SUPPLEMENT TO
EQUITABLE ACCUMULATOR(SM)
(IRA, NQ, AND QP)
PROSPECTUS DATED MAY 1, 1998, AND
TAX SHELTERED ANNUITY SUPPLEMENT DATED JUNE 18, 1998
Combination Variable and Fixed Deferred Annuity Certificates
Issued By
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus supplement (SUPPLEMENT) changes certain information contained in
the Profile and Prospectus dated May 1, 1998, and the Tax Sheltered Annuity
prospectus supplement (TSA SUPPLEMENT) dated June 18, 1998. Capitalized terms
have the same meaning as in the Prospectus and TSA Supplement.
Effective January 4, 1999, the interest rate credited under the Guaranteed
Minimum Income Benefit benefit base and the Guaranteed Minimum Death Benefit
will be reduced to 5% (3% for amounts in the Alliance Money Market Fund and the
Guarantee Periods). The guaranteed minimum annuity purchase factors used in
calculating the Guaranteed Minimum Income Benefit will be based on interest at
2.5% for all years.
For applications received at our Processing Office on or before December 31,
1998, with funds received by December 31, 1998, the benefits as described in the
Prospectus will apply. For applications where funds are to be received under
1035 Exchanges and direct custodian-to-custodian IRA or TSA transfers, if all
paperwork is received at our Processing Office on or before December 31, 1998,
with funds received by February 26, 1999, the benefits described in the
Prospectus will also apply. For all applications received at our Processing
Office after December 31, 1998, the benefits as described in this Supplement
will apply.
THE FOLLOWING CHANGES APPLY TO THE PROFILE:
IN THE TABLE UNDER "EXPENSES" IN ITEM 5, PLEASE NOTE THAT THE EXPENSE NUMBERS
UNDER THE COLUMN HEADING "10 YEARS" WILL BE SLIGHTLY LOWER THAN THE NUMBERS
SHOWN DUE TO THE REDUCTION IN THE INTEREST RATE CREDITED UNDER THE GUARANTEED
MINIMUM INCOME BENEFIT BENEFIT BASE.
IN THE SECOND PARAGRAPH OF ITEM 9 "DEATH BENEFIT," "5% ROLL UP TO AGE 80"
REPLACES "6% ROLL UP TO AGE 80."
THE FOLLOWING REPLACES THE THIRD PARAGRAPH IN ITEM 9 "DEATH BENEFIT":
5% Roll Up to Age 80 (Not available in New York) -- We add interest to the
initial amount at 5% (3% for amounts in the Alliance Money Market Fund and
Guaranteed Fixed Interest Accounts) through the annuitant's age 80 (or at the
annuitant's death, if earlier). The 5% interest rate will still apply for
amounts in the Alliance Money Market Fund under the Special Dollar Cost
Averaging program discussed in item 10 "OTHER INFORMATION."
IN ITEM 10 "OTHER INFORMATION" UNDER "BASEBUILDER(R) BENEFITS" -- "DEATH
BENEFIT," "5% ROLL UP TO AGE 80" REPLACES "6% ROLL UP TO AGE 80."
- --------------------------------------------------------------------------------
Copyright 1998 The Equitable Life Assurance Society of the United States,
New York, New York 10104.
All rights reserved. Accumulator is a service mark
and baseBUILDER is a registered service mark of
The Equitable Life Assurance Society of the United States.
SUPPLEMENT DATED NOVEMBER 30, 1998
PROS 1A SUPP3 (11/98)
<PAGE>
THE FOLLOWING CHANGES APPLY TO THE PROSPECTUS AND TSA SUPPLEMENT:
IN THE TABLE UNDER THE HEADING "EXAMPLES" ON PAGE 9 OF THE PROSPECTUS, PLEASE
NOTE THAT OTHER THAN FOR SURRENDER IN THE FIRST YEAR WHEN THE EXPENSE NUMBERS
WILL BE THE SAME, THE NUMBERS WILL BE SLIGHTLY LOWER THAN THE NUMBERS SHOWN DUE
TO THE CHANGE IN THE INTEREST RATE CREDITED UNDER THE GUARANTEED MINIMUM INCOME
BENEFIT BENEFIT BASE.
THE FOLLOWING REPLACES THE FIRST PARAGRAPH UNDER THE HEADING "BASEBUILDER
BENEFITS" ON PAGE 25 OF THE PROSPECTUS:
The baseBUILDER option provides guaranteed benefits in the form of a Combined
Guaranteed Minimum Income Benefit and Guaranteed Minimum Death Benefit. The
combined benefit is available for Annuitant issue ages 20 through 75 and is
subject to an additional charge (see "baseBUILDER Benefits Charge" in Part 6 of
the Prospectus). baseBUILDER provides a degree of protection for you while the
Annuitant lives (Income Benefit), as well as for the beneficiary should the
Annuitant die. As part of baseBUILDER you will have a choice of two Guaranteed
Minimum Death Benefit options for Annuitant issue ages 20 through 75: (i) a 5%
Roll Up to Age 80 or (ii) an Annual Ratchet to Age 80. The Guaranteed Minimum
Death Benefit choices are still provided under the Certificate even if you do
not elect baseBUILDER. The two choices are also provided for Annuitant issue
ages 0 through 19 under NQ Certificates and for Annuitant issue ages 76 through
79. baseBUILDER is not currently available in New York.
THE FOLLOWING REPLACES THE THIRD PARAGRAPH AND THE CHART FOLLOWING THE PARAGRAPH
UNDER THE HEADING "GUARANTEED MINIMUM INCOME BENEFIT" ON PAGE 25 OF THE
PROSPECTUS:
Illustrated below are Guaranteed Minimum Income Benefit amounts per $100,000 of
initial contribution, for a male Annuitant age 60 (at issue) on Contract Date
anniversaries as indicated below, assuming no subsequent contributions,
withdrawals, or loans under TSA Certificates, and assuming there were no
allocations to the Alliance Money Market Fund or the Guaranteed Period Account.
---------------------------------------------------------------
Guaranteed Minimum
Income Benefit -- Annual Income
Contract Date Payable for Life with
Anniversary at Exercise 10 Year Period Certain
---------------------------------------------------------------
7 $ 8,315
10 10,341
15 14,924
---------------------------------------------------------------
THE FOLLOWING REPLACES THE FIRST THREE PARAGRAPHS UNDER THE SUBHEADING
"GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 27 OF THE PROSPECTUS AND THE SECOND
PARAGRAPH UNDER THE SUBHEADING "GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 3 OF
THE TSA SUPPLEMENT:
Applicable for Annuitant Issue Ages 0 through 79 under NQ Certificates; 20
through 78 under Traditional IRA, Roth IRA and TSA Certificates; and 20 through
70 under QP Certificates
You elect either the "5% Roll Up to Age 80" or the "Annual Ratchet to Age 80"
Guaranteed Minimum Death Benefit when you apply for a Certificate. Once elected,
the benefit may not be changed.
2
<PAGE>
5% Roll Up to Age 80 -- On the Contract Date, the Guaranteed Minimum Death
Benefit is equal to the initial contribution. Thereafter, the Guaranteed Minimum
Death Benefit is credited with interest at 5% (3% for amounts in the Alliance
Money Market Fund and the Guarantee Periods) on each Contract Date anniversary
(compounded annually) through the Annuitant's age 80 (or at the Annuitant's
death, if earlier), and 0% thereafter. An interest rate of 5% will apply for
amounts in the Alliance Money Market Fund under the Special Dollar Cost
Averaging program. Under TSA Certificates, while a loan is outstanding, the
amount in the loan reserve account will be credited with interest at 3%.
On the date that a subsequent contribution is applied, your current Guaranteed
Minimum Death Benefit will increase by the dollar amount of the subsequent
contribution. On the date that a withdrawal is made, your Guaranteed Minimum
Death Benefit will be adjusted for the withdrawal. See "How Withdrawals Affect
Your Guaranteed Minimum Income Benefit and Guaranteed Minimum Death Benefit"
below.
The 5% Roll Up to Age 80 Guaranteed Minimum Death Benefit is not available in
New York.
THE FOLLOWING REPLACES THE INFORMATION UNDER THE HEADING "HOW WITHDRAWALS AFFECT
YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT" ON
PAGE 32 OF THE PROSPECTUS:
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
Guaranteed Minimum Income Benefit benefit base -- Your current Guaranteed
Minimum Income Benefit benefit base (described below) will be reduced on a
dollar-for-dollar basis as long as the sum of your withdrawals in a Contract
Year is 5% or less of the beginning of Contract Year Guaranteed Minimum Death
Benefit. Once you take a withdrawal that causes the sum of your withdrawals in a
Contract Year to exceed 5% of the beginning of Contract Year Guaranteed Minimum
Death Benefit, that withdrawal and any subsequent withdrawals in that same
Contract Year will reduce your current Guaranteed Minimum Income Benefit benefit
base on a pro rata basis.
5% Roll Up to Age 80 -- If you elect the 5% Roll Up to Age 80 Guaranteed
Minimum Death Benefit, your current Guaranteed Minimum Death Benefit will be
reduced on a dollar-for-dollar basis as long as the sum of your withdrawals in a
Contract Year is 5% or less of the beginning of Contract Year Guaranteed Minimum
Death Benefit. Once you take a withdrawal that causes the sum of your
withdrawals in a Contract Year to exceed 5% of the beginning of Contract Year
Guaranteed Minimum Death Benefit, that withdrawal and any subsequent withdrawals
in that same Contract Year will reduce your current Guaranteed Minimum Death
Benefit on a pro rata basis.
Annual Ratchet to Age 80 -- If you elect the Annual Ratchet to Age 80
Guaranteed Minimum Death Benefit, each withdrawal will always reduce your
current Guaranteed Minimum Death Benefit on a pro rata basis.
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of the Annuity Account Value (as of the
Transaction Date) that is being withdrawn and we reduce your current benefit by
that same percentage. For example, if your Annuity Account Value is $30,000 and
you withdraw $12,000, you have withdrawn 40% ($12,000/ $30,000) of your Annuity
Account Value. If your Guaranteed Minimum Death Benefit was $40,000 prior to the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new
Guaranteed Minimum Death Benefit after the withdrawal would be $24,000 ($40,000
- - $16,000).
3
<PAGE>
The timing of your withdrawals and whether they exceed the 5% threshold
described above can have a significant impact on your Guaranteed Minimum Income
Benefit or Guaranteed Minimum Death Benefit.
THE FOLLOWING REPLACES THE INFORMATION UNDER THE SUBHEADING "GUARANTEED MINIMUM
INCOME BENEFIT BENEFIT BASE" ON PAGE 32 OF THE PROSPECTUS AND THE PARAGRAPH
UNDER THE SUBHEADING "GUARANTEED MINIMUM INCOME BENEFIT" ON PAGE 4 OF THE TSA
SUPPLEMENT:
On the Contract Date, the Guaranteed Minimum Income Benefit benefit base is
equal to the initial contribution. Thereafter, the Guaranteed Minimum Income
Benefit benefit base is credited with interest at 5% (3% for amounts in the
Alliance Money Market Fund and the Guarantee Periods) on each Contract Date
anniversary (compounded annually) through the Annuitant's age 80, and 0%
thereafter. An interest rate of 5% will apply for amounts in the Alliance Money
Market Fund under the Special Dollar Cost Averaging program. Under TSA
Certificates, while a loan is outstanding, the amount in the loan reserve
account will be credited with interest at 3%.
On the date that a subsequent contribution is applied, your current Guaranteed
Minimum Income Benefit benefit base will increase by the dollar amount of the
subsequent contribution. On the date that a withdrawal is made, your Guaranteed
Minimum Income Benefit benefit base will be reduced by (i) the dollar amount of
the withdrawal or (ii) the percentage of the Annuity Account Value being
withdrawn, as explained above. The Guaranteed Minimum Income Benefit benefit
base will also be reduced by any withdrawal charge remaining on the Transaction
Date that you exercise your Guaranteed Minimum Income Benefit.
Your Guaranteed Minimum Income Benefit benefit base is applied to guaranteed
minimum annuity purchase factors to determine the Guaranteed Minimum Income
Benefit. The guaranteed minimum annuity purchase factors are based on (i)
interest at 2.5%, and (ii) mortality tables that assume increasing longevity.
These interest and mortality factors are generally more conservative than the
basis underlying current annuity purchase factors, which means that they would
produce less periodic income for an equal amount applied.
Your Guaranteed Minimum Income Benefit benefit base does not create an Annuity
Account Value or a Cash Value and is used solely for purposes of calculating
your Guaranteed Minimum Income Benefit.
4
<PAGE>
THE FOLLOWING REPLACES APPENDIX III ON PAGE 60 OF THE PROSPECTUS:
APPENDIX III: GUARANTEED MINIMUM DEATH BENEFIT EXAMPLE
- --------------------------------------------------------------------------------
Under the Certificates the death benefit is equal to the Annuity Account Value
or, if greater, the Guaranteed Minimum Death Benefit (see "Guaranteed Minimum
Death Benefit" on page 2 of this Supplement and on page 27 of the Prospectus).
The following is an example illustrating the calculation of the Guaranteed
Minimum Death Benefit. Assuming $100,000 is allocated to the Investment Funds
(with no allocation to the Alliance Money Market Fund or the Guarantee Periods),
no subsequent contributions, no transfers, no withdrawals, and no loans under a
TSA Certificate, the Guaranteed Minimum Death Benefit for an Annuitant age 45
would be calculated as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
End of 5% Roll Up to Age 80 Annual Ratchet to Age 80
Contract Annuity Guaranteed Minimum Guaranteed Minimum
Year Account Value Death Benefit Death Benefit
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 $105,000 $105,000(1) $105,000(3)
2 $115,500 $110,250(2) $115,500(3)
3 $132,825 $115,763(2) $132,825(3)
4 $106,260 $121,551(1) $132,825(4)
5 $116,886 $127,628(1) $132,825(4)
6 $140,263 $134,010(2) $140,263(3)
7 $140,263 $140,710(1) $140,263(4)
--------------------------------------------------------------------------------------------------------------------
</TABLE>
The Annuity Account Values for Contract Years 1 through 7 are determined based
on hypothetical rates of return of 5.00%, 10.00%, 15.00%, (20.00)%, 10.00%,
20.00% and 0.00%, respectively.
5% ROLL UP TO AGE 80
(1) At the end of Contract Years 1, 4, and 5, and again at the end of Contract
Year 7, the death benefit will be equal to the Guaranteed Minimum Death
Benefit.
(2) At the end of Contract Years 2 and 3, and again at the end of Contract Year
6, the death benefit will be equal to the Annuity Account Value since it is
higher than the current Guaranteed Minimum Death Benefit.
ANNUAL RATCHET TO AGE 80
(3) At the end of Contract Years 1, 2, and 3, and again at the end of Contract
Year 6, the Guaranteed Minimum Death Benefit is equal to the current
Annuity Account Value.
(4) At the end of Contract Years 4, 5, and 7, the Guaranteed Minimum Death
Benefit is equal to the Guaranteed Minimum Death Benefit at the end of the
prior year since it is equal to or higher than the current Annuity Account
Value.
5
<PAGE>
SUPPLEMENT TO
EQUITABLE ACCUMULATOR(SM)
(IRA, NQ AND QP)
PROSPECTUS DATED MAY 1, 1998 AND
TAX SHELTERED ANNUITY SUPPLEMENT DATED JUNE 18, 1998
COMBINATION VARIABLE AND FIXED DEFERRED ANNUITY CERTIFICATES
Issued By:
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus supplement (SUPPLEMENT) changes certain information in the
Equitable Accumulator (IRA, NQ and QP) prospectus dated May 1, 1998, and the Tax
Sheltered Annuity prospectus supplement dated June 18, 1998 (TSA SUPPLEMENT).
This Supplement describes the baseBUILDER(R) Combined Guaranteed Minimum Income
Benefit and Guaranteed Minimum Death Benefit offered to Annuitant issue ages 76
through 83. Capitalized terms in this supplement have the same meaning as in the
Prospectus and TSA Supplement.
The versions of the Combined Guaranteed Minimum Income Benefit and Guaranteed
Minimum Death Benefit discussed on page 25 of the prospectus under "baseBUILDER
Benefits" and pages 3 and 4 of the TSA Supplement are not available for
Annuitant issue ages 76 through 83. The combined benefit available for these
issue ages was offered under prospectus supplements dated May 1, 1998 and June
18, 1998 (PRIOR SUPPLEMENTS).
Effective January 4, 1999, the interest rate credited under the Guaranteed
Minimum Income Benefit benefit base and the Guaranteed Minimum Death Benefit
will be reduced to 3%. The guaranteed minimum annuity purchase factors used in
calculating the Guaranteed Minimum Income Benefit will be based on interest at
2.5% for all years.
For applications received at our Processing Office on or before December 31,
1998, with funds received by December 31, 1998, the benefits as described in the
Prior Supplements will apply. For applications where funds are to be received
under 1035 Exchanges and direct custodian-to-custodian IRA or TSA transfers, if
all paperwork is received at our Processing Office on or before December 31,
1998, with funds received by February 26, 1999, the benefit described in the
Prior Supplements will also apply. For all applications received at our
Processing Office after December 31, 1998, the benefits as described in this
Supplement will apply.
The charge for the benefit described in this Supplement is 0.30% of the
Guaranteed Minimum Income Benefit benefit base in effect on a Processing Date.
THE EXERCISE DATES AND PERIOD CERTAIN FOR THE GUARANTEED MINIMUM INCOME BENEFIT
APPLICABLE TO THE COMBINED BENEFIT IS AS FOLLOWS:
The Guaranteed Minimum Income Benefit may be exercised only within 30 days
following the 7th or later Contract Date anniversary, but in no event later
than the Annuitant's age 90.
The period certain will be 90 less the Annuitant's age at exercise.
- --------------------------------------------------------------------------------
Copyright 1998 The Equitable Life Assurance Society of the United
States, New York, New York 10104.
All rights reserved. Accumulator is a service mark
and baseBUILDER is a registered service mark of
The Equitable Life Assurance Society of the United States.
SUPPLEMENT DATED NOVEMBER 30, 1998
PROS 1A SUPP4 (11/98)
<PAGE>
THE GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE TO THE COMBINED BENEFIT IS AS
FOLLOWS:
3% Roll Up to Age 85 - On the Contract Date, the Guaranteed Minimum Death
Benefit is equal to the initial contribution. Thereafter, the Guaranteed
Minimum Death Benefit is credited with interest at 3% on each Contract Date
anniversary (compounded annually) through the Annuitant's age 85 (or at the
Annuitant's death, if earlier), and 0% thereafter.
On the date that a subsequent contribution is applied, your current
Guaranteed Minimum Death Benefit will increase by the dollar amount of the
subsequent contribution. On the date that a withdrawal is made, your
Guaranteed Minimum Death Benefit will be adjusted for the withdrawal.
THE FOLLOWING REPLACES THE THIRD PARAGRAPH AND THE CHART FOLLOWING THE PARAGRAPH
UNDER THE HEADING "GUARANTEED MINIMUM INCOME BENEFIT" ON PAGE 25 OF THE
PROSPECTUS:
Illustrated below are Guaranteed Minimum Income Benefit amounts per $100,000 of
initial contribution, for a male Annuitant age 76 (at issue) on Contract Date
anniversaries as indicated below, assuming no subsequent contributions,
withdrawals, or loans under TSA Certificates.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Contract Date Form of Guaranteed Minimum Income
Anniversary at Exercise Annuity Benefit -- Annual Income
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
7 Life with 7 Year Period Certain $ 11,647.84
14 Life only 21,587.70
------------------------------------------------------------------------------------------------------------
</TABLE>
THE FOLLOWING REPLACES THE INFORMATION UNDER THE HEADING "HOW WITHDRAWALS AFFECT
YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT" ON
PAGE 32 OF THE PROSPECTUS:
Withdrawals will reduce your guaranteed benefits on either a
dollar-for-dollar basis or on a pro rata basis as explained below:
Your current Guaranteed Minimum Income Benefit benefit base (described
below) and your current Guaranteed Minimum Death Benefit will be reduced on
a dollar-for-dollar basis as long as the sum of your withdrawals in a
Contract Year is 3% or less of the beginning of Contract Year Guaranteed
Minimum Death Benefit. Once you take a withdrawal that causes the sum of
your withdrawals in a Contract Year to exceed 3% of the beginning of
Contract Year Guaranteed Minimum Death Benefit, that withdrawal and any
subsequent withdrawals in that same Contract Year will reduce your current
Guaranteed Minimum Income Benefit benefit base and your current Guaranteed
Minimum Death Benefit on a pro rata basis.
Reduction on a dollar-for-dollar basis means that your current benefit will
be reduced by the dollar amount of the withdrawal. Reduction on a pro rata
basis means that we calculate the percentage of the Annuity Account Value
(as of the Transaction Date) that is being withdrawn and we reduce your
current benefit by that same percentage. For example, if your Annuity
Account Value is $30,000 and you withdraw $12,000, you have withdrawn 40%
($12,000/ $30,000) of your Annuity Account Value. If your Guaranteed
Minimum Death Benefit was $40,000 prior to the withdrawal, it would be
reduced by $16,000 ($40,000 x .40) and your new Guaranteed Minimum Death
Benefit after the withdrawal would be $24,000 ($40,000 - $16,000).
The timing of your withdrawals and whether they exceed the 3% threshold
described above can have a significant impact on your Guaranteed Minimum
Income Benefit or Guaranteed Minimum Death Benefit.
2
<PAGE>
THE FOLLOWING REPLACES THE FIRST TWO PARAGRAPHS UNDER THE HEADING "GUARANTEED
MINIMUM INCOME BENEFIT BENEFIT BASE" ON PAGE 32 OF THE PROSPECTUS:
On the Contract Date, the Guaranteed Minimum Income Benefit benefit base is
equal to the initial contribution. Thereafter, the Guaranteed Minimum
Income Benefit benefit base is credited with interest at 3% on each
Contract Date anniversary (compounded annually) through the Annuitant's age
85, and 0% thereafter.
On the date that a subsequent contribution is applied, your current
Guaranteed Minimum Income Benefit benefit base will increase by the dollar
amount of the subsequent contribution. On the date that a withdrawal is
made, your Guaranteed Minimum Income Benefit benefit base will be reduced
by (i) the dollar amount of the withdrawal or (ii) the percentage of the
Annuity Account Value being withdrawn, as explained above. The Guaranteed
Minimum Income Benefit benefit base will also be reduced by any withdrawal
charge remaining on the Transaction Date that you exercise your Guaranteed
Minimum Income Benefit.
Your Guaranteed Minimum Income Benefit benefit base is applied to
guaranteed minimum annuity purchase factors to determine the Guaranteed
Minimum Income Benefit. The guaranteed minimum annuity purchase factors are
based on (i) interest at 2.5%, and (ii) mortality tables that assume
increasing longevity. These interest and mortality factors are generally
more conservative than the basis underlying current annuity purchase
factors, which means that they would produce less periodic income for an
equal amount applied.
3
<PAGE>
THE FOLLOWING REPLACES APPENDIX III ON PAGE 60 OF THE PROSPECTUS:
APPENDIX III: GUARANTEED MINIMUM DEATH BENEFIT EXAMPLE
- --------------------------------------------------------------------------------
Under the Certificates the death benefit is equal to the Annuity Account Value
or, if greater, the Guaranteed Minimum Death Benefit (see "Guaranteed Minimum
Death Benefit" on page 2 of this Supplement and on page 27 of the Prospectus).
The following is an example illustrating the calculation of the Guaranteed
Minimum Death Benefit. Assuming $100,000 is allocated to the Investment Funds,
no subsequent contributions, no withdrawals, and no loans under a TSA
Certificate, the Guaranteed Minimum Death Benefit for an Annuitant age 76 would
be calculated as follows:
- -------------------------------------------------------------------------------
End of 3% Roll Up to Age 85
Contract Annuity Guaranteed Minimum
Year Account Value Death Benefit
- -------------------------------------------------------------------------------
1 $105,000 $103,000
2 $115,500 $106,090
3 $132,825 $109,273
4 $106,260 $112,551
5 $116,886 $115,927
6 $140,263 $119,405
7 $140,263 $122,987
- -------------------------------------------------------------------------------
The Annuity Account Values for Contract Years 1 through 7 are determined based
on hypothetical rates of return of 5.00%, 10.00%, 15.00%, (20.00)%, 10.00%,
20.00% and 0.00%, respectively.
For Contract Years 1 through 3, and 5 through 7 the death benefit is equal to
the Annuity Account Value, in Contract Year 4 the death benefit is equal to the
Guaranteed Minimum Death Benefit.
4
<PAGE>
SUPPLEMENT TO
EQUITABLE ACCUMULATOR(SM)
(IRA, NQ, AND QP)
PROSPECTUS DATED MAY 1, 1998, AND
TAX SHELTERED ANNUITY SUPPLEMENT DATED JUNE 18, 1998
Combination Variable and Fixed Deferred Annuity Certificates
Issued By
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus supplement (SUPPLEMENT) changes certain information contained in
the Profile and Prospectus dated May 1, 1998, and the Tax Sheltered Annuity
prospectus supplement (TSA SUPPLEMENT) dated June 18, 1998. Capitalized terms
have the same meaning as in the Prospectus and TSA Supplement.
Effective January 4, 1999, the interest rate credited under the Guaranteed
Minimum Income Benefit benefit base and the Guaranteed Minimum Death Benefit
will be reduced to 5% (3% for amounts in the Alliance Money Market Fund and the
Guarantee Periods). The guaranteed minimum annuity purchase factors used in
calculating the Guaranteed Minimum Income Benefit will be based on interest at
2.5% for all years.
For applications received at our Processing Office on or before December 31,
1998, with funds received by December 31, 1998, the benefits as described in the
Prospectus will apply. For applications where funds are to be received under
1035 Exchanges and direct custodian-to-custodian IRA or TSA transfers, if all
paperwork is received at our Processing Office on or before December 31, 1998,
with funds received by February 26, 1999, the benefits described in the
Prospectus will also apply. For all applications received at our Processing
Office after December 31, 1998, the benefits as described in this Supplement
will apply.
THE FOLLOWING CHANGES APPLY TO THE PROFILE:
IN THE TABLE UNDER "EXPENSES" IN ITEM 5, PLEASE NOTE THAT THE EXPENSE NUMBERS
UNDER THE COLUMN HEADING "10 YEARS" WILL BE SLIGHTLY LOWER THAN THE NUMBERS
SHOWN DUE TO THE REDUCTION IN THE INTEREST RATE CREDITED UNDER THE GUARANTEED
MINIMUM INCOME BENEFIT BENEFIT BASE.
IN THE SECOND PARAGRAPH OF ITEM 9 "DEATH BENEFIT," "5% ROLL UP TO AGE 80"
REPLACES "6% ROLL UP TO AGE 80."
THE FOLLOWING REPLACES THE THIRD PARAGRAPH IN ITEM 9 "DEATH BENEFIT":
5% Roll Up to Age 80 (Not available in New York) -- We add interest to the
initial amount at 5% (3% for amounts in the Alliance Money Market Fund and
Guaranteed Fixed Interest Accounts) through the annuitant's age 80 (or at the
annuitant's death, if earlier). The 5% interest rate will still apply for
amounts in the Alliance Money Market Fund under the Special Dollar Cost
Averaging program discussed in item 10 "OTHER INFORMATION."
IN ITEM 10 "OTHER INFORMATION" UNDER "BASEBUILDER(R) BENEFITS" -- "DEATH
BENEFIT," "5% ROLL UP TO AGE 80" REPLACES "6% ROLL UP TO AGE 80."
- --------------------------------------------------------------------------------
Copyright 1998 The Equitable Life Assurance Society of the United States,
New York, New York 10104.
All rights reserved. Accumulator is a service mark
and baseBUILDER is a registered service mark of
The Equitable Life Assurance Society of the United States.
SUPPLEMENT DATED NOVEMBER 30, 1998
PROS 1AML SUPP3 (11/98)
<PAGE>
THE FOLLOWING CHANGES APPLY TO THE PROSPECTUS AND TSA SUPPLEMENT:
IN THE TABLE UNDER THE HEADING "EXAMPLES" ON PAGE 9 OF THE PROSPECTUS, PLEASE
NOTE THAT OTHER THAN FOR SURRENDER IN THE FIRST YEAR WHEN THE EXPENSE NUMBERS
WILL BE THE SAME, THE NUMBERS WILL BE SLIGHTLY LOWER THAN THE NUMBERS SHOWN DUE
TO THE CHANGE IN THE INTEREST RATE CREDITED UNDER THE GUARANTEED MINIMUM INCOME
BENEFIT BENEFIT BASE.
THE FOLLOWING REPLACES THE FIRST PARAGRAPH UNDER THE HEADING "BASEBUILDER
BENEFITS" ON PAGE 23 OF THE PROSPECTUS:
The baseBUILDER option provides guaranteed benefits in the form of a Combined
Guaranteed Minimum Income Benefit and Guaranteed Minimum Death Benefit. The
combined benefit is available for Annuitant issue ages 20 through 75 and is
subject to an additional charge (see "baseBUILDER Benefits Charge" in Part 5 of
the Prospectus). baseBUILDER provides a degree of protection for you while the
Annuitant lives (Income Benefit), as well as for the beneficiary should the
Annuitant die. As part of baseBUILDER you will have a choice of two Guaranteed
Minimum Death Benefit options for Annuitant issue ages 20 through 75: (i) a 5%
Roll Up to Age 80 or (ii) an Annual Ratchet to Age 80. The Guaranteed Minimum
Death Benefit choices are still provided under the Certificate even if you do
not elect baseBUILDER. The two choices are also provided for Annuitant issue
ages 0 through 19 under NQ Certificates and for Annuitant issue ages 76 through
79. baseBUILDER is not currently available in New York.
THE FOLLOWING REPLACES THE THIRD PARAGRAPH AND THE CHART FOLLOWING THE PARAGRAPH
UNDER THE HEADING "GUARANTEED MINIMUM INCOME BENEFIT" ON PAGE 24 OF THE
PROSPECTUS:
Illustrated below are Guaranteed Minimum Income Benefit amounts per $100,000 of
initial contribution, for a male Annuitant age 60 (at issue) on Contract Date
anniversaries as indicated below, assuming no subsequent contributions,
withdrawals, or loans under TSA Certificates, and assuming there were no
allocations to the Alliance Money Market Fund or the Guaranteed Period Account.
---------------------------------------------------------------
Guaranteed Minimum
Income Benefit -- Annual Income
Contract Date Payable for Life with
Anniversary at Exercise 10 Year Period Certain
---------------------------------------------------------------
7 $ 8,315
10 10,341
15 14,924
---------------------------------------------------------------
THE FOLLOWING REPLACES THE FIRST THREE PARAGRAPHS UNDER THE SUBHEADING
"GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 25 OF THE PROSPECTUS AND THE SECOND
PARAGRAPH UNDER THE SUBHEADING "GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 3 OF
THE TSA SUPPLEMENT:
Applicable for Annuitant Issue Ages 0 through 79 under NQ Certificates; 20
through 78 under Traditional IRA, Roth IRA and TSA Certificates; and 20 through
70 under QP Certificates
You elect either the "5% Roll Up to Age 80" or the "Annual Ratchet to Age 80"
Guaranteed Minimum Death Benefit when you apply for a Certificate. Once elected,
the benefit may not be changed.
2
<PAGE>
5% Roll Up to Age 80 -- On the Contract Date, the Guaranteed Minimum Death
Benefit is equal to the initial contribution. Thereafter, the Guaranteed Minimum
Death Benefit is credited with interest at 5% (3% for amounts in the Alliance
Money Market Fund and the Guarantee Periods) on each Contract Date anniversary
(compounded annually) through the Annuitant's age 80 (or at the Annuitant's
death, if earlier), and 0% thereafter. An interest rate of 5% will apply for
amounts in the Alliance Money Market Fund under the Special Dollar Cost
Averaging program. Under TSA Certificates, while a loan is outstanding, the
amount in the loan reserve account will be credited with interest at 3%.
On the date that a subsequent contribution is applied, your current Guaranteed
Minimum Death Benefit will increase by the dollar amount of the subsequent
contribution. On the date that a withdrawal is made, your Guaranteed Minimum
Death Benefit will be adjusted for the withdrawal. See "How Withdrawals Affect
Your Guaranteed Minimum Income Benefit and Guaranteed Minimum Death Benefit"
below.
The 5% Roll Up to Age 80 Guaranteed Minimum Death Benefit is not available in
New York.
THE FOLLOWING REPLACES THE INFORMATION UNDER THE HEADING "HOW WITHDRAWALS AFFECT
YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT" ON
PAGE 31 OF THE PROSPECTUS:
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
Guaranteed Minimum Income Benefit benefit base -- Your current Guaranteed
Minimum Income Benefit benefit base (described below) will be reduced on a
dollar-for-dollar basis as long as the sum of your withdrawals in a Contract
Year is 5% or less of the beginning of Contract Year Guaranteed Minimum Death
Benefit. Once you take a withdrawal that causes the sum of your withdrawals in a
Contract Year to exceed 5% of the beginning of Contract Year Guaranteed Minimum
Death Benefit, that withdrawal and any subsequent withdrawals in that same
Contract Year will reduce your current Guaranteed Minimum Income Benefit benefit
base on a pro rata basis.
5% Roll Up to Age 80 -- If you elect the 5% Roll Up to Age 80 Guaranteed
Minimum Death Benefit, your current Guaranteed Minimum Death Benefit will be
reduced on a dollar-for-dollar basis as long as the sum of your withdrawals in a
Contract Year is 5% or less of the beginning of Contract Year Guaranteed Minimum
Death Benefit. Once you take a withdrawal that causes the sum of your
withdrawals in a Contract Year to exceed 5% of the beginning of Contract Year
Guaranteed Minimum Death Benefit, that withdrawal and any subsequent withdrawals
in that same Contract Year will reduce your current Guaranteed Minimum Death
Benefit on a pro rata basis.
Annual Ratchet to Age 80 -- If you elect the Annual Ratchet to Age 80
Guaranteed Minimum Death Benefit, each withdrawal will always reduce your
current Guaranteed Minimum Death Benefit on a pro rata basis.
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of the Annuity Account Value (as of the
Transaction Date) that is being withdrawn and we reduce your current benefit by
that same percentage. For example, if your Annuity Account Value is $30,000 and
you withdraw $12,000, you have withdrawn 40% ($12,000/ $30,000) of your Annuity
Account Value. If your Guaranteed Minimum Death Benefit was $40,000 prior to the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new
Guaranteed Minimum Death Benefit after the withdrawal would be $24,000 ($40,000
- - $16,000).
3
<PAGE>
The timing of your withdrawals and whether they exceed the 5% threshold
described above can have a significant impact on your Guaranteed Minimum Income
Benefit or Guaranteed Minimum Death Benefit.
THE FOLLOWING REPLACES THE INFORMATION UNDER THE SUBHEADING "GUARANTEED MINIMUM
INCOME BENEFIT BENEFIT BASE" ON PAGE 31 OF THE PROSPECTUS AND THE PARAGRAPH
UNDER THE SUBHEADING "GUARANTEED MINIMUM INCOME BENEFIT ON PAGE 4 OF THE TSA
SUPPLEMENT:
On the Contract Date, the Guaranteed Minimum Income Benefit benefit base is
equal to the initial contribution. Thereafter, the Guaranteed Minimum Income
Benefit benefit base is credited with interest at 5% (3% for amounts in the
Alliance Money Market Fund and the Guarantee Periods) on each Contract Date
anniversary (compounded annually) through the Annuitant's age 80, and 0%
thereafter. An interest rate of 5% will apply for amounts in the Alliance Money
Market Fund under the Special Dollar Cost Averaging program. Under TSA
Certificates, while a loan is outstanding, the amount in the loan reserve
account will be credited with interest at 3%.
On the date that a subsequent contribution is applied, your current Guaranteed
Minimum Income Benefit benefit base will increase by the dollar amount of the
subsequent contribution. On the date that a withdrawal is made, your Guaranteed
Minimum Income Benefit benefit base will be reduced by (i) the dollar amount of
the withdrawal or (ii) the percentage of the Annuity Account Value being
withdrawn, as explained above. The Guaranteed Minimum Income Benefit benefit
base will also be reduced by any withdrawal charge remaining on the Transaction
Date that you exercise your Guaranteed Minimum Income Benefit.
Your Guaranteed Minimum Income Benefit benefit base is applied to guaranteed
minimum annuity purchase factors to determine the Guaranteed Minimum Income
Benefit. The guaranteed minimum annuity purchase factors are based on (i)
interest at 2.5%, and (ii) mortality tables that assume increasing longevity.
These interest and mortality factors are generally more conservative than the
basis underlying current annuity purchase factors, which means that they would
produce less periodic income for an equal amount applied.
Your Guaranteed Minimum Income Benefit benefit base does not create an Annuity
Account Value or a Cash Value and is used solely for purposes of calculating
your Guaranteed Minimum Income Benefit.
4
<PAGE>
THE FOLLOWING REPLACES APPENDIX III ON PAGE 59 OF THE PROSPECTUS:
APPENDIX III: GUARANTEED MINIMUM DEATH BENEFIT EXAMPLE
- --------------------------------------------------------------------------------
Under the Certificates the death benefit is equal to the Annuity Account Value
or, if greater, the Guaranteed Minimum Death Benefit (see "Guaranteed Minimum
Death Benefit" on page 2 of this Supplement and on page 25 of the Prospectus).
The following is an example illustrating the calculation of the Guaranteed
Minimum Death Benefit. Assuming $100,000 is allocated to the Investment Funds
(with no allocation to the Alliance Money Market Fund or the Guarantee Periods),
no subsequent contributions, no transfers, no withdrawals, and no loans under a
TSA Certificate, the Guaranteed Minimum Death Benefit for an Annuitant age 45
would be calculated as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
End of 5% Roll Up to Age 80 Annual Ratchet to Age 80
Contract Annuity Guaranteed Minimum Guaranteed Minimum
Year Account Value Death Benefit Death Benefit
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 $105,000 $105,000(1) $105,000(3)
2 $115,500 $110,250(2) $115,500(3)
3 $132,825 $115,763(2) $132,825(3)
4 $106,260 $121,551(1) $132,825(4)
5 $116,886 $127,628(1) $132,825(4)
6 $140,263 $134,010(2) $140,263(3)
7 $140,263 $140,710(1) $140,263(4)
--------------------------------------------------------------------------------------------------------------------
</TABLE>
The Annuity Account Values for Contract Years 1 through 7 are determined based
on hypothetical rates of return of 5.00%, 10.00%, 15.00%, (20.00)%, 10.00%,
20.00% and 0.00%, respectively.
5% ROLL UP TO AGE 80
(1) At the end of Contract Years 1, 4, and 5, and again at the end of Contract
Year 7, the death benefit will be equal to the Guaranteed Minimum Death
Benefit.
(2) At the end of Contract Years 2 and 3, and again at the end of Contract Year
6, the death benefit will be equal to the Annuity Account Value since it is
higher than the current Guaranteed Minimum Death Benefit.
ANNUAL RATCHET TO AGE 80
(3) At the end of Contract Years 1, 2, and 3, and again at the end of Contract
Year 6, the Guaranteed Minimum Death Benefit is equal to the current
Annuity Account Value.
(4) At the end of Contract Years 4, 5, and 7, the Guaranteed Minimum Death
Benefit is equal to the Guaranteed Minimum Death Benefit at the end of the
prior year since it is equal to or higher than the current Annuity Account
Value.
5
<PAGE>
SUPPLEMENT TO
EQUITABLE ACCUMULATOR(SM)
(IRA, NQ AND QP)
PROSPECTUS DATED MAY 1, 1998 AND
TAX SHELTERED ANNUITY SUPPLEMENT DATED JUNE 18, 1998
COMBINATION VARIABLE AND FIXED DEFERRED ANNUITY CERTIFICATES
Issued By:
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus supplement (SUPPLEMENT) changes certain information in the
Equitable Accumulator (IRA, NQ and QP) prospectus dated May 1, 1998, and the Tax
Sheltered Annuity prospectus supplement dated June 18, 1998 (TSA SUPPLEMENT).
This Supplement describes the baseBUILDER(R) Combined Guaranteed Minimum Income
Benefit anD Guaranteed Minimum Death Benefit offered to Annuitant issue ages 76
through 83. Capitalized terms in this supplement have the same meaning as in the
Prospectus and TSA Supplement.
The versions of the Combined Guaranteed Minimum Income Benefit and Guaranteed
Minimum Death Benefit discussed on page 23 of the prospectus under "baseBUILDER
Benefits" and pages 3 and 4 of the TSA Supplement are not available for
Annuitant issue ages 76 through 83. The combined benefit available for these
issue ages was offered under prospectus supplements dated May 1, 1998 and June
18, 1998 (PRIOR SUPPLEMENTS).
Effective January 4, 1999, the interest rate credited under the Guaranteed
Minimum Income Benefit benefit base and the Guaranteed Minimum Death Benefit
will be reduced to 3%. The guaranteed minimum annuity purchase factors used in
calculating the Guaranteed Minimum Income Benefit will be based on interest at
2.5% for all years.
For applications received at our Processing Office on or before December 31,
1998, with funds received by December 31, 1998, the benefits as described in the
Prior Supplements will apply. For applications where funds are to be received
under 1035 Exchanges and direct custodian-to-custodian IRA or TSA transfers, if
all paperwork is received at our Processing Office on or before December 31,
1998, with funds received by February 26, 1999, the benefit described in the
Prior Supplements will also apply. For all applications received at our
Processing Office after December 31, 1998, the benefits as described in this
Supplement will apply.
The charge for the benefit described in this Supplement is 0.30% of the
Guaranteed Minimum Income Benefit benefit base in effect on a Processing Date.
THE EXERCISE DATES AND PERIOD CERTAIN FOR THE GUARANTEED MINIMUM INCOME BENEFIT
APPLICABLE TO THE COMBINED BENEFIT IS AS FOLLOWS:
The Guaranteed Minimum Income Benefit may be exercised only within 30 days
following the 7th or later Contract Date anniversary, but in no event later
than the Annuitant's age 90.
The period certain will be 90 less the Annuitant's age at exercise.
- --------------------------------------------------------------------------------
Copyright 1998 The Equitable Life Assurance Society of the United
States, New York, New York 10104.
All rights reserved. Accumulator is a service mark and baseBUILDER
is a registered service mark of
The Equitable Life Assurance Society of the United States.
SUPPLEMENT DATED NOVEMBER 30, 1998
PROS 1AML SUPP4 (11/98)
<PAGE>
THE GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE TO THE COMBINED BENEFIT IS AS
FOLLOWS:
3% Roll Up to Age 85 - On the Contract Date, the Guaranteed Minimum Death
Benefit is equal to the initial contribution. Thereafter, the Guaranteed
Minimum Death Benefit is credited with interest at 3% on each Contract Date
anniversary (compounded annually) through the Annuitant's age 85 (or at the
Annuitant's death, if earlier), and 0% thereafter.
On the date that a subsequent contribution is applied, your current
Guaranteed Minimum Death Benefit will increase by the dollar amount of the
subsequent contribution. On the date that a withdrawal is made, your
Guaranteed Minimum Death Benefit will be adjusted for the withdrawal.
THE FOLLOWING REPLACES THE THIRD PARAGRAPH AND THE CHART FOLLOWING THE PARAGRAPH
UNDER THE HEADING "GUARANTEED MINIMUM INCOME BENEFIT" ON PAGE 24 OF THE
PROSPECTUS:
Illustrated below are Guaranteed Minimum Income Benefit amounts per $100,000 of
initial contribution, for a male Annuitant age 76 (at issue) on Contract Date
anniversaries as indicated below, assuming no subsequent contributions,
withdrawals, or loans under TSA Certificates.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Contract Date Form of Guaranteed Minimum Income
Anniversary at Exercise Annuity Benefit -- Annual Income
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
7 Life with 7 Year Period Certain $ 11,647.84
14 Life only 21,587.70
- ------------------------------------------------------------------------------------------------------------
</TABLE>
THE FOLLOWING REPLACES THE INFORMATION UNDER THE HEADING "HOW WITHDRAWALS AFFECT
YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT" ON
PAGE 31 OF THE PROSPECTUS:
Withdrawals will reduce your guaranteed benefits on either a
dollar-for-dollar basis or on a pro rata basis as explained below:
Your current Guaranteed Minimum Income Benefit benefit base (described
below) and your current Guaranteed Minimum Death Benefit will be reduced on
a dollar-for-dollar basis as long as the sum of your withdrawals in a
Contract Year is 3% or less of the beginning of Contract Year Guaranteed
Minimum Death Benefit. Once you take a withdrawal that causes the sum of
your withdrawals in a Contract Year to exceed 3% of the beginning of
Contract Year Guaranteed Minimum Death Benefit, that withdrawal and any
subsequent withdrawals in that same Contract Year will reduce your current
Guaranteed Minimum Income Benefit benefit base and your current Guaranteed
Minimum Death Benefit on a pro rata basis.
Reduction on a dollar-for-dollar basis means that your current benefit will
be reduced by the dollar amount of the withdrawal. Reduction on a pro rata
basis means that we calculate the percentage of the Annuity Account Value
(as of the Transaction Date) that is being withdrawn and we reduce your
current benefit by that same percentage. For example, if your Annuity
Account Value is $30,000 and you withdraw $12,000, you have withdrawn 40%
($12,000/ $30,000) of your Annuity Account Value. If your Guaranteed
Minimum Death Benefit was $40,000 prior to the withdrawal, it would be
reduced by $16,000 ($40,000 x .40) and your new Guaranteed Minimum Death
Benefit after the withdrawal would be $24,000 ($40,000 - $16,000).
The timing of your withdrawals and whether they exceed the 3% threshold
described above can have a significant impact on your Guaranteed Minimum
Income Benefit or Guaranteed Minimum Death Benefit.
2
<PAGE>
THE FOLLOWING REPLACES THE FIRST TWO PARAGRAPHS UNDER THE HEADING "GUARANTEED
MINIMUM INCOME BENEFIT BENEFIT BASE" PAGE 31 OF THE PROSPECTUS:
On the Contract Date, the Guaranteed Minimum Income Benefit benefit base is
equal to the initial contribution. Thereafter, the Guaranteed Minimum
Income Benefit benefit base is credited with interest at 3% on each
Contract Date anniversary (compounded annually) through the Annuitant's age
85, and 0% thereafter.
On the date that a subsequent contribution is applied, your current
Guaranteed Minimum Income Benefit benefit base will increase by the dollar
amount of the subsequent contribution. On the date that a withdrawal is
made, your Guaranteed Minimum Income Benefit benefit base will be reduced
by (i) the dollar amount of the withdrawal or (ii) the percentage of the
Annuity Account Value being withdrawn, as explained above. The Guaranteed
Minimum Income Benefit benefit base will also be reduced by any withdrawal
charge remaining on the Transaction Date that you exercise your Guaranteed
Minimum Income Benefit.
Your Guaranteed Minimum Income Benefit benefit base is applied to
guaranteed minimum annuity purchase factors to determine the Guaranteed
Minimum Income Benefit. The guaranteed minimum annuity purchase factors are
based on (i) interest at 2.5%, and (ii) mortality tables that assume
increasing longevity. These interest and mortality factors are generally
more conservative than the basis underlying current annuity purchase
factors, which means that they would produce less periodic income for an
equal amount applied.
3
<PAGE>
THE FOLLOWING REPLACES APPENDIX III ON PAGE 59 OF THE PROSPECTUS:
APPENDIX III: GUARANTEED MINIMUM DEATH BENEFIT EXAMPLE
- --------------------------------------------------------------------------------
Under the Certificates the death benefit is equal to the Annuity Account Value
or, if greater, the Guaranteed Minimum Death Benefit (see "Guaranteed Minimum
Death Benefit" on page 2 of this Supplement and on page 25 of the Prospectus).
The following is an example illustrating the calculation of the Guaranteed
Minimum Death Benefit. Assuming $100,000 is allocated to the Investment Funds,
no subsequent contributions, no withdrawals, and no loans under a TSA
Certificate, the Guaranteed Minimum Death Benefit for an Annuitant age 76 would
be calculated as follows:
- -------------------------------------------------------------------------------
End of 3% Roll Up to Age 85
Contract Annuity Guaranteed Minimum
Year Account Value Death Benefit
- -------------------------------------------------------------------------------
1 $105,000 $103,000
2 $115,500 $106,090
3 $132,825 $109,273
4 $106,260 $112,551
5 $116,886 $115,927
6 $140,263 $119,405
7 $140,263 $122,987
- -------------------------------------------------------------------------------
The Annuity Account Values for Contract Years 1 through 7 are determined based
on hypothetical rates of return of 5.00%, 10.00%, 15.00%, (20.00)%, 10.00%,
20.00% and 0.00%, respectively.
For Contract Years 1 through 3, and 5 through 7 the death benefit is equal to
the Annuity Account Value, in Contract Year 4 the death benefit is equal to the
Guaranteed Minimum Death Benefit.
4
<PAGE>
SUPPLEMENT TO
EQUITABLE ACCUMULATOR(SM)
(IRA, NQ, AND QP)
PROSPECTUS DATED MAY 1, 1998, AND
TAX SHELTERED ANNUITY SUPPLEMENT DATED JUNE 18, 1998
Combination Variable and Fixed Deferred Annuity Certificates
Issued By
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus supplement (SUPPLEMENT) changes certain information contained in
the Profile and Prospectus dated May 1, 1998, and the Tax Sheltered Annuity
prospectus supplement (TSA SUPPLEMENT) dated June 18, 1998. Capitalized terms
have the same meaning as in the Prospectus and TSA Supplement.
Effective January 4, 1999, the interest rate credited under the Guaranteed
Minimum Income Benefit benefit base and the Guaranteed Minimum Death Benefit
will be reduced to 5% (3% for amounts in the Alliance Money Market Fund,
Alliance Intermediate Government Securities Fund, and the GIROs). The guaranteed
minimum annuity purchase factors used in calculating the Guaranteed Minimum
Income Benefit will be based on interest at 2.5% for all years.
For applications received at our Processing Office on or before December 31,
1998, with funds received by December 31, 1998, the benefits as described in the
Prospectus will apply. For applications where funds are to be received under
1035 Exchanges and direct custodian-to-custodian IRA or TSA transfers, if all
paperwork is received at our Processing Office on or before December 31, 1998,
with funds received by February 26, 1999, the benefits described in the
Prospectus will also apply. For all applications received at our Processing
Office after December 31, 1998, the benefits as described in this Supplement
will apply.
THE FOLLOWING CHANGES APPLY TO THE PROFILE:
IN THE FIRST PARAGRAPH OF ITEM 5 "EXPENSES" "5% ROLL UP TO AGE 80" REPLACES "6%
ROLL UP TO AGE 80" AND "5% ROLL UP TO AGE 70" REPLACES "6% ROLL UP TO AGE 70."
IN THE TABLE UNDER "EXPENSES" IN ITEM 5, PLEASE NOTE THAT THE EXPENSE NUMBERS
UNDER THE COLUMN HEADING "10 YEARS" WILL BE SLIGHTLY LOWER THAN THE NUMBERS
SHOWN DUE TO THE REDUCTION IN THE INTEREST RATE CREDITED UNDER THE GUARANTEED
MINIMUM INCOME BENEFIT BENEFIT BASE.
IN THE SECOND PARAGRAPH OF ITEM 9 "DEATH BENEFIT," "5% ROLL UP TO AGE 80"
REPLACES "6% ROLL UP TO AGE 80."
THE FOLLOWING REPLACES THE THIRD PARAGRAPH IN ITEM 9 "DEATH BENEFIT":
5% Roll Up to Age 80 (Not available in New York) -- We add interest to the
initial amount at 5% (3% for amounts in the Alliance Money Market Fund, Alliance
Intermediate Government Securities Fund, and GIROs) through the annuitant's age
80 (or at the annuitant's death, if earlier). The 5% interest rate will still
apply for amounts in the Alliance Money Market Fund under the Special Dollar
Cost Averaging program discussed in item 10 "OTHER INFORMATION."
IN ITEM 10 "OTHER INFORMATION" UNDER "BASEBUILDER(R) BENEFITS" -- "DEATH
BENEFIT," "5% ROLL UP TO AGE 80" REPLACES "6% ROLL UP TO AGE 80."
- --------------------------------------------------------------------------------
Copyright 1998 The Equitable Life Assurance Society of the United States,
New York, New York 10104.
All rights reserved. Accumulator is a service mark and baseBUILDER
is a registered service mark of
The Equitable Life Assurance Society of the United States.
SUPPLEMENT DATED NOVEMBER 30, 1998
PROS AGT SUPP3 (11/98)
<PAGE>
THE FOLLOWING REPLACES THE FOURTH PARAGRAPH IN ITEM 10 "OTHER INFORMATION" UNDER
"BASEBUILDER BENEFITS" -- "DEATH BENEFIT":
5% Roll Up to Age 70 -- We add interest to the initial amount at 5% (3% for
amounts in the Alliance Money Market Fund, Alliance Intermediate Government
Securities Fund, and GIROs) through the annuitant's age 70 (or at the
annuitant's death, if earlier). The 5% interest rate will still apply for
amounts in the Alliance Money Market Fund under the Special Dollar Cost
Averaging program discussed in item 10 "OTHER INFORMATION."
THE FOLLOWING CHANGES APPLY TO THE PROSPECTUS AND TSA SUPPLEMENT:
IN FOOTNOTE (4) ON PAGE 9 OF THE PROSPECTUS, "5% ROLL UP TO AGE 80" REPLACES "6%
ROLL UP TO AGE 80" AND "5% ROLL UP TO AGE 70" REPLACES "6% ROLL UP TO AGE 70."
IN THE TABLE UNDER THE HEADING "EXAMPLES" ON PAGE 11 OF THE PROSPECTUS, PLEASE
NOTE THAT OTHER THAN FOR SURRENDER IN THE FIRST YEAR WHEN THE EXPENSE NUMBERS
WILL BE THE SAME, THE NUMBERS WILL BE SLIGHTLY LOWER THAN THE NUMBERS SHOWN DUE
TO THE CHANGE IN THE INTEREST RATE CREDITED UNDER THE GUARANTEED MINIMUM INCOME
BENEFIT BENEFIT BASE.
THE FOLLOWING REPLACES THE FIRST PARAGRAPH UNDER THE HEADING "BASEBUILDER
BENEFITS" ON PAGE 28 OF THE PROSPECTUS:
The baseBUILDER option provides guaranteed benefits in the form of a Combined
Guaranteed Minimum Income Benefit and Guaranteed Minimum Death Benefit. The
combined benefit is available for Annuitant issue ages 20 through 75 and is
subject to an additional charge (see "baseBUILDER Benefits Charge" in Part 6 of
the Prospectus). baseBUILDER provides a degree of protection for you while the
Annuitant lives (Income Benefit), as well as for the beneficiary should the
Annuitant die. As part of baseBUILDER you will have a choice of two Guaranteed
Minimum Death Benefit options for Annuitant issue ages 20 through 75: (i) a 5%
Roll Up to Age 80 or (ii) an Annual Ratchet to Age 80. Under Traditional IRA
Certificates for Annuitant issue ages 20 through 60, we offer an alternative
Guaranteed Minimum Death Benefit under the baseBUILDER which is a 5% Roll Up to
Age 70. The 5% Roll Up to Age 80 and the Annual Ratchet to Age 80 Guaranteed
Minimum Death Benefit choices are still provided under the Certificate even if
you do not elect baseBUILDER. The two choices are also provided for Annuitant
issue ages 0 through 19 under NQ Certificates and for Annuitant issue ages 76
through 79. The 5% Roll Up to Age 70 is available only under baseBUILDER.
baseBUILDER is not currently available in New York.
THE FOLLOWING REPLACES THE THIRD PARAGRAPH AND THE CHART FOLLOWING THE PARAGRAPH
UNDER THE HEADING "GUARANTEED MINIMUM INCOME BENEFIT" ON PAGE 28 OF THE
PROSPECTUS:
Illustrated below are Guaranteed Minimum Income Benefit amounts per $100,000 of
initial contribution, for a male Annuitant age 60 (at issue) on Contract Date
anniversaries as indicated below, assuming no subsequent contributions,
withdrawals, or loans under TSA Certificates, and assuming there were no
allocations to the Alliance Money Market Fund, Alliance Intermediate Government
Securities Fund or the Guaranteed Period Account.
---------------------------------------------------------------
Guaranteed Minimum
Income Benefit -- Annual Income
Contract Date Payable for Life with
Anniversary at Exercise 10 Year Period Certain
---------------------------------------------------------------
7 $ 8,315
10 10,341
15 14,924
---------------------------------------------------------------
2
<PAGE>
THE FOLLOWING REPLACES THE FIRST THREE PARAGRAPHS UNDER THE SUBHEADING
"GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 30 OF THE PROSPECTUS AND THE SECOND
PARAGRAPH UNDER THE SUBHEADING "GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 4 OF
THE TSA SUPPLEMENT:
Applicable for Annuitant Issue Ages 0 through 79 under NQ Certificates; 20
through 78 under Traditional IRA, Roth IRA and TSA Certificates; and 20 through
70 under QP Certificates
You elect either the "5% Roll Up to Age 80" or the "Annual Ratchet to Age 80"
Guaranteed Minimum Death Benefit when you apply for a Certificate. Once elected,
the benefit may not be changed.
5% Roll Up to Age 80 -- On the Contract Date, the Guaranteed Minimum Death
Benefit is equal to the initial contribution. Thereafter, the Guaranteed Minimum
Death Benefit is credited with interest at 5% (3% for amounts in the Alliance
Money Market Fund, Alliance Intermediate Government Securities Fund, and GIROs)
on each Contract Date anniversary (compounded annually) through the Annuitant's
age 80 (or at the Annuitant's death, if earlier), and 0% thereafter. An interest
rate of 5% will apply for amounts in the Alliance Money Market Fund under the
Special Dollar Cost Averaging program. Under TSA Certificates, while a loan is
outstanding, the amount in the loan reserve account will be credited with
interest at 3%.
On the date that a subsequent contribution is applied, your current Guaranteed
Minimum Death Benefit will increase by the dollar amount of the subsequent
contribution. On the date that a withdrawal is made, your Guaranteed Minimum
Death Benefit will be adjusted for the withdrawal. See "How Withdrawals Affect
Your Guaranteed Minimum Income Benefit and Guaranteed Minimum Death Benefit"
below.
The 5% Roll Up to Age 80 Guaranteed Minimum Death Benefit is not available in
New York.
THE FOLLOWING REPLACES THE FIFTH AND SIXTH PARAGRAPHS UNDER THE SUBHEADING
"GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 30 OF THE PROSPECTUS AND THE SECOND
PARAGRAPH UNDER THE SUBHEADING "GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 4 OF
THE TSA SUPPLEMENT:
Alternate baseBUILDER Guaranteed Minimum Death Benefit applicable under
Traditional IRA and TSA Certificates for Annuitant Issue Ages 20 through 60
5% Roll Up to Age 70 -- On the Contract Date, the Guaranteed Minimum Death
Benefit is equal to the initial contribution. Thereafter, the Guaranteed Minimum
Death Benefit is credited with interest at 5% (3% for amounts in the Alliance
Money Market Fund, Alliance Intermediate Government Securities Fund, and GIROs)
on each Contract Date anniversary (compounded annually) through the Annuitant's
age 70 (or at the Annuitant's death, if earlier), and 0% thereafter. An interest
rate of 5% will apply for amounts in the Alliance Money Market Fund under the
Special Dollar Cost Averaging program. Under TSA Certificates, while a loan is
outstanding, the amount in the loan reserve account will be credited with
interest at 3%.
On the date that a subsequent contribution is applied, your current Guaranteed
Minimum Death Benefit will increase by the dollar amount of the subsequent
contribution. On the date that a withdrawal is made, your Guaranteed Minimum
Death Benefit will be adjusted for the withdrawal. See "How Withdrawals Affect
Your Guaranteed Minimum Income Benefit and Guaranteed Minimum Death Benefit"
below.
3
<PAGE>
THE FOLLOWING REPLACES THE INFORMATION UNDER THE HEADING "HOW WITHDRAWALS AFFECT
YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT" ON
PAGE 40 OF THE PROSPECTUS:
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
Guaranteed Minimum Income Benefit benefit base -- Your current Guaranteed
Minimum Income Benefit benefit base (described below) will be reduced on a
dollar-for-dollar basis as long as the sum of your withdrawals in a Contract
Year is 5% or less of the beginning of Contract Year Guaranteed Minimum Death
Benefit. Once you take a withdrawal that causes the sum of your withdrawals in a
Contract Year to exceed 5% of the beginning of Contract Year Guaranteed Minimum
Death Benefit, that withdrawal and any subsequent withdrawals in that same
Contract Year will reduce your current Guaranteed Minimum Income Benefit benefit
base on a pro rata basis.
5% Roll Up to Age 80 or to Age 70 -- If you elect the 5% Roll Up to Age 70 or to
Age 80 Guaranteed Minimum Death Benefit, your current Guaranteed Minimum Death
Benefit will be reduced on a dollar-for-dollar basis as long as the sum of your
withdrawals in a Contract Year is 5% or less of the beginning of Contract Year
Guaranteed Minimum Death Benefit. Once you take a withdrawal that causes the sum
of your withdrawals in a Contract Year to exceed 5% of the beginning of Contract
Year Guaranteed Minimum Death Benefit, that withdrawal and any subsequent
withdrawals in that same Contract Year will reduce your current Guaranteed
Minimum Death Benefit on a pro rata basis.
Annual Ratchet to Age 80 -- If you elect the Annual Ratchet to Age 80 Guaranteed
Minimum Death Benefit, each withdrawal will always reduce your current
Guaranteed Minimum Death Benefit on a pro rata basis.
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of the Annuity Account Value (as of the
Transaction Date) that is being withdrawn and we reduce your current benefit by
that same percentage. For example, if your Annuity Account Value is $30,000 and
you withdraw $12,000, you have withdrawn 40% ($12,000/ $30,000) of your Annuity
Account Value. If your Guaranteed Minimum Death Benefit was $40,000 prior to the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new
Guaranteed Minimum Death Benefit after the withdrawal would be $24,000 ($40,000
- - $16,000).
The timing of your withdrawals and whether they exceed the 5% threshold
described above can have a significant impact on your Guaranteed Minimum Income
Benefit or Guaranteed Minimum Death Benefit.
THE FOLLOWING REPLACES THE INFORMATION UNDER THE SUBHEADING "GUARANTEED MINIMUM
INCOME BENEFIT BENEFIT BASE" ON PAGE 40 OF THE PROSPECTUS AND THE PARAGRAPH
UNDER THE SUBHEADING "GUARANTEED MINIMUM INCOME BENEFIT ON PAGE 4 OF THE TSA
SUPPLEMENT:
On the Contract Date, the Guaranteed Minimum Income Benefit benefit base is
equal to the initial contribution. Thereafter, the Guaranteed Minimum Income
Benefit benefit base is credited with interest at 5% (3% for amounts in the
Alliance Money Market Fund, Alliance Intermediate Government Securities Fund,
and GIROs) on each Contract Date anniversary (compounded annually) through the
Annuitant's age 80 (age 70 if the 5% Roll Up to Age 70 is elected), and 0%
thereafter. An interest rate of 5% will apply for amounts in the Alliance Money
Market Fund under the Special Dollar Cost Averaging program. Under TSA
Certificates, while a loan is outstanding, the amount in the loan reserve
account will be credited with interest at 3%.
4
<PAGE>
On the date that a subsequent contribution is applied, your current Guaranteed
Minimum Income Benefit benefit base will increase by the dollar amount of the
subsequent contribution. On the date that a withdrawal is made, your Guaranteed
Minimum Income Benefit benefit base will be reduced by (i) the dollar amount of
the withdrawal or (ii) the percentage of the Annuity Account Value being
withdrawn, as explained above. The Guaranteed Minimum Income Benefit benefit
base will also be reduced by any withdrawal charge remaining on the Transaction
Date that you exercise your Guaranteed Minimum Income Benefit.
Your Guaranteed Minimum Income Benefit benefit base is applied to guaranteed
minimum annuity purchase factors to determine the Guaranteed Minimum Income
Benefit. The guaranteed minimum annuity purchase factors are based on (i)
interest at 2.5%, and (ii) mortality tables that assume increasing longevity.
These interest and mortality factors are generally more conservative than the
basis underlying current annuity purchase factors, which means that they would
produce less periodic income for an equal amount applied.
Your Guaranteed Minimum Income Benefit benefit base does not create an Annuity
Account Value or a Cash Value and is used solely for purposes of calculating
your Guaranteed Minimum Income Benefit.
UNDER "BASEBUILDER BENEFITS CHARGE" ON PAGES 43 OF THE PROSPECTUS, "5% ROLL UP
TO AGE 80" REPLACES "6% ROLL UP TO AGE 80" AND "5% ROLL UP TO AGE 70" REPLACES
"6% ROLL UP TO AGE 70."
5
<PAGE>
THE FOLLOWING REPLACES APPENDIX III ON PAGE 72 OF THE PROSPECTUS:
APPENDIX III: GUARANTEED MINIMUM DEATH BENEFIT EXAMPLE
- --------------------------------------------------------------------------------
Under the Certificates the death benefit is equal to the Annuity Account Value
or, if greater, the Guaranteed Minimum Death Benefit (see "Guaranteed Minimum
Death Benefit" on page 3 of this Supplement and on page 30 of the Prospectus).
The following is an example illustrating the calculation of the Guaranteed
Minimum Death Benefit. Assuming $100,000 is allocated to the Investment Funds
(with no allocation to the Alliance Money Market Fund, Alliance Intermediate
Government Securities Fund or GIROs), no subsequent contributions, no transfers,
no withdrawals, and no loans under a TSA Certificate, the Guaranteed Minimum
Death Benefit for an Annuitant age 45 would be calculated as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
End of 5% Roll Up to Age 80 Annual Ratchet to Age 80
Contract Annuity Guaranteed Minimum Guaranteed Minimum
Year Account Value Death Benefit Death Benefit
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 $105,000 $105,000(1) $105,000(3)
2 $115,500 $110,250(2) $115,500(3)
3 $132,825 $115,763(2) $132,825(3)
4 $106,260 $121,551(1) $132,825(4)
5 $116,886 $127,628(1) $132,825(4)
6 $140,263 $134,010(2) $140,263(3)
7 $140,263 $140,710(1) $140,263(4)
--------------------------------------------------------------------------------------------------------------------
</TABLE>
The Annuity Account Values for Contract Years 1 through 7 are determined based
on hypothetical rates of return of 5.00%, 10.00%, 15.00%, (20.00)%, 10.00%,
20.00% and 0.00%, respectively.
5% ROLL UP TO AGE 80
(1) At the end of Contract Years 1, 4, and 5, and again at the end of Contract
Year 7, the death benefit will be equal to the Guaranteed Minimum Death
Benefit.
(2) At the end of Contract Years 2 and 3, and again at the end of Contract Year
6, the death benefit will be equal to the Annuity Account Value since it is
higher than the current Guaranteed Minimum Death Benefit.
ANNUAL RATCHET TO AGE 80
(3) At the end of Contract Years 1, 2, and 3, and again at the end of Contract
Year 6, the Guaranteed Minimum Death Benefit is equal to the current
Annuity Account Value.
(4) At the end of Contract Years 4, 5, and 7, the Guaranteed Minimum Death
Benefit is equal to the Guaranteed Minimum Death Benefit at the end of the
prior year since it is equal to or higher than the current Annuity Account
Value.
6
<PAGE>
SUPPLEMENT TO
EQUITABLE ACCUMULATOR(SM)
(IRA, NQ AND QP)
PROSPECTUS DATED MAY 1, 1998 AND
TAX SHELTERED ANNUITY SUPPLEMENT DATED JUNE 18, 1998
COMBINATION VARIABLE AND FIXED DEFERRED ANNUITY CERTIFICATES
Issued By:
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus supplement (SUPPLEMENT) changes certain information in the
Equitable Accumulator (IRA, NQ and QP) prospectus dated May 1, 1998, and the Tax
Sheltered Annuity prospectus supplement dated June 18, 1998 (TSA SUPPLEMENT).
This Supplement describes the baseBUILDER(R) Combined Guaranteed Minimum Income
Benefit and Guaranteed Minimum Death Benefit offered to Annuitant issue ages 76
through 83. Capitalized terms in this supplement have the same meaning as in the
Prospectus and TSA Supplement.
The versions of the Combined Guaranteed Minimum Income Benefit and Guaranteed
Minimum Death Benefit discussed on page 28 of the prospectus under "baseBUILDER
Benefits" and pages 3 and 4 of the TSA Supplement are not available for
Annuitant issue ages 76 through 83. The combined benefit available for these
issue ages was offered under prospectus supplements dated May 1, 1998 and June
18, 1998 (PRIOR SUPPLEMENTS).
Effective January 4, 1999, the interest rate credited under the Guaranteed
Minimum Income Benefit benefit base and the Guaranteed Minimum Death Benefit
will be reduced to 3%. The guaranteed minimum annuity purchase factors used in
calculating the Guaranteed Minimum Income Benefit will be based on interest at
2.5% for all years.
For applications received at our Processing Office on or before December 31,
1998, with funds received by December 31, 1998, the benefits as described in the
Prior Supplements will apply. For applications where funds are to be received
under 1035 Exchanges and direct custodian-to-custodian IRA or TSA transfers, if
all paperwork is received at our Processing Office on or before December 31,
1998, with funds received by February 26, 1999, the benefit described in the
Prior Supplements will also apply. For all applications received at our
Processing Office after December 31, 1998, the benefits as described in this
Supplement will apply.
The charge for the benefit described in this Supplement is 0.30% of the
Guaranteed Minimum Income Benefit benefit base in effect on a Processing Date.
THE EXERCISE DATES AND PERIOD CERTAIN FOR THE GUARANTEED MINIMUM INCOME BENEFIT
APPLICABLE TO THE COMBINED BENEFIT IS AS FOLLOWS:
The Guaranteed Minimum Income Benefit may be exercised only within 30
days following the 7th or later Contract Date anniversary, but in no
event later than the Annuitant's age 90.
The period certain will be 90 less the Annuitant's age at exercise.
- --------------------------------------------------------------------------------
Copyright 1998 The Equitable Life Assurance Society of the United States,
New York, New York 10104.
All rights reserved. Accumulator is a service mark
and baseBUILDER is a registered service mark
of The Equitable Life Assurance Society of the United States.
SUPPLEMENT DATED NOVEMBER 30, 1998
PROS AGENT SUPP4 (11/98)
<PAGE>
THE GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE TO THE COMBINED BENEFIT IS AS
FOLLOWS:
3% Roll Up to Age 85 - On the Contract Date, the Guaranteed Minimum Death
Benefit is equal to the initial contribution. Thereafter, the Guaranteed
Minimum Death Benefit is credited with interest at 3% on each Contract Date
anniversary (compounded annually) through the Annuitant's age 85 (or at the
Annuitant's death, if earlier), and 0% thereafter.
On the date that a subsequent contribution is applied, your current
Guaranteed Minimum Death Benefit will increase by the dollar amount of the
subsequent contribution. On the date that a withdrawal is made, your
Guaranteed Minimum Death Benefit will be adjusted for the withdrawal.
THE FOLLOWING REPLACES THE THIRD PARAGRAPH AND THE CHART FOLLOWING THE PARAGRAPH
UNDER THE HEADING "GUARANTEED MINIMUM INCOME BENEFIT" ON PAGE 28 OF THE
PROSPECTUS:
Illustrated below are Guaranteed Minimum Income Benefit amounts per $100,000 of
initial contribution, for a male Annuitant age 76 (at issue) on Contract Date
anniversaries as indicated below, assuming no subsequent contributions,
withdrawals, or loans under TSA Certificates.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Contract Date Form of Guaranteed Minimum Income
Anniversary at Exercise Annuity Benefit -- Annual Income
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
7 Life with 7 Year Period Certain $11,647.84
14 Life only 21,587.70
------------------------------------------------------------------------------------------------------------
</TABLE>
THE FOLLOWING REPLACES THE INFORMATION UNDER THE HEADING "HOW WITHDRAWALS AFFECT
YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT" ON
PAGE 40 OF THE PROSPECTUS:
Withdrawals will reduce your guaranteed benefits on either a
dollar-for-dollar basis or on a pro rata basis as explained below:
Your current Guaranteed Minimum Income Benefit benefit base (described
below) and your current Guaranteed Minimum Death Benefit will be reduced on
a dollar-for-dollar basis as long as the sum of your withdrawals in a
Contract Year is 3% or less of the beginning of Contract Year Guaranteed
Minimum Death Benefit. Once you take a withdrawal that causes the sum of
your withdrawals in a Contract Year to exceed 3% of the beginning of
Contract Year Guaranteed Minimum Death Benefit, that withdrawal and any
subsequent withdrawals in that same Contract Year will reduce your current
Guaranteed Minimum Income Benefit benefit base and your current Guaranteed
Minimum Death Benefit on a pro rata basis.
Reduction on a dollar-for-dollar basis means that your current benefit will
be reduced by the dollar amount of the withdrawal. Reduction on a pro rata
basis means that we calculate the percentage of the Annuity Account Value
(as of the Transaction Date) that is being withdrawn and we reduce your
current benefit by that same percentage. For example, if your Annuity
Account Value is $30,000 and you withdraw $12,000, you have withdrawn 40%
($12,000/ $30,000) of your Annuity Account Value. If your Guaranteed
Minimum Death Benefit was $40,000 prior to the withdrawal, it would be
reduced by $16,000 ($40,000 x .40) and your new Guaranteed Minimum Death
Benefit after the withdrawal would be $24,000 ($40,000 - $16,000).
The timing of your withdrawals and whether they exceed the 3% threshold
described above can have a significant impact on your Guaranteed Minimum
Income Benefit or Guaranteed Minimum Death Benefit.
2
<PAGE>
THE FOLLOWING REPLACES THE FIRST TWO PARAGRAPHS UNDER THE HEADING "GUARANTEED
MINIMUM INCOME BENEFIT BENEFIT BASE" ON PAGE 40 OF THE PROSPECTUS:
On the Contract Date, the Guaranteed Minimum Income Benefit benefit base is
equal to the initial contribution. Thereafter, the Guaranteed Minimum
Income Benefit benefit base is credited with interest at 3% on each
Contract Date anniversary (compounded annually) through the Annuitant's age
85, and 0% thereafter.
On the date that a subsequent contribution is applied, your current
Guaranteed Minimum Income Benefit benefit base will increase by the dollar
amount of the subsequent contribution. On the date that a withdrawal is
made, your Guaranteed Minimum Income Benefit benefit base will be reduced
by (i) the dollar amount of the withdrawal or (ii) the percentage of the
Annuity Account Value being withdrawn, as explained above. The Guaranteed
Minimum Income Benefit benefit base will also be reduced by any withdrawal
charge remaining on the Transaction Date that you exercise your Guaranteed
Minimum Income Benefit.
Your Guaranteed Minimum Income Benefit benefit base is applied to
guaranteed minimum annuity purchase factors to determine the Guaranteed
Minimum Income Benefit. The guaranteed minimum annuity purchase factors are
based on (i) interest at 2.5%, and (ii) mortality tables that assume
increasing longevity. These interest and mortality factors are generally
more conservative than the basis underlying current annuity purchase
factors, which means that they would produce less periodic income for an
equal amount applied.
3
<PAGE>
THE FOLLOWING REPLACES APPENDIX III ON PAGE 72 OF THE PROSPECTUS:
APPENDIX III: GUARANTEED MINIMUM DEATH BENEFIT EXAMPLE
- --------------------------------------------------------------------------------
Under the Certificates the death benefit is equal to the Annuity Account Value
or, if greater, the Guaranteed Minimum Death Benefit (see "Guaranteed Minimum
Death Benefit" on page 2 of this Supplement and on page 30 of the Prospectus).
The following is an example illustrating the calculation of the Guaranteed
Minimum Death Benefit. Assuming $100,000 is allocated to the Investment Funds,
no subsequent contributions, no withdrawals, and no loans under a TSA
Certificate, the Guaranteed Minimum Death Benefit for an Annuitant age 76 would
be calculated as follows:
----------------------------------------------------------------------------
End of 3% Roll Up to Age 85
Contract Annuity Guaranteed Minimum
Year Account Value Death Benefit
----------------------------------------------------------------------------
1 $105,000 $103,000
2 $115,500 $106,090
3 $132,825 $109,273
4 $106,260 $112,551
5 $116,886 $115,927
6 $140,263 $119,405
7 $140,263 $122,987
----------------------------------------------------------------------------
The Annuity Account Values for Contract Years 1 through 7 are determined based
on hypothetical rates of return of 5.00%, 10.00%, 15.00%, (20.00)%, 10.00%,
20.00% and 0.00%, respectively.
For Contract Years 1 through 3, and 5 through 7 the death benefit is equal to
the Annuity Account Value, in Contract Year 4 the death benefit is equal to the
Guaranteed Minimum Death Benefit.
4
<PAGE>
SUPPLEMENT TO
EQUITABLE ACCUMULATOR(SM) SELECT
(IRA, NQ, AND QP)
PROSPECTUS DATED MAY 1, 1998, AND
TAX SHELTERED ANNUITY SUPPLEMENT DATED JUNE 18, 1998
Combination Variable and Fixed Deferred Annuity Certificates
Issued By
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus supplement (SUPPLEMENT) changes certain information contained in
the Profile and Prospectus dated May 1, 1998, and the Tax Sheltered Annuity
prospectus supplement (TSA SUPPLEMENT) dated June 18, 1998. Capitalized terms
have the same meaning as in the Prospectus and TSA Supplement.
Effective January 4, 1999, the interest rate credited under the Guaranteed
Minimum Income Benefit benefit base and the Guaranteed Minimum Death Benefit
will be reduced to 5% (3% for amounts in the Alliance Money Market Fund and the
Guarantee Periods). The guaranteed minimum annuity purchase factors used in
calculating the Guaranteed Minimum Income Benefit will be based on interest at
2.5% for all years.
For applications received at our Processing Office on or before December 31,
1998, with funds received by December 31, 1998, the benefits as described in the
Prospectus will apply. For applications where funds are to be received under
1035 Exchanges and direct custodian-to-custodian IRA or TSA transfers, if all
paperwork is received at our Processing Office on or before December 31, 1998,
with funds received by February 26, 1999, the benefits described in the
Prospectus will also apply. For all applications received at our Processing
Office after December 31, 1998, the benefits as described in this Supplement
will apply.
THE FOLLOWING CHANGES APPLY TO THE PROFILE:
IN THE TABLE UNDER "EXPENSES" IN ITEM 5, PLEASE NOTE THAT THE EXPENSE NUMBERS
UNDER THE COLUMN HEADING "10 YEARS" WILL BE SLIGHTLY LOWER THAN THE NUMBERS
SHOWN DUE TO THE REDUCTION IN THE INTEREST RATE CREDITED UNDER THE GUARANTEED
MINIMUM INCOME BENEFIT BENEFIT BASE.
IN THE SECOND PARAGRAPH OF ITEM 9 "DEATH BENEFIT," "5% ROLL UP TO AGE 80"
REPLACES "6% ROLL UP TO AGE 80."
THE FOLLOWING REPLACES THE THIRD PARAGRAPH IN ITEM 9 "DEATH BENEFIT":
5% Roll Up to Age 80 -- We add interest to the initial amount at 5% (3% for
amounts in the Alliance Money Market Fund and Guaranteed Fixed Interest
Accounts) through the annuitant's age 80 (or at the annuitant's death, if
earlier). The 5% interest rate will still apply for amounts in the Alliance
Money Market Fund under the Special Dollar Cost Averaging program discussed in
item 10 "OTHER INFORMATION."
IN ITEM 10 "OTHER INFORMATION" UNDER "BASEBUILDER(R) BENEFITS" -- "DEATH
BENEFIT," "5% ROLL UP TO AGE 80" REPLACES "6% ROLL UP TO AGE 80."
- --------------------------------------------------------------------------------
Copyright 1998 The Equitable Life Assurance Society of the United States,
New York, New York 10104.
All rights reserved. Accumulator is a service mark and baseBUILDER
is a registered service mark of
The Equitable Life Assurance Society of the United States.
SUPPLEMENT DATED NOVEMBER 30, 1998
PROS 4ACS SUPP3 (11/98)
<PAGE>
THE FOLLOWING CHANGES APPLY TO THE PROSPECTUS AND TSA SUPPLEMENT:
IN THE TABLE UNDER THE HEADING "EXAMPLES" ON PAGE 8 OF THE PROSPECTUS, PLEASE
NOTE THAT OTHER THAN FOR SURRENDER IN THE FIRST YEAR WHEN THE EXPENSE NUMBERS
WILL BE THE SAME, THE NUMBERS WILL BE SLIGHTLY LOWER THAN THE NUMBERS SHOWN DUE
TO THE CHANGE IN THE INTEREST RATE CREDITED UNDER THE GUARANTEED MINIMUM INCOME
BENEFIT BENEFIT BASE.
THE FOLLOWING REPLACES THE FIRST PARAGRAPH UNDER THE HEADING "BASEBUILDER
BENEFITS" ON PAGE 22 OF THE PROSPECTUS:
The baseBUILDER option provides guaranteed benefits in the form of a Combined
Guaranteed Minimum Income Benefit and Guaranteed Minimum Death Benefit. The
combined benefit is available for Annuitant issue ages 20 through 75 and is
subject to an additional charge (see "baseBUILDER Benefits Charge" in Part 5 of
the Prospectus). baseBUILDER provides a degree of protection for you while the
Annuitant lives (Income Benefit), as well as for the beneficiary should the
Annuitant die. As part of baseBUILDER you will have a choice of two Guaranteed
Minimum Death Benefit options for Annuitant issue ages 20 through 75: (i) a 5%
Roll Up to Age 80 or (ii) an Annual Ratchet to Age 80. The Guaranteed Minimum
Death Benefit choices are still provided under the Certificate even if you do
not elect baseBUILDER. The two choices are also provided for Annuitant issue
ages 0 through 19 under NQ Certificates and for Annuitant issue ages 76 through
79.
THE FOLLOWING REPLACES THE THIRD PARAGRAPH AND THE CHART FOLLOWING THE PARAGRAPH
UNDER THE HEADING "GUARANTEED MINIMUM INCOME BENEFIT" ON PAGE 23 OF THE
PROSPECTUS:
Illustrated below are Guaranteed Minimum Income Benefit amounts per $100,000 of
initial contribution, for a male Annuitant age 60 (at issue) on Contract Date
anniversaries as indicated below, assuming no subsequent contributions,
withdrawals, or loans under TSA Certificates, and assuming there were no
allocations to the Alliance Money Market Fund or the Guaranteed Period Account.
---------------------------------------------------------------
Guaranteed Minimum
Income Benefit -- Annual Income
Contract Date Payable for Life with
Anniversary at Exercise 10 Year Period Certain
---------------------------------------------------------------
7 $ 8,315
10 10,341
15 14,924
---------------------------------------------------------------
THE FOLLOWING REPLACES THE FIRST THREE PARAGRAPHS UNDER THE SUBHEADING
"GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 24 OF THE PROSPECTUS AND THE SECOND
PARAGRAPH UNDER THE SUBHEADING "GUARANTEED MINIMUM DEATH BENEFIT" ON PAGE 4 OF
THE TSA SUPPLEMENT:
Applicable for Annuitant Issue Ages 0 through 79 under NQ Certificates; 20
through 79 under Traditional IRA, Roth IRA and TSA Certificates; and 20 through
70 under QP Certificates
You elect either the "5% Roll Up to Age 80" or the "Annual Ratchet to Age 80"
Guaranteed Minimum Death Benefit when you apply for a Certificate. Once elected,
the benefit may not be changed.
2
<PAGE>
5% Roll Up to Age 80 -- On the Contract Date, the Guaranteed Minimum Death
Benefit is equal to the initial contribution. Thereafter, the Guaranteed Minimum
Death Benefit is credited with interest at 5% (3% for amounts in the Alliance
Money Market Fund and the Guarantee Periods) on each Contract Date anniversary
(compounded annually) through the Annuitant's age 80 (or at the Annuitant's
death, if earlier), and 0% thereafter. An interest rate of 5% will apply for
amounts in the Alliance Money Market Fund under the Special Dollar Cost
Averaging program. Under TSA Certificates, while a loan is outstanding, the
amount in the loan reserve account will be credited with interest at 3%.
On the date that a subsequent contribution is applied, your current Guaranteed
Minimum Death Benefit will increase by the dollar amount of the subsequent
contribution. On the date that a withdrawal is made, your Guaranteed Minimum
Death Benefit will be adjusted for the withdrawal. See "How Withdrawals Affect
Your Guaranteed Minimum Income Benefit and Guaranteed Minimum Death Benefit"
below.
THE FOLLOWING REPLACES THE INFORMATION UNDER THE HEADING "HOW WITHDRAWALS AFFECT
YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT" ON
PAGE 30 OF THE PROSPECTUS:
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
Guaranteed Minimum Income Benefit benefit base -- Your current Guaranteed
Minimum Income Benefit benefit base (described below) will be reduced on a
dollar-for-dollar basis as long as the sum of your withdrawals in a Contract
Year is 5% or less of the beginning of Contract Year Guaranteed Minimum Death
Benefit. Once you take a withdrawal that causes the sum of your withdrawals in a
Contract Year to exceed 5% of the beginning of Contract Year Guaranteed Minimum
Death Benefit, that withdrawal and any subsequent withdrawals in that same
Contract Year will reduce your current Guaranteed Minimum Income Benefit benefit
base on a pro rata basis.
5% Roll Up to Age 80 -- If you elect the 5% Roll Up to Age 80 Guaranteed Minimum
Death Benefit, your current Guaranteed Minimum Death Benefit will be reduced on
a dollar-for-dollar basis as long as the sum of your withdrawals in a Contract
Year is 5% or less of the beginning of Contract Year Guaranteed Minimum Death
Benefit. Once you take a withdrawal that causes the sum of your withdrawals in a
Contract Year to exceed 5% of the beginning of Contract Year Guaranteed Minimum
Death Benefit, that withdrawal and any subsequent withdrawals in that same
Contract Year will reduce your current Guaranteed Minimum Death Benefit on a pro
rata basis.
Annual Ratchet to Age 80 -- If you elect the Annual Ratchet to Age 80 Guaranteed
Minimum Death Benefit, each withdrawal will always reduce your current
Guaranteed Minimum Death Benefit on a pro rata basis.
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of the Annuity Account Value (as of the
Transaction Date) that is being withdrawn and we reduce your current benefit by
that same percentage. For example, if your Annuity Account Value is $30,000 and
you withdraw $12,000, you have withdrawn 40% ($12,000/ $30,000) of your Annuity
Account Value. If your Guaranteed Minimum Death Benefit was $40,000 prior to the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new
Guaranteed Minimum Death Benefit after the withdrawal would be $24,000 ($40,000
- - $16,000).
The timing of your withdrawals and whether they exceed the 5% threshold
described above can have a significant impact on your Guaranteed Minimum Income
Benefit or Guaranteed Minimum Death Benefit.
3
<PAGE>
THE FOLLOWING REPLACES THE INFORMATION UNDER THE SUBHEADING "GUARANTEED MINIMUM
INCOME BENEFIT BENEFIT BASE" ON PAGE 30 OF THE PROSPECTUS AND THE PARAGRAPH
UNDER THE SUBHEADING "GUARANTEED MINIMUM INCOME BENEFIT ON PAGE 4 OF THE TSA
SUPPLEMENT:
On the Contract Date, the Guaranteed Minimum Income Benefit benefit base is
equal to the initial contribution. Thereafter, the Guaranteed Minimum Income
Benefit benefit base is credited with interest at 5% (3% for amounts in the
Alliance Money Market Fund and the Guarantee Periods) on each Contract Date
anniversary (compounded annually) through the Annuitant's age 80, and 0%
thereafter. An interest rate of 5% will apply for amounts in the Alliance Money
Market Fund under the Special Dollar Cost Averaging program. Under TSA
Certificates, while a loan is outstanding, the amount in the loan reserve
account will be credited with interest at 3%.
On the date that a subsequent contribution is applied, your current Guaranteed
Minimum Income Benefit benefit base will increase by the dollar amount of the
subsequent contribution. On the date that a withdrawal is made, your Guaranteed
Minimum Income Benefit benefit base will be reduced by (i) the dollar amount of
the withdrawal or (ii) the percentage of the Annuity Account Value being
withdrawn, as explained above.
Your Guaranteed Minimum Income Benefit benefit base is applied to guaranteed
minimum annuity purchase factors to determine the Guaranteed Minimum Income
Benefit. The guaranteed minimum annuity purchase factors are based on (i)
interest at 2.5%, and (ii) mortality tables that assume increasing longevity.
These interest and mortality factors are generally more conservative than the
basis underlying current annuity purchase factors, which means that they would
produce less periodic income for an equal amount applied.
Your Guaranteed Minimum Income Benefit benefit base does not create an Annuity
Account Value or a Cash Value and is used solely for purposes of calculating
your Guaranteed Minimum Income Benefit.
4
<PAGE>
THE FOLLOWING REPLACES APPENDIX III ON PAGE 58 OF THE PROSPECTUS:
APPENDIX III: GUARANTEED MINIMUM DEATH BENEFIT EXAMPLE
- --------------------------------------------------------------------------------
Under the Certificates the death benefit is equal to the Annuity Account Value
or, if greater, the Guaranteed Minimum Death Benefit (see "Guaranteed Minimum
Death Benefit" on page 2 of this Supplement and on page 24 of the Prospectus).
The following is an example illustrating the calculation of the Guaranteed
Minimum Death Benefit. Assuming $100,000 is allocated to the Investment Funds
(with no allocation to the Alliance Money Market Fund or the Guarantee Periods),
no subsequent contributions, no transfers, no withdrawals, and no loans under a
TSA Certificate, the Guaranteed Minimum Death Benefit for an Annuitant age 45
would be calculated as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
End of 5% Roll Up to Age 80 Annual Ratchet to Age 80
Contract Annuity Guaranteed Minimum Guaranteed Minimum
Year Account Value Death Benefit Death Benefit
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 $105,000 $105,000(1) $105,000(3)
2 $115,500 $110,250(2) $115,500(3)
3 $132,825 $115,763(2) $132,825(3)
4 $106,260 $121,551(1) $132,825(4)
5 $116,886 $127,628(1) $132,825(4)
6 $140,263 $134,010(2) $140,263(3)
7 $140,263 $140,710(1) $140,263(4)
--------------------------------------------------------------------------------------------------------------------
</TABLE>
The Annuity Account Values for Contract Years 1 through 7 are determined based
on hypothetical rates of return of 5.00%, 10.00%, 15.00%, (20.00)%, 10.00%,
20.00% and 0.00%, respectively.
5% ROLL UP TO AGE 80
(1) At the end of Contract Years 1, 4, and 5, and again at the end of Contract
Year 7, the death benefit will be equal to the Guaranteed Minimum Death
Benefit.
(2) At the end of Contract Years 2 and 3, and again at the end of Contract Year
6, the death benefit will be equal to the Annuity Account Value since it is
higher than the current Guaranteed Minimum Death Benefit.
ANNUAL RATCHET TO AGE 80
(3) At the end of Contract Years 1, 2, and 3, and again at the end of Contract
Year 6, the Guaranteed Minimum Death Benefit is equal to the current
Annuity Account Value.
(4) At the end of Contract Years 4, 5, and 7, the Guaranteed Minimum Death
Benefit is equal to the Guaranteed Minimum Death Benefit at the end of the
prior year since it is equal to or higher than the current Annuity Account
Value.
5
<PAGE>
SUPPLEMENT TO
EQUITABLE ACCUMULATOR(SM) SELECT
(IRA, NQ AND QP)
PROSPECTUS DATED MAY 1, 1998 AND
TAX SHELTERED ANNUITY SUPPLEMENT DATED JUNE 18, 1998
COMBINATION VARIABLE AND FIXED DEFERRED ANNUITY CERTIFICATES
Issued By:
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus supplement (SUPPLEMENT) changes certain information in the
Equitable Accumulator (IRA, NQ and QP) prospectus dated May 1, 1998, and the Tax
Sheltered Annuity prospectus supplement dated June 18, 1998 (TSA SUPPLEMENT).
This Supplement describes the baseBUILDER(R) Combined Guaranteed Minimum Income
Benefit and Guaranteed Minimum Death Benefit offered to Annuitant issue ages 76
through 83. Capitalized terms in this supplement have the same meaning as in the
Prospectus and TSA Supplement.
The versions of the Combined Guaranteed Minimum Income Benefit and Guaranteed
Minimum Death Benefit discussed on page 22 of the prospectus under "baseBUILDER
Benefits" and page 4 of the TSA Supplement are not available for Annuitant issue
ages 76 through 83. The combined benefit available for these issue ages was
offered under prospectus supplements dated May 1, 1998 and June 18, 1998 (PRIOR
SUPPLEMENTS).
Effective January 4, 1999, the interest rate credited under the Guaranteed
Minimum Income Benefit benefit base and the Guaranteed Minimum Death Benefit
will be reduced to 3%. The guaranteed minimum annuity purchase factors used in
calculating the Guaranteed Minimum Income Benefit will be based on interest at
2.5% for all years.
For applications received at our Processing Office on or before December 31,
1998, with funds received by December 31, 1998, the benefits as described in the
Prior Supplements will apply. For applications where funds are to be received
under 1035 Exchanges and direct custodian-to-custodian IRA or TSA transfers, if
all paperwork is received at our Processing Office on or before December 31,
1998, with funds received by February 26, 1999, the benefit described in the
Prior Supplements will also apply. For all applications received at our
Processing Office after December 31, 1998, the benefits as described in this
Supplement will apply.
The charge for the benefit described in this Supplement is 0.30% of the
Guaranteed Minimum Income Benefit benefit base in effect on a Processing Date.
THE EXERCISE DATES AND PERIOD CERTAIN FOR THE GUARANTEED MINIMUM INCOME BENEFIT
APPLICABLE TO THE COMBINED BENEFIT IS AS FOLLOWS:
The Guaranteed Minimum Income Benefit may be exercised only within 30 days
following the 7th or later Contract Date anniversary, but in no event later
than the Annuitant's age 90.
The period certain will be 90 less the Annuitant's age at exercise.
THE GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE TO THE COMBINED BENEFIT IS AS
FOLLOWS:
3% Roll Up to Age 85 - On the Contract Date, the Guaranteed Minimum Death
Benefit is equal to the initial contribution. Thereafter, the Guaranteed
Minimum Death Benefit is credited with interest at 3% on each Contract Date
anniversary (compounded annually) through the Annuitant's age 85 (or at the
Annuitant's death, if earlier), and 0% thereafter.
- --------------------------------------------------------------------------------
Copyright 1998 The Equitable Life Assurance Society of the United States,
New York, New York 10104.
All rights reserved. Accumulator is a service mark
and baseBUILDER is a registered service mark of
The Equitable Life Assurance Society of the United States.
SUPPLEMENT DATED NOVEMBER 30, 1998
PROS 4ACS SUPP4 (11/98)
<PAGE>
On the date that a subsequent contribution is applied, your current
Guaranteed Minimum Death Benefit will increase by the dollar amount of the
subsequent contribution. On the date that a withdrawal is made, your
Guaranteed Minimum Death Benefit will be adjusted for the withdrawal.
THE FOLLOWING REPLACES THE THIRD PARAGRAPH AND THE CHART FOLLOWING THE PARAGRAPH
UNDER THE HEADING "GUARANTEED MINIMUM INCOME BENEFIT" ON PAGE 23 OF THE
PROSPECTUS:
Illustrated below are Guaranteed Minimum Income Benefit amounts per $100,000 of
initial contribution, for a male Annuitant age 76 (at issue) on Contract Date
anniversaries as indicated below, assuming no subsequent contributions,
withdrawals, or loans under TSA Certificates.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Contract Date Form of Guaranteed Minimum Income
Anniversary at Exercise Annuity Benefit -- Annual Income
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
7 Life with 7 Year Period Certain $11,647.84
14 Life only 21,587.70
------------------------------------------------------------------------------------------------------------
</TABLE>
THE FOLLOWING REPLACES THE INFORMATION UNDER THE HEADING "HOW WITHDRAWALS AFFECT
YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED MINIMUM DEATH BENEFIT" ON
PAGE 30 OF THE PROSPECTUS:
Withdrawals will reduce your guaranteed benefits on either a
dollar-for-dollar basis or on a pro rata basis as explained below:
Your current Guaranteed Minimum Income Benefit benefit base (described
below) and your current Guaranteed Minimum Death Benefit will be reduced on
a dollar-for-dollar basis as long as the sum of your withdrawals in a
Contract Year is 3% or less of the beginning of Contract Year Guaranteed
Minimum Death Benefit. Once you take a withdrawal that causes the sum of
your withdrawals in a Contract Year to exceed 3% of the beginning of
Contract Year Guaranteed Minimum Death Benefit, that withdrawal and any
subsequent withdrawals in that same Contract Year will reduce your current
Guaranteed Minimum Income Benefit benefit base and your current Guaranteed
Minimum Death Benefit on a pro rata basis.
Reduction on a dollar-for-dollar basis means that your current benefit will
be reduced by the dollar amount of the withdrawal. Reduction on a pro rata
basis means that we calculate the percentage of the Annuity Account Value
(as of the Transaction Date) that is being withdrawn and we reduce your
current benefit by that same percentage. For example, if your Annuity
Account Value is $30,000 and you withdraw $12,000, you have withdrawn 40%
($12,000/ $30,000) of your Annuity Account Value. If your Guaranteed
Minimum Death Benefit was $40,000 prior to the withdrawal, it would be
reduced by $16,000 ($40,000 x .40) and your new Guaranteed Minimum Death
Benefit after the withdrawal would be $24,000 ($40,000 - $16,000).
The timing of your withdrawals and whether they exceed the 3% threshold
described above can have a significant impact on your Guaranteed Minimum
Income Benefit or Guaranteed Minimum Death Benefit.
THE FOLLOWING REPLACES THE FIRST TWO PARAGRAPHS UNDER THE HEADING "GUARANTEED
MINIMUM INCOME BENEFIT BENEFIT BASE" ON PAGE 30 OF THE PROSPECTUS:
On the Contract Date, the Guaranteed Minimum Income Benefit benefit base is
equal to the initial contribution. Thereafter, the Guaranteed Minimum
Income Benefit benefit base is credited with interest at 3% on each
Contract Date anniversary (compounded annually) through the Annuitant's age
85, and 0% thereafter.
2
<PAGE>
On the date that a subsequent contribution is applied, your current
Guaranteed Minimum Income Benefit benefit base will increase by the dollar
amount of the subsequent contribution. On the date that a withdrawal is
made, your Guaranteed Minimum Income Benefit benefit base will be reduced
by (i) the dollar amount of the withdrawal or (ii) the percentage of the
Annuity Account Value being withdrawn, as explained above.
Your Guaranteed Minimum Income Benefit benefit base is applied to
guaranteed minimum annuity purchase factors to determine the Guaranteed
Minimum Income Benefit. The guaranteed minimum annuity purchase factors are
based on (i) interest at 2.5%, and (ii) mortality tables that assume
increasing longevity. These interest and mortality factors are generally
more conservative than the basis underlying current annuity purchase
factors, which means that they would produce less periodic income for an
equal amount applied.
3
<PAGE>
THE FOLLOWING REPLACES APPENDIX III ON PAGE 58 OF THE PROSPECTUS:
APPENDIX III: GUARANTEED MINIMUM DEATH BENEFIT EXAMPLE
- --------------------------------------------------------------------------------
Under the Certificates the death benefit is equal to the Annuity Account Value
or, if greater, the Guaranteed Minimum Death Benefit (see "Guaranteed Minimum
Death Benefit" on page 1 of this Supplement and on page 24 of the Prospectus).
The following is an example illustrating the calculation of the Guaranteed
Minimum Death Benefit. Assuming $100,000 is allocated to the Investment Funds,
no subsequent contributions, no withdrawals, and no loans under a TSA
Certificate, the Guaranteed Minimum Death Benefit for an Annuitant age 76 would
be calculated as follows:
----------------------------------------------------------------------------
End of 3% Roll Up to Age 85
Contract Annuity Guaranteed Minimum
Year Account Value Death Benefit
----------------------------------------------------------------------------
1 $105,000 $103,000
2 $115,500 $106,090
3 $132,825 $109,273
4 $106,260 $112,551
5 $116,886 $115,927
6 $140,263 $119,405
7 $140,263 $122,987
----------------------------------------------------------------------------
The Annuity Account Values for Contract Years 1 through 7 are determined based
on hypothetical rates of return of 5.00%, 10.00%, 15.00%, (20.00)%, 10.00%,
20.00% and 0.00%, respectively.
For Contract Years 1 through 3, and 5 through 7 the death benefit is equal to
the Annuity Account Value, in Contract Year 4 the death benefit is equal to the
Guaranteed Minimum Death Benefit.
4
