director -
Miami, Florida 33133 Rockefeller Center Properties,
Inc.; Chairman - Duke University
Management Corporation.
Henri Hottinguer Director Partner Hottinguer & Company.
Banque Hottinguer President/General Director - Banque
38 Rue de Provence Hottinguer (French bank); Director
Paris, France 75008 - Helvetia Fund, Inc. and DLJ.
</TABLE>
C-39
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ------------------ -------------- ----------------------
<S> <C> <C>
Joseph J. Melone Director Director, President and Chief
The Equitable Life Executive Officer, EQ (February
Assurance Society 1996 to present); prior thereto
of the U.S. Chief Operating Officer (until
787 Seventh Avenue February 1996); Chairman of the
New York, NY 10019 Board and Director - Equitable
prior thereto, Chief Executive
Officer (until February 1996);
Chairman, President, and Chief
Executive Officer, Equitable
Investment Corporation (September
1994 to present), Chairman and Chief
Executive Officer and Director,
EVLICO; Director, Equitable Capital
Management Corporation ("ECMC"), DLJ,
and Equitable Real Estate, AXA Equity
& Law (Director, Foster-Wheeler
Corporation and AT&T Capital
Corporation).
*Frank Savage Director Chairman of ACFG; Chairman of ECMC
(April 1992 to July 1993); Director -
Lockheed Corporation, and ARCO
Chemical Corporation.
</TABLE>
C-40
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ------------------ -------------- ----------------------
<S> <C> <C>
Jerry M. de St. Paer Director Senior Executive Vice President and
The Equitable Life Chief Financial Officer, Equitable;
Assurance Society prior thereto, Executive Vice
of the U.S. President (until February 1996)
787 Seventh Avenue Executive Vice President and Chief
New York, N.Y. 10019 Financial Officer, EQ; Director,
EVLICO, DLJ, and Equitable Real
Estate; National Mutual Asia Limited
(December 1995 to present), and AXA
RE Life Insurance Company (June 1995
to present); Director, Chairman,
President, and Chief Executive
Officer, ECMC; Director, and
Executive Vice President, and Chief
Operating Officer, Equitable
Investment Corporation; Vice
President, Equitable JV Holding
Corp.; Senior Investment Officer,
EVLICO (April 1995 to present);
Member, Advisory Board, Peter Wodtke
(U.K.) and Peter Wodtke (U.S.)
(Director, Economic Services
Corporation and Nicos Seimei Hoken
(formerly Equitable Seimei Hoken)).
Madelon DeVoe Talley Director Investment Consultant, Governor,
876 Park Avenue National Association of Securities
New York, NY 10021 Dealers; Vice Chairman, W.P. Carey
& Co.; Director, Corporate Property
Associates.
*Reba White Williams Director Director of Special Projects for
ACMC.
</TABLE>
C-41
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ------------------ -------------- ----------------------
OFFICERS
- --------
<S> <C> <C>
*David R. Brewer Senior Vice President and General See Column 2.
Counsel
*Robert H. Joseph, Jr. Senior Vice President & Chief See Column 2. prior thereto;
Financial Officer Senior Vice President - Finance
(January 1994 to December 1994);
Senior Vice President and
Controller (until January 1994)
</TABLE>
Item 34. Principal Underwriters
----------------------
(a) Equico Securities, Inc. ("Equico"), a wholly-owned subsidiary
of Equitable, is the principal underwriter and depositor for
its Separate Account A and Separate Account No. 301, and may
be deemed to be a principal underwriter for Separate Account
I and Separate Account FP of Equitable Variable Life
Insurance Company. On or about May 1, 1996 Equico will change
its name to EQ Financial Consultants, Inc. Equico's principal
business address is 1755 Broadway, New York, NY 10019.
(b) See Item 29 of this Part C, which is incorporated herein by
reference.
Item 35. Location of Accounts and Records
--------------------------------
The Equitable Life Assurance Society of the United States
135 West 50th Street
New York, New York 10020
Item 36. Management Services
-------------------
Not applicable.
Item 37. Undertakings
------------
Although this is not an initial registration statement requiring
the undertakings pursuant to Item 37, the Registrant hereby undertakes the
following:
C-42
<PAGE>
(a) to file a post-effective amendment to this registration
statement as frequently as is necessary to ensure that the
audited financial statements in the registration statement
are never more than sixteen months old for so long as
payments under the variable annuity contracts may be
accepted;
(b) to include (1) as part of its applications to purchase any
contract offered by the prospectus, a space that an applicant
can check to request a Statement of Additional Information,
or (2) a postcard or similar written communication affixed to
or included in the prospectus that the applicant can remove
to send for a Statement of Additional Information; and
(c) to deliver any Statement of Additional Information and any
financial statements required to be made available under this
form promptly upon written or oral request.
The Registrant hereby represents that it is relying on the
November 28, 1988 no-action letter (Ref. No. IP-6-88) relating to variable
annuity contracts offered as funding vehicles for retirement plans meeting the
requirements of Section 403(b) of the Internal Revenue Code. Registrant further
represents that it complies with the provisions of paragraph (1)-(4) of that
letter.
13527/AFR_1
13531/AFV_1
13533/AFX_1
C-43
<PAGE>
SIGNATURES
As required by the Securities Act of 1933, the Registrant certifies
that it meets the requirements of Securities Act Rule 485(b) for effectiveness
of this Registration and has caused this registration statement to be signed on
its behalf, in the City and State of New York on this 26th day of April, 1996.
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
(Registrant and Insurance Company)
By: /s/ James D. Goodwin
-------------------------
James D. Goodwin
Vice President
As required by the Securities Act of 1933, this post-effective
amendment to the registration statement has been signed by the following persons
in the capacities and on the date indicated:
PRINCIPAL EXECUTIVE OFFICERS:
James M. Benson President, Chief Executive Officer
and Director
William T. McCaffrey Senior Executive Vice President,
Chief Operating Officer and Director
Joseph J. Melone Chairman of the Board and Director
PRINCIPAL FINANCIAL OFFICER:
Jerry M. de St. Paer Senior Executive Vice President and
Chief Financial Officer
PRINCIPAL ACCOUNTING OFFICER:
/s/ Alvin H. Fenichel Senior Vice President and Controller
- ---------------------
Alvin H. Fenichel
April 26, 1996
DIRECTORS:
<TABLE>
<S> <C> <C>
Claude Bebear Jean-Rene Foutou Winthrop Knowlton
James M. Benson Norman C. Francis Arthur L. Liman
Christopher Brocksom Donald J. Greene George T. Lowy
Francoise Colloc'h Anthony J. Hamilton William T. McCaffrey
Henri de Castries John T. Hartley Joseph J. Melone.
Joseph L. Dionne John H.F. Haskell, Jr. Didier Pineau-Valencienne
William T. Esrey W. Edwin Jarmain George J. Sella, Jr.
G. Donald Johnston, Jr. Dave H. Williams
</TABLE>
By: /s/ James D. Goodwin
------------------------
James D. Goodwin
Attorney-in-Fact
April 26, 1996
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
EXHIBIT NO. TAG VALUE
- ----------- ---------
<C> <C> <C>
8(c) Copy of the Certificate of Amendment of the Restated Charter of EX-99.8c CHARTER
Equitable, adopted November 18, 1993.
13(a) Consent of Price Waterhouse. EX-99.13a CONSENT
13(b) Powers of Attorney. EX-99.13b POW ATTY
27 Financial Data Schedules. EX-27
</TABLE>
CERTIFICATE OF AMENDMENT OF THE RESTATED CHARTER OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Under Section 1206 of the Insurance Law and
Section 805 of the Business Corporation Law of the State of New York
--------------------------------------------------------------------
We, the undersigned, Joseph J. Melone, President and Chief Executive
Officer and Molly K. Heines, Vice President and Secretary, hereby certify:
(1). The name of the corporation is The Equitable Life Assurance
Society of the United States (the "Corporation").
(2). The Corporation's Charter was filed in the office of the Insurance
Department of the State of New York on May 10, 1859.
(3). The Charter of the Corporation, as amended and restated by the
Restated Charter effective July 22, 1993, is hereby further amended to
increase the capital of the Corporation from $2,000,000 to $2,500,000
by increasing the par value of a share of the Common Shares of the
Corporation from $1.00 to $1.25. Article VIII of the Charter which
contains the statement with respect to the capital of the Corporation,
is hereby amended in its entirety to read as follows:
ARTICLE VIII
The amount of the capital of the corporation shall be
$2,500,000 and shall consist of 2,000,000 Common Shares, par value
$1.25 per share.
(4) The aforesaid amendment of the Charter of the Corporation was duly
approved by a majority vote of the Board of Directors of the
Corporation at a meeting duly called and held on November 18, 1993 and
was duly consented to in writing by the holder of all of the
outstanding shares of the Corporation on the same date.
IN WITNESS WHEREOF, the undersigned have signed this certificate the
18th day of November 1993, and affirm that the statements made herein are true
under the penalties of perjury.
/s/ Joseph J. Melone
--------------------
Joseph J. Melone
President & Chief Executive Officer
/s/ Molly K. Heines
-------------------
Molly K. Heines
Vice President & Secretary
38193
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 4 to the Registration
Statement No. 33-76028 on Form N-3 (the "Registration Statement") of our report
dated February 7, 1996, relating to the financial statements of Separate Account
Nos. 13, 10, 4, 3, and 51 of The Equitable Life Assurance Society of the United
States, and our report dated February 7, 1996, relating to the consolidated
financial statements of The Equitable Life Assurance Society of the United
States, which reports appear in such Statement of Additional Information, and to
the incorporation by reference of our reports into the Prospectus Supplement
which constitutes part of this Registration Statement. We also consent to the
references to us under the headings "Condensed Financial Information" and
"Experts" in such Prospectus Supplement.
/s/ Price Waterhouse LLP
------------------------
PRICE WATERHOUSE LLP
New York, New York
April 24, 1996
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Claude Bebear
-----------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ James M. Benson
-------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Christopher Brockson
------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Francoise Colloc'h
----------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Henri de Castries
---------------------
- -
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Joseph L. Dionne
--------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ William T. Esrey
--------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Jean-Rene Fourtou
---------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Norman C. Francis
---------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Donald J.Greene
-------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Anthony J. Hamilton
-----------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ John T. Hartley
-------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ John H.F. Haskell, Jr.
--------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ W. Edwin Jarmain
--------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ G. Donald Johnston, Jr.
---------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996
/s/ Winthrop Knowlton
---------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ George T. Lowy
------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ William T. McCaffrey
------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Joseph J. Melone
--------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Didier Pineau-Valencienne
-----------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ George J. Sella, Jr.
------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred Oliver
and each of them (with full power to each of them to act alone), his or her true
and lawful attorney-in-fact and agent, with full power of substitution to each,
for him or her and on his or her behalf and in his or her name, place and stead,
to execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/ Dave H. Williams
--------------------
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000727920
<NAME> Sep Acct. No. 13 (RIA)
<SERIES>
<NUMBER> 113
<NAME> The Bond Fund
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000727920
<NAME> Sep Acct. No. 10 (RIA)
<SERIES>
<NUMBER> 110
<NAME> The Balanced Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 338,220,064
<INVESTMENTS-AT-VALUE> 372,345,555
<RECEIVABLES> 4,527,978
<ASSETS-OTHER> 256,781
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 377,130,314
<PAYABLE-FOR-SECURITIES> 1,048,475
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,897,689
<TOTAL-LIABILITIES> 2,946,164
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<NET-ASSETS> 374,184,150
<DIVIDEND-INCOME> 3,014,441
<INTEREST-INCOME> 11,113,819
<OTHER-INCOME> 0
<EXPENSES-NET> 5,349,200
<NET-INVESTMENT-INCOME> 8,779,060
<REALIZED-GAINS-CURRENT> 16,986,767
<APPREC-INCREASE-CURRENT> 42,304,150
<NET-CHANGE-FROM-OPS> 68,069,977
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (20,079,544)
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000727920
<NAME> Sep Acct. No. 4 (RIA)
<SERIES>
<NUMBER> 104
<NAME> The Common Stock Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1,831,087,485
<INVESTMENTS-AT-VALUE> 2,121,951,694
<RECEIVABLES> 17,234,507
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<OTHER-ITEMS-ASSETS> 0
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<TOTAL-LIABILITIES> 17,347,620
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<DIVIDEND-INCOME> 19,610,344
<INTEREST-INCOME> (852,218)
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<TABLE> <S> <C>
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<CIK> 0000727920
<NAME> Sep Acct. No. 3 (RIA)
<SERIES>
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<NAME> The Aggressive Stock Fund
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<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
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