Registration No. 33-89510
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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POST EFFECTIVE AMENDMENT NO. 8
TO
FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
The Equitable Life Assurance Society of the United States
(Exact name of registrant as specified in its charter)
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New York
(State or other jurisdiction of incorporation or organization)
13-5570651
(I.R.S. Employer Identification No.)
1290 Avenue of the Americas, New York, New York 10104
(212)554-1234
(Address, including zip code, and telephone number, including area code,
of registrant's principal executive offices)
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ROBIN WAGNER
VICE PRESIDENT AND COUNSEL
The Equitable Life Assurance Society of the United States
1290 Avenue of the Americas, New York, New York 10104
(212)554-1234
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
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Please send copies of all communications to:
PETER E. PANARITES, ESQ.
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W., Washington D.C. 20036
<PAGE>
EQUI-VEST(R)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2000
Please read and keep this prospectus for future reference. It contains important
information that you should know before purchasing or taking any other action
under your contract. Also, at the end of this prospectus you will find attached
the prospectus for EQ Advisors Trust, which contains important information about
its portfolios.
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WHAT IS EQUI-VEST?
EQUI-VEST is a deferred annuity contract issued by THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES. It provides for the accumulation of retirement
savings and for income. The contract also offers death benefit protection and a
number of payout options. You invest to accumulate value on a tax-deferred basis
in one or more of our variable investment options, our guaranteed interest
option or in our fixed maturity options ("investment options"). Each of these
contracts may not currently be available in all states.
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VARIABLE INVESTMENT OPTIONS
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FIXED INCOME:
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o Alliance High Yield o Alliance Quality Bond
o Alliance Intermediate
Government Securities
o Alliance Money Market
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DOMESTIC STOCKS
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o EQ/Aggressive Stock(1) o EQ/Evergreen
o Alliance Common Stock o MFS Emerging Growth
o Alliance Equity Index Companies
o Alliance Growth and Income o MFS Growth with Income
o EQ/Alliance Technology(2) o MFS Research
o EQ/Alliance Premier Growth o Mercury Basic Value Equity(3)
o Alliance Small Cap Growth o EQ/Putnam Growth & Income
o Capital Guardian Research Value
o Capital Guardian U.S. Equity o T. Rowe Price Equity Income
o Warburg Pincus Small
Company Value
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INTERNATIONAL STOCKS
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o Alliance Global o Morgan Stanley Emerging
o Alliance International Markets Equity
o T. Rowe Price International
Stock
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BALANCED/HYBRID
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o Alliance Conservative o EQ/Evergreen Foundation
Investors o Mercury World Strategy(5)
o Alliance Growth Investors o EQ/Putnam Balanced
o EQ/Balanced(4)
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(1) Formerly named "Alliance Aggressive Stock."
(2) Anticipated to become available on or about May 22, 2000. This option may
not be available in California.
(3) Formerly named "Merrill Lynch Basic Value Equity."
(4) Formerly named "Alliance Balanced."
(5) Formerly named "Merrill Lynch World Strategy."
You may allocate amounts to the variable investment options under your choice of
investment method subject to any restrictions. Each variable investment option
is a subaccount of our Separate Account A. Each variable investment option, in
turn, invests in a corresponding securities portfolio of either Class IA or IB
shares of EQ Advisors Trust. Your investment results in a variable investment
option will depend on the investment performance of the related portfolio.
GUARANTEED INTEREST OPTION. You may allocate amounts to the guaranteed interest
option. This option is part of our general account and pays interest at
guaranteed rates.
FIXED MATURITY OPTIONS. You may allocate amounts to one or more fixed maturity
options. These amounts will receive a fixed rate of interest for a specified
period. Interest is earned at a guaranteed rate set by us. We make a market
value adjustment (up or down) if you make transfers or withdrawals from a fixed
maturity option before its maturity date. Fixed maturity options are anticipated
to be available after May 22, 2000 and may not be available in your state. Check
with your financial professional regarding availability.
TYPES OF CONTRACTS. We offer different "series" of contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA or Roth
IRA.
o A traditional IRA as a conduit to hold rollover distributions ("QP IRA")
from a qualified plan or a Tax-Sheltered Annuity ("TSA").
A contribution ranging from $20 to $2,500 is required to purchase a contract.
The minimum amount required depends on the type of contract, NQ, IRA or QP IRA,
and the series purchased.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2000 is a part of one of the registration
statements. The SAI is available free of charge. You may request one by writing
to our processing office or calling 1 (800) 628-6673. The SAI has been
incorporated by reference into this prospectus. This prospectus and the SAI can
also be obtained from the SEC's Web site at http://www.sec.gov. The table of
contents for the SAI appears at the back of this prospectus.
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY.
THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK
GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL.
72087
Series 100-500
<PAGE>
CONTENTS OF THIS PROSPECTUS
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2
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EQUI-VEST(R)
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Index of key words and phrases 4
Who is Equitable Life? 6
How to reach us 7
EQUI-VEST at a glance - key features 10
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FEE TABLE 13
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EQUI-VEST series 300 and 400 contracts 16
EQUI-VEST series 500 contracts 18
EQUI-VEST series 100 and 200 contracts 20
Condensed financial information 24
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1 CONTRACT FEATURES AND BENEFITS 25
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How you can purchase and contribute to your contract 25
Owner and annuitant requirements 28
How you can make your contributions 28
What are your investment options under the contract? 28
Selecting your investment method 32
Allocating your contributions 34
Your right to cancel within a certain number of days 34
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2 DETERMINING YOUR CONTRACT'S VALUE 36
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Your account value and cash value 36
Your contract's value in the variable investment options 36
Your contract's value in the guaranteed interest option 36
Your contract's value in the fixed maturity options 36
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"We," "our" and "us" refer to Equitable Life.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates
that are issued under group contracts in some states.
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3
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3 TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 37
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Transferring your account value 37
Market timing 37
Automatic transfer options - investment simplifier 37
Rebalancing your account value 38
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4 ACCESSING YOUR MONEY 39
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Withdrawing your account value 39
How withdrawals are taken from your account value 40
Surrender of your contract to receive its cash value 40
Termination 41
When to expect payments 41
Your annuity payout options 41
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5 CHARGES AND EXPENSES 44
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Charges that Equitable Life deducts 44
Charges that EQ Advisors Trust deducts 49
Group or sponsored arrangements 49
Other distribution arrangements 50
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6 PAYMENT OF DEATH BENEFIT 51
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Your beneficiary and payment of benefit 51
How death benefit payment is made 52
Beneficiary continuation option under Series 100, 200
and 400 Traditional IRA, IRA and QP IRA and
Series 100 and 400 Roth IRA contracts 52
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7 TAX INFORMATION 54
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Overview 54
Transfers among investment options 54
Taxation of nonqualified annuities 54
Other information 55
Individual retirement arrangements ("IRAs") 56
Federal and state income tax withholding and
information reporting 69
Impact of taxes to Equitable Life 69
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8 MORE INFORMATION 70
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About our Separate Account A 70
About EQ Advisors Trust 70
About our fixed maturity options 71
About the general account 72
About other methods of payment 72
Dates and prices at which contract events occur 73
About your voting rights 74
About legal proceedings 74
About our independent accountants 75
Financial statements 75
Transfers of ownership, collateral assignments, loans,
and borrowing 75
Distribution of the contracts 75
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9 INVESTMENT PERFORMANCE 76
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Benchmarks 76
Communicating performance data 87
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10 INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 89
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APPENDICES
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I - Condensed financial information A-1
II - Original contracts B-1
III - Market value adjustment example C-1
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STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
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<PAGE>
INDEX OF KEY WORDS AND PHRASES
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4
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This index should help you locate more information on the terms used in this
prospectus.
<TABLE>
<CAPTION>
PAGE PAGE
<S> <C> <S> <C>
account value 36 IRS 55
annuitant 25 investment options 29
annuity payout options 41 market adjusted amount 32
beneficiary 52 market value adjustment 32
business day 74 maturity value 31
cash value 36 NQ cover
conduit IRA 61 portfolio cover
contract date 12 processing office 7
contract date anniversary 12 QP IRAs cover
contract year 12 rate to maturity 31
contributions 34 regular contribution 58
Contributions to Roth IRAs Required Beginning Date 62
regular contribution 73 Roth IRA cover
rollovers and transfers 73 SAI cover
conversion contributions 74 SEC cover
contributions to traditional IRAs 58 TOPS 7
regular contributions 58 traditional IRA cover
rollovers and transfers 60 TSA cover
EQAccess 7 unit 36
fixed maturity options 31 unit investment trust 71
guaranteed interest option 31 variable investment options 29
IRA cover
</TABLE>
To make this prospectus easier to read, we sometimes use different words than in
the contract or supplemental materials. This is illustrated below. Although we
do use different words, they have the same meaning in this prospectus as in the
contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
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PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
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fixed maturity options Guarantee Periods or Fixed Maturity Accounts
variable investment options Investment Funds or Investment Divisions
account value Annuity Account Value
rate to maturity Guaranteed Rates
guaranteed interest option Guaranteed Interest Account
unit Accumulation unit
unit value Accumulation unit value
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In this prospectus, we use a "series" number when necessary to identify a
particular contract. We discuss five series of contracts. However, only three
are available for new purchasers. Once you have purchased a contract you can
identify the EQUI-VEST series you have by referring to your confirmation notice,
or you may contact your financial professional, or you may call our toll-free
number. The series designations are as follows:
<TABLE>
<CAPTION>
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<S> <C>
o NQ, Traditional IRA, and QP IRA contracts issued before January 3, 1994; series 100
and
This series is no longer available for
o Standard Roth IRA contracts converted from such IRA and QP IRA contacts. new purchasers. Information in this prospectus
on this series is provided for our existing
contract owners only.
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o Certain NQ, Traditional IRA and QP IRA contracts issued on or after August series 200
17, 1995.
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o NQ, Traditional IRA, QP IRA, and Standard Roth IRA contracts issued on or series 300
after January 3, 1994 and before the date series 400 contracts became
available in a state; and
o Standard Roth IRA contracts converted from such IRA and QP IRA contracts.
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o NQ, Traditional IRA, QP IRA, and Standard Roth IRA contracts issued on or series 400
after July 10, 1995 in states where approved; and
o Standard Roth IRA contracts converted from such IRA and QP IRA contracts.
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o Roth Advantage contracts series 500
This series is no longer available for new
purchasers. Information in this prospectus on
this series is provided for our existing contract
owners only.
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</TABLE>
We also have contracts that we refer to as "original contracts." These contracts
are no longer available for new purchasers. Any information about original
contracts which is different from the current series we offer can be found in
Appendix II, which will be referenced throughout this prospectus when it
applies.
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Who is Equitable Life?
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6
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We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing business
since 1859. Equitable Life is a wholly owned subsidiary of AXA Financial Inc.
(previously, The Equitable Companies Incorporated). The majority shareholder of
AXA Financial, Inc. is AXA, a French holding company for an international group
of insurance and related financial services companies. As a majority
shareholder, and under its other arrangements with Equitable Life and Equitable
Life's parent, AXA exercises significant influence over the operations and
capital structure of Equitable Life and its parent. No company other than
Equitable Life, however, has any legal responsibility to pay amounts that
Equitable Life owes under the contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$462.7 billion in assets as of December 31, 1999. For over 100 years Equitable
Life has been among the largest insurance companies in the United States. We are
licensed to sell life insurance and annuities in all fifty states, the District
of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is
located at 1290 Avenue of the Americas, New York, N.Y. 10104.
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HOW TO REACH US
You may communicate with our processing office as listed below for any of the
following purposes:
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FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS INDIVIDUALLY BY REGULAR MAIL:
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Equitable Life
EQUI-VEST
Individual Collections
P.O. Box 13459
Newark, NJ 07188-0459
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FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS INDIVIDUALLY BY EXPRESS DELIVERY:
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Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13459
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FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL:
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Equitable Life
EQUI-VEST
P.O. Box 2996
New York, NY 10116-2996
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FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY:
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Equitable Life
EQUI-VEST
200 Plaza Drive, 2nd Floor
Secaucus, NJ 07094
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FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS AND SENT BY REGULAR MAIL:
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Equitable Life
EQUI-VEST
Unit Collections
P.O. Box 13463
Newark, New Jersey 07188-0463
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FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS AND SENT BY EXPRESS DELIVERY:
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Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13463
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REPORTS WE PROVIDE:
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o written confirmation of financial transactions; and
o annual statement of your contract values as of the close of the calendar
year.
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TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS:
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TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for fixed maturity options;
o the daily unit values for the variable options; and
o performance information regarding the variable investment options (not
available through TOPS).
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You can also:
o change your allocation percentages and/or transfer among the variable
investment options and the guaranteed interest option (anticipated to be
available through EQAccess by the end of 2000);
o elect the investment simplifier (not available through EQAccess);
o change your TOPS personal identification number ("PIN")(not available
through EQAccess); and
o change your EQAccess password (not available through TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1 (800) 755-7777. You may use EQAccess by
visiting our Web site at http://www.equitable.com and clicking on EQAccess. Of
course, for reasons beyond our control, these services may sometimes be
unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good faith, or willful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe to
be genuine.
We reserve the right to limit access to these services if we determine that your
are engaged in a market timing strategy (see "Market timing" in "Transferring
your money among investment options").
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CUSTOMER SERVICE REPRESENTATIVE:
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You may also use our toll-free number 1 (800) 628-6673 to speak with one of our
customer service representatives. Our customer service representatives are
available on each business day Monday through Thursday from 8:00 a.m. to 7:00
p.m., and on Fridays until 5:00 p.m., Eastern Time.
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TOLL-FREE TELEPHONE SERVICE:
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You may reach us toll-free by calling 1 (800) 841-0801 for a recording of daily
unit values for the variable investment options.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) conversion of your Traditional IRA contract to a Standard Roth IRA;
(2) cancellation of your Standard Roth IRA or Roth Advantage contract and
return to a traditional IRA contract;
(3) election of the automatic investment program;
(4) election of the investment simplifier;
(5) election of the automatic NQ deposit service;
(6) election of the rebalancing program;
(7) to obtain a PIN required for TOPS;
(8) election of required minimum distribution option;
(9) election of the principal assurance allocation; and
(10) request for a transfer/rollover of assets or 1035 exchange to another
carrier.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF
REQUESTS:
(1) address changes;
(2) beneficiary changes;
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(3) transfers among investment options;
(4) change of ownership; and
(5) contract surrender and withdrawal requests.
TO CHANGE OR CANCEL ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) investment simplifier;
(3) rebalancing program;
(4) systematic withdrawals; and
(5) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner.
<PAGE>
EQUI-VEST at a glance - key features
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<TABLE>
<CAPTION>
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<S> <C>
PROFESSIONAL EQUI-VEST's variable investment options invest in different portfolios managed by professional
INVESTMENT investment advisers.
MANAGEMENT
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GUARANTEED INTEREST o Principal and interest guarantees
OPTION o Interest rates set periodically
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FIXED MATURITY o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years.
OPTIONS o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to maturity.
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If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market
value adjustment due to differences in interest rates. This may increase or decrease any value that you have
left in that fixed maturity option. If you surrender your contract, a market value adjustment may also apply.
o Only available for contracts in states where approved.
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TAX ADVANTAGES o On earnings inside the contract No tax on any dividends, interest or capital gains until you make
withdrawals from your contract or receive annuity payments.
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o On transfers inside the contract No tax on transfers among investment options.
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If you are buying a contract to fund a retirement plan that already provides tax deferral under the Internal
Revenue Code, you should do so for the contract's features and benefits other than tax deferral. In such
situations, the tax deferral of the contract does not provide necessary or additional benefits.
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CONTRIBUTION AMOUNTS o NQ:
- $1,000 (initial) or $50 (initial for payroll deduction); $50 (additional).
o TRADITIONAL IRA, STANDARD ROTH IRA AND ROTH ADVANTAGE:
- series 300, 400, and 500 - $50 (initial and additional);
- series 100 and 200 - $20 (initial and additional).
o QP IRA:
- series 300 and 400 - $2,500 each rollover amount;
- series 100 and 200 - $1,000 each rollover amount.
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Maximum contribution limitations may apply.
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</TABLE>
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<TABLE>
<CAPTION>
<S> <C>
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ACCESS TO YOUR MONEY o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Contract surrender
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract.
You may also incur income tax and a penalty tax.
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PAYOUT OPTIONS o Fixed annuity payout options
o Variable annuity payout options.
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ADDITIONAL FEATURES o Dollar-cost averaging by automatic transfers
- Interest sweep option
- Fixed-dollar option
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o No charge on transfers among investment options
o Waiver of withdrawal charge for disability, confinement to a nursing home, and terminal illness
(series 300, 400, and 500 only)
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FEES AND CHARGES o Daily charge on amounts invested in variable investment options for mortality and expense risks and other
expenses at current annual rates determined by contract series.
series 100: 1.34%; three options at 1.49%
series 200: 1.34%; three options at 1.40%
series 300 and 400: 1.35% (maximum of 2.00% for series 400).
series 500: 1.45% (maximum of 2.00%).
o Annual administrative charge.
series 100 and 200: $30
series 300, 400 and 500: $30 currently or during the first two contract years 2% of the account value if
less ($65 maximum).
o Charge for third-party transfer (such as in the case of a trustee-to-trustee transfer for an IRA contract),
or exchange (if your contract is exchanged for a contract issued by another insurance company):
series 100 and 200: None
series 300, 400 and 500: $25 currently ($65 maximum) per occurrence.
o No sales charge deducted at the time you make contributions.
o Series 300, 400 and 500 and NQ contracts under series 100 and 200: we deduct a charge equal to 6%
of contributions that have been withdrawn if such contributions were made in the current and five
prior contract years.
o IRAs under series 100 and 200: - 6% of the amount withdrawn, generally declining for the first through 12th
contract years. The total of all withdrawal charges may not exceed 8% of all contributions made during a
specified period before the withdrawal is made.
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</TABLE>
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<TABLE>
<CAPTION>
<S> <C>
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FEES AND CHARGES o There is no charge in any contract year in which the amount withdrawn does not exceed 10% of your account
(CONTINUED) value at the time of your withdrawal request minus prior withdrawals in that contract year. Under certain
circumstances the withdrawal charge will not apply. They are discussed in "Charges and expenses" later in
this prospectus.
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The "contract date" is the effective date of a contract. This usually is the business day we receive the
properly completed and signed application, along with any other required documents and your initial
contribution. Your contract date will be shown in your contract. The 12-month period beginning on your
contract date and each 12-month period after that date is a "contract year." The end of each 12-month period
is your "contract date anniversary."
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o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in
your state. The charge is generally deducted from the amount applied to an annuity payout option.
o We deduct a $350 annuity administrative fee from amounts applied to a variable annuity payout option.
o Annual expenses of EQ Advisors Trust portfolios are calculated as a percentage of the average daily net
assets invested in each portfolio. These expenses include management fees ranging from 0.25% to 1.15%
annually, other expenses, and for Class IB shares, 12b-1 fees of 0.25% annually.
o Daily charge on amounts invested in variable investment options for mortality and expense risks and other
expenses at annual rates determined by contract series.
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</TABLE>
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY. MAXIMUM EXPENSE
LIMITATIONS APPLY TO CERTAIN VARIABLE INVESTMENT OPTIONS, AND RIGHTS ARE
RESERVED TO CHANGE OR WAIVE CERTAIN CHARGES WITHIN SPECIFIED LIMITS. FOR
TRADITIONAL IRAS, THE MAXIMUM ISSUE AGE IS 70, BUT WE WILL ISSUE UP TO AGE 79 IF
THE CONTRIBUTION IS A ROLLOVER CONTRIBUTION. FOR ALL OTHER IRAS WE WILL ISSUE
CONTRACTS UP TO ANNUITANT AGES 80-83 WITH OUR PRIOR APPROVAL. ALSO, ALL FEATURES
OF THE CONTRACT, INCLUDING ALL VARIABLE INVESTMENT OPTIONS, ARE NOT NECESSARILY
AVAILABLE IN YOUR STATE OR AT CERTAIN AGES OR UNDER YOUR INVESTMENT METHOD.
For more detailed information we urge you to read the contents of this
prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, fees and/or charges that are different
from those offered by this prospectus. Not every contract is offered through the
same distributor. Upon request, your financial professional can show you
information regarding other Equitable Life annuity contracts that he or she
distributes. You can also contact us to find out more about any of the Equitable
Life annuity contracts.
<PAGE>
Fee table
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The fee tables below will help you understand the various charges and expenses
that apply to your contract series. The tables reflect charges you will directly
incur under the contract, as well as charges and expenses of the portfolios that
you will bear indirectly. Charges designed to approximate certain taxes that may
be imposed on us, such as premium taxes in your state, may also apply. Also, an
annuity administrative fee may apply when your annuity payments are to begin.
Each of the charges and expenses is more fully described in "Charges and
expenses" later in this prospectus.
The guaranteed interest option and fixed maturity options are not covered by the
fee tables and examples. However, the annual administrative charge, the
withdrawal charge, and the third-party transfer or exchange charge do apply to
the guaranteed interest option and fixed maturity options. Also, an annuity
administrative fee may apply when your annuity payments are to begin. A market
value adjustment (up or down) may apply as a result of a withdrawal, transfer or
surrender of amounts from a fixed maturity option.
<TABLE>
<CAPTION>
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN
ANNUAL PERCENTAGE OF DAILY NET ASSETS
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EQ/BALANCED,
ALLIANCE COMMON ALL OTHER
STOCK, ALLIANCE VARIABLE
MONEY MARKET INVESTMENT
OPTIONS OPTIONS
--------------------- ---------------------
SERIES SERIES SERIES SERIES SERIES SERIES
100 200 100 200 300 AND 400 500
---------- ---------- ---------- ---------- ----------------- -------------------
<S> <C> <C> <C> <C> <C> <C>
Mortality and expense risk(1) 0.65% 1.15% 0.50% 1.09% 1.10% current 1.20% current
(1.75% maximum) (1.75% maximum)
Other expenses(2) 0.84% 0.25% 0.84% 0.25% 0.25% 0.25%
Total Separate Account A 1.49% 1.40% 1.34% 1.34% 1.35% current 1.45% current
annual expenses(3)(4) (2.0% maximum (2.0% maximum)
for series 400)
- ------------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
- ------------------------------------------------------------------------------------------------------------------------
Annual administrative charge(5) $30 (under series 300, 400 and 500: $65 maximum)
- ------------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge(6) 6%
Charge for third-party series 100 and 200: None
transfer or exchange series 300, 400 and 500: $25, for each occurrence, current ($65 maximum)
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -------
14
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST ANNUAL EXPENSES (AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS
IN EACH PORTFOLIO)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL
OTHER ANNUAL
EXPENSES EXPENSES
MANAGEMENT (AFTER EXPENSES (AFTER EXPENSES
FEES(7) 12b-1 FEE(8) LIMITATION)(9) LIMITATION)(10)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 0.60% N/A 0.04% 0.64%
Alliance Common Stock 0.46% N/A 0.04% 0.50%
Alliance Conservative Investors 0.60% N/A 0.07% 0.67%
Alliance Equity Index 0.25% N/A 0.05% 0.30%
Alliance Global 0.73% N/A 0.09% 0.82%
Alliance Growth and Income 0.59% N/A 0.05% 0.64%
Alliance Growth Investors 0.57% N/A 0.05% 0.62%
Alliance High Yield 0.60% N/A 0.05% 0.65%
Alliance Intermediate Government Securities 0.50% N/A 0.07% 0.57%
Alliance International 0.85% N/A 0.20% 1.05%
Alliance Money Market 0.34% N/A 0.05% 0.39%
EQ/Alliance Premier Growth 0.90% 0.25% 0.00% 1.15%
Alliance Quality Bond 0.53% N/A 0.05% 0.58%
Alliance Small Cap Growth 0.75% N/A 0.07% 0.82%
EQ/Alliance Technology 0.90% 0.25% 0.00% 1.15%
EQ/Balanced 0.57% N/A 0.05% 0.62%
Capital Guardian Research 0.65% 0.25% 0.05% 0.95%
Capital Guardian U.S. Equity 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen Foundation 0.60% 0.25% 0.10% 0.95%
MFS Emerging Growth Companies 0.65% 0.25% 0.10% 1.00%
MFS Growth with Income 0.60% 0.25% 0.10% 0.95%
MFS Research 0.65% 0.25% 0.05% 0.95%
Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
Mercury World Strategy 0.70% 0.25% 0.25% 1.20%
Morgan Stanley Emerging Markets Equity 1.15% 0.25% 0.35% 1.75%
EQ/Putnam Balanced 0.60% 0.25% 0.05% 0.90%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% 0.95%
T. Rowe Price Equity Income 0.60% 0.25% 0.10% 0.95%
T. Rowe Price International Stock 0.85% 0.25% 0.15% 1.25%
Warburg Pincus Small Company Value 0.75% 0.25% 0.10% 1.10%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -------
15
- --------------------------------------------------------------------------------
Notes:
(1) A portion of this charge is for providing the death benefit.
(2) For the series 300 and 400 contracts we currently charge 0.25% for the
EQ/Aggressive Stock, EQ/Balanced, Alliance Common Stock, and Alliance Money
Market options and 0.24% for all the other options (we reserve the right to
increase this charge to 0.25% at our discretion). For series 100 and 200
contracts, this charge is for financial accounting and other administrative
services relating to the contracts.
(3) Total Separate Account A annual expenses of the variable investment options
(not including EQ Advisors Trust fees and other expenses) are guaranteed
not to exceed a total annual rate of (i) 2.00% for series 400 and 500; (ii)
1.35% for series 300 and (iii) 1.49% for series 100 and 1.40% for series
200 for the EQ/Balanced, Alliance Common Stock, and Alliance Money Market
options and; (iv) for series 100 and 200, an annual rate of 1.34% for all
the other options not listed in (iii).
(4) For series 100 and 200 contracts the total Separate Account A annual
expenses of the variable investment options and total annual expenses of EQ
Advisors Trust fees when added together are not permitted to exceed an
annual rate of 1.75% for the EQ/Aggressive Stock, EQ/Balanced, Alliance
Common Stock, and Alliance Money Market options. Without this expense
limitation, the total annual expenses deducted from the variable investment
options plus EQ Advisors Trust annual expenses for 1999 would have been
1.88% for the Alliance Money Market option; 1.99% for the Alliance Common
Stock option; 1.98% for the EQ/Aggressive Stock option; and 2.11% for the
EQ/Balanced option.
(5) For series 300, 400 and 500 contracts, during the first two contract years,
this charge is currently equal to the lesser of $30 or 2% of your account
value if it applies. Thereafter, the charge is currently $30 for each
contract year, but we reserve the right to waive or increase this charge to
an annual maximum of $65. For series 100 and 200 contracts, some contracts
are exempt from this charge.
(6) This charge applies to withdrawn contributions that were made in the
current and five prior years. This charge is deducted upon a withdrawal of
amounts in excess of the 10% free withdrawal amount. Important exceptions
and limitations may eliminate or reduce this charge.
(7) The management fees shown reflect the revised management fees, effective on
or about May 1, 2000, which were approved by shareholders. The management
fees shown for EQ/Putnam Balanced, EQ/Putnam Growth & Income Value, Warburg
Pincus Small Company Value and T. Rowe Price International Stock do not
reflect the waiver of a portion of each portfolio's investment management
fees that is currently in effect. The management fee for each portfolio
cannot be increased without a vote of that portfolio's shareholders.
(8) The Class IB shares of EQ Advisors Trust are subject to fees imposed under
a distribution plan (the "Rule 12b-1 Plan") adopted by EQ Advisors Trust
pursuant to Rule 12b-1 under the Investment Company Act of 1940. The 12b-1
fee will not be increased for the life of the contracts. Class IA shares of
EQ Advisors Trust are not subject to these fees.
(9) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. See footnote (10) for any expense limitation
agreements.
On October 18, 1999, the Alliance portfolios (other than EQ/Alliance
Premier Growth and EQ/Alliance Technology) became part of the portfolios of
EQ Advisors Trust. The "Other Expenses" for these portfolios have been
restated to reflect the estimated expenses that would have been incurred
had these portfolios been portfolios of EQ Advisors Trust for the entire
year ended December 31, 1999. The restated expenses reflect an increase of
0.01% for each of these portfolios.
(10) Equitable Life, EQ Advisors Trust's manager, has entered into an expense
limitation agreement with respect to certain portfolios. Under this
agreement Equitable Life has agreed to waive or limit its fees and assume
other expenses. Under the expense limitation agreement, total annual
operating expenses of certain portfolios (other than interest, taxes,
brokerage commissions, capitalized expenditures and extraordinary expenses)
are limited as a percentage of the average daily net assets of each of the
following portfolios: 1.75% for Morgan Stanley Emerging Markets Equity;
1.25% for T. Rowe Price International Stock; 1.20% for Mercury World
Strategy; 1.15% for EQ/Alliance Premier Growth and EQ/Alliance Technology;
1.10% for Warburg Pincus Small Company Value; 1.00% for MFS Emerging Growth
Companies; 0.95% for Capital Guardian U.S. Equity, Capital Guardian
Research, EQ/Evergreen; EQ/Evergreen Foundation, MFS Growth with Income,
MFS Research, Mercury Basic Value Equity; EQ/Putnam Growth & Income Value
and T. Rowe Price Equity Income; and 0.90% for EQ/Putnam Balanced. The
expense limitations for the EQ/Putnam Growth & Income Value, Mercury Basic
Value Equity, MFS Growth with Income, MFS Research, MFS Emerging Growth
Companies, T. Rowe Price Equity Income, T. Rowe Price International Stock
and Warburg Pincus Small Company Value portfolios reflect an increase
effective on May 1, 2000. The expense limitation for the EQ/Evergreen
portfolio reflects a decrease effective on May 1, 2000.
Absent the expense limitation, the "Other Expenses" for 1999 on an
annualized basis for each of the portfolios would have been as follows:
1.00% for Morgan Stanley Emerging Markets Equity; 0.30% for T. Rowe Price
International Stock; 0.46% for Mercury World Strategy; 0.23% for
EQ/Alliance Premier Growth; 0.10% for EQ/Alliance Technology; 0.24% for
Warburg Pincus Small Company Value; 0.17% for MFS Emerging Growth
Companies; 0.34% for Capital Guardian U.S. Equity; 0.47% for Capital
Guardian Research; 1.87% for EQ/Evergreen; 1.07% for EQ/Evergreen
Foundation; 0.37% for MFS Growth with Income; 0.17% for MFS Research; 0.17%
for Mercury Basic Value Equity; 0.16% for EQ/Putnam Growth & Income Value;
0.21% for T. Rowe Price Equity Income; and 0.28% for EQ/Putnam Balanced.
Initial seed capital was
<PAGE>
- -------
16
- --------------------------------------------------------------------------------
invested on April 30, 1999 for the EQ/Alliance Premier Growth, Capital
Guardian U.S. Equity, and Capital Guardian Research portfolios and will be
invested on May 1, 2000 for the EQ/Alliance Technology portfolio and
therefore expenses have been estimated.
Each portfolio may at a later date make a reimbursement to Equitable Life
for any of the management fees waived or limited and other expenses assumed
and paid by Equitable Life pursuant to the expense limitation agreement
provided, that among other things, such portfolio has reached sufficient
size to permit such reimbursement to be made and provided that the
portfolio's current annual operating expenses do not exceed the operating
expense limit determined for such portfolio. For more information see the
prospectus for EQ Advisors Trust.
EXAMPLES: EQUI-VEST SERIES 300 AND 400 CONTRACTS
For each type of series 300 and 400 contract, the examples below show the
expenses that a hypothetical contract owner would pay in the situations
illustrated. We assume a $1,000 contribution is invested in one of the variable
investment options listed, and a 5% annual return is earned on the assets in
that option.(1) The annual administrative charge is based on charges that apply
to a mix of estimated contract sizes, resulting in an estimated administrative
charge for the purpose of these examples of $0.51 per $1,000. We also assume
there is no waiver of the withdrawal charge. Other than as indicated above, the
total charges and expenses used to compute the examples below are the maximum
series 400 expenses, rather than the lower current series 400 expenses or series
300 expenses.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 83.42 $ 144.18 $ 207.49 $ 311.73
Alliance Common Stock $ 82.03 $ 140.05 $ 200.23 $ 297.51
Alliance Conservative Investors $ 83.71 $ 145.07 $ 209.04 $ 314.75
Alliance Equity Index $ 80.04 $ 134.12 $ 189.78 $ 276.84
Alliance Global $ 85.20 $ 149.48 $ 216.34 $ 329.72
Alliance Growth and Income $ 83.42 $ 144.18 $ 207.49 $ 311.73
Alliance Growth Investors $ 83.22 $ 143.59 $ 206.45 $ 309.71
Alliance High Yield $ 83.52 $ 144.48 $ 208.00 $ 312.74
Alliance Intermediate Government Securities $ 82.72 $ 142.12 $ 203.86 $ 304.65
Alliance International $ 87.49 $ 156.22 $ 227.38 $ 352.23
Alliance Money Market $ 80.93 $ 136.79 $ 194.49 $ 286.19
EQ/Alliance Premier Growth $ 88.48 $ 159.15 - -
Alliance Quality Bond $ 82.82 $ 142.41 $ 204.38 $ 305.66
Alliance Small Cap Growth $ 85.20 $ 149.48 $ 216.34 $ 329.72
- -----------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 28.24 $ 86.58 $ 147.49 $ 311.73
Alliance Common Stock $ 26.77 $ 82.20 $ 140.23 $ 297.51
Alliance Conservative Investors $ 28.56 $ 87.52 $ 149.04 $ 314.75
Alliance Equity Index $ 24.67 $ 75.91 $ 129.78 $ 276.84
Alliance Global $ 30.13 $ 92.20 $ 156.76 $ 329.72
Alliance Growth and Income $ 28.24 $ 86.58 $ 147.49 $ 311.73
Alliance Growth Investors $ 28.03 $ 85.96 $ 146.45 $ 309.71
Alliance High Yield $ 28.35 $ 86.89 $ 148.00 $ 312.74
Alliance Intermediate Government Securities $ 27.51 $ 84.39 $ 143.86 $ 304.65
Alliance International $ 32.54 $ 99.35 $ 168.50 $ 352.23
Alliance Money Market $ 25.62 $ 78.74 $ 134.49 $ 286.19
EQ/Alliance Premier Growth $ 33.59 $ 102.44 - -
Alliance Quality Bond $ 27.61 $ 84.70 $ 144.38 $ 305.66
Alliance Small Cap Growth $ 30.13 $ 92.20 $ 156.76 $ 329.72
- -----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
17
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
- ------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Alliance Technology $ 88.48 $ 159.15 - -
EQ/Balanced $ 83.22 $ 143.59 $ 206.45 $ 309.71
Capital Guardian Research $ 86.49 $ 153.30 - -
Capital Guardian U.S. Equity $ 86.49 $ 153.30 - -
EQ/Evergreen $ 86.49 $ 153.30 $ 222.60 $ 342.51
EQ/Evergreen Foundation $ 86.49 $ 153.30 $ 222.60 $ 342.51
MFS Emerging Growth Companies $ 86.99 $ 154.76 $ 224.99 $ 347.38
MFS Growth with Income $ 86.49 $ 153.30 $ 222.60 $ 342.51
MFS Research $ 86.49 $ 153.30 $ 222.60 $ 342.51
Mercury Basic Value Equity $ 86.49 $ 153.30 $ 222.60 $ 342.51
Mercury World Strategy $ 88.98 $ 160.60 $ 234.52 $ 366.63
Morgan Stanley Emerging Markets Equity $ 94.44 $ 176.54 $ 260.31 $ 417.55
EQ/Putnam Balanced $ 86.00 $ 151.83 $ 220.19 $ 337.61
EQ/Putnam Growth & Income Value $ 86.49 $ 153.30 $ 222.60 $ 342.51
T. Rowe Price Equity Income $ 86.49 $ 153.30 $ 222.60 $ 342.51
T. Rowe Price International Stock $ 89.47 $ 162.06 $ 236.89 $ 371.38
Warburg Pincus Small Company Value $ 87.98 $ 157.69 $ 229.77 $ 357.06
- ------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
- ------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Alliance Technology $ 33.59 $ 102.44 - -
EQ/Balanced $ 28.03 $ 85.96 $ 146.45 $ 309.71
Capital Guardian Research $ 31.49 $ 96.24 - -
Capital Guardian U.S. Equity $ 31.49 $ 96.24 - -
EQ/Evergreen $ 31.49 $ 96.24 $ 163.41 $ 342.51
EQ/Evergreen Foundation $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Emerging Growth Companies $ 32.02 $ 97.80 $ 165.96 $ 347.38
MFS Growth with Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Research $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury Basic Value Equity $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury World Strategy $ 34.12 $ 103.99 $ 176.10 $ 366.63
Morgan Stanley Emerging Markets Equity $ 39.89 $ 120.89 $ 203.53 $ 417.55
EQ/Putnam Balanced $ 30.97 $ 94.69 $ 160.86 $ 337.61
EQ/Putnam Growth & Income Value $ 31.49 $ 96.24 $ 163.41 $ 342.51
T. Rowe Price Equity Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
T. Rowe Price International Stock $ 34.64 $ 105.53 $ 178.62 $ 371.38
Warburg Pincus Small Company Value $ 33.07 $ 100.90 $ 171.04 $ 357.06
- ------------------------------------------------------------------------------------------
</TABLE>
- ----------
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity payout option at the end of any of the periods shown
in the examples. This is because if the amount applied to purchase an
annuity payout option is less than $2,000, or the initial payment is less
than $20, we may pay the amount to you in a single sum instead of as
payments under an annuity payout option. See "Accessing your money."
IF YOU ELECT A VARIABLE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see Note (1) above), and you
elect a variable annuity payout option, the expenses shown in the above example
for "if you do not surrender your contract" would, in each case, be increased by
$4.34 based on the average amount applied to annuity payout options in 1999. See
"Annuity administrative fee" under "Charges and expenses."
<PAGE>
- -------
18
- --------------------------------------------------------------------------------
EXAMPLES: EQUI-VEST SERIES 500 CONTRACTS
For the series 500 Roth Advantage contract, the examples show the expenses that
a hypothetical contract owner would pay in the situations illustrated. We assume
a single contribution of $1,000 is invested in one of the variable investment
options listed and a 5% annual return is earned on assets in that option.(1) The
annual administrative charge is based on charges that apply to a mix of
estimated contract sizes, resulting in an estimated administrative charge for
the purpose of these examples of $0.51 per $1,000. We also assume there is no
waiver of the withdrawal charge. Other than as indicated above, the charges and
expenses used in the examples are the maximum charges rather than the lower
current charges.
These examples should not be considered a representation of past or future
expense for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END IF YOU DO NOT SURRENDER YOUR CONTRACT AT
OF EACH PERIOD SHOWN, THE EXPENSES THE END OF EACH PERIOD SHOWN, THE
WOULD BE: EXPENSES WOULD BE:
- ------------------------------------------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
EQ/Aggressive Stock $ 83.42 $ 144.18 $ 207.49 $ 311.73 $ 28.24 $ 86.58 $ 147.49 $ 311.73
Alliance Common Stock $ 82.03 $ 140.05 $ 200.23 $ 297.51 $ 26.77 $ 82.20 $ 140.23 $ 297.51
Alliance Conservative Investors $ 83.71 $ 145.07 $ 209.04 $ 314.75 $ 28.56 $ 87.52 $ 149.04 $ 314.75
Alliance Equity Index $ 80.04 $ 134.12 $ 189.78 $ 276.84 $ 24.67 $ 75.91 $ 129.78 $ 276.84
Alliance Global $ 85.20 $ 149.48 $ 216.34 $ 329.72 $ 30.13 $ 92.20 $ 156.76 $ 329.72
Alliance Growth and Income $ 83.42 $ 144.18 $ 207.49 $ 311.73 $ 28.24 $ 86.58 $ 147.49 $ 311.73
Alliance Growth Investors $ 83.22 $ 143.59 $ 206.45 $ 309.71 $ 28.03 $ 85.96 $ 146.45 $ 309.71
Alliance High Yield $ 83.52 $ 144.48 $ 208.00 $ 312.74 $ 28.35 $ 86.89 $ 148.00 $ 312.74
Alliance Intermediate Government
Securities $ 82.72 $ 142.12 $ 203.86 $ 304.65 $ 27.51 $ 84.39 $ 143.86 $ 304.65
Alliance International $ 87.49 $ 156.22 $ 227.38 $ 352.23 $ 32.54 $ 99.35 $ 168.50 $ 352.23
Alliance Money Market $ 80.93 $ 136.79 $ 194.49 $ 286.19 $ 25.62 $ 78.74 $ 134.49 $ 286.19
EQ/Alliance Premier Growth $ 88.48 $ 159.15 - - $ 33.59 $ 102.44 - -
Alliance Quality Bond $ 82.82 $ 142.41 $ 204.38 $ 305.66 $ 27.61 $ 84.70 $ 144.38 $ 305.66
Alliance Small Cap Growth $ 85.20 $ 149.48 $ 216.34 $ 329.72 $ 30.13 $ 92.20 $ 156.76 $ 329.72
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
19
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
- ------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Alliance Technology $ 88.48 $ 159.15 - -
EQ/Balanced $ 83.22 $ 143.59 $ 206.45 $ 309.71
Capital Guardian Research $ 86.49 $ 153.30 - -
Capital Guardian U.S. Equity $ 86.49 $ 153.30 - -
EQ/Evergreen $ 86.49 $ 153.30 $ 222.60 $ 342.51
EQ/Evergreen Foundation $ 86.49 $ 153.30 $ 222.60 $ 342.51
MFS Emerging Growth Companies $ 86.99 $ 154.76 $ 224.99 $ 347.38
MFS Growth with Income $ 86.49 $ 153.30 $ 222.60 $ 342.51
MFS Research $ 86.49 $ 153.30 $ 222.60 $ 342.51
Mercury Basic Value Equity $ 86.49 $ 153.30 $ 222.60 $ 342.51
Mercury World Strategy $ 88.98 $ 160.60 $ 234.52 $ 366.63
Morgan Stanley Emerging Markets Equity $ 94.44 $ 176.54 $ 260.31 $ 417.55
EQ/Putnam Balanced $ 86.00 $ 151.83 $ 220.19 $ 337.61
EQ/Putnam Growth & Income Value $ 86.49 $ 153.30 $ 222.60 $ 342.51
T. Rowe Price Equity Income $ 86.49 $ 153.30 $ 222.60 $ 342.51
T. Rowe Price International Stock $ 89.47 $ 162.06 $ 236.89 $ 371.38
Warburg Pincus Small Company Value $ 87.98 $ 157.69 $ 229.77 $ 357.06
- ------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
- ------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Alliance Technology $ 33.59 $ 102.44 - -
EQ/Balanced $ 28.03 $ 85.96 $ 146.45 $ 309.71
Capital Guardian Research $ 31.49 $ 96.24 - -
Capital Guardian U.S. Equity $ 31.49 $ 96.24 - -
EQ/Evergreen $ 31.49 $ 96.24 $ 163.41 $ 342.51
EQ/Evergreen Foundation $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Emerging Growth Companies $ 32.02 $ 97.80 $ 165.96 $ 347.38
MFS Growth with Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Research $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury Basic Value Equity $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury World Strategy $ 34.12 $ 103.99 $ 176.10 $ 366.63
Morgan Stanley Emerging Markets Equity $ 39.89 $ 120.89 $ 203.53 $ 417.55
EQ/Putnam Balanced $ 30.97 $ 94.69 $ 160.86 $ 337.61
EQ/Putnam Growth & Income Value $ 31.49 $ 96.24 $ 163.41 $ 342.51
T. Rowe Price Equity Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
T. Rowe Price International Stock $ 34.64 $ 105.53 $ 178.62 $ 371.38
Warburg Pincus Small Company Value $ 33.07 $ 100.90 $ 171.04 $ 357.06
- ------------------------------------------------------------------------------------------
</TABLE>
- ----------
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity payout option at the end of any of the periods shown
in the examples. This is because if the amount applied to purchase an
annuity payout option is less than $2,000, or the initial payment is less
than $20, we may pay the amount to you in a single sum instead of payments
under an annuity payout option. See "Accessing your money."
IF YOU ELECT A VARIABLE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see note (1) above), and you
elect a variable annuity payout option, the expenses shown in the above example
for "if you do not surrender your contract" would, in each case, be increased by
$4.34 based on the average amount applied to annuity payout options in 1999. See
"Annuity administrative fee" under "Charges and expenses."
<PAGE>
- -------
20
- --------------------------------------------------------------------------------
EXAMPLES: EQUI-VEST SERIES 100 AND 200 CONTRACTS
The examples below show the expenses that a hypothetical contract owner would
pay in the situations illustrated. We assume a $1,000 contribution is invested
in one of the variable investment options listed, and a 5% annual return is
earned on the assets in that option.(1) We also assume there is no waiver of the
withdrawal charge. The annual administrative charge is based on charges that
apply to a mix of estimated contract sizes, resulting in an estimated
administrative charge for the purpose of these examples of $0.51 per $1,000.
Other than as indicated above, the charges and expenses used to compute the
examples below are the maximum expenses (taking into account the expense
limitation at an annual rate of 1.75% for the EQ/Aggressive Stock, EQ/Balanced,
Alliance Common Stock and Alliance Money Market options) rather than the lower
current charges.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
FOR IRA (TRADITIONAL, STANDARD ROTH AND CERTAIN QP IRA(2) CONTRACTS WHERE THE
FREE WITHDRAWAL AMOUNT APPLIES AFTER THE THIRD CONTRACT YEAR):
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF EACH
PERIOD SHOWN,
THE EXPENSES WOULD BE:
- -------------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 80.77 $ 124.26 $ 163.50 $ 254.45
Alliance Common Stock $ 80.77 $ 124.26 $ 163.50 $ 254.45
Alliance Conservative Investors $ 83.33 $ 132.00 $ 176.57 $ 281.82
Alliance Equity Index $ 79.68 $ 120.97 $ 157.93 $ 242.66
Alliance Global $ 84.81 $ 136.45 $ 184.04 $ 297.29
Alliance Growth and Income $ 83.04 $ 131.11 $ 175.07 $ 278.70
Alliance Growth Investors $ 82.84 $ 130.51 $ 174.07 $ 276.62
Alliance High Yield $ 83.13 $ 131.41 $ 175.57 $ 279.74
Alliance Intermediate Government Securities $ 82.35 $ 129.03 $ 171.56 $ 271.38
Alliance International $ 87.08 $ 143.24 $ 195.40 $ 320.55
Alliance Money Market $ 80.77 $ 124.26 $ 163.50 $ 254.45
EQ/Alliance Premier Growth $ 88.07 $ 146.18 - -
Alliance Quality Bond $ 82.44 $ 129.33 $ 172.06 $ 272.43
Alliance Small Cap Growth $ 84.81 $ 136.45 $ 184.04 $ 297.29
EQ/Alliance Technology $ 88.07 $ 146.18 - -
EQ/Balanced $ 80.77 $ 124.26 $ 163.50 $ 254.45
Capital Guardian Research $ 86.09 $ 140.29 - -
Capital Guardian U.S. Equity $ 86.09 $ 140.29 - -
EQ/Evergreen $ 86.09 $ 140.29 $ 190.48 $ 310.50
EQ/Evergreen Foundation $ 86.09 $ 140.29 $ 190.48 $ 310.50
MFS Emerging Growth Companies $ 86.59 $ 141.77 $ 192.94 $ 315.54
MFS Growth with Income $ 86.09 $ 140.29 $ 190.48 $ 310.50
MFS Research $ 86.09 $ 140.29 $ 190.48 $ 310.50
Mercury Basic Value Equity $ 86.09 $ 140.29 $ 190.48 $ 310.50
Mercury World Strategy $ 88.56 $ 147.65 $ 202.75 $ 335.43
Morgan Stanley Emerging Markets Equity $ 93.99 $ 163.71 $ 229.29 $ 388.06
EQ/Putnam Balanced $ 85.60 $ 138.81 $ 188.00 $ 305.44
EQ/Putnam Growth & Income Value $ 86.09 $ 140.29 $ 190.48 $ 310.50
T. Rowe Price Equity Income $ 86.09 $ 140.29 $ 190.48 $ 310.50
T. Rowe Price International Stock $ 89.05 $ 149.12 $ 205.19 $ 340.33
Warburg Pincus Small Company Value $ 87.57 $ 144.71 $ 197.86 $ 325.53
- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -------
21
- --------------------------------------------------------------------------------
FOR QP IRA(3) CONTRACTS (WHERE THE FREE WITHDRAWAL AMOUNT APPLIES IN THE FIRST
CONTRACT YEAR):
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF EACH
PERIOD SHOWN,
THE EXPENSES WOULD BE:
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 74.58 $ 117.68 $ 163.50 $ 254.45
Alliance Common Stock $ 74.58 $ 117.68 $ 163.50 $ 254.45
Alliance Conservative Investors $ 77.16 $ 125.48 $ 176.57 $ 281.82
Alliance Equity Index $ 73.49 $ 114.37 $ 157.93 $ 242.66
Alliance Global $ 78.65 $ 129.95 $ 184.04 $ 297.29
Alliance Growth and Income $ 76.86 $ 124.58 $ 175.07 $ 278.70
Alliance Growth Investors $ 76.67 $ 123.98 $ 174.07 $ 276.62
Alliance High Yield $ 76.96 $ 124.88 $ 175.57 $ 279.74
Alliance Intermediate Government
Securities $ 76.17 $ 122.48 $ 171.56 $ 271.38
Alliance International $ 80.93 $ 136.79 $ 195.40 $ 320.55
Alliance Money Market $ 74.58 $ 117.68 $ 163.50 $ 254.45
EQ/Alliance Premier Growth $ 81.93 $ 139.75 - -
Alliance Quality Bond $ 76.27 $ 122.78 $ 172.06 $ 272.43
Alliance Small Cap Growth $ 78.65 $ 129.95 $ 184.04 $ 297.29
EQ/Alliance Technology $ 81.93 $ 139.75 - -
EQ/Balanced $ 74.58 $ 117.68 $ 163.50 $ 254.45
Capital Guardian Research $ 79.94 $ 133.82 - -
Capital Guardian U.S. Equity $ 79.94 $ 133.82 - -
EQ/Evergreen $ 79.94 $ 133.82 $ 190.48 $ 310.50
EQ/Evergreen Foundation $ 79.94 $ 133.82 $ 190.48 $ 310.50
MFS Emerging Growth Companies $ 80.44 $ 135.31 $ 192.94 $ 315.54
MFS Growth with Income $ 79.94 $ 133.82 $ 190.48 $ 310.50
MFS Research $ 79.94 $ 133.82 $ 190.48 $ 310.50
Mercury Basic Value Equity $ 79.94 $ 133.82 $ 190.48 $ 310.50
Mercury World Strategy $ 82.42 $ 141.23 $ 202.75 $ 335.43
Morgan Stanley Emerging Markets
Equity $ 87.88 $ 157.39 $ 229.29 $ 388.06
EQ/Putnam Balanced $ 79.45 $ 132.33 $ 188.00 $ 305.44
EQ/Putnam Growth & Income Value $ 79.94 $ 133.82 $ 190.48 $ 310.50
T. Rowe Price Equity Income $ 79.94 $ 133.82 $ 190.48 $ 310.50
T. Rowe Price International Stock $ 82.92 $ 142.71 $ 205.19 $ 340.33
Warburg Pincus Small Company Value $ 81.43 $ 138.27 $ 197.86 $ 325.53
- -----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
22
- --------------------------------------------------------------------------------
FOR NQ CONTRACTS:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF EACH
PERIOD SHOWN,
THE EXPENSES WOULD BE:
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 74.58 $ 117.68 $ 160.57 $ 217.78
Alliance Common Stock $ 74.58 $ 117.68 $ 160.57 $ 217.78
Alliance Conservative Investors $ 77.16 $ 125.48 $ 174.46 $ 246.11
Alliance Equity Index $ 73.49 $ 114.37 $ 154.65 $ 205.57
Alliance Global $ 78.65 $ 129.95 $ 182.41 $ 262.12
Alliance Growth and Income $ 76.86 $ 124.58 $ 172.87 $ 242.88
Alliance Growth Investors $ 76.67 $ 123.98 $ 171.80 $ 240.72
Alliance High Yield $ 76.96 $ 124.88 $ 173.40 $ 243.95
Alliance Intermediate Government
Securities $ 76.17 $ 122.48 $ 169.14 $ 235.30
Alliance International $ 80.93 $ 136.79 $ 194.49 $ 286.19
Alliance Money Market $ 74.58 $ 117.68 $ 160.57 $ 217.78
EQ/Alliance Premier Growth $ 81.93 $ 139.75 - -
Alliance Quality Bond $ 76.27 $ 122.78 $ 169.67 $ 236.39
Alliance Small Cap Growth $ 78.65 $ 129.95 $ 182.41 $ 262.12
EQ/Alliance Technology $ 81.93 $ 139.75 - -
EQ/Balanced $ 74.58 $ 117.68 $ 160.57 $ 217.78
Capital Guardian Research $ 79.94 $ 133.82 - -
Capital Guardian U.S. Equity $ 79.94 $ 133.82 - -
EQ/Evergreen $ 79.94 $ 133.82 $ 189.25 $ 275.79
EQ/Evergreen Foundation $ 79.94 $ 133.82 $ 189.25 $ 275.79
MFS Emerging Growth Companies $ 80.44 $ 135.31 $ 191.87 $ 281.01
MFS Growth with Income $ 79.94 $ 133.82 $ 189.25 $ 275.79
MFS Research $ 79.94 $ 133.82 $ 189.25 $ 275.79
Mercury Basic Value Equity $ 79.94 $ 133.82 $ 189.25 $ 275.79
Mercury World Strategy $ 82.42 $ 141.23 $ 202.30 $ 301.59
Morgan Stanley Emerging Markets
Equity $ 87.88 $ 157.39 $ 229.29 $ 356.09
EQ/Putnam Balanced $ 79.45 $ 132.33 $ 186.62 $ 270.55
EQ/Putnam Growth & Income Value $ 79.94 $ 133.82 $ 189.25 $ 275.79
T. Rowe Price Equity Income $ 79.94 $ 133.82 $ 189.25 $ 275.79
T. Rowe Price International Stock $ 82.92 $ 142.71 $ 204.90 $ 306.68
Warburg Pincus Small Company Value $ 81.43 $ 138.27 $ 197.10 $ 291.35
- -----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
23
- --------------------------------------------------------------------------------
FOR ALL SERIES 100 AND 200 CONTRACTS:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT THE END OF EACH
PERIOD SHOWN,
THE EXPENSES WOULD BE:
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 18.90 $ 58.49 $ 100.57 $ 217.78
Alliance Common Stock $ 18.90 $ 58.49 $ 100.57 $ 217.78
Alliance Conservative Investors $ 21.63 $ 66.75 $ 114.46 $ 246.11
Alliance Equity Index $ 17.75 $ 54.98 $ 94.65 $ 205.57
Alliance Global $ 23.20 $ 71.49 $ 122.41 $ 262.12
Alliance Growth and Income $ 21.31 $ 65.80 $ 112.87 $ 242.88
Alliance Growth Investors $ 21.11 $ 65.16 $ 111.80 $ 240.72
Alliance High Yield $ 21.42 $ 66.11 $ 113.40 $ 243.95
Alliance Intermediate Government
Securities $ 20.58 $ 63.58 $ 109.14 $ 235.30
Alliance International $ 25.62 $ 78.74 $ 134.49 $ 286.19
Alliance Money Market $ 18.90 $ 58.49 $ 100.57 $ 217.78
EQ/Alliance Premier Growth $ 26.67 $ 81.88 - -
Alliance Quality Bond $ 20.69 $ 63.89 $ 109.67 $ 236.39
Alliance Small Cap Growth $ 23.20 $ 71.49 $ 122.41 $ 262.12
EQ/Alliance Technology $ 26.67 $ 81.88 - -
EQ/Balanced $ 18.90 $ 58.49 $ 100.57 $ 217.78
Capital Guardian Research $ 24.57 $ 75.60 - -
Capital Guardian U.S. Equity $ 24.57 $ 75.60 - -
EQ/Evergreen $ 24.57 $ 75.60 $ 129.25 $ 275.79
EQ/Evergreen Foundation $ 24.57 $ 75.60 $ 129.25 $ 275.79
MFS Emerging Growth Companies $ 25.09 $ 77.17 $ 131.87 $ 281.01
MFS Growth with Income $ 24.57 $ 75.60 $ 129.25 $ 275.79
MFS Research $ 24.57 $ 75.60 $ 129.25 $ 275.79
Mercury Basic Value Equity $ 24.57 $ 75.60 $ 129.25 $ 275.79
Mercury World Strategy $ 27.19 $ 83.45 $ 142.30 $ 301.59
Morgan Stanley Emerging Markets
Equity $ 32.96 $ 100.59 $ 170.53 $ 356.09
EQ/Putnam Balanced $ 24.04 $ 74.02 $ 126.62 $ 270.55
EQ/Putnam Growth & Income Value $ 24.57 $ 75.60 $ 129.25 $ 275.79
T. Rowe Price Equity Income $ 24.57 $ 75.60 $ 129.25 $ 275.79
T. Rowe Price International Stock $ 27.72 $ 85.02 $ 144.90 $ 306.68
Warburg Pincus Small Company Value $ 26.14 $ 80.31 $ 137.10 $ 291.35
- -----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
24
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity payout option at the end of any of the periods
shown in the examples. This is because if the amount applied to purchase
an annuity payout option is less than $2,000, or the initial payment is
less than $20, we may pay the amount to you in a single sum instead of as
payments under an annuity payout option. See "Accessing your money."
(2) These expenses also apply to a QP IRA with the number 11933I in the lower
left corner of the first page of your contract, or those QP IRA contracts
issued in Oregon.
(3) These expenses apply only to a QP IRA with the number 92QPI in the lower
left corner of the first page of your contract.
IF YOU ELECT A VARIABLE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see Note (1) above), and you
elect a variable annuity payout option, the expenses shown in the above example
for "if you do not surrender your contract" would, in each case, be increased by
$4.34 based on the average amount applied to annuity payout options in 1999. See
"Annuity administrative fee" under "Charges and expenses."
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this prospectus, for the unit values and
number of units outstanding as of the periods shown for each of the variable
investment options available as of December 31, 1999.
<PAGE>
1 Contract features and benefits
- ------
25
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum contribution amount for each type and
series of contract purchased. The minimum contribution amount under our
automatic investment program is $20. We discuss the automatic investment program
under "About other methods of payment" in "More information" later in this
prospectus. The following table summarizes our rules regarding contributions to
your contract.
- ------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining contract
benefits. The annuitant is not necessarily the contract owner.
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
CONTRACT ANNUITANT MINIMUM SOURCE OF LIMITATIONS ON
TYPE ISSUE AGES* CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NQ 0-79 Not applicable.
o $1,000 (initial), o After-tax money.
o $50 (additional) o Paid to us by check or
(all series) transfer of contract
value in a tax deferred
exchange under Section
1035 of the Internal
Revenue Code.
o Paid to us by an employer
who establishes a payroll
deduction program.
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------
26
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
CONTRACT ANNUITANT MINIMUM SOURCE OF LIMITATIONS ON
TYPE ISSUE AGES* CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Traditional IRA 0-70 o $20 (initial and o "Regular" traditional o For all types of IRAs,
additional) (series IRA contributions regular IRA
100 and 200) either made by you contributions may
or paid to us by an not exceed $2,000
o $50 (initial and employer who for a year.
additional) (series establishes a payroll
300 and 400) deduction program o No additional regular
IRA contributions in
o Rollovers from a the year you turn age
TSA. 70 1/2 and thereafter.
o Rollovers from o Rollover and direct
another traditional transfer contributions
individual retirement after age 70 1/2 must
arrangement. be net of required
minimum distributions.
o Direct
custodian-to-custodian
transfers from other o Contributions are
traditional individual subject to income tax
retirement rules.
arrangements.
o Although we accept
rollover and direct
transfer contributions
under the Traditional
IRA contracts, we
intend that these
contracts be used
for ongoing regular
contributions.
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -------
27
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
CONTRACT ANNUITANT MINIMUM SOURCE OF LIMITATIONS ON
TYPE ISSUE AGES* CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Standard Roth IRA 0-79 o $20 (initial and o Regular after-tax o For all types of IRAs,
and Roth Advantage additional) (series contributions either regular IRA
100 and 200) made by you or paid contributions may
to us by an employer not exceed $2,000
o $50 (initial and who establishes a for a year.
additional) (series payroll deduction
300, 400, and 500) program. o Contributions are
subject to income
o Rollovers from limits and other tax
another Roth IRA. rules. See "Tax
information -
o Conversion rollovers Contributions to
from a Traditional Roth IRAs."
IRA.
o Direct transfers from
another Roth IRA.
- -----------------------------------------------------------------------------------------------------------------
QP traditional IRA 0-79 o $1,000 (series 100 o Rollovers from a o Rollover
and 200) qualified plan. contributions after
age 70 1/2 must be
o $2,500 (series 300 o Rollovers from a net of required
and 400) TSA. minimum
distributions.
o The EQUIVEST QP
Traditional IRA o "Regular" after-tax
contract is intended contributions are not
to be a conduit IRA. permitted.
Only rollovers
from a qualified
plan or TSA are
permitted.
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
* For Traditional IRAs, the maximum issue age is 70, but we will issue up to
age 79 if the contribution is a rollover contribution. For all other IRAs
we will issue contracts up to annuitant ages 80-83 with our prior approval.
See "Tax information" for a more detailed discussion of sources of contributions
and certain contribution limitations. We may refuse to accept any contribution
if the sum of all contributions under all EQUI-VEST contracts with the same
annuitant would then total more than $1,000,000. We may also refuse to accept
any contribution if the sum of all contributions under all Equitable Life
annuity accumulation contracts that you own would then total more than
$2,500,000.
For information on when contributions are credited see "Dates and prices at
which contract events occur" under "More information" later in this prospectus.
<PAGE>
- ----------
28
- --------------------------------------------------------------------------------
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different than the owner.
Under any type of the IRA contract, the owner and annuitant must be the same
person.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be made by check drawn on a U.S. bank,
in U.S. dollars, and made payable to Equitable Life. We do not accept
third-party checks endorsed to us except for rollover contributions, tax-free
exchanges or trustee checks that involve no refund. All checks are subject to
our ability to collect the funds. We reserve the right to reject a payment if it
is received in an unacceptable form.
Additional contributions may also be made by wire transfer or our automatic
investment program. The method of payment is discussed in detail in "More
information" later in this prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the contribution. If any information is
missing or unclear, we will try to obtain that information. If we are unable to
obtain all of the information we require within five business days after we
receive an incomplete application or form, we will inform the financial
professional submitting the application on your behalf. We will then return the
contribution to you unless you specifically direct us to keep your contribution
until we receive the required information.
Generally, you may make additional contributions at any time. You may do so in
single sum amounts, on a regular basis, or as your financial situation permits.
- --------------------------------------------------------------------------------
Generally our "business day" is any day on which Equitable Life is open and the
New York Stock Exchange is open for trading. We may, however, close due to
emergency conditions.
- --------------------------------------------------------------------------------
SECTION 1035 EXCHANGES
You may apply the value of an existing nonqualified deferred annuity contract
(or life insurance or endowment contract) to purchase an NQ contract in a
tax-free exchange if you follow certain procedures as shown in the form that we
require you to use. Also see "Tax information" later in this prospectus.
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option and the fixed maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. Listed below
are the currently available portfolios, their investment objectives, and their
advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options.
- --------------------------------------------------------------------------------
<PAGE>
- -----
29
- --------------------------------------------------------------------------------
PORTFOLIOS OF EQ ADVISORS TRUST
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQ/Aggressive Stock Long-term growth of capital Alliance Capital Management L.P.,
Massachusetts Financial Services Company
- -------------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock Long-term growth of capital and increasing Alliance Capital Management L.P.
income
- -------------------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors High total return without, in the adviser's Alliance Capital Management L.P.
opinion, undue risk to principal
- -------------------------------------------------------------------------------------------------------------------------------
Alliance Equity Index Total return (before EQ Advisors Trust and Alliance Capital Management L.P.
Separate Account A annual expenses) that
approximates the total return performance of the
Standard & Poor's 500 Composite Stock Price
Index
- -------------------------------------------------------------------------------------------------------------------------------
Alliance Global Long-term growth of capital Alliance Capital Management L.P.
- -------------------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income High total return through a combination of Alliance Capital Management L.P.
current income and capital appreciation
- -------------------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors High total return consistent with the adviser's Alliance Capital Management L.P.
determination of reasonable risk
- -------------------------------------------------------------------------------------------------------------------------------
Alliance High Yield High return by maximizing current income and, Alliance Capital Management L.P.
to the extent consistent with that objective,
capital appreciation
- -------------------------------------------------------------------------------------------------------------------------------
Alliance Intermediate High current income consistent with relative Alliance Capital Management L.P.
Government Securities stability of principal
- -------------------------------------------------------------------------------------------------------------------------------
Alliance International Long-term growth of capital Alliance Capital Management L.P.
- -------------------------------------------------------------------------------------------------------------------------------
Alliance Money Market High level of current income while preserving Alliance Capital Management L.P.
assets and maintaining liquidity
- -------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth Long-term growth of capital Alliance Capital Management L.P.
- -------------------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond High current income consistent with preservation Alliance Capital Management L.P.
of capital
- -------------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth Long-term growth of capital Alliance Capital Management L.P.
- -------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology Long-term growth of capital Alliance Capital Management L.P.
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -------
30
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQ/Balanced High return through a combination of current Alliance Capital Management L.P.
income and capital appreciation Capital Guardian Trust Company,
Prudential Investments Fund
Management, LLC,
Jennison Associates, LLC.
- -------------------------------------------------------------------------------------------------------------------------------
Capital Guardian Research Long-term growth of capital Capital Guardian Trust Company
- -------------------------------------------------------------------------------------------------------------------------------
Capital Guardian U.S. Equity Long-term growth of capital Capital Guardian Trust Company
- -------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Long-term growth of capital Evergreen Asset Management Corp.
- -------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Foundation In order of priority, reasonable income, Evergreen Asset Management Corp.
conservation of capital, and capital appreciation
- -------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Long-term capital growth Massachusetts Financial Services Company
Companies
- -------------------------------------------------------------------------------------------------------------------------------
MFS Growth with Income Reasonable current income and long-term Massachusetts Financial Services Company
growth of capital and income
- -------------------------------------------------------------------------------------------------------------------------------
MFS Research Long-term growth of capital and future income Massachusetts Financial Services Company
- -------------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity Capital appreciation and, secondarily, income Mercury Asset Management US
- -------------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy High total investment return Mercury Asset Management US
- -------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Long-term capital appreciation Morgan Stanley Asset Management
Markets Equity
- -------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced Balanced investment Putnam Investment Management, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Capital growth, current income is a secondary Putnam Investment Management, Inc.
Value objective
- -------------------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income Substantial dividend income and also capital T. Rowe Price Associates, Inc.
appreciation
- -------------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Long-term growth of capital Rowe Price-Fleming International, Inc.
Stock
- -------------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Long-term capital appreciation Warburg Pincus Asset Management, Inc.
Value
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Other important information about the portfolios is included in the prospectus
for EQ Advisors Trust attached at the end of this prospectus.
<PAGE>
- -------
31
- --------------------------------------------------------------------------------
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account in "More information."
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. The rate may be
different depending upon certain factors including the type and series of your
contract and when the allocation is made.
Therefore, different interest rates may apply to different amounts in the
guaranteed interest option.
We credit interest daily to amounts in the guaranteed interest option. There are
three levels of interest in effect at the same time in the guaranteed interest
option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. All interest rates are effective annual rates, but
before deduction of annual administrative charges or any withdrawal charges.
The minimum yearly guaranteed interest rate is 4% for 2000. The yearly rates we
set will never be less than the minimum guaranteed interest rate of 3% for the
life of the contract. A 4% minimum may apply under some contracts. Current
interest rates will never be less than the yearly guaranteed interest rate.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years in states where they are approved. You can allocate your contributions to
one or more of these fixed maturity options. However, you may not allocate more
than one contribution to any one fixed maturity option. Your contributions will
accumulate interest at the "rate to maturity" for each fixed maturity option.
The total amount you allocate to and accumulate in each fixed maturity option is
called the "fixed maturity amount." The fixed maturity options are only
available in states where approved. Your financial professional can provide your
state's approval status. For contracts issued in New York see "Charges and
expenses" for information on withdrawal charges when amounts are allocated to
the fixed maturity options.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution. If you make any withdrawals or
transfers from a fixed maturity option before the maturity date, we will make a
"market value adjustment" that may increase or decrease any fixed maturity
amount you have left in that fixed maturity option. We discuss the market value
adjustment below and in greater detail later in this prospectus in "More
information."
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amount will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on June 15th for each of the maturity years 2001 through 2010.
Not all of these fixed maturity options will be available for annuitants ages 76
and older. See "Allocating your contributions" below. As fixed maturity options
expire, we
<PAGE>
- --------
32
- --------------------------------------------------------------------------------
expect to add maturity years so that generally 10 fixed maturity options are
available at any time.
We will not accept allocations to a fixed maturity option if on the date the
contribution is to be applied:
o you previously allocated a contribution or made a transfer to the same
fixed maturity option; or
o the rate to maturity is 3% or less; or
o the fixed maturity option's maturity date is within the current calendar
year; or
o the fixed maturity option's maturity date is later than the date annuity
payments are to begin.
YOUR CHOICES AT THE MATURITY DATE. We will notify you at least 45 days before
each of your fixed maturity options is scheduled to mature. At that time, you
may choose to have one of the following take place on the maturity date, as long
as none of the conditions listed above or in "Allocating your contributions,"
below would apply:
(a) transfer the maturity value into another available fixed maturity option,
or into any of the variable investment options; or
(b) withdraw the maturity value (there may be a withdrawal charge).
Currently, if we do not receive your choice on or before the fixed maturity
option's maturity date, we will automatically transfer your maturity value into
the Alliance Money Market option, or another investment option if we are
required to do so by any state regulation or if we change our procedures in the
future. Such a case is the State of New York where we will transfer your
maturity value to the fixed maturity option scheduled to mature next unless we
are not offering other fixed maturity options, in which case we will transfer
your maturity value to the Alliance Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender or termination of your contract, or when we make deductions for
charges) from a fixed maturity option before it matures we will make a market
value adjustment, which will increase or decrease any fixed maturity amount you
have in that fixed maturity option. The amount of the adjustment will depend on
two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate an
amount to a fixed maturity option to the time that you take a withdrawal, the
market value adjustment will be negative. Likewise, if interest rates drop at
the end of that time, the market value adjustment will be positive. Also, the
amount of the market value adjustment, either up or down, will be greater the
longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this prospectus. Appendix III to this prospectus provides an example of how the
market value adjustment is calculated.
SELECTING YOUR INVESTMENT METHOD
You must choose one of the following methods for selecting your investment
options:
o MAXIMUM INVESTMENT OPTIONS CHOICE. Under this method you may allocate
contributions or transfer funds to any of the available investment options
listed in A and B in the investment options chart. You can make transfers
<PAGE>
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33
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whenever you choose. However, there will be restrictions on the amount you can
transfer out of the guaranteed interest option listed in A.
o MAXIMUM TRANSFER FLEXIBILITY. Under this method you may allocate contributions
or transfer funds to any of the available investment options listed in A in the
investment options chart and no transfer restrictions will apply.
o TEMPORARY REMOVAL OF TRANSFER RESTRICTIONS THAT APPLY TO THE INVESTMENT
METHODS. From time to time we may remove certain restrictions that apply to your
investment method. If we do so we will tell you. We will also tell you at least
45 days in advance of the day that we intend to reimpose the transfer
restrictions. When we reimpose the transfer restrictions that apply to your
investment method, amounts that are in any investment options that are not
available under your investment method can remain in these options, but you will
not be permitted to allocate new contributions or make additional transfers
(including through our rebalancing program) into these options.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
A
- --------------------------------------------------------------------------------
<S> <C>
o Guaranteed Interest Option
- --------------------------------------------------------------------------------
DOMESTIC STOCKS INTERNATIONAL STOCKS
- --------------------------------------------------------------------------------
o EQ/Aggressive Stock o Alliance Global
o Alliance Common Stock o Alliance International
o Alliance Equity Index o Morgan Stanley Emerging
o Alliance Growth and Income Markets Equity
o EQ/Alliance Premier Growth o T. Rowe Price International
o Alliance Small Cap Growth Stock
o EQ/Alliance Technology
o Capital Guardian Research
o Capital Guardian U.S. Equity
o EQ/Evergreen
o MFS Emerging Growth
Companies
o MFS Growth with Income
o MFS Research
o Mercury Basic Value Equity
o EQ/Putnam Growth & Income
Value
o T. Rowe Price Equity Income
o Warburg Pincus Small
Company Value
--------------------------------------------------------------------------------
BALANCED/HYBRID
- --------------------------------------------------------------------------------
o Alliance Growth Investors
o EQ/Balanced
o EQ/Evergreen Foundation
o Mercury World Strategy
o EQ/Putnam Balanced
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
B
- --------------------------------------------------------------------------------
FIXED INCOME BALANCED/HYBRID
- --------------------------------------------------------------------------------
o Alliance High Yield o Alliance Conservative
o Alliance Intermediate Investors
Government Securities
o Alliance Money Market
o Alliance Quality Bond
- --------------------------------------------------------------------------------
FIXED MATURITY OPTIONS
- --------------------------------------------------------------------------------
The fixed maturity options are only available in states where approved.
Transfer restrictions apply as indicated above under "Fixed maturity options and
maturity dates."
- --------------------------------------------------------------------------------
</TABLE>
<PAGE>
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o PRINCIPAL ASSURANCE ALLOCATION
Under this allocation program you select a fixed maturity option. We specify the
portion of your initial contribution to be allocated to that fixed maturity
option in an amount that will cause the maturity value to equal the amount of
your entire initial contribution on the fixed maturity option's maturity date.
The maturity date you select generally may not be later than 10 years, or
earlier than 6 years from your contract date. You allocate the rest of your
contribution to the variable investment options however you choose.
For example, if your initial contribution is $10,000, and on March 1, 2000 you
chose the fixed maturity option with a maturity date of June 15, 2009, since the
rate to maturity was 6.45% on March 1, 2000, we would have allocated $5,596 to
that fixed maturity option and the balance to your choice of variable investment
options. On the maturity date your value in the fixed maturity option would be
$10,000.
The principal assurance allocation is only available for annuitant ages 75 or
younger when the contract is issued. If you are purchasing an Equitable Life
traditional IRA or QP IRA contract, before you select a maturity year that would
extend beyond the year in which you will reach age 70 1/2, you should consider
whether your value in the variable investment options, or your other traditional
IRA funds are sufficient to meet your required minimum distributions. See "Tax
information." This feature is only available if the fixed maturity option is
available in your state.
ALLOCATING YOUR CONTRIBUTIONS
Once you have made your investment method choice, you may allocate your
contributions to one or more, or all of the investment options that you have
chosen, subject to any restrictions under the investment method you chose.
However, you may not allocate more than one contribution to any one fixed
maturity option. Allocations must be in whole percentages and you may change
your allocation percentages at any time. However, the total of your allocations
must equal 100%. Once your contributions are allocated to the investment
options, they become part of your account value. We discuss account value in
"Determining your contract's value." After your contract is issued, you may
request that we add or eliminate any variable investment options that result in
transfer restrictions. We reserve the right to deny your request. See
"Transferring your money among investment options."
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it to
us for a refund. To exercise this cancellation right you must mail the contract
directly to our processing office within 10 days after you receive it. In some
states, this "free look" period may be longer.
For contributions allocated to the variable investment options, your refund will
equal your contributions, reflecting any investment gain or loss that also
reflects the daily charges we deduct. For contributions allocated to the
guaranteed interest option, your refund will equal the amount of the
contributions but will not include interest. For contributions allocated to the
fixed maturity options, your refund will equal the amount of the contribution
allocated to the fixed maturity options reflecting any positive or negative
market value adjustments. Some states require that we refund the full amount of
your contribution (not including any investment gain or loss, interest, or
market value adjustment). For IRA contracts returned to us within seven days
after you receive it, we are required to refund the full amount of your
contribution.
We may require that you wait six months before you apply for a contract with us
again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" for possible consequences of cancelling your
contract.
<PAGE>
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In addition to the cancellation right described above, if you fully or partially
convert an existing Traditional IRA contract to a Standard Roth IRA or Roth
Advantage contract, you may cancel your Standard Roth IRA or Roth Advantage
contract and return to a Traditional IRA contract. Our processing office, or
your financial professional, can provide you with the cancellation instructions.
Ask for the form entitled "EQUI-VEST Roth IRA Re-Characterization Form."
<PAGE>
2 Determining your contract's value
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36
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YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the: (i) values you have allocated to the
variable investment options; (ii) the guaranteed interest option; and (iii) the
market adjusted amounts you have in the fixed maturity options. These amounts
are subject to certain fees and charges discussed under "Charges and expenses."
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less: (i) any
applicable withdrawal charges and (ii) the total amount or a pro rata portion of
the annual administrative charge. Please see "Surrendering your contract to
receive its cash value" in "Accessing your money."
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
The unit value for each variable investment option depends on the investment
performance of that option minus daily charges for mortality and expense risks
and other expenses. On any day, your value in any variable investment option
equals the number of units credited to that option, adjusted for any units
purchased for or deducted from your contract under that option, multiplied by
that day's value for one unit. The number of your contract units in any variable
investment option does not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal
charges); or
(iii) increased to reflect a transfer into, or decreased to reflect a
transfer out of a variable investment option.
In addition, the annual administrative charge, or third-party transfer or
exchange charge, will reduce the number of units credited to your contract. A
description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals and
transfers out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date is
the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value.
<PAGE>
3 Transferring your money among investment options
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37
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TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer some
or all of your account value among the investment options, subject to the
following:
o You must transfer at least $300 of account value or, if less, the entire
amount in the investment option. We may waive the $300 requirement.
o You may not transfer to a fixed maturity option in which you already have
value.
o You may not transfer to a fixed maturity option if its maturity date is
later than the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date the transfer may cause a market value adjustment.
o If you choose the maximum investment options choice method for selecting
investment options, the maximum amount you may transfer in any contract
year from the guaranteed interest option to any other investment option is
(a) 25% of the amount you had in the guaranteed interest option on the last
day of the prior contract year or, if greater, (b) the total of all amounts
you transferred from the guaranteed interest option to any other investment
option in the prior contract year.
If you transfer money from another financial institution into the guaranteed
interest option during your first contract year, and if you have selected
maximum investment options choice, you may, during the balance of that contract
year, transfer up to 25% of such initial guaranteed interest option balance to
any other investment option.
See Appendix I for transfer restrictions under original contracts.
Subject to the terms of your contract, upon advance notice, we may change or
establish additional restrictions on transfers among the investment options. A
transfer request does not change your percentages for allocating current or
future contributions among the investment options.
You may request a transfer in writing or by telephone using TOPS or online using
EQAccess. (We anticipate that transfers using EQAccess will be available by the
end of 2000). You must send in all signed written requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts to be transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
MARKET TIMING
You should note that the product is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in market
timing, making programmed transfers, frequent transfers or transfers that are
large in relation to the total assets of the underlying mutual fund portfolio.
Market timing strategies are disruptive to the underlying mutual fund portfolios
in which the variable investment options invest. If we determine that your
transfer patterns among the variable investment options reflect a market timing
strategy, we reserve the right to take action including, but not limited to:
restricting the availability of transfers through telephone requests, facsimile
transmissions, automated telephone services, Internet services or any electronic
transfer services. We may also refuse to act on transfer instructions of an
agent acting under a power of attorney who is acting on behalf of more than one
owner.
AUTOMATIC TRANSFER OPTIONS
INVESTMENT SIMPLIFIER
You may choose from two automatic options for transferring amounts from the
guaranteed interest option to the variable investment options. The transfer
options are the "fixed-dollar option" and the "interest sweep." You may select
one or the other, but not both.
<PAGE>
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FIXED-DOLLAR OPTION. Under this option you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice on a monthly basis. You can specify the number
of monthly transfers or instruct us to continue to make monthly transfers until
all available amounts in the guaranteed interest option have been transferred
out.
See Appendix II for transfer restrictions under original contracts.
In order to elect the fixed-dollar option you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. You also must elect to transfer at least $50 per month. The
fixed-dollar option is subject to the guaranteed interest option transfer
limitation described above.
The fixed-dollar option is a form of dollar-cost averaging. Dollar-cost
averaging allows you to gradually allocate amounts to the variable investment
options by periodically transferring approximately the same dollar amount to the
variable investment options you select. This will cause you to purchase more
units if the unit's value is low and fewer units if the unit's value is high.
Therefore, you may get a lower average cost per unit over the long term. This
plan of investing, however, does not guarantee that you will earn a profit or be
protected against losses.
INTEREST SWEEP. Under the interest sweep, we will make transfers on a monthly
basis from amounts in the guaranteed interest option. The amount we will
transfer will be the interest credited to amounts you have in the guaranteed
interest option from the last business day of the prior month to the last
business day of the current month. You must have at least $7,500 in the
guaranteed interest option on the date we receive your election and on the last
business day of each month thereafter to participate in the interest sweep
option.
WHEN YOUR PARTICIPATION IN AN AUTOMATIC TRANSFER OPTION WILL END. Your
participation in an automatic transfer option will end:
o Under the fixed-dollar option, when either the number of designated monthly
transfers have been completed or the amount you have available in the
guaranteed interest option has been transferred out.
o Under the interest sweep, when the amount you have in the guaranteed
interest option falls below $7,500 (determined on the last business day of
the month) for two months in a row.
o Under either option, on the date we receive at our processing office, your
written request to cancel automatic transfers, or on the date your contract
terminates.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually).
While your rebalancing program is in effect, we will transfer amounts among each
variable investment option so that the percentage of your account value that you
specify is invested in each option at the end of each rebalancing date. Your
entire account value in the variable investment options must be included in the
rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional and/or
financial advisor before electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. To be eligible, you must have
at least $5,000 of account value in the variable investment options. Rebalancing
is not available for amounts you have allocated in the guaranteed interest
option or in the fixed maturity options.
You may change your allocation instructions or cancel the program at any time.
<PAGE>
4 Accessing your money
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39
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WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. For the tax consequences of taking
withdrawals, see "Tax information."
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
METHOD OF WITHDRAWAL
- --------------------------------------------------------------------------------
MINIMUM
CONTRACT LUMP SUM SYSTEMATIC DISTRIBUTION
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
NQ Yes Yes No
- --------------------------------------------------------------------------------
Traditional IRA Yes Yes Yes
- --------------------------------------------------------------------------------
QP IRA Yes Yes Yes
- --------------------------------------------------------------------------------
Standard Roth IRA Yes Yes No
- --------------------------------------------------------------------------------
Roth Advantage Yes Yes No
- --------------------------------------------------------------------------------
</TABLE>
LUMP SUM WITHDRAWALS (ALL CONTRACTS)
You may take lump sum withdrawals from your account value at any time while the
annuitant is living and before annuity payments begin. The minimum amount you
may withdraw at any time is $300. If you request a withdrawal that leaves your
account value less than $500, we may treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its cash
value" below.
Lump sum withdrawals in excess of the 10% free withdrawal amount may be subject
to a withdrawal charge. (See "10% free withdrawal charge amount" in "Charges and
expenses.")
SYSTEMATIC WITHDRAWALS (ALL CONTRACTS)
If you have at least $20,000 of account value in the variable investment options
and the guaranteed interest option you may elect systematic withdrawals. You may
elect to have your systematic withdrawals made on a monthly or quarterly basis.
The minimum amount you may take for each withdrawal is $300. We will make the
withdrawal on any day of the month that you select as long as it is not later
than the 28th day of the month. If you do not select a date, your withdrawals
will be made on the first day of the month. A check for the amount of the
withdrawal will be mailed to you or, if you prefer, we will electronically
transfer the money to your checking account.
You may withdraw either the amount of interest earned in the guaranteed interest
option or a fixed-dollar amount from either the variable investment options or
the guaranteed interest option. If you elect the interest option, a minimum of
$20,000 must be maintained in the guaranteed interest option. If you elect the
fixed-dollar option you do not have to maintain a minimum amount. You may elect
to have the amount of the withdrawal subtracted from your account value in one
of three ways:
(1) pro rata from more than one variable investment option (without using up
your total value in those options); or
(2) pro rata from more than one variable investment option (until your value in
those options is used up); or
(3) you may specify a dollar amount from only one variable investment option.
You can cancel the systematic withdrawal option at any time.
Amounts withdrawn in excess of the 10% free withdrawal amount may be subject to
a withdrawal charge.
MINIMUM DISTRIBUTION WITHDRAWALS (Traditional IRA and QP IRA contracts - See
"Tax information")
We offer the minimum distribution withdrawal option to help you meet lifetime
required minimum distributions under federal income tax rules. You may elect
this option in the year in which you reach age 70 1/2 and have account value in
the variable investment options and the guaranteed interest option of at least
$2,000. The minimum amount we will pay out is $300, or if less, your account
value. If your account value is less than $500 after the withdrawal, we may
terminate your contract and pay you its cash value. You may elect the method you
want us to use to calculate your
<PAGE>
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40
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minimum distribution withdrawal from the choices we offer. Currently, minimum
distribution withdrawal payments will be made annually.
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your values in the variable investment options and the guaranteed
interest option. If those amounts are insufficient, we will make up required
amounts from the fixed maturity options to the extent you have value in those
options. A market value adjustment may apply. We will calculate your payment
each year based on your account value at the end of each calendar year, based on
the method you choose.
- --------------------------------------------------------------------------------
We will send to Traditional IRA and QP IRA owners a form outlining the minimum
distribution options available in the year you reach age 70 1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your values in the variable investment options and the guaranteed
interest option. If there is insufficient value or no value in the variable
investment options, any additional amount of the withdrawal required or the
total amount of the withdrawal will be withdrawn from the fixed maturity options
in order of the earliest maturity date(s). A market value adjustment may apply
if withdrawals are taken from the fixed maturity options.
AUTOMATIC DEPOSIT SERVICE
If you are receiving required minimum distribution payments from a Traditional
IRA or QP IRA contract you may use our automatic deposit service.
Under this service we will automatically deposit the required minimum
distribution payment from your Traditional IRA or QP IRA contract directly into
an EQUI-VEST NQ or Roth IRA or an EQUI-VEST Express NQ or Roth IRA contract
according to your allocation instructions.
DEPOSIT OPTION FOR NQ CONTRACTS ONLY
You can elect the deposit option for your benefit while you live, or for the
benefit of your beneficiary.
Proceeds from your NQ contract can be deposited with us for a period you select
(including one for as long as the annuitant lives). We will hold the amounts in
our general account. We will credit interest on the amounts at a guaranteed rate
for the specified period. We will pay out the interest on the amount deposited
at least once each year.
If you elect this option for your benefit, you deposit the amount with us that
you would otherwise apply to an annuity payout option. If you elect this option
for your beneficiary before the annuitant's death, death benefit proceeds can be
left on deposit with us subject to certain restrictions, instead of being paid
out to the beneficiary.
Other restrictions apply to the deposit option. Your financial professional can
provide more information about this option, or you may call our processing
office.
SURRENDER OF YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. For a
surrender to be effective, we must receive your written request and your
contract at our processing office. We will determine your cash value on the date
we receive the required information. All benefits under the contract will
terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below. We
will usually pay the cash value within seven calendar days, but we may delay
payment as described in "When to expect payments" below. For the tax
consequences of surrenders, see "Tax information."
<PAGE>
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TERMINATION
We may terminate your contract and pay you the cash value if:
(1) your account value is less than $500 and you have not made contributions to
your contract for a period of three years; or
(2) you request a lump sum withdrawal that reduces your account value to an
amount less than $500; or
(3) you have not made any contributions within 120 days from your contract
date.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity payout option, payment of a death benefit, payment of any
amount you withdraw (less any withdrawal charge) and, upon surrender or
termination, payment of the cash value. We may postpone such payments or
applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your values in the guaranteed interest
option and the fixed maturity options (other than for death benefits) for up to
six months while you are living. We also may defer payments for a reasonable
amount of time (not to exceed 15 days) while we are waiting for a contribution
check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
EQUI-VEST offers you several choices of annuity payout options. Some enable you
to receive fixed annuity payments [which can be level or increasing,] and others
enable you to receive variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age at
contract issue.
ANNUITY PAYOUT OPTIONS
You can choose from among the following annuity payout options:
<TABLE>
<CAPTION>
<S> <C>
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable annuity payout options Life annuity (not available in New York)
Life annuity with period certain
- --------------------------------------------------------------------------------
</TABLE>
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period
<PAGE>
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certain cannot extend beyond the annuitant's life expectancy or the joint
life expectancy of you and your spouse. A life annuity with a period
certain is the form of annuity under the contracts that you will receive if
you do not elect a different payout option. In this case the period certain
will be based on the annuitant's age and will not exceed 10 years or the
annuitant's life expectancy.
o Life annuity with refund certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guarantee period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. Currently, this payout option is available only as a fixed
annuity.
The life annuity, life annuity with period certain, and life annuity with refund
certain payout options are available on a single life or joint and survivor life
basis. The joint and survivor life annuity guarantees payments for the rest of
the annuitant's life and, after the annuitant's death, to the survivor for life.
We may offer other payout options not outlined here. Your financial professional
can provide details.
FIXED ANNUITY PAYOUT OPTION
With fixed annuities, we guarantee fixed annuity payments that will be based
either on the tables of guaranteed annuity payments in your contract or on our
then current annuity rates, whichever is more favorable for you.
VARIABLE ANNUITY PAYOUT OPTIONS
Variable annuities may be funded through your choice of variable investment
options investing in portfolios of EQ Advisors Trust. The contract also offers a
fixed annuity payout option that can be elected in combination with the variable
annuity payout options. The amount of each variable annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate. Please see "Annuity unit values" in the SAI.
We also make the variable annuity payout options available to owners of our
single premium deferred annuity ("SPDA") contract and certain other combination
fixed and variable annuity contracts. Such contractholders who are considering
purchasing a variable payout option should also review the information in this
prospectus relating to the variable investment options. EQ Advisors Trust
prospectus (directly following this prospectus), and the sections of the SAI
which discuss the variable annuity payout option should also be reviewed.
We may offer other payout options not outlined here. Your financial professional
can provide details.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return your
contract before annuity payments begin. Unless you choose a different payout
option, we will pay annuity payments under a life annuity with a period certain
of 10 years. You choose whether these payments will be either fixed or variable.
You can choose the date annuity payments are to begin. You can change the date
your annuity payments are to begin anytime before that date as long as you do
not choose a date later than the 28th day of any month. Also, that date may not
be later than the contract date anniversary that follows the annuitant's 85th
birthday. This may be different in some states.
<PAGE>
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Before your annuity payments are to begin, we will notify you by letter that the
annuity payout options are available. Once you have selected a payout option and
payments have begun, no change can be made, other than transfers (if permitted
in the future) among the variable investment options if a variable annuity is
selected.
The amount of the annuity payments will depend on:
(1) the amount applied to purchase the annuity;
(2) the type of annuity chosen, and whether it is fixed or variable. If you
choose a variable annuity, we use an assumed base rate of 5% to calculate
the level of payments. However, in states where that rate is not permitted
the assumed base rate will be 3 1/2%. We provide information about the
assumed base rate in the SAI;
(3) in the case of a life annuity, the annuitant's age (or the annuitant's and
joint annuitant's ages); and
(4) in certain instances, the sex of the annuitant(s).
If, at the time you elect a payout option, the amount to be applied is less than
$2,000 or the initial payment under the form elected is less than $20 monthly,
we reserve the right to pay the account value in a single sum rather than as
payments under the payout option chosen.
<PAGE>
5 Charges and expenses
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CHARGES THAT EQUITABLE LIFE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o A charge for other expenses
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On the last day of the contract year an annual administrative charge, if
applicable
o Charge for third-party transfer or exchange (series 300, 400, and 500 only)
o At the time you make certain withdrawals or surrender your contract, or
your contract is terminated - a withdrawal charge
o At the time annuity payments are to begin - charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your
state. An annuity administrative fee may also apply
More information about these charges appears below. The charges differ depending
on which contract series you purchase.
We will not increase these charges for the life of your contract, except as
noted below. We may reduce certain charges under group or sponsored
arrangements. See "Group or sponsored arrangements" below.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
CHARGES UNDER THE CONTRACTS
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks. The mortality risk we assume
is the risk that annuitants as a group will live for a longer time than our
actuarial tables predict. If that happens, we would be paying more in annuity
benefits than we planned. For series 300, 400 and 500, we may change the
actuarial basis for our guaranteed annuity payment tables, but only for new
contributions and only at five year intervals from the contract date. Lastly, we
assume a mortality risk to the extent that at the time of death, the guaranteed
death benefit exceeds the cash value of the contract.
The expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
To the extent that the mortality and expense risk charges are not needed to
cover the actual expenses incurred, they may be considered an indirect
reimbursement for certain sales and promotional expenses relating to the
contracts.
For each series the daily charge is a percentage of net assets that is
equivalent to an annual rate of:
o 1.10% current and 1.75% maximum in each variable investment option under
series 300 and 400 contracts.
o 1.20% current and 1.75% maximum in each variable investment option for
series 500 contracts.
o 0.65% under series 100 contracts and 1.15% under series 200 contracts in
the Alliance Money Market, EQ/Balanced and Alliance Common Stock options.
o 0.50% under series 100 contracts and 1.09% under series 200 contracts for
all other variable investment options.
CHARGE FOR OTHER EXPENSES
We deduct this daily charge from the net assets in each variable investment
option. This charge, together with the
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annual administrative charge described below, is for providing administrative
and financial accounting services under the contracts.
The daily charge is equivalent to a maximum annual rate of:
(i) under series 100 contracts, 0.84% of the net assets in each variable
investment option. 0.60% of this charge is designed to reimburse us for research
and development costs and for administrative expenses that are not covered by
the annual administrative charge described below. The remaining 0.24% is to
reimburse us for the cost of financial accounting services we provide under the
contracts;
(ii) under series 200 contracts, the charge for expenses and financial
accounting is 0.25% of the net asset value in each variable investment option;
(iii) under series 300, 400 and 500 contracts, 0.25% of the net assets in each
variable investment option. For all variable investment options other than the
Alliance Money Market, Alliance Common Stock and EQ/Balanced options, we
currently deduct 0.24% of the net assets. We may, upon advance notice to you,
increase the charge to 0.25% of the net assets for these variable investment
options.
MAXIMUM TOTAL CHARGES
Under series 500 contracts, the total annual rate for the above charges is
1.45%. We may increase or decrease this total annual rate, but we may not
increase it above a maximum rate of 2.00%. We will only make any increase after
we have sent you advance notice. Any increase or decrease will apply only after
the date of the change. Any changes we make will reflect differences in costs
and anticipated expenses, and will not be unfairly discriminatory.
Under series 100 and 200 contracts for the Alliance Money Market, EQ/Balanced,
Alliance Common Stock and EQ/Aggressive Stock options, the combined amount of
the Separate Account A charges to these variable investment options and EQ
Advisors Trust charges for investment advisory fees and direct operating
expenses may not exceed a total annual rate of 1.75% of the value of the assets
held in each of those variable investment options.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on the last day of
each contract year. We will deduct a pro rata portion of the charge if you
surrender your contract, elect an annuity payout option, or the annuitant dies
during the contract year. The charge is deducted pro rata from the variable
investment options and the guaranteed interest option. If those amounts are
insufficient, we will make up the required amounts from the fixed maturity
options to the extent you have value in those options, unless you tell us
otherwise. Charges deducted from the fixed maturity options are considered
withdrawals and, as such, will result in a market value adjustment.
Under series 300, 400 and 500, during the first two contract years, the charge
is equal to $30 or, if less, 2% of your current account value. The charge is $30
for contract years three and later. We waive the charge if your account value is
at least $25,000 for an NQ contract or $20,000 for an IRA contract. We may
increase this charge if our administrative costs rise, but the charge will never
exceed $65 annually. We reserve the right to deduct this charge on a quarterly,
rather than annual basis.
Under series 100 and 200 the charge is equal to $30 or, if less, 2% of the
current account value plus any amount previously withdrawn during that contract
year. We waive this charge if your account value is at least $10,000.
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE
Under series 300, 400 and 500, we impose a charge for making a direct transfer
of amounts from your contract to a third party, such as in the case of a
trustee-to-trustee transfer for an IRA contract, or if you request that your
contract be exchanged for a contract issued by another insurance company. In
either case, we will deduct from your account value any withdrawal charge that
applies and (except for series 300 contracts issued in Florida) a charge of $25
for each direct transfer or exchange. We reserve the right to increase this
charge to a maximum of $65.
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WITHDRAWAL CHARGE
A withdrawal charge may apply in three circumstances: (1) you make one or more
withdrawals during a contract year; (2) you surrender your contract to receive
its cash value; or (3) we terminate your contract. The amount of the charge will
depend on whether the free withdrawal amount applies, and the availability of
one or more exceptions.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the amount of the withdrawal charge from
your account value. Any amount deducted to pay withdrawal charges is also
subject to a withdrawal charge. We deduct the withdrawal amount and the
withdrawal charge pro rata from the variable investment options and the
guaranteed interest option. If those amounts are insufficient, we will make up
the required amounts from the fixed maturity options with the earliest
maturities first. If we deduct all or a portion of the withdrawal charge from
the fixed maturity options, a market value adjustment may apply.
o FOR SERIES 100 AND 200 NQ CONTRACTS AND ALL SERIES 300, 400 AND 500
CONTRACTS
The amount of the withdrawal charge we deduct is equal to 6% of contributions
withdrawn that were made in the current and five prior contract years. In the
case of surrenders, we will pay you the greater of (i) the account value after
any withdrawal charge has been imposed (cash value), or (ii) the free withdrawal
amount plus 94% of the remaining account value.
Under series 100 and 200 NQ contracts, if the annuitant is age 59 or older when
the contract is issued, this percentage will be 95% in the fifth contract year
and 96% in the sixth contract year. There is a reduction in the withdrawal
charge for older annuitants in the fifth and sixth contract year.
For purposes of calculating the withdrawal charge, amounts withdrawn up to the
10% free withdrawal amount are not considered a withdrawal of any contribution.
We also treat contributions that have been invested the longest as being
withdrawn first. We treat contributions as withdrawn before earnings for
purposes of calculating the withdrawal charge. However, the federal income tax
rules treat earnings under most NQ contracts as withdrawn first. See "Tax
information."
For series 300 and 400 contracts, we reserve the right to change the amount of
the withdrawal charge, but it will not exceed 6% of the contributions withdrawn.
For series 500 contracts, we reserve the right to change the amount of the
withdrawal charge, but it will not exceed 8% of the contributions withdrawn.
Any change would not be unfairly discriminatory. We may also reduce the
withdrawal charge in order to comply with any state law requirement. See
"Contracts issued in New York - fixed maturity options" below.
o FOR SERIES 100 AND 200 TRADITIONAL IRA, QP IRA AND STANDARD ROTH IRA
The withdrawal charge equals a percentage of the amount withdrawn. The
percentage that applies depends on the contract year in which the withdrawal is
made, according to the following table:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
CONTRACT
YEAR(S) CHARGE
- --------------------------------------------------------------------------------
<S> <C>
1 through 5 6%*
6 through 8 5
9 4
10 3
11 2
12 1
13 and later 0
- --------------------------------------------------------------------------------
</TABLE>
* This percentage may be reduced at older ages for certain contract series.
Your Equitable associate can provide further details about the contract
series you own.
The total of all withdrawal charges assessed will not exceed 8% of all
contributions made during the current contract year and the nine contract years
before the withdrawal is made.
---------------------------------
We reserve the right to reduce or waive the withdrawal charge including
transfers to a Traditional IRA, QP IRA, and, Standard Roth IRA from another
EQUI-VEST contract. Any
<PAGE>
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such charge will not be unfairly discriminatory. The withdrawal charge may be
reduced in order to comply with any state law requirement.
The withdrawal charge does not apply in the circumstances described below.
WHEN WITHDRAWAL CHARGES DO NOT APPLY
The withdrawal charge does not apply in the circumstances described below.
o 10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10%
of your account value without paying a withdrawal charge. The 10% free
withdrawal amount is determined using your account value at the time you
request a withdrawal, minus any other withdrawals made during the contract
year.
o FOR SERIES 300, 400 AND 500 CONTRACTS
(i) Death or purchase of annuity. The withdrawal charge does not apply if:
o the annuitant dies and a death benefit is payable to the beneficiary.
o we receive a properly completed election form providing for the account
value to be used to buy a life contingent annuity or a non-life annuity
with a period certain for a term of at least ten years.
(ii) Disability, terminal illness, or confinement to nursing home. The
withdrawal charge also does not apply if:
o The annuitant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration; or
o We receive proof satisfactory to us (including certification by a licensed
physician) that the annuitant's life expectancy is six months or less; or
o The annuitant has been confined to a nursing home for more than 90 days (or
such other period, as required in your state) as verified by a licensed
physician. A nursing home for this purpose means one that is (a) approved
by Medicare as a provider of skilled nursing care service, or (b) licensed
as a skilled nursing home by the state or territory in which it is located
(it must be within the United States, Puerto Rico, U.S. Virgin Islands, or
Guam) and meets all of the following:
- its main function is to provide skilled, intermediate, or custodial
nursing care;
- it provides continuous room and board to three or more persons;
- it is supervised by a registered nurse or licensed practical nurse;
- it keeps daily medical records of each patient;
- it controls and records all medications dispensed; and
- its primary service is other than to provide housing for residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the disability is caused by a preexisting
condition or a condition that began within 12 months of the contract date. Some
states may not permit us to waive the withdrawal charge in the above
circumstances, or may limit the circumstances for which the withdrawal charge
may be waived. Your financial professional can provide more information or you
may contact our processing office.
(iii) For Traditional IRA, QP IRA, and Standard Roth IRA contracts the
withdrawal charge also does not apply:
o after six contract years if the annuitant is at least age 59 1/2; or
o if you request a refund of a contribution in excess of amounts allowed to
be contributed under the federal income tax rules within one month of the
date on which you made the contribution.
(iv)Under series 500 (Roth Advantage) contracts the withdrawal charge also does
not apply:
o after five contract years if the annuitant is at least age 59 1/2; or
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o if you withdraw an amount which is less than or equal to 25% of the account
value at the time the withdrawal is requested, minus any amount previously
withdrawn during that contract year, and you use the withdrawal to pay
specified higher education expenses as defined in the federal income tax
rules. We must receive evidence satisfactory to us that such withdrawal is
in fact for such purpose; or
o after five contract years if the withdrawal is a "qualified first-time
homebuyer distribution" (special federal income tax definition; $10,000
lifetime total limit). We must receive evidence satisfactory to us that
such withdrawal is in fact for such purpose; or
o if you request a refund of a contribution in excess of amounts allowed to
be contributed under federal income tax rules within one month of the date
on which you made the contribution.
o FOR SERIES 100 AND 200 CONTRACTS
(i) For NQ contracts the withdrawal charge does not apply if:
o the annuitant dies and a death benefit is payable to the beneficiary; or
o we receive a properly completed election form providing for the account
value to be used to buy a life annuity payout option.
(ii) For a Traditional IRA, QP IRA, Standard Roth IRA
o For existing contract owners, if you have QP IRA contract number 11933I,
the 10% free withdrawal amount described above became available after the
third contract year. If you have QP IRA contract number 92QPI, the free
withdrawal amount was available in the first contract year.
o after five contract years and the annuitant is at least age 59 1/2; or
o if you request a refund of an excess contribution within one month of the
date on which the contribution is made; or
o the annuitant dies and the death benefit is made available to the
beneficiary; or
o after five contract years and the annuitant is at least age 55 and the
amount withdrawn is used to purchase from us a period certain annuity that
extends beyond the annuitant's age 59 1/2 and allows no prepayment; or
o after three contract years and the amount withdrawn is used to purchase
from us a period certain annuity for a term of at least 10 years and allows
no prepayment; or
o if the amount withdrawn is applied to the election of a life contingent
annuity payout option.
FOR ALL SERIES CONTRACTS ISSUED IN NEW YORK - FIXED MATURITY OPTIONS.
For contracts issued in New York, the withdrawal charge that applies to
withdrawals taken from amounts in the fixed maturity options will never exceed
6% and will never be higher than the charge that would normally apply under the
contract. The charge will be determined by applying the New York Declining Scale
("declining scale"). If you withdraw amounts that have been transferred from one
fixed maturity option to another, we use the New York Alternative Scale
("alternative scale") if it produces a higher charge than the declining scale.
- ------------------------------------------------------------
DECLINING SCALE ALTERNATIVE SCALE
- ------------------------------------------------------------
Year of in vestment in Year of transfer within
fixed maturity option* fixed maturity option*
- ------------------------------------------------------------
Within year 1 6% Within year 1 5%
- ------------------------------------------------------------
2 6% 2 4%
3 5% 3 3%
4 4% 4 2%
5 3% 5 1%
6 2% After year 5 0%
- ------------------------------------------------------------
After year 6 0% Not to exceed 1%
times the number of
years remaining in the
fixed maturity option,
rounded to the higher
number of years. In
other words, if 4.3
years remain, it would
be a 5% charge.
- ------------------------------------------------------------
* Measured from the contract date anniversary prior to the date of the
contribution or transfer.
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You should consider the following when deciding whether to allocate amounts to,
or transfer amounts to or from, the fixed maturity options:
o If you take a withdrawal from an investment option other than the fixed
maturity options, the amount available for withdrawal without a withdrawal
charge is reduced. It will be reduced by the amount of the contribution in
the fixed maturity options to which no withdrawal charge applies.
o As of any date on which 50% or more of your account value is held in fixed
maturity options, the free withdrawal amount is zero.
o There is a potential for lower withdrawal charges for withdrawals from the
fixed maturity options and the potential for a lower free withdrawal amount
than those that would normally apply,
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by state and ranges from 0% to 3.5% (1% in Puerto
Rico and 5% in the U.S. Virgin Islands).
VARIABLE ANNUITY ADMINISTRATIVE FEE
We deduct a fee of up to $350 from the amount to be applied to a variable
annuity payout option.
CHARGES THAT EQ ADVISORS TRUST DEDUCTS
EQ Advisors Trust deducts charges for the following types of fees and expenses:
o Investment advisory fees ranging from 0.25% to 1.15%.
o 12b-1 fees of 0.25% for Class IB shares.
o Operating expenses, such as trustees' fees, independent auditors' fees,
legal counsel fees, administrative service fees, custodian fees, and
liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of EQ Advisors Trust are purchased at their net asset value, these fees
and expenses are, in effect, passed on to the variable investment options and
are reflected in their unit values. For more information about these charges,
please refer to the prospectus for EQ Advisors Trust following this prospectus.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal charge
or the mortality and expense risks charge, or change the minimum initial
contribution requirements. We also may change the minimum death benefit. Group
arrangements include those in which a trustee or an employer, for example,
purchases contracts covering a group of individuals on a group basis. Group
arrangements are not available for Traditional IRA, Roth IRA and Roth Advantage
contracts. Sponsored arrangements include those in which an employer allows us
to sell contracts to its employees or retirees on an individual basis.
Our costs for sales, administration, and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts or
that have been in existence less than six months will not qualify for reduced
charges.
We also may establish different rates to maturity for the fixed maturity options
under different classes of contracts for group or sponsored arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We
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may change these rules from time to time. Any variation will reflect differences
in costs or services and will not be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules, the
Employee Retirement Income Security Act of 1974, or both. We make no
representations with regard to the impact of these and other applicable laws on
such programs. We recommend that employers, trustees, and others purchasing or
making contracts available for purchase under such programs seek the advice of
their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it will be
unfairly discriminatory.
<PAGE>
6 Payment of death benefit
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YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you a written confirmation when we received your request.
The minimum death benefit is equal to your total contributions, less withdrawals
and any taxes that may apply. We determine the amount of the death benefit as of
the date we receive satisfactory proof of the annuitant's death and any required
instructions for the method of payment.
On the date we determine the death benefit, your account value will be deducted
from the investment options. We will hold this amount in our general account and
credit it with interest at a rate not less than the rate required by law. If you
have transferred the value of another annuity contract that we issue to your
EQUI-VEST contract, the value of the other contract's minimum death benefit
calculated as of the time of the transfer will be included in the total
contributions for the purpose of calculating the minimum death benefit.
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, if you
are the owner and the annuitant and your spouse is the sole primary beneficiary
the contract can be continued as follows:
SUCCESSOR OWNER AND ANNUITANT. SERIES 300. You can elect to have your spouse
continue the contract as the owner/annuitant. In such a case, no death benefit
is payable until your surviving spouse's death. Neither you nor your spouse can
change this election once it is made.
TRADITIONAL IRA, QP IRA, NQ AND ROTH IRA CONTRACTS FOR SERIES 100, 200 AND 400.
If you are the owner and annuitant and your spouse is the sole primary
beneficiary, your spouse may elect upon your death, to continue the contract as
the owner/annuitant and no death benefit is payable until the surviving spouse's
death. This election may not be approved in your state. If your surviving spouse
decides to continue the contract, then on the contract date anniversary
following your death, we will increase the account value to equal your current
guaranteed minimum death benefit, if it is higher than the account value. The
increase in the account value will be allocated to the investment options
according to the allocation percentages we have on file for your contract.
Thereafter, withdrawal charges will no longer apply to this amount. Withdrawal
charges will apply if you make additional contributions. These additional
contributions will be withdrawn only after all other amounts have been
withdrawn. In determining whether the guaranteed minimum death benefit will
continue to grow, we will use your surviving spouse's age (as of the contract
date anniversary).
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions after the original owner's death the owner changes for
purposes of receiving federal tax law required distributions from your contract.
When you are not the annuitant under an NQ contract and you die before annuity
payments begin, unless you specify otherwise, we will automatically make the
beneficiary your successor owner. If you do not want this beneficiary also to be
the successor owner, you should name a specific successor owner. You may name a
successor at any time by sending satisfactory notice to our processing office.
Unless the surviving spouse of the owner who has died is the successor owner for
this purpose, the entire interest in the contract must be distributed under the
following rules:
o The cash value of the contract must be fully paid to the successor owner by
December 31st of the fifth calendar year after your death.
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new
owner's life expectancy).
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Payments must begin no later than December 31st following the calendar year
of the non-annuitant owner's death. Unless this alternative is elected, we
will pay any cash value on December 31st of the fifth calendar year
following the year of your death.
If the surviving spouse is the successor owner, the spouse may elect to continue
the contract. No distributions are required as long as the surviving spouse and
annuitant are living.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the death
benefit in a single sum. However, subject to any exceptions in the contract, our
rules and any applicable requirements under federal income tax rules, the
beneficiary may elect to apply the death benefit to one or more annuity payout
options we offer at the time. See "Your annuity payout options" under "Accessing
your money" earlier in this prospectus. Please note that if you are both the
contract owner and the annuitant, you may elect only a life annuity or an
annuity that does not extend beyond the life expectancy of the beneficiary.
Single sum payments generally are paid through the Equitable Life Access
Account(TM), an interest bearing account with check writing privileges. The
Equitable Life Access Account(TM) is part of Equitable Life's general account.
Beneficiaries have immediate access to the proceeds by writing a check on the
account. We pay interest from the date the single sum is deposited into the
Access Account until the account is closed.
BENEFICIARY CONTINUATION OPTION UNDER SERIES 100, 200 AND 400 TRADITIONAL IRA,
IRA AND QP IRA AND SERIES 100 AND 400 ROTH IRA CONTRACTS
Upon your death under a Traditional IRA, Roth IRA or QP IRA contract, your
beneficiary may generally elect to keep the contract in your name and receive
distributions under the contract instead of receiving the death benefit in a
single sum. In order to elect this option, the beneficiary must be an individual
(certain trusts with only individual beneficiaries will be treated as
individuals). This election must be made within 60 days following the date we
receive proof of your death. We will increase the account value to equal the
death benefit if the death benefit is greater than the account value. The
beneficiary continuation option may not be available in your state. Check with
your financial professional or our processing office regarding availability in
your state.
Under the beneficiary continuation option:
o The contract continues in your name for the benefit of your beneficiary.
o The beneficiary may make transfers among the investment options, but no
additional contributions will be permitted.
o Any death benefit (including the minimum death benefit) provisions will no
longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges will apply. Any partial withdrawal
must be at least $300.
o Upon the death of the beneficiary, any remaining death benefit will be paid
in a lump sum to the person the beneficiary chooses.
For Traditional IRA contracts only, if you die AFTER the "Required Beginning
Date" for required minimum distributions (see "Tax information"), the contract
will continue if:
(a) You were receiving minimum distribution withdrawals from this contract; and
(b) The pattern of minimum distribution withdrawals you chose was based in part
on the life of the designated beneficiary.
The withdrawals will then continue to be paid to the beneficiary on the same
basis as you chose before your
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death. We will be able to tell your beneficiary whether this option is
available. You should contact our processing office for further information.
For all of the above contracts, If you die BEFORE the Required Beginning Date
(and, for a Traditional IRA, therefore you were not taking minimum distribution
withdrawals under the contract) the beneficiary may choose one of the following
two beneficiary continuation options:
1. Payments over life expectancy period. The beneficiary can receive annual
minimum distributions based on the beneficiary's life expectancy. If there
is more than one beneficiary, the shortest life expectancy is used. These
minimum distributions must begin by December 31st of the calendar year
following the year of your death. In some situations, a spouse beneficiary
who elects to continue the contract in your name under the beneficiary
continuation option instead of electing successor owner annuitant status
may also choose to delay beginning these minimum distributions until the
December 31st of the calendar year in which you would have turned age
70 1/2.
2. Five Year Rule. The beneficiary can take withdrawals as desired. If the
beneficiary does not withdraw the entire account value by the December 31st
of the fifth calendar year following your death, we will pay any amounts
remaining under the contract to the beneficiary by that date. If you have
more than one beneficiary, and one of them elects this option, then all of
your beneficiaries will receive this option.
<PAGE>
7 Tax information
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OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to EQUI-VEST contracts owned by United States taxpayers.
The tax rules can differ, depending on the type of contract, whether NQ,
Traditional IRA, QP IRA, Standard Roth IRA, or Roth Advantage. Therefore, we
discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change. We
cannot predict whether, when, or how these rules could change. Any change could
affect contracts purchased before the change.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state income
and other state taxes, federal income tax and withholding rules for non-U.S.
taxpayers, or federal gift and estate taxes. Transfers of the contract, rights
under the contract, or payments under the contract may be subject to gift or
estate taxes. You should not rely only on this document, but should consult your
tax adviser before your purchase.
If you are buying a contract to fund a retirement plan that already provides tax
deferral under the Internal Revenue Code you should do so for the contract's
features and benefits other than tax deferral. In such situations, the tax
deferral of the contract does not provide necessary or additional benefits.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under securities laws);
o if you transfer a contract, for example, as a gift to someone other than
your spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation,
partnership, trust, or other non-natural person).
All nonqualified deferred annuity contracts that Equitable Life and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew that
were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount
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of the payment. For variable annuity payments, your tax-free portion of each
payment is your investment in the contract divided by the number of expected
payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any unrecovered
investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the contract.
If you withdraw an amount which is more than the earnings in the contract as of
the date of the withdrawal, the balance of the distribution is treated as a
return of your investment in the contract and is not taxable.
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o the contract that is the source of the funds you are using to purchase the
NQ contract is another nonqualified deferred annuity contract (or life
insurance or endowment contract).
o the owner and the annuitant are the same under the source contract and the
EQUI-VEST NQ contract. If you are using a life insurance or endowment
contract the owner and the insured must be the same on both sides of the
exchange transaction.
The tax basis of the source contract carries over to the EQUI-VEST NQ contract.
A recent case permitted an owner to direct the proceeds of a partial withdrawal
from one non-qualified deferred annuity contract to a different insurer to
purchase a new non-qualified deferred annuity contract on a tax-free basis.
Special forms, agreements between carriers, and provision of cost basis
information may be required to process this type of an exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as ordinary
income (not capital gain) to the extent it exceeds your investment in the
contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59 1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax. The
extra penalty tax does not apply to pre-age 59 1/2 distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy) or the joint lives (or joint life expectancy) of you
and a beneficiary.
OTHER INFORMATION
The Treasury Department has the authority to issue guidelines prescribing the
circumstances in which your ability to direct your investment to particular
portfolios within a separate account may cause you, rather than the insurance
company, to be treated as the owner of the portfolio shares attributable to your
nonqualified deferred annuity contract. In that case, income and gains
attributable to such portfolio shares would be included in your gross income for
federal
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income tax purposes. Under current rules, however, we believe that Equitable
Life, and not the owner of a nonqualified deferred annuity contract, would be
considered the owner of the portfolio shares.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Under current law we treat income from NQ contracts as U.S. source. A Puerto
Rico resident is subject to U.S. taxation on such U.S. source income. Only
Puerto Rico source income of Puerto Rico residents is excludable from U.S.
taxation. Income from NQ contracts is also subject to Puerto Rico tax. The
calculation of the taxable portion of amounts distributed from a contract may
differ in the two jurisdictions. Therefore, you might have to file both U.S. and
Puerto Rico tax returns, showing different amounts of income from the contract
for each tax return. Puerto Rico generally provides a credit against Puerto Rico
tax for U.S. tax paid. Depending on your personal situation and the timing of
the different tax liabilities, you may not be able to take full advantage of
this credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS ("IRAS")
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types of
such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds the
assets for the benefit of the IRA owner. The assets can include mutual funds and
certificates of deposit. In an individual retirement annuity, an insurance
company issues an annuity contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o "Traditional IRAs," typically funded on a pre-tax basis including SEP-IRAs
and SIMPLE-IRAs, issued and funded in connection with employer-sponsored
retirement plans. (EQUI-VEST Traditional IRA and QP IRA are traditional
IRAs); and
o Roth IRAs, first available in 1998, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required to
combine IRA values or contributions for tax purposes. For further information
about individual retirement arrangements, you can read Internal Revenue Service
Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication
is usually updated annually, and can be obtained from any IRS district office or
the IRS web site (www.irs.gov).
Equitable Life designs its traditional IRA contracts to qualify as "individual
retirement annuities" under Section 408(b) of the Internal Revenue Code. This
prospectus contains the information that the IRS requires you to have before you
purchase an IRA. This section of the prospectus covers some of the special tax
rules that apply to IRAs. The next section covers Roth IRAs. Education IRAs are
not discussed in this prospectus because they are not available in individual
retirement annuity form.
The EQUI-VEST IRA contract has been approved by the IRS as to form for use as a
traditional IRA. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment. The IRS approval does not address every feature possibly
available under the EQUI-VEST IRA contract. Although we do not have IRS approval
as to form, we believe that the version of Roth IRA currently offered complies
with the requirements of the Internal Revenue Code.
CANCELLATION
You can cancel any version of the EQUI-VEST IRA contract (Traditional IRA, QP
IRA, Standard Roth IRA or Roth
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Advantage) by following the directions under "Your right to cancel within a
certain number of days" in "Contract features and benefits" earlier in the
prospectus. You can cancel an EQUI-VEST Standard Roth IRA or a Roth Advantage
contract issued as a result of a full or partial conversion of an EQUI-VEST
Traditional IRA contract by following the instructions in the "EQUI-VEST Roth
IRA Re-Characterization Form." The form is available from our processing office
or your financial professional. If you cancel a Traditional IRA, Standard Roth
IRA or a Roth Advantage contract, we may have to withhold tax, and we must
report the transaction to the IRS. A contract cancellation could have an
unfavorable tax impact.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS)
CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types of
contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS
THE EQUI-VEST TRADITIONAL IRA IS INTENDED TO RECEIVE REGULAR CONTRIBUTIONS.
REGULAR CONTRIBUTIONS ARE NOT PERMITTED FOR QP IRAS.
LIMITS ON CONTRIBUTIONS TO TRADITIONAL IRAS. Generally, $2,000 is the maximum
amount that you may contribute to all IRAs (including Roth IRAs) in any taxable
year. When your earnings are below $2,000, your earned income or compensation
for the year is the most you can contribute. This $2,000 limit does not apply to
rollover contributions or direct custodian-to-custodian transfers into a
traditional IRA. You cannot make regular contributions for the tax year in which
you reach age 70 1/2 or any tax year after that.
SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $2,000, married individuals filing jointly can contribute up
to $4,000 for any taxable year to any combination of traditional IRAs and Roth
IRAs. (Any contributions to Roth IRAs reduce the ability to contribute to
traditional IRAs and vice versa.) The maximum amount may be less if earned
income is less and the other spouse has made IRA contributions. No more than a
combined total of $2,000 can be contributed annually to either spouse's
traditional IRAs and Roth IRAs. Each spouse owns his or her traditional IRAs and
Roth IRAs even if the other spouse funded the contributions. A working spouse
age 70 1/2 or over can contribute up to the lesser of $2,000 or 100% of "earned
income" to a traditional IRA for a nonworking spouse until the year in which the
nonworking spouse reaches age 70 1/2.
DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions that
you can deduct for a tax year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special federal
income tax rules. Your Form W-2 will indicate whether or not you are covered by
such a retirement plan.
IF YOU ARE NOT COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, you can
make fully deductible contributions to your traditional IRAs for each tax year
up to $2,000 or, if less, your earned income.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
adjusted gross income (AGI) is BELOW THE LOWER DOLLAR FIGURE IN A PHASE-OUT
RANGE, you can make fully deductible contributions to your traditional IRAs. For
each tax year your fully deductible contribution can be up to $2,000 or, if
less, your earned income.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls within a PHASE-OUT range, you can make partially deductible
contributions to your traditional IRAs.
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IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls ABOVE THE HIGHER FIGURE IN THE PHASE-OUT RANGE, you may not deduct any
of your regular contribution to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $32,000 and $42,000 in 2000. This range will increase every year
until 2005 when the range is $50,000-$60,000.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $52,000 and $62,000 in 2000. This
range will increase every year until 2007 when the range is $80,000-$100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional IRA
contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with AGI of between
$150,000 and $160,000.
To determine the deductible amount of the contribution in 2000, you determine
AGI and subtract $32,000 if you are single, or $52,000 if you are married and
file a joint return with your spouse. The resulting amount is your Excess AGI.
You then determine the limit on the deduction for traditional IRA contributions
using the following formula:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
($10,000-excess AGI) times $2,000 (or earned Equals the adjusted
- ----------------------- x income, if less) = deductible
divided by $10,000 contribution
limit
</TABLE>
NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or
all of the Traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your Traditional IRA (or
the nonworking spouse's Traditional IRA) may not, however, exceed the maximum
$2,000 per person limit. See "Excess contributions" below. You must keep your
own records of deductible and nondeductible contributions in order to prevent
double taxation on the distribution of previously taxed amounts. See
"Withdrawals, payments and transfers of funds out of Traditional IRAs" below.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any Traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records pertaining
to such contributions until interests in all Traditional IRAs are fully
distributed.
WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15th return
filing deadline (without extensions) of the following calendar year to make your
regular contributions for a tax year.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than $2,000; or
o regular contributions of more than earned income for the year, if that
amount is under $2,000; or
o regular contributions to a traditional IRA made after you reach age 70 1/2;
or
o rollover contributions of amounts which are not eligible to be rolled over.
For example, after-tax contributions to a qualified plan or minimum
distributions required to be made after age 70 1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date
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(including extensions) for filing your federal income tax return for the year.
If it is an excess regular contribution, you cannot take a tax deduction for the
amount withdrawn. You do not have to include the excess contribution withdrawn
as part of your income. It is also not subject to the 10% additional penalty tax
on early distributions discussed below under "Early distribution penalty tax."
You do have to withdraw any earnings that are attributed to the excess
contribution. The withdrawn earnings would be included in your gross income and
could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from a qualified retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
RECHARACTERIZATIONS
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
ROLLOVERS AND TRANSFERS
Rollover contributions may be made to a traditional IRA from these sources:
o qualified plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial
accounts); and
o other traditional IRAs.
Any amount contributed to a traditional IRA after you reach age 70 1/2 must be
net of your required minimum distribution for the year in which the rollover or
direct transfer contribution is made.
ROLLOVERS FROM QUALIFIED PLANS OR TSAS
There are two ways to do rollovers:
o Do it yourself
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your qualified plan or TSA will be net of 20%
mandatory federal income tax withholding. If you want, you can replace the
withheld funds yourself and roll over the full amount.
o Direct rollover
You tell your qualified plan trustee or TSA issuer/custodian/fiduciary to
send the distribution directly to your traditional IRA issuer. Direct
rollovers are not subject to mandatory federal income tax withholding.
All distributions from a TSA or qualified plan are eligible rollover
distributions, unless the distribution is:
o only after-tax contributions you made to the plan; or
o "required minimum distributions" after age 70 1/2 or separation from
service; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o a hardship withdrawal; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
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o a qualified domestic relations order distribution to a beneficiary who is
not your current spouse or former spouse.
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently than
once in every 12-month period.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited traditional IRA to one or more other traditional
IRAs. Also, in some cases, traditional IRAs can be transferred on a tax-free
basis between spouses or former spouses as a result of a court ordered divorce
or separation decree.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract, and annuity payments from your contract. Death benefits are also
taxable. Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income.
If you have ever made nondeductible IRA contributions to any traditional IRA (it
does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. You must keep permanent tax records of all of your
nondeductible contributions to traditional IRAs. At the end of any year in which
you have received a distribution from any traditional IRA, you calculate the
ratio of your total nondeductible traditional IRA contributions (less any
amounts previously withdrawn tax free) to the total account balances of all
Traditional IRAs you own at the end of the year plus all traditional IRA
distributions made during the year. Multiply this by all distributions from the
traditional IRA during the year to determine the nontaxable portion of each
distribution.
In addition, a distribution is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" above; or
o the entire amount received is rolled over to another traditional IRA (see
"Rollovers and transfers" above); or
o in certain limited circumstances, where the traditional IRA acts as a
"conduit," you roll over the entire amount into a qualified plan or TSA
that accepts rollover contributions. To get this conduit traditional IRA
treatment:
o the source of funds you used to establish the traditional IRA must have
been a rollover contribution from a qualified plan; and
o the entire amount received from the traditional IRA (including any
earnings on the rollover contribution) must be rolled over into
another qualified plan within 60 days of the date received.
Similar rules apply in the case of a TSA.
However, you may lose conduit treatment, if you make an eligible rollover
distribution contribution to a traditional IRA and you commingle this
contribution with other contributions. In that case, you may not be able to roll
over these eligible rollover distribution contributions and earnings to another
qualified plan or TSA at a future date.
The EQUI-VEST QP IRA contract can be used as a conduit IRA if amounts are not
commingled. Distributions from a traditional IRA are not eligible for ten-year
averaging and
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long-term capital gain treatment available to certain distributions from
qualified plans.
REQUIRED MINIMUM DISTRIBUTIONS
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your Traditional IRAs beginning at age 70 1/2.
WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION. The first
required minimum distribution is for the calendar year in which you turn age 70
1/2. You have the choice to take this first required minimum distribution during
the calendar year you actually reach age 70 1/2, or to delay taking it until the
first three-month period in the next calendar year (January 1 - April 1).
Distributions must start no later than your "Required Beginning Date," which is
April 1st of the calendar year after the calendar year in which you turn age 70
1/2. If you choose to delay taking the first annual minimum distribution, then
you will have to take two minimum distributions in that year - the delayed one
for the first year and the one actually for that year. Once minimum
distributions begin, they must be made at some time each year.
HOW YOU CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches to
taking required minimum distributions - "account-based" or "annuity-based."
Account-based method. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by a
life expectancy factor from IRS tables. This gives you the required minimum
distribution amount for that particular IRA for that year. The required minimum
distribution amount will vary each year as the account value and your life
expectancy factors change.
You have a choice of life expectancy factors, depending on whether you choose a
method based only on your life expectancy, or the joint life expectancies of you
and another individual. You can decide to "recalculate" your life expectancy
every year by using your current life expectancy factor. You can decide instead
to use the "term certain" method, where you reduce your life expectancy by one
every year after the initial year. If your spouse is your designated beneficiary
for the purpose of calculating annual account-based required minimum
distributions, you can also annually recalculate your spouse's life expectancy
if you want. If you choose someone who is not your spouse as your designated
beneficiary for the purpose of calculating annual account-based required minimum
distributions, you have to use the term certain method of calculating that
person's life expectancy. If you pick a nonspouse designated beneficiary, you
may also have to do another special calculation.
You can later apply your traditional IRA funds to a life annuity-based payout.
You can only do this if you already chose to recalculate your life expectancy
annually (and your spouse's life expectancy if you select a spousal joint
annuity). For example, if you anticipate selecting any form of life annuity
payout after you are age 70 1/2, you must have elected to recalculate life
expectancies.
Annuity-based method. If you choose an annuity-based method you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary, or for a
period certain not extending beyond applicable life expectancies.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No.
If you want, you can choose a different method and a different beneficiary for
each of your traditional IRAs and other retirement plans. For example, you can
choose an annuity payout from one IRA, a different annuity payout from a
qualified plan, and an account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE? No, unless you affirmatively select an annuity payout
option or an account-based withdrawal option such as our minimum distribution
withdrawal option. Because the options we offer do not cover every option
permitted under
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federal income tax rules, you may prefer to do your own required minimum
distribution calculations for one or more of your traditional IRAs.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
However, the IRS will let you calculate the required minimum distribution for
each traditional IRA that you maintain, using the method that you picked for
that particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount, you
may choose to take your annual required minimum distribution from any one or
more traditional IRAs that you own.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that your age 70 1/2 is approaching. If you do
not select a method with us, we will assume you are taking your required minimum
distribution from another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? If you die
after either (a) the start of annuity payments, or (b) your Required Beginning
Date, your beneficiary must receive payment of the remaining values in the
contract at least as rapidly as under the distribution method before your death.
In some circumstances, your surviving spouse may elect to become the owner of
the traditional IRA and halt distributions until he or she reaches age 70 1/2.
If you die before your Required Beginning Date and before annuity payments
begin, federal income tax rules require complete distribution of your entire
value in the contract within five years after your death. Payments to a
designated beneficiary over the beneficiary's life or over a period certain that
does not extend beyond the beneficiary's life expectancy are also permitted, if
these payments start within one year of your death. A surviving spouse
beneficiary can also (a) delay starting any payments until you would have
reached age 70 1/2 or (b) roll over your traditional IRA into his or her own
traditional IRA.
SUCCESSOR ANNUITANT AND OWNER
If your spouse is the sole primary beneficiary and elects to become the
successor annuitant and owner, no death benefit is payable until your surviving
spouse's death.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA as
collateral for a loan or other obligation. If you borrow against your IRA or use
it as collateral, its tax-favored status will be lost as of the first day of the
tax year in which this prohibited event occurs. If this happens, you must
include the value of the traditional IRA in your federal gross income. Also, the
early distribution penalty tax of 10% will apply if you have not reached age 59
1/2 before the first day of that tax year.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59 1/2. The extra
penalty tax does not apply to pre-age 59 1/2 distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
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o to pay for certain extraordinary medical expenses (special federal income
tax definition); or
o to pay medical insurance premiums for unemployed individuals (special
federal income tax definition); or
o to pay certain first-time home buyer expenses (special federal income tax
definition); or
o to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy), or over the joint lives of you
and your beneficiary (or your joint life expectancy) using an IRS-approved
distribution method.
ILLUSTRATION OF GUARANTEED INTEREST RATES
In the following two tables, we provide information that the IRS requires us to
furnish to prospective IRA contract owners. In the tables we illustrate the 3%
minimum guaranteed interest rate for contributions we assume are allocated
entirely to the guaranteed interest option under series 300 and 400 contracts.
In Table I we assume a $1,000 contribution made annually on the contract date
and on each anniversary after that. We assume no withdrawals or transfers were
made under the contract. In Table II we assume a single initial contribution of
$1,000, and no additional contributions. We also assume no withdrawals or
transfers. The 3% guaranteed interest rate is in the contract.
The values shown assume the withdrawal charge applies. These values reflect the
effect of the annual administrative charge deducted at the end of each contract
year in which the account value is less than $20,000.
To find the appropriate value for the end of the contract year at any particular
age, you subtract the age (nearest birthday) at issue of the contract from the
current age and find the corresponding year in the table. Years that correspond
to a current age over 70, should be ignored, unless the contract is a Roth IRA.
You should consider the information shown in the tables in light of your present
age. Also, with respect to Table I, you should consider your ability to
contribute $1,000 annually. Any change in the amounts contributed annually in
Table I, or in the amount of the single contribution in Table II would, of
course, change the results shown.
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TABLE I
ACCOUNT VALUES AND CASH VALUES
(assuming $1,000 contributions made annually
at the beginning of the contract year)
<TABLE>
<CAPTION>
- ------------------------------------------------- --------------------------------------------------
3% MINIMUM GUARANTEE 3% MINIMUM GUARANTEE
- ------------------------------------------------- --------------------------------------------------
CONTRACT ACCOUNT CASH CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE YEAR END VALUE VALUE
- ------------------------------------------------- --------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 $ 1,009.40 $ 954.89 26 $ 38,956.96 $ 38,596.96
2 $ 2,039.68 $ 1,929.54 27 $ 41,155.67 $ 40,795.67
3 $ 3,100.87 $ 2,933.43 28 $ 43,420.34 $ 43,060.34
4 $ 4,193.90 $ 3,967.43 29 $ 45,752.95 $ 45,392.95
5 $ 5,319.72 $ 5,032.45 30 $ 48,155.53 $ 47,795.53
6 $ 6,479.31 $ 6,129.42 31 $ 50,630.20 $ 50,270.20
7 $ 7,673.69 $ 7,313.69 32 $ 53,179.11 $ 52,819.11
8 $ 8,903.90 $ 8,543.90 33 $ 55,804.48 $ 55,444.48
9 $ 10,171.01 $ 9,811.01 34 $ 58,508.61 $ 58,148.61
10 $ 11,476.14 $ 11,116.14 35 $ 61,293.87 $ 60,933.87
11 $ 12,820.43 $ 12,460.43 36 $ 64,162.69 $ 63,802.69
12 $ 14,205.04 $ 13,845.04 37 $ 67,117.57 $ 66,757.57
13 $ 15,631.19 $ 15,271.19 38 $ 70,161.10 $ 69,801.10
14 $ 17,100.13 $ 16,740.13 39 $ 73,295.93 $ 72,935.93
15 $ 18,613.13 $ 18,253.13 40 $ 76,524.81 $ 76,164.81
16 $ 20,201.53 $ 19,841.53 41 $ 79,850.55 $ 79,490.55
17 $ 21,837.57 $ 21,477.57 42 $ 83,276.07 $ 82,916.07
18 $ 23,522.70 $ 23,162.70 43 $ 86,804.35 $ 86,444.35
19 $ 25,258.38 $ 24,898.38 44 $ 90,438.48 $ 90,078.48
20 $ 27,046.13 $ 26,686.13 45 $ 94,181.64 $ 93,821.64
21 $ 28,887.52 $ 28,527.52 46 $ 98,037.08 $ 97,677.08
22 $ 30,784.14 $ 30,424.14 47 $ 102,008.20 $ 101,648.20
23 $ 32,737.67 $ 32,377.67 48 $ 106,098.44 $ 105,738.44
24 $ 34,749.80 $ 34,389.80 49 $ 110,311.40 $ 109,951.40
25 $ 36,822.29 $ 36,462.29 50 $ 114,650.74 $ 114,290.74
</TABLE>
<PAGE>
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TABLE II
ACCOUNT VALUES AND CASH VALUES
(assuming a single contribution of $1,000 and
no further contribution)
<TABLE>
<CAPTION>
- -------------------------------------------------- --------------------------------------------------
3% MINIMUM GUARANTEE 3% MINIMUM GUARANTEE
- -------------------------------------------------- --------------------------------------------------
CONTRACT ACCOUNT CASH CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE YEAR END VALUE VALUE
- -------------------------------------------------- --------------------------------------------------
<S> <C> <C> <S> <C> <C>
1 $ 1,009.40 $ 954.89 26 $ 1,038.40 $ 1,038.40
2 $ 1,018.89 $ 963.87 27 $ 1,039.55 $ 1,039.55
3 $ 1,019.46 $ 964.40 28 $ 1,040.73 $ 1,040.73
4 $ 1,020.04 $ 964.96 29 $ 1,041.96 $ 1,041.96
5 $ 1,020.64 $ 965.53 30 $ 1,043.22 $ 1,043.22
6 $ 1,021.26 $ 966.11 31 $ 1,044.51 $ 1,044.51
7 $ 1,021.90 $ 1,021.90 32 $ 1,045.85 $ 1,045.85
8 $ 1,022.55 $ 1,022.55 33 $ 1,047.22 $ 1,047.22
9 $ 1,023.23 $ 1,023.23 34 $ 1,048.64 $ 1,048.64
10 $ 1,023.93 $ 1,023.93 35 $ 1,050.10 $ 1,050.10
11 $ 1,024.65 $ 1,024.65 36 $ 1,051.60 $ 1,051.60
12 $ 1,025.38 $ 1,025.38 37 $ 1,053.15 $ 1,053.15
13 $ 1,026.15 $ 1,026.15 38 $ 1,054.74 $ 1,054.74
14 $ 1,026.93 $ 1,026.93 39 $ 1,056.39 $ 1,056.39
15 $ 1,027.74 $ 1,027.74 40 $ 1,058.08 $ 1,058.08
16 $ 1,028.57 $ 1,028.57 41 $ 1,059.82 $ 1,059.82
17 $ 1,029.43 $ 1,029.43 42 $ 1,061.61 $ 1,061.61
18 $ 1,030.31 $ 1,030.31 43 $ 1,063.46 $ 1,063.46
19 $ 1,031.22 $ 1,031.22 44 $ 1,065.37 $ 1,065.37
20 $ 1,032.16 $ 1,032.16 45 $ 1,067.33 $ 1,067.33
21 $ 1,033.12 $ 1,033.12 46 $ 1,069.35 $ 1,069.35
22 $ 1,034.11 $ 1,034.11 47 $ 1,071.43 $ 1,071.43
23 $ 1,035.14 $ 1,035.14 48 $ 1,073.57 $ 1,073.57
24 $ 1,036.19 $ 1,036.19 49 $ 1,075.78 $ 1,075.78
25 $ 1,037.28 $ 1,037.28 50 $ 1,078.05 $ 1,078.05
</TABLE>
<PAGE>
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ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS)
This section of the prospectus covers some of the special tax rules that apply
to Standard Roth IRAs. If the rules are the same as those that apply to the
Traditional IRA, we will refer you to the same topic under "Traditional IRAs."
The EQUI-VEST Standard Roth IRA and Roth Advantage contracts are designed to
qualify as Roth individual retirement annuities under Sections 408A and 408(b)
of the Internal Revenue Code.
CONTRIBUTIONS TO ROTH IRAS
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from Traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth IRAs
("direct transfers").
If you use the forms we require, we will also accept traditional IRA funds which
are subsequently recharacterized as Roth IRA funds following special federal
income tax rules.
REGULAR CONTRIBUTIONS TO ROTH IRAS
LIMITS ON REGULAR CONTRIBUTIONS. Generally, $2,000 is the maximum amount that
you may contribute to all IRAs (including Roth IRAs) in any taxable year. This
$2,000 limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs
reduce your ability to contribute to traditional IRAs and vice versa. When your
earnings are below $2,000, your earned income or compensation for the year is
the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular IRA and after-tax contributions you are permitted to make to
Roth IRAs and traditional IRAs. See the discussion above under traditional IRAs.
With a Roth IRA, you can make regular contributions when you reach 70 1/2, as
long as you have sufficient earnings. But, you cannot make contributions for any
year that:
o your federal income tax filing status is "married filing jointly" and your
adjusted gross income is over $160,000; or,
o your federal income tax filing status is "single" and your adjusted gross
income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your adjusted gross
income is between $95,000 and $110,000.
If you are married and filing separately and your adjusted gross income is
between $0 and $10,000 the amount of regular contribution you are permitted to
make is phased out. If your adjusted gross income is more than $10,000 you
cannot make a regular Roth IRA contribution.
WHEN YOU CAN MAKE CONTRIBUTIONS? Same as Traditional IRAs.
DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible.
ROLLOVERS AND DIRECT TRANSFERS
WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS?
You may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE-IRA, in a taxable
conversion rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under Section
401(a) of the Internal Revenue
<PAGE>
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Code, or a TSA under Section 403(b) of the Internal Revenue Code. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following. In a rollover transaction you actually take possession of the
funds rolled over, or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee, or issuer to transfer the first Roth IRA funds directly
to Equitable Life, as the Roth IRA issuer. You can make direct transfer
transactions only between identical plan types (for example, Roth IRA to Roth
IRA). You can also make rollover transactions between identical plan types.
However, you can only use rollover transactions between different plan types
(for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions
only once in any 12-month period for the same funds. Trustee-to-trustee or
custodian-to-custodian direct transfers can be made more frequently than once a
year. Also, if you send us the rollover contribution to apply it to a Roth IRA,
you must do so within 60 days after you receive the proceeds from the original
IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
CONVERSION CONTRIBUTIONS TO ROTH IRAS
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is generally
fully taxable. For this reason, we are required to withhold 10% federal income
tax from the amount converted unless you elect out of such withholding. If you
have ever made nondeductible regular IRA contributions to any traditional IRA -
whether or not it is the traditional IRA you are converting - a pro rata portion
of the distribution is tax free.
There is, however, no early distribution penalty tax on the Traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59 1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your adjusted gross income exceeds $100,000. For this purpose, your
adjusted gross income is calculated without the gross income stemming from the
traditional IRA conversion. You also cannot make conversion contributions to a
Roth IRA for any taxable year in which your federal income tax filing status is
"married filing separately."
Finally, you cannot make conversion contributions to a Roth IRA to the extent
that the funds in your traditional IRA are subject to the annual required
minimum distribution rule applicable to traditional IRAs beginning at age
70 1/2.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
DISTRIBUTIONS FROM ROTH IRAS
Distributions include withdrawals from your contract, surrender and termination
of your contract, and annuity payments from your contract. Death benefits are
also distributions.
<PAGE>
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The following distributions from Roth IRAs are free of income tax:
o Rollover from a Roth IRA to another Roth IRA;
o Direct transfer from a Roth IRA to another Roth IRA;
o Qualified distributions from Roth IRA; and
o Return of excess contributions or amounts recharacterized to a traditional
IRA.
QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you reach age 59 1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or not
the one from which the distribution is being made). It is not possible to have a
tax-free qualified distribution before the year 2003 because of the five-year
aging requirement.
NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth
IRAs are distributions that do not meet the qualifying event and five-year aging
period tests described above. Such distributions are potentially taxable as
ordinary income. Nonqualified distributions receive return-of-investment-first
treatment. Only the difference between the amount of the distribution and the
amount of contributions to all of your Roth IRAs is taxable. You have to reduce
the amount of contributions to all of your Roth IRAs to reflect any previous
tax-free recoveries.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to
the special favorable five-year averaging method (or, in certain cases,
favorable ten-year averaging and long-term capital gain treatment) available in
certain cases to distributions from qualified plans.
REQUIRED MINIMUM DISTRIBUTIONS AT DEATH
Same as traditional IRA under "What are the required minimum distribution
payments after you die?" Lifetime required minimum distributions do not apply.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
Same as traditional IRA.
EXCESS CONTRIBUTIONS
Same as traditional IRA, except that regular contributions made after age 70 1/2
are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your adjusted gross income is in excess of $100,000 in the conversion year).
You can withdraw or recharacterize any contribution to a Roth IRA before the due
date (including extensions) for filing your federal income tax return for the
tax year. If you do this, you must also withdraw or recharacterize any earnings
attributable to the contribution.
EARLY DISTRIBUTION PENALTY TAX
Same as traditional IRA.
<PAGE>
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For Roth IRAs, special penalty rules may apply to amounts withdrawn attributable
to 1998 conversion rollovers.
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable. The
rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this purpose.
You cannot elect out of withholding unless you provide us with your correct
Taxpayer Identification Number and a United States residence address. You cannot
elect out of withholding if we are sending the payment out of the United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free
look or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o We are required to withhold on the gross amount of a distribution from a
Roth IRA unless you elect out of withholding. This may result in tax being
withheld even though the Roth IRA distribution is not taxable in whole or
in part.
Special withholding rules apply to foreign recipients and United States citizens
residing outside the United States. We do not discuss these rules here. Certain
states have indicated that state income tax withholding will also apply to
payments from the contracts made to residents. In some states, you may elect out
of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state or
any required forms, call our processing office at the toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $14,880 in periodic annuity payments in
2000 your payments will generally be exempt from federal income tax withholding.
You could specify a different choice of withholding exemption or request that
tax be withheld. Your withholding election remains effective unless and until
you revoke it. You may revoke or change your withholding election at any time.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
For a non-periodic distribution (total surrender, termination, or partial
withdrawal), we generally withhold at a flat 10% rate. We apply that rate to the
taxable amount in the case of nonqualified contracts, and to the payment amount
in the case of IRAs and Roth IRAs.
IMPACT OF TAXES TO EQUITABLE LIFE
The contracts provide that we may charge Separate Account A for taxes. We do not
now, but may in the future set up reserves for such taxes.
<PAGE>
8 More information
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ABOUT OUR SEPARATE ACCOUNT A
Each variable investment option is a subaccount of our Separate Account A. We
established Separate Account A in 1968 under special provisions of the New York
Insurance Law. These provisions prevent creditors from any other business we
conduct from reaching the assets we hold in our variable investment options for
owners of our variable annuity contracts. We are the legal owner of all of the
assets in Separate Account A and may withdraw any amounts that exceed our
reserves and other liabilities with respect to variable investment options under
our contracts. The results of Separate Account A's operations are accounted for
without regard to Equitable Life's other operations.
Separate Account A is registered under the Investment Company Act of 1940 and is
classified by that act as a "unit investment trust." The SEC, however, does not
manage or supervise Equitable Life or Separate Account A.
Each subaccount (variable investment option) within Separate Account A invests
solely in Class IA or Class IB shares, respectively, issued by the corresponding
portfolios of EQ Advisors Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from, Separate Account A, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate Separate Account A or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against Separate Account A or a
variable investment option directly);
(5) to deregister Separate Account A under the Investment Company Act of 1940;
(6) to restrict or eliminate any voting rights as to Separate Account A; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT EQ ADVISORS TRUST
EQ Advisors Trust is registered under the Investment Company Act of 1940. It is
classified as an "open-end management investment company," more commonly called
a mutual fund. EQ Advisors Trust issues different shares relating to each
portfolio.
Equitable Life serves as the investment manager of EQ Advisors Trust. As such,
Equitable Life oversees the activities of the investment advisers with respect
to EQ Advisors Trust and is responsible for retaining or discontinuing the
services of those advisers. (Prior to September 1999, EQ Financial Consultants,
Inc. the predecessors to AXA Advisors, LLC and an affiliate of Equitable Life
served as investment manager to EQ Advisors Trust.)
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth)
were part of The Hudson River Trust. On October 18, 1999, the assets of these
portfolios became the corresponding portfolios on EQ Advisors Trust.
EQ Advisors Trust does not impose sales charges or "loads" for buying and
selling its shares. All dividends and other distributions on Trust shares are
reinvested in full. The Board of Trustees of EQ Advisors Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about EQ Advisors Trust, the portfolio investment
objectives, policies, restrictions, risks, expenses,
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their Rule 12b-1 Plan relating to its Class IB shares , and other aspects of the
Trusts operations, appears in the prospectus for EQ Advisors Trust attached at
the end of this prospectus, or in its SAI which is available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
The rates to maturity for new allocations as of March 1, 2000 and the related
price per $100 of maturity value were as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FIXED MATURITY
OPTIONS
WITH JUNE 15TH
MATURITY DATE RATE TO MATURITY AS PRICE
OF OF PER $100 OF
MATURITY YEAR MARCH 1, 2000 MATURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
2001 5.20% $ 93.68
2002 5.65% 88.20
2003 6.10% 82.34
2004 6.15% 77.41
2005 6.25% 72.57
2006 6.35% 67.90
2007 6.40% 63.63
2008 6.40% 59.82
2009 6.45% 55.96
2010 6.50% 52.31
- --------------------------------------------------------------------------------
</TABLE>
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity that applies on the
withdrawal date to new allocations to the same fixed maturity option.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
- --------------------------------------------------------------------------------
Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that same
fixed maturity option on the date of the calculation.
- --------------------------------------------------------------------------------
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment that
would have applied if you had withdrawn the entire value in that fixed maturity
option. This percentage is equal to the percentage of the value in the fixed
maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix III for an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that
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fixed maturity option. We use this rate even if new allocations to that option
would not be accepted at that time. This rate will not be less than 3%. If we do
not have a rate to maturity in effect for a fixed maturity option to which the
"current rate to maturity" in (1)(c) above would apply, we will use the rate at
the next closest maturity date. If we are no longer offering new fixed maturity
options, the "current rate to maturity" will be determined in accordance with
our procedures then in effect. We reserve the right to add up to 0.50% to the
current rate in (1)(c) above for purposes of calculating the market value
adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held in
this separate account. We may, subject to state law that applies, transfer all
assets allocated to the separate account to our general account. We guarantee
all benefits relating to your value in the fixed maturity options, regardless of
whether assets supporting fixed maturity options are held in a separate account
or our general account.
We have no specific formula for establishing the rates to maturity for the fixed
maturity options. We expect the rates to be influenced by, but not necessarily
correspond to, among other things, the yields that we can expect to realize on
the separate account's investments from time to time. Our current plans are to
invest in fixed-income obligations, including corporate bonds, mortgage-backed
and asset-backed securities and government and agency issues having durations in
the aggregate consistent with those of the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the contracts,
we are not obligated to invest those assets according to any particular plan
except as we may be require to by state insurance laws. We will not determine
the rates to maturity we establish by the performance of the nonunitized
separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and the fixed
maturity options, as well as our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations of
all jurisdictions where we are authorized to do business. Because of exemptions
and exclusionary provisions that apply, interests in the general account have
not been registered under the Securities Act of 1933, nor is the general account
an investment company under the Investment Company Act of 1940. However, the
market value adjustment interests under the contracts are registered under the
Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to general accounts, however,
may be subject to certain provisions of the federal securities laws relating to
the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
AUTOMATIC INVESTMENT PROGRAM - FOR NQ, TRADITIONAL IRA, STANDARD ROTH IRA AND
ROTH ADVANTAGE CONTRACTS
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional
<PAGE>
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73
- --------------------------------------------------------------------------------
contribution into an NQ, Traditional IRA, Standard Roth IRA, and Roth Advantage
contracts on a monthly basis.
AIP additional contributions may be allocated to any of the variable investment
options and the guaranteed interest option, but not the fixed maturity options.
Our minimum contribution amount requirement is $20. You choose the day of the
month you wish to have your account debited. However, you may not choose a date
later than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
PAYROLL DEDUCTION PROGRAM. You can authorize your employer to remit your IRA
contributions to us if your employer has a payroll deduction program. Those
contributions are still your contributions, not your employer's.
WIRE TRANSFERS. You may also send your contributions by wire transfer from your
bank.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day is any day on which Equitable Life is open and the New York
Stock Exchange is open for trading. We are closed on national business holidays
including Martin Luther King, Jr. Day and the Friday after Thanksgiving.
Additionally, we may choose to close on the day immediately preceding or
following a national business holiday or due to emergency conditions. Our
business day ends at 4:00 p.m., Eastern Time for purposes of determining the
date when contributions are applied and any other transaction requests are
processed. We may close earlier due to emergency conditions. Contributions will
be applied and any other transaction requests will be processed when they are
received along with all the required information unless another date applies as
indicated below.
o If your contribution, transfer, or any other transaction request,
containing all the required information, reaches us on a non-business day
or after 4:00 p.m., Eastern time on a business day, we will use the next
business day.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o Quarterly rebalancing will be processed on a calendar year basis and
semiannual or annual rebalancing will be processed on the first business
day of the month. Rebalancing will not be done retroactively.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o Contributions allocated to the guaranteed interest option will receive the
guaranteed interest rate in effect on that business day.
o If a fixed maturity option is scheduled to mature on June 15th and June
15th is a non-business day, that fixed maturity option will mature on the
prior business day.
o Transfers to or from variable investment options will be made at the unit
value next determined after the close of the business day.
o Transfers to the guaranteed interest option will receive the guaranteed
interest rate in effect on that business day.
<PAGE>
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74
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o Transfers to a fixed maturity option will receive the rate to maturity in
effect for that fixed maturity option on that business day.
o Transfers out of a fixed maturity option will be at the market adjusted
amount on that business day.
o For the fixed-dollar option, the first monthly transfer will occur on the
last business day of the month in which we receive your election form at
our processing office.
o For the interest sweep, the first monthly transfer will occur on the last
business day of the month following the month that we receive your election
form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of EQ Advisors Trust we have the right to vote on
certain matters involving the portfolios, such as:
o the election of trustees; or
o the formal approval of independent auditors selected for EQ Advisors Trust;
or
o any other matters described in the prospectus for EQ Advisors Trust or
requiring a shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is taken.
If we do not receive instructions in time from all contract owners, we will vote
the shares of a portfolio for which no instructions have been received in the
same proportion as we vote shares of that portfolio for which we have received
instructions. We will also vote any shares that we are entitled to vote directly
because of amounts we have in a portfolio in the same proportions that contract
owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control EQ Advisors Trust. EQ Advisors Trust shares are sold to
our separate accounts and an affiliated qualified plan trust. In addition,
shares of EQ Advisors Trust are held by separate accounts of insurance companies
both affiliated and unaffiliated with us. Shares held by these separate accounts
will probably be voted according to the instructions of the owners of insurance
policies and contracts issued by those insurance companies. While this will
dilute the effect of the voting instructions of the contract owners, we
currently do not foresee any disadvantages because of this. The Board of
Trustees of EQ Advisors Trust intends to monitor events in order to identify any
material irreconcilable conflicts that may arise and to determine what action,
if any, should be taken in response. If we believe that a response to any of
those events insufficiently protects our contract owners, we will see to it that
appropriate action is taken.
SEPARATE ACCOUNT A VOTING RIGHTS
If actions relating to Separate Account A require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount of
reserves we are holding for that annuity in a variable investment option divided
by the annuity unit value for that option. We will cast votes attributable to
any amounts we have in the variable investment options in the same proportion as
votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
Equitable Life and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings is likely to have a material adverse effect
upon Separate Account A, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
<PAGE>
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ABOUT OUR INDEPENDENT ACCOUNTANTS
The consolidated financial statements of Equitable Life at December 31, 1999 and
1998, and for the three years ended December 31, 1999, incorporated in this
prospectus by reference to the 1999 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent
accountants, given on the authority of said firm as experts in auditing and
accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account A, as well as the consolidated
financial statements of Equitable Life, are in the SAI. The SAI is available
free of charge. You may request one by writing our processing office or calling
1-800-628-6673.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity payments
begin. We will continue to treat you as the owner until we receive written
notification of any change at our processing office. You cannot assign your NQ
contract as collateral or security for a loan. Loans are also not available
under your NQ contract. In some cases, an assignment or change of ownership may
have adverse tax consequences. See "Tax information" earlier in this prospectus.
You cannot assign or transfer ownership of a Traditional IRA, QP IRA, or Roth
IRA contract except by surrender to us. Loans are not available and you cannot
assign Traditional IRA, QP IRA and Roth IRA contracts as security for a loan or
other obligation.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this prospectus.
You may direct the transfer of the values under your Traditional IRA, QP IRA and
Roth IRA contract to another similar arrangement.
DISTRIBUTION OF THE CONTRACTS
AXA Advisors, LLC ("AXA Advisors"), the successor to Equitable Financial
Consultants, Inc., and an affiliate of Equitable Life, is the distributor of the
contracts and has responsibility for sales and marketing functions for Separate
Account A. AXA Advisors serves as the principal underwriter of Separate Account
A. AXA Advisors is registered with the SEC as a broker-dealer and is a member of
the National Association of Securities Dealers, Inc. AXA Advisors' principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Pursuant to
a Distribution and Servicing Agreement between AXA Advisors, Equitable Life, and
certain of Equitable Life's separate accounts, including Separate Account A,
Equitable Life paid AXA Advisors fees of $325,380 for 1999, $325,380 for 1998
and $325,380 for 1997, as distributor of certain contracts and as the principal
underwriter of certain separate accounts including Separate Account A.
The contracts will be sold by financial professionals who are registered
representatives of AXA Advisors, and its affiliates who are also our licensed
insurance agents. AXA Advisors may also receive compensation and reimbursement
for its marketing services under the terms of its distribution agreement with
Equitable Life. The offering of the contracts is intended to be continuous.
<PAGE>
9 Investment performance
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We provide the following tables to show five different measurements of the
investment performance of the variable investment options and/or the portfolios
in which they invest. We include these tables because they may be of general
interest to you.
Table 1 shows the average annual total return of the variable investment
options. Average annual total return is the annual rate of growth that would be
necessary to achieve the ending value of a contribution invested in the variable
investment options for the periods shown.
Table 2 shows the growth of a hypothetical $1,000 investment in the variable
investment options over the periods shown. Both Tables 1 and 2 take into account
all current fees and charges under the contract including the withdrawal charge
but do not reflect the charges designed to approximate certain taxes that may be
imposed on us such as premium taxes in your state, or the annuity administrative
fee, if applicable.
Tables 3, 4 and 5 show the rates of return of the variable investment options on
an annualized, cumulative, and year-by-year basis. These tables take into
account all current fees and charges under the contract, but do not reflect the
annual administrative charge and any withdrawal charge, or charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes in
your state, or the applicable annuity administrative fee. If the charges were
reflected they would effectively reduce the rates of return shown.
In all cases the results shown are based on the actual historical investment
experience of the portfolios in which the variable investment options invest. In
some cases, the results shown relate to periods when the variable investment
options were not available. In those cases, we adjusted the results of the
portfolios to reflect the charges under the contracts that would have applied
had the investment options and/or contracts been available. Since charges under
the contracts vary, we have assumed, for each charge, the highest that might
apply which is 1.45% for mortality and expense risks and other expenses.
Finally, the results shown for the Alliance Money Market, EQ/Balanced, Alliance
Common Stock and EQ/Aggressive Stock options for periods before those options
were operated as part of a unit investment trust reflect the results of the
separate accounts that preceded them. The "Since portfolio inception" figures
for these options are based on the date of inception of the preceding separate
accounts. We have adjusted these results to reflect the fee and expense
structure in effect for Separate Account A as a unit investment trust. See "The
reorganization" in the SAI for additional information.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth)
were part of the Hudson River Trust. On October 18, 1999, these portfolios
became corresponding portfolios of EQ Advisors Trust. In each case, the
performance shown is for the indicated EQ Advisors Trust portfolio and any
predecessors that it may have had.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
From time to time, we may advertise different measurements of the investment
performance options and/or the portfolios, including the measurements reflected
in the tables below.
THE PERFORMANCE INFORMATION SHOWN BELOW AND THE PERFORMANCE INFORMATION THAT WE
ADVERTISE REFLECTS PAST PERFORMANCE AND DOES NOT INDICATE HOW THE VARIABLE
INVESTMENT OPTIONS MAY PERFORM IN THE FUTURE. SUCH PERFORMANCE ALSO DOES NOT
REPRESENT THE RESULTS EARNED BY ANY PARTICULAR INVESTOR. YOUR RESULTS WILL
DIFFER.
BENCHMARKS
Tables 3 and 4 compare the performance of variable investment options to market
indices that serve as benchmarks. Market indices are not subject to any charges
for investment advisory fees, brokerage commission or other operating expenses
typically associated with a managed
<PAGE>
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77
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portfolio. Also, they do not reflect other charges such as the mortality and
expense risks and other expense charges, annual administrative charge, or any
withdrawal under the contracts. Comparisons with these benchmarks, therefore,
may be of limited use. We include them because they are widely known and may
help you to understand the universe of securities from which each portfolio is
likely to select its holdings. Benchmark data reflect the reinvestment of
dividend income. The benchmarks include:
- -------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK: 50% Russell 2000 Index and 50% Standard
& Poor's Mid-Cap Total Return Index.
ALLIANCE COMMON STOCK: Standard & Poor's 500 Index.
ALLIANCE CONSERVATIVE INVESTORS: 70% Lehman Treasury Bond
Composite Index and 30% Standard & Poor's 500 Index.
ALLIANCE EQUITY INDEX: Standard & Poor's 500 Index.
ALLIANCE GLOBAL: Morgan Stanley Capital International World Index.
ALLIANCE GROWTH AND INCOME: 75% Standard & Poor's 500 Index
and 25% Value Line Convertibles Index.
ALLIANCE GROWTH INVESTORS: 30% Lehman Government/Corporate
Bond Index and 70% Standard & Poor's 500 Index.
ALLIANCE HIGH YIELD: Benchmark #1 - Merrill Lynch High Yield
Master Index. Benchmark #2 - Credit Suisse First Boston Global
High Yield Index.
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES: Lehman
Intermediate Government Bond Index.
ALLIANCE INTERNATIONAL: Morgan Stanley Capital International
Europe, Australia, Far East Index.
ALLIANCE MONEY MARKET: Salomon Brothers Three-Month T-Bill
Index.
EQ/ALLIANCE PREMIER GROWTH: Standard & Poor's 500 Index.
ALLIANCE QUALITY BOND: Lehman Aggregate Bond Index.
ALLIANCE SMALL CAP GROWTH: Russell 2000 Growth Index.
EQ/ALLIANCE TECHNOLOGY: NASDAQ Composite.
EQ/BALANCED: 50% Standard & Poor's 500 and 50% Lehman
Government/Corporate Bond Index.
CAPITAL GUARDIAN RESEARCH: Standard & Poor's 500 Index.
CAPITAL GUARDIAN U.S. EQUITY: Standard & Poor's 500 Index.
EQ/EVERGREEN: Benchmark #1 - Russell 2000 Index. Benchmark
#2 - Standard & Poor's 500 Index.
EQ/EVERGREEN FOUNDATION: 60% Standard & Poor's 500
Index/40% Lehman Brothers Aggregate Bond Index.
MFS EMERGING GROWTH COMPANIES: Russell 2000 Index.
MFS GROWTH WITH INCOME: Standard & Poor's 500 Index.
MFS RESEARCH: Standard & Poor's 500 Index.
MERCURY BASIC VALUE EQUITY: Standard & Poor's 500 Index.
MERCURY WORLD STRATEGY: 36% Standard & Poor's 500 Index/24%
Morgan Stanley Capital International Europe, Australia, Far East
Index/21% Salomon Brothers U.S. Treasury Bond 1 Year+ 14%
Salomon Brothers World Government Bond (excluding U.S.)/and
5% Three-Month U.S. Treasury Bill.
MORGAN STANLEY EMERGING MARKETS EQUITY: Morgan Stanley
Capital International Emerging Markets Free Price Return Index.
EQ/PUTNAM BALANCED: 60% Standard & Poor's 500 Index and 40%
Lehman Government/Corporate Bond Index.
EQ/PUTNAM GROWTH & INCOME VALUE: Standard & Poor's 500
Index.
T. ROWE PRICE EQUITY INCOME: Standard & Poor's 500 Index.
T. ROWE PRICE INTERNATIONAL STOCK: Morgan Stanley Capital
International Europe, Australia, Far East Index.
WARBURG PINCUS SMALL COMPANY VALUE: Benchmark #1 -
Russell 2000 Index and Benchmark #2 - Russell 2000 Value Index.
- -------------------------------------------------------------------------
LIPPER SURVEY. The Lipper Variable Insurance Products Performance Analysis
Survey (Lipper Survey) records the performance of a large group of variable
annuity products, including managed separate accounts of insurance companies.
According to Lipper Analytical Services, Inc. (Lipper), the data are presented
net of investment management fees, direct operating expenses and asset-based
charges applicable under annuity contracts. Lipper data provide a more accurate
picture than market benchmarks of the EQUI-VEST performance relative to other
variable annuity products.
<PAGE>
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TABLE 1
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
LENGTH OF INVESTMENT PERIOD
----------------------------------------------------------------------------
SINCE SINCE
1 3 5 10 OPTION PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION* INCEPTION**
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/Aggressive Stock 8.77% 3.97% 11.68% 13.32% 14.81% 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock 14.47% 22.12% 23.70% 14.88% 15.31% 10.69%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors 0.63% 6.69% 7.58% 6.09% 4.79% 6.16%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance Equity Index 10.11% 21.15% 23.54% - 20.78% 19.46%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance Global 26.71% 17.59% 16.04% 12.04% 13.43% 10.68%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income 8.54% 16.14% 17.55% - 13.71% 12.82%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors 15.78% 14.83% 15.43% 13.50% 11.43% 13.57%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance High Yield (11.70)% (2.88)% 5.08% 6.55% 2.93% 5.68%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government Securities (8.51)% (0.73)% 1.26% - 0.36% 2.25%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance International 26.03% 8.09% - - 7.63% 8.02%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance Money Market (4.09)% (0.49)% 0.17% 0.98% 3.01% 3.01%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond (10.46)% (0.59)% 2.47% - 0.30% 0.73%
- ----------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth 17.00% - - - 7.76% 11.62%
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Balanced 7.77% 11.05% 11.70% 7.94% 9.39% 9.39%
- ----------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies 60.35% - - - 39.18% 42.20%
- ----------------------------------------------------------------------------------------------------------------------------
MFS Research 12.61% - - - 15.36% 17.66%
- ----------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value 8.79% - - - 8.44% 11.14%
- ----------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy 10.99% - - - 4.24% 6.13%
- ----------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity 82.12% - - - (0.63)% (0.63)%
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced (8.60)% - - - 2.30% 3.66%
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (9.88)% - - - 2.16% 4.08%
- ----------------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income (5.39)% - - - 5.06% 6.82%
- ----------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock 20.62% - - - 8.47% 9.58%
- ----------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value (6.99)% - - - (5.10)% (2.61)%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The variable investment option inception dates are: EQ/Aggressive Stock
(5/1/84), Alliance Common Stock (8/27/81), Alliance Conservative
Investors (1/4/94), Alliance Equity Index (6/1/94), Alliance Global
(1/4/94), Alliance Growth & Income (1/4/94), Alliance Growth Investors
(1/4/94), Alliance High Yield (1/4/94), Alliance Intermediate Government
Securities (6/1/94), Alliance International (9/1/95), Alliance Money
Market (5/11/82), Alliance Quality Bond (1/4/94), Alliance Small Cap
Growth (6/2/97), EQ/Balanced (5/1/84), MFS Emerging Growth Companies
(6/2/97), MFS Research (6/2/97), Mercury Basic Value Equity (6/2/97),
Mercury World Strategy (6/2/97), Morgan Stanley Emerging Markets Equity
(8/20/97), EQ/Putnam Balanced (6/2/97), EQ/Putnam Growth & Income Value
(6/2/97), T. Rowe Price Equity Income (6/2/97), T. Rowe Price
International Stock (6/2/97), Warburg Pincus Small Company Value
(6/2/97). The inception dates for the variable investment options that
became available after 12/31/98 are therefore not shown in this table
are: EQ/Evergreen, EQ/Evergreen Foundation, MFS Growth with Income,
EQ/Alliance Premier Growth, Capital Guardian Research, and Capital
Guardian U.S. Equity (8/30/99) and EQ/Alliance Technology (5/1/00).
** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding
portfolios of EQ Advisors Trust on 10/18/99. The portfolio inception
dates are: EQ/Aggressive Stock (5/1/84), EQ/Balanced (5/1/84), Alliance
Common Stock (8/1/68), Alliance Conservative Investors (10/2/89),
Alliance Equity Index (3/1/94), Alliance Global (8/27/87), Alliance
Growth and Income (10/1/93), Alliance Growth Investors (10/2/89),
Alliance High Yield (1/2/87), Alliance Intermediate Government Securities
(4/1/91), Alliance International (4/3/95), Alliance
<PAGE>
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79
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Money Market (5/11/82), Alliance Quality Bond (10/1/93), Alliance Small
Cap Growth (5/1/97), MFS Emerging Growth Companies (5/1/97), MFS Research
(5/1/97), Mercury Basic Value Equity (5/1/97), Mercury World Strategy
(5/1/97), Morgan Stanley Emerging Markets Equity (8/20/97), EQ/Putnam
Balanced (5/1/97), EQ/Putnam Growth & Income Value (5/1/97), T. Rowe Price
Equity Income (5/1/97), T. Rowe Price International Stock (5/1/97),
Warburg Pincus Small Company Value (5/1/97). EQ/Evergreen, EQ/Evergreen
Foundation, MFS Growth with Income (inception dates of 12/31/98) are not
included because the variable investment options that correspond to the
portfolios became available after 12/31/98. The inception dates for the
portfolios that became available on or after 12/31/98 and are therefore
not shown in the tables are: EQ/Alliance Premier Growth, Capital Guardian
Research, and Capital Guardian U.S. Equity (4/30/99), EQ/Alliance
Technology (5/1/00).
<PAGE>
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TABLE 2
GROWTH OF $1,000 UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
LENGTH OF INVESTMENT PERIOD
-----------------------------------------------------------------------------
SINCE
1 3 5 10 PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/Aggressive Stock $ 1,087.74 $ 1,123.96 $ 1,737.40 $ 3,491.17 $ 8,712.54
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock $ 1,144.67 $ 1,821.06 $ 2,896.44 $ 4,004.07 $ 24,332.04
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors $ 1,006.33 $ 1,214.41 $ 1,441.12 $ 1,806.37 $ 1,846.08
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Equity Index $ 1,101.11 $ 1,778.01 $ 2,877.87 - $ 2,824.22
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Global $ 1,267.06 $ 1,625.87 $ 2,103.61 $ 3,118.14 $ 3,499.80
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income $ 1,085.36 $ 1,566.72 $ 2,244.66 - $ 2,125.31
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors $ 1,157.81 $ 1,514.12 $ 2,049.08 $ 3,549.13 $ 3,684.70
- ---------------------------------------------------------------------------------------------------------------------------
Alliance High Yield $ 883.00 $ 915.97 $ 1,280.91 $ 1,885.62 $ 2,051.03
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government Securities $ 914.92 $ 978.29 $ 1,064.35 - $ 1,215.22
- ---------------------------------------------------------------------------------------------------------------------------
Alliance International $ 1,260.28 $ 1,262.88 - - $ 1,442.08
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Money Market $ 959.14 $ 985.36 $ 1,008.33 $ 1,102.93 $ 1,687.14
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond $ 895.36 $ 982.52 $ 1,129.56 - $ 1,046.50
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth $ 1,169.97 - - - $ 1,341.32
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Balanced $ 1,077.65 $ 1,369.45 $ 1,738.88 $ 2,146.09 $ 4,081.82
- ---------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies $ 1,603.47 - - - $ 2,561.01
- ---------------------------------------------------------------------------------------------------------------------------
MFS Research $ 1,126.08 - - - $ 1,543.93
- ---------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity $ 1,087.90 - - - $ 1,326.12
- ---------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy $ 1,109.90 - - - $ 1,172.27
- ---------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity $ 1,821.24 - - - $ 985.22
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced $ 913.99 - - - $ 1,100.86
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value $ 901.23 - - - $ 1,112.76
- ---------------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income $ 946.11 - - - $ 1,192.84
- ---------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock $ 1,206.17 - - - $ 1,276.97
- ---------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value $ 930.09 - - - $ 931.73
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Portfolio inception dates are shown in Table 1.
<PAGE>
- --------
81
- --------------------------------------------------------------------------------
TABLE 3
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK 17.12% 8.12% 14.58% 14.88% - 15.99%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Growth 51.65% 24.68% 19.97% 14.78% - 15.86%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 18.09% 17.48% 19.92% 15.41% - 14.58%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 23.38% 26.06% 26.21% 16.89% 16.77% 12.30%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% 26.87% 25.55% 16.90% 15.83% 15.16%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 27.56% 28.56% 18.21% 17.88% 16.19%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS 8.55% 10.78% 10.83% 8.34% - 8.41%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Income 4.42% 11.65% 13.70% 10.10% - 10.15%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 4.19% 12.07% 13.60% 10.75% - 10.68%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX 18.64% 25.07% 25.98% - - 21.85%
- ------------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index Funds 19.36% 25.86% 26.81% - - 23.89%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 27.56% 28.56% - - 24.14%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 36.52% 21.68% 18.96% 14.15% - 12.80%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Global 44.62% 23.92% 20.57% 11.65% - 11.06%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 24.93% 21.61% 19.76% 11.42% - 10.74%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME 16.94% 20.28% 20.28% - - 15.43%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% 17.23% 20.50% - - 16.45%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 20.71% 23.10% 25.01% - - 18.77%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS 24.75% 18.71% 18.25% 15.28% - 15.29%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 10.45% 14.19% 15.15% 11.65% - 11.68%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 13.77% 20.90% 22.15% 15.13% - 15.15%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (4.75)% 1.30% 8.27% 8.63% - 7.77%
- ------------------------------------------------------------------------------------------------------------------------
Lipper High Yield 3.65% 4.82% 8.59% 9.61% - 7.79%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark #1 1.57% 5.91% 9.61% 10.79% - 9.99%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark #2 3.28% 5.37% 9.07% 11.06% - 10.04%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT
SECURITIES (1.31)% 3.48% 4.82% - - 4.74%
- ------------------------------------------------------------------------------------------------------------------------
Lipper U.S. Government (2.60)% 4.04% 5.81% - - 5.89%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 0.49% 5.50% 6.93% - - 6.76%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERNATIONAL 35.79% 12.23% - - - 11.49%
- ------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% 18.74% - - - 16.13%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% 15.74% - - - 13.11%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET 3.46% 3.72% 3.83% 3.66% - 5.13%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Money Market 3.78% 4.05% 4.16% 3.96% - 5.70%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 4.74% 5.01% 5.20% 5.06% 6.65%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE QUALITY BOND (3.42)% 3.62% 5.91% - - 3.44%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Corporate Bond A-Rated (2.56)% 4.06% 6.53% - - 4.36%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark (0.82)% 5.73% 7.73% - - 5.64%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH 26.06% - - - - 16.17%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 19.49%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% - - - - 25.88%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
82
- --------------------------------------------------------------------------------
TABLE 3 (CONTINUED)
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
EQ/BALANCED 16.09% 15.26% 14.74% 10.18% - 11.04%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 10.45% 14.19% 15.15% 11.65% - 11.09%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 9.07% 16.47% 17.93% 13.04% - 13.19%
- ------------------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES 71.16% - - - - 46.12%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% - - - - 32.50%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 16.99%
- ------------------------------------------------------------------------------------------------------------------------
MFS RESEARCH 21.33% - - - - 22.15%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 29.33%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 17.22% - - - - 15.37%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 18.00%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 19.59% - - - - 10.51%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio 12.93% - - - - 11.91%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 13.07% - - - - 16.18%
- ------------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS
EQUITY 92.91% - - - - 4.17%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% - - - - 2.90%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 66.41% - - - - (0.88)%
- ------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED (1.41)% - - - - 8.12%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% - - - - 13.91%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 11.39% - - - - 18.81%
- ------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE (2.79)% - - - - 8.52%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 18.00%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME 2.05% - - - - 11.18%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Equity Income 6.90% - - - - 14.28%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK 29.96% - - - - 14.05%
- ------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 20.38%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 18.32%
- ------------------------------------------------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY
VALUE 0.32% - - - - 1.83%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 24.22%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 16.99%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark #2 (1.49)% - - - - 7.06%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Portfolio inception dates are shown in Table 1. Lipper Survey and
benchmark "Since portfolio inception" information are as of the month-end
closest to the actual date of portfolio inception.
<PAGE>
- -----
83
- --------------------------------------------------------------------------------
TABLE 4
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK 17.12% 26.40% 97.47% 300.28% - 922.01%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Growth 51.65% 102.87% 158.98% 311.69% - 683.45%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 18.09% 62.12% 147.96% 319.19% - 595.55%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 23.38% 100.34% 220.25% 376.26% 2,121.65% 3,729.11%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% 106.30% 216.51% 386.68% 1,816.52% 2,838.39%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 107.56% 251.12% 432.78% 2,584.39% 3,555.48%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS 8.55% 35.94% 67.23% 122.78% - 128.84%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Income 4.42% 39.31% 91.71% 163.35% - 169.02%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 4.19% 40.74% 89.21% 177.71% - 186.90%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX 18.64% 95.63% 217.35% - - 216.91%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index Funds 19.36% 99.37% 227.98% - - 242.77%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 107.56% 251.12% - - 253.66%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 36.52% 80.14% 138.21% 275.67% - 342.46%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Global 44.62% 93.38% 162.57% 205.54% - 273.03%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 24.93% 79.83% 146.35% 194.99% - 252.80%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME 16.94% 74.00% 151.78% - - 145.19%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% 62.52% 157.04% - - 158.01%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 20.71% 86.55% 205.26% - - 204.09%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS 24.75% 67.27% 131.17% 314.65% - 329.68%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 10.45% 49.38% 103.90% 204.29% - 211.11%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 13.77% 76.71% 171.92% 309.28% - 352.50%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (4.75)% 3.94% 48.75% 128.87% - 164.55%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper High Yield 3.65% 15.25% 51.19% 151.82% - 166.74%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark #1 1.57% 18.80% 58.22% 178.72% - 245.03%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark #2 3.28% 17.00% 54.39% 185.43% - 246.92%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE
GOVERNMENT SECURITIES (1.31)% 10.80% 26.55% - - 49.33%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper U.S. Government (2.60)% 12.55% 32.56% - - 64.40%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 0.49% 17.43% 39.81% - - 77.41%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERNATIONAL 35.79% 41.36% - - - 67.52%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% 69.17% - - - 103.07%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% 55.06% - - - 79.52%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET 3.46% 11.58% 20.69% 43.21% - 141.84%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Money Market 3.78% 12.64% 22.65% 47.52% - 178.18%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 4.74% 15.79% 28.88% 63.79% - 229.35%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------
84
- --------------------------------------------------------------------------------
TABLE 4 (CONTINUED)
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE QUALITY BOND (3.42)% 11.27% 33.23% - - 23.53%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Corporate Bond A-Rated (2.56)% 12.69% 37.39% - - 30.19%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark (0.82)% 18.20% 45.12% - - 40.97%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH 26.06% - - - - 49.19%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 62.98%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% - - - - 84.91%
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/BALANCED 16.09% 53.13% 98.88% 163.71% - 416.09%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 10.45% 49.38% 103.90% 204.29% - 335.16%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 9.07% 58.00% 128.08% 240.54% - 558.00%
- -----------------------------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES 71.16% - - - - 175.11%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% - - - - 120.85%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 52.05%
- -----------------------------------------------------------------------------------------------------------------------------------
MFS RESEARCH 21.33% - - - - 70.55%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 101.13%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 17.22% - - - - 46.46%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 56.85%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 19.59% - - - - 30.55%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio 12.93% - - - - 35.69%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 13.07% - - - - 49.16%
- -----------------------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS
EQUITY 92.91% - - - - 10.13%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% - - - - 7.48%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 66.41% - - - - 5.32%
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED (1.41)% - - - - 23.16%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% - - - - 42.44%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 11.39% - - - - 61.21%
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE (2.79)% - - - - 24.39%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 56.85%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME 2.05% - - - - 32.68%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Equity Income 6.90% - - - - 43.31%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
85
- --------------------------------------------------------------------------------
TABLE 4 (CONTINUED)
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
T. ROWE PRICE INTERNATIONAL STOCK 29.96% - - - - 42.03%
- ------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 65.44%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 56.70%
- ------------------------------------------------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY
VALUE 0.32% - - - - 4.97%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 83.94%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 52.05%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark #2 (1.49)% - - - - 19.99%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Portfolio inception dates are shown in Table 1. Lipper Survey and
benchmark "Since portfolio inception" information are as of the month-end
closest to the actual date of portfolio inception.
<PAGE>
- -------
86
- --------------------------------------------------------------------------------
TABLE 5
YEAR-BY-YEAR RATES OF RETURN
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
1990 1991 1992 1993
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 5.62% 84.38% (4.57)% 15.06%
- -------------------------------------------------------------------------------------------------
Alliance Common Stock (9.27)% 35.81% 1.72% 23.02%
- -------------------------------------------------------------------------------------------------
Alliance Conservative Investors 4.86% 18.11% 4.26% 9.16%
- -------------------------------------------------------------------------------------------------
Alliance Equity Index - - - -
- -------------------------------------------------------------------------------------------------
Alliance Global (7.42)% 28.66% (1.96)% 30.21%
- -------------------------------------------------------------------------------------------------
Alliance Growth and Income - - - (0.62)%+
- -------------------------------------------------------------------------------------------------
Alliance Growth Investors 9.01% 46.75% 3.41% 13.59%
- -------------------------------------------------------------------------------------------------
Alliance High Yield (2.53)% 22.66% 10.68% 21.36%
- -------------------------------------------------------------------------------------------------
Alliance Intermediate Government
Securities - 10.85%+ 4.06% 8.98%
- -------------------------------------------------------------------------------------------------
Alliance International - - - -
- -------------------------------------------------------------------------------------------------
Alliance Money Market 6.78% 4.67% 2.06% 1.47%
- -------------------------------------------------------------------------------------------------
Alliance Quality Bond - - - (0.87)%
- -------------------------------------------------------------------------------------------------
Alliance Small Cap Growth - - - -
- -------------------------------------------------------------------------------------------------
EQ/Balanced (1.46)% 40.02% (4.25)% 10.68%
- -------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies - - - -
- -------------------------------------------------------------------------------------------------
MFS Research - - - -
- -------------------------------------------------------------------------------------------------
Mercury Basic Value Equity - - - -
- -------------------------------------------------------------------------------------------------
Mercury World Strategy - - - -
- -------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets
Equity - - - -
- -------------------------------------------------------------------------------------------------
EQ/Putnam Balanced - - - -
- -------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value - - - -
- -------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income - - - -
- -------------------------------------------------------------------------------------------------
T. Rowe Price International Stock - - - -
- -------------------------------------------------------------------------------------------------
Warburg Pincus Small Company
Value - - - -
- -------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/Aggressive Stock (5.21)% 29.73% 20.42% 9.20% (1.17)% 17.12%
- -----------------------------------------------------------------------------------------------------------------------
Alliance Common Stock (3.56)% 30.54% 22.46% 27.34% 27.51% 23.38%
- -----------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors (5.49)% 18.66% 3.67% 11.59% 12.23% 8.55%
- -----------------------------------------------------------------------------------------------------------------------
Alliance Equity Index (0.14)%+ 34.51% 20.60% 30.65% 26.22% 18.64%
- -----------------------------------------------------------------------------------------------------------------------
Alliance Global 3.71% 17.10% 12.93% 9.93% 20.03% 36.52%
- -----------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income (2.01)% 22.28% 18.34% 24.92% 19.11% 16.94%
- -----------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors (4.55)% 24.54% 10.96% 15.08% 16.51% 24.75%
- -----------------------------------------------------------------------------------------------------------------------
Alliance High Yield (4.19)% 18.18% 21.09% 16.75% (6.53)% (4.75)%
- -----------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government
Securities (5.76)% 11.69% 2.26% 5.74% 6.18% (1.31)%
- -----------------------------------------------------------------------------------------------------------------------
Alliance International - 9.51%+ 8.21% (4.46)% 8.96% 35.79%
- -----------------------------------------------------------------------------------------------------------------------
Alliance Money Market 2.51% 4.22% 3.79% 3.89% 3.81% 3.46%
- -----------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond (6.47)% 15.33% 3.82% 7.56% 7.11% (3.42)%
- -----------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth - - - 25.46%+ (5.66)% 26.06%
- -----------------------------------------------------------------------------------------------------------------------
EQ/Balanced (9.35)% 18.02% 10.05% 13.33% 16.40% 16.09%
- -----------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies - - - 21.25%+ 32.57% 71.16%
- -----------------------------------------------------------------------------------------------------------------------
MFS Research - - - 14.93%+ 22.31% 21.33%
- -----------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity - - - 15.89%+ 7.82% 17.22%
- -----------------------------------------------------------------------------------------------------------------------
Mercury World Strategy - - - 3.70%+ 5.27% 19.59%
- -----------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets
Equity - - - (20.62)%+ (28.08)% 92.91%
- -----------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced - - - 13.37%+ 10.19% (1.41)%
- -----------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value - - - 15.09%+ 11.19% (2.79)%
- -----------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income - - - 20.95%+ 7.49% 2.05%
- -----------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock - - - (2.46)%+ 12.05% 29.96%
- -----------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company
Value - - - 17.97%+ (11.31)% 0.32%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Returns for these portfolios represent less than 12 months of
performance. The returns are as of each portfolio's inception date as
shown in Table 1
<PAGE>
- ----------
87
- --------------------------------------------------------------------------------
COMMUNICATING PERFORMANCE DATA
In reports or other communications to contract owners or in advertising
material, we may describe general economic and market conditions affecting our
variable investment options and the portfolios and may compare the performance
or ranking of those options and the portfolios with:
o those of other insurance company separate accounts or mutual funds included
in the rankings prepared by Lipper Analytical Services, Inc., Morningstar,
Inc., VARDS, or similar investment services that monitor the performance of
insurance company separate accounts or mutual funds;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective contract owners advertisements or
other communications that include evaluations of a variable investment option or
portfolio by nationally recognized financial publications. Examples of such
publications are:
- --------------------------------------------------------------------------
Barron's Money Management Letter
Morningstar's Variable Annuity Investment Dealers Digest
Sourcebook National Underwriter
Business Week Pension & Investments
Forbes USA Today
Fortune Investor's Business Daily
Institutional Investor The New York Times
Money The Wall Street Journal
Kiplinger's Personal Finance The Los Angeles Times
Financial Planning The Chicago Tribune
Investment Adviser
Investment Management Weekly
- --------------------------------------------------------------------------
Lipper compiles performance data for peer universes of funds with similar
investment objectives in its Lipper Survey. Morningstar, Inc. compiles similar
data in the Morningstar Variable Annuity/Life Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800 mutual
funds underlying variable annuity and life insurance products. It divides these
actively managed portfolios into 25 categories by portfolio objectives. The
Lipper Survey contains two different universes, which reflect different types of
fees in performance data:
o The "separate account" universe reports performance data net of investment
management fees, direct operating expenses and asset-based charges
applicable under variable life and annuity contracts; and
o The "mutual fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects only
charges that relate to the underlying mutual fund.
The Morningstar Variable Annuity/Life Report consists of nearly 700 variable
life and annuity funds, all of which report their data net of investment
management fees, direct operating expenses and separate account level charges.
VARDS is a monthly reporting service that monitors approximately 2,500 variable
life and variable annuity funds on performance and account information.
YIELD INFORMATION
Current yield for the Alliance Money Market option will be based on net changes
in a hypothetical investment over a given seven-day period, exclusive of capital
changes, and then "annualized" (assuming that the same seven-day result would
occur each week for 52 weeks). Current yield for the other options will be based
on net changes in a hypothetical investment over a given 30-day period,
exclusive of capital changes, and then "annualized" (assuming that the same
30-day result would occur each month for 12 months).
"Effective yield" is calculated in a similar manner, but when annualized, any
income earned by the investment is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because any earnings are
compounded weekly for the Alliance Money Market option. The current yields and
effective yields assume the deduction
<PAGE>
- --------
88
- --------------------------------------------------------------------------------
of all current contract charges and expenses other than the annual
administrative charge, and any charges for state premium and other applicable
taxes. For more information, see "Alliance Money Market option yield
information" and "Other yield information" in the SAI.
<PAGE>
10 Incorporation of certain documents by reference
- ---------
89
- --------------------------------------------------------------------------------
Equitable Life's annual report on Form 10-K for the year ended December 31,
1999, is considered to be a part of this prospectus because it is incorporated
by reference.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act") will be considered to
become part of this prospectus because they are incorporated by reference.
Any statement contained in a document that is or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of its
incorporation, will be considered changed or replaced for the purpose of this
prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our annual report on
Form 10-K and quarterly reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a Web site that contains reports,
proxy and information statements and other information regarding registrants
that file electronically with the SEC. The address of the site is
http://www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person to
whom this prospectus is delivered a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to The
Equitable Life Assurance Society of the United States, 1290 Avenue of the
Americas, New York, New York 10104. Attention: Corporate Secretary (telephone:
(212) 554-1234).
<PAGE>
Appendix I: Condensed financial information
- --------
A-1
- --------------------------------------------------------------------------------
The following tables show the accumulation unit values and the number of
outstanding units for each variable investment option under each contract series
at the last business day of the periods shown. The unit values and number of
units outstanding are for contracts offered under Separate Account A with the
same asset based charge. The information presented is shown for the past ten
years, or from the first year the particular contracts were offered if less than
ten years ago.
SERIES 300 AND 400 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION,
EXCEPT FOR EQ/ALLIANCE TECHNOLOGY WHICH IS BEING OFFERED FOR THE FIRST TIME ON
MAY 22, 2000.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
DECEMBER 31,
-----------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 95.45 $ 123.95 $ 149.41 $ 163.33 $ 161.59 $ 189.44
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 664 1,310 2,468 3,226 3,342 2,980
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 97.03 $ 126.78 $ 155.42 $ 198.12 $ 252.88 $ 312.31
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 948 1,989 3,457 4,765 5,808 6,502
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 95.10 $ 112.97 $ 117.25 $ 130.98 $ 147.17 $ 159.92
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 325 491 567 553 661 752
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 100.95 $ 135.94 $ 164.12 $ 214.66 $ 271.24 $ 322.15
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 47 592 1,486 2,686 3,805 4,579
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 104.12 $ 122.06 $ 138.00 $ 151.87 $ 182.50 $ 249.93
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,305 2,121 2,995 3,369 3,395 3,509
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 98.86 $ 121.02 $ 143.37 $ 179.30 $ 213.81 $ 250.31
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 210 498 975 1,800 2,475 3,095
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 96.31 $ 120.08 $ 133.40 $ 153.69 $ 180.63 $ 225.59
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,023 2,113 3,325 3,704 3,962 4,231
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 95.88 $ 113.44 $ 137.53 $ 160.74 $ 150.42 $ 143.43
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 99 209 444 831 1,164 34
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT
SECURITIES
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 98.19 $ 109.80 $ 112.40 $ 118.98 $ 126.48 $ 124.96
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 32 89 146 202 314 360
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -------
A-2
- --------------------------------------------------------------------------------
SERIES 300 AND 400 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT
OPTION, EXCEPT FOR EQ/ALLIANCE TECHNOLOGY WHICH IS BEING OFFERED FOR THE FIRST
TIME ON MAY 22, 2000. (CONTINUED)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
DECEMBER 31,
-----------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE INTERNATIONAL
- --------------------------------------------------------------------------------------------------------------------
Unit value - $ 104.15 $ 112.83 $ 107.92 $ 117.72 $ 160.04
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) - 141 763 968 971 926
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 102.61 $ 107.04 $ 111.21 $ 115.66 $ 120.19 $ 124.47
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 63 81 165 146 262 360
- --------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 116.36
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 887
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE QUALITY BOND
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 93.87 $ 108.38 $ 112.65 $ 121.30 $ 130.07 $ 125.76
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 53 135 196 283 557 622
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH
- --------------------------------------------------------------------------------------------------------------------
Unit value - - - $ 125.55 $ 118.57 $ 149.54
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) - - - 488 1,101 976
- --------------------------------------------------------------------------------------------------------------------
EQ/BALANCED
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 91.64 $ 108.26 $ 119.26 $ 135.29 $ 157.63 $ 183.18
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 289 386 548 655 752 854
- --------------------------------------------------------------------------------------------------------------------
CAPITAL GUARDIAN RESEARCH
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 106.78
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 8
- --------------------------------------------------------------------------------------------------------------------
CAPITAL GUARDIAN U.S. EQUITY
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 101.64
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 13
- --------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 106.57
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5
- --------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN FOUNDATION
- --------------------------------------------------------------------------------------------------------------------
Unit value $ 105.16
- --------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-3
- --------------------------------------------------------------------------------
SERIES 300 AND 400 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT
OPTION, EXCEPT FOR EQ/ALLIANCE TECHNOLOGY WHICH IS BEING OFFERED FOR THE FIRST
TIME ON MAY 22, 2000. (CONTINUED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
DECEMBER 31,
---------------------------------------------
1997 1998 1999
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
MFS EMERGING GROWTH COMPANIES
- -----------------------------------------------------------------------------------------
Unit value $ 121.34 $ 161.04 $ 275.93
- -----------------------------------------------------------------------------------------
Number of units outstanding (000's) 256 1,090 2,427
- -----------------------------------------------------------------------------------------
MFS GROWTH WITH INCOME
- -----------------------------------------------------------------------------------------
Unit value $ 104.48
- -----------------------------------------------------------------------------------------
Number of units outstanding (000's) 18
- -----------------------------------------------------------------------------------------
MFS RESEARCH
- -----------------------------------------------------------------------------------------
Unit value $ 115.01 $ 140.83 $ 171.06
- -----------------------------------------------------------------------------------------
Number of units outstanding (000's) 236 720 959
- -----------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY
- -----------------------------------------------------------------------------------------
Unit value $ 115.97 $ 127.67 $ 149.82
- -----------------------------------------------------------------------------------------
Number of units outstanding (000's) 145 444 617
- -----------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY
- -----------------------------------------------------------------------------------------
Unit value $ 103.77 $ 109.37 $ 130.94
- -----------------------------------------------------------------------------------------
Number of units outstanding (000's) 52 84 88
- -----------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY
- -----------------------------------------------------------------------------------------
Unit value $ 79.41 $ 57.18 $ 110.43
- -----------------------------------------------------------------------------------------
Number of units outstanding (000's) 109 217 590
- -----------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED
- -----------------------------------------------------------------------------------------
Unit value $ 113.46 $ 125.16 $ 123.53
- -----------------------------------------------------------------------------------------
Number of units outstanding (000's) 109 275 345
- -----------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- -----------------------------------------------------------------------------------------
Unit value $ 115.17 $ 128.20 $ 124.76
- -----------------------------------------------------------------------------------------
Number of units outstanding (000's) 250 581 648
- -----------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME
- -----------------------------------------------------------------------------------------
Unit value $ 121.04 $ 130.25 $ 133.07
- -----------------------------------------------------------------------------------------
Number of units outstanding (000's) 475 1,070 1,072
- -----------------------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK
- -----------------------------------------------------------------------------------------
Unit value $ 97.61 $ 109.49 $ 142.46
- -----------------------------------------------------------------------------------------
Number of units outstanding (000's) 387 671 765
- -----------------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE
- -----------------------------------------------------------------------------------------
Unit value $ 118.06 $ 104.82 $ 105.28
- -----------------------------------------------------------------------------------------
Number of units outstanding (000's) 577 859 721
- -----------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-4
- --------------------------------------------------------------------------------
SERIES 500 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
DECEMBER 31,
-------------------------
1998 1999
- ------------------------------------------------------------------------
<S> <C> <C>
EQ/AGGRESSIVE STOCK
- ------------------------------------------------------------------------
Unit value $ 90.25 $ 105.69
- ------------------------------------------------------------------------
Number of units outstanding (000's) 1 4
- ------------------------------------------------------------------------
ALLIANCE COMMON STOCK
- ------------------------------------------------------------------------
Unit value $ 102.87 $ 126.91
- ------------------------------------------------------------------------
Number of units outstanding (000's) 5 19
- ------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS
- ------------------------------------------------------------------------
Unit value $ 102.74 $ 111.52
- ------------------------------------------------------------------------
Number of units outstanding (000's) - -
- ------------------------------------------------------------------------
ALLIANCE EQUITY INDEX
- ------------------------------------------------------------------------
Unit value $ 103.68 $ 123.01
- ------------------------------------------------------------------------
Number of units outstanding (000's) 2 9
- ------------------------------------------------------------------------
ALLIANCE GLOBAL
- ------------------------------------------------------------------------
Unit value $ 98.37 $ 134.30
- ------------------------------------------------------------------------
Number of units outstanding (000's) - 2
- ------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME
- ------------------------------------------------------------------------
Unit value $ 102.73 $ 120.13
- ------------------------------------------------------------------------
Number of units outstanding (000's) 1 4
- ------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS
- ------------------------------------------------------------------------
Unit value $ 101.93 $ 127.16
- ------------------------------------------------------------------------
Number of units outstanding (000's) 1 2
- ------------------------------------------------------------------------
ALLIANCE HIGH YIELD
- ------------------------------------------------------------------------
Unit value $ 89.20 $ 84.96
- ------------------------------------------------------------------------
Number of units outstanding (000's) - 1
- ------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT
SECURITIES
- ------------------------------------------------------------------------
Unit value $ 103.22 $ 101.96
- ------------------------------------------------------------------------
Number of units outstanding (000's) - -
- ------------------------------------------------------------------------
ALLIANCE INTERNATIONAL
- ------------------------------------------------------------------------
Unit value $ 93.00 $ 126.29
- ------------------------------------------------------------------------
Number of units outstanding (000's) 1 1
- ------------------------------------------------------------------------
</TABLE>
Appendix I: Condensed financial information
<PAGE>
- -----
A-5
- --------------------------------------------------------------------------------
SERIES 500 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
(CONTINUED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
DECEMBER 31,
-----------------------------
1998 1999
- -----------------------------------------------------------------------
<S> <C> <C>
ALLIANCE MONEY MARKET
- -----------------------------------------------------------------------
Unit value $ 101.68 $ 105.20
- -----------------------------------------------------------------------
Number of units outstanding (000's) - -
- -----------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- -----------------------------------------------------------------------
Unit value $ 116.32
- -----------------------------------------------------------------------
Number of units outstanding (000's) -
- -----------------------------------------------------------------------
ALLIANCE QUALITY BOND
- -----------------------------------------------------------------------
Unit value $ 103.62 $ 100.08
- -----------------------------------------------------------------------
Number of units outstanding (000's) - -
- -----------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH
- -----------------------------------------------------------------------
Unit value $ 86.93 $ 109.59
- -----------------------------------------------------------------------
Number of units outstanding (000's) 1 1
- -----------------------------------------------------------------------
EQ/BALANCED
- -----------------------------------------------------------------------
Unit value $ 102.39 $ 118.86
- -----------------------------------------------------------------------
Number of units outstanding (000's) - 2
- -----------------------------------------------------------------------
CAPITAL GUARDIAN RESEARCH
- -----------------------------------------------------------------------
Unit value $ 106.74
- -----------------------------------------------------------------------
Number of units outstanding (000's) -
- -----------------------------------------------------------------------
CAPITAL GUARDIAN U.S. EQUITY
- -----------------------------------------------------------------------
Unit value $ 101.60
- -----------------------------------------------------------------------
Number of units outstanding (000's) -
- -----------------------------------------------------------------------
EQ/EVERGREEN
- -----------------------------------------------------------------------
Unit value $ 106.53
- -----------------------------------------------------------------------
Number of units outstanding (000's) -
- -----------------------------------------------------------------------
EQ/EVERGREEN FOUNDATION
- -----------------------------------------------------------------------
Unit value $ 105.11
- -----------------------------------------------------------------------
Number of units outstanding (000's) -
- -----------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES
- -----------------------------------------------------------------------
Unit value $ 103.41 $ 177.00
- -----------------------------------------------------------------------
Number of units outstanding (000's) 1 6
- -----------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-6
- --------------------------------------------------------------------------------
SERIES 500 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
(CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
DECEMBER 31,
----------------------------
1998 1999
- ------------------------------------------------------------------------
<S> <C> <C>
MFS GROWTH WITH INCOME
- ------------------------------------------------------------------------
Unit value $ 104.44
- ------------------------------------------------------------------------
Number of units outstanding (000's) -
- ------------------------------------------------------------------------
MFS RESEARCH
- ------------------------------------------------------------------------
Unit value $ 98.99 $ 120.11
- ------------------------------------------------------------------------
Number of units outstanding (000's) 1 3
- ------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY
- ------------------------------------------------------------------------
Unit value $ 97.80 $ 114.64
- ------------------------------------------------------------------------
Number of units outstanding (000's) - 1
- ------------------------------------------------------------------------
MERCURY WORLD STRATEGY
- ------------------------------------------------------------------------
Unit value $ 94.86 $ 113.44
- ------------------------------------------------------------------------
Number of units outstanding (000's) - -
- ------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY
- ------------------------------------------------------------------------
Unit value $ 81.40 $ 157.03
- ------------------------------------------------------------------------
Number of units outstanding (000's) - -
- ------------------------------------------------------------------------
EQ/PUTNAM BALANCED
- ------------------------------------------------------------------------
Unit value $ 101.05 $ 99.62
- ------------------------------------------------------------------------
Number of units outstanding (000's) - 1
- ------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- ------------------------------------------------------------------------
Unit value $ 100.48 $ 97.68
- ------------------------------------------------------------------------
Number of units outstanding (000's) - 1
- ------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME
- ------------------------------------------------------------------------
Unit value $ 101.00 $ 103.08
- ------------------------------------------------------------------------
Number of units outstanding (000's) - 1
- ------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK
- ------------------------------------------------------------------------
Unit value $ 94.04 $ 122.22
- ------------------------------------------------------------------------
Number of units outstanding (000's) - 1
- ------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE
- ------------------------------------------------------------------------
Unit value $ 82.78 $ 83.05
- ------------------------------------------------------------------------
Number of units outstanding (000's) - 1
- ------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-7
- --------------------------------------------------------------------------------
SERIES 100 AND 200 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
DECEMBER 31,
--------------------------------------------------------------
1989 1990 1991 1992 1993
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK
- -----------------------------------------------------------------------------------------
Unit value $ 25.86 $ 27.36 $ 50.51 $ 48.30 $ 55.68
- -----------------------------------------------------------------------------------------
Number of units
outstanding (000's) 8,134 9,545 12,962 17,986 21,496
- -----------------------------------------------------------------------------------------
ALLIANCE COMMON
STOCK
- -----------------------------------------------------------------------------------------
Unit value $ 83.40 $ 75.67 $ 102.76 $ 104.63 $ 128.81
- -----------------------------------------------------------------------------------------
Number of units
outstanding (000's) 8,645 9,670 10,292 11,841 13,917
- -----------------------------------------------------------------------------------------
ALLIANCE
CONSERVATIVE
INVESTORS
- -----------------------------------------------------------------------------------------
Unit value - - - - -
- -----------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - -
- -----------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX
- -----------------------------------------------------------------------------------------
Unit value - - - - -
- -----------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - -
- -----------------------------------------------------------------------------------------
ALLIANCE GLOBAL
- -----------------------------------------------------------------------------------------
Unit value - - - - -
- -----------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - -
- -----------------------------------------------------------------------------------------
ALLIANCE GROWTH AND
INCOME
- -----------------------------------------------------------------------------------------
Unit value - - - - -
- -----------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - -
- -----------------------------------------------------------------------------------------
ALLIANCE GROWTH
INVESTORS
- -----------------------------------------------------------------------------------------
Unit value - - - - -
- -----------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - -
- -----------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD
- -----------------------------------------------------------------------------------------
Unit value - - - - -
- -----------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - -
- -----------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------
DECEMBER 31,
---------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK
- -----------------------------------------------------------------------------------------------------
Unit value $ 52.88 $ 68.73 $ 82.91 $ 90.75 $ 89.92 $ 105.59
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 24,787 25,821 27,945 28,030 25,634 20,946
- -----------------------------------------------------------------------------------------------------
ALLIANCE COMMON
STOCK
- -----------------------------------------------------------------------------------------------------
Unit value $ 124.32 $ 162.42 $ 199.05 $ 253.68 $ 323.75 $ 399.74
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 15,749 16,292 16,933 17,386 17,231 16,705
- -----------------------------------------------------------------------------------------------------
ALLIANCE
CONSERVATIVE
INVESTORS
- -----------------------------------------------------------------------------------------------------
Unit value $ 95.10 $ 112.97 $ 117.25 $ 130.98 $ 147.17 $ 159.92
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 325 491 567 553 661 752
- -----------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX
- -----------------------------------------------------------------------------------------------------
Unit value $ 100.95 $ 135.94 $ 164.12 $ 214.66 $ 271.24 $ 322.15
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 47 592 1,486 2,686 3,805 4,579
- -----------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL
- -----------------------------------------------------------------------------------------------------
Unit value $ 104.12 $ 122.06 $ 138.00 $ 151.87 $ 182.50 $ 249.93
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 1,305 2,121 2,995 3,369 3,395 3,509
- -----------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND
INCOME
- -----------------------------------------------------------------------------------------------------
Unit value $ 98.86 $ 121.02 $ 143.37 $ 179.30 $ 213.81 $ 250.31
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 210 498 975 1,800 2,475 3,095
- -----------------------------------------------------------------------------------------------------
ALLIANCE GROWTH
INVESTORS
- -----------------------------------------------------------------------------------------------------
Unit value $ 96.31 $ 120.08 $ 133.40 $ 153.69 $ 180.63 $ 225.59
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 1,023 2,113 3,325 3,704 3,962 4,231
- -----------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD
- -----------------------------------------------------------------------------------------------------
Unit value $ 95.88 $ 113.44 $ 137.53 $ 160.74 $ 150.42 $ 143.43
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 99 209 444 831 1,164 998
- -----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-8
- --------------------------------------------------------------------------------
SERIES 100 AND 200 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
(CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31,
1989 1990 1991 1992 1993
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ALLIANCE
INTERMEDIATE
GOVERNMENT
SECURITIES
- -----------------------------------------------------------------------------------------------------
Unit value - - - - -
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - -
- -----------------------------------------------------------------------------------------------------
ALLIANCE
INTERNATIONAL
- -----------------------------------------------------------------------------------------------------
Unit value - - - - -
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - -
- -----------------------------------------------------------------------------------------------------
ALLIANCE MONEY
MARKET
- -----------------------------------------------------------------------------------------------------
Unit value $ 21.89 $ 23.38 $ 24.48 $ 25.01 $ 25.41
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 1,045 1,307 1,325 1,201 1,065
- -----------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER
GROWTH
- -----------------------------------------------------------------------------------------------------
Unit value
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's)
- -----------------------------------------------------------------------------------------------------
ALLIANCE QUALITY
BOND
- -----------------------------------------------------------------------------------------------------
Unit value - - - - -
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - -
- -----------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP
GROWTH
- -----------------------------------------------------------------------------------------------------
Unit value - - - - -
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - -
- -----------------------------------------------------------------------------------------------------
EQ/BALANCED
- -----------------------------------------------------------------------------------------------------
Unit value $ 19.69 $ 19.40 $ 27.17 $ 26.04 $ 28.85
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 16,810 19,423 21,100 25,975 31,259
- -----------------------------------------------------------------------------------------------------
CAPITAL GUARDIAN
RESEARCH
- -----------------------------------------------------------------------------------------------------
Unit value
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's)
- -----------------------------------------------------------------------------------------------------
<CAPTION>
DECEMBER 31,
1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
ALLIANCE
INTERMEDIATE
GOVERNMENT
SECURITIES
- -----------------------------------------------------------------------------------------------------
Unit value $ 98.19 $ 109.80 $ 112.40 $ 118.98 $ 126.48 $ 124.96
-----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 32 89 146 202 314 360
-----------------------------------------------------------------------------------------------------
ALLIANCE
INTERNATIONAL
- -----------------------------------------------------------------------------------------------------
Unit value $ 104.15 $ 112.83 $ 107.92 $ 117.72 $ 160.04
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 141 763 968 971 926
- -----------------------------------------------------------------------------------------------------
ALLIANCE MONEY
MARKET
- -----------------------------------------------------------------------------------------------------
Unit value $ 26.08 $ 27.22 $ 28.28 $ 29.41 $ 30.55 $ 31.63
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 1,000 1,021 1,013 973 1,261 1,516
- -----------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER
GROWTH
- -----------------------------------------------------------------------------------------------------
Unit value $ 116.36
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 887
- -----------------------------------------------------------------------------------------------------
ALLIANCE QUALITY
BOND
- -----------------------------------------------------------------------------------------------------
Unit value $ 93.87 $ 108.38 $ 112.65 $ 121.30 $ 130.07 $ 125.76
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 53 135 196 283 557 622
- -----------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP
GROWTH
- -----------------------------------------------------------------------------------------------------
Unit value - - - $ 125.55 $ 118.57 $ 149.64
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - 488 1,101 976
- -----------------------------------------------------------------------------------------------------
EQ/BALANCED
- -----------------------------------------------------------------------------------------------------
Unit value $ 26.18 $ 30.92 $ 34.06 $ 38.66 $ 45.07 $ 52.39
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 32,664 30,212 28,319 26,036 24,361 22,434
- -----------------------------------------------------------------------------------------------------
CAPITAL GUARDIAN
RESEARCH
- -----------------------------------------------------------------------------------------------------
Unit value $ 106.78
- -----------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 8
- -----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-9
- --------------------------------------------------------------------------------
SERIES 100 AND 200 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
(CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31,
1989 1990 1991 1992 1993 1994
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
CAPITAL GUARDIAN U.S.
EQUITY
- --------------------------------------------------------------------------------
Unit value
- --------------------------------------------------------------------------------
Number of units
outstanding (000's)
- --------------------------------------------------------------------------------
EQ/EVERGREEN
- --------------------------------------------------------------------------------
Unit value
- --------------------------------------------------------------------------------
Number of units
outstanding (000's)
- --------------------------------------------------------------------------------
EQ/EVERGREEN
FOUNDATION
- --------------------------------------------------------------------------------
Unit value
- --------------------------------------------------------------------------------
Number of units
outstanding (000's)
- --------------------------------------------------------------------------------
MFS EMERGING
GROWTH
COMPANIES
- --------------------------------------------------------------------------------
Unit value - - - - - -
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - - -
- --------------------------------------------------------------------------------
MFS GROWTH WITH
INCOME
- --------------------------------------------------------------------------------
Unit value
- --------------------------------------------------------------------------------
Number of units
outstanding (000's)
- --------------------------------------------------------------------------------
MFS RESEARCH
- --------------------------------------------------------------------------------
Unit value - - - - - -
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - - -
- --------------------------------------------------------------------------------
MERCURY BASIC VALUE
EQUITY
- --------------------------------------------------------------------------------
Unit value - - - - - -
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - - -
- --------------------------------------------------------------------------------
MERCURY WORLD
STRATEGY
- --------------------------------------------------------------------------------
Unit value - - - - - -
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - - -
- --------------------------------------------------------------------------------
<CAPTION>
DECEMBER 31,
1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
CAPITAL GUARDIAN U.S.
EQUITY
- --------------------------------------------------------------------------------
Unit value $ 101.64
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) 13
- --------------------------------------------------------------------------------
EQ/EVERGREEN
- --------------------------------------------------------------------------------
Unit value $ 106.57
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) 5
- --------------------------------------------------------------------------------
EQ/EVERGREEN
FOUNDATION
- --------------------------------------------------------------------------------
Unit value $ 105.16
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) 1
- --------------------------------------------------------------------------------
MFS EMERGING
GROWTH
COMPANIES
- --------------------------------------------------------------------------------
Unit value - - $ 121.34 $ 161.04 $ 275.93
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) - - 256 1,090 2,427
- --------------------------------------------------------------------------------
MFS GROWTH WITH
INCOME
- --------------------------------------------------------------------------------
Unit value $ 104.48
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) 18
- --------------------------------------------------------------------------------
MFS RESEARCH
- --------------------------------------------------------------------------------
Unit value - - $ 115.01 $ 140.83 $ 171.06
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) - - 236 720 959
- --------------------------------------------------------------------------------
MERCURY BASIC VALUE
EQUITY
- --------------------------------------------------------------------------------
Unit value - - $ 115.97 $ 127.97 $ 149.82
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) - - 145 444 617
- --------------------------------------------------------------------------------
MERCURY WORLD
STRATEGY
- --------------------------------------------------------------------------------
Unit value - - $ 103.77 $ 109.37 $ 130.94
- --------------------------------------------------------------------------------
Number of units
outstanding (000's) - - 52 84 88
- --------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-10
- --------------------------------------------------------------------------------
SERIES 100 AND 200 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
(CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31,
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MORGAN STANLEY
EMERGING MARKETS
EQUITY
- -----------------------------------------------------------------------------------------------------------------------------------
Unit value - - - - - - - - $ 79.41 $ 57.18 $ 110.43
- -----------------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - - - - - 109 217 590
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED
- -----------------------------------------------------------------------------------------------------------------------------------
Unit value - - - - - - - - $ 113.46 $ 125.16 $ 123.53
- -----------------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - - - - - 109 275 345
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH &
INCOME VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Unit value - - - - - - - - $ 115.17 $ 128.20 $ 124.76
- -----------------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - - - - - 250 581 648
- -----------------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY
INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
Unit value - - - - - - - - $ 121.04 $ 130.25 $ 133.07
- -----------------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - - - - - 475 1,070 1,072
- -----------------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE
INTERNATIONAL
STOCK
- -----------------------------------------------------------------------------------------------------------------------------------
Unit value - - - - - - - - $ 97.61 $ 109.49 $ 142.46
- -----------------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - - - - - 387 671 765
- -----------------------------------------------------------------------------------------------------------------------------------
WARBURG PINCUS
SMALL COMPANY
VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Unit value - - - - - - - - $ 118.06 $ 104.82 $ 105.28
- -----------------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - - - - - - - 577 859 721
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Appendix II: Original contracts
- --------
B-1
- --------------------------------------------------------------------------------
Original Contracts are EQUI-VEST contracts under which the contract owner has
not elected to add Alliance Intermediate Government Securities, Alliance Quality
Bond, Alliance High Yield, Alliance Growth and Income, Alliance Equity Index,
Alliance Global, Alliance International, Alliance Small Cap Growth, Alliance
Conservative Investors, and Alliance Growth Investors options, and any of the
other EQ Advisors Trust variable investment options as investment options when
they first became available.
SELECTING YOUR INVESTMENT METHOD. If you own an original contract, only the
guaranteed interest option and the Alliance Money Market, EQ/Balanced, Alliance
Common Stock and EQ/Aggressive Stock options are available. In most cases, you
may request that we add additional variable investment options to your original
contract. We reserve the right to deny your request.
TRANSFERRING YOUR ACCOUNT VALUE. If you own an original contract, including
original contract owners who elect to amend their contract by selecting maximum
transfer flexibility, the Alliance Money Market option is always available.
However, we will not permit transfers into the Alliance Money Market option from
any other investment option. There will not be any other transfer limitations
under your original contract.
<PAGE>
Appendix III: Market value adjustment example
- --------
C-1
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 had been
invested on June 14, 2001 to a fixed maturity option with a maturity date of
June 15, 2010 (i.e., nine years later) at a rate to maturity of 7.00%, resulting
in a maturity value at the maturity date of $183,846. We further assume that a
withdrawal of $50,000 is made four years later, on June 15, 2005.
<TABLE>
<CAPTION>
HYPOTHETICAL ASSUMED RATE TO MATURITY ON JUNE 15, 2005
- ------------------------------------------------------------------------------------------------------------------------
5.00% 9.00%
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AS OF JUNE 15, 2005 (BEFORE WITHDRAWAL)
- ------------------------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,048 $ 119,487
- ------------------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,080 $ 131,080
- ------------------------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,968 $ (11,593)
- ------------------------------------------------------------------------------------------------------------------------
ON JUNE 15, 2005 (AFTER WITHDRAWAL)
- ------------------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,501 $ (4,851)
- ------------------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount
[$50,000 - (4)] $ 45,499 $ 54,851
- ------------------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount (2) - (5) $ 85,581 $ 76,229
- ------------------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,032 $ 106,915
- ------------------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a negative market value adjustment
is realized. On the other hand, if a withdrawal is made when rates have
decreased from 7.00% to 5.00% (left column), a positive market value adjustment
is realized.
<PAGE>
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
Required minimum distributions option 2
Calculation of annuity payments 2
The reorganization 4
Custodian and independent accountants 4
Alliance Money Market option yield information 4
Other yield information 5
Financial statements 11
</TABLE>
HOW TO OBTAIN AN EQUI-VEST STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE
ACCOUNT A
Call 1-800-628-6673 or send this request form to:
EQUI-VEST
Processing Office
The Equitable Life
P.O. Box 2996
New York, NY 10116-2996
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an EQUI-VEST Statement of Additional Information dated May 1,
2000.
(Combination variable and fixed deferred annuity)
- ------------------------------------------------------------------------------
Name:
- ------------------------------------------------------------------------------
Address:
- ------------------------------------------------------------------------------
City State Zip
888-1175
<PAGE>
EQUI-VEST(R)
Employer-Sponsored Retirement Programs
Please read and keep this prospectus for future reference. It contains
important information that you should know before purchasing or taking any
other action under your contract. Also, at the end of this prospectus you will
find attached the prospectus for EQ Advisors Trust, which contains important
information about its portfolios.
PROSPECTUS DATED MAY 1, 2000
- --------------------------------------------------------------------------------
WHAT IS EQUI-VEST?
EQUI-VEST is a deferred annuity contract issued by The Equitable Life
Assurance Society of the United States. It provides for the accumulation of
retirement savings and for income. The contract also offers death benefit
protection and a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options and our
guaranteed interest option or in our fixed maturity options ("investment
options"). Each of these contracts may not currently be available in all
states.
VARIABLE INVESTMENT OPTIONS
- -------------------------------------------------------------------------
FIXED INCOME:
- -------------------------------------------------------------------------
o Alliance Intermediate o Alliance High Yield
Government Securities o Alliance Quality Bond
o Alliance Money Market
- -------------------------------------------------------------------------
DOMESTIC STOCKS
- -------------------------------------------------------------------------
o EQ/Aggressive Stock(1) o MFS Emerging Growth
o Alliance Common Stock Companies
o Alliance Equity Index o MFS Growth with Income
o Alliance Growth and Income o MFS Research
o EQ/Alliance Premier Growth o Mercury Basic Value Equity(3)
o EQ/Alliance Technology(2) o EQ/Putnam Growth &
o Alliance Small Cap Growth Income Value
o Calvert Socially Responsible* o T. Rowe Price Equity Income
o Capital Guardian Research o Warburg Pincus Small
o Capital Guardian U.S. Equity Company Value
o EQ/Evergreen
- -------------------------------------------------------------------------
INTERNATIONAL STOCKS
- -------------------------------------------------------------------------
o Alliance Global o T. Rowe Price International
o Alliance International Stock
o Morgan Stanley Emerging
Markets Equity
- -------------------------------------------------------------------------
BALANCED/HYBRID:
- -------------------------------------------------------------------------
o EQ/Balanced(4) o EQ/Evergreen Foundation
o Alliance Conservative o Mercury World Strategy(5)
Investors o EQ/Putnam Balanced
o Alliance Growth Investors
- -------------------------------------------------------------------------
* Available only for TSA and EDC Series 100 and 200 contracts.
(1) Formerly named "Alliance Aggressive Stock".
(2) Anticipated to become available on or about May 22, 2000. This portfolio
may not be available in California.
(3) Formerly named "Merrill Lynch Basic Value Equity."
(4) Formerly named "Alliance Balanced."
(5) Formerly named "Merrill Lynch Strategy."
You allocate amounts to the variable investment options, under your choice of
investment method subject to any restrictions. Each variable investment option
is a subaccount of our Separate Account A. Each variable investment option, in
turn, invests in a corresponding securities portfolio ("portfolio") of either
Class IA or IB shares of EQ Advisors Trust. Your investment results in a
variable investment option will depend on the investment performance of the
related portfolio.
GUARANTEED INTEREST OPTION. You may allocate amounts to the guaranteed
interest option. This option is part of our general account and pays interest
at guaranteed rates.
FIXED MATURITY OPTIONS. You may allocate amounts to one or more fixed
maturity options. These amounts will receive a fixed rate of interest for a
specified period. Interest is earned at a guaranteed rate set by us. We make a
market value adjustment (up or down) if you make transfers or withdrawals from
a fixed maturity option before its maturity date. Fixed maturity options may
not be available in your state. Check with your financial professional
regarding availability.
TYPES OF CONTRACTS. We offer different "series" of contracts for use as:
Employer funded traditional IRAs:
o A simplified employee pension plan ("SEP") sponsored by an employer.
o SEPs funded by salary reduction arrangements ("SARSEPs") for plans
established by employers before January 1, 1997. Although we still issue
these contracts to employees whose employer's plans enrolled on this
basis, plans of this type are no longer available under EQUI-VEST to new
employer groups without existing plans.
o SIMPLE IRAs funded by employee salary reduction and employer contributions.
Other employer-sponsored contracts:
o Trusteed contracts to fund defined contribution "HR-10" or "Keogh" plans of
employers who are sole proprietorships, partnerships, or business trusts,
or plans of corporations including non-profit organizations and states or
local governmental entities.
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity (basic "TSA")
for public schools and nonprofit entities under Internal Revenue Code
Section 501(c)(3).
o A TSA annuity issued to participants of TSA plans generally sponsored by
universities ("University TSA") that prohibits loans and has restrictions
not included in a basic TSA.
o To fund Internal Revenue Code Section 457 employee deferred compensation
("EDC") plans of state and municipal governments and other tax-exempt
organizations.
o Annuitant-Owned contracts to fund defined contribution HR-10 or Keogh plans.
Minimum contribution amounts of $20 may be made under the contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2000, is a part of the registration
statements. The SAI is available free of charge. You may request one by
writing to our processing office or calling 1 (800) 628-6673. The SAI has been
incorporated by reference into this prospectus. This prospectus and the SAI
can also be obtained from the SEC's Web site at http://www.sec.gov. The table
of contents for the SAI appears at the back of this prospectus.
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY. THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT
BANK GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF
PRINCIPAL.
72088
<PAGE>
Contents of this prospectus
- ----------------
2 Contents of this prospectus
- --------------------------------------------------------------------------------
EQUI-VEST(R)
Index of key words and phrases 4
Who is Equitable Life? 6
How to reach us 7
EQUI-VEST employer-sponsored retirement programs
at a glance - key features 10
- --------------------------------------------------------------
FEE TABLE 13
- --------------------------------------------------------------
EQUI-VEST series 300 and 400 contracts 17
EQUI-VEST series 100 and 200 contracts 19
Condensed financial information 24
- --------------------------------------------------------------
- --------------------------------------------------------------
1 CONTRACT FEATURES AND BENEFITS 25
- --------------------------------------------------------------
How you can purchase and contribute to your contract 25
Owner and annuitant requirements 26
How you can make your contributions 26
What are your investment options under the contract? 27
Selecting your investment method 31
ERISA considerations for employers 32
Allocating your contributions 32
Your right to cancel within a certain number of days 33
- --------------------------------------------------------------
- --------------------------------------------------------------
2 DETERMINING YOUR CONTRACT'S VALUE 34
- --------------------------------------------------------------
Your account value and cash value 34
Your contract's value in the variable
investment options 34
Your contract's value in the guaranteed interest option 34
Your contract's value in the fixed maturity options 34
- --------------------------------------------------------------
"We," "our" and "us" refer to Equitable Life.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
<PAGE>
- ----------
3 Contents of this prospectus
- --------------------------------------------------------------------------------
- -------------------------------------------------------------
3 TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 35
- -------------------------------------------------------------
Transferring your account value 35
Market timing 35
Automatic transfer options - investment simplifier 36
Rebalancing your account value 36
- -------------------------------------------------------------
4 ACCESSING YOUR MONEY 38
- -------------------------------------------------------------
Withdrawing your account value 38
Loans under TSA and Corporate Trusteed contracts 39
Termination 40
Texas ORP participants 40
When to expect payments 40
Your annuity payout options 41
- -------------------------------------------------------------
5 CHARGES AND EXPENSES 43
- -------------------------------------------------------------
Charges that Equitable Life deducts 43
Charges that EQ Advisors Trust deducts 50
Group or sponsored arrangements 50
Other distribution arrangements 50
- -------------------------------------------------------------
6 PAYMENT OF DEATH BENEFIT 51
- -------------------------------------------------------------
Your beneficiary and payment of benefit 51
How death benefit payment is made 51
- -------------------------------------------------------------
- -------------------------------------------------------------
7 TAX INFORMATION 52
- -------------------------------------------------------------
Tax information and ERISA matters 52
Special rules for tax-favored retirement programs 52
Qualified plans 52
Tax-sheltered annuity arrangements (TSAs) 53
Distributions from Qualified Plans and TSAs 55
Simplified Employee Pensions (SEPs) 57
SIMPLE IRAs (Savings Incentive Match Plan) 57
Public and tax-exempt organization employee
deferred compensation plans (EDC Plans) 59
Traditional Individual Retirement Annuities
(Traditional IRAs) 60
ERISA matters 68
Certain rules applicable to plans designed to comply
with Section 404(c) of ERISA 68
Federal and state income tax withholding and
information reporting 69
Impact of taxes to Equitable Life 70
- -------------------------------------------------------------
8 MORE INFORMATION 71
- -------------------------------------------------------------
About our Separate Account A 71
About EQ Advisors Trust 71
About our fixed maturity options 72
About the general account 73
About other methods of payment 73
Dates and prices at which contract events occur 74
About your voting rights 75
About legal proceedings 75
About our independent accountants 76
Financial statements 76
Transfers of ownership, collateral assignments, loans,
and borrowing 76
Funding changes 76
Distribution of the contracts 76
- -------------------------------------------------------------
9 INVESTMENT PERFORMANCE 77
- -------------------------------------------------------------
Benchmarks 77
Communicating performance data 88
- -------------------------------------------------------------
10 INCORPORATION OF CERTAIN DOCUMENTS BY
REFERENCE 90
- -------------------------------------------------------------
- -------------------------------------------------------------
APPENDICES
- -------------------------------------------------------------
I - Condensed financial information A-1
II - Original contracts B-1
III - Market value adjustment example C-1
- -------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- -------------------------------------------------------------
<PAGE>
Index of key words and phrases
- --------
4 Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the
terms used in this prospectus.
PAGE
account value 34
annuitant 26
annuity payout options 41
Annuitant-Owned HR-10 cover
beneficiary 51
business day 74
Code 52
cash value 34
contract date 12
contract date anniversary 12
contract year 12
contributions 52
DOL 52
EDC cover
EQAccess 7
ERISA 52
elective deferral contributions 52
fixed maturity amount 30
fixed maturity option 30
guaranteed interest option 29
IRA cover
investment options 27
nonelective contribution 53
portfolio cover
processing office 7
Required Beginning Date 66
SAI cover
SEC cover
Salary reduction contributions 53
SARSEP cover
SEP cover
SIMPLE IRA cover
TOPS 7
Trusteed contracts cover
TSA cover
unit 34
unit investment trust 71
variable investment options 27
To make this prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we do use different words, they have the same meaning in this prospectus as in
the contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
- -------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- -------------------------------------------------------------------------------
fixed maturity options Guarantee Periods or Fixed Maturity Accounts
variable investment options Investment Funds or Investment Divisions
account value Annuity Account Value
guaranteed interest option Guaranteed Interest Account
unit Accumulation unit
unit value Accumulation unit value
- -------------------------------------------------------------------------------
<PAGE>
- -----
5 Index of key words and phrases
- --------------------------------------------------------------------------------
In this prospectus, we use a "series" number when necessary to identify a
particular contract. We discuss four series of contracts. However, only three
are available for new purchasers. Once you have purchased a contract you can
identify the EQUI-VEST series you have by referring to your confirmation
notice, or you may contact your financial professional, or you may call our
toll-free number. The series designations are as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
o TSA, SEP, SARSEP, EDC, Annuitant-Owned HR-10 and Trusteed contracts series 100
issued before August 17, 1995.
This series is no longer
available for new
purchasers.
Information in this
prospectus is provided
for our existing series
100 contract owners
only.
o TSA, EDC, Annuitant-Owned HR-10 and Trusteed contracts issued on or series 200
after August 17, 1995. SEP and SARSEP contracts issued on or after
August 17, 1995 and before November 1, 1995 and currently in a state This series is available
where the series 300 contract has not been approved. for new purchasers of
TSA, EDC and
Annuitant- Owned
HR-10 contracts and
SEP contracts only in
Oregon, Maryland and
Washington. Series
200 Trusteed contracts
are available for new
purchases in Oregon,
Maryland, Washington
and Virginia
o SEP contracts issued on or after November 1, 1995 in states which have series 300
approved the Series 300 contract.
o SIMPLE IRA contracts in all approved states. (We reserve the right to issue a series 400
series 200 or 300 SIMPLE IRA contract, as necessary, for states not
approving the series 400 version.)
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
We also have contracts that we refer to as "original contracts." These
contracts are no longer available for new purchasers. Any information about
original contracts which is different from the current series we offer can be
found in Appendix II, which will be referenced throughout this prospectus
when it applies.
<PAGE>
Who is Equitable Life?
- ----------------
6 Who is Equitable Life?
- --------------------------------------------------------------------------------
We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing
business since 1859. Equitable Life is a wholly owned subsidiary of AXA
Financial, Inc. (previously, The Equitable Companies Incorporated). The
majority shareholder of AXA Financial, Inc. is AXA, a French holding company
for an international group of insurance and related financial services
companies. As a majority shareholder, and under its other arrangements with
Equitable Life and Equitable Life's parent, AXA exercises significant
influence over the operations and capital structure of Equitable Life and its
parent. No company other than Equitable Life, however, has any legal
responsibility to pay amounts that Equitable Life owes under the contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$462.7 billion in assets as of December 31, 1999. For over 100 years Equitable
Life has been among the largest insurance companies in the United States. We
are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home
office is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
<PAGE>
----------
7 Who is Equitable Life?
-------------------------------------------------------------------------------
HOW TO REACH US
You may communicate with our processing office as listed below for any of the
following purposes:
---------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
---------------------------------------------
Equitable Life
EQUI-VEST
Unit Collections
P.O. Box 13463
Newark, NJ 07188-0463
---------------------------------------------
FOR TSA AND CORPORATE TRUSTEED LOAN
REPAYMENTS SENT BY REGULAR MAIL:
---------------------------------------------
Equitable Life
Loan Repayment
EQUI-VEST Lockbox
P.O. Box 13496
Newark, NJ 07188-0496
---------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G.,
REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL:
---------------------------------------------
Equitable Life
EQUI-VEST
P.O. Box 2996
New York, NY 10116-2996
---------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
---------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard
3rd Floor
Secaucus, NJ 07094
Attn: Box 13463
---------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G.,
REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY:
---------------------------------------------
Equitable Life
EQUI-VEST
200 Plaza Drive
2nd Floor
Secaucus, NJ 07094
---------------------------------------------
REPORTS WE PROVIDE:
---------------------------------------------
o written confirmation of financial transactions;
o annual and semiannual statements of your contract values based on the
calendar year; and
o statement of your contract values as of the last day of the contract year.
---------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT
("TOPS") AND EQACCESS SYSTEMS
---------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
<PAGE>
----------
8 Who is Equitable Life?
-------------------------------------------------------------------------------
You can also:
o change your allocation percentages and/or transfer among the variable
investment options and the guaranteed interest option (anticipated to be
available through EQAccess by the end of 2000);
o elect the investment simplifier (not available through EQAccess); and
o change your TOPS personal identification number ("PIN") (not available
through EQAccess); and
o change your EQAccess password (not available through TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day.
You can use TOPS by calling toll-free 1 (800) 755-7777. You may use EQAccess
by visiting our Web site at http://www.equitable.com and clicking on EQAccess.
Of course, for reasons beyond our control, these services may sometimes be
unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good faith, or wilful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe
to be genuine.
We reserve the right to limit access to this service if we determine that you
are engaged in a market timing strategy (see "Market timing" in "Transferring
your money among investment options").
-------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
-------------------------------------------------------------
You may also use our toll-free number 1 (800) 628-6673 to
speak with one of our customer service representatives. Our
customer service representatives are available on each
business day Monday through Thursday from 8:00 a.m. to
7:00 p.m., and on Fridays until 5:00 p.m., Eastern Time.
-------------------------------------------------------------
TOLL-FREE TELEPHONE SERVICE:
-------------------------------------------------------------
You may reach us toll-free by calling 1 (800) 841-0801 for a
recording of daily unit values for the variable investment
options.
- -------------------------------------------------------------
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) election of the automatic investment program (not applicable to all
contracts);
(2) election of the investment simplifier;
(3) election of the automatic NQ deposit service;
(4) election of the rebalancing program;
(5) to obtain a PIN required for TOPS;
(6) election of required minimum distribution option;
(7) transfer/rollover of assets to another carrier;
(8) request for a loan (ERISA and non-ERISA TSA and Corporate Trusteed
contracts); and
(9) tax withholding election.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers among investment options; and
(4) contract surrender and withdrawal requests.
<PAGE>
----------
9 Who is Equitable Life?
-------------------------------------------------------------------------------
TO CHANGE OR CANCEL ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) investment simplifier;
(3) rebalancing program;
(4) systematic withdrawals; and
(5) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us
to take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. For TSA, SEP, and SIMPLE IRA contracts we need the annuitant's
signature and in some cases the Plan Administrator's signature if the Plan
requires it.
<PAGE>
EQUI-VEST employer-sponsored retirement programs at a glance - key features
- --------
10 EQUI-VEST employer-sponsored retirement programs at a glance - key features
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
PROFESSIONAL EQUI-VEST'S variable investment options invest in different portfolios managed by
INVESTMENT professional investment advisers.
MANAGEMENT
- --------------------------------------------------------------------------------------------------------------------
GUARANTEED o Principal and interest guarantees
INTEREST OPTION o Interest rates set periodically
- --------------------------------------------------------------------------------------------------------------------
FIXED MATURITY o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years.
OPTIONS o Each fixed maturity option offers a guarantee of principal and interest rate if you hold
it to maturity.
If you make withdrawals or transfers from a fixed maturity option before maturity, there
will be a market value adjustment due to differences in interest rates. This may increase or
decrease any value that you have left in that fixed maturity option. If you surrender your
contract, a market value adjustment may also apply.
o Only available for contracts in states where approved.
- --------------------------------------------------------------------------------------------------------------------
TAX ADVANTAGES o On earnings inside No tax on any dividends, interest or capital gains until you
the contract make withdrawals from your contract or receive annuity payments.
- --------------------------------------------------------------------------------------------------------------------
o On transfers inside No tax on transfers among investment options.
the contract
- --------------------------------------------------------------------------------------------------------------------
Because you are buying a contract to fund a retirement plan that already provides tax
deferral, you should do so for the contract's features and benefits other than tax
deferral. The tax deferral of the contract does not provide necessary or additional benefits.
- --------------------------------------------------------------------------------------------------------------------
MINIMUM CONTRIBUTION o $20 each contribution
AMOUNTS o maximum contribution limits may apply.
- --------------------------------------------------------------------------------------------------------------------
ACCESS TO YOUR MONEY o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Required minimum distribution option
o Contract surrender
Withdrawals are subject to the terms of the plan and may be limited. You may incur a
withdrawal charge for certain withdrawals or if you surrender your contract. You may also
incur income tax and a penalty tax.
- --------------------------------------------------------------------------------------------------------------------
PAYOUT OPTIONS o Fixed annuity payout options
o Variable annuity payout options
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
11 EQUI-VEST employer-sponsored retirement programs at a glance - key features
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
ADDITIONAL FEATURES o Dollar cost averaging by automatic transfers
- Interest sweep option
- Fixed dollar option
o Automatic investment program (not applicable to all
contracts)
o Account value rebalancing (quarterly, semiannually,
and annually)
o No charge on transfers among investment options
o Waiver of withdrawal charge for disability,
confinement to a nursing home, and terminal illness
(series 300 and 400 only)
- -------------------------------------------------------------------------------
FEES AND CHARGES o Daily charge on amounts invested in variable
investment options for mortality and expense risks
and other expenses at current annual rates determined
by contract series:
series 100 - 1.34%; three options at 1.49%.
series 200 - 1.34%; three options at 1.40%.
series 300 and 400: 1.35% (maximum of 2.00% for
series 400).
o Annual administrative charge:
series 100 and 200: $30 or 2% of the account value,
if less.
series 300 and 400: $30 currently or during the first
two contract years 2% of the account value, if less
($65 maximum).
o Charge for third-party transfer (such as in the case
of a trustee-to-trustee transfer for an IRA contract)
or exchange (if your contract is exchanged for a
contract issued by another insurance company):
series 100 and 200: none
series 300 and 400: $25 currently
($65 maximum) per occurrence.
o No sales charge deducted at the time you make
contributions.
o Withdrawal charge:
- series 300, 400, and Trusteed contracts under series
100 and 200: We deduct a charge equal to 6% of
contributions that have been withdrawn if such
contributions were made in the current and five prior
contract years.
All non-Trusteed contracts under series 100 and 200:
6% generally declining for the first through 12th
contract years. The total of all withdrawal charges
may not exceed 8% of all contributions made during a
specified period before the withdrawal is made.
There is no charge in any contract year in which the
amount withdrawn does not exceed 10% of your account
value at the time of your withdrawal request minus
prior withdrawals in that contract year. Under certain
circumstances the withdrawal charge will not apply.
They are discussed in "Charges and expenses" later in
this prospectus.
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
12 EQUI-VEST employer-sponsored retirement programs at a glance - key features
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
FEES AND CHARGES ---------------------------------------------------------
(CONTINUED) The "contract date" is the effective date of a contract.
This usually is the business day we receive the properly
completed and signed application, along with any other
required documents and your initial contribution. Your
contract date will be shown in your contract. The 12-month
period beginning on your contract date and each 12-month
period after that date is a "contract year." The end of
each 12-month period is your "contract date anniversary."
---------------------------------------------------------
o We deduct a charge designed to approximate certain taxes
that may be imposed on us, such as premium taxes in your
state. The charge is generally deducted from the amount
applied to an annuity payout option.
o We deduct a $350 annuity administrative fee from amounts
applied to a variable annuity payout option.
o Annual expenses of EQ Advisors Trust portfolios are
calculated as a percentage of the average daily net
assets invested in each portfolio. These expenses
include management fees ranging from 0.25% to 1.15%
annually, other expenses, and for Class IB shares 12b-1
fees of 0.25% annually.
- -------------------------------------------------------------------------------
</TABLE>
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY, OR MAY BE IMPOSED BY
EMPLOYERS UNDER THEIR PLANS. MAXIMUM EXPENSE LIMITATIONS APPLY TO CERTAIN
VARIABLE INVESTMENT OPTIONS, AND RIGHTS ARE RESERVED TO CHANGE OR WAIVE CERTAIN
CHARGES WITHIN SPECIFIED LIMITS. ALSO, ALL FEATURES OF THE CONTRACT, INCLUDING
ALL VARIABLE INVESTMENT OPTIONS, ARE NOT NECESSARILY AVAILABLE IN YOUR STATE OR
AT CERTAIN AGES OR UNDER YOUR INVESTMENT METHOD.
For more detailed information we urge you to read the contents of this
prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
OTHER CONTRACTS. We offer a variety of fixed and variable annuity contracts.
They may offer features, including investment options, fees and/or charges that
are different than those offered by this prospectus. Not every contract is
offered through the same distributor. Upon request, your financial professional
can show you information regarding other Equitable Life annuity contracts that
he or she distributes. You can also contact us to find out more about any of
the Equitable Life annuity contracts.
<PAGE>
Fee table
- --------
13 Fee table
- --------------------------------------------------------------------------------
The fee tables below will help you understand the various charges and expenses
that apply to your contract series. The tables reflect charges you will
directly incur under the contract, as well as charges and expenses of the
portfolios that you will bear indirectly. Charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state,
may also apply. Also, an annuity administrative fee may apply when your annuity
payments are to begin. Each of the charges and expenses is more fully described
in "Charges and expenses" later in this prospectus.
The guaranteed interest option and fixed maturity options is not covered by the
fee tables and examples. However, the annual administrative charge, the
withdrawal charge, and the third-party transfer or exchange charge do apply to
the guaranteed interest option. Also, an annuity administrative fee may apply
when your annuity payments are to begin.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN ANNUAL
PERCENTAGE OF DAILY NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
EQ/BALANCED, ALLIANCE ALL OTHER
COMMON STOCK, ALLIANCE VARIABLE INVESTMENT
MONEY MARKET OPTIONS OPTIONS
---------------------- -------------------
SERIES SERIES SERIES SERIES1
100 200 100 200 SERIES 300 AND 400
-------- -------- -------- -------- -----------------------------------
<S> <C> <C> <C> <C> <C> <C>
Mortality and expense risk(1) 0.65% 1.15% 0.50% 1.09% 1.10% current
Other expenses(2) 0.84% 0.25% 0.84% 0.25% 0.25%
-------- -------- -------- -------- --------
Total Separate Account A
annual expenses(3)(4) 1.49% 1.40% 1.34% 1.34% 1.35% current (2.00% maximum
======== ======== ======== ======== ======== for series 400)
</TABLE>
<TABLE>
<S> <C>
- ---------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
- ---------------------------------------------------------------------------------------------------------
Annual administrative charge(5) $30 (under series 300 and 400: $65 maximum
for series 400)
- ---------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN TRANSACTIONS
- ---------------------------------------------------------------------------------------------------------
Maximum withdrawal charge(6) 6%
Charge for third-party transfer or exchange series 100 and 200: none
series 300 and 400: $25 for each occurrence
($65 maximum per occurrence for series 400)
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
14 Fee table
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
TOTAL
OTHER ANNUAL
EXPENSES EXPENSES
MANAGEMENT (AFTER EXPENSES (AFTER EXPENSES
FEES(7) 12b-1 FEE(8) LIMITATION)(9) LIMITATION)(10)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 0.60% N/A 0.04% 0.64%
Alliance Common Stock 0.46% N/A 0.04% 0.50%
Alliance Conservative Investors 0.60% N/A 0.07% 0.67%
Alliance Equity Index 0.25% N/A 0.05% 0.30%
Alliance Global 0.73% N/A 0.09% 0.82%
Alliance Growth and Income 0.59% N/A 0.05% 0.64%
Alliance Growth Investors 0.57% N/A 0.05% 0.62%
Alliance High Yield 0.60% N/A 0.05% 0.65%
Alliance Intermediate Government Securities 0.50% N/A 0.07% 0.57%
Alliance International 0.85% N/A 0.20% 1.05%
Alliance Money Market 0.34% N/A 0.05% 0.39%
EQ/Alliance Premier Growth 0.90% 0.25% 0.00% 1.15%
Alliance Quality Bond 0.53% N/A 0.05% 0.58%
Alliance Small Cap Growth 0.75% N/A 0.07% 0.82%
EQ/Alliance Technology 0.90% 0.25% 0.00% 1.15%
EQ/Balanced 0.57% N/A 0.05% 0.62%
Calvert Socially Responsible 0.65% 0.25% 0.15% 1.05%
Capital Guardian Research 0.65% 0.25% 0.05% 0.95%
Capital Guardian U.S. Equity 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen Foundation 0.60% 0.25% 0.10% 0.95%
MFS Emerging Growth Companies 0.65% 0.25% 0.10% 1.00%
MFS Growth with Income 0.60% 0.25% 0.10% 0.95%
MFS Research 0.65% 0.25% 0.05% 0.95%
Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
Mercury World Strategy 0.70% 0.25% 0.25% 1.20%
Morgan Stanley Emerging Markets Equity 1.15% 0.25% 0.35% 1.75%
EQ/Putnam Balanced 0.60% 0.25% 0.05% 0.90%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% 0.95%
T. Rowe Price Equity Income 0.60% 0.25% 0.10% 0.95%
T. Rowe Price International Stock 0.85% 0.25% 0.15% 1.25%
Warburg Pincus Small Company Value 0.75% 0.25% 0.10% 1.10%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
15 Fee tabke
- --------------------------------------------------------------------------------
- ----------
Notes:
(1) A portion of this charge is for providing the death benefit.
(2) For the series 300 and 400 contracts: we currently charge 0.25% for the
EQ/Aggressive Stock, EQ/Balanced, Alliance Common Stock, and Alliance
Money Market options and 0.24% for all the other options (we reserve the
right to increase this charge to 0.25% at our discretion). For series 100
and 200 contracts, this charge is for financial accounting and other
administrative services relating to the contract.
(3) Total Separate Account A annual expenses (not including EQ Advisors Trust
fees and other expenses) are guaranteed not to exceed a total annual rate
of: (i) 2.00% for series 400; (ii) 1.35% for series 300 contracts; and
(iii) 1.49% for series 100 contracts and 1.40% for series 200 contracts
for the EQ/Balanced, Alliance Common Stock, and Alliance Money Market
options; and (iv) for series 100 and 200 contracts an annual rate of
1.34% for all the other options except for those in (iii).
(4) For series 100 and 200 contracts, the total Separate Account A annual
expenses and total annual expenses of EQ Advisors Trust fees when added
together are not permitted to exceed 1.75% for the EQ/Aggressive
Stock, EQ/Balanced, Alliance Common Stock and Alliance Money Market
options. Without this expense limitation, the total annual expenses
deducted from the variable investment options plus EQ Advisors Trust
annual expenses for 1999 (as restated to reflect the revised management
fees and the .01% increase in expenses that occurred when these
portfolios became part of EQ Advisors Trust) would have been 1.79% for
the Alliance Money Market option; 1.90% for the Alliance Common Stock
option; 1.98% for the EQ/Aggressive Stock option; and 2.02% for the
EQ/Balanced option.
(5) For series 300 and 400 contracts, during the first two contract years,
this charge is currently equal to the lesser of $30 or 2% of your account
value if it applies. Thereafter, the charge is $30 for each contract
year, but we reserve the right to increase this charge to an annual
maximum of $65. For series 100 and 200 contracts, some contracts are
exempt from this charge.
(6) This charge applies to withdrawn contributions that were made in the
current and five prior years. This charge is deducted upon a withdrawal
of amounts, or defaulted loan amounts in excess of the 10% free
withdrawal amount. Important exceptions and limitations may eliminate or
reduce this charge.
(7) The management fees shown reflect revised management fees effective on or
about May 1, 2000 which were approved by shareholders. The management
fees shown for EQ/Putnam Balanced, EQ/Putnam Growth & Income Value,
Warburg Pincus Small Company Value and T. Rowe Price International Stock
do not reflect the waiver of a portion of each portfolio's investment
management fees that is currently in effect. The management fee for each
portfolio cannot be increased without a vote of that portfolio's
shareholders.
(8) The Class IB shares of EQ Advisors Trust are subject to fees imposed
under a distribution plan (the "Rule 12b-1 Plan") adopted by EQ Advisors
Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940.
The 12b-1 fee will not be increased for the life of the contracts. Class
IA shares of EQ Advisors Trust are not subject to these fees.
(9) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. See footnote (10) for any expense
limitation agreements.
On October 18, 1999, the Alliance portfolios (other than EQ/Alliance
Premier Growth and EQ/Alliance Technology) became part of the portfolios
of EQ Advisors Trust. The "Other Expenses" for these portfolios have been
restated to reflect the estimated expenses that would have been incurred
had these portfolios been portfolios of EQ Advisors Trust for the entire
year ended December 31, 1999. The restated expenses reflect an increase of
0.01% of each of these portfolios.
(10) Equitable Life, EQ Advisors Trust's manager, has entered into an expense
limitation agreement with respect to certain portfolios. Under this
agreement Equitable Life has agreed to waive or limit its fees and assume
other expenses. Under the expense limitation agreement, total annual
operating expenses of certain portfolios (other than interest, taxes,
brokerage commissions, capitalized expenditures, extraordinary expenses
and 12b-1 fees) are limited as a percentage of the average daily net
assets of each of the following portfolios: 1.75% for Morgan Stanley
Emerging Markets Equity; 1.25% for T. Rowe Price International Stock;
1.20% for Mercury World Strategy; 1.15% for EQ/Alliance Premier Growth
and EQ/Alliance Technology; 1.10% for Warburg Pincus Small Company Value;
1.00% for MFS Emerging Growth Companies; 0.95% for Capital Guardian U.S.
Equity, Capital Guardian Research, EQ/Evergreen; EQ/Evergreen Foundation,
MFS Growth with Income, MFS Research, Mercury Basic Value Equity;
EQ/Putnam Growth & Income Value, and T. Rowe Price Equity Income; and
0.90% for EQ/Putnam Balanced. The expense limitations for the EQ/Putnam
Growth & Income Value, Mercury Basic Value Equity, MFS Growth with
Income, MFS Research, MFS Emerging Growth Companies, T. Rowe Price Equity
Income, T. Rowe
<PAGE>
- -----
16 Fee table
- --------------------------------------------------------------------------------
Price International Stock and Warburg Pincus Small Company Value,
portfolios reflect an increase effective on May 1, 2000. The expense
limitation for the EQ/Evergreen portfolio reflects a decrease effective on
May 1, 2000.
Absent the expense limitation, the "Other Expenses" for 1999 on an
annualized basis for each of the portfolios would have been as follows:
1.00% for Morgan Stanley Emerging Markets Equity; 0.30% for T. Rowe Price
International Stock; 0.46% for Mercury World Strategy; 0.23% for
EQ/Alliance Premier Growth; 0.10% for EQ/Alliance Technology; 0.24% for
Warburg Pincus Small Company Value; 0.17% for MFS Emerging Growth
Companies; 0.34% for Capital Guardian U.S. Equity, 0.47% for Capital
Guardian Research, 1.87% for EQ/Evergreen; 1.07% for EQ/Evergreen
Foundation, 0.37% for MFS Growth with Income, 0.17% for MFS Research,
0.17% for Mercury Basic Value Equity; 0.16% for EQ/Putnam Growth & Income
Value; 0.21% for T. Rowe Price Equity Income; and 0.28% for EQ/Putnam
Balanced. Initial seed capital was invested on April 30, 1999 for
EQ/Alliance Premier Growth, Capital Guardian U.S. Equity and Capital
Guardian Research portfolios and will be invested on or about May 1, 2000
for the EQ/Alliance Technology portfolio and therefore expenses have been
estimated.
Each portfolio may at a later date make a reimbursement to Equitable Life
for any of the management fees waived or limited and other expenses
assumed and paid by Equitable Life pursuant to the expense limitation
agreement provided, that among other things, such portfolio has reached
sufficient size to permit such reimbursement to be made and provided that
the portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such portfolio. For more
information see the prospectus for EQ Advisors Trust.
<PAGE>
- -----
17 Fee table
- --------------------------------------------------------------------------------
EXAMPLES: EQUI-VEST SERIES 300 AND 400 CONTRACTS
For each type of series 300 and 400 contract, the examples below show the
expenses that a hypothetical contract owner would pay in the situations
illustrated. We assume a $1,000 contribution is invested in one of the variable
investment options listed, and a 5% annual return is earned on the assets in
that option.(1) The annual administrative charge is based on charges that apply
to a mix of estimated contract sizes, resulting in an estimated charge for the
purpose of these examples of $0.51 per $1,000. We also assume there is no
waiver of the withdrawal charge. Other than as indicated above, the charges and
expenses used to compute the examples below are the maximum series 400 expenses
rather than the lower current series 400 expenses or series 300 expenses.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
-----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 83.42 $ 144.18 $ 207.49 $ 311.73
Alliance Common Stock $ 82.03 $ 140.05 $ 200.23 $ 297.51
Alliance Conservative Investors $ 83.71 $ 145.07 $ 209.04 $ 314.75
Alliance Equity Index $ 80.04 $ 134.12 $ 189.78 $ 276.84
Alliance Global $ 85.20 $ 149.48 $ 216.34 $ 329.72
Alliance Growth and Income $ 83.42 $ 144.18 $ 207.49 $ 311.73
Alliance Growth Investors $ 83.22 $ 143.59 $ 206.45 $ 309.71
Alliance High Yield $ 83.52 $ 144.48 $ 208.00 $ 312.74
Alliance Intermediate Government Securities $ 82.72 $ 142.12 $ 203.86 $ 304.65
Alliance International $ 87.49 $ 156.22 $ 227.38 $ 352.23
Alliance Money Market $ 80.93 $ 136.79 $ 194.49 $ 286.19
EQ/Alliance Premier Growth $ 88.48 $ 159.15 -- --
Alliance Quality Bond $ 82.82 $ 142.41 $ 204.38 $ 305.66
Alliance Small Cap Growth $ 85.20 $ 149.48 $ 216.34 $ 329.72
EQ/Alliance Technology $ 88.48 $ 159.15 -- --
EQ/Balanced $ 83.22 $ 143.59 $ 206.45 $ 309.71
Capital Guardian Research $ 86.49 $ 152.30 -- --
Capital Guardian U.S. Equity $ 86.49 $ 153.30 -- --
EQ/Evergreen $ 86.49 $ 153.30 $ 222.60 $ 342.51
EQ/Evergreen Foundation $ 86.49 $ 153.30 $ 222.60 $ 342.51
MFS Emerging Growth Companies $ 86.99 $ 154.76 $ 224.99 $ 347.38
MFS Growth with Income $ 86.49 $ 153.30 $ 222.60 $ 342.51
MFS Research $ 86.49 $ 153.30 $ 222.60 $ 342.51
Mercury Basic Value Equity $ 86.49 $ 153.30 $ 222.60 $ 342.51
Mercury World Strategy $ 88.98 $ 160.60 $ 234.52 $ 366.63
Morgan Stanley Emerging Markets Equity $ 94.44 $ 176.54 $ 260.31 $ 417.55
EQ/Putnam Balanced $ 86.00 $ 151.83 $ 220.19 $ 337.61
EQ/Putnam Growth & Income Value $ 86.49 $ 153.30 $ 222.60 $ 342.51
- ------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------
IF YOU DO NO SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
-----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 28.24 $ 86.58 $ 147.49 $ 311.73
Alliance Common Stock $ 26.77 $ 82.20 $ 140.23 $ 297.51
Alliance Conservative Investors $ 28.56 $ 87.52 $ 149.04 $ 314.75
Alliance Equity Index $ 24.67 $ 75.91 $ 129.78 $ 276.84
Alliance Global $ 30.13 $ 92.20 $ 156.76 $ 329.72
Alliance Growth and Income $ 28.24 $ 86.58 $ 147.49 $ 311.73
Alliance Growth Investors $ 28.03 $ 85.96 $ 146.45 $ 309.71
Alliance High Yield $ 28.35 $ 86.89 $ 148.00 $ 312.74
Alliance Intermediate Government Securities $ 27.51 $ 84.39 $ 143.86 $ 304.65
Alliance International $ 32.54 $ 99.35 $ 168.50 $ 352.23
Alliance Money Market $ 25.62 $ 78.74 $ 134.49 $ 286.19
EQ/Alliance Premier Growth $ 33.59 $ 102.44 -- --
Alliance Quality Bond $ 27.61 $ 84.70 $ 144.38 $ 305.66
Alliance Small Cap Growth $ 30.13 $ 92.20 $ 156.76 $ 329.72
EQ/Alliance Technology $ 33.59 $ 102.44 -- --
EQ/Balanced $ 28.03 $ 85.96 $ 146.45 $ 309.71
Capital Guardian Research $ 31.49 $ 96.24 -- --
Capital Guardian U.S. Equity $ 31.49 $ 96.24 -- --
EQ/Evergreen $ 31.49 $ 96.24 $ 163.41 $ 342.51
EQ/Evergreen Foundation $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Emerging Growth Companies $ 32.02 $ 97.80 $ 165.96 $ 347.38
MFS Growth with Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Research $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury Basic Value Equity $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury World Strategy $ 34.12 $ 103.99 $ 176.10 $ 366.63
Morgan Stanley Emerging Markets Equity $ 39.89 $ 120.89 $ 203.53 $ 417.55
EQ/Putnam Balanced $ 30.97 $ 94.69 $ 160.86 $ 337.61
EQ/Putnam Growth & Income Value $ 31.49 $ 96.24 $ 163.41 $ 342.51
- ------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
18 Fee table
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
-----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
T. Rowe Price Equity Income $ 86.49 $ 153.30 $ 222.60 $ 342.51
T. Rowe Price International Stock $ 89.47 $ 162.06 $ 236.89 $ 371.38
Warburg Pincus Small Company Value $ 87.98 $ 157.69 $ 229.77 $ 357.06
- ---------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
-----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
T. Rowe Price Equity Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
T. Rowe Price International Stock $ 34.64 $ 105.53 $ 178.62 $ 371.38
Warburg Pincus Small Company Value $ 33.07 $ 100.90 $ 171.04 $ 357.06
- ---------------------------------------------------------------------------------------
</TABLE>
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity at the end of any of the periods shown in the
examples. This is because if the amount applied to purchase an annuity
payout option is less than $2,000, or the initial payment is less than
$20, we may pay the amount to you in a single sum instead of as payments
under an annuity payout option. See "Accessing your money."
IF YOU ELECT A VARIABLE PAYOUT OPTION:
Assuming an annuity payout option could be issued (see note (1) above), and you
elect a variable annuity payout option, the expenses shown in the above example
of "if you do not surrender your contract" would, in each case, be increased by
$4.34 based on the average amount applied to annuity payout options in 1999.
See "Annuity administrative fee" under "Charges and expenses."
<PAGE>
- -----
19 Fee table
- --------------------------------------------------------------------------------
EXAMPLES: EQUI-VEST SERIES 100 AND 200 CONTRACTS
For each type of series 100 and 200 contract, the examples below show the
expenses that a hypothetical contract owner would pay in the situations
illustrated. We assume a $1,000 contribution is invested in one of the variable
investment options listed, and a 5% annual return is earned on the assets in
that option.(1) The annual administrative charge is based on charges that apply
to a mix of estimated contract sizes, resulting in an estimated administrative
charge for the purpose of these examples of $0.51 per $1,000. We also assume
there is no waiver of the withdrawal charge. Other than as indicated above, the
charges and expenses used to compute the examples below are the maximum
expenses (taking into account the expense limitation at an annual rate of 1.75%
for the EQ/Aggressive Stock, EQ/Balanced, Alliance Common Stock and Alliance
Money Market options) rather than the lower current charge.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
IF YOU SURRENDER YOUR CONTRACT AT THE END OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE: FOR SEP, SARSEP, EDC AND ANNUITANT-OWNED HR-10 CONTRACTS:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 80.77 124.26 163.50 254.45
Alliance Common Stock 80.77 124.26 163.50 254.45
Alliance Conservative Investors 83.33 132.00 176.57 281.82
Alliance Equity Index 79.68 120.97 157.93 242.66
Alliance Global 84.81 136.45 184.04 297.29
Alliance Growth and Income 83.04 131.11 175.07 278.70
Alliance Growth Investors 82.84 130.51 174.07 276.62
Alliance High Yield 83.13 131.41 175.57 279.74
Alliance Intermediate Government Securities 82.35 129.03 171.56 271.38
Alliance International 87.08 143.24 195.40 320.55
Alliance Money Market 80.77 124.26 163.50 254.45
EQ/Alliance Premier Growth 88.07 146.18 -- --
Alliance Quality Bond 82.44 129.33 172.06 272.43
Alliance Small Cap Growth 84.81 136.45 184.04 297.29
EQ/Alliance Technology 88.07 146.18 -- --
EQ/Balanced 80.77 124.26 163.50 254.45
Calvert Socially Responsible 87.08 143.24 195.40 320.55
Capital Guardian Research 86.09 140.29 -- --
Capital Guardian U.S. Equity 86.09 140.29 -- --
EQ/Evergreen 86.09 140.29 190.48 310.50
EQ/Evergreen Foundation 86.09 140.29 190.48 310.50
MFS Emerging Growth Companies 86.59 141.77 192.94 315.54
MFS Growth with Income 86.09 140.29 190.48 310.50
MFS Research 86.09 140.29 190.48 310.50
- -----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
20 Fee table
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mercury Basic Value Equity 86.09 140.29 190.48 310.50
Mercury World Strategy 88.56 147.65 202.75 335.43
Morgan Stanley Emerging Markets Equity 93.99 163.71 229.29 388.06
EQ/Putnam Balanced 85.60 138.81 188.00 305.44
EQ/Putnam Growth & Income Value 86.09 140.29 190.48 310.50
T. Rowe Price Equity Income 86.09 140.29 190.48 310.50
T. Rowe Price International Stock 89.05 149.12 205.19 340.33
Warburg Pincus Small Company Value 87.57 144.71 197.86 325.53
- -----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
21 Fee table
- --------------------------------------------------------------------------------
FOR TSA AND UNIVERSITY TSA CONTRACTS:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 74.58 117.68 163.50 254.45
Alliance Common Stock 74.58 117.68 163.50 254.45
Alliance Conservative Investors 77.16 125.48 176.57 281.82
Alliance Equity Index 73.49 114.37 157.93 242.66
Alliance Global 78.65 129.95 184.04 297.29
Alliance Growth and Income 76.86 124.58 175.07 278.70
Alliance Growth Investors 76.67 123.98 174.07 276.62
Alliance High Yield 76.96 124.88 175.57 279.74
Alliance Intermediate Government Securities 76.17 122.48 171.56 271.38
Alliance International 80.93 136.79 195.40 320.55
Alliance Money Market 74.58 117.68 163.50 254.45
EQ/Alliance Premier Growth 81.93 139.75 -- --
Alliance Quality Bond 76.27 122.78 172.06 272.43
Alliance Small Cap Growth 78.65 129.95 184.04 297.29
EQ/Alliance Technology 81.93 139.75 -- --
EQ/Balanced 74.58 117.68 163.50 254.45
Calvert Socially Responsible 80.93 136.79 195.40 320.55
Capital Guardian Research 79.94 133.82 -- --
Capital Guardian U.S. Equity 79.94 133.82 -- --
EQ/Evergreen 79.94 133.82 190.48 310.50
EQ/Evergreen Foundation 79.94 133.82 190.48 310.50
MFS Emerging Growth Companies 80.44 135.31 192.94 315.54
MFS Growth with Income 79.94 133.82 190.48 310.50
MFS Research 79.94 133.82 190.48 310.50
Mercury Basic Value Equity 79.94 133.82 190.48 310.50
Mercury World Strategy 82.42 141.23 202.75 335.43
Morgan Stanley Emerging Markets Equity 87.88 157.39 229.29 388.06
EQ/Putnam Balanced 79.45 132.33 188.00 305.44
EQ/Putnam Growth & Income Value 79.94 133.82 190.48 310.50
T. Rowe Price Equity Income 79.94 133.82 190.48 310.50
T. Rowe Price International Stock 82.92 142.71 205.19 340.33
Warburg Pincus Small Company Value 81.43 138.27 197.86 325.53
- -----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
22 Fee table
- --------------------------------------------------------------------------------
FOR ALL SERIES 200 TRUSTEED CONTRACTS:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 74.58 117.68 160.57 217.78
Alliance Common Stock 74.58 117.68 160.57 217.78
Alliance Conservative Investors 77.16 125.48 174.46 246.11
Alliance Equity Index 73.49 114.37 154.65 205.57
Alliance Global 78.65 129.95 182.41 262.12
Alliance Growth and Income 76.86 124.58 172.87 242.88
Alliance Growth Investors 76.67 123.98 171.80 240.72
Alliance High Yield 76.96 124.88 173.40 243.95
Alliance Intermediate Government Securities 76.17 122.48 169.14 235.30
Alliance International 80.93 136.79 194.49 286.19
Alliance Money Market 74.58 117.68 160.57 217.78
EQ/Alliance Premier Growth 81.93 139.75 -- --
Alliance Quality Bond 76.27 122.78 169.67 236.39
Alliance Small Cap Growth 78.65 129.95 182.41 262.12
EQ/Alliance Technology 81.93 139.75 -- --
EQ/Balanced 74.58 117.68 160.57 217.78
Capital Guardian Research 79.94 133.82 -- --
Capital Guardian U.S. Equity 79.94 133.82 -- --
EQ/Evergreen 79.94 133.82 189.25 275.79
EQ/Evergreen Foundation 79.94 133.82 189.25 275.79
MFS Emerging Growth Companies 80.44 135.31 191.87 281.01
MFS Growth with Income 79.94 133.82 189.25 275.79
MFS Research 79.94 133.82 189.25 275.79
Mercury Basic Value Equity 79.94 133.82 189.25 275.79
Mercury World Strategy 82.42 141.23 202.30 301.59
Morgan Stanley Emerging Markets Equity 87.88 157.39 229.29 356.09
EQ/Putnam Balanced 79.45 132.33 186.62 270.55
EQ/Putnam Growth & Income Value 79.94 133.82 189.25 275.79
T. Rowe Price Equity Income 79.94 133.82 189.25 275.79
T. Rowe Price International Stock 82.92 142.71 204.90 306.68
Warburg Pincus Small Company Value 81.43 138.27 197.10 291.35
- -----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
23 Fee table
- --------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
FOR ALL SERIES 100 AND 200 CONTRACTS:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 18.90 58.49 100.57 217.78
Alliance Common Stock 18.90 58.49 100.57 217.78
Alliance Conservative Investors 21.63 66.75 114.46 246.11
Alliance Equity Index 17.75 54.98 94.65 205.57
Alliance Global 23.20 71.49 122.41 262.12
Alliance Growth and Income 21.31 65.80 112.87 242.88
Alliance Growth Investors 21.11 65.16 111.80 240.72
Alliance High Yield 21.42 66.11 113.40 243.95
Alliance Intermediate Government Securities 20.58 63.58 109.14 235.30
Alliance International 25.62 78.74 134.49 286.19
Alliance Money Market 18.90 58.49 100.57 217.78
EQ/Alliance Premier Growth 26.67 81.88 -- --
Alliance Quality Bond 20.69 63.89 109.67 236.39
Alliance Small Cap Growth 23.20 71.49 122.41 262.12
EQ/Alliance Technology 26.67 81.88 -- --
EQ/Balanced 18.90 58.49 100.57 217.78
Calvert Socially Responsible 25.62 78.74 134.49 286.19
Capital Guardian Research 24.57 75.60 -- --
Capital Guardian U.S. Equity 24.57 75.60 -- --
EQ/Evergreen 24.57 75.60 129.25 275.79
EQ/Evergreen Foundation 24.57 75.60 129.25 275.79
MFS Emerging Growth Companies 25.09 77.17 131.87 281.01
MFS Growth with Income 24.57 75.60 129.25 275.79
MFS Research 24.57 75.60 129.25 275.79
Mercury Basic Value Equity 24.57 75.60 129.25 275.79
Mercury World Strategy 27.19 83.45 142.30 301.59
Morgan Stanley Emerging Markets Equity 32.96 100.59 170.53 356.09
EQ/Putnam Balanced 24.04 74.02 126.62 270.55
EQ/Putnam Growth & Income Value 24.57 75.60 129.25 275.79
T. Rowe Price Equity Income 24.57 75.60 129.25 275.79
T. Rowe Price International Stock 27.72 85.02 144.90 306.68
Warburg Pincus Small Company Value 26.14 80.31 137.10 291.35
- -----------------------------------------------------------------------------------------------
</TABLE>
- ----------
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity at the end of any of the periods shown in the
examples. This is because if the amount applied to purchase an annuity
payout option is less than $2,000, or the initial payment is less than
$20, we may pay the amount to you in a single sum instead of as payments
under an annuity payout option. See "Accessing your money."
<PAGE>
- -----
24 Fee table
- --------------------------------------------------------------------------------
IF YOU ELECT A VARIABLE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see note (1) above), and
you elect a variable annuity payout option, the expenses shown in the above
example of "if you do not surrender your contract" would, in each case, be
increased by $4.34 based on the average amount applied to annuity payout
options in 1999. See "Annuity administrative fee" under "Charges and expenses."
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this prospectus, for the unit values and
number of units outstanding as of the periods shown for each of the variable
investment options, available as of December 31, 1999.
<PAGE>
1
Contract features and benefits
- --------
25 Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum contribution amount of $20 for each type
and series of contract purchased . If the total annual contributions to a TSA
will be at least $200 annually, we may accept contributions of less than $20.
The minimum contribution amount under our automatic investment program is $20.
We discuss the automatic investment program under "About other methods of
payment" in "More information" later in this prospectus. The following table
summarizes our rules regarding contributions to your contract.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
CONTRACT TYPE SOURCE OF CONTRIBUTIONS LIMITATIONS ON CONTRIBUTIONS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SEP o Employer o Annual employer contributions up to the
lesser of $25,500 or 15% of employee
compensation
o Limits on contributions after age 70 1/2
- -------------------------------------------------------------------------------------------------------------------------
SARSEP o Employer remitted employee salary reduction o Annual employer contributions up to the
and/or nonelective employer contributions lesser of $25,500 or 15% of employee
(pre 1997 plans only) compensation
o Limits on contributions after age 70 1/2
o Maximum salary reduction contribution is
$10,500 for 2000
- -------------------------------------------------------------------------------------------------------------------------
SIMPLE IRA o Employee salary reduction; employer match o Salary reduction contributions up to $6,000;
employer matching contributions up to 3%
of employee compensation
o Limits on contributions after age 70 1/2
- -------------------------------------------------------------------------------------------------------------------------
Unincorporated and o Employer, including for self employed o Maximum amount of contributions subject to
Corporate Trusteed o Salary reduction 401(k) if plan permits tax law formula which varies
o Maximum salary reduction contribution is
$10,500 for 2000
- -------------------------------------------------------------------------------------------------------------------------
TSA and University TSA o Employer remitted employee salary reduction o Maximum amount of contributions subject to
and/or nonelective employer contributions tax law formula which varies
o Rollovers from another TSA contract or o Maximum salary reduction contribution is
arrangement $10,500 for 2000
o Direct transfers from another contract or o Rollover or direct transfer contributions after
arrangement complying with Internal age 70 1/2 must be net of required minimum
Revenue Code (or "Code") Section 403(b) by distributions
means of IRS Revenue Ruling 90-24.
- -------------------------------------------------------------------------------------------------------------------------
EDC o Employer remitted employee salary reduction o Maximum contribution is $8,000 for 2000 or
and/or employer contributions 33 1/3% of includible compensation
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
----------
26 Contract features and benefits
-------------------------------------------------------------------------------
IRA FUNDING. The contracts we issue to fund SEP, SARSEP and, SIMPLE IRA
programs are individual retirement annuities, or "IRAs." Internal Revenue
Service ("IRS") rules for traditional IRA also generally apply to those
programs.
---------------------------------
See "Tax information" for a more detailed discussion of sources of
contributions, certain contribution limitations and other tax information. We
may refuse to accept any contribution if the sum of all contributions under
all EQUI-VEST contracts with the same annuitant would then total more than
$1,000,000. We may also refuse to accept any contribution if the sum of all
contributions under all Equitable Life annuity accumulation contracts that you
own would then total more than $2,500,000.
For information on when contributions are credited see "Dates and prices at
which contract events occur" under "More information" later in this
prospectus.
SARSEP, CORPORATE TRUSTEED AND CERTAIN HR-10 CONTRACTS
We no longer offer the EQUI-VEST contracts under SARSEP, Corporate Trusteed
and Annuitant-Owned HR-10 plans, except as follows:
o If you established a SARSEP before 1997, you may continue to make
contributions for existing and new employees under salary reduction
arrangements. We will issue a contract to each participating employee for
whom a contract has not previously been issued.
o If you are an incorporated employer and already have a retirement plan
funded by the EQUI-VEST contracts, we will enroll new employees under your
contract and accept contributions for existing employees.
o If an employer established an HR-10 plan where EQUI-VEST contracts are
owned by the annuitant, rather than by a trustee, we will offer Annuitant
- Owned HR-10 contracts to new employees and continue to accept
contributions for all participating employees.
o If a retirement plan is qualified under section 401(a) of the Internal
Revenue Code and is sponsored by a state or local governmental entity.
OWNER AND ANNUITANT REQUIREMENTS
For the following employer-funded programs, the employee must be the owner and
the annuitant on the contract: SEP-IRA, SARSEP-IRA, SIMPLE-IRA, TSA,
University TSA and Annuitant HR-10.
The trustee under Trusteed HR-10 corporate retirement and governmental plans
is the owner of the contract. In each case, the employee is the annuitant. We
do not act as trustee for these plans. Only Trusteed contracts may be sold in
Puerto Rico and the tax aspects that apply to such contracts may differ from
those described in this prospectus.
Under EDC contracts, the employer or a trust must be the owner and the
employee is the annuitant. EDC contracts are not currently available for state
or municipal government plans in Texas.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be made by check drawn on a U.S.
bank, in U.S. dollars, and made payable to Equitable Life. We do not accept
third-party checks endorsed to us except for rollover contributions, tax-free
exchanges or trustee checks that involve no refund. All checks are subject to
our ability to collect the funds. We reserve the right to reject a payment if
it is received in an unacceptable form.
Additional contributions may be made by our automatic investment program. The
method of payment is discussed in detail in "About other methods of payment"
in "More information" later in this prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the contribution. If any information is
missing or unclear we will try to obtain that information. If we are unable to
obtain all the information we require within five business days after we
receive an incomplete application or form, we will inform the financial
professional submitting the application on your
<PAGE>
- -----
27 Contract features and benefits
- --------------------------------------------------------------------------------
behalf. We will then return the contribution to you unless you specifically
direct us to keep your contribution until we receive the required information.
Generally, you may make additional contributions at any time. You may do so in
single sum amounts, on a regular basis, or as your financial situation
permits.
Generally our "business day" is any day on which Equitable Life is open and
the New York Stock Exchange is open for trading. We may, however, close due to
emergency conditions.
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options, subject to any employer plan limitations, are the
variable investment options and the guaranteed interest option and the fixed
maturity options available under the investment method you select (see
"Selecting your investment method").
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. Listed
below are the currently available portfolios, their investment objectives, and
their advisers.
- -------------------------------------------------------------------------------
Contractholders can choose from among the variable investment options, subject
to certain restrictions.
- -------------------------------------------------------------------------------
PORTFOLIOS OF EQ/ADVISORS TRUST
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQ/Aggressive Stock Long-term growth of capital Alliance Capital Management L.P.,
Massachussets Financial Services
Company
- ----------------------------------------------------------------------------------------------------------------------
Alliance Common Stock Long-term growth of capital and increasing Alliance Capital Management L.P.
income
- ----------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors High total return without, in the adviser's Alliance Capital Management L.P.
opinion, undue risk to principal
- ----------------------------------------------------------------------------------------------------------------------
Alliance Equity Index Total return (before EQ Advisors Trust and Alliance Capital Management L.P.
Separate Account A annual expenses) that
approximates the total return performance of the
Standard & Poor's 500 Composite Stock Price
Index
- ----------------------------------------------------------------------------------------------------------------------
Alliance Global Long-term growth of capital Alliance Capital Management L.P.
- ----------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income High total return through a combination of Alliance Capital Management L.P.
current income and capital appreciation
- ----------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors High total return consistent with the adviser's Alliance Capital Management L.P.
determination of reasonable risk
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
28 Contract features and benefits
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alliance High Yield High return by maximizing current income and, Alliance Capital Management L.P.
to the extent consistent with that objective,
capital appreciation
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Intermediate High current income consistent with relative Alliance Capital Management L.P.
Government Securities stability of principal
- ------------------------------------------------------------------------------------------------------------------------------
Alliance International Long-term growth of capital Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Money Market High level of current income while preserving Alliance Capital Management L.P.
assets and maintaining liquidity
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth Long-term growth of capital Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond High current income consistent with preservation Alliance Capital Management L.P.
of capital
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth Long-term growth of capital Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology Long-term growth of capital Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Balanced High return through a combination of current Alliance Capital Management L.P.,
income and capital appreciation Capital Guardian Trust Company
Prudential Investment Fund
Management, LLC,
Jennison Associates LLC
- ------------------------------------------------------------------------------------------------------------------------------
Calvert Socially Responsible Long-term capital appreciation Calvert Asset Management Company, Inc.
(Available only for TSA and EDC and Brown Capital Management, Inc.
contracts)
- ------------------------------------------------------------------------------------------------------------------------------
Capital Guardian Research Long-term growth of capital Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------
Capital Guardian U.S. Equity Long-term growth of capital Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Long-term growth of capital Evergreen Asset Management Corp.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Foundation In order of priority, reasonable income, Evergreen Asset Management Corp.
conservation of capital, and capital appreciation
- ------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Long-term capital growth Massachusetts Financial Services Company
Companies
- ------------------------------------------------------------------------------------------------------------------------------
MFS Growth with Income Reasonable current income and long-term Massachusetts Financial Services Company
growth of capital and income
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ----------
29 Contract features and benefits
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MFS Research Long-term growth of capital and future income Massachusetts Financial Services Company
- ------------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity Capital appreciation and, secondarily, income Mercury Asset Management US
- ------------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy High total investment return Mercury Asset Management US
- ------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Long-term capital appreciation Morgan Stanley Asset Management
Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced Balanced investment Putnam Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Capital growth, current income is a secondary Putnam Investment Management, Inc.
Value objective
- ------------------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income Substantial dividend income and also capital T. Rowe Price Associates, Inc.
appreciation
- ------------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Long-term growth of capital Rowe Price-Fleming International, Inc.
Stock
- ------------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Long-term capital appreciation Warburg Pincus Asset Management, Inc.
Value
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Other important information about the portfolios is included in the separate
prospectus for EQ Advisors Trust attached at the end of this prospectus.
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays
interest at guaranteed rates. We discuss our general account in "More
information."
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that
we have in effect at the time. All interest rates are effective annual rates,
but before deduction of annual administrative charges or any withdrawal
charges.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. An exception to this
approach applies to Corporate Trusteed contracts and EDC contracts issued to
government employees in New York whose EQUI-VEST funding arrangements became
effective on and after July 1, 1989. Generally, we assign an interest rate to
the total amounts invested in Corporate Trusteed and EDC contracts issued to
government employees in New York regardless of when allocations were made to
the guaranteed interest option.
The minimum yearly guaranteed interest rate is 4% for the year 2000. The
yearly guaranteed interest rate we set will never be less than the minimum
guaranteed interest rate of
<PAGE>
----------
30 Contract features and benefits
-------------------------------------------------------------------------------
3% for the life of the contract. The rate is 4% for EQUI-VEST Corporate
Trusteed contracts. Current interest rates will never be less than the yearly
guaranteed rate.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years in states where they are approved. You can allocate your contributions
to one or more of these fixed maturity options. However, you may not allocate
more than one contribution to any one fixed maturity option. Your
contributions will accumulate interest at the "rate to maturity" for each
fixed maturity option. The total amount you allocate to and accumulate in each
fixed maturity option is called the "fixed maturity amount." The fixed
maturity options are only available in all states where approved. Your
financial professional can provide your state's approval status. For contracts
issued in New York see "Charges and expenses" for information on withdrawal
charges when amounts are allocated to the fixed maturity options.
Fixed maturity options range from one to ten years to maturity.
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution. If you make any
withdrawals or transfers from a fixed maturity option before the maturity
date, we will make a "market value adjustment" that may increase or decrease
any fixed maturity amount you have left in that fixed maturity option. We
discuss the market value adjustment below and in greater detail later in this
prospectus in "More information."
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value
we will report for your fixed maturity amount will reflect a market value
adjustment. Your current value will reflect the market value adjustment that
we would make if you were to withdraw all of your fixed maturity amounts on
the date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on June 15th for each of the maturity years 2001 through 2010.
Not all of these fixed maturity options will be available for annuitants ages
76 and older. See "Allocating your contributions" below. As fixed maturity
options expire, we expect to add maturity years so that generally 10 fixed
maturity options are available at any time.
We will not accept allocations to a fixed maturity option if on
the date the contribution is to be applied:
o you previously allocated a contribution or made a transfer to the same
fixed maturity option; or
o the rate to maturity is 3% or less; or
o the fixed maturity option's maturity date is within the current calendar
year; or
o the fixed maturity option's maturity date is later than the date annuity
payments are to begin.
Your choices at the maturity date. We will notify you at least 45 days before
each of your fixed maturity options is scheduled to mature. At that time, you
may choose to have one of the following take place on the maturity date, as
long as none of the conditions listed above or in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
or into any of the variable investment options; or
(b) withdraw the maturity value (there may be a withdrawal charge).
Currently, if we do not receive your choice on or before the fixed maturity
option's maturity date, we will automatically transfer your maturity value
into the Alliance Money Market option, or another investment option if we are
required to do
<PAGE>
----------
31 Contract features and benefits
-------------------------------------------------------------------------------
so by any state regulation or if we change our procedures in the future. Such
a case is the State of New York where a different rule applies. See "For all
series contracts issued in New York - fixed maturity options."
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender or termination of your contract, or when we make deductions for
charges) from a fixed maturity option before it matures we will make a market
value adjustment, which will increase or decrease any fixed maturity amount
you have in that fixed maturity option. The amount of the adjustment will
depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly
reduce your value in the fixed maturity options, particularly in the fixed
maturity options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later
in this prospectus. Appendix III to this prospectus provides an example of how
the market value adjustment is calculated.
SELECTING YOUR INVESTMENT METHOD
You must choose one of the following two methods for selecting your investment
options:
o MAXIMUM INVESTMENT OPTIONS CHOICE. Under this method you may allocate
contributions or transfer funds to any of the available investment options
listed in A and B in the investment options chart. You can make transfers
whenever you choose. However, there will be restrictions on the amount you
can transfer out of the guaranteed interest option listed in A.
o MAXIMUM TRANSFER FLEXIBILITY. Under this method you may allocate
contributions or transfer funds to any of the available investment options
listed in A in the investment options chart and no transfer restrictions
will apply.
o TEMPORARY REMOVAL OF TRANSFER RESTRICTIONS THAT APPLY TO THE INVESTMENT
METHODS. From time to time we may remove certain restrictions that apply
to your investment method. If we do so we will tell you. We will also tell
you at least 45 days in advance of the day that we intend to reimpose the
transfer restrictions. When we reimpose the transfer restrictions that
apply to your investment method, amounts that are in any investment
options that are not available under your investment method can remain in
these options, but you will not be permitted to allocate new contributions
or make additional transfers (including through our rebalancing program)
into these options.
<PAGE>
- ----------
32 Contract features and benefits
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
INVESTMENT OPTIONS
- ------------------------------------------------------------------------------------------------
A
- ------------------------------------------------------------------------------------------------
o Guaranteed Interest Option
- ------------------------------------------------------------------------------------------------
DOMESTIC STOCK INTERNATIONAL STOCK
- ------------------------------------------------------------------------------------------------
<S> <C>
o EQ/Aggressive Stock o Alliance Global
o Alliance Common Stock o Alliance International
o Alliance Equity Index o Morgan Stanley Emerging
o Alliance Growth and Income Markets Equity
o EQ/Alliance Premier Growth o T. Rowe Price International
o Alliance Small Cap Growth Stock
o EQ/Alliance Technology
o Calvert Socially Responsible*
o Capital Guardian Research
o Capital Guardian U.S. Equity
o EQ/Evergreen
o MFS Emerging Growth
Companies
o MFS Growth with Income
o MFS Research
o Mercury Basic Value Equity
o EQ/Putnam Growth & Income
Value
o T. Rowe Price Equity Income
o Warburg Pincus Small
Company Value
- ------------------------------------------------------------------------------------------------
BALANCED/HYBRID
- ------------------------------------------------------------------------------------------------
o Alliance Growth Investors
o EQ/Balanced
o EQ/Evergreen Foundation
o Mercury World Strategy
o EQ/Putnam Balanced
- ------------------------------------------------------------------------------------------------
B
- ------------------------------------------------------------------------------------------------
FIXED INCOME
- ------------------------------------------------------------------------------------------------
o Alliance High Yield o Alliance Money Market
o Alliance Intermediate o Alliance Quality Bond
Government Securities
- ------------------------------------------------------------------------------------------------
BALANCED/HYBRID
- ------------------------------------------------------------------------------------------------
o Alliance Conservative Investors
- ------------------------------------------------------------------------------------------------
FIXED MATURITY OPTIONS
- ------------------------------------------------------------------------------------------------
The fixed maturity options are only available in all states where
approved.
Transfer restrictions apply as indicated above under "Fixed maturity
options and maturity dates."
- ------------------------------------------------------------------------------------------------
</TABLE>
* Only available for TSA and EDC contracts.
Please note that under Trusteed contracts your employer or the plan trustee
will select the investment options available to the participant. Under all
other contracts, you may choose from any of the investment options available
under your investment method. In all cases, if any of the options listed in B
in the chart above, is selected, you will be subject to the restrictions on
transfers out of the guaranteed interest option that apply under the maximum
investment options choice investment method.
------------------------------------------------------------------------------
A participant is an individual who participates in an employer's plan funded
by an EQUI-VEST contract. The participant is also the annuitant who is the
measuring life for determining annuity benefits.
------------------------------------------------------------------------------
ERISA CONSIDERATIONS FOR EMPLOYERS
If you are an employer and your plan is intended to comply with the
requirements of the Employee Retirement Income Security Act of 1974 ("ERISA")
Section 404(c), you or your plan trustee must make sure that the investment
options chosen for your plan constitute a broad range of investment choices as
required by the Department of Labor's ("DOL") regulation under ERISA Section
404(c). See
"Tax information."
See Appendix I for information regarding investment choices available under
original contracts.
ALLOCATING YOUR CONTRIBUTIONS
Once you have made your investment method choice, you may allocate your
contributions to one or more, or all of the investment options that you have
chosen, subject to any restrictions under the investment method you chose.
However, you may not allocate more than one contribution to any one fixed
maturity option. Allocations must be in whole percentages and you may change
your allocation percentages at any time. However, the total of your
allocations must equal 100%. Once your contributions are allocated to the
investment options, they become a part of your account value. We discuss
account value in "Determining your contract's value." After your contract is
issued, you may request that we add or eliminate any variable investment
options that result in transfer restrictions. We reserve the right to deny
your request. See "Transferring your money among investment options."
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33 Contract features and benefits
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YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract directly to our processing office within 10 days after you receive
it. In some states, this "free look"period may be longer.
For contributions allocated to the variable investment options, your refund
will equal your contributions, reflecting any investment gain or loss that
also reflects the daily charges we deduct. For contributions allocated to the
guaranteed interest option, your refund will equal the amount of the
contributions but will not include interest. For contributions allocated to
the fixed maturity options, your refund will equal the amount of contribution
allocated to fixed maturity options reflecting any positive or negative market
value adjustments. Some states require that we refund the full amount of your
contribution (not including any investment gain or loss, or interest or market
value adjustment). For contracts issued to fund SEPs, SARSEPs or SIMPLE IRAs
that are returned to us within seven days after you receive it, we are
required to refund the full amount of your contribution.
We may require that you wait six months before you apply for a contract with
us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" for possible consequences of
cancelling your contract.
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Determining your contract's value
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34 Determining your contract's value
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YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the: (i) values you
have allocated to the variable investment options; (ii) the guaranteed
interest option; (iii) the market adjusted amounts you have in the fixed
maturity options; and (iv) if you have taken a loan under a TSA or Corporate
Trusteed contract, amounts held in your loan reserve account (see "Additional
loan provisions" in the SAI). These amounts are subject to certain fees and
charges discussed in "Charges and expenses."
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less: (i) any
applicable withdrawal charges and (ii) the total amount or a pro rata portion
of the annual administrative change, and under a TSA or Corporate Trusteed
contract, less any outstanding loan plus accrued interest. See "Additional
loan provisions" in the SAI.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding
portfolio. Your value in each variable investment option is measured by
"units." The value of your units will increase or decrease as though you had
invested it in the corresponding portfolio's shares directly. Your value,
however, will be reduced by the amount of the fees and charges that we deduct
under the contract.
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Units measure your value in each variable investment option.
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The unit value for each variable investment option depends on the investment
performance of that option minus daily charges for mortality and expense risks
and other expenses. On any day, your value in any variable investment option
equals the number of units credited to that option, adjusted for any units
deducted from your contract under that option, multiplied by that day's value
for one unit. The number of your contract units in any variable investment
option does not change unless they are: (i) increased to reflect additional
contributions; (ii) decreased to reflect a withdrawal (plus applicable
withdrawal charges); (iii) increased to reflect a transfer into, or decreased
to reflect a transfer out of a variable investment option; or (iv) decreased
to reflect a transfer of your loan amount to the loan reserve account (if
loans are permitted under your contract).
In addition, the annual administrative charge, or third-party transfer or
exchange charge, will reduce the number of units credited to your contract. A
description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
and transfers out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment.
Your value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value.
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Transferring your money among investment options
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35 Transferring your money among investment options
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TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You must transfer at least $300 of account value or, if less, the entire
amount in the investment option. We may waive the $300 requirement.
o You may not transfer to a fixed maturity option in which you already have
value.
o You may not transfer to a fixed maturity option if its maturity date is
later than the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date the transfer may cause a market value adjustment.
o If you choose the maximum investment options choice method for selecting
investment options, the maximum amount you may transfer in any contract
year from the guaranteed interest option to any other investment option is
(a) 25% of the amount you had in the guaranteed interest option on the
last day of the prior contract year or, if greater, (b) the total of all
amounts you transferred from the guaranteed interest option to any other
investment option in the prior contract year.
If you transfer money from another financial institution into the guaranteed
interest option during your first contract year, and if you have selected the
maximum investment options choice, you may, during the balance of that
contract year, transfer up to 25% of such initial guaranteed interest option
balance to any other investment option.
See Appendix I for transfer restrictions under original contracts.
Subject to the terms of your contract, upon advance notice we may change or
establish additional restrictions on transfers among the investment options. A
transfer request does not change your percentages for allocating current or
future contributions among the investment options.
You may request a transfer in writing or by telephone using TOPS or online
using EQAccess. (We anticipate that transfers using EQAccess will be available
by the end of 2000.) You must send all signed written requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts to be transferred, and
(3) the investment options to and from which you are transferring.
Under Trusteed and EDC contracts, you or the trustee or employer owner,
whichever applies, can direct us to transfer among the investment options.
We will confirm all transfers in writing.
MARKET TIMING
You should note that the product is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in
market timing, making programmed transfers, frequent transfers or transfers
that are large in relation to the total assets of the underlying mutual fund
portfolio. Market timing strategies are disruptive to the underlying mutual
fund portfolios in which the variable investment options invest. If we
determine that your transfer patterns among the variable investment options
reflect a market timing strategy, we reserve the right to take action
including, but not limited to: restricting the availability of transfers
through telephone requests, facsimile transmissions, automated telephone
services, internet services or any electronic transfer services. We may also
refuse to act on transfer instructions of an agent acting under a power of
attorney who is acting on behalf of more than one owner.
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36 Transferring your money among investment options
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AUTOMATIC TRANSFER OPTIONS INVESTMENT SIMPLIFIER
You may choose from two automatic options for transferring amounts from the
guaranteed interest option to the variable investment options. The transfer
options are the "fixed-dollar option" and the "interest sweep." You may select
one or the other, but not both.
FIXED-DOLLAR OPTION. Under this option you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice on a monthly basis. You can specify the
number of monthly transfers or instruct us to continue to make monthly
transfers until all available amounts in the guaranteed interest option have
been transferred out.
See Appendix I for transfer restrictions under original contracts.
In order to elect the fixed-dollar option you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at
our processing office. You also must elect to transfer at least $50 per month.
The fixed-dollar option is subject to the guaranteed interest option transfer
limitation described above under "Transferring your account value."
The fixed-dollar option is a form of dollar-cost averaging. Dollar-cost
averaging allows you to gradually allocate amounts to the variable investment
options by periodically transferring approximately the same dollar amount to
the variable investment options you select. This will cause you to purchase
more units if the unit's value is low and fewer units if the unit's value is
high. Therefore, you may get a lower average cost per unit over the long term.
This plan of investing, however, does not guarantee that you will earn a
profit or be protected against losses.
INTEREST SWEEP. Under the interest sweep, we will make transfers on a monthly
basis from amounts in the guaranteed interest option. The amount we will
transfer will be the interest credited to amounts you have in the guaranteed
interest option from the last business day of the prior month to the last
business day of the current month. You must have at least $7,500 in the
guaranteed interest option on the date we receive your election and on the
last business day of each month thereafter to participate in the interest
sweep option.
WHEN YOUR PARTICIPATION IN AN AUTOMATIC TRANSFER OPTION WILL END. Your
participation in an automatic transfer option will end:
o Under the fixed-dollar option, when either the number of designated monthly
transfers have been completed or the amount you have available in the
guaranteed interest option has been transferred out.
o Under the interest sweep, when the amount you have in the guaranteed
interest option falls below $7,500 (determined on the last business day of
the month) for two months in a row.
o Under either option, on the date we receive at our processing office, your
written request to cancel automatic transfers, or on the date your
contract terminates.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option
(whole percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually).
While your rebalancing program is in effect, we will transfer amounts among
each variable investment option so that the percentage of your account value
that you specify is invested in each option at the end of each rebalancing
date. Your entire account value in the variable investment options must be
included in the rebalancing program.
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37 Transferring your money among investment options
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Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional
before electing the program.
You may elect the rebalancing program at any time. To be eligible, you must
have at least $5,000 of account value in the variable investment options.
Rebalancing is not available for amounts you have allocated in the guaranteed
interest option or the fixed maturity option.
You may change your allocation instructions or cancel the program at any time.
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Accessing your money
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38 Accessing your money
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WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of
contract. More information follows the table. For the tax consequences of
taking withdrawals, see "Tax information."
METHOD OF WITHDRAWAL
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PARTIAL MINIMUM
CONTRACT WITHDRAWAL SYSTEMATIC DISTRIBUTION
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SEP/SARSEP yes yes yes
SIMPLE IRA yes no yes
Trusteed (both types) yes** no yes**
TSA yes* yes* yes
University TSA yes*** yes*** yes
EDC yes** no yes**
Annuitant-Owned HR-10 yes** yes** yes
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* Only if contract is not subject to withdrawal restrictions and there are
no outstanding loans.
** Requires Plan Administrator's approval. See "Tax information and ERISA
matters" later in this prospectus.
*** May require Plan Administrator's approval.
PARTIAL WITHDRAWALS AND TERMINATIONS
Subject to the terms of the Plan, your contract, and any restrictions in
federal income tax rules, you may take partial withdrawals from your account
value or terminate your contract at any time while the annuitant is living and
before annuity payments begin. The minimum amount you may withdraw at any time
is $300. If your account value is less than $500 after a withdrawal, we may
terminate your contract and pay you its cash value.
Partial withdrawals, or payments of remaining account value in excess of the
10% free withdrawal amount, may be subject to a withdrawal charge.
SYSTEMATIC WITHDRAWALS
If you have at least $20,000 of account value in the variable investment
options and the guaranteed interest option you may elect systematic
withdrawals. You may elect to have your systematic withdrawals made on a
monthly or quarterly basis. The minimum amount you may take for each
withdrawal is $300. We will make the withdrawal on any day of the month that
you select as long as it is not later than the 28th day of the month. If you
do not select a date, your withdrawals will be made on the first day of the
month. A check for the amount of the withdrawal will be mailed to you or, if
you prefer, we will electronically transfer the money to your checking
account.
You may withdraw either the amount of interest earned in the guaranteed
interest option or a fixed-dollar amount from either the variable investment
options or the guaranteed interest option. If you elect the interest option, a
minimum of $20,000 must be maintained in the guaranteed interest option. If
you elect the fixed-dollar option you do not have to maintain a minimum
amount. You may elect to have the amount of the withdrawal subtracted from
your account value in one of three ways:
(1) pro rata from more than one variable investment option (without using up
your total value in those options); or
(2) pro rata from more than one variable investment option (until your value
in those options is used up); or
(3) you may specify a dollar amount from only one variable investment option.
You may elect systematic withdrawals under TSA contracts if:
o your plan or program permits it;
o the contract is not subject to withdrawal restrictions; and
o the contract does not have a loan outstanding.
You can cancel the systematic withdrawal option at any
time.
Amounts withdrawn in excess of the 10% free withdrawal amount may be subject
to a withdrawal charge.
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39 Accessing your money
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MINIMUM DISTRIBUTION WITHDRAWALS
(SEPs, SARSEPs, SIMPLE IRAs, TSAs, EDCs, and Annuitant- owned HR-10 contracts
- See "Tax information")
We offer the minimum distribution withdrawal option to help you meet lifetime
required minimum distributions under federal income tax rules. You may elect
this option in the year in which you reach age 70 1/2 and have account value
in the variable investment options and the guaranteed interest option of at
least $2,000. The minimum amount we will pay out is $300, or if less, your
account value. If your account value is less than $500 after the withdrawal,
we may terminate your contract and pay you its cash value. You
may elect the method you want us to use to calculate your minimum distribution
withdrawal from the choices we offer. Currently, minimum distribution
withdrawal payments will be made annually.
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your values in the variable investment options and the guaranteed
interest option. If those amounts are insufficient, we will make up required
amounts from the fixed maturity options to the extent you have value in those
options. A market value adjustment may apply. We will calculate your payment
each year based on your account value at the end of each calendar year, based
on the method you choose.
Except for EDC contracts your election is revocable. For TSA Contracts you may
not elect the minimum distribution option if you have an outstanding loan
under a contract.
For contracts subject to minimum distribution requirements, we will send a
form outlining the distribution options available in the year you reach age
70 1/2 (if you have not begun your annuity payments before that time).
If you have an EQUI-VEST TSA that was purchased before December 31, 1986 or a
TSA purchased from another insurance company before December 31, 1986 and
subsequently transferred to an EQUI-VEST TSA, the amount of your pre-1987
account balance is not subject to the minimum distribution rules at age 70 1/2
but postponed to age 75. However, post-1986 salary reduction contributions and
all earnings since that date are subject to minimum distribution requirements
of Section 401(a)(9) of the Internal Revenue Code.
Distributions from a qualified plan, including our prototype plans through
which Annuitant-Owned HR-10 contracts are issued, are subject to the
provisions of the plan document.
AUTOMATIC DEPOSIT SERVICE
If you are receiving required minimum distribution payments from a TSA, SEP,
SARSEP or SIMPLE IRA contract you may use our automatic deposit service.
Under this service we will automatically deposit the required minimum
distribution payment from your TSA, SEP, SARSEP or SIMPLE IRA contract
directly into an existing EQUI-VEST NQ or ROTH IRA or an existing EQUI-VEST
Express NQ or ROTH IRA contract according to your allocation instructions.
LOANS UNDER TSA AND CORPORATE TRUSTEED CONTRACTS
You may borrow against your account value only under a TSA or Corporate
Trusteed contract. An employer's retirement plan may, however, contain
restrictions, and loans under TSA and Corporate Trusteed contracts may not be
available in all states. Also, ERISA rules apply to loans under Corporate
Trusteed contracts, and may apply under TSA contracts. Loans are not available
under University TSA contracts or under any TSA when the required minimum
distribution withdrawal option has been elected.
When you take a loan we will transfer certain amounts to a loan reserve
account. More information about the loan reserve account is in the SAI under
"Additional loan provisions."
We permit only one loan to be outstanding at any time. Before we make a loan
you must properly complete and sign a loan request form. You should read the
terms of the form carefully and consult with a tax adviser before taking out a
loan. In the case of certain Corporate Trusteed and certain
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40 Accessing your money
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TSA contracts subject to ERISA, the written consent of your spouse will be
required to obtain a loan and the Plan Administrator needs to sign the loan
form. Please see the loan provisions stated in the contract and the loan
request form for more details.
A loan will not be treated as a taxable distribution unless:
o it exceeds limits of federal income tax rules; or
o interest and principal are not paid when due; or
o in some instances, service with the employer terminates.
Loans under TSA and Corporate Trusteed contracts are discussed further in "Tax
information" later in this prospectus and in "Additional loan provisions" in
the SAI. The tax consequences of failure to repay a loan when due are
substantial.
TERMINATION
We may terminate your contract and pay you the account value if:
(1) your account value is less than $500 and you have not made contributions
to your contract for a period of three years; or
(2) you request a partial withdrawal that reduces your account value to an
amount less than $500; or
(3) you have not made any contributions within 120 days from your contract
date.
We will deduct the amount of any outstanding loan balance and any withdrawal
charge that applies to the loan balance from the account value when we
terminate your contract.
TEXAS ORP PARTICIPANTS
For participants in a Texas Optional Retirement Program, Texas law permits
withdrawals only after one of the following distributable events occur:
o turning age 70 1/2; or
o death; or
o retirement; or
o termination of employment in all Texas public institutions of higher
education.
To make a withdrawal, a properly completed written acknowledgment must be
received from the employer. If a distributable event occurs prior to your
being vested, any amounts provided by an employer's first-year matching
contribution will be refunded to the employer. We may change these provisions
without your consent, but only to the extent necessary to maintain compliance
with any law that applies.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable
investment options within seven calendar days after the date of the
transaction to which the request relates. These transactions may include
applying proceeds to a variable annuity payout option, payment of a death
benefit, payment of any amount you withdraw (less any withdrawal charge) and,
upon surrender or termination, contract termination payment of the cash value.
We may postpone such payments or applying proceeds for any period during
which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your values in the guaranteed interest
option and the fixed maturity options (other than for death benefits) for up
to six months while you are living. We also may defer payments for a
reasonable amount of time (not to exceed 15 days) while we are waiting for a
contribution check to clear.
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41 Accessing your money
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All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
EQUI-VEST offers you several choices of annuity payout options. Some enable
you to receive fixed annuity payments which can be level or increasing and
others enable you to receive variable annuity payments.
You can choose from among the different forms of annuity payout options listed
below. Restrictions may apply, depending on the type of contract you own or
the annuitant's age at contract issue.
ANNUITY PAYOUT OPTIONS
You can choose from among the following annuity payout options:
<TABLE>
<S> <C>
- -----------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- -----------------------------------------------------------------
Variable annuity payout options Life annuity (not available
in New York)
Life annuity with period
certain
- -----------------------------------------------------------------
</TABLE>
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of
a selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy or the joint life
expectancy of you and your spouse. Except for EDC plan in New York.
Generally, unless the annuitant elects otherwise with the written consent
of the spouse, this will be the form of annuity payment provided for
married annuitants under qualified plans and certain TSAs.
o Life annuity with refund certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This
payout option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. The guarantee period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. Currently, this payout option is available only as a fixed
annuity. This is the normal form of annuity for annuitants in governmental
EDC plans in New York. Life annuity payout options are not available for
governmental EDC plans in New York.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death,
payments continue to the survivor. We may offer other payout options not
outlined here. Your financial professional can provide details.
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42 Accessing your money
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FIXED ANNUITY PAYOUT OPTION
With fixed annuities, we guarantee fixed annuity payments that will be based
either on the tables of guaranteed annuity payments in your contract or on our
then current annuity rates, whichever is more favorable for you.
VARIABLE ANNUITY PAYOUT OPTION
Variable annuities may be funded through your choice of variable investment
options investing in portfolios of EQ Advisors Trust. The contract also offers
a fixed annuity payout option that can be elected in combination with the
variable annuity payout options. The amount of each variable annuity payment
will fluctuate, depending upon the performance of the variable investment
options, and whether the actual rate of investment return is higher or lower
than an assumed base rate. Please see "Annuity unit values" in the SAI.
We may offer other payout options not outlined here. Your financial
professional can provide details.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written
agreement confirming your right to receive annuity payments. We require you to
return your contract before annuity payments begin. Unless you choose a
different payout option, we will pay annuity payments under a life annuity
with a period certain of 10 years. You choose whether these payments will be
either fixed or variable. The contract owner and annuitant must meet the issue
age and payment requirements.
You can choose the date annuity payments are to begin. You can change the date
your annuity payments are to begin anytime before that date as long as you do
not choose a date later than the 28th day of any month. Also, that date may
not be later than the contract date anniversary that follows the annuitant's
85th birthday. This may be different in some states.
Before your annuity payments are to begin, we will notify you by letter that
the annuity payout options are available. Once you have selected a payout
option and payments have begun, no change can be made, other than transfers
(if permitted in the future) among the variable investment options if a
variable annuity is selected.
The amount of the annuity payments will depend on:
(1) the amount applied to purchase the annuity;
(2) the type of annuity chosen, and whether it is fixed or variable. If you
choose a variable annuity, we use an assumed base rate of 5% to
calculate the level of payments. However, in states where that rate is
not permitted the assumed base rate will be 3 1/2%. We provide
information about the assumed base rate in the SAI;
(3) in the case of a life annuity, the annuitant's age (or the annuitant's and
joint annuitant's ages); and
(4) in certain instances, the sex of the annuitant(s).
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
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Charges and expenses
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43 Charges and expenses
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CHARGES THAT EQUITABLE LIFE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risk charge
o A charge for other expenses
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On the last day of the contract year an annual administrative charge, if
applicable
o Charge for third-party transfer or exchange (for series 300 and 400 only)
o At the time you make certain withdrawals or surrender your contract, or
your contract is terminated - a withdrawal charge
o At the time annuity payments are to begin - charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your
state. An annuity administrative fee may also apply
More information about these charges appears below. The charges differ
depending on which contract series you purchase.
We will not increase these charges for the life of your contract, except as
noted below. We may reduce certain charges under group or sponsored
arrangements. See "Group or sponsored arrangements" below.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
CHARGES UNDER THE CONTRACTS
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment
option to compensate us for mortality and expense risks, including the death
benefit. The daily charge is equivalent to an annual rate of 1.10% of the net
assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity benefits than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. We may
change the actuarial basis for our guaranteed annuity payment tables, but only
for new contributions and only at five year intervals from the contract date.
Lastly, we assume a mortality risk to the extent that at the time of death,
the guaranteed death benefit exceeds the cash value of the contract. In
addition, we waive any withdrawal charge upon payment of a death benefit.
The expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
To the extent that the mortality and expense risk charges are not needed to
cover the actual expenses incurred, they may be considered an indirect
reimbursement for certain sales and promotional expenses relating to the
contracts.
CHARGE FOR OTHER EXPENSES
We deduct this daily charge from the net assets in each variable investment
option. This charge, together with the annual administrative charge described
below, is for providing administrative and financial accounting services under
the contracts. The daily charge is equivalent to a maximum annual rate of: (i)
0.84% of the net assets in each variable investment option. Under series 100
contracts, 0.60% of this charge is designed to reimburse us for research and
development costs and for administrative expenses that are not covered by the
annual administrative
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44 Charges and expenses
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charge described below. The remaining 0.24% is to reimburse us for the cost of
financial accounting services we provide under the contracts; (ii) under
series 200 contracts, the charge for expenses and financial accounting is
0.25% of the net assets in each variable investment option; and (iii) under
series 300 and 400 contracts, 0.25% of the net assets in each variable
investment option. Currently, the charge we deduct for variable investment
options other than the Alliance Money Market, Alliance Common Stock,
EQ/Aggressive Stock, and EQ/Balanced options we currently deduct 0.24% of the
net assets. We may, upon advance notice to you, increase the charge to 0.25%
of the net assets for these variable investment options.
MAXIMUM TOTAL CHARGES: Under series 100 and 200 contracts for the Alliance
Money Market, EQ/Balanced, Alliance Common Stock and EQ/Aggressive Stock
options, the combined amount of the Separate Account A charges to these
variable investment option and EQ Advisors Trust charges for investment
advisory fees and direct operating expenses may not exceed a total annual rate
of 1.75% of the value of the assets held in each of those variable investment
options.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on the last day of
each contract year. We will deduct a pro rata portion of the charge if you
surrender your contract, elect an annuity payout option, or the annuitant dies
during the contract year.
Under series 300 and 400 contracts, during the first two contract years the
charge is equal to $30 or, if less, 2% of your current account value. The
charge is $30 for contract years three and later. We may increase this charge
if our administrative costs rise, but the charge will never exceed $65
annually. We also may waive the administrative charge for contracts having an
account value of a specified amount on the last business day of each contract
year- currently $20,000 for SEP, SARSEP, and SIMPLE IRA contracts. We reserve
the right to deduct this charge on a quarterly, rather than annual basis.
Under series 100 and 200 contracts, the charge is equal to $30 or, if less, 2%
of the current account value plus any amount previously withdrawn during that
contract year.
The charge is deducted pro rata from each investment option in which you have
account value.
For SEP, SARSEP, SIMPLE IRA, Unincorporated Trusteed and Annuitant-Owned HR-10
contracts, if at the end of any contract year your account value is at least
$10,000, we will waive the annual administrative charge.
For TSA, University TSA, EDC and Corporate Trusteed contracts the annual
administrative charge is waived if the account value is at least $25,000 at
the end of the contract year.
The charge is deducted pro rata from the variable investment options and the
guaranteed interest option unless you tell us otherwise. If those amounts are
insufficient, we will make up the required amounts from the fixed maturity
options to the extent you have value in those options, unless you tell us
otherwise.
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE
Under series 300 and 400 contracts, we impose a charge for making a direct
transfer of amounts from your contract to a third party, such as in the case
of a trustee-to-trustee transfer for an IRA contract, or if you request that
your contract be exchanged for a contract issued by another insurance company.
In either case, we will deduct from your account value any withdrawal charge
that applies and (except for series 300 contracts issued in Florida) a charge
of $25 for each direct transfer or exchange. We reserve the right to increase
this charge to a maximum of $65.
WITHDRAWAL CHARGE
A withdrawal charge may apply in three circumstances: (1) you make one or more
withdrawals during a contract year; or (2) you surrender your contract; or (3)
we terminate your contract. The amount of the charge will depend on whether
the free withdrawal amount applies, and the availability of one or more
exceptions.
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45 Charges and expenses
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In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the amount of the withdrawal charge
from your account value. Any amount deducted to pay withdrawal charges is also
subject to a withdrawal charge.
We deduct the withdrawal amount and the withdrawal charge pro rata from the
variable investment options and from the guaranteed interest option. If those
amounts are insufficient, we will make up the required amounts from the fixed
maturity options with the earliest maturities first. If we deduct all or a
portion of the withdrawal charge from the fixed maturity options, a market
value adjustment may apply.
WITHDRAWAL CHARGE FOR SERIES 300 AND 400 CONTRACTS
The amount of the withdrawal charge we deduct is equal to 6% of contributions
withdrawn that were made in the current and five prior contract years. In the
case of terminations, we will pay you the greater of (i) the account value
after any withdrawal charge has been imposed, or (ii) the free withdrawal
amount plus 94% of the remaining account value.
For purposes of calculating the withdrawal charge, amounts withdrawn up to the
free withdrawal amount are not considered a withdrawal of any contribution. We
also treat contributions that have been invested the longest as being
withdrawn first. We treat contributions as withdrawn before earnings for
purposes of calculating the withdrawal charge.
We reserve the right to change the amount of the withdrawal charge, but it
will not exceed 6% of the contributions withdrawn. Any change will not be
unfairly discriminatory. We may also reduce the withdrawal charge in order to
comply with any state law requirement. See "Contracts issued in New York -
fixed maturity options" below.
The withdrawal charge does not apply in the circumstances described below.
10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the time you request a
withdrawal, minus any other withdrawals made during the contract year.
DEATH OR PURCHASE OF ANNUITY. The withdrawal charge does not apply if:
o the annuitant dies and a death benefit is payable to the beneficiary.
o we receive a properly completed election form providing for the account
value to be used to buy a life contingent annuity payout option or a
non-life annuity with a period certain for a term of at least ten years.
DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal
charge also does not apply if:
o The annuitant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration; or
o We receive proof satisfactory to us (including certification by a licensed
physician) that the annuitant's life expectancy is six months or less; or
o The annuitant has been confined to a nursing home for more than 90 days (or
such other period, as required in your state) as verified by a licensed
physician. A nursing home for this purpose means one that is (a) approved
by Medicare as a provider of skilled nursing care service, or (b) licensed
as a skilled nursing home by the state or territory in which it is located
(it must be within the United States, Puerto Rico, U.S. Virgin Islands, or
Guam) and meets all of the following:
- its main function is to provide skilled, intermediate, or custodial
nursing care;
- it provides continuous room and board to three or more persons;
- it is supervised by a registered nurse or licensed practical nurse;
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46 Charges and expenses
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- it keeps daily medical records of each patient;
- it controls and records all medications dispensed; and
- its primary service is other than to provide housing for residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the disability is caused by a
preexisting condition or a condition that began within 12 months of the
contract date. Some states may not permit us to waive the withdrawal charge in
the above circumstances, or may limit the circumstances for which the
withdrawal charge may be waived. Your financial professional can provide more
information or you may contact our processing office.
For SEP, SARSEP and SIMPLE IRA contracts the withdrawal charge also does not
apply:
o after six contract years and the annuitant is at least age 59 1/2; or
o if you request a refund of a contribution in excess of amounts allowed to
be contributed under the federal income tax rules within one month of the
date on which you made the contribution.
WITHDRAWAL CHARGE FOR SERIES 100 AND 200 CONTRACTS
A withdrawal charge may apply in three circumstances: (1) if you make one or
more withdrawals during a contract year; (2) you surrender your contract; or
(3) we terminate your contract. The amount of the charge will depend on
whether the free withdrawal amount applies, and the availability of one or
more exceptions.
For Trusteed and TSA contracts no withdrawal charge will be applied during any
contract year in which the amount withdrawn is less than or equal to 10% of
the account value at the time the withdrawal is requested minus any amount
previously withdrawn during that contract year. This 10% portion is called the
free withdrawal amount. For EDC, SEP, SARSEP and SIMPLE IRA contracts, the
free withdrawal amount is available only after three contract years have been
completed or the annuitant has reached age 59 1/2.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the amount of the withdrawal charge
from your account value. Any amount deducted to pay withdrawal charges is also
subject to a withdrawal charge.
FOR TRUSTEED CONTRACTS. The amount of the withdrawal charge we deduct is equal
to 6% of contributions withdrawn that were made in the current and five prior
contract years. In the case of terminations, we will pay you the greater of
(i) the account value after any withdrawal charge has been imposed, and after
deducting the amount of any loan balance and accrued interest, or (ii) the
free withdrawal amount plus 94% of the remaining account value. For contracts
issued to annuitants age 60 or older, this percentage will be 95% in the fifth
contract year. Under group contracts for these annuitant ages, there is no
reduction in the withdrawal charge in the fifth and sixth contract year.
For purposes of calculating the withdrawal charge, amounts withdrawn up to the
free withdrawal amount are not considered a withdrawal of any contribution. We
also treat contributions that have been invested the longest as being
withdrawn first. We treat contributions as withdrawn before earnings for
purposes of calculating the withdrawal charge. See "Tax information."
The withdrawal charge does not apply in the circumstances described below.
For Trusteed contracts the withdrawal charge does not apply if:
o The annuitant dies and a death benefit is made available to the
beneficiary.
o We receive a properly completed election form providing for the account
value to be used to buy a life annuity payout option.
o The contract owner has completed at least five contract years and the
annuitant has reached age 59 1/2.
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47 Charges and expenses
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o We receive a request for the refund of an excess contribution within one
month of the date the contribution is made.
o In addition, for Corporate Trusteed contracts, the withdrawal charge does
not apply if the annuitant has reached age 59 1/2 and has retired or
employment has been terminated, no matter how many contract years have
been completed.
FOR SEP, SARSEP, SIMPLE IRA, TSA, EDC AND ANNUITANT-OWNED HR-10 CONTRACTS. The
withdrawal charge equals a percentage of the amount withdrawn, and any TSA
defaulted loans. The percentage that applies depends on the contract year in
which the withdrawal is made, according to the following table:
- ---------------------------------------------------
CONTRACT
YEAR(S) CHARGE
- ---------------------------------------------------
1 through 5 6%*
6 through 8 5
9 4
10 3
11 2
12 1
13 and later 0
- ---------------------------------------------------
* This percentage may be reduced at older ages for certain contract series.
Your financial professional can provide further details about the contract
series you own.
The total of all withdrawal charges assessed will not exceed 8% of all
contributions made during the current contract year and the nine contract
years before the withdrawal is made.
The withdrawal charge does not apply in the circumstances described below.
No withdrawal charge applies under SEP, SARSEP, SIMPLE IRA, TSA, EDC or
Annuitant-Owned HR-10 contracts if:
o after five contract years and the annuitant is at least age 59 1/2; or
o you request a refund of an excess contribution within one month of the date
on which the contribution is made; or
o the annuitant dies and the death benefit is made available to the
beneficiary; or
o after five contract years and the annuitant is at least age 55, and the
amount withdrawn is used to purchase from us a period certain annuity that
extends beyond the annuitant's age 59 1/2, and allows no prepayment; or
o after three contract years and the amount withdrawn is used to purchase
from us a period certain annuity for a term of at least 10 years, and
allows no prepayment; or
o the amount withdrawn is applied to the election of a life contingent
annuity payout option. (This form of payment is not available for
annuitants in Governmental EDC Plans in New York), or
o the amount withdrawn is applied to the election of a period certain annuity
of at least 15 years, but not in excess of the annuitant's life
expectancy, that allows no prepayment. (This provision is available only
for annuitants in governmental EDC plans in New York.)
No withdrawal charge applies under a TSA contract if:
o the contract owner has completed at least five contract years, has reached
age 55 and has separated from service.
No withdrawal charge applies under a SEP contract funding
SARSEP arrangements if:
o the amount withdrawn is a distribution of deferrals disallowed (plus or
minus any gain or loss) by reason of the employer's failure to meet the
Internal Revenue Code's requirement that 50% of eligible employees elect
SARSEP within the plan year and the request for withdrawal is made by the
April 15th of the calendar year following the calendar year in which you
were notified of such disallowance; or
o the amount withdrawn is an "excess contribution" (as such term is defined
in Section 408(k)(6)(C)(iii) of the Internal Revenue Code), plus or minus
any gain or loss, and the request for withdrawal is made by the April 15th
of the
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48 Charges and expenses
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calendar year following the calendar year in which the excess
contributions were made; or
o the amount withdrawn is an "excess deferral" (as such term is defined in
Section 402(g)(2) of the Internal Revenue Code), plus or minus any gain or
loss, and the request for withdrawal is made by the April 15th of the
calendar year following the calendar year in which such excess deferrals
were made.
The tax consequences of withdrawals are discussed under "Tax information."
NY EDC PLANS. As a result of regulations which apply to EDC plans of
government employers in New York ("NY EDC plans"), EQUI-VEST contracts funding
NY EDC plans contain special provisions that apply to all NY EDC plans whose
EQUI-VEST funding arrangements became effective or were renewed on or after
July 1, 1989.
These provisions permit the automatic termination of all contracts issued in
connection with a NY EDC plan five years after the effective date (or any
renewal date) of its EQUI-VEST funding arrangement without the deduction of
any contingent withdrawal charges. If agreed to by the employer or plan
trustee and us, the period may be shorter than five years. A decision to
permit the automatic termination of all contracts would result in the transfer
of each contract's account value to a successor funding vehicle designated by
the employer.
The employer sponsoring a NY EDC plan or plan trustee can renew the EQUI-VEST
funding arrangement in a written notice to us which includes a certification
of compliance with procedures under the applicable regulations. We are not
responsible for the validity of any certification by the employer. A written
notice to transfer must be received by our processing office and accepted by
us not later than seven days before the date on which a transfer is to occur.
If an employer fails to notify us in writing as to a transfer of the NY EDC
arrangement, or as to its intention not to renew, we will continue the
arrangement and associated contracts will not be automatically terminated.
No further investment experience, whether positive, or negative, will be
credited under a NY EDC plan contract once the contract terminates. As with
other tax-favored retirement programs in which the funding is affected by
actions of a sponsoring employer, we are not required to provide annuitants
with information relating to an employer's decision to exercise any
termination right.
FOR ALL SERIES CONTRACTS ISSUED IN NEW YORK - FIXED MATURITY OPTIONS
For contracts issued in New York, the withdrawal charge that applies to
withdrawals taken from amounts in the fixed maturity options will never exceed
6% and will be determined by applying the New York Declining Scale ("declining
scale"). If you withdraw amounts that have been transferred from one fixed
maturity option to another, we use the New York Alternative Scale
("alternative scale") if it produces a higher charge than the declining scale.
- ------------------------------------------------------------
DECLINING SCALE ALTERNATIVE SCALE
- ------------------------------------------------------------
Year of investment in Year of transfer within
fixed maturity option* fixed maturity option*
- ------------------------------------------------------------
Within year 1 6% Within year 1 5%
2 6% 2 4%
3 5% 3 3%
4 4% 4 2%
5 3% 5 1%
6 2% After year 5 0%
After year 6 0% Not to exceed 1%
times the number of
years remaining in the
fixed maturity option,
rounded to the higher
number of years. In
other words, if 4.3
years remain, it would
be a 5% charge.
- ------------------------------------------------------------
* Measured from the contract date anniversary prior to the date of the
contribution or transfer.
In the following example we compare the withdrawal charge that would apply to
a withdrawal from a series 400 NQ, Traditional IRA or QP IRA contract that has
an account value of $10,000; $8,000 from a contribution made three years ago
and $2,000 from positive investment performance.
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49 Charges and expenses
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o If you were to withdraw the total amount of the contribution within the
first six years after it was made the series 400 withdrawal charge that
generally applies would be $480 (6% of $8,000). However, if when you made
your contribution you allocated it to a fixed maturity option, the
withdrawal charge would be lower. According to the declining scale method
described above, the withdrawal charge would be limited to 5% of the
$8,000, or $400 in the third year.
o The withdrawal charge may be different if when you made your contribution
three years ago, you allocated it to a fixed maturity option and then in
the third year, you transfer the amounts that apply to such contribution
to a new fixed maturity option. In this example we assume that there is
one year remaining in the new fixed maturity option. Because you made a
transfer among the fixed maturity options, the alternative scale may now
apply. Based on this alternative scale, a contribution that is transferred
will be subject to a 5% withdrawal charge if you withdraw that
contribution in the same year that you make the transfer. However, the
withdrawal charge may not exceed 1% for each year remaining in the new
fixed maturity option. Since, in this example, the time remaining in the
new fixed maturity option is one year, the withdrawal charge under the
alternative scale would be limited to 1%. Because New York regulations
permit us to use the greater of the declining scale or the alternative
scale, the withdrawal charge would be 5%, or $400, based on the declining
scale.
o The withdrawal charge may not exceed the charge that would normally apply
under the contract. Use of a New York scale can only result in a lower
charge. If your contribution has been in the contract for more than six
years and therefore would not have a withdrawal charge associated with it,
no withdrawal charge would apply.
o If you take a withdrawal from an investment option other than the fixed
maturity options, the amount available for withdrawal without a withdrawal
charge is reduced. It will be reduced by the amount of the contribution in
the fixed maturity options to which no withdrawal charge applies.
o As of any date on which 50% or more of your account value is held in fixed
maturity options, the free withdrawal amount is zero.
For contracts issued in New York, you should consider that on the maturity
date of a fixed maturity option if we have not received your instructions for
allocation of your maturity value, we will transfer your maturity value to the
fixed maturity option scheduled to mature next. If we are not offering other
fixed maturity options, we will transfer your maturity value to the Alliance
Money Market option.
The potential for lower withdrawal charges for withdrawals from the fixed
maturity options and the potential for a lower free withdrawal amount than
those that would normally apply, should be taken into account when deciding
whether to allocate amounts to, or transfer amounts to or from, the fixed
maturity options.
We will deduct the annual administrative charge and the withdrawal charge from
the variable investment options and the guaranteed interest option as
discussed above. If the amounts in those options are insufficient to cover the
charges, we reserve the right to deduct the charges from the fixed maturity
options. Charges deducted from the fixed maturity options are considered
withdrawals and, as such, will result in a market value adjustment.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed
on us, such as premium taxes in your state. Generally, we deduct the charge
from the amount applied to provide an annuity payout option. The current tax
charge that might be imposed varies by state and ranges from 0% to 1% (1% in
Puerto Rico and 5% in the U.S. Virgin Islands).
VARIABLE ANNUITY ADMINISTRATIVE FEE
We deduct a fee of up to $350 from the amount to purchase a variable annuity
payout option.
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50 Charges and expenses
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CHARGES THAT EQ ADVISORS TRUST DEDUCTS
EQ Advisors Trust deducts charges for the following types of fees and
expenses:
o Investment advisory fees ranging from 0.25% to 1.15%.
o 12b-1 fees of 0.25% for Class IB shares.
o Operating expenses, such as trustees' fees, independent auditors' fees,
legal counsel fees, administrative service fees, custodian fees, and
liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of EQ Advisors Trust are purchased at their net asset value, these fees
and expenses are, in effect, passed on to the variable investment options and
are reflected in their unit values. For more information about these charges,
please refer to the prospectus for EQ Advisors Trust following this
prospectus.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge, or change the minimum
initial contribution requirements. We also may change the minimum death
benefit. Group arrangements include those in which a trustee or an employer,
for example, purchases contracts covering a group of individuals on a group
basis. Sponsored arrangements include those in which an employer allows us to
sell contracts to its employees or retirees on an individual basis.
Our costs for sales, administration, and mortality generally vary with the
size and stability of the group or sponsoring organization, among other
factors. We take all these factors into account when reducing charges. To
qualify for reduced charges, a group or sponsored arrangement must meet
certain requirements, such as requirements for size and number of years in
existence. Group or sponsored arrangements that have been set up solely to buy
contracts or that have been in existence less than six months will not qualify
for reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA, or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees, and others purchasing or making contracts available for purchase
under such programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that
results in savings of sales and administrative expenses, such as sales through
persons who are compensated by clients for recommending investments and who
receive no commission or reduced commissions in connection with the sale of
the contracts. We will not permit a reduction or elimination of charges where
it will be unfairly discriminatory.
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6
Payment of death benefits
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51 Payment of death benefits
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may
change your beneficiary at any time. The change will be effective on the date
the written request for the change is received in our processing office. We
are not responsible for any beneficiary change request that we do not receive.
We will send you a written confirmation when we receive your request.
Generally, the owner must be the beneficiary under EDC plan contracts and the
trustee must be the beneficiary under most Trusteed contracts.
We determine the amount of the death benefit as of the date we receive
satisfactory proof of the annuitant's death and any required instructions for
the method of payment. We describe the death benefit in "Contract features and
benefits" earlier in this prospectus.
On the date we determine the death benefit, your account value will be
deducted from the investment options. We will hold this amount in our general
account and credit it with interest at a rate not less than the rate required
by law. If you have transferred the value of another annuity contract that we
issue to your EQUI-VEST contract, the value of the other contract's minimum
death benefit calculated as of the time of the transfer will be included in
the total contributions for the purpose of calculating the minimum death
benefit.
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, if you
are the owner and annuitant and your spouse is the sole primary beneficiary
the contract can be continued as follows:
SUCCESSOR OWNER AND ANNUITANT. SERIES 300 AND 400 CONTRACTS ONLY. You can elect
to have your spouse continue the contract, as the owner/annuitant. In such a
case, no death benefit is payable until your surviving spouse's death. Neither
you nor your spouse can change this selection once it is made.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the
death benefit in a single sum. However, subject to any exceptions in the
contract, our rules and applicable federal income tax rules, the beneficiary
may elect to apply the death benefit to one or more annuity payout options we
offer at the time. See "Choosing your annuity payout options" under "Accessing
your money" earlier in this prospectus. Please note that if you are both the
contract owner and the annuitant, you may elect only a life annuity or an
annuity that does not extend beyond the life expectancy of the beneficiary.
Single sum payments generally are paid through the Equitable Life Access
Account(TM), an interest bearing account with check writing privileges. The
Equitable Life Access Account(TM) is part of Equitable Life's general account.
Beneficiaries have immediate access to the proceeds by writing a check on the
account. We pay interest from the date the single sum is deposited into the
Access Account until the account is closed.
<PAGE>
7
Tax information
----------------
52 Tax information
------------------------------------------------------------------------------
TAX INFORMATION AND ERISA MATTERS
SPECIAL RULES FOR TAX-FAVORED
RETIREMENT PROGRAMS
Employer-sponsored retirement plans can use annuity contracts to fund the plan
unless the plan specifically prohibits annuity contracts as a funding vehicle.
Federal income tax rules prescribe how a retirement plan qualifies for
tax-favored status and set requirements for plan features, including:
o participation and coverage;
o nondiscrimination;
o vesting and funding;
o limits on contributions, distributions, and benefits;
o withholding;
o reporting and disclosure; and
o penalties.
State income tax rules covering contributions to and distributions from
employer-sponsored retirement programs may differ from federal income tax
rules. Because you are buying a contract to fund a retirement plan that
already provides tax deferral, you should do so for the contract's features
and benefits other than tax deferral. The tax deferral of the contract does
not provide necessary or additional benefits.
This section of the prospectus discusses the current federal income tax rules
that generally apply to an annuity contract purchased to fund a tax-favored
retirement program for these special markets: qualified plan and TSA.
QUALIFIED PLANS
GENERAL; CONTRIBUTIONS
Any type of employer - corporation, partnership, self-employed individual,
governmental entity, non-profit organization - is eligible to establish a
qualified retirement plan under Section 401(a) of the Internal Revenue Code
for participating employees. Because there are numerous technical federal
income tax and Department of Labor "DOL" or "ERISA" rules covering
establishment and operation of a qualified plan, we do not cover them in this
prospectus. We also do not cover specific state law or other rules which may
govern plans. Employers should consult their tax advisors for information. It
is the employer's responsibility to figure out whether it is eligible to
establish a plan, what kinds of plan it may establish, and whether an annuity
contract may be used as a funding vehicle.
There are limits on employer and employee contributions to qualified plans.
Violation of contribution limits can result in plan disqualification and
penalties. The annual limits on contributions do not apply to rollover
contributions or trustee-to-trustee transfer contributions which may be
permitted under the plan.
The annual limit of contributions on behalf of an employee to all of the
defined contribution plans of an employer is the lesser of $30,000 or 25% of
compensation or earned income. When figuring out the contribution limit you
have to:
o include reallocated forfeitures and voluntary nondeductible employee
contributions;
o include compensation from the employer in the form of elective deferrals
and excludible contributions under Code Section 457 or "EDC" plans and
"cafeteria" plans. These are plans giving employees a choice between cash
and deferred benefits or specified excludible health and welfare benefits;
o disregard compensation or earned income of more than a specified amount.
For 2000, this amount is $170,000. This amount could be adjusted for cost
of living changes in future years.
Special limits on contributions apply to anyone who participates in more than
one qualified plan or who controls another trade or business.
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53 Tax information
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There is also an overall limit on the total amount of contributions and
benefits under all tax-favored retirement programs in which a person
participates.
"Salary reduction" or "elective deferral" contributions made under a 401(k)
plan or other cash or deferred arrangement are limited to $10,500 in 2000.
This amount may be adjusted for future cost of living changes. This limit
applies to the total of all elective deferrals under all tax-favored plans in
which the individual participates, from all employers, for example, also
including salary reduction contributions under TSAs.
Except for governmental plans that do not elect to be subject to ERISA,
qualified plans must not discriminate in favor of highly compensated
employees. Special "top heavy" rules apply to plans where more than 60% of the
contributions or benefits are allocated to defined highly compensated
employees known as "key employees." Plan administrators must test compliance
with both nondiscrimination and top heavy rules. 401(k) plans can adopt a
"SIMPLE 401(k)" feature which enables the plan to meet nondiscrimination
requirements without testing. The SIMPLE 401(k) feature requires the 401(k)
plan to meet specified contribution, vesting, and exclusive plan requirements,
similar to those discussed in this section of the prospectus under "SIMPLE
IRAs."
TAX-SHELTERED ANNUITY
ARRANGEMENTS (TSAS)
GENERAL; SPECIAL EMPLOYER RULES
An employer eligible to maintain a TSA plan (also referred to as a "403(b)"
plan, program, or arrangement) for its employees may make contributions to an
annuity contract purchased for the benefit of the employee. These
contributions, if properly made, will not be currently taxable compensation to
the employee. Moreover, the employee will not be taxed on the earnings in the
annuity contract until he/she takes distributions.
Two different types of employers are eligible to maintain 403(b) plans: public
schools and specified tax-exempt organizations under Section 501(c)(3) of the
Code.
CONTRIBUTIONS TO TSAS
There are four ways you can make contributions to this EQUI-VEST TSA contract:
o annual contributions made through the employer's payroll;
o a rollover from another TSA contract or arrangement that meets the
requirements of Section 403(b) of the Internal Revenue Code; or
o a rollover from a conduit IRA to which only prior TSA distributions were
rolled over;
o a full or partial direct transfer of assets ("direct transfer") from
another contract or arrangement that meets the requirements of Section
403(b) of the Internal Revenue Code by means of IRS Revenue Ruling 90-24.
ANNUAL CONTRIBUTIONS. Annual contributions to TSAs made through the employer's
payroll are limited. (Tax-free transfer or tax-deferred rollover contributions
from another 403(b) arrangement are not subject to these annual contribution
limits.) Commonly, some or all of the contributions made to the TSA are made
under a salary reduction agreement between the employee and the employer.
These contributions are called "salary reduction" or "elective deferral"
contributions. However, a TSA can also be wholly or partially funded through
nonelective employer contributions or after-tax employee contributions. To
determine the permissible annual contribution to the participant's TSA, a TSA
plan participant generally must calculate tentative annual contributions under
several formulas.
Generally, the elective deferral contribution limit to a TSA is the lowest of
the following: (1) the annual "maximum exclusion allowance" for the employee
in Section 403(b)(2) of the Code, (2) the annual limit on employer
contributions to defined contribution plans, and (3) the annual limit on all
elective deferrals.
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o The annual maximum exclusion allowance for the employee under Section
403(b)(2) of the Code is 20% of includable compensation times years of
service minus previous contributions to all qualified plans, TSAs and EDC
plans in which the participant participates with this employer.
o The annual limit on employer contributions to defined contribution plans is
the lesser of $30,000 or 25% of compensation.
o The annual limit on all salary reduction or elective deferral contributions
under all plans of any employer you participate in is generally limited to
$10,500 in 2000. Note, however, that the maximum salary reduction
contribution you can make if you participate in both a 403(b) arrangement
and an EDC plan is limited to the lower maximum allowed under Code Section
457. In 2000, this amount is $8,000. All amounts could be adjusted for
cost of living changes in future years.
Any excess deferral contributions which are not withdrawn by April 15th after
the year of the deferral may cause the contract to fail TSA rules.
Special provisions may allow "catch-up" contributions to compensate for
smaller contributions made in previous years.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS
You may make rollover contributions to your EQUI-VEST TSA contract from TSAs
under Section 403(b) of the Internal Revenue Code or from an IRA to which only
prior TSA distributions were rolled over. Generally, you may make a rollover
contribution to a TSA when you have a distributable event from an existing TSA
as a result of your:
o termination of employment with the employer who provided the TSA funds; or
o reaching age 59 1/2 even if you are still employed; or
o disability (special federal income tax definition).
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of the funds,
and
o the EQUI-VEST contract receiving the funds has provisions at least as
restrictive as the source contract.
Before you transfer funds to an EQUI-VEST TSA contract, you may have to obtain
your employer's authorization or demonstrate that you do not need employer
authorization. For example, the transferring TSA may be subject to Title I of
ERISA, if the employer makes matching contributions to salary reduction
contributions made by employees. In that case, the employer must continue to
approve distributions from the plan or contract.
We do not currently accept funds which were ever held in custodial accounts
under Section 403(b)(7) of the Code.
SPECIAL RULE FOR ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS AFTER AGE 70 1/2
Any rollover or direct transfer contribution to an EQUI-VEST TSA must be net
of the required minimum distribution for the tax year if:
o you are or will be at least age 70 1/2 in the current calendar year, and
o you have separated from service with the employer who provided the funds to
purchase the TSA you are transferring or rolling over to the EQUI-VEST
TSA.
This rule applies regardless of whether the source of funds
is a:
o rollover by check of the proceeds from another TSA; or
o direct rollover from another TSA; or
o direct transfer under Revenue Ruling 90-24 from
another TSA.
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Further, you must use the same elections regarding recalculation of your life
expectancy (and if applicable, your spouse's life expectancy), if you have
already begun to receive required minimum distributions from or with respect
to the TSA from which you are making your contribution to the EQUI-VEST TSA.
You must also elect or have elected a minimum distribution calculation method
requiring recalculation of your life expectancy (and if applicable, your
spouse's life expectancy) if you elect an annuity payout for the funds in this
contract subsequent to this year.
DISTRIBUTIONS FROM QUALIFIED PLANS AND TSAS
WITHDRAWAL RESTRICTIONS. You may not be able to to withdraw or take payment
from all or part of your TSA or 401(k) qualified plan unless you reach age 59
1/2, die, become disabled (special federal income tax definition), separate
from service with the employer who provided the funds or suffer financial
hardship. These restrictions apply to salary reduction or elective deferral
contributions and earnings on those contributions. Hardship withdrawals are
limited to the amount of your salary reduction contributions without earnings.
These restrictions do not apply to your account balance attributable to salary
reduction contributions to the TSA contract and earnings on December 31, 1988
or to your account balance attributable to employer contributions. To take
advantage of this grandfathering you must properly notify us in writing at our
processing office of your December 31, 1988 account balance if you have
qualifying amounts directly transferred to your EQUI-VEST TSA contract from
another TSA in a Revenue Ruling 90-24 transfer.
TAX TREATMENT OF DISTRIBUTIONS FROM QUALIFIED PLANS AND TSAS. Amounts held
under qualified plans and TSAs are generally not subject to federal income tax
until benefits are distributed.
Distributions include withdrawals and annuity payments. Death benefits paid to
a beneficiary are also taxable distributions. Amounts distributed from
qualified plans and TSAs are includable in gross income as ordinary income,
not capital gain. (Under limited circumstances specified in federal income tax
rules, qualified plan participants, not TSA participants, are eligible for
capital gains or income averaging treatment on distributions.) Distributions
from qualified plans and TSAs may be subject to 20% federal income tax
withholding. See "Federal and state income tax withholding and information
reporting" below. In addition, qualified plan and TSA distributions may be
subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your
qualified plan or TSA contract, which will be recovered tax-free. Since we do
not track your investment in the contract, if any, it is your responsibility
to determine how much of the distribution is taxable.
DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount
received in excess of the investment in the contract is taxable. We will
report the total amount of the distribution. The amount of any partial
distribution from a qualified plan or TSA prior to the annuity starting date
is generally taxable, except to the extent that the distribution is treated as
a withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of after-tax contributions and earnings on those
contributions.
ANNUITY PAYMENTS. If you elect an annuity payout option, the nontaxable
portion of each payment is calculated by dividing your investment in the
contract by an expected return determined under an IRS table prescribed for
qualified annuities. The balance of each payment is fully taxable. The full
amount of the payments received after your investment in the contract is
recovered is fully taxable. If you (and your beneficiary under a joint and
survivor annuity) die before recovering the full investment in the contract, a
deduction is allowed on your (or your beneficiary's) final tax return.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Death benefit distributions from a qualified plan or TSA generally receive the
same tax treatment as distributions during your lifetime. In some instances,
distributions from a
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qualified plan or TSA made to your surviving spouse may be rolled over to a
traditional IRA.
LOANS FROM QUALIFIED PLANS AND TSAS
If the plan permits, loans are available from a qualfied plan or TSA plan.
Loans are subject to federal income tax limits and may also be subject to the
limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA.
Loans are generally not treated as a taxable distribution. If the amount of
the loan exceeds permissible limits under federal income tax rules when made,
the amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when
due will be treated as a taxable distribution. Under Proposed Treasury
Regulations the entire unpaid balance of the loan is includable in income in
the year of the default. In addition, the 10% early distribution penalty tax
may apply. The amount of the unpaid loan balance is reported to the IRS on
Form 1099-R as a distribution. Finally, unpaid loans may become taxable when
the individual separates from service.
o The amount of a loan to a participant, when combined with all other loans
to the participant from all qualified plans of the employer, cannot exceed
the lesser of (1) the greater of $10,000 or 50% of the participant's
nonforfeitable accrued benefits, (2) $50,000 reduced by the excess
(if any) of the highest outstanding loan balance over the
previous twelve months over the outstanding loan balance of plan loans on
the date the loan was made.
o In general, the term of the loan cannot exceed five years unless the loan
is used to acquire the participant's primary residence. EQUI-VEST TSA
contracts have a term limit of 10 years for loans used to acquire the
participant's primary residence.
o All principal and interest must be amortized in substantially level
payments over the term of the loan, with payments being made at least
quarterly.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over any "eligible rollover distribution" from a qualified plan
or TSA into another eligible retirement plan, either as a direct rollover or
as a rollover you do yourself within 60 days of your receiving the
distribution. To the extent rolled over, it remains tax-deferred.
You may roll over a distribution from a qualified plan or TSA to another
qualified plan or TSA or to a traditional IRA. A spousal beneficiary may roll
over death benefits only to a traditional IRA. You cannot roll over funds from
a TSA to a qualified plan or from a qualified plan to a TSA.
The taxable portion of most distributions will be eligible for rollover.
However, federal income tax rules exclude certain distributions from rollover
treatment including (1) periodic payments for life or for a period of 10 years
or more, (2) hardship withdrawals, and (3) any required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
DISTRIBUTION REQUIREMENTS
Qualified plans and TSAs are subject to required minimum distribution rules.
See "Required minimum distributions."
SPOUSAL CONSENT RULES
If ERISA rules apply to your qualified plan or TSA you will need to get
spousal consent for loans, withdrawals, or other distributions if you are
married when you request a withdrawal type transaction under the TSA contract.
In addition, unless you elect otherwise with the written consent of your
spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for
the life of the spouse in an amount not less than one-half of the amount
payable to the annuitant during his or her lifetime. In addition, if you are
married, the beneficiary must be your spouse, unless your spouse consents in
writing to the designation of another beneficiary.
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If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the employer's plan and the contract.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a qualified plan or TSA before you reach age 59 1/2. This
is in addition to any income tax. There are exceptions to the extra penalty
tax. No penalty tax applies to pre-age 59 1/2 distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income
tax definition); or
o if you are separated from service, any form of payout after you are age 55;
or
o only if you are separated from service, a payout in the form of
substantially equal periodic payments made at least annually over your
life (or your life expectancy), or over the joint lives of you and your
beneficiary (or your joint life expectancy) using an IRS-approved
distribution method.
SIMPLIFIED EMPLOYEE PENSIONS (SEPS)
An employer can establish a SEP plan for its employees and can make
contributions to a contract for each eligible employee. A SEP IRA contract is
a form of traditional IRA contract, owned by the employee-annuitant and most
of the rules which apply to traditional IRAs apply. See "Traditional
Individual Retirement Annuities (Traditional IRAs)" later in this prospectus.
A major difference is the amount of permissible contributions. Rules similar
to those discussed above under "Qualified Plans General; Contributions" apply.
In 2000 an employer can annually contribute an amount for an employee up to
the lesser of $25,500 or 15% of the employee's compensation. This amount may
be adjusted for cost of living changes in future years. In figuring out
compensation you exclude the employer's contribution to the SEP. Under our
current practice, regular traditional IRA contributions by the employee may
not be made under a SEP IRA contract and are put into a separate traditional
IRA contract.
Salary reduction SEP (SARSEP) plans may no longer be established for years
beginning after December 31, 1996. However, employers who had established
SARSEP plans prior to 1997 can continue to make contributions on behalf of
participating employees for 1997 and later years. SARSEP plans are subject to
a number of special rules, some of which are discussed in the SAI.
SEP plans are available under EQUI-VEST Series 300 in most states. EQUI-VEST
SEP Series 200 are available in states where the 300 Series is not available.
SIMPLE IRAS (SAVINGS INCENTIVE MATCH PLAN)
An eligible employer may establish a "SIMPLE IRA" plan to make contributions
to special individual retirement accounts or individual retirement annuities
for its employees ("SIMPLE IRAs"). The IRS has issued various forms which may
be used by employers to set up a SIMPLE IRA plan. Currently, we are accepting
only those SIMPLE IRA plans using IRS Form 5304-SIMPLE. Use of Form
5304-SIMPLE requires that the employer permit the employee to select a SIMPLE
IRA provider.
The employer cannot maintain any other qualified plan, SEP plan or TSA
arrangement if it makes contributions under a SIMPLE IRA plan. (Eligible
employers may maintain EDC plans.)
Any type of employer - corporation, partnership, self-employed person,
government or tax-exempt entity - is eligible to establish a SIMPLE IRA plan
if it meets the requirements about number of employees and compensation of
those employees.
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It is the responsibility of the employer to determine whether it is eligible
to establish a SIMPLE IRA plan and whether such plan is appropriate.
The employer must have no more than 100 employees who earned at least $5,000
in compensation from the employer in the prior calendar year.
An employer establishing a SIMPLE IRA plan should consult its tax adviser
concerning the various technical rules applicable to establishing and
maintaining SIMPLE IRA plans. For example, the definition of employee's
"compensation" may vary depending on whether it is used in the context of
employer eligibility, employee participation, and employee or employer
contributions.
Participation must be open to all employees who received at least $5,000 in
compensation from the employer in any two preceding years (they do not have to
be consecutive years) and who are reasonably expected to receive at least
$5,000 in compensation during the year. (Certain collective bargaining unit
and alien employees may be excluded.)
The only kinds of contributions which may be made to a SIMPLE IRA are (i)
contributions under a salary reduction agreement entered into between the
employer and the participating employee and (ii) required employer
contributions (employer matching contributions or employer nonelective
contributions). (Direct transfer and rollover contributions from other SIMPLE
IRAs, but not traditional IRAs or Roth IRAs, may also be made.) Salary
reduction contributions can be any percentage of compensation (or a specific
dollar amount, if the employer's plan permits) but are limited to $6,000 in
2000. The $6,000 elective deferral limit may be indexed for cost of living
adjustments in future years.
Generally, the employer is required to make matching contributions on behalf
of each eligible employee in an amount equal to the salary reduction
contributions, up to 3% of the employee's compensation. In certain
circumstances, an employer may elect to make required employer contributions
on an alternate basis. Employer matching contributions to a SIMPLE IRA for
self-employed individuals are treated the same as matching contributions for
employees. (They are not subject to the elective deferral limits.)
TAX TREATMENT OF SIMPLE IRAS
Unless specifically otherwise mentioned, for example, regarding differences in
funding and potential penalty tax on distributions, the rules which apply to
traditional IRAs also apply to SIMPLE IRAs. See "Traditional Individual
Retirement Annuities (Traditional IRAs)" later in this prospectus.
Amounts contributed to SIMPLE IRAs are not currently taxable to employees.
Only the employer can deduct SIMPLE IRA contributions, not the employee. An
employee eligible to participate in a SIMPLE IRA is treated as an active
participant in an employer plan and thus may not be able to deduct (fully)
regular contributions to his/her own traditional IRA.
As with traditional IRAs in general, contributions and earnings accumulate tax
deferred until withdrawn and are then fully taxable. There are no withdrawal
restrictions applicable to SIMPLE IRAs. However, because of the level of
employer involvement, SIMPLE IRA plans are subject to ERISA. See the rules
under "ERISA Matters" below.
Amounts withdrawn from a SIMPLE IRA can always be rolled over to another
SIMPLE IRA and, within limits, to a traditional IRA or Roth IRA. No rollovers
from a SIMPLE IRA to a traditional IRA or a Roth IRA are permitted for
individuals under age 59 1/2 who have not participated in the employer's
SIMPLE IRA plan for two full years. Also, for such individuals, any amounts
withdrawn from a SIMPLE IRA are not only fully taxable but are also subject to
a 25% (not 10%) additional federal income tax penalty. (The exceptions for
death, disability, etc. apply.)
SIMPLE IRA plans are available under EQUI-VEST Series 400 in most states.
EQUI-VEST SIMPLE IRA Series 300 and Series 200 are available in states where
Series 400 is not available.
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PUBLIC AND TAX-EXEMPT ORGANIZATION EMPLOYEE DEFERRED COMPENSATION PLANS (EDC
PLANS)
SPECIAL EMPLOYER AND OWNERSHIP RULES. Employers eligible to maintain EDC plans
are governmental entities such as states, municipalities, and state agencies
(governmental employer) or tax-exempt entities (tax-exempt employer).
Participation in an EDC plan of a tax-exempt employer is limited to a select
group of management or highly compensated employees because of ERISA rules
that do not apply to governmental employer plans.
An employer can fund its EDC plan in whole or in part with annuity contracts
purchased for participating employees and their beneficiaries. These employees
do not have to include in income the employer's contributions to purchase the
EDC contracts or any earnings until they receive or are entitled to receive
funds from the EDC plan. The EDC plan funds are subject to the claims of the
employer's general creditors in an EDC plan maintained by a tax-exempt
employer. In an EDC plan maintained by a governmental employer, the plan's
assets must be held in trust for the exclusive benefit of employees. An
annuity contract can be a trust equivalent if the contract includes the trust
rules. Regardless of contract ownership, the EDC plan may permit the employee
to choose among various investment options.
CONTRIBUTION LIMITS. Although an EDC plan is not a qualified plan, a number of
federal income tax rules for qualified plans apply, such as limits on
contributions. Generally, the maximum contribution amount that can be excluded
from gross income in any tax year under an EDC plan is 33 1/3% of the
employee's "includable compensation," up to a specified maximum. In 2000,
the maximum contribution amount is $8,000. This amount could be adjusted for
cost of living changes in future years. Special rules may permit "catch-up"
contributions during the three years preceding normal retirement age under the
EDC plan.
WITHDRAWAL LIMITS. In general, no amounts may be withdrawn from an EDC plan
prior to the calendar year in which the employee attains age 70 1/2, separates
from service with the employer or in the event of an unforeseen emergency.
Income or gains on contributions under an EDC plan are subject to federal
income tax when amounts are distributed or made available to the employee or
beneficiary. Small amounts (up to $5000) may be taken out by the employee or
forced out by the plan under certain circumstances, even though the employee
may still be working and amounts would not otherwise be made available.
DISTRIBUTION REQUIREMENTS. IRS rules require that distributions from an EDC
must be in substantially non-increasing amounts no less frequently than
annually. EDC plans are subject to minimum distribution rules similar to those
that apply to qualified plans. See "Required minimum distributions" in this
section. That is, distributions from EDC plans generally must start no later
than April 1st of the calendar year following the calendar year in which the
employee attains age 70 1/2 or retires from service with the employer
maintaining the EDC plan, whichever is later. Failure to make required
distributions may cause the disqualification of the EDC plan. Disqualification
may result in current taxation of EDC plan benefits. In addition, a 50%
penalty tax is imposed on the difference between the required distribution
amount and the amount actually distributed, if any. It is the plan
administrator's responsibility to see that minimum distributions from an EDC
plan are made.
If the EDC plan provides, a deceased employee's beneficiary may be able to
elect to receive death benefits in installments instead of a lump sum, and
the payments will be taxed as they are received. However, the death
benefits must be received within 15 years of the date of the deceased
employee's death (or within the period of the life expectancy of the
surviving spouse if the spouse is the designated beneficiary).
TAX TREATMENT OF DISTRIBUTIONS. Distributions from an EDC plan may not be
rolled over or transferred to any kind of IRA.
Distributions to an EDC plan participant are characterized as "wages" for
income tax reporting and withholding purposes.
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No election out of withholding is possible. See "Federal and state income tax
withholding and information reporting" in this section. Withholding on wages
is the employer's responsibility. Distributions from an EDC plan are not
subject to FICA tax, if FICA tax was withheld by the employer when wages were
deferred. In certain circumstances, receipt of payments from an EDC plan may
result in a reduction of an employee's Social Security benefits.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS)
This part of the prospectus contains the information that the IRS requires you
to have before you purchase an IRA, and covers some of the special tax rules
that apply to IRAs.
Your ownership interest in the IRA cannot be forfeited. You or your
beneficiaries who survive you are the only ones who can receive the IRA's
benefits or payments.
If you own multiple IRAs, including IRAs funded by or through your employer,
you may be required to combine IRA values or contributions for tax purposes.
For further information about individual retirement arrangements, you can read
Internal Revenue Service Publication 590 ("Individual Retirement Arrangements
(IRAs)"). This publication is usually updated annually, and can be obtained
from any IRS district office or the IRS Web site (www.irs.gov).
The EQUI-VEST SEP and SIMPLE IRA contracts have been approved by the IRS as to
form for use as a traditional IRA. This IRS approval is a determination only
as to the form of the annuity. It does not represent a determination of the
merits of the annuity as an investment. The IRS approval does not address
every feature possibly available under the EQUI-VEST SEP, SARSEP and SIMPLE
IRA contracts.
CANCELLATION
You can cancel an EQUI-VEST IRA contract by following the directions under
"Your right to cancel within a certain number of days" earlier in the
prospectus. If you cancel a contract, we may have to withhold tax, and we must
report the transaction to the IRS. A contract cancellation could have an
unfavorable tax impact.
CONTRIBUTIONS
As SEP, SARSEP-IRA and SIMPLE IRA contracts are employer-funded traditional
IRAs, the employee does not make regular contributions to the contract other
than through the employer. However, an employee can make rollover or transfer
contributions to SEP-IRA, SARSEP-IRA, and in limited circumstances, to
SIMPLE-IRA contracts.
ROLLOVERS AND TRANSFERS
Rollover contributions may be made to a traditional IRA from these sources:
o qualified plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial
accounts); and
o other traditional IRAs.
Any amount contributed to a traditional IRA after you reach age 70 1/2 must be
net of your required minimum distribution for the year in which the rollover
or direct transfer contribution is made.
RECHARACTERIZATION
Employer-funded amounts that have been contributed as traditional IRA funds
may subsequently be treated as Roth IRA funds. Special federal income tax
rules allow you to change your mind again and have employer-funded amounts
that are subsequently treated as Roth IRA funds, once again treated as
traditional IRA funds. You do this by using the forms we prescribe. This is
referred to as having "recharacterized" your contribution.
ROLLOVERS FROM QUALIFIED PLANS OR TSAS
There are two ways to do rollovers:
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o Do it yourself
You actually receive a distribution that can be rolled over and you roll
it over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your qualified plan or TSA will be net of 20%
mandatory federal income tax withholding. If you want, you can replace the
withheld funds yourself and roll over the full amount.
o Direct rollover
You tell your qualified plan trustee or TSA issuer/custodian/fiduciary to
send the eligible rollover distribution directly to your traditional IRA
issuer. Direct rollovers are not subject to mandatory federal income tax
withholding.
All distributions from a TSA or qualified plan are eligible
rollover distributions, unless the distribution is:
o only after-tax contributions you made to the plan; or
o "required minimum distributions" after age 70 1/2 or separation from
service; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of
you and your designated beneficiary; or
o a hardship withdrawal; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o corrective distributions which fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
o a qualified domestic relations order distribution to a beneficiary who is
not your current spouse or former spouse.
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
You may roll over amounts from one traditional IRA to one or more of your
other traditional IRAs if you complete the transaction within 60 days after
you receive the funds. You may make such a rollover only once in every
12-month period for the same funds. Trustee-to-trustee or
custodian-to-custodian direct transfers are not rollover transactions. You can
make these more frequently than once in every 12-month period.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited traditional IRA to one or more other
traditional IRAs. Also, in some cases, traditional IRAs can be transferred on
a tax-free basis between spouses or former spouses as a result of a court
ordered divorce or separation decree.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are examples
of excess contributions to IRAs:
o regular contributions to a traditional IRA made after you reach age 70 1/2;
or
o rollover contributions of amounts which are not eligible to be rolled over,
for example, after-tax contributions to a qualified plan or minimum
distributions required to be made after age 70 1/2.
You can avoid the excise tax by withdrawing an excess contribution before the
due date (including extensions) for filing your federal income tax return for
the year. You do not have to include the excess contribution withdrawn as part
of your income. It is also not subject to the 10% additional penalty tax on
early distributions discussed below under "Early distribution penalty tax."
You do have to withdraw any earnings that are attributed to the excess
contribution. The withdrawn earnings would be included in your gross income
and could be subject to the 10% penalty tax.
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Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from a qualified retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS
You can withdraw any or all of your funds from a traditional IRA at any time.
You do not need to wait for a special event like retirement.
TAXATION OF PAYMENTS
Earnings in traditional IRAs are not subject to federal income tax until you
or your beneficiary receive them. Taxable payments or distributions include
withdrawals from your contract, surrender of your contract and annuity
payments from your contract. Death benefits are also taxable. The conversion
of amounts from a SEP IRA, SARSEP IRA or SIMPLE IRA (after two plan
participant years) to a Roth IRA is taxable. Generally, the total amount of
any distribution from a traditional IRA must be included in your gross income
as ordinary income.
In addition, a distribution is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" above; or
o the entire amount received is rolled over to another traditional IRA (see
"Rollovers and transfers" above).
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available to certain
distributions from qualified plans under very limited circumstances.
REQUIRED MINIMUM DISTRIBUTIONS
Traditional IRAs are subject to required minimum distribution rules described
below in "Required minimum distributions."
SUCCESSOR ANNUITANT AND OWNER
If your spouse is the sole primary beneficiary and elects to become the
successor annuitant and owner, no death benefit is payable until your
surviving spouse's death.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA
or use it as collateral, its tax-favored status will be lost as of the first
day of the tax year in which this prohibited event occurs. If this happens,
you must include the value of the traditional IRA in your federal gross
income. Also, the early distribution penalty tax of 10% will apply if you have
not reached age 59 1/2 before the first day of that tax year.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59 1/2. The
extra penalty tax does not apply to pre-age 59 1/2 distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income
tax definition); or
o to pay medical insurance premiums for unemployed individuals (special
federal income tax definition); or
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o to pay certain first-time home buyer expenses (special federal income tax
definition); or
o to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy), or over the joint lives of you
and your beneficiary (or your joint life expectancy) using an IRS-approved
distribution method.
ILLUSTRATION OF GUARANTEED INTEREST RATES
In the following two tables, we provide information that the IRS requires us
to furnish to prospective IRA contract owners. In the tables we illustrate the
3% minimum guaranteed interest rate for contributions we assume are allocated
entirely to the guaranteed interest option under series 300 and 400 contracts.
In Table I we assume a $1,000 contribution made annually on the contract date
and on each anniversary after that. We assume no withdrawals or transfers were
made under the contract. In Table II we assume a single initial contribution
of $1,000, and no additional contributions. We also assume no withdrawals or
transfers. The 3% guaranteed interest rate is in the contract.
The values shown assume the withdrawal charge applies. These values reflect
the effect of the annual administrative charge deducted at the end of each
contract year in which the account value is less than $20,000.
To find the appropriate value for the end of the contract year at any
particular age, you subtract the age (nearest birthday) at issue of the
contract from the current age and find the corresponding year in the table.
Years that correspond to a current age over 70, should be ignored.
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You should consider the information shown in the tables in light of your
present age. Also, with respect to Table I, you should consider your ability to
contribute $1,000 annually. Any change in the amounts contributed annually in
Table I, or in the amount of the single contribution in Table II would, of
course, change the results shown.
TABLE I
ACCOUNT VALUES AND
CASH VALUES
(assuming $1,000 contributions made annually
at the beginning of the contract year)
3% MINIMUM GUARANTEE
- -----------------------------------------------
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- -----------------------------------------------
1 $ 1,009.40 $ 954.89
- -----------------------------------------------
2 $ 2,039.68 $ 1,929.54
- -----------------------------------------------
3 $ 3,100.87 $ 2,933.43
- -----------------------------------------------
4 $ 4,193.90 $ 3,967.43
- -----------------------------------------------
5 $ 5,319.72 $ 5,032.45
- -----------------------------------------------
6 $ 6,479.31 $ 6,129.42
- -----------------------------------------------
7 $ 7,673.69 $ 7,313.69
- -----------------------------------------------
8 $ 8,903.90 $ 8,543.90
- -----------------------------------------------
9 $ 10,171.01 $ 9,811.01
- -----------------------------------------------
10 $ 11,476.14 $ 11,116.14
- -----------------------------------------------
11 $ 12,820.43 $ 12,460.43
- -----------------------------------------------
12 $ 14,205.04 $ 13,845.04
- -----------------------------------------------
13 $ 15,631.19 $ 15,271.19
- -----------------------------------------------
14 $ 17,100.13 $ 16,740.13
- -----------------------------------------------
15 $ 18,613.13 $ 18,253.13
- -----------------------------------------------
16 $ 20,201.53 $ 19,841.53
- -----------------------------------------------
17 $ 21,837.57 $ 21,477.57
- -----------------------------------------------
18 $ 23,522.70 $ 23,162.70
- -----------------------------------------------
19 $ 25,258.38 $ 24,898.38
- -----------------------------------------------
20 $ 27,046.13 $ 26,686.13
- -----------------------------------------------
21 $ 28,887.52 $ 28,527.52
- -----------------------------------------------
22 $ 30,784.14 $ 30,424.14
- -----------------------------------------------
23 $ 32,737.67 $ 32,377.67
- -----------------------------------------------
24 $ 34,749.80 $ 34,389.80
- -----------------------------------------------
25 $ 36,822.29 $ 36,462.29
- -----------------------------------------------
3% MINIMUM GUARANTEE
- -----------------------------------------------
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- -----------------------------------------------
26 $ 38,956.96 $ 38,596.96
- -----------------------------------------------
27 $ 41,155.67 $ 40,795.67
- -----------------------------------------------
28 $ 43,420.34 $ 43,060.34
- -----------------------------------------------
29 $ 45,752.95 $ 45,392.95
- -----------------------------------------------
30 $ 48,155.53 $ 47,795.53
- -----------------------------------------------
31 $ 50,630.20 $ 50,270.20
- -----------------------------------------------
32 $ 53,179.11 $ 52,819.11
- -----------------------------------------------
33 $ 55,804.48 $ 55,444.48
- -----------------------------------------------
34 $ 58,508.61 $ 58,148.61
- -----------------------------------------------
35 $ 61,293.87 $ 60,933.87
- -----------------------------------------------
36 $ 64,162.69 $ 63,802.69
- -----------------------------------------------
37 $ 67,117.57 $ 66,757.57
- -----------------------------------------------
38 $ 70,161.10 $ 69,801.10
- -----------------------------------------------
39 $ 73,295.93 $ 72,935.93
- -----------------------------------------------
40 $ 76,524.81 $ 76,164.81
- -----------------------------------------------
41 $ 79,850.55 $ 79,490.55
- -----------------------------------------------
42 $ 83,276.07 $ 82,916.07
- -----------------------------------------------
43 $ 86,804.35 $ 86,444.35
- -----------------------------------------------
44 $ 90,438.48 $ 90,078.48
- -----------------------------------------------
45 $ 94,181.64 $ 93,821.64
- -----------------------------------------------
46 $ 98,037.08 $ 97,677.08
- -----------------------------------------------
47 $ 102,008.20 $ 101,648.20
- -----------------------------------------------
48 $ 106,098.44 $ 105,738.44
- -----------------------------------------------
49 $ 110,311.40 $ 109,951.40
- -----------------------------------------------
50 $ 114,650.74 $ 114,290.74
- -----------------------------------------------
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TABLE II
ACCOUNT VALUES AND
CASH VALUES
(assuming a single contribution of $1,000 and
no further contribution)
3% MINIMUM GUARANTEE
- -----------------------------------------------
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- -----------------------------------------------
1 $ 1,009.40 $ 954.89
- -----------------------------------------------
2 $ 1,018.89 $ 963.87
- -----------------------------------------------
3 $ 1,019.46 $ 964.40
- -----------------------------------------------
4 $ 1,020.04 $ 964.96
- -----------------------------------------------
5 $ 1,020.64 $ 965.53
- -----------------------------------------------
6 $ 1,021.26 $ 966.11
- -----------------------------------------------
7 $ 1,021.90 $ 1,021.90
- -----------------------------------------------
8 $ 1,022.55 $ 1,022.55
- -----------------------------------------------
9 $ 1,023.23 $ 1,023.23
- -----------------------------------------------
10 $ 1,023.93 $ 1,023.93
- -----------------------------------------------
11 $ 1,024.65 $ 1,024.65
- -----------------------------------------------
12 $ 1,025.38 $ 1,025.38
- -----------------------------------------------
13 $ 1,026.15 $ 1,026.15
- -----------------------------------------------
14 $ 1,026.93 $ 1,026.93
- -----------------------------------------------
15 $ 1,027.74 $ 1,027.74
- -----------------------------------------------
16 $ 1,028.57 $ 1,028.57
- -----------------------------------------------
17 $ 1,029.43 $ 1,029.43
- -----------------------------------------------
18 $ 1,030.31 $ 1,030.31
- -----------------------------------------------
19 $ 1,031.22 $ 1,031.22
- -----------------------------------------------
20 $ 1,032.16 $ 1,032.16
- -----------------------------------------------
21 $ 1,033.12 $ 1,033.12
- -----------------------------------------------
22 $ 1,034.11 $ 1,034.11
- -----------------------------------------------
23 $ 1,035.14 $ 1,035.14
- -----------------------------------------------
24 $ 1,036.19 $ 1,036.19
- -----------------------------------------------
25 $ 1,037.28 $ 1,037.28
- -----------------------------------------------
3% MINIMUM GUARANTEE
- -----------------------------------------------
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- -----------------------------------------------
26 $ 1,038.40 $ 1,038.40
- -----------------------------------------------
27 $ 1,039.55 $ 1,039.55
- -----------------------------------------------
28 $ 1,040.73 $ 1,040.73
- -----------------------------------------------
29 $ 1,041.96 $ 1,041.96
- -----------------------------------------------
30 $ 1,043.22 $ 1,043.22
- -----------------------------------------------
31 $ 1,044.51 $ 1,044.51
- -----------------------------------------------
32 $ 1,045.85 $ 1,045.85
- -----------------------------------------------
33 $ 1,047.22 $ 1,047.22
- -----------------------------------------------
34 $ 1,048.64 $ 1,048.64
- -----------------------------------------------
35 $ 1,050.10 $ 1,050.10
- -----------------------------------------------
36 $ 1,051.60 $ 1,051.60
- -----------------------------------------------
37 $ 1,053.15 $ 1,053.15
- -----------------------------------------------
38 $ 1,054.74 $ 1,054.74
- -----------------------------------------------
39 $ 1,056.39 $ 1,056.39
- -----------------------------------------------
40 $ 1,058.08 $ 1,058.08
- -----------------------------------------------
41 $ 1,059.82 $ 1,059.82
- -----------------------------------------------
42 $ 1,061.61 $ 1,061.61
- -----------------------------------------------
43 $ 1,063.46 $ 1,063.46
- -----------------------------------------------
44 $ 1,065.37 $ 1,065.37
- -----------------------------------------------
45 $ 1,067.33 $ 1,067.33
- -----------------------------------------------
46 $ 1,069.35 $ 1,069.35
- -----------------------------------------------
47 $ 1,071.43 $ 1,071.43
- -----------------------------------------------
48 $ 1,073.57 $ 1,073.57
- -----------------------------------------------
49 $ 1,075.78 $ 1,075.78
- -----------------------------------------------
50 $ 1,078.05 $ 1,078.05
- -----------------------------------------------
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REQUIRED MINIMUM DISTRIBUTIONS
If you are a participant in a qualified retirement plan, EDC plan, or own a
TSA or traditional IRA, including SEP, SARSEP or SIMPLE IRA, the required
minimum distribution rules force you to start calculating and taking annual
distributions from these tax-favored retirement plans and arrangements by a
specified date. The beginning date depends on the type of plan or arrangement,
and your age and retirement status. The distribution requirements are designed
to use up your interest in the plan over your life expectancy. Whether the
correct amount has been distributed is calculated on a year-by-year basis;
there are no provisions to allow amounts taken in excess of the required
amount to be carried back to other years.
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS - WHEN YOU HAVE TO TAKE THE FIRST
REQUIRED MINIMUM DISTRIBUTION
You must start taking annual distributions from your traditional IRAs
beginning at age 70 1/2.
Generally, you must take the first required minimum distribution for the
calendar year in which you turn age 70 1/2. Qualified plan, TSA and EDC
participants may be able to delay the start of required minimum distributions
for all or part of your account balance until after age 70 1/2, as follows:
o For qualified plan, TSA and EDC participants who have not retired from
service with the employer who provided the funds for this qualified plan,
TSA, or EDC contract by the calendar year the participant turns age
70 1/2, the required beginning date for minimum distributions is extended to
April 1st following the calendar year of retirement. Note that this rule
does not apply to qualified plan participants who are 5% owners.
o TSA plan participants may also delay the start of required minimum
distributions to age 75 of the portion of their account value attributable
to their December 31, 1986 TSA account balance, even if retired at age
70 1/2.
The first required minimum distribution is for the calendar year in which you
turn age 70 1/2, or the year you retire, if you are eligible for the delayed
start rule. You have the choice to take this first required minimum
distribution during the calendar year you turn 70 1/2 or retire, or to delay
taking it until the first three-month period in the next calendar year
(January 1 - April 1). Distributions must start no later than your "Required
Beginning Date," which is April 1st of the calendar year after the calendar
year in which you turn age 70 1/2 or retire if you are eligible for the
delayed start rule. If you choose to delay taking the first annual minimum
distribution, then you will have to take two minimum distributions in that
year - the delayed one for the first year and the one actually for that year.
Once minimum distributions begin, they must be made at some time each year.
HOW YOU CALCULATE REQUIRED MINIMUM DISTRIBUTIONS
There are two approaches to taking required minimum distributions -
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an "account-based" method, you divide the
value of your qualified plan, TSA, EDC, or traditional IRA as of December 31st
of the past calendar year by a life expectancy factor from IRS tables. This
account balance gives you the required minimum distribution amount for that
particular plan or arrangement for that year. The required minimum
distribution amount will vary each year as the account value and your life
expectancy factors change.
You have a choice of life expectancy factors, depending on whether you choose
a method based only on your life expectancy, or the joint life expectancies of
you and another individual. You can decide to "recalculate" your life
expectancy every year by using your current life expectancy factor. You can
decide instead to use the "term certain" method, where you reduce your life
expectancy by one every year after the initial year. If your spouse is your
designated beneficiary for the purpose of calculating annual account-based
required minimum distributions, you can also annually "recalculate" your
spouse's life expectancy if you want. If you choose someone who is not your
spouse as your designated beneficiary for the purpose of calculating annual
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account-based required minimum distributions, you have to use the "term
certain" method of calculating that person's life expectancy. If you pick a
nonspouse designated beneficiary, you may also have to do another special
calculation.
You can later apply your traditional IRA or TSA funds to a life annuity-based
payout. You can only do this if you already chose to recalculate your life
expectancy annually (and your spouse's life expectancy if you select a spousal
joint annuity). For example, if you anticipate selecting a form of life
annuity payout after you are age 70 1/2, you must have elected to recalculate
life expectancies.
If the qualified plan or EDC plan permits, you may also be able to select an
account based withdrawal method followed by a life annuity payout if you elect
to recalculate life expectancies.
ANNUITY-BASED METHOD. If you choose an annuity-based method you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary, or for a
period certain not extending beyond applicable life expectancies.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS?
No. If you want, you can choose a different method and a different beneficiary
for each of your traditional IRAs and other retirement plans. For example, you
can choose an annuity payout from one IRA, a different annuity payout from a
qualified plan, and an account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED
ON THE METHOD YOU CHOOSE?
No, unless you affirmatively select an annuity payout option or an
account-based withdrawal option such as our minimum distribution withdrawal
option. Because the options we offer do not cover every option permitted under
federal income tax rules, you may prefer to do your own required minimum
distribution calculations for one or more of your traditional IRAs.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR?
The required minimum distribution amount for your traditional IRAs is
calculated on a year-by-year basis. There are no carry-back or carry-forward
provisions. Also, you cannot apply required minimum distribution amounts you
take from your qualified plans to the amounts you have to take from your
traditional IRAs and vice-versa. However, the IRS will let you calculate the
required minimum distribution for each traditional IRA or TSA that you
maintain, using the method that you picked for that particular IRA or TSA. You
can add these required minimum distribution amount calculations together. As
long as the total amount you take out every year satisfies your overall
traditional IRA or TSA required minimum distribution amount, you may choose to
take your annual required minimum distribution from any one or more
traditional IRAs that you own.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR?
Your plan or arrangement could be disqualified, and you could have to pay tax
on the entire value. Even if your plan or arrangement is not disqualified, you
could have to pay a 50% penalty tax on the shortfall (required amount less
amount actually taken). It is your responsibility to meet the required minimum
distribution rules. We will remind you when our records show that your age 70
1/2 is approaching. If this is an IRA or TSA and you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA or TSA that you own. Note that in the case of a
qualified plan or EDC the distribution must be taken annually.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE?
If you die after either (a) the start of annuity payments, or (b) your
Required Beginning Date, your beneficiary must receive payment of the
remaining values in the contract at least as rapidly as under the distribution
method before your death.
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In some circumstances, your surviving spouse may elect to become the owner of
your traditional IRA and halt distributions until he or she reaches age
70 1/2.
If you die before your Required Beginning Date and before annuity payments
begin, federal income tax rules require complete distribution of your entire
value in the contract within five years after your death. Payments to a
designated beneficiary over the beneficiary's life or over a period certain
that does not extend beyond the beneficiary's life expectancy are also
permitted, if these payments start within one year of your death. A surviving
spouse beneficiary can also (a) delay starting any payments until you would
have reached age 70 1/2 or (b) roll over your qualified plan, TSA, or
traditional IRA into his or her own traditional IRA.
SPECIAL EDC MINIMUM DISTRIBUTION RULES
Any distribution payable over a period of more than one year must be paid at
least annually and must be substantially nonincreasing. If an EDC plan
participant dies before the Required Beginning Date, then required minimum
distributions made after death must be paid over a period of not more than 15
years. If the surviving spouse is the beneficiary, these required minimum
distributions may be paid over the life expectancy period of the spouse.
Rollovers to traditional IRAs are not permitted.
ERISA MATTERS
ERISA rules are designed to save and protect qualified retirement plan assets
to be paid to plan participants when they retire.
Qualified plans under Section 401 of the Internal Revenue Code are generally
subject to ERISA. Some TSAs may be subject to Title I of ERISA, generally
dependent on the level of employer involvement, for example, if the employer
makes matching contributions.
In addition, certain loan rules apply only to loans under ERISA plans:
o For contracts which are subject to ERISA, the trustee or sponsoring
employer is responsible for insuring that any loan meets applicable DOL
requirements. It is the responsibility of the plan administrator, the
trustee of the qualified plan and/or the employer, and not Equitable Life,
to properly administer any loan made to plan participants.
o With respect to specific loans made by the plan to a plan participant, the
plan administrator determines the interest rate, the maximum term
consistent with EQUI-VEST processing and all other terms and conditions of
the loan.
o Only 50% of the participant's vested account balance may serve as security
for a loan. To the extent that a participant borrows an amount which
should be secured by more than 50% of the participant's vested account
balance, it is the responsibility of the trustee or plan administrator to
obtain the additional security.
o Each new or renewed loan must bear a reasonable rate of interest
commensurate with the interest rates charged by persons in the business of
lending money for loans that would be made under similar circumstances.
o Loans must be available to all plan participants, former participants (or
death beneficiaries of participants) who still have account balances under
the plan, and alternate payees on a reasonably equivalent basis.
o Plans subject to ERISA provide that the participant's spouse must consent
in writing to the loan.
o Except to the extent permitted in accordance with the terms of a prohibited
transaction exemption issued by DOL, loans are not available (i) in a
Keogh (non-corporate) plan to an owner-employee or a partner who owns more
than 10% of a partnership or (ii) to 5% shareholders in an
S corporation.
CERTAIN RULES APPLICABLE TO PLANS DESIGNED TO COMPLY WITH SECTION 404(C)
OF ERISA
Section 404(c) of ERISA, and the related DOL regulation, provide that if a
plan participant or beneficiary exercises control over the assets in his or
her plan account, plan fiduciaries will not be liable for any loss that is the
direct and
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necessary result of the plan participant's or beneficiary's exercise of
control. As a result, if the plan complies with Section 404(c) and the DOL
regulation thereunder, the plan participant can make and is responsible for
the results of his or her own investment decisions.
Section 404(c) plans must provide, among other things, that a broad range of
investment choices are available to plan participants and beneficiaries and
must provide such plan participants and beneficiaries with enough information
to make informed investment decisions. Compliance with the Section 404(c)
regulation is completely voluntary by the plan sponsor, and the plan sponsor
may choose not to comply with Section 404(c).
The EQUI-VEST Trusteed, HR-10 Annuitant-Owned, SIMPLE IRA and TSA programs
provide the broad range of investment choices and information needed in order
to meet the requirements of the Section 404(c) regulation. If the plan is
intended to be a Section 404(c) plan, it is, however, the plan sponsor's
responsibility to see that the requirements of the DOL regulation are met.
Equitable Life and its financial professionals shall not be responsible if a
plan fails to meet the requirements of Section 404(c).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in
certain cases, the amount of your distribution. Any income tax withheld is a
credit against your income tax liability. If you do not have sufficient income
tax withheld or do not make sufficient estimated income tax payments, you may
incur penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs in SEP, SARSEP, or SIMPLE IRAs to Roth IRAs, as it is
considered a withdrawal from the traditional IRA and is taxable.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules
here. Certain states have indicated that state income tax withholding will
also apply to payments from the contracts made to residents. In some states,
you may elect out of state withholding, even if federal withholding applies.
Generally, an election out of federal withholding will also be considered an
election out of state withholding. If you need more information concerning a
particular state or any required forms, call our processing office at the
toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number
of withholding exemptions, we withhold assuming that you are married and
claiming three withholding exemptions. If you do not give us your correct
Taxpayer Identification Number, we withhold as if you are single with no
exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $14,880 in periodic annuity payments in
2000 your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your
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withholding election remains effective unless and until you revoke it. You may
revoke or change your withholding election at any time.
MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible
rollover distributions from qualified plans and TSAs are subject to mandatory
20% withholding. An eligible rollover distribution from a TSA can be rolled
over to another TSA or a traditional IRA. An eligible rollover distribution
from a qualified plan can be rolled over to another qualified plan or
traditional IRA. All distributions from a TSA or qualified plan are eligible
rollover distributions unless they are on the following list of exceptions:
o any after-tax contributions you made to the plan; or
o any distributions which are "required minimum distributions" after age
70 1/2 or separation from service; or
o hardship withdrawals; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancy) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o corrective distributions which fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
o a qualified domestic relations order distribution to a beneficiary who is
not your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
For a non-periodic distribution (total surrender or partial withdrawal), and
any distribution from a qualified plan or TSA which is not an eligible
rollover distribution we generally withhold at a flat 10% rate.
You cannot elect out of withholding if the payment is an "eligible rollover
distribution" from a qualified plan or TSA. If a non-periodic distribution
from a qualified plan or TSA is not an "eligible rollover distribution" then
the 10% withholding rate applies.
IMPACT OF TAXES TO EQUITABLE LIFE
The contracts provide that we may charge Separate Account A for taxes. We do
not now, but may in the future set up reserves for such taxes.
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ABOUT OUR SEPARATE ACCOUNT A
Each variable investment option is a subaccount of our Separate Account A.
We established Separate Account A in 1968 under special provisions of the
New York Insurance Law. These provisions prevent creditors from any other
business we conduct from reaching the assets we hold in our variable
investment options for owners of our variable annuity contracts. We are the
legal owner of all of the assets in Separate Account A and may withdraw any
amounts that exceed our reserves and other liabilities with respect to
variable investment options under our contracts. The results of Separate
Account A's operations are accounted for without regard to Equitable Life's
other operations.
Separate Account A is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise Equitable Life or Separate Account A.
Each subaccount (variable investment option) within Separate Account A invests
solely in Class IA or Class IB shares, respectively, issued by the
corresponding portfolios of EQ Advisors Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from, Separate Account A, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment
option to another variable investment option;
(4) to operate Separate Account A or any variable investment option as a
management investment company under the Investment Company Act of 1940
(in which case, charges and expenses that otherwise would be assessed
against an underlying mutual fund would be assessed against Separate
Account A or a variable investment option directly);
(5) to deregister Separate Account A under the Investment Company Act of 1940;
(6) to restrict or eliminate any voting rights as to Separate Account A; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT EQ ADVISORS TRUST
EQ Advisors Trust is registered under the Investment Company Act of 1940. It
is classified as an "open-end management investment company," more commonly
called a mutual fund. EQ Advisors Trust issues different shares relating to
each portfolio.
Equitable Life serves as the investment manager of EQ Advisors Trust. As such,
Equitable Life oversees the activities of the investment advisers with respect
to EQ Advisors Trust and is responsible for retaining or discontinuing the
services of those advisers. (Prior to September 1999, EQ Financial
Consultants, Inc., the predecessor to AXA Advisors, LLC and an affiliate of
Equitable Life served as investment manager to EQ Advisors Trust.)
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier
Growth) were part of The Hudson River Trust. On October 18, 1999, these
portfolios became corresponding portfolios of EQ Advisors Trust.
EQ Advisors Trust does not impose sales charges or "loads" for buying and
selling its shares. All dividends and other distributions on Trust shares are
reinvested in full. The Board of Trustees of EQ Advisors Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about EQ Advisors Trust, the portfolio investment
objectives, policies, restrictions, risks, expenses, their Rule 12b-1 plan
relating to its Class IB shares, and
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other aspects of the Trusts operations, appears in the prospectus for EQ
Advisors Trust, attached at the end of this prospectus, or in its SAI which is
available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example,
we can tell you how much you need to allocate per $100 of maturity value.
The rates to maturity for new allocations as of March 1, 2000 and the related
price per $100 of maturity value were as follows:
- -----------------------------------------------------------------------------
FIXED MATURITY
OPTIONS
WITH JUNE 15TH
MATURITY DATE RATE TO MATURITY AS PRICE
OF OF PER $100 OF
MATURITY YEAR MARCH 1, 2000 MATURITY VALUE
- -----------------------------------------------------------------------------
2001 5.20% $ 93.68
2002 5.65% $ 88.20
2003 6.10% $ 82.34
2004 6.15% $ 77.41
2005 6.25% $ 72.57
2006 6.35% $ 67.90
2007 6.40% $ 63.63
2008 6.40% $ 59.82
2009 6.45% $ 55.96
2010 6.50% $ 52.31
V=-----------------------------------------------------------------------------
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on
a 365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity that applies on the
withdrawal date to new allocations to the same fixed maturity
option.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be
positive or negative.
-------------------------------------------------------------------------------
Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that
same fixed maturity option on the date of the calculation.
-------------------------------------------------------------------------------
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in
the fixed maturity option that you are withdrawing. Any withdrawal charges
that are deducted from a fixed maturity option will result in a market value
adjustment calculated in the same way. See Appendix III for an example.
For purposes of calculating the rate to maturity for new allocations to a
fixed maturity option (see (1)(c) above), we use the rate we have in effect
for new allocations to that
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fixed maturity option. We use this rate even if new allocations to that option
would not be accepted at that time. This rate will not be less than 3%. If we
do not have a rate to maturity in effect for a fixed maturity option to which
the "current rate to maturity" in (1)(c) above would apply, we will use the
rate at the next closest maturity date. If we are no longer offering new fixed
maturity options, the "current rate to maturity" will be determined in
accordance with our procedures then in effect. We reserve the right to add up
to 0.50% to the current rate in (1)(c) above for purposes of calculating the
market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment
performance on those assets. You do not participate in the performance of the
assets held in this separate account. We may, subject to state law that
applies, transfer all assets allocated to the separate account to our general
account. We guarantee all benefits relating to your value in the fixed
maturity options, regardless of whether assets supporting fixed maturity
options are held in a separate account or our general account.
We have no specific formula for establishing the rates to maturity for the
fixed maturity options. We expect the rates to be influenced by, but not
necessarily correspond to, among other things, the yields that we can expect
to realize on the separate account's investments from time to time. Our
current plans are to invest in fixed-income obligations, including corporate
bonds, mortgage-backed and asset-backed securities and government and agency
issues having durations in the aggregate consistent with those of the fixed
maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be require to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of
the nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and the fixed
maturity options as well as our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of
1940. However, the market value adjustment interest under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions
of this prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to general accounts,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
AUTOMATIC INVESTMENT PROGRAM - FOR CERTAIN SEP AND KEOGH PLAN CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a bank checking account, bank money market
account, or credit union checking account and contributed as an
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additional contribution into your contracts on a monthly basis. AIP is
available for Single Life SEP and Keogh Units provided that the single life is
the employer who provided the funds.
AIP additional contributions may be allocated to any of the variable
investment options and the guaranteed interest option but not the fixed
maturity options. Our minimum contribution amount requirement is $20. You
choose the day of the month you wish to have your account debited. However,
you may not choose a date later than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
Wire transfers. Employers may also send contributions by wire transfer from
a bank.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day is any day on which Equitable Life is open and the New York
Stock Exchange is open for trading. We are closed on national business
holidays including Martin Luther King, Jr. Day and the Friday after
Thanksgiving. Additionally, we may choose to close on the day immediately
preceding or following a national business holiday or due to emergency
conditions. Our business day generally ends at 4:00 p.m., Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. We may close earlier due to emergency
conditions. Contributions will be applied and any other transaction requests
will be processed when they are received along with all the required
information unless another date applies as indicated below.
o If your contribution, transfer or any other transaction request, containing
all the required information, reaches us on a non-business day or after
4:00 p.m., Eastern time on a business day, we will use the next business
day.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o Quarterly rebalancing will be processed on a calendar year basis and
semiannual or annual rebalancing will be processed on the first business
day of the month. Rebalancing will not be done retroactively.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the unit value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o Contributions allocated to the guaranteed interest option will receive the
guaranteed interest rate in effect on that business day.
o If a fixed maturity option is scheduled to mature on June 15th and June
15th is a non-business day, that fixed maturity option will mature on the
prior business day.
o Transfers to or from variable investment options will be made at the unit
value next determined after the close of the business day.
o Transfers to the guaranteed interest option will receive the guaranteed
interest rate in effect on that business day.
o Transfers to a fixed maturity option will receive the rate to maturity in
effect for that fixed maturity option on that business day.
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o Transfers out of a fixed maturity option will be at the market adjusted
amount on that business day.
o For the fixed-dollar option, the first monthly transfer will occur on the
last business day of the month in which we receive your election form at
our processing office.
o For the interest sweep, the first monthly transfer will occur on the last
business day of the month following the month that we receive your
election form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of EQ Advisors Trust we have the right to vote on
certain matters involving the portfolios, such as:
o the election of trustees; or
o the formal approval of independent auditors selected for EQ Advisors Trust;
or
o any other matters described in the prospectus for EQ Advisors Trust or
requiring a shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the
same proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control EQ Advisors Trust. EQ Advisors Trust shares are sold to
our separate accounts and an affiliated qualified plan trust. In addition,
shares of EQ Advisors Trust are held by separate accounts of insurance
companies both affiliated and unaffiliated with us. Shares held by these
separate accounts will probably be voted according to the instructions of the
owners of insurance policies and contracts issued by those insurance
companies. While this will dilute the effect of the voting instructions of the
contract owners, we currently do not foresee any disadvantages because of
this. The Board of Trustees of EQ Advisors Trust intends to monitor events in
order to identify any material irreconcilable conflicts that may arise and to
determine what action, if any, should be taken in response. If we believe that
a response to any of those events insufficiently protects our contract owners,
we will see to it that appropriate action is taken.
SEPARATE ACCOUNT A VOTING RIGHTS
If actions relating to Separate Account A require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
Equitable Life and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings is likely to have a material adverse
effect upon Separate Account A, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
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ABOUT OUR INDEPENDENT ACCOUNTANTS
The consolidated financial statements of Equitable Life at December 31, 1999
and 1998, and for the three years ended December 31, 1999 incorporated in this
prospectus by reference to the Annual Report on Form 10-K are incorporated in
reliance on the report of PricewaterhouseCoopers LLP independent accountants
given on the authority of such firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account A, as well as the consolidated
financial statements of Equitable Life, are in the SAI. The SAI is available
free of charge. You may request one by writing our processing office or
calling 1-800-628-6673.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
Generally, the owner may not assign a contract for any purpose. However, a
trustee owner of a Trusteed contract can transfer ownership to the annuitant.
We will not be bound by an assignment unless it is in writing and we have
received it at our processing office. In some cases, an assignment or change
of ownership may have adverse tax consequences. See "Tax information" earlier
in this prospectus.
You cannot assign a contract as security for a loan or other obligation. Loans
from account value, however, are permitted under TSA (but not University TSA)
and Corporate Trusteed contracts only, unless restricted by the employer.
FUNDING CHANGES
The employer or trustee can change the funding vehicle for an EDC or Trusteed
contract. You can change the funding vehicle for a TSA, SEP or SIMPLE IRA
contract.
DISTRIBUTION OF THE CONTRACTS
AXA Advisors, LLC ("AXA Advisors"), the successor to Equitable Financial
Consultants, Inc., and an affiliate of Equitable Life, is the distributor of
the contracts and has responsibility for sales and marketing functions for
Separate Account A. AXA Advisors serves as the principal underwriter of
Separate Account A. AXA Advisors is registered with the SEC as a broker-dealer
and is a member of the National Association of Securities Dealers, Inc. AXA
Advisors' principal business address is 1290 Avenue of the Americas, New York,
NY 10104. Pursuant to a Distribution and Servicing Agreement between AXA
Advisors, Equitable Life, and certain of Equitable Life's separate accounts,
including Separate Account A, Equitable Life paid AXA Advisors fees of
$325,380 for 1999 $325,380 for 1998 and $325,380 for 1997, as distributor of
certain contracts and as the principal underwriter of certain separate
accounts including Separate Account A.
The contracts will be sold by financial professionals who are registered
representatives of AXA Advisors, and its affiliates who are also our licensed
insurance agents. AXA Advisors may also receive compensation and reimbursement
for its marketing services under the terms of its distribution agreement with
Equitable Life. The offering of the contracts is intended to be continuous.
<PAGE>
9
Investment performance
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77 Investment performance
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We provide the following tables to show five different measurements of the
investment performance of the variable investment options and/or the
portfolios in which they invest. We include these tables because they may be
of general interest to you.
Table 1 shows the average annual total return of the variable investment
options. Average annual total return is the annual rate of growth that would
be necessary to achieve the ending value of a contribution invested in the
variable investment options for the periods shown.
Table 2 shows the growth of a hypothetical $1,000 investment in the variable
investment options over the periods shown. Both Tables 1and 2 take into
account all current fees and charges under the contract including the
withdrawal charge, if applicable, but do not reflect the charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes in
your state, or the annuity administrative fee, if applicable.
Tables 3, 4 and 5 show the rates of return of the variable investment options
on an annualized, cumulative, and year-by-year basis. These tables take into
account all current fees and charges under the contract, but do not reflect
the annual administrative charge and any withdrawal charge, or charges
designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state or the annuity administrative fee if applicable.
If the charges were reflected they would effectively reduce the rates of
return shown.
In all cases the results shown are based on the actual historical investment
experience of the portfolios in which the variable investment options invest.
In some cases, the results shown relate to periods when the variable
investment options and/or the contracts were not available. In those cases, we
adjusted the results of the portfolios to reflect the charges under the
contracts that would have applied had the investment options and/or contracts
been available. Since charges under the contracts vary, we have assumed, for
each charge, the highest that might apply.
Finally, the results shown for the Alliance Money Market, EQ/Balanced,
Alliance Common Stock and EQ/Aggressive Stock options for periods before those
options were operated as part of a unit investment trust reflect the results
of the separate accounts that preceded them. The "Since portfolio inception"
figures for these options are based on the date of inception of the preceding
separate accounts. We have adjusted these results to reflect the fee and
expense structure in effect for Separate Account A as a unit investment trust.
See "The reorganization" in the SAI for additional information.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier
Growth) were part of The Hudson River Trust. On October 18, 1999, these
portfolios became corresponding portfolios of EQ Advisors Trust. In each case,
the performance shown is for the indicated EQ Advisors Trust portfolio and any
predecessors that it may have had.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
From time to time, we may advertise different measurements of the investment
performance options and/or the portfolios, including the measurements
reflected in the tables below.
THE PERFORMANCE INFORMATION SHOWN BELOW AND THE PERFORMANCE INFORMATION THAT
WE ADVERTISE REFLECTS PAST PERFORMANCE AND DOES NOT INDICATE HOW THE VARIABLE
INVESTMENT OPTIONS MAY PERFORM IN THE FUTURE. SUCH INFORMATION ALSO DOES NOT
REPRESENT THE RESULTS EARNED BY ANY PARTICULAR INVESTOR. YOUR RESULTS WILL
DIFFER.
BENCHMARKS
Tables 3 and 4 compare the performance of variable investment options to
market indices that serve as benchmarks.
Market indices are not subject to any charges for investment advisory fees,
brokerage commission or other operating
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78 Investment performance
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expenses typically associated with a managed portfolio. Also, they do not
reflect other current charges such as the mortality and expense risks and
other expense charges, annual administrative charge, or any withdrawal charge,
under the contracts. Comparisons with these benchmarks, therefore, may be of
limited use. We include them because they are widely known and may help you to
understand the universe of securities from which each portfolio is likely to
select its holdings. Benchmark data reflect the reinvestment of dividend
income. The benchmarks include:
-------------------------------------------------------------------------------
EQ/Aggressive Stock: 50% Russell 2000 Index and 50% Standard & Poor's Mid-Cap
Total Return Index.
Alliance Common Stock: Standard & Poor's 500 Index.
Alliance Conservative Investors: 70% Lehman Treasury Bond Composite Index
and 30% Standard & Poor's 500 Index.
Alliance Equity Index: Standard & Poor's 500 Index.
Alliance Global: Morgan Stanley Capital International World Index.
Alliance Growth and Income: 75% Standard & Poor's 500 Index and 25%
Value Line Convertibles Index.
Alliance Growth Investors: 30% Lehman Government/Corporate Bond Index and
70% Standard & Poor's 500 Index.
Alliance High Yield: Benchmark #1 - Merrill Lynch High Yield Master Index.
Benchmark #2 - Credit Suisse First Boston Global High Yield Index.
Alliance Intermediate Government Securities: Lehman Intermediate Government
Bond Index.
Alliance International: Morgan Stanley Capital International Europe,
Australia, Far East Index.
Alliance Money Market: Salomon Brothers Three-Month T-Bill Index.
EQ/Alliance Premier Growth: Standard & Poor's 500 Index.
Alliance Quality Bond: Lehman Aggregate Bond Index.
Alliance Small Cap Growth: Russell 2000 Growth Index.
EQ/Alliance Technology: NASDAQ Composite.
EQ/Balanced: 50% Standard & Poor's 500 and 50% Lehman Government/Corporate
Bond Index.
Calvert Socially Responsible: Standard & Poor's 500 Index.
Capital Guardian Research: Standard & Poor's 500 Index.
Capital Guardian U.S. Equity: Standard & Poor's 500 Index.
EQ/Evergreen: Benchmark #1 - Russell 2000 Index. Benchmark #2 - Standard &
Poor's 500 Index.
EQ/Evergreen Foundation: 60% Standard & Poor's 500 Index/40% Lehman Brothers
Aggregate Bond Index.
MFS Emerging Growth Companies: Benchmark #1 - Russell 2000 Index.
MFS Growth with Income: Standard & Poor's 500 Index.
MFS Research: Standard & Poor's 500 Index.
Mercury Basic Value Equity: Standard & Poor's 500 Index.
Mercury World Strategy: 36% Standard & Poor's 500 Index/24% Morgan Stanley
Capital International Europe, Australia, Far East Index/21% Salomon Brothers
U.S. Treasury Bond 1 Year+ 14% Salomon Brothers World Government Bond
(excluding U.S.)/and 5% Three-Month U.S. Treasury Bill.
Morgan Stanley Emerging Markets Equity: Morgan Stanley Capital International
Emerging Markets Free Price Return Index.
EQ/Putnam Balanced: 60% Standard & Poor's 500 Index and 40% Lehman
Government/Corporate Bond Index.
EQ/Putnam Growth & Income Value: Standard & Poor's 500 Index.
T. Rowe Price Equity Income: Standard & Poor's 500 Index.
T. Rowe Price International Stock: Morgan Stanley Capital International
Europe, Australia, Far East Index.
Warburg Pincus Small Company Value: Benchmark #1 - Russell 2000 Index.
Benchmark #2 - Russell 2000 Value Index.
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LIPPER SURVEY. The Lipper Variable Insurance Products Performance Analysis
Survey (Lipper Survey) records the performance of a large group of variable
annuity products, including managed separate accounts of insurance companies.
According to Lipper Analytical Services, Inc (Lipper), the data are presented
net of investment management fees, direct operating expenses and asset-based
charges applicable under annuity contracts. Lipper data provide a more
accurate picture than market benchmarks of the EQUI-VEST performance relative
to other variable annuity products.
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79 Investment performance
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TABLE 1
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
LENGTH OF INVESTMENT PERIOD
- -------------------------------------------------------------------------------------------------------------------------
SINCE SINCE
1 3 5 10 OPTION PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION* INCEPTION
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/Aggressive Stock 8.86% 4.09% 11.69% 13.32% 14.94% 14.94%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock 14.47% 22.12% 23.70% 14.88% 15.43% 10.83%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors 0.75% 6.69% 7.58% 6.09% 4.93% 6.28%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Equity Index 10.11% 21.15% 23.54% -- 20.78% 19.46%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Global 26.71% 17.59% 16.04% 12.04% 13.48% 10.81%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income 8.54% 16.14% 17.55% -- 13.71% 12.82%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors 15.78% 14.83% 15.53% 13.50% 11.61% 13.59%
- -------------------------------------------------------------------------------------------------------------------------
Alliance High Yield (11.60)% (2.77)% 5.08% 6.55% 3.06% 5.81%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government Securities (8.41)% (0.61)% 1.38% -- 0.48% 2.33%
- -------------------------------------------------------------------------------------------------------------------------
Alliance International 26.03% 8.09% -- -- 7.76% 8.15%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Money Market (4.02)% (0.39)% 0.27% 1.10% 3.13% 3.13%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond (10.36)% (0.47)% 2.59% -- 0.42% 0.74%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth 17.00% -- -- -- 7.76% 11.62%
- -------------------------------------------------------------------------------------------------------------------------
EQ/Balanced 7.77% 11.05% 11.70% 7.94% 9.51% 9.51%
- -------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies 60.35% -- -- -- 39.18% 42.20%
- -------------------------------------------------------------------------------------------------------------------------
MFS Research 12.61% -- -- -- 15.36% 17.66%
- -------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity 8.79% -- -- -- 9.17% 11.67%
- -------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy 10.99% -- -- -- 4.37% 6.18%
- -------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity 82.12% -- -- -- (0.51)% (0.51)%
- -------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced (8.50)% -- -- -- 2.42% 3.79%
- -------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (9.78)% -- -- -- 2.28% 4.21%
- -------------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income (5.28)% -- -- -- 5.19% 6.82%
- -------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock 20.62% -- -- -- 8.47% 9.58%
- -------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value (6.89)% -- -- -- (4.99)% (2.50)%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The variable investment option inception dates are: EQ/Aggressive Stock
(5/1/84), EQ/Balanced (5/1/84), Alliance Common Stock (8/27/81), Alliance
Conservative Investors (1/4/94), Alliance Equity Index (6/1/94), Alliance
Global (1/4/94), Alliance Growth and Income (1/4/94), Alliance Growth
Investors (1/4/94), Alliance High Yield (1/4/94), Alliance Intermediate
Government Securities (6/1/94), Alliance International (9/1/95), Alliance
Money Market (5/11/82), Alliance Quality Bond (1/4/94), Alliance Small
Cap Growth (6/2/97), MFS Emerging Growth Companies (6/2/97), MFS Research
(6/2/97), Mercury Basic Value Equity (6/2/97), Mercury World Strategy
(6/2/97), Morgan Stanley Emerging Markets Equity (8/20/97), EQ/Putnam
Balanced (6/2/97), EQ/Putnam Growth & Income Value (6/2/97), T. Rowe
Price Equity Income (6/2/97), T. Rowe Price International Stock (6/2/97),
Warburg Pincus Small Company Value (6/2/97). The inception dates for the
variable investment options that became available after 12/31/98 and are
therefore not shown in this table are: EQ/Evergreen, EQ/Evergreen
Foundation, MFS Growth with Income, EQ/Alliance Premier Growth, Capital
Guardian Research, Capital Guardian U.S. Equity and Calvert Socially
Responsible (8/30/99) and EQ/Alliance Technology (anticipated to become
available on or about 5/1/00).
<PAGE>
- -----
80 Investment performance
- --------------------------------------------------------------------------------
** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding
portfolios of EQ Advisors Trust on 10/18/99. The portfolio inception
dates are: EQ/Aggressive Stock (5/1/84), EQ/Balanced (5/1/84), Alliance
Common Stock (8/1/68), Alliance Conservative Investors (10/2/89),
Alliance Equity Index (3/1/94), Alliance Global (8/27/87), Alliance
Growth and Income (10/1/93), Alliance Growth Investors (10/2/89),
Alliance High Yield (1/2/87), Alliance Intermediate Government Securities
(4/1/91), Alliance International (4/3/95), Alliance Money Market
(5/11/82), Alliance Quality Bond (10/1/93), Alliance Small Cap Growth
(5/1/97), MFS Emerging Growth Companies (5/1/97), MFS Research (5/1/97),
Mercury Basic Value Equity (5/1/97), Mercury World Strategy (5/1/97),
Morgan Stanley Emerging Markets Equity (8/20/97), EQ/Putnam Balanced
(5/1/97), EQ/Putnam Growth & Income Value (5/1/97), T. Rowe Price Equity
Income (5/1/97), T. Rowe Price International Stock (5/1/97), Warburg
Pincus Small Company Value (5/1/97). EQ/Evergreen, EQ/Evergreen
Foundation, and MFS Growth with Income (inception dates of 12/31/98) are
not included because the variable investment options that correspond to
the portfolios became available after 12/31/98. The inception dates for
the portfolios that became available after 12/31/98 and are therefore not
shown in the tables are: EQ/Alliance Premier Growth, Capital Guardian
Research, and Capital Guardian U.S. Equity (4/30/99); and Calvert
Socially Responsible (8/30/99); and EQ/Alliance Technology (anticipated
to become available on or about 5/1/00).
<PAGE>
- -----
81 Investment performance
- --------------------------------------------------------------------------------
TABLE 2
GROWTH OF $1,000 UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
LENGTH OF INVESTMENT PERIOD
- -------------------------------------------------------------------------------------------------------------------------
SINCE
1 3 5 10 PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/Aggressive Stock $ 1,088.59 $ 1,127.66 $ 1,738.39 $ 3,491.17 $ 8,860.66
- -------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock $ 1,144.67 $ 1,821.06 $ 2,896.44 $ 4,004.07 $ 25,286.20
- -------------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors $ 1,007.45 $ 1,214.41 $ 1,441.12 $ 1,806.37 $ 1,866.13
- -------------------------------------------------------------------------------------------------------------------------
Alliance Equity Index $ 1,101.11 $ 1,778.01 $ 2,877.87 - $ 2,824.22
- -------------------------------------------------------------------------------------------------------------------------
Alliance Global $ 1,267.06 $ 1,625.87 $ 2,103.61 $ 3,118.14 $ 3,551.28
- -------------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income $ 1,085.36 $ 1,566.72 $ 2,244.66 - $ 2,125.31
- -------------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors $ 1,157.81 $ 1,514.12 $ 2,058.07 $ 3,549.13 $ 3,691.54
- -------------------------------------------------------------------------------------------------------------------------
Alliance High Yield $ 883.99 $ 919.14 $ 1,280.91 $ 1,885.62 $ 2,083.10
- -------------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government Securities $ 915.94 $ 981.67 $ 1,071.06 -- $ 1,223.05
- -------------------------------------------------------------------------------------------------------------------------
Alliance International $ 1,260.28 $ 1,262.88 -- -- $ 1,450.53
- -------------------------------------------------------------------------------------------------------------------------
Alliance Money Market $ 959.77 $ 988.45 $ 1,013.82 $ 1,115.98 $ 1,723.86
- -------------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond $ 896.36 $ 985.91 $ 1,136.62 -- $ 1,047.10
- -------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth $ 1,169.97 -- -- -- $ 1,341.32
- -------------------------------------------------------------------------------------------------------------------------
EQ/Balanced $ 1,077.67 $ 1,369.45 $ 1,738.88 $ 2,146.09 $ 4,154.52
- -------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies $ 1,603.47 -- -- -- $ 2,561.01
- -------------------------------------------------------------------------------------------------------------------------
MFS Research $ 1,126.08 -- -- -- $ 1,543.93
- -------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity $ 1,087.90 -- -- -- $ 1,342.95
- -------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy $ 1,109.90 -- -- -- $ 1,173.71
- -------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity $ 1,821.24 -- -- -- $ 987.89
- -------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced $ 915.02 -- -- -- $ 1,104.41
- -------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value $ 902.24 -- -- -- $ 1,116.34
- -------------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income $ 947.17 -- -- -- $ 1,192.84
- -------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock $ 1,206.17 -- -- -- $ 1,276.97
- -------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value $ 931.13 -- -- -- $ 934.60
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
* Portfolio inception dates are shown in Table 1.
<PAGE>
- -----
82 Investment performance
- --------------------------------------------------------------------------------
TABLE 3
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
SINCE
1 3 5 10 20 PORTFOLIO
YEAR YEARS YEARS YEARS YEARS INCEPTION*
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK 17.24% 8.23% 14.69% 14.99% -- 16.11%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Growth 51.65% 24.68% 19.97% 14.78% -- 15.86%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 18.09% 17.48% 19.92% 15.41% -- 14.58%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 23.47% 26.17% 26.31% 16.97% 16.89% 12.42%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% 26.87% 25.55% 16.90% 15.83% 15.16%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 27.56% 28.56% 18.21% 17.88% 16.19%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS 8.67% 10.90% 10.96% 8.46% -- 8.53%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Income 4.42% 11.65% 13.70% 10.10% -- 10.15%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 4.19% 12.07% 13.60% 10.75% -- 10.68%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX 18.77% 25.21% 26.12% -- -- 21.99%
- ------------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index Funds 19.36% 25.86% 26.81% -- -- 23.89%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 27.56% 28.56% -- -- 24.14%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 36.67% 21.81% 19.09% 14.27% -- 12.92%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Global 44.62% 23.92% 20.57% 11.65% -- 11.06%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 24.93% 21.61% 19.76% 11.42% -- 10.74%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME 17.07% 20.41% 20.42% -- -- 15.56%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% 17.23% 20.50% -- -- 16.45%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 20.71% 23.10% 25.01% -- -- 18.77%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS 24.89% 19.14% 18.56% 15.50% -- 15.50%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 10.45% 14.19% 15.15% 11.65% -- 11.68%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 13.77% 20.90% 22.15% 15.13% -- 15.15%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (4.65)% 1.41% 8.39% 8.75% -- 7.89%
- ------------------------------------------------------------------------------------------------------------------------
Lipper High Yield 3.65% 4.82% 8.59% 9.61% -- 7.79%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark #1 1.57% 5.91% 9.61% 10.79% -- 9.99%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark #2 3.28% 5.37% 9.07% 11.06% -- 10.04%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT
SECURITIES (1.20)% 3.59% 4.94% -- -- 4.85%
- ------------------------------------------------------------------------------------------------------------------------
Lipper U.S. Government (2.60)% 4.04% 5.81% -- -- 5.89%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 0.49% 5.50% 6.93% -- -- 6.76%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERNATIONAL 35.94% 12.36% -- -- -- 11.61%
- ------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% 18.74% -- -- -- 16.13%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% 15.74% -- -- -- 13.11%
- ------------------------------------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET 3.53% 3.80% 3.93% 3.75% -- 5.23%
- ------------------------------------------------------------------------------------------------------------------------
Lipper Money Market 3.78% 4.05% 4.16% 3.96% -- 5.70%
- ------------------------------------------------------------------------------------------------------------------------
Benchmark 4.74% 5.01% 5.20% 5.06% -- 6.65%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
83
- --------------------------------------------------------------------------------
TABLE 3
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
SINCE
1 3 5 10 20 PORTFOLIO
YEAR YEARS YEARS YEARS YEARS INCEPTION*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE QUALITY BOND (3.31)% 3.74% 6.02% -- -- 3.55%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Corporate Bond A-Rated (2.56)% 4.06% 6.53% -- -- 4.36%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark (0.82)% 5.73% 7.73% -- -- 5.64%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH 26.20% -- -- -- -- 16.30%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% -- -- -- -- 19.49%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% -- -- -- -- 25.88%
- -------------------------------------------------------------------------------------------------------------------------
EQ/BALANCED 16.20% 15.38% 14.86% 10.28% -- 11.15%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 10.45% 14.19% 15.15% 11.65% -- 11.09%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 9.07% 16.47% 17.93% 13.04% -- 13.19%
- -------------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 17.35% -- -- -- -- 16.36%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% -- -- -- -- 18.00%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% -- -- -- -- 27.36%
- -------------------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 19.72% -- -- -- -- 10.63%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio 12.93% -- -- -- -- 11.91%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 13.07% -- -- -- -- 16.18%
- -------------------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES 71.35% -- -- -- -- 46.28%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% -- -- -- -- 32.50%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% -- -- -- -- 16.99%
- -------------------------------------------------------------------------------------------------------------------------
MFS RESEARCH 21.47% -- -- -- -- 22.28%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% -- -- -- -- 29.33%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% -- -- -- -- 27.36%
- -------------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING
MARKETS EQUITY 93.12% -- -- -- -- 4.28%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% -- -- -- -- 2.90%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 66.41% -- -- -- -- (0.88)%
- -------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED (1.30)% -- -- -- -- 8.24%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% -- -- -- -- 13.91%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 11.39% -- -- -- -- 18.81%
- -------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE (2.68)% -- -- -- -- 8.64%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% -- -- -- -- 18.00%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% -- -- -- -- 27.36%
- -------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME 2.17% -- -- -- -- 11.30%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Equity Income 6.90% -- -- -- -- 14.28%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% -- -- -- -- 27.36%
- -------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK 30.10% -- -- -- -- 14.18%
- -------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% -- -- -- -- 20.38%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% -- -- -- -- 18.32%
- -------------------------------------------------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE 0.44% -- -- -- -- 1.95%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% -- -- -- -- 24.22%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% -- -- -- -- 16.99%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark #2 (1.49)% -- -- -- -- 7.06%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
* Portfolio inception dates are shown in Table 1. Lipper survey and
benchmark "since portfolio inception" information are as of the month-end
closest to the actual date of portfolio inception.
<PAGE>
- -----
84 Investment performance
- --------------------------------------------------------------------------------
TABLE 4
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK 17.24% 26.79% 98.47% 304.38% -- 938.42%
------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Growth 51.65% 102.87% 158.98% 311.69% -- 683.45%
------------------------------------------------------------------------------------------------------------------------
Benchmark 18.09% 62.12% 147.96% 319.19% -- 595.55%
------------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 23.47% 100.83% 221.53% 379.30% 2,167.26% 3,853.25%
------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% 106.30% 216.51% 386.68% 1,816.52% 2,838.39%
------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 107.56% 251.12% 432.78% 2,584.39% 3,555.48%
------------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS 8.67% 36.39% 68.17% 125.19% -- 131.37%
------------------------------------------------------------------------------------------------------------------------
Lipper Income 4.42% 39.31% 91.71% 163.35% -- 169.02%
------------------------------------------------------------------------------------------------------------------------
Benchmark 4.19% 40.74% 89.21% 177.71% -- 186.90%
------------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX 18.77% 96.29% 219.12% -- -- 218.98%
------------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index Funds 19.36% 99.37% 227.98% -- -- 242.77%
------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 107.56% 251.12% -- -- 253.66%
------------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 36.67% 80.74% 139.55% 279.74% -- 348.31%
------------------------------------------------------------------------------------------------------------------------
Lipper Global 44.62% 93.38% 162.57% 205.54% -- 273.03%
------------------------------------------------------------------------------------------------------------------------
Benchmark 24.93% 79.83% 146.35% 194.99% -- 252.80%
------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME 17.07% 74.59% 153.19% -- -- 146.90%
------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% 62.52% 157.04% -- -- 158.01%
------------------------------------------------------------------------------------------------------------------------
Benchmark 20.71% 86.55% 205.26% -- -- 204.09%
------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS 24.89% 69.11% 134.23% 322.33% -- 337.75%
------------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 10.45% 49.38% 103.90% 204.29% -- 211.11%
------------------------------------------------------------------------------------------------------------------------
Benchmark 13.77% 76.71% 171.92% 309.28% -- 352.50%
------------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (4.65)% 4.29% 49.59% 131.34% -- 168.23%
------------------------------------------------------------------------------------------------------------------------
Lipper High Yield 3.65% 15.25% 51.19% 151.82% -- 166.74%
------------------------------------------------------------------------------------------------------------------------
Benchmark #1 1.57% 18.80% 58.22% 178.72% -- 245.03%
------------------------------------------------------------------------------------------------------------------------
Benchmark #2 3.28% 17.00% 54.39% 185.43% -- 246.92%
------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE
GOVERNMENT SECURITIES (1.20)% 11.17% 27.26% -- -- 51.36%
------------------------------------------------------------------------------------------------------------------------
Lipper U.S. Government (2.60)% 12.55% 32.56% -- -- 64.40%
------------------------------------------------------------------------------------------------------------------------
Benchmark 0.49% 17.43% 39.81% -- -- 77.41%
------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERNATIONAL 35.94% 41.84% -- -- -- 68.41%
------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% 69.17% -- -- -- 103.07%
------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% 55.06% -- -- -- 79.52%
------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
85 Investment performance
- --------------------------------------------------------------------------------
TABLE 4
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE MONEY MARKET 3.53% 11.83% 21.27% 44.51% -- 145.59%
------------------------------------------------------------------------------------------------------------------------
Lipper Money Market 3.78% 12.64% 22.65% 47.52% -- 178.18%
------------------------------------------------------------------------------------------------------------------------
Benchmark 4.74% 15.79% 28.88% 63.79% -- 229.35%
------------------------------------------------------------------------------------------------------------------------
ALLIANCE QUALITY BOND (3.31)% 11.64% 33.98% -- -- 24.39%
------------------------------------------------------------------------------------------------------------------------
Lipper Corporate Bond A-Rated 2.56% 12.69% 37.39% -- -- 30.19%
------------------------------------------------------------------------------------------------------------------------
Benchmark (0.82)% 18.20% 45.12% -- -- 40.97%
------------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH 26.20% -- -- -- -- 49.64%
------------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% -- -- -- -- 62.98%
------------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% -- -- -- -- 84.91%
------------------------------------------------------------------------------------------------------------------------
EQ/BALANCED 16.20% 53.60% 99.89% 166.11% -- 423.93%
------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 10.45% 49.38% 103.91% 204.29% -- 335.16%
------------------------------------------------------------------------------------------------------------------------
Benchmark 9.07% 58.00% 128.08% 240.54% -- 558.00%
------------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 17.35% -- -- -- -- 49.82%
------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% -- -- -- -- 56.85%
------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% -- -- -- -- 90.75%
------------------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 19.72% -- -- -- -- 30.94%
------------------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio 12.93% -- -- -- -- 35.69%
------------------------------------------------------------------------------------------------------------------------
Benchmark 13.07% -- -- -- -- 49.16%
------------------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES 71.35% -- -- -- -- 175.93%
------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% -- -- -- -- 120.85%
------------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% -- -- -- -- 52.05%
------------------------------------------------------------------------------------------------------------------------
MFS RESEARCH 21.47% -- -- -- -- 71.06%
------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% -- -- -- -- 101.13%
------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% -- -- -- -- 90.75%
------------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING
MARKETS EQUITY 93.12% -- -- -- -- 10.43%
------------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% -- -- -- -- 7.48%
------------------------------------------------------------------------------------------------------------------------
Benchmark 66.41% -- -- -- -- 5.32%
------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED (1.30)% -- -- -- -- 23.53%
------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% -- -- -- -- 42.44%
------------------------------------------------------------------------------------------------------------------------
Benchmark 11.39% -- -- -- -- 61.21%
------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH &
INCOME VALUE (2.68)% -- -- -- -- 24.76%
------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% -- -- -- -- 56.85%
------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% -- -- -- -- 90.75%
------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
86 Investment performance
- --------------------------------------------------------------------------------
TABLE 4
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
T. ROWE PRICE EQUITY INCOME 2.17% -- -- -- -- 33.07%
--------------------------------------------------------------------------------------------------------
Lipper Equity Income 6.90% -- -- -- -- 43.31%
--------------------------------------------------------------------------------------------------------
Benchmark 21.03% -- -- -- -- 90.75%
--------------------------------------------------------------------------------------------------------
T. ROWE PRICE
INTERNATIONAL STOCK 30.10% -- -- -- -- 42.46%
--------------------------------------------------------------------------------------------------------
Lipper International 43.24% -- -- -- -- 65.44%
--------------------------------------------------------------------------------------------------------
Benchmark 26.96% -- -- -- -- 56.70%
--------------------------------------------------------------------------------------------------------
WARBURG PINCUS SMALL
COMPANY VALUE 0.44% -- -- -- -- 5.28%
--------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% -- -- -- -- 83.94%
--------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% -- -- -- -- 52.05%
--------------------------------------------------------------------------------------------------------
Benchmark #2 (1.49)% -- -- -- -- 19.99%
--------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
* Portfolio inception dates are shown in Table 1. Lipper survey and
benchmark "since portfolio inception" information are as of month-end
closest to the actual date of portfolio inception.
<PAGE>
- -----
87 Investment performance
- --------------------------------------------------------------------------------
TABLE 5
YEAR-BY-YEAR RATES OF RETURN
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
1990 1991 1992 1993
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 5.73% 84.57% (4.47)% 15.17%
- ---------------------------------------------------------------------------------------
Alliance Common Stock (9.27)% 35.81% 1.82% 23.11%
- ---------------------------------------------------------------------------------------
Alliance Conservative Investors 4.97% 18.23% 4.36% 9.27%
- ---------------------------------------------------------------------------------------
Alliance Equity Index -- -- -- --
- ---------------------------------------------------------------------------------------
Alliance Global (7.33)% 28.79% (1.86)% 30.34%
- ---------------------------------------------------------------------------------------
Alliance Growth and Income -- -- -- (0.59)%+
- ---------------------------------------------------------------------------------------
Alliance Growth Investors 9.12% 46.90% 3.52% 13.71%
- ---------------------------------------------------------------------------------------
Alliance High Yield (2.43)% 22.78% 10.80% 21.48%
- ---------------------------------------------------------------------------------------
Alliance Intermediate Government
Securities -- 10.94%+ 4.17% 9.09%
- ---------------------------------------------------------------------------------------
Alliance International -- -- -- --
- ---------------------------------------------------------------------------------------
Alliance Money Market 6.82% 4.69% 2.16% 1.58%
- ---------------------------------------------------------------------------------------
Alliance Quality Bond -- -- -- (0.84)%+
- ---------------------------------------------------------------------------------------
Alliance Small Cap Growth - -- -- -
- ---------------------------------------------------------------------------------------
EQ/Balanced (1.46)% 40.02% (4.15)% 10.80%
- ---------------------------------------------------------------------------------------
Mercury Basic Value Equity -- -- -- --
- ---------------------------------------------------------------------------------------
Mercury World Strategy -- -- -- --
- ---------------------------------------------------------------------------------------
MFS Emerging Growth Companies -- -- -- --
- ---------------------------------------------------------------------------------------
MFS Research -- -- -- --
- ---------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets
Equity -- -- -- --
- ---------------------------------------------------------------------------------------
EQ/Putnam Balanced -- -- -- --
- ---------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value -- -- -- --
- ---------------------------------------------------------------------------------------
T. Rowe Price Equity Income -- -- -- --
- ---------------------------------------------------------------------------------------
T. Rowe Price International Stock -- -- -- --
- ---------------------------------------------------------------------------------------
Warburg Pincus Small Company Value -- -- -- --
- ---------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/Aggressive Stock (5.11)% 29.87% 20.54% 9.31% (1.07)% 17.24%
- -------------------------------------------------------------------------------------------------------------------
Alliance Common Stock (3.48)% 30.64% 22.55% 27.45% 27.62% 23.50%
- -------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors (5.38)% 18.79% 3.79% 11.71% 12.35% 8.67%
- -------------------------------------------------------------------------------------------------------------------
Alliance Equity Index (0.04)%+ 34.66% 20.73% 30.79% 26.36% 18.77%
- -------------------------------------------------------------------------------------------------------------------
Alliance Global 3.82% 17.23% 13.06% 10.05% 20.17% 36.67%
- -------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income (1.90)% 22.42% 18.47% 25.06% 19.25% 17.07%
- -------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors (4.44)% 24.68% 11.09% 15.21% 17.53% 24.89%
- -------------------------------------------------------------------------------------------------------------------
Alliance High Yield (4.09)% 18.32% 21.23% 16.88% (6.42)% (4.65)%
- -------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government
Securities (5.65)% 11.81% 2.38% 5.85% 6.30% (1.20)%
- -------------------------------------------------------------------------------------------------------------------
Alliance International -- 9.60%+ 8.33% (4.35)% 9.09% 35.94%
- -------------------------------------------------------------------------------------------------------------------
Alliance Money Market 2.62% 4.32% 3.90% 3.98% 3.89% 3.56%
- -------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond (6.37)% 15.46% 3.94% 7.68% 7.23% (3.31)%
- -------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth -- -- -- 25.55%+ (5.56)% 26.20%
- -------------------------------------------------------------------------------------------------------------------
EQ/Balanced (9.27)% 18.13% 10.16% 13.44% 16.52% 16.20%
- -------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity -- -- -- 15.97%+ 10.09% 17.35%
- -------------------------------------------------------------------------------------------------------------------
Mercury World Strategy -- -- -- 3.77%+ 5.39% 19.72%
- -------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies -- -- -- 21.34%+ 32.72% 71.35%
- -------------------------------------------------------------------------------------------------------------------
MFS Research -- -- -- 15.01%+ 22.44% 21.47%
- -------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets
Equity -- -- -- (20.59)%+ (28.00)% 93.12%
- -------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced -- -- -- 13.46%+ 10.31% (1.30)%
- -------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value -- -- -- 15.17%+ 11.31% (2.68)%
- -------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income -- -- -- 21.04%+ 7.61% 2.17%
- -------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock -- -- -- (2.39)%+ 12.17% 30.10%
- -------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value -- -- -- 18.06%+ (11.21)% 0.44%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
+ Returns for these portfolios represent less than 12 months of
performance. The returns are as of each portfolio's inception date as
shown in Table 1.
<PAGE>
- ----------
88 Investment performance
- --------------------------------------------------------------------------------
COMMUNICATING PERFORMANCE DATA
In reports or other communications to contract owners or in advertising
material, we may describe general economic and market conditions affecting our
variable investment options and the portfolios, and may compare the
performance or ranking of those options and the portfolios with:
o those of other insurance company separate accounts or mutual funds included
in the rankings prepared by Lipper Analytical Services, Inc., Morningstar,
Inc., VARDS, or similar investment services that monitor the performance
of insurance company separate accounts or mutual funds;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective contract owners advertisements
or other communications that include evaluations of a variable investment
option or portfolio by nationally recognized financial publications. Examples
of such publications are:
-------------------------------------------------------------------------------
Barron's Money Management Letter
Morningstar's Variable Annuity Sourcebook Investment Dealers Digest
Business Week National Underwriter
Forbes Pension & Investments
Fortune USA Today
Institutional Investor Investor's Business Daily
Money The New York Times
Kiplinger's Personal Finance The Wall Street Journal
Financial Planning The Los Angeles Times
Investment Adviser The Chicago Tribune
Investment Management Weekly
-------------------------------------------------------------------------------
Lipper compiles performance data for peer universes of funds with similar
investment objectives in its Lipper Survey. Morningstar, Inc. compiles similar
data in the Morningstar Variable Annuity/Life Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800
mutual funds underlying variable annuity and life insurance products. It
divides these actively managed portfolios into 25 categories by portfolio
objectives. The Lipper Survey contains two different universes, which reflect
different types of fees in performance data:
o The "separate account" universe reports performance data net of investment
management fees, direct operating expenses and asset-based charges
applicable under variable life insurance and annuity contracts; and
o The "mutual fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects only
charges that relate to the underlying mutual fund.
The Morningstar Variable Annuity/Life Report consists of nearly 700 variable
life and annuity funds, all of which report their data net of investment
management fees, direct operating expenses and separate account level charges.
VARDS is a monthly reporting service that monitors approximately 2,500
variable life and variable annuity funds on performance and account
information.
YIELD INFORMATION
Current yield for the Alliance Money Market option will be based on net
changes in a hypothetical investment over a given seven-day period, exclusive
of capital changes, and then "annualized" (assuming that the same seven-day
result would occur each week for 52 weeks). Current yield for the other
options will be based on net changes in a hypothetical investment over a given
30-day period, exclusive of capital changes, and then "annualized" (assuming
that the same 30-day result would occur each month for 12 months).
"Effective yield" is calculated in a similar manner, but when annualized, any
income earned by the investment is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because any earnings
are compounded weekly for the Alliance Money Market option.
<PAGE>
- ----------
89 Investment performance
- --------------------------------------------------------------------------------
The current yields and effective yields assume the deduction of all current
contract charges and expenses other than the annual administrative charge,
withdrawal charge, and any charges for state premium and other applicable
taxes. For more information, see "Alliance Money Market option yield
information" and "Other yield information" in the SAI.
<PAGE>
Incorporation of certain documents by reference
----------------
90 Incorporation of certain documents by reference
-------------------------------------------------------------------------------
Equitable Life's annual report on Form 10-K for the year ended December 31,
1999, is considered to be a part of this prospectus because it is incorporated
by reference.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the
SEC under the Securities Exchange Act of 1934 ("Exchange Act") will be
considered to become part of this prospectus because they are incorporated by
reference.
Any statement contained in a document that is or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of
its incorporation, will be considered changed or replaced for the purpose of
this prospectus if a statement contained in any other subsequently filed
document that is considered to be part of this prospectus changes or replaces
that statement. After that, only the statement that is changed or replaced
will be considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our annual report on
Form 10-K and quarterly reports on Form 10-Q, electronically according to
EDGAR under CIK No. 0000727920. The SEC maintains a Web site that contains
reports, proxy and information statements and other information regarding
registrants that file electronically with the SEC. The address of the site is
http://www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this prospectus is delivered a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to The
Equitable Life Assurance Society of the United States, 1290 Avenue of the
Americas, New York, New York 10104. Attention: Corporate Secretary (telephone:
(212) 554-1234).
<PAGE>
Appendix I: Condensed financial information
- --------
A-1 Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The following tables show the accumulation unit values and the number of
outstanding units for each variable investment option under each contract
series at the last business day of the periods shown. The unit values and
number of units outstanding are for contracts offered under Separate Account A
with the same asset based charge. The information presented is shown for the
past ten years, or from the first year the particular contracts were offered if
less than ten years ago.
SERIES 300 AND 400 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT
OPTION, EXCEPT EQ/ALLIANCE TECHNOLOGY WHICH IS BEING OFFERED FOR THE FIRST TIME
ON MAY 1, 2000.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
DECEMBER 31,
--------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 95.45 $ 123.95 $ 149.41 $ 163.33 $ 161.59 $ 189.44
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 664 1,310 2,468 3,226 3,342 2,980
- ------------------------------------------------------------------------------------------------------------------
EQ/BALANCED
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 91.64 $ 108.26 $ 119.26 $ 135.29 $ 157.63 $ 183.18
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 289 386 548 655 752 854
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 97.03 126.78 $ 155.42 $ 198.12 $ 252.88 $ 312.81
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 948 1,989 3,457 4,765 5,808 6,502
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 95.10 $ 112.97 $ 117.25 $ 130.98 $ 147.17 $ 159.92
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 325 491 567 553 661 752
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 100.95 $ 135.94 $ 164.12 $ 214.66 $ 271.24 $ 322.15
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 47 592 1,486 2,686 3,805 4,579
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 104.12 $ 122.06 $ 138.00 $ 151.87 $ 182.50 $ 249.93
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,305 2,121 2,995 3,369 3,395 3,509
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 98.86 $ 121.02 $ 143.37 $ 179.30 $ 213.81 $ 250.31
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 210 498 975 1,800 2,475 3,095
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 96.31 $ 120.08 $ 133.40 $ 153.69 $ 180.63 $ 225.59
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,023 2,113 3,325 3,704 3,962 4,231
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-2 Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
SERIES 300 AND 400 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
(CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
DECEMBER 31,
-----------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE HIGH YIELD
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 95.88 $ 113.44 $ 137.53 $ 160.74 $ 150.42 $ 143.43
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 99 209 444 831 1,164 34
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT
SECURITIES
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 98.19 $ 109.80 $ 112.40 $ 118.98 $ 126.48 $ 124.96
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 32 89 146 202 314 360
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------
Unit value -- $ 104.15 $ 112.83 $ 107.92 $ 117.72 $ 160.04
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 141 763 968 971 926
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 102.61 $ 107.04 $ 111.21 $ 115.66 $ 120.19 $ 124.47
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 63 81 165 146 262 360
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE QUALITY BOND
- ------------------------------------------------------------------------------------------------------------------
Unit value $ 93.87 $ 108.38 $ 112.65 $ 121.30 $ 130.07 $ 125.76
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 53 135 196 283 557 622
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH
- ------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 125.55 $ 118.57 $ 149.54
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 488 1,101 976
- ------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- ------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- $ 116.36
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- -- -- 887
- ------------------------------------------------------------------------------------------------------------------
CALVERT SOCIALLY RESPONSIBLE
- ------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- $ 107.58
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- -- -- 4
- ------------------------------------------------------------------------------------------------------------------
CAPITAL GUARDIAN U.S. EQUITY
- ------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- $ 101.64
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- -- -- 13
- ------------------------------------------------------------------------------------------------------------------
CAPITAL GUARDIAN RESEARCH
- ------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- $ 106.78
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- -- -- 8
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-3 Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
SERIES 300 AND 400 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
(CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
DECEMBER 31,
---------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/EVERGREEN
- ----------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- $ 106.57
- ----------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- -- -- 5
- ----------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN FOUNDATION
- ----------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- $ 105.16
- ----------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- -- -- 1
- ----------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES
- ----------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 121.34 $ 161.04 $ 275.93
- ----------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 256 1,090 2,427
- ----------------------------------------------------------------------------------------------------------------
MFS GROWTH WITH INCOME
- ----------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- $ 104.48
- ----------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- -- -- 18
- ----------------------------------------------------------------------------------------------------------------
MFS RESEARCH
- ----------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 115.01 $ 140.83 $ 171.06
- ----------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 236 720 959
- ----------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY
- ----------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 115.97 $ 127.67 $ 149.82
- ----------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 145 444 617
- ----------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY
- ----------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 103.77 $ 109.37 $ 130.94
- ----------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 52 84 88
- ----------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS
EQUITY
- ----------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 79.41 $ 57.18 $ 110.43
- ----------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 109 217 590
- ----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED
- ----------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 113.46 $ 125.16 $ 123.53
- ----------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 109 275 345
- ----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- ----------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 115.17 $ 128.20 $ 124.76
- ----------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 250 581 640
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-4 Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
SERIES 300 AND 400 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
(CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
DECEMBER 31,
---------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
T. ROWE PRICE EQUITY INCOME
- ------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 121.04 $ 130.25 $ 133.07
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 475 1,070 1,072
- ------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK
- ------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 97.61 $ 109.49 $ 142.46
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 387 671 765
- ------------------------------------------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE
- ------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 118.06 $ 104.82 $ 105.28
- ------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 577 859 721
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-5 Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
SERIES 100 AND 200 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
DECEMBER 31,
----------------------------------------------------------------
1990 1991 1992 1993 1994
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- --------------------------------------------------------------------------------------------
Unit value $ 27.36 $ 50.51 $ 48.30 $ 55.68 $ 52.88
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 9,545 12,962 17,986 21,496 24,787
- --------------------------------------------------------------------------------------------
ALLIANCE COMMON
STOCK
- --------------------------------------------------------------------------------------------
Unit value $ 75.67 $102.76 $ 104.63 $ 128.81 $ 124.32
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 9,670 10,292 11,841 13,917 15,749
- --------------------------------------------------------------------------------------------
ALLIANCE
CONSERVATIVE
INVESTORS
- --------------------------------------------------------------------------------------------
Unit value -- -- -- -- $ 95.10
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- 325
- --------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX
- --------------------------------------------------------------------------------------------
Unit value -- -- -- -- $ 100.95
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- 47
- --------------------------------------------------------------------------------------------
ALLIANCE GLOBAL
- --------------------------------------------------------------------------------------------
Unit value -- -- -- -- $ 104.12
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- 1,305
- --------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND
INCOME
- --------------------------------------------------------------------------------------------
Unit value -- -- -- -- $ 98.86
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- 210
- --------------------------------------------------------------------------------------------
ALLIANCE GROWTH
INVESTORS
- --------------------------------------------------------------------------------------------
Unit value -- -- -- -- $ 96.31
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- 1,023
- --------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD
- --------------------------------------------------------------------------------------------
Unit value -- -- -- -- $ 95.88
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- 99
- --------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------
DECEMBER 31,
-----------------------------------------------------------------
1995 1996 1997 1998 1999
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK
- --------------------------------------------------------------------------------------------
Unit value $ 68.73 $ 82.91 $ 90.75 $ 89.92 $ 105.59
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 25,821 27,945 28,030 25,634 20,946
- --------------------------------------------------------------------------------------------
ALLIANCE COMMON
STOCK
- --------------------------------------------------------------------------------------------
Unit value $ 162.42 $ 199.05 $ 253.68 $ 323.75 $ 399.74
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 16,292 16,933 17,386 17,231 16,705
- --------------------------------------------------------------------------------------------
ALLIANCE
CONSERVATIVE
INVESTORS
- --------------------------------------------------------------------------------------------
Unit value $ 112.97 $ 117.25 $ 130.98 $ 147.17 $ 159.92
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 491 567 553 661 752
- --------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX
- --------------------------------------------------------------------------------------------
Unit value $ 135.94 $ 164.12 $ 214.66 $ 271.24 $ 322.15
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 592 1,486 2,686 3,805 4,579
- --------------------------------------------------------------------------------------------
ALLIANCE GLOBAL
- --------------------------------------------------------------------------------------------
Unit value $ 122.06 $ 138.00 $ 151.87 $ 182.50 $ 249.93
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 2,121 2,995 3,369 3,395 3,509
- --------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND
INCOME
- --------------------------------------------------------------------------------------------
Unit value $ 121.02 $ 143.37 $ 179.30 $ 213.81 $ 250.31
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 498 975 1,800 2,475 3,095
- --------------------------------------------------------------------------------------------
ALLIANCE GROWTH
INVESTORS
- --------------------------------------------------------------------------------------------
Unit value $ 120.08 $ 133.40 $ 153.69 $ 180.63 $ 225.59
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 2,113 3,325 3,704 3,962 4,231
- --------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD
- --------------------------------------------------------------------------------------------
Unit value $ 113.44 $ 137.53 $ 160.74 $ 150.42 $ 143.43
- --------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 209 444 831 1,164 998
- --------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-6 Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
SERIES 100 AND 200 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
(CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
DECEMBER 31,
-----------------------------------------------------------------
1990 1991 1992 1993 1994
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ALLIANCE
INTERMEDIATE
GOVERNMENT
SECURITIES
- ------------------------------------------------------------------------------------------
Unit value -- -- -- -- $ 98.19
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- 32
- ------------------------------------------------------------------------------------------
ALLIANCE
INTERNATIONAL
- ------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------
ALLIANCE MONEY
MARKET
- ------------------------------------------------------------------------------------------
Unit value $ 23.38 $ 24.48 $ 25.01 $ 25.41 $ 26.08
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 1,307 1,325 1,201 1,065 1,000
- ------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER
GROWTH
- ------------------------------------------------------------------------------------------
Unit value
- ------------------------------------------------------------------------------------------
Number of unites
outstanding (000's)
- ------------------------------------------------------------------------------------------
ALLIANCE QUALITY
BOND
- ------------------------------------------------------------------------------------------
Unit value -- -- -- -- $ 93.87
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- 53
- ------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP
GROWTH
- ------------------------------------------------------------------------------------------
Unit value -- -- -- -- -
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- -
- ------------------------------------------------------------------------------------------
EQ/BALANCED
- ------------------------------------------------------------------------------------------
Unit value $ 19.40 $ 27.17 $ 26.04 $ 28.85 $ 26.18
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 19,423 21,100 25,975 31,259 32,664
- ------------------------------------------------------------------------------------------
CALVERT SOCIALLY
RESPONSIBLE
- ------------------------------------------------------------------------------------------
Unit Value
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's)
- ------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
- ------------------------------------------------------------------------------------------
DECEMBER 31,
----------------------------------------------------------------
1995 1996 1997 1998 1999
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
ALLIANCE
INTERMEDIATE
GOVERNMENT
SECURITIES
- ------------------------------------------------------------------------------------------
Unit value $ 109.80 $ 112.40 $ 118.98 $ 126.48 $ 124.96
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 89 146 202 314 360
- ------------------------------------------------------------------------------------------
ALLIANCE
INTERNATIONAL
- ------------------------------------------------------------------------------------------
Unit value $ 104.15 $ 112.83 $ 107.92 $ 117.72 $ 160.04
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 141 763 968 971 926
- ------------------------------------------------------------------------------------------
ALLIANCE MONEY
MARKET
- ------------------------------------------------------------------------------------------
Unit value $ 27.22 $ 28.28 $ 29.41 $ 30.55 $ 31.63
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 1,021 1,013 973 1,261 1,516
- ------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER
GROWTH
- ------------------------------------------------------------------------------------------
Unit value $ 116.36
- ------------------------------------------------------------------------------------------
Number of unites
outstanding (000's) 887
- ------------------------------------------------------------------------------------------
ALLIANCE QUALITY
BOND
- ------------------------------------------------------------------------------------------
Unit value $ 108.38 $ 112.65 $ 121.30 $ 130.07 $ 125.76
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 135 196 283 557 622
- ------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP
GROWTH
- ------------------------------------------------------------------------------------------
Unit value - - $ 125.55 $ 118.57 $ 149.64
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) - - 488 1,101 976
- ------------------------------------------------------------------------------------------
EQ/BALANCED
- ------------------------------------------------------------------------------------------
Unit value $ 30.92 $ 34.06 $ 38.66 $ 45.07 $ 52.39
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 30,212 28,319 26,036 24,361 22,434
- ------------------------------------------------------------------------------------------
CALVERT SOCIALLY
RESPONSIBLE
- ------------------------------------------------------------------------------------------
Unit Value $ 107.58
- ------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 4
- ------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-7 Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
SERIES 100 AND 200 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
(CONTINUED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
DECEMBER 31,
- -----------------------------------------------------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CAPITAL GUARDIAN U.S.
EQUITY
- -----------------------------------------------------------------------------------------------------------------------------
Unit value $ 101.64
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 13
- -----------------------------------------------------------------------------------------------------------------------------
CAPITAL GUARDIAN
RESEARCH
- -----------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.78
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 8
- -----------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN
- -----------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.57
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 5
- -----------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN
FOUNDATION
- -----------------------------------------------------------------------------------------------------------------------------
Unit value $ 105.16
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -
- -----------------------------------------------------------------------------------------------------------------------------
MFS EMERGING
GROWTH
COMPANIES
- -----------------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- -- -- $ 121.34 $ 101.04 $ 275.93
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- -- -- -- 256 1,090 2,427
- -----------------------------------------------------------------------------------------------------------------------------
MFS GROWTH WITH
INCOME
- -----------------------------------------------------------------------------------------------------------------------------
Unit value $ 104.48
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) 18
- -----------------------------------------------------------------------------------------------------------------------------
MFS RESEARCH
- -----------------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- -- -- $ 115.01 $ 140.83 $ 171.06
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- -- -- -- 236 720 959
- -----------------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE
EQUITY
- -----------------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- -- -- $ 115.97 $ 127.97 $ 149.82
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- -- -- -- 145 444 617
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-8 Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
SERIES 100 AND 200 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION
(CONTINUED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
DECEMBER 31,
-----------------------------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
MERCURY WORLD
STRATEGY
- -----------------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- -- -- $ 103.77 $ 109.37 $ 130.94
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- -- -- -- 52 84 88
- -----------------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY
EMERGING MARKETS
EQUITY
- -----------------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- -- -- $ 79.41 $ 57.18 $ 110.43
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- -- -- -- 109 217 590
- -----------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED
- -----------------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- -- -- $ 113.46 $ 125.16 $ 123.53
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- -- -- -- 109 275 345
- -----------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH &
INCOME VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- -- -- $ 115.17 $ 128.20 $ 124.76
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- -- -- -- 250 581 648
- -----------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY
INCOME
- -----------------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- -- -- $ 121.04 $ 130.25 $ 133.07
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- -- -- -- 475 1,070 1,072
- -----------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE
INTERNATIONAL
STOCK
- -----------------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- -- -- $ 97.61 $ 109.49 $ 142.46
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- -- -- -- 387 671 765
- -----------------------------------------------------------------------------------------------------------------------------
WARBURG PINCUS
SMALL COMPANY
VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- -- -- -- $ 118.06 $ 104.82 $ 105.28
- -----------------------------------------------------------------------------------------------------------------------------
Number of units
outstanding (000's) -- -- -- -- -- -- -- 577 859 721
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Appendix II: Original contracts
- --------
B-1 Appendix II: Original contracts
- --------------------------------------------------------------------------------
Original Contracts are EQUI-VEST contracts under which the contract owner has
not elected to add any new variable investment options. Therefore, only the
Alliance Money Market, EQ/Balanced, Alliance Common Stock and EQ/Aggressive
Stock variable investment options are available.
SELECTING YOUR INVESTMENT METHOD. If you own an original contract, only the
guaranteed interest option and the Alliance Money Market, EQ/Balanced, Alliance
Common Stock and EQ/Aggressive Stock options are available. In most cases, you
may request that we add additional variable investment options to your original
contract. We reserve the right to deny your request.
TRANSFERRING YOUR ACCOUNT VALUE. If you own an original contract, including
original contract owners who elect to amend their contract by selecting maximum
transfer flexibility, the Alliance Money Market option is always available.
However, we will not permit transfers into the Alliance Money Market option
from any other investment option. There will not be any other transfer
limitations under your original contract.
<PAGE>
Appendix III: Market value adjustment example
- --------
C-1 Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 had been
invested on June 14, 2001 to a fixed maturity option with a maturity date of
June 15, 2010 (i.e., nine years later) at a rate to maturity of 7.00%,
resulting in a maturity value at the maturity date of $183,846. We further
assume that a withdrawal of $50,000 is made four years later, on June 15, 2005.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
HYPOTHETICAL ASSUMED RATE
TO MATURITY ON JUNE 15,
2005
- ----------------------------------------------------------------------------------------------
5.00% 9.00%
- ----------------------------------------------------------------------------------------------
AS OF JUNE 15, 2005 (BEFORE WITHDRAWAL)
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
(1) Market adjusted amount $144,048 $ 119,487
- ----------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,080 $ 131,080
- ----------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,968 $ (11,593)
- ----------------------------------------------------------------------------------------------
ON JUNE 15, 2005 (AFTER WITHDRAWAL)
- ----------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,501 $ (4,851)
- ----------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount
[$50,000 - (4)] $ 45,499 $ 54,851
- ----------------------------------------------------------------------------------------------
(6) Fixed maturity amount (2) - (5) $ 85,581 $ 76,229
- ----------------------------------------------------------------------------------------------
(7) Maturity value $120,032 $ 106,915
- ----------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
- ----------------------------------------------------------------------------------------------
</TABLE>
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a negative market value
adjustment is realized. On the other hand, if a withdrawal is made when rates
have decreased from 7.00% to 5.00% (left column), a positive market value
adjustment is realized.
<PAGE>
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
Additional loan provisions 2
Tax rules: special aspects 4
Required minimum distributions option 5
Calculation of annuity payments 6
The reorganization 8
Custodian and independent accountants 9
Alliance Money Market option yield information 9
Other yield information 10
Financial statements 17
</TABLE>
HOW TO OBTAIN AN EQUI-VEST STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE
ACCOUNT A
Call 1-800-628-6673 or send this request form to:
EQUI-VEST
Employer Sponsored Programs
Processing Office
The Equitable Life
P.O. Box 2996
New York, NY 10116-2996
................................................................................
Please send me an EQUI-VEST Statement of Additional Information dated May 1,
2000
(Employer-Sponsored Retirement Programs)
- ------------------------------------------------------------------------------
Name:
- ------------------------------------------------------------------------------
Address:
- ------------------------------------------------------------------------------
City State Zip
888-1285A (5/00)
<PAGE>
EQUI-VEST(TM)
Employer-Sponsored Retirement Programs
TSA ADVANTAGE(SM)
SUPPLEMENT DATED MAY 1, 2000
TO THE PROSPECTUS DATED MAY 1, 2000
- --------------------------------------------------------------------------------
This supplement adds and modifies certain information contained in the
prospectus dated May 1, 2000 for the EQUI-VEST deferred annuity contract issued
by THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES.
We offer the series 600 TSA Advantage contract to fund all Section 403(b) plans
sponsored by Section 501(c)(3) tax-exempt organizations, except those plans
sponsored by primary or secondary schools. It is also available to
post-secondary public educational institutions described in Section
403(b)(1)(A)(ii) of the Internal Revenue Code with more than 500 employees
eligible to participate. For plans sponsored by a hospital or other health care
organization qualified or intended to qualify under Section 501(c)(3) of the
Internal Revenue Code, the TSA Advantage contract will be available only when
the employer makes contributions to the 403(b) plan (whether on a matching or
non-elective contribution basis) or makes a contribution to a plan qualified
under 401(a) of the Internal Revenue Code, matching employee elective deferrals
in the 403(b) plan. Under the TSA Advantage contract, contributions including
rollover contributions and direct transfer contributions from existing Section
403(b) plans (programs or arrangements) may be accepted only if the
contributions are fully vested under the existing TSA plan. The TSA Advantage
contract may not currently be available in your state. Your financial
professional can provide information about state availability.
For Section 403(b) plans offered for hospital and health care facility
employees, non-salary reduction (employer contributions) must be made. TSA
Advantage is available only to employees of employers that currently have, or
within the first contract year are expected to have, at least 50 participants.
Employees in Section 403(b) plans that do not meet these requirements are only
eligible for TSA series 100 and 200 contracts. Subject to a written agreement
between Equitable Life and an employer sponsoring a 403(b) plan that uses an
EQUI-VEST TSA Advantage contract as a funding vehicle for plan assets, Equitable
Life may reimburse that employer for certain expenses associated with that
employer's plan, for example recordkeeping or other administrative services. Any
such reimbursement will not exceed ten dollars for each EQUI-VEST TSA Advantage
contract issued to a participant of that employer's 403(b) plan.
- --------------------------------------------------------------------------------
A participant is an individual who participates in an employer's plan funded by
an EQUI-VEST contract. The participant is also the annuitant who is the
measuring life for determining annuity benefits.
- --------------------------------------------------------------------------------
We may at some future time, under certain circumstances and subject to
applicable law, allow a current owner of a series 100 or series 200 TSA contract
to exchange it for a TSA Advantage contract. An exchange for a TSA Advantage
contract may or may not be advantageous to you, based on all the circumstances,
including a comparison of contractual terms and conditions, and charges and
deductions. We will provide additional information upon request at such time as
exchanges may be permitted.
---------------------------------
See "Tax information" in the prospectus for a more detailed discussion of
sources of contributions, certain contribution limitations and other tax
information for TSA contracts.
We offer the EQUI-VEST TSA Advantage contract to purchasers on the same basis
and under the same terms and conditions described in the prospectus as those
that apply to the EQUI-VEST series 100 and 200 TSA contracts, except for certain
material differences. Terms we use in this supplement have the same meaning as
in the prospectus, unless we indicate otherwise.
Material differences between TSA Advantage and the provisions of the EQUI-VEST
TSA series 100 and 200 contracts described in the prospectus include the
information above as well as the following:
72241
<PAGE>
- -----
2
- --------------------------------------------------------------------------------
THE FOLLOWING IS ADDED TO "EQUI-VEST EMPLOYER-SPONSORED RETIREMENT PROGRAMS AT A
GLANCE - KEY FEATURES" UNDER "FEES AND CHARGES" ON PAGE 11 OF THE PROSPECTUS:
- --------------------------------------------------------------------------------
Fees and charges under series 600 o Daily charge on amounts invested in
variable investment options for
mortality and expense risks and
other expenses at a current annual
rate of 1.20% currently (2%
maximum).
o Annual administrative charge: $30
currently or 2% of the account
value, if less ($65 maximum).
o Charge for third-party transfer
(such as in the case of a
trustee-to-trustee transfer for an
IRA contract) or exchange (if your
contract is exchanged for a
contract issued by another
insurance company): none currently
($65 maximum).
o No sales charge deducted at the
time you make contributions.
o Withdrawal charge: We deduct a
charge equal to 6% of the amount
withdrawn or the defaulted loan
amount in the first six contract
years. The total of all withdrawal
charges may not exceed 8% of all
contributions made in the first six
contract years. Under certain
circumstances the withdrawal charge
will not apply. They are discussed
in "Charges and expenses" later in
this supplement.
o We deduct a charge designed to
approximate certain taxes that may
be imposed on us, such as premium
taxes in your state. The charge is
generally deducted from the amount
applied to an annuity payout
option.
o We deduct a $350 annuity
administrative fee from amounts
applied to a variable annuity
payout option.
o Annual expenses of EQ Advisors
Trust portfolios are calculated as
a percentage of the average daily
net assets invested in each
portfolio. These expenses include
management fees ranging from 0.25%
to 1.15% annually, 12b-1 fees of
0.25% annually, and other expenses.
- --------------------------------------------------------------------------------
<PAGE>
THE FOLLOWING TABLE AND EXAMPLES ARE ADDED AFTER "IF YOU ELECT A VARIABLE
ANNUITY PAYOUT OPTION:" ON PAGE 18 OF THE PROSPECTUS:
Fee table
- -----
3
- --------------------------------------------------------------------------------
The fee table below will help you understand the various charges and expenses
that apply to the series 600 TSA Advantage contract. The table reflects charges
you will directly incur under the contract, as well as charges and expenses of
the portfolios that you will bear indirectly. Charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state,
may also apply. Also, an annuity administrative fee may apply when your annuity
payments are to begin. Each of the charges and expenses is more fully described
in "Charges and expenses" later in this supplement.
The guaranteed interest option and fixed maturity options discussed in the
prospectus are not covered by the fee table and examples. However, the annual
administrative charge and the withdrawal charge do apply to the guaranteed
interest and the fixed maturity options. Also, an annuity administrative fee may
apply when your annuity payments are to begin. A market value adjustment (up or
down) may apply as a result of a withdrawal, transfer or surrender of amounts
from a fixed maturity option.
EQUI-VEST SERIES 600 CONTRACTS
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN ANNUAL
PERCENTAGE OF DAILY NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risk(1) 0.95%
Other expenses 0.25%
----
Total Separate Account A annual expenses 1.20% current (2.00% maximum)
- -------------------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
- -------------------------------------------------------------------------------------------------------------------------------
Annual administrative charge(2) $30 current or 2% of your account
value, if less ($65
maximum, per occurrence)
- -------------------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge(3) 6%
Charge for third-party transfer or exchange(4) None currently ($65 maximum per
occurrence)
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
4
- --------------------------------------------------------------------------------
CLASS IB SHARES ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
TOTAL
MANAGEMENT OTHER ANNUAL
FEES(5) 12B-1 FEE(6) EXPENSES(7) EXPENSES(6)(8)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 0.60% 0.25% 0.04% 0.89%
Alliance Common Stock 0.46% 0.25% 0.04% 0.75%
Alliance Conservative Investors 0.60% 0.25% 0.07% 0.92%
Alliance Equity Index 0.25% 0.25% 0.05% 0.55%
Alliance Global 0.73% 0.25% 0.09% 1.07%
Alliance Growth and Income 0.59% 0.25% 0.05% 0.89%
Alliance Growth Investors 0.57% 0.25% 0.05% 0.87%
Alliance High Yield 0.60% 0.25% 0.05% 0.90%
Alliance Intermediate Government Securities 0.50% 0.25% 0.07% 0.82%
Alliance International 0.85% 0.25% 0.20% 1.30%
Alliance Money Market 0.34% 0.25% 0.05% 0.64%
EQ/Alliance Premier Growth 0.90% 0.25% 0.00% 1.15%
Alliance Quality Bond 0.53% 0.25% 0.05% 0.83%
Alliance Small Cap Growth 0.75% 0.25% 0.07% 1.07%
EQ/Alliance Technology 0.90% 0.25% 0.00% 1.15%
EQ/Balanced 0.57% 0.25% 0.05% 0.87%
Calvert Socially Responsible 0.65% 0.25% 0.15% 1.05%
Capital Guardian Research 0.65% 0.25% 0.05% 0.95%
Capital Guardian U.S. Equity 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen Foundation 0.60% 0.25% 0.10% 0.95%
MFS Emerging Growth Companies 0.65% 0.25% 0.10% 1.00%
MFS Growth with Income 0.60% 0.25% 0.10% 0.95%
MFS Research 0.65% 0.25% 0.05% 0.95%
Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
Mercury World Strategy 0.70% 0.25% 0.25% 1.20%
Morgan Stanley Emerging Markets Equity 1.15% 0.25% 0.35% 1.75%
EQ/Putnam Balanced 0.60% 0.25% 0.05% 0.90%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% 0.95%
T. Rowe Price Equity Income 0.60% 0.25% 0.10% 0.95%
T. Rowe Price International Stock 0.85% 0.25% 0.15% 1.25%
Warburg Pincus Small Company Value 0.75% 0.25% 0.10% 1.10%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
5
- --------------------------------------------------------------------------------
- ----------
Notes:
(1) A portion of this charge is for providing the death benefit.
(2) The charge is the lesser of $30 or 2% of account value. We reserve the
right to increase this charge to an annual maximum of $65.
(3) This charge applies to withdrawn contributions that were made in the
current and five prior contract years. This charge is deducted upon a
withdrawal of amounts, or defaulted loan amounts, in excess of the 10%
free withdrawal amount. Important exceptions and limitations may eliminate
or reduce this charge.
(4) We do not currently impose a third-party transfer or exchange charge.
However, we reserve the right to impose a charge in the future, but the
charge may not exceed a maximum of $65 for each occurrence.
(5) The management fees shown reflect revised management fees, effective on or
about May 1, 2000 which were approved by shareholders. The management fees
shown for EQ/Putnam Balanced, EQ/Putnam Growth & Income Value, Warburg
Pincus Small Company Value and T. Rowe Price International Stock do not
reflect the waiver of a portion of each portfolio's investment management
fees that is currently in effect. The management fee for each portfolio
cannot be increased without a vote of that portfolio's shareholders.
(6) Portfolio shares are all subject to fees imposed under the distribution
plan (the "Rule 12b-1 Plan") adopted by EQ Advisors Trust pursuant to Rule
12b-1 under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts. Prior to October 18, 1999, the
total annual expenses for the Alliance Small Cap Growth portfolio were
limited to 1.20% under an expense limitation arrangement related to that
portfolio's Rule 12b-1 Plan. The arrangement is no longer in effect. The
amounts shown have been restated to reflect the expenses that would have
been incurred in 1999, absent the expense limitation arrangement.
(7) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. See footnote (8) for any expense limitation
agreements.
On October 18, 1999, the Alliance portfolios (other than EQ/Alliance
Premier Growth and EQ/Alliance Technology) became part of the portfolios
of EQ Advisors Trust. The "Other Expenses" for these portfolios have been
restated to reflect the estimated expenses that would have been incurred
had these portfolios been portfolios of EQ Advisors Trust for the entire
year ended December 31, 1999. The restated expenses reflect an increase of
0.01% for each of these portfolios.
(8) Equitable Life, EQ Advisors Trust's manager, has entered into an expense
limitation agreement with respect to certain portfolios. Under this
agreement Equitable Life has agreed to waive or limit its fees and assume
other expenses. Under the expense limitation agreement, total annual
operating expenses of certain portfolios (other than interest, taxes,
brokerage commissions, capitalized expenditures and extraordinary
expenses) are limited as a percentage of the average daily net assets of
each of the following portfolios: 1.75% for Morgan Stanley Emerging
Markets Equity; 1.25% for T. Rowe Price International Stock; 1.20% for
Mercury World Strategy; 1.15% for EQ/Alliance Premier Growth and
EQ/Alliance Technology; 1.10% for Warburg Pincus Small Company Value;
1.05% for Calvert Socially Responsible; 1.00% for MFS Emerging Growth
Companies; 0.95% for Capital Guardian U.S. Equity, Capital Guardian
Research, EQ/Evergreen, EQ/Evergreen Foundation, MFS Growth with Income,
MFS Research, Mercury Basic Value Equity, EQ/Putnam Growth & Income Value
and T. Rowe Price Equity Income; and 0.90% for EQ/Putnam Balanced. The
expense limitations for the EQ/Putnam Growth & Income Value, Mercury Basic
Value Equity, MFS Growth with Income, MFS Research, MFS Emerging Growth
Companies, T. Rowe Price Equity Income, T. Rowe Price International Stock
and Warburg Pincus Small Company Value, portfolios reflect an increase
effective on May 1, 2000. The expense limitation for the EQ/Evergreen
portfolio reflects a decrease effective on May 1, 2000.
Absent the expense limitation, the "Other Expenses" for 1999 on an
annualized basis for each of the portfolios would have been as follows:
1.00% for Morgan Stanley Emerging Markets Equity; 0.30% for T. Rowe Price
International Stock; 0.66% for Capital Guardian International; 0.46% for
Mercury World Strategy; 0.23% for EQ/Alliance Premier Growth; 0.10% for
EQ/Alliance Technology; 0.24% for Warburg Pincus Small Company Value;
4.45% for Calvert Socially Responsible; 0.17% for MFS Emerging Growth
Companies; 0.34% for Capital Guardian U.S. Equity; 0.47% for Capital
Guardian Research; 1.87% for EQ/Evergreen; 1.07% for EQ/Evergreen
Foundation; 0.37% for MFS Growth with Income; 0.17% for MFS Research;
0.17% for Mercury Basic Value Equity; 0.16% for EQ/Putnam Growth & Income
Value; 0.21% for T. Rowe Price Equity Income; and 0.28% for EQ/Putnam
Balanced. Initial seed capital was invested on April 30, 1999 for the
EQ/Alliance Premier Growth, Capital Guardian U.S. Equity and Capital
Guardian Research portfolios and will be invested on May 1, 2000 for the
EQ/Alliance Technology portfolio and therefore expenses have been
estimated.
Each portfolio may at a later date make a reimbursement to Equitable Life
for any of the management fees waived or limited and other expenses
assumed and paid by Equitable Life pursuant to the expense limitation
agreement provided, that among other things, such portfolio has reached
sufficient size to permit such reimbursement to be made and provided that
the portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such portfolio. For more
information see the prospectus for EQ Advisors Trust.
<PAGE>
- -----
6
- --------------------------------------------------------------------------------
EXAMPLES: EQUI-VEST SERIES 600 CONTRACTS
For the series 600 TSA Advantage contract, the examples show the expenses that a
hypothetical contract owner would pay in the situations illustrated. We assume a
single contribution of $1,000 is invested in one of the variable investment
options listed and a 5% annual return is earned on assets in that option.(1) The
annual administrative charge is based on charges that apply to a mix of
estimated contract sizes, resulting in an estimated administrative charge for
the purpose of these examples of $0.51 per $1,000. We also assume there is no
waiver of the withdrawal charge. Total Separate Account A expenses used to
compute the example below are the maximum expenses rather than the lower current
expenses. The series 600 contracts were first offered in July 1998.
These examples should not be considered a representation of past or future
expense for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
-----------------------------------------------
Class IB Shares 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 85.90 $ 151.54 $ 219.71 $ 336.63
Alliance Common Stock $ 84.51 $ 147.42 $ 212.96 $ 322.77
Alliance Conservative Investors $ 86.20 $ 152.42 $ 221.16 $ 339.57
Alliance Equity Index $ 82.52 $ 141.53 $ 203.24 $ 302.61
Alliance Global $ 87.69 $ 156.81 $ 228.34 $ 354.16
Alliance Growth and Income $ 85.90 $ 151.54 $ 219.71 $ 336.63
Alliance Growth Investors $ 85.70 $ 150.95 $ 218.75 $ 334.66
Alliance High Yield $ 86.00 $ 151.83 $ 220.19 $ 337.61
Alliance Intermediate Government Securities $ 85.20 $ 149.48 $ 216.34 $ 329.72
Alliance International $ 89.97 $ 163.51 $ 239.26 $ 376.10
Alliance Money Market $ 83.42 $ 144.18 $ 207.62 $ 311.73
EQ/Alliance Premier Growth $ 88.48 $ 159.15 - -
Alliance Quality Bond $ 85.30 $ 149.78 $ 216.82 $ 330.71
Alliance Small Cap Growth $ 87.69 $ 156.81 $ 228.34 $ 354.16
EQ/Alliance Technology $ 88.48 $ 159.15 - -
EQ/Balanced $ 85.70 $ 150.95 $ 218.75 $ 334.66
Calvert Socially Responsible $ 87.49 $ 156.22 - -
Capital Guardian Research $ 86.49 $ 153.30 - -
Capital Guardian U.S. Equity $ 86.49 $ 153.30 - -
EQ/Evergreen $ 86.49 $ 153.30 $ 222.60 $ 342.51
EQ/Evergreen Foundation $ 86.49 $ 153.30 $ 222.60 $ 342.51
MFS Emerging Growth Companies $ 86.99 $ 154.76 $ 224.99 $ 347.38
MFS Growth with Income $ 86.49 $ 153.30 $ 222.60 $ 342.51
MFS Research $ 86.49 $ 153.30 $ 222.60 $ 342.51
Mercury Basic Value Equity $ 86.49 $ 153.30 $ 222.60 $ 342.51
Mercury World Strategy $ 88.98 $ 160.60 $ 234.52 $ 366.63
Morgan Stanley Emerging Markets Equity $ 94.44 $ 176.54 $ 260.31 $ 417.55
EQ/Putnam Balanced $ 86.00 $ 151.83 $ 220.19 $ 337.61
EQ/Putnam Growth & Income Value $ 86.49 $ 153.30 $ 222.60 $ 342.51
T. Rowe Price Equity Income $ 86.49 $ 153.30 $ 222.60 $ 342.51
T. Rowe Price International Stock $ 89.47 $ 162.06 $ 236.89 $ 371.38
Warburg Pincus Small Company Value $ 87.98 $ 157.69 $ 229.77 $ 357.06
- --------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
------------------------------------------------
Class IB Shares 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 30.87 $ 94.38 $ 160.35 $ 336.63
Alliance Common Stock $ 29.40 $ 90.02 $ 153.16 $ 322.77
Alliance Conservative Investors $ 31.18 $ 95.31 $ 161.88 $ 339.57
Alliance Equity Index $ 27.30 $ 83.76 $ 142.82 $ 302.61
Alliance Global $ 32.75 $ 99.97 $ 169.52 $ 354.16
Alliance Growth and Income $ 30.87 $ 94.38 $ 160.35 $ 336.63
Alliance Growth Investors $ 30.66 $ 93.76 $ 159.32 $ 334.66
Alliance High Yield $ 30.97 $ 94.69 $ 160.86 $ 337.61
Alliance Intermediate Government Securities $ 30.13 $ 92.20 $ 156.76 $ 329.72
Alliance International $ 35.17 $ 107.08 $ 181.13 $ 376.10
Alliance Money Market $ 28.24 $ 86.58 $ 147.49 $ 311.73
EQ/Alliance Premier Growth $ 33.59 $ 102.44 - -
Alliance Quality Bond $ 30.24 $ 92.51 $ 157.27 $ 330.71
Alliance Small Cap Growth $ 32.75 $ 99.97 $ 169.52 $ 354.16
EQ/Alliance Technology $ 33.59 $ 102.44 - -
EQ/Balanced $ 30.66 $ 93.76 $ 159.32 $ 334.66
Calvert Socially Responsible $ 32.54 $ 99.35 - -
Capital Guardian Research $ 31.49 $ 96.24 - -
Capital Guardian U.S. Equity $ 31.49 $ 96.24 - -
EQ/Evergreen $ 31.49 $ 96.24 $ 163.41 $ 342.51
EQ/Evergreen Foundation $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Emerging Growth Companies $ 32.02 $ 97.80 $ 165.96 $ 347.38
MFS Growth with Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Research $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury Basic Value Equity $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury World Strategy $ 34.12 $ 103.99 $ 176.10 $ 366.63
Morgan Stanley Emerging Markets Equity $ 39.89 $ 120.89 $ 203.53 $ 417.55
EQ/Putnam Balanced $ 30.97 $ 94.69 $ 160.86 $ 337.61
EQ/Putnam Growth & Income Value $ 31.49 $ 96.24 $ 163.41 $ 342.51
T. Rowe Price Equity Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
T. Rowe Price International Stock $ 34.64 $ 105.53 $ 178.62 $ 371.38
Warburg Pincus Small Company Value $ 33.07 $ 100.90 $ 171.04 $ 357.06
- -------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
7
- --------------------------------------------------------------------------------
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity at the end of any of the periods shown in the
examples. This is because if the amount applied to purchase an annuity
payout option is less than $2,000, or the initial payment is less than
$20, we may pay the amount to you in a single sum instead of as payments
under an annuity payout option. See "Accessing your money."
IF YOU ELECT A VARIABLE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued (see note (1) above), and you
elect a variable annuity payout option, the expenses shown in the above example
of "if you do not surrender your contract" would, in each case, be increased by
$4.34 based on the average amount applied to annuity payout options in 1999. See
"Annuity administrative fee" in "Charges and expenses."
CONDENSED FINANCIAL INFORMATION
Please see the Appendix at the end of this supplement for unit values and number
of units outstanding as of the period shown for each of the variable investment
options, available as of December 31, 1999.
<PAGE>
THE FOLLOWING IS ADDED AFTER THE INFORMATION UNDER "VARIABLE ANNUITY
ADMINISTRATIVE FEE" ON PAGE 49 OF THE PROSPECTUS:
Charges and expenses
- -----
8
- --------------------------------------------------------------------------------
CHARGES UNDER SERIES 600 CONTRACTS
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the death benefit.
The daily charge is equivalent to a current annual rate of 0.95%.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity benefits than we planned. We may change the actuarial
basis for our guaranteed annuity payment tables, but only for new contributions
and only at five year intervals from the contract date. Lastly, we assume a
mortality risk to the extent that at the time of death, the guaranteed death
benefit exceeds the cash value of the contract. The expense risk we assume is
the risk that it will cost us more to issue and administer the contracts than we
expect.
To the extent that the mortality and expense risk charges are not needed to
cover the actual expenses incurred, they may be considered an indirect
reimbursement for certain sales and promotional expenses relating to the
contracts.
CHARGE FOR OTHER EXPENSES
We deduct this daily charge from the net assets in each variable investment
option. This charge, together with the annual administrative charge described
below, is for providing administrative and financial accounting services under
the contracts. The daily charge is equivalent to a maximum annual rate of 0.25%
of the net assets in each variable investment option.
MAXIMUM TOTAL CHARGES. The total annual rate for the above charges is currently
1.20%. We may increase or decrease this total annual rate, but we may not
increase it above a maximum rate of 2.00%. We will only make any increase after
we have sent you advance notice. Any increase or decrease will apply only after
the date of the change. Any changes we make will reflect differences in costs
and anticipated expenses, and will not be unfairly discriminatory.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on the last day of
each contract year. We will deduct a pro rata portion of the charge if you
surrender your contract, elect an annuity payout option, or the annuitant dies
during the contract year. We deduct the charge if your account value on the last
day of the contract year is less than $25,000 for TSA Advantage contracts. If
your account value on such date is $25,000 or more for TSA Advantage contracts,
we do not deduct the charge. The charge is equal to $30 or, if less, 2% of your
current account value plus any amount previously withdrawn during that contract
year.
The charge is deducted pro rata from the variable investment options and the
guaranteed interest option, unless you tell us otherwise. If these amounts are
insufficient, we will make up the required amounts from the fixed maturity
options to the extent you have value in those options, unless you tell us
otherwise.
We may increase this charge if our administrative costs rise, but the charge
will never exceed $65 annually. We reserve the right to deduct this charge on a
quarterly, rather than annual basis.
Also, we may reduce or eliminate the administrative charge when a TSA Advantage
contract is used by an employer and administrative services are performed by us
at a modified or minimum level. Any reduction or waiver we make will not be
unfairly discriminatory.
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE
There currently is no third-party transfer (such as in the case of a
trustee-to-trustee transfer for an IRA contract), or exchange (if your contract
is exchanged for a contract issued by another insurance company) charge for
series 600 contracts. However, we reserve the right to impose this charge in the
future, but it may not exceed a maximum of $65 per occurrence, subject to any
law that applies.
<PAGE>
- -----
9
- --------------------------------------------------------------------------------
WITHDRAWAL CHARGE FOR SERIES 600 CONTRACTS
A withdrawal charge may apply in three circumstances: (1) you make one or more
withdrawals during a contract year; (2) you terminate your contract; or (3) we
terminate your contract. The amount of the charge will depend on whether the
free withdrawal amount applies, and the availability of one or more exceptions.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the amount of the withdrawal charges
from your account value. Any amount deducted to pay withdrawal charges is also
subject to a withdrawal charge.
We deduct the amount of the withdrawal and the withdrawal charge pro rata from
the variable investment options and from the guaranteed interest option. If
these amounts are insufficient we will make up the required amounts from the
fixed maturity options in order of the earliest maturities date(s). If we will
make up the required amounts from the fixed maturity options, a market value
adjustment may apply. The withdrawal charge is equal to 6% of the amount
withdrawn or the defaulted loan amount during the first six contract years. In
the case of a surrender, we will pay the greater of (i) the account value after
the withdrawal charge has been imposed (cash value), or (ii) the free withdrawal
amount plus 94% of the remaining account value.
We reserve the right to change the amount of the withdrawal charge, but it will
not exceed 6% of the amount withdrawn or the defaulted loan amount. Any change
will not be unfairly discriminatory. Also, the total of all withdrawal charges
assessed will not exceed 8% of all contributions made in the first six contract
years.
10% FREE WITHDRAWAL AMOUNT. Each contract year, you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the time you request a
withdrawal, minus any other withdrawals made during the contract year.
EXCEPTIONS TO THE WITHDRAWAL CHARGE. A withdrawal charge will not apply upon any
of the events listed below:
o The annuitant retires under the terms of the TSA plan, or separates from
service;
o The annuitant reaches age 59 1/2 and completes at least five contract
years;
o The annuitant dies and a death benefit is payable to the beneficiary;
o We receive a properly completed election form providing for the account
value to be used to buy a life annuity;
o The annuitant reaches age 55 and completes at least five contract years
and we receive a properly completed election form providing for the
account value to be used to buy a period certain annuity. The period
certain annuity must extend beyond the annuitant's age 59 1/2 and must not
permit any prepayment of the unpaid principal before the annuitant reaches
age 59 1/2;
o The annuitant completes at least three contract years and we receive a
properly completed election form providing for the account value to be
used to buy a period certain annuity of at least 10 years which does not
permit any prepayment of the unpaid principal;
o A request is made for a refund of an excess contribution within one month
of the date on which the contribution is made;
o The annuitant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration;
o We receive proof satisfactory to us that the annuitant's life expectancy
is six months or less (such proof must include, but is not limited to,
certification by a licensed physician);
o The annuitant has been confined to a nursing home for more than 90 days
(or such other period, if required in your state) as verified by a
licensed physician. A nursing home for this purpose means one which is (a)
approved by
<PAGE>
- ------
10
- --------------------------------------------------------------------------------
Medicare as a provider of skilled nursing care service, or (b) licensed as a
skilled nursing home by the state or territory in which it is located (it must
be within the United States, Puerto Rico, U.S. Virgin Islands, or Guam) and
meets all of the following:
- - its main function is to provide skilled, intermediate, or custodial
nursing care;
- - it provides continuous room and board to three or more persons;
- - it is supervised by a registered nurse or licensed practical nurse;
- - it keeps daily medical records of each patient;
- - it controls and records all medications dispensed; and
- - its primary service is other than to provide housing for residents.
o The annuitant elects a withdrawal that qualifies as a hardship withdrawal
under the federal income tax rules.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by state and ranges from 0% to 1% (1% in Puerto
Rico and 5% in the U.S. Virgin Islands).
VARIABLE ANNUITY ADMINISTRATIVE FEE
We deduct a fee of up to $350 from the amount to purchase a variable annuity
payout option.
CHARGES THAT EQ ADVISORS TRUST DEDUCTS
EQ Advisors Trust deducts charges for the following types of fees and expenses:
o Investment advisory fees ranging from 0.25% to 1.15%.
o 12b-1 fees of 0.25% for Class IB shares.
o Operating expenses, such as trustees' fees, independent auditors' fees,
legal counsel fees, administrative service fees, custodian fees, and
liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of EQ Advisors Trust are purchased at their net asset value, these fees
and expenses are, in effect, passed on to the variable investment options and
are reflected in their unit values. For more information about these charges,
please refer to the prospectus for EQ Advisors Trust following the prospectus.
<PAGE>
THE FOLLOWING "INVESTMENT PERFORMANCE" INFORMATION REPLACES "INVESTMENT
PERFORMANCE" BEGINNING ON PAGE 82 OF THE PROSPECTUS:
Investment performance
- ------
11
- --------------------------------------------------------------------------------
We provide the following tables to show five different measurements of the
investment performance of the variable investment options and/or the portfolios
in which they invest. We include these tables because they may be of general
interest to you.
Table 1 shows the average annual total return of the variable investment
options. Average annual total return is the annual rate of growth that would be
necessary to achieve the ending value of a contribution invested in the variable
investment options for the periods shown.
Table 2 shows the growth of a hypothetical $1,000 investment in the variable
investment options over the periods shown. Both Tables 1 and 2 take into account
all current fees and charges under the contract, including the withdrawal
charge, if applicable, but do not reflect the charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state if
applicable or any applicable annuity administrative fee.
Tables 3, 4 and 5 show the rates of return of the variable investment options on
an annualized, cumulative, and year-by-year basis. These tables take into
account all current fees and charges under the contract, but do not reflect the
annual administrative charge and any withdrawal charge, or charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes in
your state or any applicable annuity administrative fee. If the charges were
reflected they would effectively reduce the rates of return shown.
In all cases the results shown are based on the actual historical investment
experience of the portfolios in which the variable investment options invest. In
some cases, the results shown relate to periods when the variable investment
options and/or the contracts were not available. In those cases, we adjusted the
results of the portfolios to reflect the charges under the contracts that would
have applied had the investment options and/or contracts been available.
Finally, the results shown for the Alliance Money Market, EQ/Balanced, Alliance
Common Stock and EQ/Aggressive Stock options for periods before those options
were operated as part of a unit investment trust reflect the results of the
separate accounts that preceded them. The "Since portfolio inception" figures
for these options are based on the date of inception of the preceding separate
accounts. We have adjusted these results to reflect the fee and expense
structure in effect for Separate Account A as a unit investment trust. See "The
reorganization" in the SAI for additional information.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth)
were part of The Hudson River Trust. On October 18, 1999, these portfolios
became corresponding portfolios of EQ Advisors Trust. In each case, the
performance shown is for the indicated EQ Advisors Trust portfolio and any
predecessors that it may have had.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
From time to time, we may advertise different measurements of the investment
performance options and/or the portfolios, including the measurements reflected
in the tables below.
THE PERFORMANCE INFORMATION SHOWN BELOW AND THE PERFORMANCE INFORMATION THAT WE
ADVERTISE REFLECT PAST PERFORMANCE AND DO NOT INDICATE HOW THE VARIABLE
INVESTMENT OPTIONS MAY PERFORM IN THE FUTURE. SUCH INFORMATION ALSO DOES NOT
REPRESENT THE RESULTS EARNED BY ANY PARTICULAR INVESTOR. YOUR RESULTS WILL
DIFFER.
BENCHMARKS
Tables 3 and 4 compare the performance of variable investment options to market
indices that serve as benchmarks.
Market indices are not subject to any charges for investment advisory fees,
brokerage commission or other operating expenses typically associated with a
managed portfolio. Also, they do not reflect other current charges such as the
mortality and expense risks and other expense charge,
<PAGE>
- ------
12
- --------------------------------------------------------------------------------
annual administration charge, or any withdrawal charge under the contracts.
Comparisons with these benchmarks, therefore, may be of limited use. We include
them because they are widely known and may help you to understand the universe
of securities from which each portfolio is likely to select its holdings.
Benchmark data reflect the reinvestment of dividend income. The benchmarks
include:
- --------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK: 50% Russell 2000 Index and 50% Standard
& Poor's Mid-Cap Total Return Index.
ALLIANCE COMMON STOCK: Standard & Poor's 500 Index.
ALLIANCE CONSERVATIVE INVESTORS: 70% Lehman Treasury Bond
Composite Index and 30% Standard & Poor's 500 Index.
ALLIANCE EQUITY INDEX: Standard & Poor's 500 Index.
ALLIANCE GLOBAL: Morgan Stanley Capital International World Index.
ALLIANCE GROWTH AND INCOME: 75% Standard & Poor's 500 Index
and 25% Value Line Convertibles Index.
ALLIANCE GROWTH INVESTORS: 30% Lehman Government/Corporate
Bond Index and 70% Standard & Poor's 500 Index.
ALLIANCE HIGH YIELD: Benchmark #1 - Merrill Lynch High Yield
Master Index and Benchmark #2 - Credit Suisse First Boston Global High Yield
Index.
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES: Lehman
Intermediate Government Bond Index.
ALLIANCE INTERNATIONAL: Morgan Stanley Capital International
Europe, Australia, Far East Index.
ALLIANCE MONEY MARKET: Salomon Brothers Three-Month T-Bill
Index.
EQ/ALLIANCE PREMIER GROWTH: Standard & Poor's 500 Index.
ALLIANCE QUALITY BOND: Lehman Aggregate Bond Index.
ALLIANCE SMALL CAP GROWTH: Russell 2000 Growth Index.
EQ/ALLIANCE TECHNOLOGY: NASDAQ Composite
EQ/BALANCED: 50% Standard & Poor's 500 and 50% Lehman
Government/Corporate Bond Index.
CALVERT SOCIALLY RESPONSIBLE: Standard & Poor's 500 Index
CAPITAL GUARDIAN RESEARCH: Standard & Poor's 500 Index.
CAPITAL GUARDIAN U.S. EQUITY: Standard & Poor's 500 Index.
EQ/EVERGREEN: Benchmark #1 - Russell 2000 Index and
Benchmark #2 - Standard & Poor's 500 Index.
EQ/EVERGREEN FOUNDATION: 60% Standard & Poor's 500
Index/40% Lehman Brothers Aggregate Bond Index.
MFS EMERGING GROWTH COMPANIES: Russell 2000 Index.
MFS GROWTH WITH INCOME: Standard & Poor's 500 Index.
MFS RESEARCH: Standard & Poor's 500 Index.
MERCURY BASIC VALUE EQUITY: Standard & Poor's 500 Index.
MERCURY WORLD STRATEGY: 36% Standard & Poor's 500 Index/24%
Morgan Stanley Capital International Europe, Australia, Far East
Index/21% Salomon Brothers U.S. Treasury Bond 1 Year+ 14%
Salomon Brothers World Government Bond (excluding U.S.)/and
5% Three-Month U.S. Treasury Bill.
MORGAN STANLEY EMERGING MARKETS EQUITY: Morgan Stanley
Capital International Emerging Markets Free Price Return Index.
EQ/PUTNAM BALANCED: 60% Standard & Poor's 500 Index and 40%
Lehman Government/Corporate Bond Index.
EQ/PUTNAM GROWTH & INCOME VALUE: Standard & Poor's 500
Index.
T. ROWE PRICE EQUITY INCOME: Standard & Poor's 500 Index.
T. ROWE PRICE INTERNATIONAL STOCK: Morgan Stanley Capital
International Europe, Australia, Far East Index.
WARBURG PINCUS SMALL COMPANY VALUE: Benchmark #1 -
Russell 2000 Index and Benchmark #2 - Russell 2000 Value Index.
- --------------------------------------------------------------------------------
LIPPER SURVEY. The Lipper Variable Insurance Products Performance Analysis
Survey (Lipper Survey) records the performance of a large group of variable
annuity products, including managed separate accounts of insurance companies.
According to Lipper Analytical Services, Inc. (Lipper), the data are presented
net of investment management fees, direct operating expenses and asset-based
charges applicable under annuity contracts. Lipper data provide a more accurate
picture than market benchmarks of the EQUI-VEST performance relative to other
variable annuity products.
<PAGE>
- -----
13
- --------------------------------------------------------------------------------
TABLE 1
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
LENGTH OF INVESTMENT PERIOD
---------------------------------------------------------------------------
SINCE SINCE
1 3 5 10 OPTION PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION* INCEPTION**
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock 8.58% 4.01% 11.43% 13.33% 14.69% 14.69%
- --------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock 14.39% 22.04% 23.64% 15.05% 15.27% 10.94%
- --------------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors 0.64% 6.59% 7.48% 6.28% 4.89% 6.36%
- --------------------------------------------------------------------------------------------------------------------------
Alliance Equity Index 9.99% 21.03% 23.44% - 20.67% 19.36%
- --------------------------------------------------------------------------------------------------------------------------
Alliance Global 26.56% 17.46% 15.92% 12.21% 13.36% 10.91%
- --------------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income 8.42% 16.03% 17.44% - 13.60% 13.38%
- --------------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors 15.66% 14.40% 15.24% 13.56% 11.35% 13.60%
- --------------------------------------------------------------------------------------------------------------------------
Alliance High Yield (11.69)% (2.53)% 4.99% 6.74% 3.00% 5.91%
- --------------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government Securities (8.51)% (0.44)% 1.61% - 0.88% 2.66%
- --------------------------------------------------------------------------------------------------------------------------
Alliance International 25.89% 7.97% - - 7.73% 8.04%
- --------------------------------------------------------------------------------------------------------------------------
Alliance Money Market (4.08)% (0.21)% 0.65% 1.60% 3.15% 3.15%
- --------------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond (10.47)% (0.30)% 2.66% - 0.77% 1.38%
- --------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth 16.90% - - - 7.64% 11.51%
- --------------------------------------------------------------------------------------------------------------------------
EQ/Balanced 7.63% 10.91% 11.58% 8.15% 9.43% 9.43%
- --------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies 60.59% - - - 39.39% 42.41%
- --------------------------------------------------------------------------------------------------------------------------
MFS Research 12.77% - - - 15.53% 17.83%
- --------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity 8.94% - - - 9.32% 11.83%
- --------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy 11.15% - - - 4.59% 6.33%
- --------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity 82.40% - - - (0.03)% (0.03)%
- --------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced (8.37)% - - - 2.79% 4.04%
- --------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (9.65)% - - - 2.66% 4.42%
- --------------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income (5.15)% - - - 5.35% 6.98%
- --------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock 20.79% - - - 8.62% 9.74%
- --------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value (6.75)% - - - (4.42)% (2.01)%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The variable investment option inception dates are: EQ/Aggressive Stock
(5/1/84), EQ/Balanced (5/1/84), Alliance Common Stock (8/27/81), Alliance
Conservative Investors (1/4/94), Alliance Equity Index (6/1/94), Alliance
Global (1/4/94), Alliance Growth and Income (1/4/94), Alliance Growth
Investors (1/4/94), Alliance High Yield (1/4/94), Alliance Intermediate
Government Securities (6/1/94), Alliance International (9/1/95), Alliance
Money Market (5/11/82), Alliance Quality Bond (1/4/94), Alliance Small
Cap Growth (6/2/97), MFS Emerging Growth Companies (6/2/97), MFS Research
(6/2/97), Mercury Basic Value Equity (6/2/97), Mercury World Strategy
(6/2/97), Morgan Stanley Emerging Markets Equity (8/20/97), EQ/Putnam
Balanced (6/2/97), EQ/Putnam Growth & Income Value (6/2/97), T. Rowe
Price Equity Income (6/2/97), T. Rowe Price International Stock (6/2/97),
Warburg Pincus Small Company Value (6/2/97). The inception dates for the
variable investment options that became available on or after 12/31/98
and are therefore not shown in this table are: EQ/Evergreen, EQ/Evergreen
Foundation, and MFS Growth with Income, EQ/Alliance Premier Growth,
Capital Guardian Research, Capital Guardian U.S. Equity and Calvert
Socially Responsible (8/30/99) and EQ/Alliance Technology (anticipated to
become available on or about 5/1/00).
<PAGE>
- ------
14
- --------------------------------------------------------------------------------
** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding
portfolios of EQ Advisors Trust on 10/18/99. The portfolio inception
dates are: EQ/Aggressive Stock (5/1/84), EQ/Balanced (5/1/84), Alliance
Common Stock (8/1/68), Alliance Conservative Investors (10/2/89),
Alliance Equity Index (3/1/94), Alliance Global (8/27/87), Alliance
Growth and Income (10/1/93), Alliance Growth Investors (10/2/89),
Alliance High Yield (1/2/87), Alliance Intermediate Government Securities
(4/1/91), Alliance International (4/3/95), Alliance Money Market
(5/11/82), Alliance Quality Bond (10/1/93), Alliance Small Cap Growth
(5/1/97), MFS Emerging Growth Companies (5/1/97), MFS Research (5/1/97),
Mercury Basic Value Equity (5/1/97), Mercury World Strategy (5/1/97),
Morgan Stanley Emerging Markets Equity (8/20/97), EQ/Putnam Balanced
(5/1/97), EQ/Putnam Growth & Income Value (5/1/97), T. Rowe Price Equity
Income (5/1/97), T. Rowe Price International Stock (5/1/97), Warburg
Pincus Small Company Value (5/1/97). The inception dates for the
portfolios that became available on or after 12/31/98 and are therefore
not shown in the tables are: EQ/Evergreen, EQ/Evergreen Foundation, and
MFS Growth with Income (12/31/98), EQ/Alliance Premier Growth, Capital
Guardian Research, and Capital Guardian U.S. Equity (4/30/99); and
Calvert Socially Responsible (8/30/99); and EQ/Alliance Technology
(5/1/00).
<PAGE>
- ------
15
- --------------------------------------------------------------------------------
TABLE 2
GROWTH OF $1,000 UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
LENGTH OF INVESTMENT PERIOD
-----------------------------------------------------------------------
SINCE
1 3 5 10 PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION*
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/Aggressive Stock $ 1,085.82 $ 1,125.17 $ 1,718.33 $ 3,495.28 $ 8,571.56
- ----------------------------------------------------------------------------------------------------------------------
Alliance Common Stock $ 1,143.87 $ 1,817.51 $ 2,888.87 $ 4,061.47 $ 26,069.65
- ----------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors $ 1,006.36 $ 1,210.96 $ 1,434.12 $ 1,838.49 $ 1,881.53
- ----------------------------------------------------------------------------------------------------------------------
Alliance Equity Index $ 1,099.93 $ 1,772.91 $ 2,866.02 - $ 2,809.53
- ----------------------------------------------------------------------------------------------------------------------
Alliance Global $ 1,265.57 $ 1,620.57 $ 2,093.13 $ 3,164.30 $ 3,591.14
- ----------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income $ 1,084.21 $ 1,561.98 $ 2,234.41 - $ 2,192.20
- ----------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors $ 1,156.61 $ 1,497.35 $ 2,032.02 $ 3,566.75 $ 3,693.95
- ----------------------------------------------------------------------------------------------------------------------
Alliance High Yield $ 883.13 $ 926.10 $ 1,275.76 $ 1,920.50 $ 2,109.55
- ----------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government Securities $ 914.94 $ 986.86 $ 1,082.97 - $ 1,258.05
- ----------------------------------------------------------------------------------------------------------------------
Alliance International $ 1,258.92 $ 1,258.57 - - $ 1,433.72
- ----------------------------------------------------------------------------------------------------------------------
Alliance Money Market $ 959.24 $ 993.83 $ 1,032.79 $ 1,171.83 $ 1,727.85
- ----------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond $ 895.29 $ 990.95 $ 1,140.18 - $ 1,089.50
- ----------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth $ 1,168.97 - - - $ 1,337.76
- ----------------------------------------------------------------------------------------------------------------------
EQ/Balanced $ 1,076.26 $ 1,364.15 $ 1,729.25 $ 2,188.11 $ 4,102.83
- ----------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies $ 1,605.89 - - - $ 2,571.24
- ----------------------------------------------------------------------------------------------------------------------
MFS Research $ 1,127.68 - - - $ 1,550.20
- ----------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity $ 1,089.44 - - - $ 1,348.05
- ----------------------------------------------------------------------------------------------------------------------
Mercury World Strategy $ 1,111.47 - - - $ 1,178.16
- ----------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity $ 1,823.97 - - - $ 999.29
- ----------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced $ 916.31 - - - $ 1,111.51
- ----------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value $ 903.52 - - - $ 1,122.61
- ----------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income $ 948.51 - - - $ 1,197.36
- ----------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock $ 1,207.87 - - - $ 1,281.80
- ----------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value $ 932.45 - - - $ 947.29
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
* Portfolio inception dates are shown in Table 1.
<PAGE>
- ------
16
- --------------------------------------------------------------------------------
TABLE 3
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK 17.12% 8.11% 14.59% 14.87% - 15.88%
- --------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Growth 51.65% 24.68% 19.97% 14.78% - 15.86%
- --------------------------------------------------------------------------------------------------------------------
Benchmark 18.09% 17.48% 19.92% 15.41% - 14.58%
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 23.38% 26.09% 26.25% 16.90% 16.72% 12.24%
- --------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% 26.87% 25.55% 16.90% 15.83% 15.16%
- --------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 27.56% 28.56% 18.21% 17.88% 16.19%
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS 8.55% 10.79% 10.85% 8.36% - 8.44%
- --------------------------------------------------------------------------------------------------------------------
Lipper Income 4.42% 11.65% 13.70% 10.10% - 10.15%
- --------------------------------------------------------------------------------------------------------------------
Benchmark 4.19% 12.07% 13.60% 10.75% - 10.68%
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX 18.64% 25.10% 26.02% - - 21.89%
- --------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index Funds 19.36% 25.86% 26.81% - - 23.89%
- --------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 27.56% 28.56% - - 24.14%
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 36.51% 21.69% 18.98% 14.16% - 12.80%
- --------------------------------------------------------------------------------------------------------------------
Lipper Global 44.62% 23.92% 20.57% 11.65% - 11.06%
- --------------------------------------------------------------------------------------------------------------------
Benchmark 24.93% 21.61% 19.76% 11.42% - 10.74%
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME 16.95% 20.30% 20.31% - - 15.46%
- --------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% 17.23% 20.50% - - 16.45%
- --------------------------------------------------------------------------------------------------------------------
Benchmark 20.71% 23.10% 25.01% - - 18.77%
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS 24.76% 18.73% 18.28% 15.31% - 15.32%
- --------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 10.45% 14.19% 15.15% 11.65% - 11.68%
- --------------------------------------------------------------------------------------------------------------------
Benchmark 13.77% 20.90% 22.15% 15.13% - 15.15%
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (4.74)% 1.32% 8.30% 8.66% - 7.80%
- --------------------------------------------------------------------------------------------------------------------
Lipper High Yield 3.65% 4.82% 8.59% 9.61% - 7.79%
- --------------------------------------------------------------------------------------------------------------------
Benchmark #1 1.57% 5.91% 9.61% 10.79% - 9.99%
- --------------------------------------------------------------------------------------------------------------------
Benchmark #2 3.28% 5.37% 9.07% 11.06% - 10.04%
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT
SECURITIES (1.31)% 3.49% 4.84% - - 4.75%
- --------------------------------------------------------------------------------------------------------------------
Lipper U.S. Government (2.60)% 4.04% 5.81% - - 5.89%
- --------------------------------------------------------------------------------------------------------------------
Benchmark 0.49% 5.50% 6.93% - - 6.76%
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERNATIONAL 35.79% 12.23% - - - 11.49%
- --------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% 18.74% - - - 16.13%
- --------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% 15.74% - - - 13.11%
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET 3.47% 3.73% 3.85% 3.67% - 5.15%
- --------------------------------------------------------------------------------------------------------------------
Lipper Money Market 3.78% 4.05% 4.16% 3.96% - 5.70%
- --------------------------------------------------------------------------------------------------------------------
Benchmark 4.74% 5.01% 5.20% 5.06% - 6.65%
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE QUALITY BOND (3.43)% 3.63% 5.92% - - 3.45%
- --------------------------------------------------------------------------------------------------------------------
Lipper Corporate Bond BBB-Rated (2.56)% 4.06% 6.53% - - 4.36%
- --------------------------------------------------------------------------------------------------------------------
Benchmark (0.82)% 5.73% 7.73% - - 5.64%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ------
17
- --------------------------------------------------------------------------------
TABLE 3
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE SMALL CAP GROWTH 26.09% - - - - 16.19%
- ---------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 19.49%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% - - - - 25.88%
- -------------------------------------------------------------------------------------------------------------------
EQ/BALANCED 16.09% 15.28% 14.77% 10.20% - 11.04%
- -------------------------------------------------------------------------------------------------------------------
Lipper Balanced 10.45% 14.19% 15.15% 11.65% - 11.09%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 9.07% 16.47% 17.93% 13.04% - 13.19%
- -------------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES 71.59% - - - - 46.49%
- -------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% - - - - 32.50%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 16.99%
- -------------------------------------------------------------------------------------------------------------------
MFS RESEARCH 21.64% - - - - 22.46%
- -------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 29.33%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- -------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 17.51% - - - - 16.52%
- -------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 18.00%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- -------------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 19.89% - - - - 10.79%
- -------------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio 12.93% - - - - 11.91%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 13.07% - - - - 16.81%
- -------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING
MARKETS EQUITY 93.40% - - - - 4.43%
- -------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% - - - - 2.90%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 66.41% - - - - (0.88)%
- -------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED (1.16)% - - - - 8.39%
- -------------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% - - - - 13.91%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 11.39% - - - - 18.81%
- -------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE (2.54)% - - - - 8.80%
- -------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 18.00%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- -------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME 2.31% - - - - 11.46%
- -------------------------------------------------------------------------------------------------------------------
Lipper Equity Income 6.90% - - - - 14.28%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- -------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK 30.29% - - - - 14.34%
- -------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 20.38%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 18.32%
- -------------------------------------------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE 0.58% - - - - 2.09%
- -------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 24.22%
- -------------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 16.99%
- -------------------------------------------------------------------------------------------------------------------
Benchmark #2 (1.49)% - - - - 7.06%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
* Portfolio inception dates are shown in Table 1. Lipper Survey and
benchmark "since portfolio inception" information are as of the month-end
closest to the actual date of portfolio inception.
<PAGE>
- ------
18
- --------------------------------------------------------------------------------
TABLE 4
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK 17.12% 26.37% 97.56% 300.04% - 907.17%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Growth 51.65% 102.87% 158.98% 311.69% - 683.45%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 18.09% 62.12% 147.96% 319.19% - 595.55%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 23.38% 100.46% 220.74% 376.76% 2,102.68% 3,665.21%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% 106.30% 216.51% 386.68% 1,816.52% 2,838.39%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 107.56% 251.12% 432.78% 2,584.39% 3,555.48%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS 8.55% 36.01% 67.41% 123.19% - 129.28%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Income 4.42% 39.31% 91.71% 163.35% - 169.02%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 4.19% 40.74% 89.21% 177.71% - 186.90%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX 18.64% 95.77% 217.89% - - 217.43%
- -------------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index Funds 19.36% 99.37% 227.98% - - 242.77%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 107.56% 251.12% - - 253.66%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 36.51% 80.19% 138.43% 276.09% - 342.49%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Global 44.62% 93.38% 162.57% 205.54% - 273.03%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 24.93% 79.83% 146.35% 194.99% - 252.80%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME 16.95% 74.09% 152.11% - - 145.50%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% 62.52% 157.04% - - 158.01%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 20.71% 86.55% 205.26% - - 204.09%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS 24.76% 67.36% 131.47% 315.58% - 330.68%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 10.45% 49.38% 103.90% 204.29% - 211.11%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 13.77% 76.71% 171.92% 309.28% - 352.50%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (4.74)% 4.01% 48.99% 129.49% - 165.41%
- -------------------------------------------------------------------------------------------------------------------------
Lipper High Yield 3.65% 15.25% 51.19% 151.82% - 166.74%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark #1 1.57% 18.80% 58.22% 178.72% - 245.03%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark #2 3.28% 17.00% 54.39% 185.43% - 246.92%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE
GOVERNMENT SECURITIES (1.31)% 10.84% 26.65% - - 50.13%
- -------------------------------------------------------------------------------------------------------------------------
Lipper U.S. Government (2.60)% 12.55% 32.56% - - 64.40%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 0.49% 17.43% 39.81% - - 77.41%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERNATIONAL 35.79% 41.35% - - - 67.58%
- -------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% 69.17% - - - 103.07%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% 55.06% - - - 79.52%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET 3.47% 11.62% 20.78% 43.42% - 142.62%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Money Market 3.78% 12.64% 22.65% 47.52% - 178.18%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 4.74% 15.79% 28.88% 63.79% - 229.35%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ------
19
- --------------------------------------------------------------------------------
TABLE 4
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE QUALITY BOND (3.43)% 11.30% 33.34% - - 23.61%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Corporate Bond BBB-Rated (2.56)% 12.69% 37.39% - - 30.19%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark (0.82)% 18.20% 45.12% - - 40.97%
- -------------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH 26.09% - - - - 49.24%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 62.98%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% - - - - 84.91%
- -------------------------------------------------------------------------------------------------------------------------
EQ/BALANCED 16.09% 53.21% 99.12% 164.09% - 415.98%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 10.45% 49.38% 103.90% 204.29% - 335.16%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 9.07% 58.00% 128.08% 240.54% - 558.00%
- -------------------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES 71.59% - - - - 176.97%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% - - - - 120.85%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 52.05%
- -------------------------------------------------------------------------------------------------------------------------
MFS RESEARCH 21.64% - - - - 71.70%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 101.13%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -------------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 17.51% - - - - 50.39%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 56.85%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -------------------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 19.89% - - - - 31.43%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio 12.93% - - - - 35.69%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 13.07% - - - - 49.16%
- -------------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING
MARKETS EQUITY 93.40% - - - - 10.80%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% - - - - 7.48%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 66.41% - - - - 5.32%
- -------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED (1.16)% - - - - 24.00%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% - - - - 42.44%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 11.39% - - - - 61.21%
- -------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH &
INCOME VALUE (2.54)% - - - - 25.24%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 56.85%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME 2.31% - - - - 33.58%
- -------------------------------------------------------------------------------------------------------------------------
Lipper Equity Income 6.90% - - - - 43.31%
- -------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ------
20
- --------------------------------------------------------------------------------
TABLE 4
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
T. ROWE PRICE
INTERNATIONAL STOCK 30.29% - - - - 43.00%
- --------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - 65.44%
- --------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 56.70%
- --------------------------------------------------------------------------------------------------
WARBURG PINCUS SMALL
COMPANY VALUE 0.58% - - - - 5.68%
- --------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 83.94%
- --------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 52.05%
- --------------------------------------------------------------------------------------------------
Benchmark #2 (1.49)% - - - - 19.99%
- --------------------------------------------------------------------------------------------------
</TABLE>
- ----------
* Portfolio inception dates are shown in Table 1. Lipper survey and
benchmark "since portfolio inception" information are as month-end closest
to the actual date and portfolio inception.
<PAGE>
- ------
21
- --------------------------------------------------------------------------------
TABLE 5
YEAR-BY-YEAR RATES OF RETURN
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
1990 1991 1992 1993 1994
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/Aggressive Stock 5.52% 84.47% (4.61)% 15.08% (5.24)%
- --------------------------------------------------------------------------------------------------------
Alliance Common Stock (9.36)% 35.86% 1.72% 23.07% (3.58)%
- --------------------------------------------------------------------------------------------------------
Alliance Conservative Investors 4.88% 18.16% 4.27% 9.18% (5.50)%
- --------------------------------------------------------------------------------------------------------
Alliance Equity Index - - - - (0.14)%
- --------------------------------------------------------------------------------------------------------
Alliance Global (7.49)% 28.72% (1.96)% 30.27% 3.71%
- --------------------------------------------------------------------------------------------------------
Alliance Growth and Income - - - (0.62)% (2.02)%
- --------------------------------------------------------------------------------------------------------
Alliance Growth Investors 9.01% 46.85% 3.42% 13.63% (4.56)%
- --------------------------------------------------------------------------------------------------------
Alliance High Yield (2.54)% 22.72% 10.72% 21.42% (4.20)%
- --------------------------------------------------------------------------------------------------------
Alliance Intermediate Government
Securities - 10.88% 4.08% 9.01% (5.77)%
- --------------------------------------------------------------------------------------------------------
Alliance International - - - - -
- --------------------------------------------------------------------------------------------------------
Alliance Money Market 6.80% 4.69% 2.07% 1.48% 2.53%
- --------------------------------------------------------------------------------------------------------
Alliance Quality Bond - - - (0.87)% (6.49)%
- --------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth - - - - -
- --------------------------------------------------------------------------------------------------------
EQ/Balanced (1.45)% 40.11% (4.26)% 10.71% (9.38)%
- --------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies - - - - -
- --------------------------------------------------------------------------------------------------------
MFS Research - - - - -
- --------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity - - - - -
- --------------------------------------------------------------------------------------------------------
Mercury World Strategy - - - - -
- --------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity - - - - -
- --------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced - - - - -
- --------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value - - - - -
- --------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income - - - - -
- --------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock - - - - -
- --------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value - - - - -
- --------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
1995 1996 1997 1998 1999
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/Aggressive Stock 29.81% 20.44% 9.20% ( 1.19)% 17.12%
- ---------------------------------------------------------------------------------------------------------
Alliance Common Stock 30.61% 22.50% 27.37% 27.55% 23.38%
- ---------------------------------------------------------------------------------------------------------
Alliance Conservative Investors 18.71% 3.68% 11.62% 12.25% 8.55%
- ---------------------------------------------------------------------------------------------------------
Alliance Equity Index 34.60% 20.64% 30.69% 26.25% 18.64%
- ---------------------------------------------------------------------------------------------------------
Alliance Global 17.14% 12.96% 9.93% 20.07% 36.51%
- ---------------------------------------------------------------------------------------------------------
Alliance Growth and Income 22.34% 18.37% 24.95% 19.13% 16.95%
- ---------------------------------------------------------------------------------------------------------
Alliance Growth Investors 24.61% 10.99% 15.11% 16.54% 24.76%
- ---------------------------------------------------------------------------------------------------------
Alliance High Yield 18.24% 21.15% 16.79% ( 6.51)% (4.74)%
- ---------------------------------------------------------------------------------------------------------
Alliance Intermediate Government
Securities 11.73% 2.27% 5.76% 6.20% (1.31)%
- ---------------------------------------------------------------------------------------------------------
Alliance International 9.54% 8.23% ( 4.49)% 8.99% 35.79%
- ---------------------------------------------------------------------------------------------------------
Alliance Money Market 4.23% 3.81% 3.91% 3.82% 3.47%
- ---------------------------------------------------------------------------------------------------------
Alliance Quality Bond 15.38% 3.84% 7.58% 7.13% (3.43)%
- ---------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth - - 25.50%+ ( 5.69)% 26.09%
- ---------------------------------------------------------------------------------------------------------
EQ/Balanced 18.07% 10.07% 13.35%+ 16.43% 16.09%
- ---------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies - - 21.45%+ 32.90% 71.59%
- ---------------------------------------------------------------------------------------------------------
MFS Research - - 15.12%+ 22.62% 21.64%
- ---------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity - - 16.08%+ 10.24% 17.51%
- ---------------------------------------------------------------------------------------------------------
Mercury World Strategy - - 3.87%+ 5.54% 19.89%
- ---------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity - - (20.54)%+ (27.90)% 93.40%
- ---------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced - - 13.56%+ 10.47% (1.16)%
- ---------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value - - 15.28%+ 11.47% (2.54)%
- ---------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income - - 21.15%+ 7.76% 2.31%
- ---------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock - - ( 2.30)%+ 12.33% 30.29%
- ---------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value - - 18.17%+ (11.09)% 0.58%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
+ Returns for these portfolios represent less than 12 months of performance.
The returns are as of each portfolio inception date as shown in Table 1.
<PAGE>
- ------
22
- --------------------------------------------------------------------------------
COMMUNICATING PERFORMANCE DATA
In reports or other communications to contract owners or in advertising
material, we may describe general economic and market conditions affecting our
variable investment options and the portfolios and may compare the performance
or ranking of those options and the portfolios with:
o those of other insurance company separate accounts or mutual funds
included in the rankings prepared by Lipper Analytical Services, Inc.,
Morningstar, Inc., VARDS, or similar investment services that monitor the
performance of insurance company separate accounts or mutual funds;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective contract owners advertisements or
other communications that include evaluations of a variable investment option or
portfolio by nationally recognized financial publications. Examples of such
publications are:
Barron's Money Management Letter
Morningstar's Variable Annuity Sourcebook Investment Dealers Digest
Business Week National Underwriter
Forbes Pension & Investments
Fortune USA Today
Institutional Investor Investor's Business Daily
Money The New York Times
Kiplinger's Personal Finance The Wall Street Journal
Financial Planning The Los Angeles Times
Investment Adviser The Chicago Tribune
Investment Management Weekly
Lipper compiles performance data for peer universes of funds with similar
investment objectives in its Lipper Survey. Morningstar, Inc. compiles similar
data in the Morningstar Variable Annuity/Life Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800 mutual
funds underlying variable annuity and life insurance products. It divides these
actively managed portfolios into 25 categories by portfolio objectives. The
Lipper Survey contains two different universes, which reflect different types of
fees in performance data:
o The "separate account" universe reports performance data net of investment
management fees, direct operating expenses and asset-based charges
applicable under variable life insurance and annuity contracts; and
o The "mutual fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects only
charges that relate to the underlying mutual fund.
The Morningstar Variable Annuity/Life Report consists of nearly 700 variable
life and annuity funds, all of which report their data net of investment
management fees, direct operating expenses and separate account level charges.
VARDS is a monthly reporting service that monitors approximately 2,500 variable
life and variable annuity funds on performance and account information.
YIELD INFORMATION
Current yield for the Alliance Money Market option will be based on net changes
in a hypothetical investment over a given seven-day period, exclusive of capital
changes, and then "annualized" (assuming that the same seven-day result would
occur each week for 52 weeks). Current yield for the other options will be based
on net changes in a hypothetical investment over a given 30-day period,
exclusive of capital changes, and then "annualized" (assuming that the same
30-day result would occur each month for 12 months).
"Effective yield" is calculated in a similar manner, but when annualized, any
income earned by the investment is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because any earnings are
compounded weekly for the Alliance Money Market option.
<PAGE>
- ------
23
- --------------------------------------------------------------------------------
The current yields and effective yields assume the deduction of all current
contract charges and expenses other than the annual administrative charge,
withdrawal charge, and any charges for state premium and other applicable taxes.
For more information, see "Alliance Money Market option yield information" and
"Other yield information" in the SAI.
<PAGE>
THE FOLLOWING IS ADDED AFTER PAGE B-6 OF THE PROSPECTUS:
- -------
A-1
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account A with the same daily asset charges of 1.20%.
SERIES 600 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION,
EXCEPT EQ/ALLIANCE TECHNOLOGY WHICH IS BEING OFFERED FOR THE FIRST TIME ON MAY
22, 2000.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DECEMBER 31, DECEMBER 31,
1998 1999
- --------------------------------------------------------------------------------
<S> <C> <C>
EQ/AGGRESSIVE STOCK
- --------------------------------------------------------------------------------
Unit value $90.25 $105.69
- --------------------------------------------------------------------------------
Number of units outstanding (000's) - 4
- --------------------------------------------------------------------------------
ALLIANCE COMMON STOCK
- --------------------------------------------------------------------------------
Unit value $102.87 $126.92
- --------------------------------------------------------------------------------
Number of units outstanding (000's) - 105
- --------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS
- --------------------------------------------------------------------------------
Unit value $102.74 $111.53
- --------------------------------------------------------------------------------
Number of units outstanding (000's) - 6
- --------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX
- --------------------------------------------------------------------------------
Unit value $103.69 $123.02
- --------------------------------------------------------------------------------
Number of units outstanding (000's) - 50
- --------------------------------------------------------------------------------
ALLIANCE GLOBAL
- --------------------------------------------------------------------------------
Unit value $98.37 $134.29
- --------------------------------------------------------------------------------
Number of units outstanding (000's) - 20
- --------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME
- --------------------------------------------------------------------------------
Unit value $102.73 $120.14
- --------------------------------------------------------------------------------
Number of units outstanding (000's) - 37
- --------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS
- --------------------------------------------------------------------------------
Unit value $101.93 $127.17
- --------------------------------------------------------------------------------
Number of units outstanding (000's) - 21
- --------------------------------------------------------------------------------
ALLIANCE HIGH YIELD
- --------------------------------------------------------------------------------
Unit value $89.20 $84.97
- --------------------------------------------------------------------------------
Number of units outstanding (000's) - 5
- --------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
- --------------------------------------------------------------------------------
Unit value $103.32 $101.97
- --------------------------------------------------------------------------------
Number of units outstanding (000's) - 1
- --------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -------
A-2
- --------------------------------------------------------------------------------
SERIES 600 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT
OPTION, EXCEPT EQ/ALLIANCE TECHNOLOGY WHICH IS BEING OFFERED FOR THE FIRST TIME
ON MAY 22, 2000. (CONTINUED)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
DECEMBER 31, DECEMBER 31,
1998 1999
- --------------------------------------------------------------------------
<S> <C> <C>
ALLIANCE INTERNATIONAL
- --------------------------------------------------------------------------
Unit value $93.00 $126.30
- --------------------------------------------------------------------------
Number of units outstanding (000's) - 3
- --------------------------------------------------------------------------
ALLIANCE MONEY MARKET
- --------------------------------------------------------------------------
Unit value $101.68 $105.21
- --------------------------------------------------------------------------
Number of units outstanding (000's) - 17
- --------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- --------------------------------------------------------------------------
Unit value - 116.42
- --------------------------------------------------------------------------
Number of units outstanding (000s) - 36
- --------------------------------------------------------------------------
ALLIANCE QUALITY BOND
- --------------------------------------------------------------------------
Unit value $103.62 $100.07
- --------------------------------------------------------------------------
Number of units outstanding (000's) - 4
- --------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH
- --------------------------------------------------------------------------
Unit value $86.94 $109.62
- --------------------------------------------------------------------------
Number of units outstanding (000's) - 2
- --------------------------------------------------------------------------
EQ/BALANCED
- --------------------------------------------------------------------------
Unit value $102.39 $118.36
- --------------------------------------------------------------------------
Number of units outstanding (000's) - 11
- --------------------------------------------------------------------------
CALVERT SOCIALLY RESPONSIBLE
- --------------------------------------------------------------------------
Unit value - 107.64
- --------------------------------------------------------------------------
Number of units outstanding (000s) - -
- --------------------------------------------------------------------------
CAPITAL GUARDIAN RESEARCH
- --------------------------------------------------------------------------
Unit value - 106.84
- --------------------------------------------------------------------------
Number of units outstanding (000s) - 1
- --------------------------------------------------------------------------
CAPITAL GUARDIAN U.S. EQUITY
- --------------------------------------------------------------------------
Unit value - 101.69
- --------------------------------------------------------------------------
Number of units outstanding (000s) - 1
- --------------------------------------------------------------------------
EQ/EVERGREEN
- --------------------------------------------------------------------------
Uit value - 106.63
- --------------------------------------------------------------------------
Number of units outstanding (000s) - -
- --------------------------------------------------------------------------
EQ/EVERGREEN FOUNDATION
- --------------------------------------------------------------------------
Unit value - 105.21
- --------------------------------------------------------------------------
Number of units outstanding (000s) - -
- --------------------------------------------------------------------------
</TABLE>
<PAGE>
- -------
A-3
- --------------------------------------------------------------------------------
SERIES 600 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT
OPTION, EXCEPT EQ/ALLIANCE TECHNOLOGY WHICH IS BEING OFFERED FOR THE FIRST TIME
ON MAY 22, 2000. (CONTINUED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
DECEMBER 31, DECEMBER 31,
1998 1999
- ----------------------------------------------------------------------------
<S> <C> <C>
MFS EMERGING GROWTH COMPANIES
- ----------------------------------------------------------------------------
Unit value $103.53 $177.65
- ----------------------------------------------------------------------------
Number of units outstanding (000's) - 36
- ----------------------------------------------------------------------------
MFS GROWTH WITH INCOME
- ----------------------------------------------------------------------------
Unit value - 104.53
- ----------------------------------------------------------------------------
Number of units outstanding (000s) - 2
- ----------------------------------------------------------------------------
MFS RESEARCH
- ----------------------------------------------------------------------------
Unit value $99.10 $120.55
- ----------------------------------------------------------------------------
Number of units outstanding (000's) - 6
- ----------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY
- ----------------------------------------------------------------------------
Unit value $97.91 $115.06
- ----------------------------------------------------------------------------
Number of units outstanding (000's) - 7
- ----------------------------------------------------------------------------
MERCURY WORLD STRATEGY
- ----------------------------------------------------------------------------
Unit value $94.96 $113.85
- ----------------------------------------------------------------------------
Number of units outstanding (000's) - 1
- ----------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY
- ----------------------------------------------------------------------------
Unit value $81.49 $157.61
- ----------------------------------------------------------------------------
Number of units outstanding (000's) - 3
- ----------------------------------------------------------------------------
EQ/PUTNAM BALANCED
- ----------------------------------------------------------------------------
Unit value $101.17 $99.99
- ----------------------------------------------------------------------------
Number of units outstanding (000's) - 3
- ----------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- ----------------------------------------------------------------------------
Unit value $100.60 $98.04
- ----------------------------------------------------------------------------
Number of units outstanding (000's) - 3
- ----------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME
- ----------------------------------------------------------------------------
Unit value $101.12 $103.45
- ----------------------------------------------------------------------------
Number of units outstanding (000's) - 3
- ----------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK
- ----------------------------------------------------------------------------
Unit value $94.15 $122.67
- ----------------------------------------------------------------------------
Number of units outstanding (000's) - 3
- ----------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE
- ----------------------------------------------------------------------------
Unit value $82.88 $83.36
- ----------------------------------------------------------------------------
Number of units outstanding (000's) - 1
- ----------------------------------------------------------------------------
</TABLE>
<PAGE>
THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
SUPPLEMENT DATED MAY 1, 2000
TO EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS
PROSPECTUS DATED MAY 1, 2000
FOR EMPLOYEES OF ALLEGHENY COUNTY, PENNSYLVANIA
- --------------------------------------------------------------------------------
This Supplement modifies certain information contained in the prospectus dated
May 1, 2000 ("Prospectus") as it relates to the Series 200 EDC Contracts offered
by The Equitable Life Assurance Society of the United States ("Equitable Life").
The Series 200 EDC Contracts, modified as described below (the "Modified EDC
Contracts"), are offered to employees of Allegheny County, Pennsylvania, on the
basis described in the Prospectus, except that the Withdrawal Charge and Annual
Administrative Charge applicable to the Modified EDC Contracts will be as
follows:
o Withdrawal Charge. The Withdrawal Charge ("WC") schedule for the Modified
EDC Contract is as follows:
CONTRACT YEAR(S) WC
--------------------------- ---------------------------
1 6%
2 5
3 4
4 3
5 2
6+ 0
This table replaces the table in the Prospectus under "Withdrawal charge for
series 100 and 200 contracts" in "Charges and expenses."
No WC will apply in the event of the:
-- Death
-- Disability
-- Separation from service from Allegheny County
-- Retirement of the participant.
The annual administrative charge is waived.
E2338
888-1281
<PAGE>
THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
SUPPLEMENT DATED MAY 1, 2000
TO EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS
PROSPECTUS DATED MAY 1, 2000
- --------------------------------------------------------------------------------
This supplement modifies certain information in the prospectus dated May 1, 2000
(the "Prospectus") for EQUI-VEST group and individual deferred variable annuity
contracts offered by Equitable Life. Equitable Life will offer a modified
version of its EQUI-VEST Series 200 TSA contracts (the "Modified TSA Agreement")
only to participants in qualifying retirement programs of certain nonprofit
healthcare organizations. This Supplement describes the material differences
between the Modified TSA Agreement and the EQUI-VEST Series 200 TSA contract
described in the Prospectus. Terms in this Supplement have the same meaning as
in the Prospectus.
Material differences between the Modified TSA Agreement and the TSA provisions
described in the EQUI-VEST Prospectus include the following:
o WITHDRAWAL CHARGE. The Withdrawal Charge schedule for the Modified TSA
Agreement is as follows:
CONTRACT YEAR(S) WC
--------------------------- ---------------------------
1 6%
2 5
3 4
4 3
5 2
6+ 0
This table replaces the EQUI-VEST Series 200 Withdrawal Charge table in
"Withdrawal charge for series 100 and 200 contracts" under "Charges and
expenses."
o EXCEPTIONS TO THE WITHDRAWAL CHARGE. For the modified TSA Agreement, the
section in "Charges and expenses" has been revised to add the following
waivers:
No charge will be applied to any amount withdrawn from the Modified TSA
Agreement if:
- -- The annuitant has separated from service, or
- -- The annuitant makes a withdrawal at any time if he qualifies to receive
Social Security disability benefits as certified by the Social Security
Administration or any successor agency, or
- -- The annuitant makes a withdrawal that qualifies as a hardship withdrawal
under the Plan and the Code.
o ANNUAL ADMINISTRATIVE CHARGE. The annual administrative charge to
participants under the Modified TSA Agreement is at maximum the charge
described in the Prospectus -- that is, it is equal to the lesser of $30 or
2% of the account value on the last business day of each year (adjusted to
include any withdrawals made during the year), to be prorated for a
fractional year. This charge may be reduced or waived when a Modified TSA
Agreement is used by the employer and the required participant services are
performed at a modified or minimum level.
FOR USE ONLY IN THE STATE OF ILLINOIS
888-1278
<PAGE>
The Equitable Life Assurance
Society Of The United States
SUPPLEMENT DATED MAY 1, 2000
TO EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS
PROSPECTUS DATED MAY 1, 2000
EQUI-VEST(R) TSA Contracts
(Series 100 and Series 200)
Offered to Certain Public School Employees Within the State of Indiana
- --------------------------------------------------------------------------------
This Supplement adds to and modifies certain information contained in the
Prospectus dated May 1, 2000 ("Prospectus") for Equi-Vest(R) Employer-Sponsored
Retirement Programs offered by Equitable Life. Equitable Life will offer its
EQUI-VEST(R) Series 100 and Series 200 TSA Contracts, as described below
("Modified TSA Contracts"), to certain participants in plans that meet the
requirements of Internal Revenue Code Section 403(b) (referred to as "Section
403(b) Plans") sponsored by a public education institution described in "Tax
information" under "Tax-Sheltered annuity arrangements (TSAs)" as "Section
403(b) Plans" sponsored by a public education institution described in Section
403(b)(1)(A)(ii) of the Code within the State of Indiana ("Employer"). Modified
TSA Contracts will be available only when an Employer makes contributions for
employees participating in Section 403(b) Plans (whether in addition to, or
instead of, employee salary reduction or elective deferred contributions, as
applicable) and has entered into an agreement with Equitable Life that permits
Equitable Life to offer to you Modified TSA Contracts as a funding vehicle for
your Employer's Section 403(b) Plan ("Modified TSA Agreement"). Terms not
otherwise defined in this Supplement have the same meaning as in the Prospectus.
Modified TSA Agreements and Contracts: Exceptions to Withdrawal Charge. Modified
TSA Contracts are offered to participants on the same basis and under the same
terms and conditions described in the Prospectus as applicable to the
EQUI-VEST(R) TSA Series 100 and Series 200 Contracts, except for certain
material differences described in this Supplement.
Your Employer may notify us of its termination of a Modified TSA Agreement
during the seven-day period ("Employer Window Period") starting on the fifth
anniversary of the initial Modified TSA Contract purchased pursuant to a
Modified TSA Agreement. If your Employer terminates its Modified TSA Agreement
during an Employer Window Period, then you will have a 30-day period ("Annuitant
Window Period"), starting on the first business day after the end of an Employer
Window Period, during which to notify our Processing Office, in writing, whether
you desire to terminate your Modified TSA Contract and transfer your Modified
TSA Contract's account value to a successor funding vehicle without a withdrawal
charge being applied.
The Prospectus section entitled "Charges under the contracts" in
"Charges and expenses" has been revised to add the following waiver:
No charge will be applied to any amount withdrawn from your Modified TSA
Contract if your Employer terminates its Modified TSA Agreement with us; and
within the 30-day Annuitant Window Period, you choose to transfer the account
value under your Modified TSA Contract to a successor funding vehicle.
Your opportunity to transfer your account value without paying a withdrawal
charge is wholly dependent upon your Employer providing you with timely notice
of the termination of its Modified TSA Agreement with us and notifying you of
the Annuitant Window Period.
Equitable Life is not obliged to provide you with information relating to your
Employer's decision to terminate its Modified TSA Agreement.
You are not required to make such a transfer and you may decide to continue your
Modified TSA Contract even if your Employer terminates its Modified TSA
Agreement.
FOR USE ONLY IN THE STATE OF INDIANA
E2342
888-1280
<PAGE>
- --------------------------------------------------------------------------------
2
Guaranteed Interest Option Rates. Until the start of the Employer Window Period
all Modified TSA Contracts held by Annuitants of one Employer ("Unit") will be
credited with a current rate of interest in the Guaranteed Interest Option up to
0.50% lower than the current rate for all other EQUI-VEST(R) Series 100 and
Series 200 TSA Contracts purchased on the same date and not purchased pursuant
to a Modified TSA Agreement or other modified service agreement Equitable Life
has with an Employer. Equitable Life reserves the right to apply different
interest percentage rates to Units, at its discretion, based upon variances in
Unit experience, expenses and other factors. The current rate credited under
Modified TSA Contracts, however, will never be lower than the minimum guaranteed
rates under all EQUI-VEST(R) Series 100 and Series 200 TSA Contracts. See "Your
contracts value in the guaranteed interest option" in the Prospectus.
Once the Employer Window Period begins, the rates for any Modified TSA Contract
within a Unit will be the same as the rates in effect for all other EQUI-VEST(R)
Series 100 and Series 200 TSA Contracts purchased on the same date and not
purchased pursuant to a Modified TSA Agreement or other modified service
agreement Equitable Life has with an Employer.
ANNUAL ADMINISTRATIVE CHARGE. The annual administrative charge under Modified
TSA Contracts may be reduced or waived when participant services are performed
at a modified or minimum level under a Modified TSA Agreement. This annual
administrative charge may continue to be reduced or waived even if your Employer
terminates its Modified TSA Agreement with us. Any reduction or waiver to an
annual administrative charge will not be unfairly discriminatory. See "Charges
and expenses" in the Prospectus.
FOR USE ONLY IN THE STATE OF INDIANA
E2342
<PAGE>
The Equitable Life Assurance
Society Of The United States
SUPPLEMENT DATED MAY 1, 2000
TO EQUIT-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS
PROSPECTUS DATED MAY 1, 2000
- --------------------------------------------------------------------------------
This Supplement modifies certain information in the prospectus dated May 1, 2000
for EQUI-VEST deferred annuity contracts offered by Equitable Life. Terms in
this Supplement have the same meanings as in the prospectus.
In addition to other options described in "Accessing your money" in the
prospectus, the following distribution options may be available to participants
in certain public employee deferred compensation plans in the State of Iowa. If
such plans permit the use of such options, your employer may select one of the
following options upon receipt of your irrevocable election to receive payments
in such form:
1. MINIMUM DISTRIBUTION OPTION
Beginning in the year that you are required to begin minimum distribution
payments under the Code and applicable U.S. Treasury regulations and each year
thereafter, we will make annual payments to you subject to the rules of the Code
and to our administrative rules then in effect. The amount of each payment will
be calculated as described in this item 1.
Each year, we will calculate an annual amount equal to the minimum distribution
required under Section 401(a)(9) of the Code and applicable Treasury
regulations. The minimum distribution for each such year will be determined by
dividing (a) your account value as of December 31 of the previous year, by (b) a
life expectancy factor described below.
As you may elect under the terms of your employer's plan, the life expectancy
factor is either a single life expectancy factor (based on your life expectancy)
or a joint life expectancy factor (based on the joint lives of you and your
spouse). Either such factor will be determined based on tables contained in
Section 401(a)(9) of the Code or applicable Treasury regulations.
If the joint life expectancy factor is elected, your designated beneficiary for
minimum distribution purposes must be your spouse, unless the naming of a
non-spouse beneficiary is permitted pursuant to our rules in effect at the time
a beneficiary is named (such naming is not permitted at this date).
Life expectancy factors will be recalculated each year, unless (a) you elect not
to recalculate or (b) the beneficiary is not your spouse. If life expectancy is
not recalculated, then each life expectancy factor is based on the calculation
for the calendar year in which you (and the beneficiary, if joint life
expectancy applies) begin receiving minimum distributions reduced by one for
each subsequent calendar year.
The election of the life expectancy factor to be used and whether recalculation
is to apply will be irrevocable.
The calculation procedure may be changed as necessary in our sole discretion to
comply with the minimum distribution rules under Section 401(a)(9) of the Code
and applicable Treasury regulations.
2. COMBINATION OF SYSTEMATIC WITHDRAWAL AND MINIMUM DISTRIBUTION OPTION
Beginning on the date of the first payment of your plan benefits, if we are
directed by your employer under the terms of the employer's plan, we will make
systematic withdrawal payments to you as follows at the frequency you have
elected (annually, quarterly or monthly), subject to our administrative rules
then in effect. The systematic withdrawal option described in "Accessing your
money" in the prospectus will be in combination with the minimum distribution
option as described below.
FOR USE ONLY WITH PEDC CONTRACTS IN THE STATE OF IOWA
888-1277
<PAGE>
- --------------------------------------------------------------------------------
2
Prior to the year that minimum distributions are required to start, we will pay
the amount of each systematic withdrawal payment of the type you have selected.
Based on your elections regarding your beneficiary and recalculations of life
expectancy as described in item 1 above, we will calculate annually the required
imputed minimum distribution amount and determine whether an additional payment
to you is required. The calculation of such imputed minimum distribution amount
will be made on a basis consistent with the required minimum distribution rules
described in item 1 above, using the tables contained in Section 401(a)(9) of
the Code and applicable Treasury regulations. Beginning with the year that
minimum distributions are required to start, we will calculate annually the
required minimum distribution and determine whether an additional payment to you
is required. If required, an imputed minimum distribution payment or a required
minimum distribution payment, as applicable, will be made in addition to the
systematic withdrawal payments.
If at any time after you have made the irrevocable election under your
employer's plan as described above, the Internal Revenue Service disallows the
basis for calculating the payments as described in this item 2, we will have the
right, in our sole discretion, to change the basis for calculating the payments
as we deem necessary in order to meet the requirements of the Code and
applicable Treasury regulations.
FOR USE ONLY WITH PEDC CONTRACTS IN THE STATE OF IOWA
E2341
<PAGE>
The Equitable Life Assurance
Society Of The United States
SUPPLEMENT DATED MAY 1, 2000
TO EQUI-VEST(R) EMPLOYER-SPONSORED RETIREMENT PROGRAMS
PROSPECTUS DATED MAY 1, 2000
EQUI-VEST(R) EDC Contracts (Series 100 and Series 200) offered to certain
employees of State and Municipal Governments within the State of Iowa
- --------------------------------------------------------------------------------
This Supplement adds to and modifies certain information contained in the
prospectus dated May 1, 2000 (Prospectus) for EQUI-VEST(R) Employer-Sponsored
Retirement Programs offered by Equitable Life. Equitable Life will offer
EQUI-VEST(R) EDC, as described below ("Iowa/Enhanced EDC Contracts"), to fund
plans that meet the requirements of Internal Revenue Code Section 457 ("Section
457 Plans") sponsored by certain state and municipal governments described in
Section 457 of the Code, within the State of Iowa ("Employer"). Iowa/Enhanced
EDC Contracts will be available only when an Employer (i) makes contributions to
a Section 457 Plan, whether in addition to, in the form of, employee salary
reduction or elective deferred contributions, as applicable, and (ii) has
entered into an agreement with Equitable Life that permits Equitable Life to
offer Iowa/Enhanced EDC Contracts as a funding vehicle for your Employer's
Section 457 Plan; and the total assets of all Section 457 plans sponsored by all
state, municipal and other local governments is greater than $50 million in plan
assets for all Iowa/Enhanced EDC Contracts within the state of Iowa. Terms not
otherwise defined in this Supplement have the same meaning as in the Prospectus.
Employees of an Employer may participate under an Iowa/Enhanced EDC Contract on
the same basis and under the same terms and conditions described in the
Prospectus as applicable to EQUI-VEST(R) EDC Contracts, except for certain
material differences described in this Supplement. Participation under
Iowa/Enhanced EDC Contracts will be available to (i) annuitants, within the
State of Iowa, participating under EQUI-VEST(R) EDC Contracts purchased prior to
the date of this Supplement and (ii) any annuitant participating under an
Iowa/Enhanced EDC Contract purchased as of or after the date of this Supplement.
THE "EQUI-VEST EMPLOYER-SPONSORED RETIREMENT PROGRAMS AT A GLANCE -- KEY
FEATURES" SECTION OF THE PROSPECTUS HAS BEEN MODIFIED FOR THE FEES AND CHARGES
RELATED TO SERIES 100 AND 200 AS FOLLOWS:
ANNUAL ADMINISTRATIVE CHARGE. The annual administrative charge is waived and
does not apply to Iowa/Enhanced EDC Contracts.
Annual expenses of EQ Advisors Trust Portfolios include 12b-1 fees for EQ
Advisors Trust for Iowa/Enhanced EDC Contracts and are Class IB shares.
FEE TABLES. For Iowa/Enhanced EDC Contracts, the following fee tables are
applicable. You should refer to the fee tables of the Prospectus for all other
applicable expenses related to EQUI-VEST Series 100 and Series 200 Contracts.
Please also see the discussion of the modifications to "Charges and expenses"
set forth in the Supplement.
FOR USE ONLY IN THE STATE OF IOWA
888-1276
<PAGE>
- --------------------------------------------------------------------------------
2
Table 1: EQUI-VEST Series 100
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Alliance
Alliance Intermediate Alliance Alliance Alliance
Money Government Quality Alliance Growth and Equity
Market Securities Bond High Yield Income Index
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL
EXPENSES
Mortality and Expense Risk Fees (1) .65% .65% .65% .65% .65% .65%
Other Expenses (2) .25% .25% .25% .25% .25% .25%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT
ANNUAL EXPENSES .90% .90% .90% .90% .90% .90%
Annual Expenses
Investment Advisory Fees .34% .50% .53% .60% .59% .25%
Rule 12b-1 Fees (9) .25% .25% .25% .25% .25% .25%
Other Expenses .05% .07% .05% .05% .05% .05%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL EXPENSES (8) .64% .82% .83% .90% .89% .55%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Table 1: EQUI-VEST Series 100
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Alliance Alliance
Alliance Alliance EQ/ Small Conser- Alliance
Common Alliance Inter- Aggressive Cap vative EQ/ Growth
Stock Global national Stock Growth Investors Balanced Investors
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT
ANNUAL EXPENSES
Mortality and Expense
Risk Fees (1) .65% .65% .65% .65% .65% .65% .65% .65%
Other Expenses (2) .25% .25% .25% .25% .25% .25% .25% .25%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT
ANNUAL EXPENSES .90% .90% .90% .90% .90% .90% .90% .90%
Annual Expenses
Investment Advisory
Fees .46% .73% .85% .60% .75% .60% .57% .57%
Rule 12b-1 Fees (9) .25% .25% .25% .25% .25% .25% .25% .25%
Other Expenses .04% .09% .20% .04% .07% .07% .05% .05%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL
EXPENSES (8) .75% 1.07% 1.30% .89% 1.07% .92% .87% .87%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
FOR USE ONLY IN THE STATE OF IOWA
<PAGE>
- --------------------------------------------------------------------------------
3
Table 1: EQUI-VEST Series 100 (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
T. Rowe
Price T. Rowe EQ/Putnam
Inter- Price Growth &
national Equity Income EQ/Putnam MFS
Stock Income Value Balanced Research
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL EXPENSES
Mortality and Expense Risk Fees (1) .65% .65% .65% .65% .65%
Other Expenses (2) .25% .25% .25% .25% .25%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT ANNUAL EXPENSES .90% .90% .90% .90% .90%
Annual Expenses
Investment Management and Advisory Fees .85% .60% .60% .60% .65%
Rule 12b-1 Fees (9) .25% .25% .25% .25% .25%
Other Expenses .15% .10% .10% .05% .05%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL EXPENSES
(AFTER EXPENSE LIMITATION) (10) 1.25% .95% .95% .90% .95%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Table 1: EQUI-VEST Series 100
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Morgan
MFS Stanley Warburg Mercury
Emerging Emerging Pincus Small Mercury Basic
Growth Markets Company World Value
Companies Equity Value Strategy Equity
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL EXPENSES
Mortality and Expense Risk
Fees (1) .65% .65% .65% .65% .65%
Other Expenses (2) .25% .25% .25% .25% .25%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT ANNUAL EXPENSES .90% .90% .90% .90% .90%
Annual Expenses
Investment Management and Advisory Fees .65% 1.15% .75% .70% .60%
Rule 12b-1 Fees (9) .25% .25% .25% .25% .25%
Other Expenses .10% .35% .10% .25% .10%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL EXPENSES
(AFTER EXPENSE LIMITATION) (10) 1.00% 1.75% 1.10% 1.20% .95%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
FOR USE ONLY IN THE STATE OF IOWA
<PAGE>
- --------------------------------------------------------------------------------
4
Table 2: EQUI-VEST Series 200 (continued)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
EQ/Alliance Calvert Capital Capital
Premier EQ/Alliance Socially Guardian Guardian
Growth Technology Responsible Research U.S. Equity
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL EXPENSES
Mortality and Expense
Risk Fees (1) .65% .65% .65% .65% .65%
Other Expenses (2) .25% .25% .25% .25% .25%
- ----------------------------------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT ANNUAL EXPENSES .90% .90% .90% .90% .90%
Annual Expenses
Investment Management and Advisory Fees .90% .90% .65% .65% .65%
Rule 12b-1 Fees (9) .25% .25% .25% .25% .25%
Other Expenses .00% .00% .15% .05% .05%
- ----------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL EXPENSES
(AFTER EXPENSE LIMITATION) (10) 1.15% 1.15% 1.05% .95% .95%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
Table 2: EQUI-VEST Series 200
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
EQ/
EQ/ Evergreen MFS Growth
Evergreen Foundation With Income
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL EXPENSES
Mortality and Expense
Risk Fees (1) .65% .65% .65%
Other Expenses (2) .25% .25% .25%
- -------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT ANNUAL EXPENSES .90% .90% .90%
Annual Expenses
Investment Management and Advisory Fees .65% .60% .60%
Rule 12b-1 Fees (9) .25% .25% .25%
Other Expenses .05% .10% .10%
- -------------------------------------------------------------------------------------
TOTAL ANNUAL EXPENSES
(AFTER EXPENSE LIMITATION) (10) .95% .95% .95%
- -------------------------------------------------------------------------------------
</TABLE>
- ------------
Notes 3 and 4 of the Fee Table are not applicable to Iowa/Enhanced EDC
Contracts. As to certain limitations on charges, see "Maximum total charges"
under "Charges and expenses" below for the modifications to the "Charges and
expenses" section of the Prospectus. Also, Note 9 is revised as follows as shown
on the last page of the Fee Tables.
FOR USE ONLY IN THE STATE OF IOWA
<PAGE>
- --------------------------------------------------------------------------------
5
Table 2: EQUI-VEST Series 200 (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Alliance
Alliance Intermediate Alliance Alliance Alliance Alliance
Money Government Quality High Growth and Equity
Market Securities Bond Yield Income Index
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL
EXPENSES
Mortality and Expense Risk Fees (1) .65% .65% .65% .65% .65% .65%
Other Expenses (2) .25% .25% .25% .25% .25% .25%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT ANNUAL
EXPENSES .90% .90% .90% .90% .90% .90%
Annual Expenses
Investment Advisory Fees .34% .50% .53% .60% .59% .25%
Rule 12b-1 Fees (9) .25% .25% .25% .25% .25% .25%
Other Expenses .05% .07% .05% .05% .05% .05%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL
EXPENSES (8) .64% .82% .83% .90% .89% .55%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Table 2: EQUI-VEST Series 200
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Alliance Alliance
Alliance Alliance EQ/ Small Conser- Alliance
Common Alliance Inter- Aggressive Cap vative EQ/ Growth
Stock Global national Stock Growth Investors Balanced Investors
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL
EXPENSES
Mortality and Expense Risk Fees (1) .65% .65% .65% .65% .65% .65% .65% .65%
Other Expenses (2) .25% .25% .25% .25% .25% .25% .25% .25%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT
ANNUAL EXPENSES .90% .90% .90% .90% .90% .90% .90% .90%
Annual Expenses
Investment Advisory Fees .46% .73% .85% .60% .75% .60% .57% .57%
Rule 12b-1 Fees (9) .25% .25% .25% .25% .25% .25% .25% .25%
Other Expenses .04% .09% .20% .04% .07% .07% .05% .05%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL
EXPENSES (8) .75% 1.07% 1.30% .89% 1.07% .92% .87% .87%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
FOR USE ONLY IN THE STATE OF IOWA
<PAGE>
- --------------------------------------------------------------------------------
6
Table 2: EQUI-VEST Series 200 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
T. Rowe T. Rowe
Price Price EQ/Putnam
Inter- Equity Growth & EQ/Putnam MFS
national Income Income Value Balanced Research
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL EXPENSES
Mortality and Expense Risk Fees (1) .65% .65% .65% .65% .65%
Other Expenses (2) .25% .25% .25% .25% .25%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT ANNUAL EXPENSES .90% .90% .90% .90% .90%
Annual Expenses
Investment Management and Advisory Fees .85% .60% .60% .60% .65%
Rule 12b-1 Fees (9) .25% .25% .25% .25% .25%
Other Expenses .15% .10% .10% .05% .05%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL EXPENSES
(AFTER EXPENSE LIMITATION) (10) 1.25% .95% .95% .90% .95%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Table 2: EQUI-VEST Series 200
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Morgan
MFS Stanley Warburg Mercury
Emerging Emerging Pincus Small Mercury Basic
Growth Markets Company World Value
Companies Equity Value Strategy Equity
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL EXPENSES
Mortality and Expense Risk Fees (1) .65% .65% .65% .65% .65%
Other Expenses (2) .25% .25% .25% .25% .25%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT ANNUAL EXPENSES .90% .90% .90% .90% .90%
Annual Expenses
Investment Management and Advisory Fees .65% 1.15% .75% .70% .60%
Rule 12b-1 Fees (9) .25% .25% .25% .25% .25%
Other Expenses .10% .35% .10% .25% .10%
- -----------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL EXPENSES
(AFTER EXPENSE LIMITATION) (10) 1.00% 1.75% 1.10% 1.20% .95%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
- ------------
Notes 3 and 4 of the Fee Table are not applicable to Iowa/Enhanced EDC
Contracts. As to certain limitations on charges, see "Maximum total charges"
under "Charges and expenses" below for the modifications to the "Charges and
expenses" section of the Prospectus. Also, Note 9 is revised as follows as shown
on the next page.
FOR USE ONLY IN THE STATE OF IOWA
<PAGE>
- --------------------------------------------------------------------------------
7
Table 1: EQUI-VEST Series 100
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
EQ/Alliance Calvert Capital
Premier EQ/Alliance Socially Guardian
Growth Technology Responsible Research
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL EXPENSES
Mortality and Expense Risk Fees (1) .65% .65% .65% .65%
Other Expenses (2) .25% .25% .25% .25%
- --------------------------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT ANNUAL EXPENSES .90% .90% .90% .90%
Annual Expenses
Investment Management and Advisory Fees .90% .90% .65% .65%
Rule 12b-1 Fees (9) .25% .25% .25% .25%
Other Expenses .00% .00% .15% .05%
- --------------------------------------------------------------------------------------------------------
TOTAL ANNUAL EXPENSES
(AFTER EXPENSE LIMITATION) (10) 1.15% 1.15% 1.05% .95%
- --------------------------------------------------------------------------------------------------------
</TABLE>
Table 1: EQUI-VEST Series 100
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Capital EQ/
Guardian EQ/ Evergreen MFS Growth
U.S. Equity Evergreen Foundation With Income
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL EXPENSES
Mortality and Expense Risk Fees (1) .65% .65% .65% .65%
Other Expenses (2) .25% .25% .25% .25%
- --------------------------------------------------------------------------------------------------
TOTAL SEPARATE ACCOUNT ANNUAL EXPENSES .90% .90% .90% .90%
Annual Expenses
Investment Management and Advisory Fees .60% .65% .60% .60%
Rule 12b-1 Fees (9) .25% .25% .25% .25%
Other Expenses .05% .05% .10% .10%
- --------------------------------------------------------------------------------------------------
TOTAL ANNUAL EXPENSES
(AFTER EXPENSE LIMITATION) (10) .95% .95% .95% .95%
- --------------------------------------------------------------------------------------------------
</TABLE>
- ------------
(9) The Class IB shares of EQ Advisors Trust are subject to fees imposed
under a distribution plan (the "Rule 12b-1 Plan") adopted by EQ
Advisors Trust pursuant to Rule 12b-1 under the Investment Company Act
of 1940. The 12b-1 fee will not be increased for the life of the
contracts. Prior to October 1, 1999, the total annual expenses for the
Alliance Small Cap Growth portfolio were limited to 1.20% under an
expense limitation arrangement related to that portfolio's Rule 12b-1
Plan. The arrangement is no longer in effect. The amounts shown have
been restated to reflect the expenses that would have been incurred in
1999, absent the expense limitation arrangement.
FOR USE ONLY IN THE STATE OF IOWA
<PAGE>
- --------------------------------------------------------------------------------
8
"CHARGES AND EXPENSES" OF THE PROSPECTUS HAS BEEN MODIFIED AS FOLLOWS:
CHARGES TO PORTFOLIOS. The following paragraph is added to "Charges that EQ
Advisors Trust deducts" after the Portfolio investment advisory fee table:
The Rule 12b-1 Plan adopted with respect to EQ Advisors Trust's Class IB shares
provides that EQ Advisors Trust, on behalf of each Portfolio, may charge
annually up to 0.25% of the average daily net assets of a Portfolio attributable
to its Class IB shares in respect of activities primarily intended to result in
the sale of the Class IB shares. This fee will not be increased for the life of
the Iowa/Enhanced EDC Contracts. Fees and expenses are described more fully in
the EQ Advisors Trust prospectus.
MAXIMUM TOTAL CHARGES. The discussion under "Maximum total charges" is
applicable to Iowa/Enhanced EDC Contracts attributable to EQUI-VEST EDC
Contracts issued to fund Section 457 Plans prior to the date of this Supplement.
The discussion, however, does not apply to Iowa/Enhanced EDC Contracts issued on
and after the date of this Supplement.
CHARGES FOR OTHER EXPENSES. The discussion under "Charges for other expenses"
is replaced by the following:
We make a daily charge (after any deductions to provide for taxes) against the
assets held in each of the Investment Funds under an Iowa/Enhanced EDC Contract.
This charge is reflected in the unit values and made at an annual rate not to
exceed 0.90% for each of the variable investment options. The charge is for
financial accounting, death benefits, mortality risk, expenses and expense risk.
The specific charges for Series 100 and 200 Iowa/Enhanced EDC Contracts are:
expenses and financial accounting -- 0.25%; expense risks -- 0.30%; and
mortality risks and death benefits -- 0.35%.
ANNUAL ADMINISTRATIVE CHARGE. The annual administrative charge under Iowa/
Enhanced EDC Contracts is waived.
WITHDRAWAL CHARGE. The following will apply to withdrawals under Iowa/Enhanced
EDC Contracts, in addition to the exceptions to the withdrawal charge discussed
under the section entitled "Withdrawal charges for series 100 and 200
contracts."
o the annuitant retires pursuant to terms of the Section 457 plan, or separates
from service;
o the annuitant has qualified to receive Social Security disability benefits as
certified by the Social Security Administration;
o we receive proof satisfactory to us that the annuitant's life expectancy is
six months or less (such proof must include, but is not limited to,
certification by a licensed physician);
o the annuitant elects a withdrawal that qualifies as a hardship withdrawal
under the Code;
o the annuitant has been confined to a nursing home for more than a 90-day
period (or such other period, if required in Iowa as verified by a licensed
physician). A nursing home for this purpose means one which is (a) approved
by Medicare as a provider of skilled nursing care service, or (b) licensed as
a skilled nursing home by the state or territory in which it is located (it
must be within the United States, Puerto Rico, U.S. Virgin Islands, or Guam)
and meets all of the following:
o its main function is to provide skilled, intermediate or custodial nursing
care;
o it provides continuous room and board to three or more persons;
FOR USE ONLY IN THE STATE OF IOWA
<PAGE>
o it is supervised by a registered nurse or practical nurse;
o it keeps daily medical records of each patient;
o it controls and records all medications dispensed; and
o its primary service is other than to provide housing for residents.
FOR USE ONLY IN THE STATE OF IOWA
<PAGE>
THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
SUPPLEMENT DATED MAY 1, 2000
TO EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS
PROSPECTUS DATED MAY 1, 2000
- --------------------------------------------------------------------------------
This supplement modifies certain information in the prospectus dated May 1, 2000
(the "Prospectus") for EQUI-VEST group and individual deferred variable annuity
contracts offered by Equitable Life. Equitable Life will offer its EQUI-VEST
Series 200 TSA contracts modified with Rider 95MDHOSP (the "Modified TSA
Contract") only to employees (age 75 and below) of hospitals and non-profit
healthcare organizations doing business in Maryland. This Supplement describes
the material differences between the Modified TSA Contract and the EQUI-VEST
Series 200 TSA contract described in the Prospectus. Terms in this Supplement
have the same meaning as in the Prospectus.
Material differences between the Modified TSA Contract and the TSA provisions
described in the EQUI-VEST Prospectus include the following:
o WITHDRAWAL CHARGE. The Withdrawal Charge schedule for the Modified TSA
Contract is as follows:
CONTRACT YEAR(S) CHARGE
- ------------------------ -------------------------
1 6%
2 5
3 4
4 3
5 2
6+ 0
This table replaces the EQUI-VEST Series 200 Withdrawal Charge table in
"Withdrawal charge for series 100 and 200 contracts" under "Charges and
expenses" in the Prospectus.
o No withdrawal charge will apply to funds transferred on or after January 18,
1996 into the Modified TSA Contract from another tax sheltered annuity
contract qualified under Section 403(b) of the Code and issued by an
insurance company other than Equitable Life.
o LOANS. Loans will be available under the Modified TSA Contract when the TSA
plan is subject to the Employee Retirement Income Security Act of 1974
(ERISA). Only one outstanding loan will be permitted at any time. There is a
minimum loan amount of $1,000 and a maximum loan amount which varies
depending on the participant's account value but may never exceed $50,000.
For more complete details and rules on Loans see "Loans from qualified plans
and TSAs" in the Prospectus and "Additional Loan Provisions" in the Statement
of Additional Information.
o EXCEPTIONS TO THE WITHDRAWAL CHARGE. For the modified TSA Contract, the
Section in "Charges and expenses" has been revised as follows:
No charge will be applied to any amount withdrawn from the TSA Contract if:
-- the annuitant has separated from service, or
-- the annuitant makes a withdrawal that qualifies as a hardship
withdrawal under the Plan and the Code, or
-- the annuitant makes a withdrawal at any time if he qualifies to receive
Social Security disability benefits as certified by the Social Security
Administration or any successor agency.
o ANNUAL ADMINISTRATIVE CHARGE. No annual administrative charge will be
charged to participants in the Modified TSA Contract.
FOR USE ONLY IN THE STATE OF MARYLAND
E2337
888-1284
<PAGE>
THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
SUPPLEMENT DATED MAY 1, 2000
TO EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS
PROSPECTUS DATED MAY 1, 2000
For Employees of Employers Associated with Realty One
- --------------------------------------------------------------------------------
This Supplement modifies certain information contained in the prospectus dated
May 1, 2000 ("Prospectus") as it relates to certain series 200 Trusteed
Contracts offered by The Equitable Life Assurance Society of the United States
("Equitable Life"). The Series 200 Trusteed Contracts, modified as described
below (the "Modified Trusteed Contracts"), are offered to employees of employers
associated with Realty One, a real estate brokerage firm, on the basis described
in the Prospectus, except that the Withdrawal Charge applicable to the Modified
Trusteed Contracts will be waived for all plan assets invested under such
Contracts, except for any withdrawal of plan assets which were invested in the
guaranteed interest option less than 120 days prior to such withdrawal. Except
as modified above, the discussion under "Withdrawal charge for series 100 and
200 contracts" under "Charges and expenses" with respect to Trusteed Contracts
is applicable to the Modified Trusteed Contracts.
The annual administrative charge is waived.
E2340
888-1282
<PAGE>
EQUI-VEST (R) Express(SM)
A combination variable and fixed deferred
annuity contract
PROSPECTUS DATED MAY 1, 2000
Please read and keep this prospectus for future reference. It contains important
information that you should know before purchasing or taking any other action
under your contract. Also, at the end of this prospectus you will find attached
the prospectus for EQ Advisors Trust which contains important information about
its portfolios.
- --------------------------------------------------------------------------------
WHAT IS EQUI-VEST EXPRESS?
EQUI-VEST Express is a deferred annuity contract issued by THE EQUITABLE LIFE
ASSURANCE SOCIETY OF THE UNITED STATES. It provides for the accumulation of
retirement savings and for income. The contract also offers death benefit
protection and a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options or in our
fixed maturity options ("investment options"). This contract may not currently
be available in all states.
<TABLE>
<CAPTION>
VARIABLE INVESTMENT OPTIONS
- ------------------------------------------------------------------------
FIXED INCOME:
- ------------------------------------------------------------------------
<S> <C>
o Alliance High Yield o Alliance Money Market
o Alliance Intermediate o Alliance Quality Bond
Government Securities
- ------------------------------------------------------------------------
DOMESTIC STOCKS
- ------------------------------------------------------------------------
o EQ/Aggressive Stock (1) o EQ/Evergreen
o Alliance Common Stock o MFS Emerging Growth
o Alliance Equity Index Companies
o Alliance Growth and o MFS Growth with Income
Income o MFS Research
o EQ/Alliance Premier Growth o Mercury Basic Value Equity (3)
o Alliance Small Cap Growth o EQ/Putnam Growth & Income
o EQ/Alliance Technology (2) Value
o Capital Guardian Research o T. Rowe Price Equity Income
o Capital Guardian U.S. o Warburg Pincus Small
Equity Company Value
- ------------------------------------------------------------------------
INTERNATIONAL STOCKS
- ------------------------------------------------------------------------
o Alliance Global o Morgan Stanley Emerging
o Alliance International Markets Equity
o T. Rowe Price International Stock
- ------------------------------------------------------------------------
BALANCED/HYBRID
- ------------------------------------------------------------------------
o Alliance Conservative o EQ/Evergreen Foundation
Investors o Mercury World Strategy (5)
o Alliance Growth Investors o EQ/Putnam Balanced
o EQ/Balanced (4)
- ------------------------------------------------------------------------
</TABLE>
(1) Formerly named "Alliance Aggressive Stock."
(2) Anticipated to become available on or about May 22, 2000. This option may
not be available in the State of California.
(3) Formerly named "Merrill Lynch Basic Value Equity."
(4) Formerly named "Alliance Balanced."
(5) Formerly named "Merrill Lynch World Strategy."
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of our Separate Account A. Each
variable investment option, in turn, invests in a corresponding securities
portfolio of EQ Advisors Trust. Your investment results in a variable investment
option will depend on the investment performance of the related portfolio.
FIXED MATURITY OPTIONS. You may allocate amounts to one or more fixed maturity
options. These amounts will receive a fixed rate of interest for a specified
period. Interest is earned at a guaranteed rate set by us. We make a market
value adjustment (up or down) if you make transfers or withdrawals from a fixed
maturity option before its maturity date.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only
o An individual retirement annuity ("IRA"), either Traditional IRA or Roth
IRA
o A Traditional IRA as a conduit to hold rollover distributions ("QP IRA")
from a qualified plan or a Tax-Sheltered Annuity ("TSA")
A contribution of at least $50 is required to purchase a contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2000, is a part of one of the registration
statements. The SAI is available free of charge. You may request one by writing
to our processing office or calling 1 (800) 628-6673. The SAI has been
incorporated by reference into this prospectus. This prospectus and the SAI can
also be obtained from the SEC's Web site at http://www.sec.gov. The table of
contents for the SAI appears at the back of this prospectus.
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY.
THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK
GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL.
72126
<PAGE>
Contents of this prospectus
- ----------------
2
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
EQUI-VEST(R) EXPRESS(SM)
- ---------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
EQUI-VEST Express at a glance - key features 9
- ---------------------------------------------------------------
FEE TABLE 12
- ---------------------------------------------------------------
Examples 15
Condensed financial information 16
1
- ---------------------------------------------------------------
CONTRACT FEATURES AND BENEFITS 17
- ---------------------------------------------------------------
How you can purchase and contribute to your contract 17
Owner and annuitant requirements 19
How you can make your contributions 19
What are your investment options under the contract? 19
Allocating your contributions 23
Your right to cancel within a certain number of days 23
2
- ---------------------------------------------------------------
DETERMINING YOUR CONTRACT'S VALUE 25
- ---------------------------------------------------------------
Your account value and cash value 25
Your contract's value in the variable investment options 25
Your contract's value in the fixed maturity options 25
</TABLE>
- --------------------------------------------------------------------------------
"We," "our" and "us" refer to Equitable Life.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
<PAGE>
- ----------
3
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
3
- ---------------------------------------------------------------
TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 26
- ---------------------------------------------------------------
Transferring your account value 26
Market timing 26
Automatic transfer options 26
4
- ---------------------------------------------------------------
ACCESSING YOUR MONEY 28
- ---------------------------------------------------------------
Withdrawing your account value 28
How withdrawals are taken from your account value 29
Surrender of your contract to receive its cash value 29
Termination 29
When to expect payments 29
Your annuity payout options 30
5
- ---------------------------------------------------------------
CHARGES AND EXPENSES 32
- ---------------------------------------------------------------
Charges that Equitable Life deducts 32
Charges that EQ Advisors Trust deducts 34
Group or sponsored arrangements 34
Other distribution arrangements 35
6
- ---------------------------------------------------------------
PAYMENT OF DEATH BENEFIT 36
- ---------------------------------------------------------------
Your beneficiary and payment of benefit 36
How death benefit payment is made 37
Beneficiary continuation option 37
7
- ---------------------------------------------------------------
TAX INFORMATION 39
- ---------------------------------------------------------------
Overview 39
Transfers among investment options 39
Taxation of nonqualified annuities 39
Special rules for NQ contracts issued in Puerto Rico 41
Individual retirement arrangements ("IRAs") 41
Federal and state income tax withholding and
information reporting 51
Impact of taxes to Equitable Life 52
8
- ---------------------------------------------------------------
MORE INFORMATION 53
- ---------------------------------------------------------------
About our Separate Account A 53
About EQ Advisors Trust 53
About our fixed maturity options 54
About the general account 55
About other methods of payment 55
Dates and prices at which contract events occur 56
About your voting rights 56
About legal proceedings 57
About our independent accountants 57
Financial statements 57
Transfers of ownership, collateral assignments, loans,
and borrowing 58
Distribution of the contracts 58
9
- ---------------------------------------------------------------
INVESTMENT PERFORMANCE 59
- ---------------------------------------------------------------
Benchmarks 59
Communicating performance data 69
10
- ---------------------------------------------------------------
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 70
- ---------------------------------------------------------------
APPENDICES
I - Condensed financial information A-1
II - Market value adjustment example B-1
- ---------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS
- ---------------------------------------------------------------
</TABLE>
<PAGE>
Index of key words and phrases
- --------
4
- --------------------------------------------------------------------------------
This index should help you locate more information on the
terms used in this prospectus.
<TABLE>
<CAPTION>
PAGE
<S> <C>
account value 25
annuitant 17
annuity payout options 30
beneficiary 36
business day 56
cash value 25
conduit IRA 44
contract date 10
contract date anniversary 10
contract year 10
contributions 17
contributions to Roth IRAs
regular and direct transfers 48
rollover contributions 48
conversion contributions 49
contributions to Traditional IRAs
regular contributions 42
rollovers and direct transfers 43
EQAccess 6
financial professional 58
fixed maturity options 22
IRA cover
IRS 39
investment options 19
market adjusted amount 23
market value adjustment 22
maturity value 22
NQ cover
portfolio cover
processing office 6
QP IRAs cover
rate to maturity 22
regular contribution 42
Required Beginning Date 46
Roth IRA cover
SAI cover
SEC cover
TOPS 6
Traditional IRA cover
TSA cover
unit 24
unit investment trust 53
variable investment options 19
</TABLE>
To make this prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we do use different words, they have the same meaning in this prospectus as in
the contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
- --------------------------------------------------------------------------
<S> <C>
fixed maturity options Guarantee Periods or Fixed Maturity Accounts
variable investment options Investment Funds or Investment Divisions
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation unit
unit value Accumulation unit value
- --------------------------------------------------------------------------
</TABLE>
<PAGE>
Who is Equitable Life?
- ----------------
5
- --------------------------------------------------------------------------------
We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing business
since 1859. Equitable Life is a wholly owned subsidiary of AXA Financial, Inc.
(previously, The Equitable Companies Incorporated). The majority shareholder of
AXA Financial, Inc. is AXA, a French holding company for an international group
of insurance and related financial services companies. As a majority
shareholder, and under its other arrangements with Equitable Life and Equitable
Life's parent, AXA exercises significant influence over the operations and
capital structure of Equitable Life and its parent. No company other than
Equitable Life, however, has any legal responsibility to pay amounts that
Equitable Life owes under the contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$462.7 billion in assets as of December 31, 1999. For over 100 years Equitable
Life has been among the largest insurance companies in the United States. We are
licensed to sell life insurance and annuities in all fifty states, the District
of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is
located at 1290 Avenue of the Americas, New York, N.Y. 10104.
<PAGE>
- ----------
6
- --------------------------------------------------------------------------------
HOW TO REACH US
You may communicate with our processing office as listed below for any of the
following purposes:
- --------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND
CONTRIBUTIONS INDIVIDUALLY BY REGULAR MAIL:
- --------------------------------------------
Equitable Life
EQUI-VEST Express
Individual Collections
P.O. Box 13459
Newark, NJ 07188-0459
- --------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS
INDIVIDUALLY BY EXPRESS DELIVERY:
- --------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13459
- --------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G.,
REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL:
- --------------------------------------------
Equitable Life
EQUI-VEST Express
P.O. Box 2996
New York, NY 10116-2996
- --------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G.,
REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY:
- --------------------------------------------
Equitable Life
EQUI-VEST Express
200 Plaza Drive, 2nd Floor
Secaucus, NJ 07094
- --------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY
EMPLOYERS AND SENT BY REGULAR MAIL:
- --------------------------------------------
Equitable Life
EQUI-VEST Express
Unit Collections
P.O. Box 13463
Newark, New Jersey 07188-0463
- --------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY
EMPLOYERS AND SENT BY EXPRESS DELIVERY:
- --------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13463
- --------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------
o written confirmation of financial transactions; and
o annual statement of your contract values as of the close of the calendar
year.
- --------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT
("TOPS") AND EQACCESS SYSTEMS:
- --------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
<PAGE>
- ----------
7
- --------------------------------------------------------------------------------
You can also:
o change your allocation percentages and/or transfer among the variable
investment options (anticipated to be available through EQAccess by the end
of 2000); and
o change your TOPS personal identification number ("PIN") (not available
through EQAccess).
o change your EQAccess password (not available through TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1 (800) 755-7777. You may use EQAccess by
visiting our website at http://www.equitable.com and clicking on EQAccess. Of
course, for reasons beyond our control, these services may sometimes be
unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good fatih, or wilful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe to
be genuine.
We reserve the right to limit access to these services if we determine that you
are engaged in a market timing strategy (see "Market timing" in "Transferring
your money among investment options.")
- -------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- -------------------------------------------------------------
You may also use our toll-free number 1 (800) 628-6673 to
speak with one of our customer service representatives. Our
customer service representatives are available on each
business day Monday through Thursday from 8:00 a.m. to
7:00 p.m., and on Fridays until 5:00 p.m., Eastern Time.
- -------------------------------------------------------------
TOLL-FREE TELEPHONE SERVICE:
- -------------------------------------------------------------
You may reach us toll-free by calling 1 (800) 841-0801 for a
recording of daily unit values for the variable investment
options.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) conversion of your traditional IRA contract to a Roth IRA contract;
(2) cancellation of your Roth IRA contract and return to a traditional IRA
contract;
(3) election of the automatic investment program;
(4) election of general dollar-cost averaging;
(5) election of the rebalancing program;
(6) election of required minimum distribution option;
(7) election of beneficiary continuation option;
(8) election of the principal assurance allocation; and
(9) request for a transfer/rollover of assets or 1035 exchange to another
carrier.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF
REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers among investment options;
<PAGE>
- ----------
8
- --------------------------------------------------------------------------------
(4) change of ownership; and
(5) contract surrender and withdrawal requests.
TO CHANGE OR CANCEL ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) general dollar-cost averaging;
(3) rebalancing program;
(4) systematic withdrawals; and
(5) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner.
<PAGE>
EQUI-VEST Express at a glance - key features
- --------
9
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
- ----------------------------------------------------------------------------------------------------------------------
PROFESSIONAL EQUI-VEST Express variable investment options invest in different portfolios managed by
INVESTMENT professional investment advisers.
MANAGEMENT
- ----------------------------------------------------------------------------------------------------------------------
FIXED MATURITY o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years.
OPTIONS o Each fixed maturity option offers a guarantee of principal and interest rate if you hold
it to maturity.
-----------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there
will be a market value adjustment due to differences in interest rates. This may increase or
decrease any value that you have left in that fixed maturity option. If you surrender your
contract, a market value adjustment may also apply.
- ----------------------------------------------------------------------------------------------------------------------
TAX ADVANTAGES o On earnings inside the No tax on any dividends, interest or capital gains until you
contract make withdrawals from your contract or receive annuity
payments.
-----------------------------------------------------------------------------------------------
o On transfers inside the No tax on transfers among investment options.
contract
-----------------------------------------------------------------------------------------------
If you are buying a contract to fund a retirement plan that already provides tax deferral
under the Internal Revenue Code you should do so for the contract's features and benefits other
than tax deferral. In such situations, the tax deferral of the contract does not provide
necessary or additional benefits.
- ----------------------------------------------------------------------------------------------------------------------
CONTRIBUTION AMOUNTS Minimum: $50 ($20 under our automatic investment program)
Maximum contribution limitations may apply.
- ----------------------------------------------------------------------------------------------------------------------
ACCESS TO YOUR MONEY o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Contract surrender
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract.
You may also incur income tax and a penalty tax.
- ----------------------------------------------------------------------------------------------------------------------
PAYOUT OPTIONS o Fixed annuity payout options
o Variable annuity payout options
- ----------------------------------------------------------------------------------------------------------------------
ADDITIONAL FEATURES o General dollar-cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Principal assurance allocation
o No charge on transfers among investment options
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
10
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FEES AND CHARGES o Daily charges on amounts invested in the variable
investment options for mortality and expense risks and
other expenses at a current annual rate of 0.95% (2%
maximum).
o If your account value at the end of the contract year
is less than $25,000 for NQ contracts (or less than
$20,000 IRA contracts), we deduct an annual
administrative charge equal to $30 or during the first
two contract years 2% of your account value, if less.
If your account value is $25,000 or more for NQ
contracts (or $20,000 or more for IRA contracts), we
will not deduct the charge.
o Charge for third-party transfer (such as in the case of
a trustee-to-trustee transfer for an IRA contract) or
exchange (if your contract is exchanged for a contract
issued by another insurance company): $25 currently
($65 maximum) per occurrence.
o No sales charge deducted at the time you make
contributions.
o During the first seven contract years following each
contribution, a charge will be deducted from amounts
that you withdraw that exceed 10% of your account
value. We use the account value on the date of the
withdrawal to calculate the 10% amount available. The
charge begins at 7% in the first contract year
following each contribution. It declines each year to
1% in the seventh contract year. There is no withdrawal
charge in the eighth and later contract years following
a contribution.
-------------------------------------------------------
The "contract date" is the effective date of a
contract. This usually is the business day we receive
the properly completed and signed application, along
with any other required documents and, your initial
contribution. Your contract date will be shown in your
contract. The 12-month period beginning on your
contract date and each 12-month period after that date
is a "contract year." The end of each 12-month period
is your "contract date anniversary."
-------------------------------------------------------
o We deduct a charge designed to approximate certain
taxes that may be imposed on us, such as premium taxes
in your state. The charge is generally deducted from
the amount applied to an annuity payout option.
o We deduct a $350 annuity administrative fee from
amounts applied to purchase a variable annuity payout
option.
o Annual expenses of EQ Advisors Trust portfolios are
calculated as a percentage of the average daily net
assets invested in each portfolio. These expenses
include management fees ranging from 0.25% to 1.15%
annually, 12b-1 fees of 0.25% annually and other
expenses.
- --------------------------------------------------------------------------------
ANNUITANT NQ 0-79
ISSUE AGES QP IRA 0-79
Traditional IRA 0-70
Roth IRA 0-79
-------------------------------------------------------
For Traditional IRA contracts the maximum issue age is
70, but we will issue up to age 79 if the contribution
is a rollover contribution. For all other contracts we
will issue up to annuitant ages 80-83 with our prior
approval.
- --------------------------------------------------------------------------------
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY. MAXIMUM EXPENSE
LIMITATIONS APPLY TO CERTAIN VARIABLE INVESTMENT OPTIONS, AND RIGHTS ARE
RESERVED TO CHANGE OR WAIVE CERTAIN CHARGES WITHIN SPECIFIED LIMITS. ALSO, ALL
FEATURES OF THE CONTRACT, INCLUDING ALL VARIABLE INVESTMENT OPTIONS, ARE NOT
NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES.
<PAGE>
- -----
11
- --------------------------------------------------------------------------------
For more detailed information we urge you to read the contents of this
prospectus, as well as your contract. Please feel free to
speak with your financial professional, or call us, if you have any questions.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, fees and/or charges that are different
from those offered by this prospectus. Not every contract is offered through
the same distributor. Upon request, your financial professional can show you
information regarding other Equitable Life annuity contracts that he or she
distributes. You can also contact us to find out more about any of the
Equitable Life annuity contracts.
<PAGE>
Fee table
- --------
12
- --------------------------------------------------------------------------------
The fee table below will help you understand the various charges and expenses
that apply to your contract. The table reflects charges you will directly incur
under the contract, as well as charges and expenses of the Portfolios that you
will bear indirectly. Charges designed to approximate certain taxes that may be
imposed on us, such as premium taxes in your state, may also apply. Also, an
annuity administrative fee may apply when your annuity payments are to begin
more fully described in "Charges and expenses" later in this prospectus. For a
complete description of portfolio charges and expenses, please see the attached
prospectus for EQ Advisors Trust.
The fixed maturity options are not covered by the fee table and examples.
However, the annual administrative charge, the withdrawal charge, and the
third-party transfer or exchange charge do apply to the fixed maturity options.
Also, an annuity administrative fee may apply when your annuity payments are to
begin. A market value adjustment (up or down) may apply as a result of a
withdrawal, transfer or surrender of amounts from a fixed maturity option.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN
ANNUAL PERCENTAGE OF DAILY NET ASSETS
- -----------------------------------------------------------------------------------------------------------
<S> <C>
Mortality and expense risk(1) 0.70% current (maximum 1.75%)
Other expenses 0.25%
----
Total Separate Account A annual expenses 0.95% current (2% maximum)
- -----------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
- -----------------------------------------------------------------------------------------------------------
Annual administrative charge
If your account value on the last day of your contract year is less than
$25,000(2) for NQ contracts (or less than $20,000 for IRA contracts) $30 ($65 maximum)
If your account value on the last day of your contract year is $25,000 or
more for NQ contracts (or $20,000 or more for IRA contracts) $0
- -----------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------
Withdrawal charge as a percentage of contributions (deducted if you Contract
surrender your contract or make certain withdrawals. The withdrawal charge year
percentage we use is determined by the contract year in which you make the 1 7.00%
withdrawal or surrender your contract. For each contribution, we consider the 2 6.00%
contract year in which we receive that contribution to be "contract year 1")(3) 3 5.00%
4 4.00%
5 3.00%
6 2.00%
7 1.00%
8+ 0.00%
Charge for third-party transfer or exchange(4) $25 current ($65 maximum)
for each occurrence
Charge if you elect a variable annuity payout option $350
- -----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
13
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
TOTAL
OTHER ANNUAL
EXPENSES EXPENSES
MANAGEMENT (AFTER EXPENSE (AFTER EXPENSE
FEES(5) 12B-1 FEE(6) LIMITATION)(7) LIMITATION)(8)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 0.60% 0.25% 0.04% 0.89%
EQ/Balanced 0.57% 0.25% 0.05% 0.87%
Alliance Common Stock 0.46% 0.25% 0.04% 0.75%
Alliance Conservative Investors 0.60% 0.25% 0.07% 0.92%
Alliance Equity Index 0.25% 0.25% 0.05% 0.55%
Alliance Global 0.73% 0.25% 0.09% 1.07%
Alliance Growth and Income 0.59% 0.25% 0.05% 0.89%
Alliance Growth Investors 0.57% 0.25% 0.05% 0.87%
Alliance High Yield 0.60% 0.25% 0.05% 0.90%
Alliance Intermediate Government Securities 0.50% 0.25% 0.07% 0.82%
Alliance International 0.85% 0.25% 0.20% 1.30%
Alliance Money Market 0.34% 0.25% 0.05% 0.64%
Alliance Quality Bond 0.53% 0.25% 0.05% 0.83%
Alliance Small Cap Growth 0.75% 0.25% 0.07% 1.07%
EQ/Alliance Premier Growth 0.90% 0.25% 0.00% 1.15%
EQ/Alliance Technology 0.90% 0.25% 0.00% 1.15%
Capital Guardian Research 0.65% 0.25% 0.05% 0.95%
Capital Guardian U.S. Equity 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen Foundation 0.60% 0.25% 0.10% 0.95%
MFS Emerging Growth Companies 0.65% 0.25% 0.10% 1.00%
MFS Growth with Income 0.60% 0.25% 0.10% 0.95%
MFS Research 0.65% 0.25% 0.05% 0.95%
Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
Mercury World Strategy 0.70% 0.25% 0.25% 1.20%
Morgan Stanley Emerging Markets Equity 1.15% 0.25% 0.35% 1.75%
EQ/Putnam Balanced 0.60% 0.25% 0.05% 0.90%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% 0.95%
T. Rowe Price Equity Income 0.60% 0.25% 0.10% 0.95%
T. Rowe Price International Stock 0.85% 0.25% 0.15% 1.25%
Warburg Pincus Small Company Value 0.75% 0.25% 0.10% 1.10%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
14
- --------------------------------------------------------------------------------
Notes:
(1) A portion of this charge is for providing the death benefit.
(2) During the first two contract years, this charge is equal to the lesser
of $30 or 2% of your account value if it applies. Thereafter, the charge
is $30 for each contract year. We reserve the right to increase this
charge to an annual maximum of $65.
(3) Deducted upon a withdrawal of amounts in excess of the 10% free
withdrawal amount. Important exceptions and limitations may eliminate or
reduce this charge.
(4) We reserve the right to increase this charge to a maximum of $65 for each
occurrence.
(5) The management fees shown reflect revised management fees, effective on
or about May 1, 2000 which were approved by shareholders. The management
fees shown for EQ/Putnam Balanced, EQ/Putnam Growth & Income Value,
Warburg Pincus Small Company Value and T. Rowe Price International Stock
do not reflect the waiver of a portion of each portfolio's investment
management fees that is currently in effect. The management fee for each
portfolio cannot be increased without a vote of each portfolio's
shareholders.
(6) Portfolio shares are all subject to fees imposed under the distribution
plan (the "Rule 12b-1 Plan") adopted by EQ Advisors Trust pursuant to
Rule 12b-1 under the Investment Company Act of 1940. The 12b-1 fee will
not be increased for the life of the contracts. Prior to October 18, 1999
the total annual expenses for the Alliance Small Cap Growth portfolio
were limited to 1.20% under an expense limitation arrangement related to
that portfolio's Rule 12b-1 Plan. The arrangement is no longer in effect.
The amounts shown have been restated to reflect the expenses that would
have been incurred in 1999, absent the expense limitation arrangement.
(7) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. See footnote (8) for any expense limitation
agreements.
On October 18, 1999, the Alliance portfolios (other than EQ/Alliance
Premier Growth and EQ/Alliance Technology) became part of the portfolios
of EQ Advisors Trust. The "Other Expenses" for these portfolios have been
restated to reflect the estimated expenses that would have been incurred
had these portfolios been portfolios of EQ Advisors Trust for the entire
year ended December 31, 1999. The restated expenses reflect an increase of
0.01% for each of these portfolios.
(8) Equitable Life, EQ Advisors Trust's manager, has entered into an expense
limitation agreement with respect to certain portfolios. Under this
agreement Equitable Life has agreed to waive or limit its fees and assume
other expenses. Under the expense limitation agreement, total annual
operating expenses of certain portfolios (other than interest, taxes,
brokerage commissions, capitalized expenditures, extraordinary expenses
and 12b-1 fees) are limited as a percentage of the average daily net
assets of each of the following portfolios: 1.75% for Morgan Stanley
Emerging Markets Equity: 1.25% for T. Rowe Price International Stock;
1.20% for Mercury World Strategy; 1.15% for EQ/Alliance Premier Growth
and EQ/Alliance Technology; 1.10% for Warburg Pincus Small Company Value;
1.00% for MFS Emerging Growth Companies; 0.95% for Capital Guardian U.S.
Equity, Capital Guardian Research, EQ/Evergreen, EQ/Evergreen Foundation,
MFS Growth with Income, MFS Research, Mercury Basic Value Equity,
EQ/Putnam Growth & Income Value, and T. Rowe Price Equity Income; and
0.90% for EQ/Putnam Balanced. The expense limitations for the EQ/Putnam
Growth & Income Value, Mercury Basic Value Equity, MFS Growth with
Income, MFS Research, MFS Emerging Growth Companies, T. Rowe Price Equity
Income, and Warburg Pincus Small Company Value portfolios reflect an
increase effective on May 1, 2000. The expense limitation for the
EQ/Evergreen portfolio reflects a decrease effective on May 1, 2000.
Absent the expense limitation, the "Other Expenses" for 1999 on an
annualized basis for each of the portfolios would have been as follows:
1.00% for Morgan Stanley Emerging Markets Equity; 0.30% for T. Rowe Price
International Stock; 0.46% for Mercury World Strategy; 0.23% for
EQ/Alliance Premier Growth; 0.10% for EQ/Alliance Technology; 0.24% for
Warburg Pincus Small Company Value; 0.17% for MFS Emerging Growth
Companies; 0.34% for Capital Guardian U.S. Equity; 0.47% for Capital
Guardian Research; 1.87% for EQ/Evergreen; 1.07% for EQ/Evergreen
Foundation; 0.37% for MFS Growth with Income; 0.17% for MFS Research;
0.17% for Mercury Basic Value Equity; 0.16% for EQ/Putnam Growth & Income
Value; 0.21% for T. Rowe Price Equity Income; and 0.28% for EQ/Putnam
Balanced. Initial seed capital was invested on April 30, 1999 for
EQ/Alliance Premier Growth, Capital Guardian U.S. Equity and Capital
Guardian Research portfolios and will be invested on May 1, 2000 for the
EQ/Alliance Technology portfolio and therefore expenses have been
estimated.
<PAGE>
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15
- --------------------------------------------------------------------------------
Each portfolio may at a later date make a reimbursement to Equitable Life
for any of the management fees waived or limited and other expenses
assumed and paid by Equitable Life pursuant to the expense limitation
agreement provided, that among other things, such portfolio has reached
sufficient size to permit such reimbursement to be made and provided that
the portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such portfolio. For more
information, see the prospectus for EQ Advisors Trust.
EXAMPLES
The examples below show the expenses that a hypothetical contract owner would
pay in the situations illustrated. We assume a $1,000 contribution is invested
in one of the variable investment options listed and a 5% annual return is
earned on the assets in that option.(1) The annual administrative charge is
based on the charges that apply to a mix of estimated contract sizes, resulting
in an estimated administrative charge for the purpose of these examples of
$0.51 per $1,000. We assume there is no waiver of the withdrawal charge. Total
separate account A annual expenses used to compute the example below are the
maximum expenses rather than the lower current expenses "Charges and expenses"
later in this prospectus. For a complete description of portfolio charges and
expenses, please see the attached prospectus for EQ Advisors Trust.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES WOULD
BE:
--------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
VARIABLE INVESTMENT OPTION
- ------------------------------------------------------------------------------------------------
EQ/Aggressive Stock $ 100.87 $ 144.38 $ 190.35 $ 336.63
EQ/Balanced $ 100.66 $ 143.76 $ 189.32 $ 334.66
Alliance Common Stock $ 99.40 $ 140.02 $ 183.16 $ 322.77
Alliance Conservative Investors $ 101.18 $ 145.31 $ 191.88 $ 339.57
Alliance Equity Index $ 97.30 $ 133.76 $ 172.82 $ 302.61
Alliance Global $ 102.75 $ 149.97 $ 199.52 $ 354.16
Alliance Growth and Income $ 100.87 $ 144.38 $ 190.35 $ 336.63
Alliance Growth Investors $ 100.66 $ 143.76 $ 189.32 $ 334.66
Alliance High Yield $ 100.97 $ 144.69 $ 190.86 $ 337.61
Alliance Intermediate Government Securities $ 100.13 $ 142.20 $ 186.76 $ 329.72
Alliance International $ 105.17 $ 157.08 $ 211.13 $ 376.10
Alliance Money Market $ 98.24 $ 136.58 $ 177.49 $ 311.73
Alliance Quality Bond $ 100.24 $ 142.51 $ 187.27 $ 330.71
Alliance Small Cap Growth $ 102.75 $ 149.97 $ 199.52 $ 354.16
- ------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VARIABLE INVESTMENT OPTION
- ------------------------------------------------------------------------------------------------
EQ/Aggressive Stock $ 30.87 $ 94.38 $ 160.35 $ 336.63
EQ/Balanced $ 30.66 $ 93.76 $ 159.32 $ 334.66
Alliance Common Stock $ 29.40 $ 90.02 $ 153.16 $ 322.77
Alliance Conservative Investors $ 31.18 $ 95.31 $ 161.88 $ 339.57
Alliance Equity Index $ 27.30 $ 83.76 $ 142.82 $ 302.61
Alliance Global $ 32.75 $ 99.97 $ 169.52 $ 354.16
Alliance Growth and Income $ 30.87 $ 94.38 $ 160.35 $ 336.63
Alliance Growth Investors $ 30.66 $ 93.76 $ 159.32 $ 334.66
Alliance High Yield $ 30.97 $ 94.69 $ 160.86 $ 337.61
Alliance Intermediate Government Securities $ 30.13 $ 92.20 $ 156.76 $ 329.72
Alliance International $ 35.17 $ 107.08 $ 181.13 $ 376.10
Alliance Money Market $ 28.24 $ 86.58 $ 147.49 $ 311.73
Alliance Quality Bond $ 30.24 $ 92.51 $ 157.27 $ 330.71
Alliance Small Cap Growth $ 32.75 $ 99.97 $ 169.52 $ 354.16
- ------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
16
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES WOULD
BE:
--------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Alliance Premier Growth $ 103.59 $ 152.44 - -
EQ/Alliance Technology $ 103.59 $ 152.44 - -
Capital Guardian Research $ 101.49 $ 146.24 - -
Capital Guardian U.S. Equity $ 101.49 $ 146.24 - -
EQ/Evergreen $ 101.49 $ 146.24 $ 193.41 $ 342.51
EQ/Evergreen Foundation $ 101.49 $ 146.24 $ 193.41 $ 342.51
MFS Emerging Growth Companies $ 102.02 $ 147.80 $ 195.96 $ 347.38
MFS Growth with Income $ 101.49 $ 146.24 $ 193.41 $ 342.51
MFS Research $ 101.49 $ 146.24 $ 193.41 $ 342.51
Mercury Basic Value Equity $ 101.49 $ 146.24 $ 193.41 $ 342.51
Mercury World Strategy $ 104.12 $ 153.99 $ 206.10 $ 366.63
Morgan Stanley Emerging Markets Equity $ 109.89 $ 170.89 $ 233.53 $ 417.55
EQ/Putnam Balanced $ 100.97 $ 144.69 $ 190.86 $ 337.61
EQ/Putnam Growth & Income Value $ 101.49 $ 146.24 $ 193.41 $ 342.51
T. Rowe Price Equity Income $ 101.49 $ 146.24 $ 193.41 $ 342.51
T. Rowe Price International Stock $ 104.64 $ 155.53 $ 208.62 $ 371.38
Warburg Pincus Small Company Value $ 103.07 $ 150.90 $ 201.04 $ 357.06
- -------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
--------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Alliance Premier Growth $ 33.59 $ 102.44 - -
EQ/Alliance Technology $ 33.59 $ 102.44 - -
Capital Guardian Research $ 31.49 $ 96.24 - -
Capital Guardian U.S. Equity $ 31.49 $ 96.24 - -
EQ/Evergreen $ 31.49 $ 96.24 $ 163.41 $ 342.51
EQ/Evergreen Foundation $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Emerging Growth Companies $ 32.02 $ 97.80 $ 165.96 $ 347.38
MFS Growth with Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Research $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury Basic Value Equity $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury World Strategy $ 34.12 $ 103.99 $ 176.10 $ 366.63
Morgan Stanley Emerging Markets Equity $ 39.89 $ 120.89 $ 203.53 $ 417.55
EQ/Putnam Balanced $ 30.97 $ 94.69 $ 160.86 $ 337.61
EQ/Putnam Growth & Income Value $ 31.49 $ 96.24 $ 163.41 $ 342.51
T. Rowe Price Equity Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
T. Rowe Price International Stock $ 34.64 $ 105.53 $ 178.62 $ 371.38
Warburg Pincus Small Company Value $ 33.07 $ 100.90 $ 171.04 $ 357.06
- -------------------------------------------------------------------------------------------
</TABLE>
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity payout option at the end of any of the periods
shown in the examples. This is because if the amount applied to purchase
an annuity payout option is less than $2,000, or the initial payment is
less than $20, we may pay the amount to you in a single sum instead of as
payments under an annuity payout option. See "Accessing your money."
IF YOU ELECT A VARIABLE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see Note (1) above), and
you elect a variable annuity payout option, the expenses shown in the above
example for "if you do not surrender your contract" would, in each case, be
increased by $4.34 based on the average amount applied to annuity payout
options in 1999. See "Annuity administrative fee" in "Charges and expenses."
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this prospectus for the unit values and the
number of units outstanding as of the end of the period shown for each of the
variable investment options available as of December 31, 1999.
<PAGE>
1
Contract features and benefits
- --------
17
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum contribution amount of $50 to purchase a
contract. The minimum contribution amount under our automatic investment
program is $20. We discuss the automatic investment program under "About other
methods of payment" in "More information" later in this prospectus. The
following table summarizes our rules regarding contributions to your contract.
All ages in the table refer to the age of the annuitant named in the contract.
- ------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
CONTRACT AVAILABLE FOR SOURCE OF LIMITATIONS ON
TYPE ANNUITANT ISSUE AGES* CONTRIBUTIONS CONTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NQ 0 through 79 o After-tax money. Not applicable.
o Paid to us by check or transfer
of contract value in a tax
deferred exchange under
Section 1035 of the Internal
Revenue Code.
o Paid to us by an employer who
establishes a payroll deduction
program.
- ------------------------------------------------------------------------------------------------------------------------
Traditional IRA 0 through 70 o "Regular" traditional IRA o For all types of IRAs, regular
contributions either made by IRA contributions may not
you or paid to us by an exceed $2,000 for a year.
employer who establishes a o No additional regular IRA
payroll deduction program. contributions in the year you
o Rollovers from a qualified plan. turn age 70 1/2 and thereafter.
o Rollovers from a TSA. o Rollover and direct transfer
o Rollovers from another contributions after age 70 1/2
traditional individual retirement must be net of required
arrangement. minimum distributions.
o Direct custodian-to-custodian
transfers from other traditional
individual retirement
arrangements.
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
18
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
CONTRACT AVAILABLE FOR SOURCE OF LIMITATIONS ON
TYPE ANNUITANT ISSUE AGES* CONTRIBUTIONS CONTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Roth IRA 0 through 79 o Regular after-tax contributions o For all types of IRAs, regular
either made by you or paid to IRA contributions may not
us by an employer who exceed $2,000 for a year.
establishes a payroll deduction o Contributions are subject to
program. income limits and other tax
o Rollovers from another Roth rules. See "Contributions
IRA. to Roth IRAs" in "Tax
o Conversion rollovers from a information."
traditional IRA.
o Direct transfers from another
Roth IRA.
- ------------------------------------------------------------------------------------------------------------------------
QP IRA 0 through 79 o Rollovers from a qualified plan. o Rollover contributions after age
o Rollovers from a TSA. 70 1/2 must be net of required
o The EQUI-VEST Express QP IRA minimum distributions.
contract is intended to be a o Regular contributions are not
conduit IRA. Only rollovers from permitted.
a qualified plan or TSA are
permitted.
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
* For traditional IRA contracts, the maximum issue age is 70, but we will issue
up to age 79 if the contribution is a rollover contribution. For all other
contracts we will issue up to annuitant ages 80-83 with our prior approval.
See "Tax information" for a more detailed discussion of sources of
contributions and certain contribution limitations. We may refuse to accept any
contribution if the sum of all contributions under all EQUI-VEST contracts with
the same annuitant would then total more than $1,000,000. We may also refuse to
accept any contribution if the sum of all contributions under all Equitable
Life annuity accumulation contracts that you own would then total more than
$2,500,000.
For information on when contributions are credited see "Dates and prices at
which contract events occur" in "More information" later in this prospectus.
<PAGE>
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19
- --------------------------------------------------------------------------------
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different than the owner.
Under any type of the IRA contract, the owner and annuitant must be the same
person.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank in
U.S. dollars, and made payable to Equitable Life. We do not accept third-party
checks endorsed to us except for rollover contributions, tax-free exchanges or
trustee checks that involve no refund. All checks are subject to our ability to
collect the funds. We reserve the right to reject a payment if it is received in
an unacceptable form.
Additional contributions may also be made by wire transfer or our automatic
investment program. The method of payment is discussed in detail under "About
other methods of payment" in "More information" later in this prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the contributions. If any information is
missing or unclear, we will try to obtain that information. If we are unable to
obtain all of the information we require within five business days after we
receive an incomplete application or form, we will inform the financial
professional submitting the application on your behalf. We will then return the
contribution to you unless you specifically direct us to keep your contribution
until we receive the required information.
Generally, you may make additional contributions at any time. You may do so in
single sum amounts, on a regular basis, or as your financial situation permits.
- -----------------------------------------------------------------------------
Generally our "business day" is any day on which Equitable Life is open and the
New York Stock Exchange is open for trading. We may, however, close due to
emergency conditions.
- -----------------------------------------------------------------------------
SECTION 1035 EXCHANGES
You may apply the value of an existing nonqualified deferred annuity contract
(or life insurance or endowment contract) to purchase an NQ contract in a
tax-free exchange if you follow certain procedures as shown in the form that we
require you to use. Also see "Tax information" later in this prospectus.
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options and the fixed
maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. Listed below
are the currently available portfolios, their investment objectives, and their
advisers.
- -----------------------------------------------------------------------------
You can choose from among the variable investment options.
- -----------------------------------------------------------------------------
<PAGE>
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20
- --------------------------------------------------------------------------------
PORTFOLIOS OF EQ ADVISORS TRUST
<TABLE>
<CAPTION>
PORTFOLIO NAME OBJECTIVE ADVISER
- ---------------------------------- -------------------------------------------------- -----------------------------------------
<S> <C> <C>
EQ/Aggressive Stock Long-term growth of capital Alliance Capital Management L.P.,
Massachusetts Financial Services Company
- ---------------------------------- -------------------------------------------------- -----------------------------------------
EQ/Balanced High return through a combination of current Alliance Capital Management L.P.
income and capital appreciation Capital Guardian Trust Company,
Prudential Investments LLC,
Jennison Associates LLC
- ---------------------------------- -------------------------------------------------- -----------------------------------------
Alliance Common Stock Long-term growth of capital and increasing Alliance Capital Management L.P.
income
- ---------------------------------- -------------------------------------------------- -----------------------------------------
Alliance Conservative Investors High total return without, in the adviser's Alliance Capital Management L.P.
opinion, undue risk to principal
- ---------------------------------- -------------------------------------------------- -----------------------------------------
Alliance Equity Index Total return (before EQ Advisors Trust and Alliance Capital Management L.P.
Separate Account A annual expenses) that
approximates the total return performance of the
Standard & Poor's 500 Composite Stock Price
Index
- ---------------------------------- -------------------------------------------------- -----------------------------------------
Alliance Global Long-term growth of capital Alliance Capital Management L.P.
- ---------------------------------- -------------------------------------------------- -----------------------------------------
Alliance Growth and Income High total return through a combination of Alliance Capital Management L.P.
current income and capital appreciation
- ---------------------------------- -------------------------------------------------- -----------------------------------------
Alliance Growth Investors High total return consistent with the adviser's Alliance Capital Management L.P.
determination of reasonable risk
- ---------------------------------- -------------------------------------------------- -----------------------------------------
Alliance High Yield High return by maximizing current income and, Alliance Capital Management L.P.
to the extent consistent with that objective,
capital appreciation
- ---------------------------------- -------------------------------------------------- -----------------------------------------
Alliance Intermediate High current income consistent with relative Alliance Capital Management L.P.
Government Securities stability of principal
- ---------------------------------- -------------------------------------------------- -----------------------------------------
Alliance International Long-term growth of capital Alliance Capital Management L.P.
- ---------------------------------- -------------------------------------------------- -----------------------------------------
Alliance Money Market High level of current income while preserving Alliance Capital Management L.P.
assets and maintaining liquidity
- ---------------------------------- -------------------------------------------------- -----------------------------------------
Alliance Quality Bond High current income consistent with preservation Alliance Capital Management L.P.
of capital
- ---------------------------------- -------------------------------------------------- -----------------------------------------
</TABLE>
<PAGE>
- -----
21
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------- -------------------------------------------------- -----------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER
- ------------------------------- -------------------------------------------------- -----------------------------------------
<S> <C> <C>
Alliance Small Cap Growth Long-term growth of capital Alliance Capital Management L.P.
- ------------------------------- -------------------------------------------------- -----------------------------------------
EQ/Alliance Premier Growth Long-term growth of capital Alliance Capital Management L.P.
- ------------------------------- -------------------------------------------------- -----------------------------------------
EQ/Alliance Technology Long-term growth of capital Alliance Capital Management L.P.
- ------------------------------- -------------------------------------------------- -----------------------------------------
Capital Guardian Research Long-term growth of capital Capital Guardian Trust Company
- ------------------------------- -------------------------------------------------- -----------------------------------------
Capital Guardian U.S. Equity Long-term growth of capital Capital Guardian Trust Company
- ------------------------------- -------------------------------------------------- -----------------------------------------
EQ/Evergreen Long-term growth of capital Evergreen Asset Management Corp.
- ------------------------------- -------------------------------------------------- -----------------------------------------
EQ/Evergreen Foundation In order of priority, reasonable income, Evergreen Asset Management Corp.
conservation of capital, and capital appreciation
- ------------------------------- -------------------------------------------------- -----------------------------------------
MFS Emerging Growth Long-term capital growth Massachusetts Financial Services Company
Companies
- ------------------------------- -------------------------------------------------- -----------------------------------------
MFS Growth with Income Reasonable current income and long-term Massachusetts Financial Services Company
growth of capital and income
- ------------------------------- -------------------------------------------------- -----------------------------------------
MFS Research Long-term growth of capital and future income Massachusetts Financial Services Company
- ------------------------------- -------------------------------------------------- -----------------------------------------
Mercury Basic Value Equity Capital appreciation and, secondarily, income Mercury Asset Management US
- ------------------------------- -------------------------------------------------- -----------------------------------------
Mercury World Strategy High total investment return Mercury Asset Management US
- ------------------------------- -------------------------------------------------- -----------------------------------------
Morgan Stanley Emerging Long-term capital appreciation Morgan Stanley Asset Management
Markets Equity
- ------------------------------- -------------------------------------------------- -----------------------------------------
EQ/Putnam Balanced Balanced investment Putnam Investment Management, Inc.
- ------------------------------- -------------------------------------------------- -----------------------------------------
EQ/Putnam Growth & Income Capital growth, current income is a secondary Putnam Investment Management, Inc.
Value objective
- ------------------------------- -------------------------------------------------- -----------------------------------------
T. Rowe Price Equity Income Substantial dividend income and also capital T. Rowe Price Associates, Inc.
appreciation
- ------------------------------- -------------------------------------------------- -----------------------------------------
T. Rowe Price International Long-term growth of capital Rowe Price-Fleming International, Inc.
Stock
- ------------------------------- -------------------------------------------------- -----------------------------------------
Warburg Pincus Small Company Long-term capital appreciation Warburg Pincus Asset Management, Inc.
Value
- ------------------------------- -------------------------------------------------- -----------------------------------------
</TABLE>
Other important information about the portfolios is included in the prospectus
for EQ Advisors Trust attached at the end of this
prospectus.
<PAGE>
- ----------
22
- --------------------------------------------------------------------------------
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. You can allocate your contributions to one or more of these fixed
maturity options. However, you may not allocate more than one contribution to
any one fixed maturity option. These amounts become part of our general account
assets. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in contracts issued in Maryland.
- -----------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity
- -----------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution. If you make any withdrawals or
transfers from a fixed maturity option before the maturity date, we will make a
"market value adjustment" that may increase or decrease any fixed maturity
amount you have left in that fixed maturity option. We discuss the market value
adjustment below and in greater detail later in this prospectus in "More
information."
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amount will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on June 15th for each of the maturity years 2001 through 2010.
Not all of these fixed maturity options will be available for annuitants ages 76
and older. See "Allocating your contributions" below. As fixed maturity options
expire, we expect to add maturity years so that generally 10 fixed maturity
options are available at any time.
We will not accept allocations to a fixed maturity option if on the date the
contribution is to be applied:
o you previously allocated a contribution or made a transfer to the same
fixed maturity option; or
o the rate to maturity is 3% or less; or
o the fixed maturity option's maturity date is within the current calendar
year; or
o the fixed maturity option's maturity date is later than the date annuity
payments are to begin.
YOUR CHOICES AT THE MATURITY DATE. We will notify you at least 45 days before
each of your fixed maturity options is scheduled to mature. At that time, you
may choose to have one of the following take place on the maturity date, as long
as none of the conditions listed above or in "Allocating your contributions,"
below would apply:
(a) transfer the maturity value into another available fixed maturity option,
or into any of the variable investment options; or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
Alliance Money Market option, or another investment option if we are required to
do so by any state regulation or, if we change our procedures in the future.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender or termination of your contract, or when we make deductions for
charges) from a fixed maturity option before it matures we will make a market
value adjustment, which will increase or decrease
<PAGE>
- ----------
23
- --------------------------------------------------------------------------------
any fixed maturity amount you have in that fixed maturity option. The amount of
the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate an
amount to a fixed maturity option to the time that you take a withdrawal, the
market value adjustment will be negative. Likewise, if interest rates drop at
the end of that time, the market value adjustment will be positive. Also, the
amount of the market value adjustment, either up or down, will be greater the
longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this prospectus. The Appendix to this prospectus provides an example of how the
market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among two ways to allocate your contributions: self-directed
and principal assurance.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all of the investment
options. However, you may not allocate more than one contribution to any one
fixed maturity option. Allocations must be in whole percentages and you may
change your allocation percentages at any time. However, the total of your
allocations must equal 100%. Once your contributions are allocated to the
investment options they become part of your account value. We discuss account
value in "Determining your contract's value."
PRINCIPAL ASSURANCE ALLOCATION
Under this allocation program, you select a fixed maturity option and we specify
the portion of your initial contribution to be allocated to that fixed maturity
option in an amount that will cause the maturity value to equal the amount of
your entire initial contribution on the fixed maturity option's maturity date.
The maturity date you select generally may not be later than 10 years, or
earlier than 6 years from your contract date. You allocate the rest of your
contribution to the variable investment options however you choose.
For example, if your initial contribution is $10,000, and on March 1, 2000 you
chose the fixed maturity option with a maturity date of June 15, 2009, since the
rate to maturity was 6.45% on March 1, 2000, we would have allocated $5,596 to
that fixed maturity option and the balance to your choice of variable investment
options. On the maturity date your value in the fixed maturity option would be
$10,000.
The principal assurance allocation is only available for annuitant ages 75 or
younger when the contract is issued. If you are purchasing an Equitable Life
traditional IRA or QP IRA contract, before you select a maturity year that would
extend beyond the year in which you will reach age 70 1/2, you should consider
whether your value in the variable investment options, or your other traditional
IRA funds are sufficient to meet your required minimum distributions. See "Tax
information."
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it to
us for a refund. To exercise this cancellation right you must mail the contract
directly to our processing office within 10 days after you receive it. If state
law requires, this "free look" period may be longer.
<PAGE>
- ----------
24
- --------------------------------------------------------------------------------
For contributions allocated to the variable investment options, your refund will
equal your contributions, reflecting any investment gain or loss that also
reflects the daily charges we deduct. For contributions allocated to the fixed
maturity options, your refund will equal the amount of the contribution
allocated to the fixed maturity options reflecting any positive or negative
market value adjustments. Some states require that we refund the full amount of
your contribution (not including any investment gain or loss, interest, or
market value adjustment). For IRA contracts returned to us within seven days
after you receive it, we are required to refund the full amount of your
contribution.
We may require that you wait six months before you apply for a contract with us
again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" for possible consequences of cancelling your
contract.
In addition to the cancellation right described above, if you fully or partially
convert an existing traditional IRA contract to a Roth IRA contract, you may
cancel your Roth IRA contract and return to a traditional IRA contract. Our
processing office, or your financial professional, can provide you with the
cancellation instructions. Ask for the form entitled "EQUI-VEST Roth IRA
Re-Characterization Form."
<PAGE>
2
Determining your contract's value
- ----------------
25
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the: (i) values you have in the variable
investment options and (ii) market adjusted amounts you have in the fixed
maturity options. These amounts are subject to certain fees and charges
discussed under "Charges and expenses."
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value less: (i) any
applicable withdrawal charges and (ii) the total amount or a pro rata portion of
the annual administrative charge. Please see "Surrendering your contract to
receive its cash value" in "Accessing your money."
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
- -----------------------------------------------------------------------------
Units measure your value in each variable investment option.
- -----------------------------------------------------------------------------
The unit value for each variable investment option depends on the investment
performance of that option minus daily charges for mortality and expense risks
and other expenses. On any day, your value in any variable investment option
equals the number of units credited to that option, adjusted for any units
purchased for or deducted from your contract under that option, multiplied by
that day's value for one unit. The number of your contract units in any variable
investment option does not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal
charges); or
(iii) increased to reflect a transfer into, or decreased to reflect a
transfer out of a variable investment option.
In addition, when we deduct the annual administrative charge or third-party
transfer or exchange charge will reduce the number of units credited to your
contract. A description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date is
the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value.
<PAGE>
3
Transferring your money
among investment
options
- ----------------
26
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer some
or all of your account value among the investment options, subject to the
following:
o you must transfer at least $300 of account value or, if less, the entire
amount in the investment option. We may waive the $300 requirement.
o you may not transfer to a fixed maturity option in which you already have
value.
o you may not transfer to a fixed maturity option if its maturity date is
later than the date annuity payments are to begin.
o if you make transfers out of a fixed maturity option other than at its
maturity date the transfer may cause a market value adjustment.
Subject to the terms of your contract, upon advance notice, we may change or
establish additional restrictions on transfers among the investment options. A
transfer request does not change your percentages for allocating current or
future contributions among the investment options.
You may request a transfer in writing or by telephone using TOPS. (We anticipate
that transfers will be available through EQAccess by the end of 2000.) You must
send in all signed written requests directly to our processing office. Transfer
requests should specify:
(1) the contract number,
(2) the dollar amounts to be transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
MARKET TIMING.
You should note that the product is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in market
timing, making programmed transfers, frequent transfers or transfers that are
large in relation to the total assets of the underlying mutual fund portfolio.
Market timing strategies are disruptive to the underlying mutual fund portfolios
in which the variable investment options invest. If we determine that your
transfer patterns among the variable investment options reflect a market timing
strategy, we reserve the right to take action including, but not limited to:
restricting the availability of transfers through telephone requests, facsimile
transmissions, automated telephone services, Internet services or any electronic
transfer services. We may also refuse to act on transfer instructions of an
agent acting under a power of attorney who is acting on behalf of more than one
owner.
AUTOMATIC TRANSFER OPTIONS
GENERAL DOLLAR-COST AVERAGING
Dollar-cost averaging allows you to gradually allocate amounts to the variable
investment options by periodically transferring approximately the same dollar
amount to the variable investment options you select. This will cause you to
purchase more units if the unit's value is low and fewer units if the unit's
value is high. Therefore, you may get a lower average cost per unit over the
long term. This plan of investing, however, does not guarantee that you will
earn a profit or be protected against losses.
One of our automatic transfer options, referred to as general dollar-cost
averaging, allows you to have amounts automatically transferred from the
Alliance Money Market option to the other variable investment options on a
monthly basis. In order to elect the general dollar-cost averaging option you
must have a minimum of $2,000 in the Alliance Money Market option on the date we
receive your election form at our processing office. You can specify the number
of monthly transfers or instruct us to continue to make monthly transfers until
all available amounts in the Alliance Money Market option have been transferred
out.
The minimum amount that we will transfer each month is $50. The maximum amount
we will transfer is equal to your
<PAGE>
- ----------
27
- --------------------------------------------------------------------------------
value in the Alliance Money Market option at the time the program is elected,
divided by the number of transfers scheduled to be made.
If, on any transfer date, your value in the Alliance Money Market option is
equal to or less than the amount you have elected to have transferred, the
entire amount will be transferred. General dollar-cost averaging will then end.
You may change the transfer amount once each contract year, or cancel this
program at any time.
You may not elect dollar-cost averaging if you are participating in the
rebalancing program.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually).
While your rebalancing program is in effect, we will transfer amounts among each
variable investment option so that the percentage of your account value that you
specify is invested in each option at the end of each rebalancing date. Your
entire account value in the variable investment options must be included in the
rebalancing program.
- -----------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional and/or
financial adviser before electing the program.
- -----------------------------------------------------------------------------
You may elect the rebalancing program at any time. To be eligible, you must have
at least $5,000 of account value in the variable investment options. You may
also change your allocation instructions or cancel the program at any time. If
you request a transfer while the rebalancing program is in effect, we will
process the transfer as requested; the rebalancing program will remain in effect
unless you request that it be canceled in writing.
You may not elect the rebalancing program if you are participating in the
dollar-cost averaging program. Rebalancing is not available for amounts you have
allocated in the fixed maturity options.
<PAGE>
4
Accessing your money
- ----------------
28
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. For the tax consequences of taking
withdrawals, see "Tax information."
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
METHOD OF WITHDRAWAL
- ------------------------------------------------------------------
MINIMUM
CONTRACT LUMP SUM SYSTEMATIC DISTRIBUTION
- ------------------------------------------------------------------
<S> <C> <C> <C>
NQ Yes Yes No
- ------------------------------------------------------------------
Traditional IRA Yes Yes Yes
- ------------------------------------------------------------------
QP IRA Yes Yes Yes
- ------------------------------------------------------------------
Roth IRA Yes Yes No
- ------------------------------------------------------------------
</TABLE>
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time while the
annuitant is living and before annuity payments begin. The minimum amount you
may withdraw at any time is $300. If you request a withdrawal that leaves your
account value less than $500, we may treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its cash
value" below.
Lump sum withdrawals in excess of the 10% free withdrawal amount may be subject
to a withdrawal charge (see "10% free withdrawal amount" in "Charges and
Expenses").
SYSTEMATIC WITHDRAWALS
(All contracts)
You may take systematic withdrawals if you have at least $20,000 of account
value in the variable investment options. You may take systematic withdrawals on
a monthly or quarterly basis. The minimum amount you may take for each
withdrawal is $300.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date,
your withdrawals will be made on the first day of the month. A check for the
amount of the withdrawal will be mailed to you or, if you prefer, we will
electronically transfer the money to your checking account.
You may withdraw a fixed-dollar amount from the variable investment options. You
do not have to maintain a minimum amount. You may elect to have the amount of
the withdrawal subtracted from your account value in one of three ways:
(1) pro rata from more than one variable investment option (without using up
your total value in those options); or
(2) pro rata from more than one variable investment option (until your value
in those options is used up); or
(3) you may specify a dollar amount from only one variable investment option.
You can cancel the systematic withdrawal option at any time.
Amounts withdrawn in excess of the 10% free withdrawal amount may be subject to
a withdrawal charge.
MINIMUM DISTRIBUTION WITHDRAWALS
(Traditional IRA and QP IRA contracts - See "Tax information")
We offer the minimum distribution withdrawal option to help you meet lifetime
required minimum distributions under federal income tax rules. You may elect
this option in the year in which you reach age 70 1/2 and have account value in
the variable investment options of at least $2,000. The minimum amount we will
pay out is $300, or if less, your account value. If your account value is less
than $500 after the withdrawal, we may terminate your contract and pay you its
cash value. You may elect the method you want us to use to calculate your
minimum distribution withdrawal from the choices we offer. Currently, minimum
distribution withdrawal payments will be made annually.
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your values in the variable investment options. If those amounts are
insufficient, we will make up required amounts from the
<PAGE>
- ----------
29
- --------------------------------------------------------------------------------
fixed maturity options to the extent you have value in those options. A market
value adjustment may apply. We will calculate your payment each year based on
your account value at the end of each prior calendar year, based on the method
you choose.
- -----------------------------------------------------------------------------
We will send to Traditional IRA and QP IRA owners a form outlining the minimum
distribution options available in the year you reach age 70 1/2 (if you have not
begun your annuity payments before that time).
- -----------------------------------------------------------------------------
AUTOMATIC DEPOSIT SERVICE
If you are receiving required minimum distribution payments from a Traditional
IRA or QP IRA contract you may use our automatic deposit service.
Under this service we will automatically deposit the required minimum
distribution payment from your Traditional IRA or QP IRA contract directly into
an existing EQUI-VEST NQ or Roth IRA or an existing EQUI-VEST Express NQ or Roth
IRA contract according to your allocation instructions. Please note that you
must have compensation to make regular contributions to Roth IRAs. See "Tax
information."
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options. If there is
insufficient value or no value in the variable investment options, any
additional amount of the withdrawal required or the total amount of the
withdrawal will be withdrawn from the fixed maturity options in order of the
earliest maturity date(s). A market value adjustment may apply if withdrawals
are from the fixed maturity options.
SURRENDER OF YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. For a
surrender to be effective, we must receive your written request and your
contract at our processing office. We will determine your cash value on the date
we receive the required information. All benefits under the contract will
terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below. We
will usually pay the cash value within seven calendar days, but we may delay
payment as described in "When to expect payments" below. For the tax
consequences of surrenders, see "Tax information."
TERMINATION
We may terminate your contract and pay you the cash value if:
(1) your account value is less than $500 and you have not made contributions
to your contract for a period of three years; or
(2) you request a lump sum withdrawal that reduces your account value to an
amount less than $500; or
(3) you have not made any contributions within 120 days from your contract
date.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity payout option, payment of a death benefit, payment of any
amount you withdraw (less any withdrawal charge) and, upon surrender or
termination, payment of the cash value. We may postpone such payments or
applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
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(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your values in the fixed maturity options
(other than for death benefits) for up to six months while you are living. We
also may defer payments for a reasonable amount of time (not to exceed 15 days)
while we are waiting for a contribution check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
EQUI-VEST Express offers you several choices of annuity payout options. Some
enable you to receive fixed annuity payments, and others enable you to receive
variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own and the annuitant's age at
contract issue.
<TABLE>
<S> <C>
- ------------------------------------------------------------------
Fixed annuity payout o Life annuity
options o Life annuity with period certain
o Life annuity with refund certain
o Period certain annuity
- ------------------------------------------------------------------
Variable annuity payout o Life annuity (not available in
options New York)
o Life annuity with period certain
- ------------------------------------------------------------------
</TABLE>
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of
a selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy or the joint life
expectancy of you and your spouse. A life annuity with period certain is
the form of annuity under the contracts that you will receive if you do
not elect a different payout option. In this case the period certain will
be based on the annuitant's age and will not exceed 10 years or the
annuitant's life expectancy.
o Life annuity with refund certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This
payout option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guarantee period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death,
payments continue to the survivor. We may offer other payout options not
outlined here. Your financial professional can provide details.
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FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments that will be based
either on the tables of guaranteed annuity payments in your contract or on our
then current annuity rates, whichever is more favorable for you.
VARIABLE ANNUITY PAYOUT OPTIONS
Variable annuities may be funded through your choice of variable investment
options investing in portfolios of EQ Advisors Trust. The contract also offers a
fixed annuity payout option that can be elected in combination with the variable
annuity payout options. The amount of each variable annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
We also make the variable annuity payout options available to owners of our
single premium deferred annuity ("SPDA") contract and certain other combination
fixed and variable annuity contracts. Such contractholders who are considering
purchasing a variable payout option should also review the information in this
prospectus relating to the variable investment options. EQ Advisors Trust
prospectus (directly following this prospectus), and the sections of the SAI
which discuss the variable annuity payout option should also be reviewed.
We may offer other payout options not outlined here. Your financial professional
can provide details.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on the
payout option that you choose, and the timing of your purchase as it relates to
any withdrawal charges or market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
For the fixed annuity payout options and variable annuity payout options, no
withdrawal charge is imposed if you select a life annuity, life annuity with
period certain or life annuity with refund certain.
For the fixed annuity payout option, the withdrawal charge applicable is imposed
if you select a period certain. Any applicable withdrawal charge will be waived
for Traditional IRA, Roth IRA or QP IRA contracts if the period certain is more
than 10 years.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return your
contract before annuity payments begin. Unless you choose a different payout
option, we will pay annuity payments under a life annuity with a period certain
of 10 years. You choose whether these payments will be fixed or variable. The
contract owner and annuitant must meet the issue age and payment requirements.
You can choose the date annuity payments are to begin. You can change the date
your annuity payments are to begin anytime before that date as long as you do
not choose a date later than the 28th day of any month. Also, that date may not
be later than the contract date anniversary that follows the annuitant's 90th
birthday. This may be different in some states.
Before your annuity payments are to begin, we will notify you by letter that the
annuity payout options are available. Once you have selected a payout option and
payments have begun, no change can be made other than transfers (if permitted in
the future) among the variable investment options if a variable annuity is
selected.
The amount of the annuity payments will depend on:
(1) the amount applied to purchase the annuity;
(2) the type of annuity chosen, and whether it is fixed or variable. If you
choose a variable annuity, we will use an assumed base rate of 5% to
calculate the level of payments. However, in states where that rate is not
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permitted the assumed base rate will be 3 1/2%. We provide information
about the assumed base rate in the SAI;
(3) in the case of a life annuity, the annuitant's age (or the annuitant's and
joint annuitant's ages); and
(4) in certain instances, the sex of the annuitant(s).
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less than
$2,000 or the initial payment under the form elected is less than $20 monthly,
we reserve the right to pay the account value in a single sum rather than as
payments under the payout option chosen.
<PAGE>
5
Charges and expenses
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CHARGES THAT EQUITABLE LIFE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o A charge for other expenses
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o on the last day of the contract year - an annual administrative charge, if
applicable
o charge for third-party transfer or exchange
o at the time you make certain withdrawals or surrender your contract, or
your contract is terminated - a withdrawal charge
o at the time annuity payments are to begin - charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your
state. An annuity administrative fee may also apply
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" below.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the death benefit.
The daily charge is equivalent to a current annual rate of 0.70% of the net
assets in each variable investment option. We reserve the right under the
contract to increase this charge to 1.75%.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity benefits than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. We may
change the actuarial basis for our guaranteed annuity payment tables, but only
for new contributions and only at five year intervals from the contract date.
Lastly, we assume a mortality risk to the extent that at the time of death, the
death benefit exceeds the cash value of the contract. The expense risk we assume
is the risk that it will cost us more to issue and administer the contracts than
we expect.
To the extent that the mortality and expense risk charges are not needed to
cover the actual expenses incurred, they may be considered an indirect
reimbursement for certain sales and promotional expenses relating to the
contracts.
CHARGE FOR OTHER EXPENSES
We deduct this daily charge from the net assets in each variable investment
option. This charge, together with the annual administrative charge described
below, is for providing administrative and financial accounting services under
the contracts. The daily charge is equivalent to a maximum annual rate of 0.25%
of net assets in each variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on the last business
day of each contract year. We will deduct a pro rata portion of the charge if
you surrender your contract, elect an annuity payout option, or the annuitant
dies during the contract year. We deduct the charge if your account value on the
last day of the contract year, is less than $25,000 under NQ contracts and
$20,000 under IRA contracts. If your account value on such date is $25,000 or
more for NQ ($20,000 or more for IRA) contracts, we do not
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deduct the charge. During the first two contract years, the charge is equal to
$30 or, if less, 2% of your current account value. The charge is $30 for
contract years three and later. We may increase this charge if our
administrative costs rise, but the charge will never exceed $65 annually.
The charge is deducted pro rata from the variable investment options. If those
amounts are insufficient, we will make up the required amounts from the fixed
maturity options to the extent you have value in those options, unless you tell
us otherwise.
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE
We impose a charge for making a direct transfer of amounts from your contract to
a third party, such as in the case of a trustee-to-trustee transfer for an IRA
contract, or if you request that your contract be exchanged for a contract
issued by another insurance company. In either case, we will deduct from your
account value any withdrawal charge that applies and a charge of $25 for each
direct transfer or exchange. We reserve the right to increase this charge to a
maximum of $65.
WITHDRAWAL CHARGE
A withdrawal charge may apply in three circumstances: (1) you make one or more
withdrawals during a contract year; (2) you surrender your contract to receive
its cash value; or (3) we terminate your contract. The amount of the charge will
depend on whether the free withdrawal amount applies, and the availability of
one or more exceptions.
The withdrawal charge equals a percentage of the contributions withdrawn. The
percentage that applies depends on how long each contribution has been invested
in the contract. We determine the withdrawal charge separately for each
contribution according to the following table:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
CONTRACT YEAR
1 2 3 4 5 6 7 8+
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Percentage of
contribution 7% 6% 5% 4% 3% 2% 1% 0%
- --------------------------------------------------------------------------------
</TABLE>
For purposes of calculating the withdrawal charge, we treat the contract year in
which we receive a contribution as "contract year 1." Amounts withdrawn up to
the free withdrawal amount are not considered withdrawal of any contribution. We
also treat contributions that have been invested the longest as being withdrawn
first. We treat contributions as withdrawn before earnings for purposes of
calculating the withdrawal charge. However, federal income tax rules treat
earnings under most NQ contracts as withdrawn first. See "Tax information."
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the amount of the withdrawal charge from
your account value. Any amount deducted to pay withdrawal charges is also
subject to that same withdrawal charge percentage. We deduct the withdrawal
amount and the withdrawal charge pro rata from the variable investment options.
If those amounts are insufficient, we will make up the required amounts from the
fixed maturity options in order of the earliest maturities first. If we deduct
all or a portion of the withdrawal charge from the fixed maturity options, a
market value adjustment may apply. See "About our fixed maturity options" in
"More information."
The withdrawal charge does not apply in the circumstances described below.
10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the time you request a
withdrawal, minus any other withdrawals made during the contract year.
DEATH. The withdrawal charge does not apply if the annuitant dies and a death
benefit is payable to the beneficiary.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE
TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount
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applied to provide an annuity payout option. The current tax charge that might
be imposed varies by state and ranges from 0% to 3.5% (1% in Puerto Rico and 5%
in the U.S. Virgin Islands).
VARIABLE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of up to $350 from the amount to be applied to purchase a
variable annuity payout option.
CHARGES THAT EQ ADVISORS TRUST DEDUCTS
EQ Advisors Trust deducts charges for the following types of fees and expenses:
o investment advisory fees ranging from 0.25% to 1.15%.
o 12b-1 fees of 0.25%.
o operating expenses, such as trustees' fees, independent auditors' fees,
legal counsel fees, administrative service fees, custodian fees, and
liability insurance.
o investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of EQ Advisors Trust are purchased at their net asset value, these fees
and expenses are, in effect, passed on to the variable investment options and
are reflected in their unit values. For more information about these charges,
please refer to the prospectus for EQ Advisors Trust following this prospectus.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal charge
or the mortality and expense risks charge, or change the minimum contribution
requirements. We also may change the minimum death benefit or offer variable
investment options that invest in shares of EQ Advisors Trust that are not
subject to the 12b-1 fee. Group arrangements include those in which a trustee or
an employer, for example, purchases contracts covering a group of individuals on
a group basis. Group arrangements are not available for traditional IRA and Roth
IRA contracts. Sponsored arrangements include those in which an employer allows
us to sell contracts to its employees or retirees on an individual basis.
Our costs for sales, administration, and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts or
that have been in existence less than six months will not qualify for reduced
charges.
We also may establish different rates to maturity for the fixed maturity options
under different classes of contracts for group or sponsored arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules, the
Employee Retirement Income Security Act of 1974, or both. We make no
representations with regard to the impact of these and other applicable laws on
such programs. We recommend that employers, trustees, and others purchasing or
making contracts available for purchase under such programs seek the advice of
their own legal and benefits advisers.
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OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it will be
unfairly discriminatory.
<PAGE>
6
Payment of death benefit
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YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you a written confirmation when we receive your request.
We determine the amount of the death benefit as of the date we receive
satisfactory proof of the annuitant's death and any required instructions for
the method of payment. We describe the death benefit in "Contract features and
benefits," earlier in this prospectus.
On the date we determine the death benefit, your account value will be deducted
from the investment options. We will hold this amount in our general account and
credit it with interest at a rate not less than the rate required by law. If you
have transferred the value of another annuity contract that we issue to your
EQUI-VEST Express contract, the value of the other contract's minimum death
benefit calculated as of the time of the transfer will be included in the total
contributions for the purpose of calculating the minimum death benefit.
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, if you
are the owner and the annuitant and your spouse is the sole primary beneficiary
the contract can be continued as follows:
SUCCESSOR OWNER AND ANNUITANT. For all contracts, your spouse can elect upon
your death to continue the contract as the owner/annuitant and no death benefit
is payable until the surviving spouse's death.
If your surviving spouse decides to continue the contract, then on the contract
date anniversary following your death, we will increase the account value to
equal your current minimum death benefit, if it is higher than the account
value. The increase in the account value will be allocated to the investment
options according to the allocation percentages we have on file for your
contract. Thereafter, withdrawal charges will no longer apply to this amount.
Withdrawal charges will apply if you make additional contributions. These
additional contributions will be withdrawn only after all other amounts have
been withdrawn. In determining whether the minimum death benefit will continue
to grow, we will use your surviving spouse's age (as of the contract date
anniversary).
Also, for IRA contracts, a beneficiary may be able to have limited ownership as
discussed in "Beneficiary continuation option " below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
purposes of receiving federal tax law required distributions from the contract.
When you are not the annuitant under an NQ contract and you die before annuity
payments begin, unless you specify otherwise, we will automatically make the
beneficiary you name to receive the death benefit upon the annuitant's death
your successor owner. If you do not want this beneficiary also to be the
successor owner, you should name a specific successor owner. You may name a
successor owner at any time by sending satisfactory notice to our processing
office.
Unless the surviving spouse of the owner who has died is the successor owner for
this purpose, the entire interest in the contract must be distributed under the
following rules:
o the cash value of the contract must be fully paid to the successor owner
(new owner) by December 31st of the fifth calendar year after your death.
o the successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new
owner's life expectancy). Payments must begin no later than December 31st
following the calendar year of the non-annuitant owner's death. Unless
this alternative is elected, we will pay any
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cash value on December 31st of the fifth calendar year following the year
of your death.
If the surviving spouse is the successor owner, the spouse may elect to continue
the contract. No distributions are required as long as the surviving spouse and
annuitant are living.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the death
benefit in a single sum. However, subject to any exceptions in the contract, our
rules and any applicable requirements under federal income tax rules, the
beneficiary may elect to apply the death benefit to one or more annuity payout
options we offer at the time. See "Your annuity payout options" in "Accessing
your money" earlier in this prospectus. Please note that if you are both the
contract owner and the annuitant, you may elect only a life annuity or any
annuity payout option chosen may not extend beyond the life expectancy of the
beneficiary.
Single sum payments generally are paid through the Equitable Life Access
Account(TM), an interest bearing account with check writing privileges. The
Equitable Life Access Account(TM) is part of Equitable Life's general account.
Beneficiaries have immediate access to the proceeds by writing a check on the
account. We pay interest from the date the single sum is deposited into the
Access Account(TM) until the account is closed.
BENEFICIARY CONTINUATION OPTION
Upon your death under a Traditional IRA, Roth IRA or QP IRA contract, your
beneficiary may generally elect to keep the contract in your name and receive
distributions under the contract instead of receiving the death benefit in a
single sum. In order to elect this option, the beneficiary must be an
individual. Certain trusts with only individual beneficiaries will be treated as
individuals. This election must be made within 60 days following the date we
receive proof of your death. We will increase the account value to equal the
death benefit if the death benefit is greater than the account value.
Under the beneficiary continuation option:
o the contract continues in your name for the benefit of your beneficiary.
o the beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o the guaranteed death benefit provisions will no longer be in effect.
o the beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges will apply. Any partial withdrawal
must be at least $300.
o upon the death of the beneficiary, any remaining death benefit will be
paid in a lump sum to the person the beneficiary chooses.
For Traditional IRA contracts only, if you die AFTER the "Required Beginning
Date" for required minimum distributions (see "Tax information"), the contract
will continue if:
(a) you were receiving minimum distribution withdrawals from this contract;
and
(b) the pattern of minimum distribution withdrawals you chose was based in
part on the life of the designated beneficiary.
The withdrawals will then continue to be paid to the beneficiary on the same
basis as you chose before your death. We will be able to tell your beneficiary
whether this option is available. You should contact our processing office for
further information.
For all of the above contracts, if you die BEFORE the Required Beginning Date
(and for traditional IRA therefore you were not taking minimum distribution
withdrawals under the contract) the beneficiary may choose one of the following
two beneficiary continuation options:
1. Payments over life expectancy period. The beneficiary can receive annual
minimum distributions based on the
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beneficiary's life expectancy. If there is more than one beneficiary, the
shortest life expectancy is used. These minimum distributions must begin by
December 31st of the calendar year following the year of your death. In some
situations, a spouse beneficiary who elects to continue the contract in your
name under the beneficiary continuation option instead of electing successor
survivor/owner annuitant status may choose to delay beginning the minimum
distributions until the December 31st of the calendar year in which you would
have turned age 70 1/2.
2. Five Year Rule. The beneficiary can take withdrawals as desired. If the
beneficiary does not withdraw the entire account value by the December 31st of
the fifth calendar year following your death, we will pay any amounts remaining
under the contract to the beneficiary by that date. If you have more than one
beneficiary, and one of them elects this option, then all of your beneficiaries
will receive this option.
<PAGE>
7
Tax information
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OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to EQUI-VEST Express contracts owned by United States
taxpayers. The tax rules can differ, depending on the type of contract, whether
NQ, Traditional IRA, QP IRA, or Roth IRA. Therefore, we discuss the tax aspects
of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change. We
cannot predict whether, when, or how these rules could change. Any change could
affect contracts purchased before the change.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state income
and other state taxes, federal income tax and withholding rules for non-U.S.
taxpayers, or federal gift and estate taxes. Transfers of the contract, rights
under the contract, or payments under the contract may be subject to gift or
estate taxes. You should not rely only on this document, but should consult your
tax adviser before your purchase.
If you are buying a contract to fund a retirement plan that already provides tax
deferral under the Internal Revenue Code you should do so for the contract's
features and benefits other than tax deferral. In such situations, the tax
deferral of the contract does not provide necessary or additional benefits.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under securities laws);
o if you transfer a contract, for example, as a gift to someone other than
your spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation,
partnership, trust, or other non-natural person).
All nonqualified deferred annuity contracts that Equitable Life and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew that
were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount
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of the payment. For variable annuity payments, your tax-free portion of each
payment is your investment in the contract divided by the number of expected
payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any unrecovered
investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the contract.
If you withdraw an amount which is more than the earnings in the contract as of
the date of the withdrawal, the balance of the distribution is treated as a
return of your investment in the contract and is not taxable.
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o the contract that is the source of the funds you are using to purchase the
NQ contract is another nonqualified deferred annuity contract (or life
insurance or endowment contract).
o the owner and the annuitant are the same under the source contract and the
EQUI-VEST Express NQ contract. If you are using a life insurance or
endowment contract the owner and the insured must be the same on both
sides of the exchange transaction.
The tax basis of the source contract carries over to the EQUI-VEST Express NQ
contract.
A recent case permitted an owner to direct the proceeds of a partial withdrawal
from one nonqualified deferred annuity contract to a different insurer to
purchase a new nonqualified deferred annuity contract on a tax-deferred basis.
Special forms, agreements between the carriers, and provision of cost basis
information may be required to process this type of exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as ordinary
income (not capital gain) to the extent it exceeds your investment in the
contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59 1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax. The
extra penalty tax does not apply to pre-age 59 1/2 distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy) or the joint lives (or joint life expectancy) of you
and a beneficiary.
OTHER INFORMATION
The Treasury Department has the authority to issue guidelines prescribing the
circumstances in which your ability to direct your investment to a particular
portfolio within a separate account may cause you, rather than the insurance
company, to be treated as the owner of the portfolio shares attributable to your
nonqualified annuity contract. In that case, income and gains attributable to
such portfolio shares would be included in your gross income for federal income
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tax purposes. Under current rules, however, we believe that Equitable Life,
and not the owner of a nonqualified annuity contract, would be considered the
owner of the portfolio shares.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Under current law we treat income from NQ contracts as U.S. source. A Puerto
Rico resident is subject to U.S. taxation on such U.S. source income. Only
Puerto Rico source income of Puerto Rico residents is excludable from U.S.
taxation. Income from NQ contracts is also subject to Puerto Rico tax. The
calculation of the taxable portion of amounts distributed from a contract may
differ in the two jurisdictions. Therefore, you might have to file both U.S. and
Puerto Rico tax returns, showing different amounts of income from the contract
for each tax return. Puerto Rico generally provides a credit against Puerto Rico
tax for U.S. tax paid. Depending on your personal situation and the timing of
the different tax liabilities, you may not be able to take full advantage of
this credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS ("IRAS")
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types of
such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds the
assets for the benefit of the IRA owner. The assets can include mutual funds and
certificates of deposit. In an individual retirement annuity, an insurance
company issues an annuity contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis including SEP-IRAs
and SIMPLE-IRAs, issued and funded in connection with employer-sponsored
retirement plans. EQUI-VEST Express traditional IRA and QP IRA are
traditional IRAs.
o Roth IRAs, first available in 1998, funded on an after-tax basis. EQUI-VEST
Express Roth IRA is a Roth IRA.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required to
combine IRA values or contributions for tax purposes. For further information
about individual retirement arrangements, you can read Internal Revenue Service
Publication 590 ("Individual Retirement Arrangements (IRAs)"). This publication
is usually updated annually, and can be obtained from any IRS district office or
the IRS Web site (www.irs.gov).
Equitable Life designs its traditional IRA contracts to qualify as "individual
retirement annuities" under Section 408(b) of the Internal Revenue Code. This
prospectus contains the information that the IRS requires you to have before you
purchase an IRA. This section of the prospectus covers some of the special tax
rules that apply to IRAs. The next section covers Roth IRAs. Education IRAs are
not discussed in this prospectus because they are not available in individual
retirement annuity form.
The EQUI-VEST Express IRA contract has been approved by the IRS as to form for
use as a traditional IRA. This IRS approval is a determination only as to the
form of the annuity. It does not represent a determination of the merits of the
annuity as an investment. The IRS approval does not address every feature
possibly available under the EQUI-VEST Express IRA contract. Although we do not
have IRS approval as to form, we believe that version of Roth IRA currently
offered complies with the requirements of the Internal Revenue Code.
CANCELLATION
You can cancel any version of the EQUI-VEST Express IRA contract (traditional
IRA, QP IRA, or Roth IRA) by following
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the directions under "Your right to cancel within a certain number of days" in
"Contract features and benefits" earlier in the prospectus. You can cancel an
EQUI-VEST Express Roth IRA contract issued as a result of a full or partial
conversion of any EQUI-VEST traditional IRA contract by following the
instructions in the "EQUI-VEST Roth IRA Re-Characterization Form." The form is
available from our processing office or your financial professional. If you
cancel a traditional IRA, or Roth IRA contract, we may have to withhold tax, and
we must report the transaction to the IRS. A contract cancellation could have an
unfavorable tax impact.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES
(TRADITIONAL IRAS)
CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types of
contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS
The EQUI-VEST Express traditional IRA is intended to receive regular
contributions. Regular contributions are not permitted for QP IRAs.
LIMITS ON CONTRIBUTIONS TO TRADITIONAL IRAS. Generally, $2,000 is the maximum
amount that you may contribute to all IRAs (including Roth IRAs) in any taxable
year. When your earnings are below $2,000, your earned income or compensation
for the year is the most you can contribute. This $2,000 limit does not apply to
rollover contributions or direct custodian-to-custodian transfers into a
traditional IRA. You cannot make regular contributions for the tax year in which
you reach age 70 1/2 or any tax year after that.
SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $2,000, married individuals filing jointly can contribute up
to $4,000 for any taxable year to any combination of traditional IRAs and Roth
IRAs. (Any contributions to Roth IRAs reduce the ability to contribute to
traditional IRAs and vice versa.) The maximum amount may be less if earned
income is less and the other spouse has made IRA contributions. No more than a
combined total of $2,000 can be contributed annually to either spouse's
traditional IRAs and Roth IRAs. Each spouse owns his or her traditional IRAs and
Roth IRAs even if the other spouse funded the contributions. A working spouse
age 70 1/2 or over can contribute up to the lesser of $2,000 or 100% of "earned
income" to a traditional IRA for a nonworking spouse until the year in which the
nonworking spouse reaches age 70 1/2.
DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions that
you can deduct for a tax year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special federal
income tax rules. Your Form W-2 will indicate whether or not you are covered by
such a retirement plan.
IF YOU ARE NOT COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, you can
make fully deductible contributions to your traditional IRAs for each tax year
up to $2,000 or, if less, your earned income.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
adjusted gross income (AGI) is BELOW THE LOWER DOLLAR FIGURE IN A PHASE-OUT
RANGE, you can make fully deductible contributions to your traditional IRAs. For
each tax year your fully deductible contribution can be up to $2,000 or, if
less, your earned income.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls within a PHASE-OUT range, you can make partially deductible
contributions to your traditional IRAs.
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IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls ABOVE THE HIGHER FIGURE IN THE PHASE-OUT RANGE, you may not deduct any
of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $32,000 and $42,000 in 2000. This range will increase every year
until 2005 when the range is $50,000-$60,000.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $52,000 and $62,000 in 2000. This
range will increase every year until 2007 when the range is $80,000-$100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional IRA
contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with AGI of between
$150,000 and $160,000.
To determine the deductible amount of the contribution in 2000, you determine
AGI and subtract $32,000 if you are single, or $52,000 if you are married and
file a joint return with your spouse. The resulting amount is your Excess AGI.
You then determine the limit on the deduction for traditional IRA contributions
using the following formula:
<TABLE>
<S> <C> <C> <C> <C>
($10,000-excess AGI) times $2,000 (or earned Equals the adjusted
- ------------------------------ x income, if less) = deductible
divided by $10,000 contribution
limit
</TABLE>
NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
$2,000 per person limit. See "Excess Contributions" below. You must keep your
own records of deductible and nondeductible contributions in order to prevent
double taxation on the distribution of previously taxed amounts. See
"Withdrawals, payments and transfers of funds out of Traditional IRAs" below.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records pertaining
to such contributions until interests in all traditional IRAs are fully
distributed.
WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15th return
filing deadline (without extensions) of the following calendar year to make your
regular contributions for a tax year.
ROLLOVERS AND TRANSFERS
Rollover contributions may be made to a traditional IRA from these sources:
o qualified plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial
accounts); and
o other traditional IRAs.
Any amount contributed to a traditional IRA after you reach age 70 1/2 must be
net of your required minimum distribution for the year in which the rollover or
direct transfer contribution is made.
ROLLOVERS FROM QUALIFIED PLANS OR TSAS
There are two ways to do rollovers:
o do it yourself
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You actually receive a distribution that can be rolled over and you roll it over
to a traditional IRA within 60 days after the date you receive the funds. The
distribution from your qualified plan or TSA will be net of 20% mandatory
federal income tax withholding. If you want, you can replace the withheld funds
yourself and roll over the full amount.
o direct rollover
You tell your qualified plan trustee or TSA issuer/custodian/fiduciary to send
the distribution directly to your traditional IRA issuer. Direct rollovers are
not subject to mandatory federal income tax withholding.
All distributions from a TSA or qualified plan are eligible rollover
distributions, unless the distribution is:
o only after-tax contributions you made to the plan; or
o "required minimum distributions" after age 70 1/2 or separation from
service; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of
you and your designated beneficiary; or
o a hardship withdrawal; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
o a qualified domestic relations order distribution to a beneficiary who is
not your current spouse or former spouse.
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently than
once in every 12-month period.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited traditional IRA to one or more other traditional
IRAs. Also, in some cases, traditional IRAs can be transferred on a tax-free
basis between spouses or former spouses as a result of a court ordered divorce
or separation decree.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than $2,000; or
o regular contributions of more than earned income for the year, if that
amount is under $2,000; or
o regular contributions to a traditional IRA made after you reach age 70 1/2;
or
o rollover contributions of amounts which are not eligible to be rolled over.
For example, after-tax contributions to a qualified plan or minimum
distributions required to be made after age 70 1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular contribution, you
cannot take a tax deduction for the amount withdrawn. You do not have to include
the excess contribution withdrawn as part of your income. It is also not subject
to the 10% additional penalty tax on early distributions discussed below in
"Early distribution penalty tax." You do have to withdraw any earnings that are
attributed to the excess contribution. The withdrawn earnings would be included
in your gross income and could be subject to the 10% penalty tax.
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Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from a qualified retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
RECHARACTERIZATIONS
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your contract
and annuity payments from your contract. Death benefits are also taxable. Except
as discussed below, the total amount of any distribution from a traditional IRA
must be included in your gross income as ordinary income.
If you have ever made nondeductible IRA contributions to any traditional IRA (it
does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. You must keep permanent tax records of all of your
nondeductible contributions to traditional IRAs. At the end of any year in which
you have received a distribution from any traditional IRA, you calculate the
ratio of your total nondeductible Traditional IRA contributions (less any
amounts previously withdrawn tax free) to the total account balances of all
traditional IRAs you own at the end of the year plus all traditional IRA
distributions made during the year. Multiply this by all distributions from the
traditional IRA during the year to determine the nontaxable portion of each
distribution.
In addition, a distribution is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" above; or
o the entire amount received is rolled over to another traditional IRA (see
"Rollovers and transfers" above); or
o in certain limited circumstances, where the traditional IRA acts as a
conduit, you roll over the entire amount into a qualified plan or TSA that
accepts rollover contributions. To get this conduit Traditional IRA
treatment:
o the source of funds you used to establish the traditional IRA must
have been a rollover contribution from a qualified plan, and
o the entire amount received from the traditional IRA (including any
earnings on the rollover contribution) must be rolled over into
another qualified plan within 60 days of the date received.
Similar rules apply in the case of a TSA.
However, you may lose conduit treatment, if you make an eligible rollover
distribution contribution to a Traditional IRA and you commingle this
contribution with other contributions. In that case, you may not be able to roll
over these eligible rollover distribution contributions and earnings to another
qualified plan or TSA at a future date.
The EQUI-VEST Express QP IRA contract can be used as a conduit IRA if amounts
are not commingled. Distributions from a traditional IRA are not eligible for
ten-year averaging and long-term capital gain treatment available to certain
distributions from qualified plans.
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REQUIRED MINIMUM DISTRIBUTIONS
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your Traditional IRAs beginning at age 70 1/2.
WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION. The first
required minimum distribution is for the calendar year in which you turn age
70 1/2. You have the choice to take this first required minimum distribution
during the calendar year you actually reach age 70 1/2, or to delay taking it
until the first three-month period in the next calendar year (January 1 -
April 1). Distributions must start no later than your "Required Beginning Date,"
which is April 1st of the calendar year after the calendar year in which you
turn age 70 1/2. If you choose to delay taking the first annual minimum
distribution, then you will have to take two minimum distributions in that year
- - the delayed one for the first year and the one actually for that year. Once
minimum distributions begin, they must be made at some time each year.
HOW YOU CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches to
taking required minimum distributions - "account-based" or "annuity-based."
Account-based method. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by a
life expectancy factor from IRS tables. This gives you the required minimum
distribution amount for that particular IRA for that year. The required minimum
distribution amount will vary each year as the account value and your life
expectancy factors change.
You have a choice of life expectancy factors, depending on whether you choose a
method based only on your life expectancy, or the joint life expectancies of you
and another individual. You can decide to "recalculate" your life expectancy
every year by using your current life expectancy factor. You can decide instead
to use the "term certain" method, where you reduce your life expectancy by one
every year after the initial year. If your spouse is your designated beneficiary
for the purpose of calculating annual account-based required minimum
distributions, you can also annually recalculate your spouse's life expectancy
if you want. If you choose someone who is not your spouse as your designated
beneficiary for the purpose of calculating annual account-based required minimum
distributions, you have to use the term certain method of calculating that
person's life expectancy. If you pick a nonspouse designated beneficiary, you
may also have to do another special calculation.
You can later apply your traditional IRA funds to a life annuity-based payout.
You can only do this if you already chose to recalculate your life expectancy
annually (and your spouse's life expectancy if you select a spousal joint
annuity). For example, if you anticipate selecting any form of life annuity
payout after you are age 70 1/2, you must have elected to recalculate life
expectancies.
Annuity-based method. If you choose an annuity-based method you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary, or for a
period certain not extending beyond applicable life expectancies.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No.
If you want, you can choose a different method and a different beneficiary for
each of your Traditional IRAs and other retirement plans. For example, you can
choose an annuity payout from one IRA, a different annuity payout from a
qualified plan, and an account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE? No, unless you affirmatively select an annuity payout
option or an account-based withdrawal option such as our minimum distribution
withdrawal option. Because the options we offer do not cover every option
permitted under federal income tax rules, you may prefer to do your own required
minimum distribution calculations for one or more of your traditional IRAs.
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WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice-versa.
However, the IRS will let you calculate the required minimum distribution for
each traditional IRA that you maintain, using the method that you picked for
that particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount, you
may choose to take your annual required minimum distribution from any one or
more traditional IRAs that you own.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that your age 70 1/2 is approaching. If you do
not select a method with us, we will assume you are taking your required minimum
distribution from another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? If you die
after either (a) the start of annuity payments, or (b) your Required Beginning
Date, your beneficiary must receive payment of the remaining values in the
contract at least as rapidly as under the distribution method before your death.
In some circumstances, your surviving spouse may elect to become the owner of
the traditional IRA and halt distributions until he or she reaches age 70 1/2.
If you die before your Required Beginning Date and before annuity payments
begin, federal income tax rules require complete distribution of your entire
value in the contract within five years after your death. Payments to a
designated beneficiary over the beneficiary's life or over a period certain that
does not extend beyond the beneficiary's life expectancy are also permitted, if
these payments start within one year of your death. A surviving spouse
beneficiary can also (a) delay starting any payments until you would have
reached age 70 1/2 or (b) roll over your traditional IRA into his or her own
traditional IRA.
SUCCESSOR ANNUITANT AND OWNER
If your spouse is the sole primary beneficiary and elects to become the
successor annuitant and owner, no death benefit is payable until your surviving
spouse's death.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA as
collateral for a loan or other obligation. If you borrow against your IRA or use
it as collateral, its tax-favored status will be lost as of the first day of the
tax year in which this prohibited event occurs. If this happens, you must
include the value of the traditional IRA in your federal gross income. Also, the
early distribution penalty tax of 10% will apply if you have not reached age
59 1/2 before the first day of that tax year.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59 1/2. The extra
penalty tax does not apply to pre-age 59 1/2 distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income
tax definition); or
o to pay medical insurance premiums for unemployed individuals (special
federal income tax definition); or
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o to pay certain first-time home buyer expenses (special federal income tax
definition); or
o to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy), or over the joint lives of you
and your beneficiary (or your joint life expectancy) using an IRS-approved
distribution method.
ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS)
This section of the prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "Traditional IRAs."
The EQUI-VEST Express Roth IRA contracts are designed to qualify as Roth
individual retirement annuities under Sections 408A and 408(b) of the Internal
Revenue Code.
CONTRIBUTIONS TO ROTH IRAS
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from Traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth IRAs
("direct transfers").
If you use the forms we require, we will also accept traditional IRA funds which
are subsequently recharacterized as Roth IRA funds following special federal
income tax rules.
REGULAR CONTRIBUTIONS TO ROTH IRAS
LIMITS ON REGULAR CONTRIBUTIONS. Generally, $2,000 is the maximum amount that
you may contribute to all IRAs (including Roth IRAs) in any taxable year. This
$2,000 limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth IRAs
reduce your ability to contribute to traditional IRAs and vice versa. When your
earnings are below $2,000, your earned income or compensation for the year is
the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular IRA and after-tax contributions you are permitted to make to
Roth IRAs and traditional IRAs. See the discussion above under traditional IRAs.
With a Roth IRA, you can make regular contributions when you reach 70 1/2, as
long as you have sufficient earnings. But, you cannot make contributions for any
year that:
o your federal income tax filing status is "married filing jointly" and your
adjusted gross income is over $160,000; or,
o your federal income tax filing status is "single" and your adjusted gross
income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your adjusted gross
income is between $95,000 and $110,000.
If you are married and filing separately and your adjusted gross income is
between $0 and $10,000 the amount of regular contribution you are permitted to
make is phased out. If your adjusted gross income is more than $10,000 you
cannot make a regular Roth IRA contribution.
WHEN YOU CAN MAKE CONTRIBUTIONS? Same as traditional IRAs.
DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible.
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ROLLOVERS AND DIRECT TRANSFERS
WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE-IRA, in a taxable
"conversion" rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under Section
401(a) of the Internal Revenue Code, or a TSA under Section 403(b) of the
Internal Revenue Code. You may make direct transfer contributions to a Roth IRA
only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following. In a rollover transaction you actually take possession of the
funds rolled over, or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee, or issuer to transfer the first Roth IRA funds directly
to Equitable Life, as the Roth IRA issuer. You can make direct transfer
transactions only between identical plan types (for example, Roth IRA to Roth
IRA). You can also make rollover transactions between identical plan types.
However, you can only use rollover transactions between different plan types
(for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover transactions
only once in any 12-month period for the same funds. Trustee-to-trustee or
custodian-to-custodian direct transfers can be made more frequently than once a
year. Also, if you send us the rollover contribution to apply it to a Roth IRA,
you must do so within 60 days after you receive the proceeds from the original
IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court ordered divorce or separation decree.
CONVERSION CONTRIBUTIONS TO ROTH IRAS
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is generally
fully taxable. For this reason, we are required to withhold 10% federal income
tax from the amount converted unless you elect out of such withholding. (If you
have ever made nondeductible regular IRA contributions to any traditional IRA -
whether or not it is the traditional IRA you are converting - a pro rata portion
of the distribution is tax-free.)
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59 1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your adjusted gross income exceeds $100,000. (For this purpose, your
adjusted gross income is calculated without the gross income stemming from the
traditional IRA conversion.) You also cannot make conversion contributions to a
Roth IRA for any taxable year in which your federal income tax filing status is
"married filing separately."
Finally, you cannot make conversion contributions to a Roth IRA to the extent
that the funds in your traditional IRA are subject to the annual required
minimum distribution rule applicable to traditional IRAs beginning at age
70 1/2.
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WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
DISTRIBUTIONS FROM ROTH IRAS
Distributions include withdrawals from your contract, surrender and termination
of your contract and annuity payments from your contract. Death benefits are
also distributions.
The following distributions from Roth IRAs are free of income tax:
o rollovers from a Roth IRA to another Roth IRA;
o direct transfers from a Roth IRA to another Roth IRA;
o "Qualified Distributions" from Roth IRAs; and
o return of excess contributions or amounts recharacterized to a traditional
IRA.
QUALIFIED DISTRIBUTIONS FROM ROTH IRAS
Qualified distributions from Roth IRAs made because of one of the following four
qualifying events or reasons are not includable in income:
o you reach age 59 1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or not
the one from which the distribution is being made). It is not possible to have a
tax-free qualified distribution before the year 2003 because of the five-year
aging requirement.
NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS
Nonqualified distributions from Roth IRAs are distributions that do not meet the
qualifying event and five-year aging period tests described above. Such
distributions are potentially taxable as ordinary income. Nonqualified
distributions receive return-of-investment-first treatment. Only the difference
between the amount of the distribution and the amount of contributions to all of
your Roth IRAs is taxable. You have to reduce the amount of contributions to all
of your Roth IRAs to reflect any previous tax-free recoveries.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled to
the special favorable five-year averaging method (or, in certain cases,
favorable ten-year averaging and long-term capital gain treatment) available in
certain cases to distributions from qualified plans.
REQUIRED MINIMUM DISTRIBUTIONS AT DEATH
Same as traditional IRA under "What are the required minimum distribution
payments after you die?" Lifetime required minimum distributions do not apply.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
Same as traditional IRA.
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EXCESS CONTRIBUTIONS
Generally the same as traditional IRA, except that regular contributions made
after age 70 1/2 are not "excess contributions."
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your adjusted gross income is in excess of $100,000 in the conversion year).
You can withdraw or recharacterize any contribution to a Roth IRA before the due
date (including extensions) for filing your federal income tax return for the
tax year. If you do this, you must also withdraw or recharacterize any earnings
attributable to the contribution.
EARLY DISTRIBUTION PENALTY TAX
Same as traditional IRA.
For Roth IRAs, special penalty rules may apply to amounts withdrawn attributable
to 1998 conversion rollovers.
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable. The
rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this purpose.
You cannot elect out of withholding unless you provide us with your correct
Taxpayer Identification Number and a United States residence address. You cannot
elect out of withholding if we are sending the payment out of the United States.
You should note the following special situations:
o we might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o we are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o we are required to withhold on the gross amount of a distribution from a
Roth IRA unless you elect out of withholding. This may result in tax being
withheld even though the Roth IRA distribution is not taxable in whole or
in part.
Special withholding rules apply to foreign recipients and United States citizens
residing outside the United States. We do not discuss these rules here. Certain
states have indicated that state income tax withholding will also apply to
payments from the contracts made to residents. In some states, you may elect out
of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state or
any required forms, call our processing office at the toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $14,880 in periodic annuity payments in
2000 your payments will generally be exempt from federal income tax withholding.
You could specify a different choice of withholding exemption or request that
tax be withheld. Your
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withholding election remains effective unless and until you revoke it. You may
revoke or change your withholding election at any time.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
For a non-periodic distribution (total surrender, termination, or partial
withdrawal), we generally withhold at a flat 10% rate. We apply that rate to the
taxable amount in the case of nonqualified contracts, and to the payment amount
in the case of IRAs and Roth IRAs.
IMPACT OF TAXES TO EQUITABLE LIFE
The contracts provide that we may charge Separate Account A for taxes. We do not
now, but may in the future set up reserves for such taxes.
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More information
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ABOUT OUR SEPARATE ACCOUNT A
Each variable investment option is a subaccount of our Separate Account A. We
established Separate Account A in 1968 under special provisions of the New York
Insurance Law. These provisions prevent creditors from any other business we
conduct from reaching the assets we hold in our variable investment options for
owners of our variable annuity contracts. We are the legal owner of all of the
assets in Separate Account A and may withdraw any amounts that exceed our
reserves and other liabilities with respect to variable investment options under
our contracts. The results of Separate Account A's operations are accounted for
without regard to Equitable Life's other operations.
Separate Account A is registered under the Investment Company Act of 1940 and is
classified by that act as a "unit investment trust." The SEC, however, does not
manage or supervise Equitable Life or Separate Account A.
Each subaccount (variable investment option) within Separate Account A invests
solely in Class IB shares issued by the corresponding portfolio of EQ Advisors
Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from, Separate Account A, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment
option to another variable investment option;
(4) to operate Separate Account A or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against Separate Account A or
a variable investment option directly);
(5) to deregister Separate Account A under the Investment Company Act of 1940;
(6) to restrict or eliminate any voting rights as to Separate Account A; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT EQ ADVISORS TRUST
EQ Advisors Trust is registered under the Investment Company Act of 1940. It is
classified as an "open-end management investment company," more commonly called
a mutual fund. EQ Advisors Trust issues different shares relating to each of its
portfolios.
Equitable Life serves as the investment manager of EQ Advisors Trust. As such,
Equitable Life oversees the activities of the investment advisors with respect
to EQ Advisors Trust and is responsible for retaining or discontinuing the
services of those advisors. (Prior to September 1999, EQ Financial Consultants,
Inc. the predecessor to AXA Advisors, LLC and an affiliate of Equitable Life
served as investment manager to EQ Advisors Trust.)
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth)
were part of The Hudson River Trust. On October 18, 1999, the assets of these
portfolios became the corresponding portfolios of EQ Advisors Trust.
EQ Advisors Trust does not impose sales charges or "loads" for buying and
selling its shares. All dividends and other distributions on Trust shares are
reinvested in full. The Board of Trustees of EQ Advisors Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about EQ Advisors Trust, the portfolio investment
objectives, policies, restrictions, risks, expenses, their Rule 12b-1 Plan
relating to its Class IB shares, and other aspects of its operations, appears in
the prospectus for EQ Advisors Trust attached at the end of this prospectus, or
in its SAI which is available upon request.
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ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
The rates to maturity for new allocations as of March 1, 2000 and the related
price per $100 of maturity value were as follows:
<TABLE>
<CAPTION>
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FIXED MATURITY
OPTIONS
WITH JUNE 15
MATURITY DATE RATE TO MATURITY AS PRICE
OF OF PER $100 OF
MATURITY YEAR MARCH 1, 2000 MATURITY VALUE
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<S> <C> <C>
2001 5.20% $ 93.68
2002 5.65% $ 88.20
2003 6.10% $ 82.34
2004 6.15% $ 77.41
2005 6.25% $ 72.57
2006 6.35% $ 67.90
2007 6.40% $ 63.63
2008 6.40% $ 59.82
2009 6.45% $ 55.96
2010 6.50% $ 52.31
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</TABLE>
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) we determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
(b) we determine the period remaining in your fixed maturity option
(based on the withdrawal date) and convert it to fractional years
based on a 365-day year. For example, three years and 12 days
becomes 3.0329.
(c) we determine the current rate to maturity that applies on the
withdrawal date to new allocations to the same fixed maturity
option.
(d) we determine the present value of the fixed maturity amount payable
at the maturity date, using the period determined in (b) and the
rate determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
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Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that same
fixed maturity option on the date of the calculation.
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If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment that
would have applied if you had withdrawn the entire value in that fixed maturity
option. This percentage is equal to the percentage of the value in the fixed
maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See the Appendix for an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) above would
apply, we will use the rate at the next closest maturity date. If we
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are no longer offering new fixed maturity options, the "current rate to
maturity" will be determined in accordance with our procedures then in effect.
We reserve the right to add up to 0.50% to the current rate in (1)(c) above for
purposes of calculating the market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held in
this separate account. We may, subject to state law that applies, transfer all
assets allocated to the separate account to our general account. We guarantee
all benefits relating to your value in the fixed maturity options, regardless of
whether assets supporting fixed maturity options are held in a separate account
or our general account.
We have no specific formula for establishing the rates to maturity for the fixed
maturity options. We expect the rates to be influenced by, but not necessarily
correspond to, among other things, the yields that we can expect to realize on
the separate account's investments from time to time. Our current plans are to
invest in fixed-income obligations, including corporate bonds, mortgage-backed
and asset-backed securities and government and agency issues having durations in
the aggregate consistent with those of the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the contracts,
we are not obligated to invest those assets according to any particular plan
except as we may be required to by state insurance laws. We will not determine
the rates to maturity we establish by the performance of the nonunitized
separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the fixed maturity options, as well as our general
obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations of
all jurisdictions where we are authorized to do business. Because of exemptions
and exclusionary provisions that apply, interests in the general account have
not been registered under the Securities Act of 1933, nor is the general account
an investment company under the Investment Company Act of 1940. However, the
market value adjustment interests under the contracts are registered under the
Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to general accounts, however,
may be subject to certain provisions of the federal securities laws relating to
the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
AUTOMATIC INVESTMENT PROGRAM - FOR NQ, TRADITIONAL IRA, AND ROTH IRA CONTRACTS
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution into
an NQ, Traditional IRA, or Roth IRA contract on a monthly basis.
AIP additional contributions may be allocated to any of the variable investment
options but not the fixed maturity options. Our minimum contribution amount
requirement is $20. You choose the day of the month you wish to have
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your account debited. However, you may not choose a date later than the 28th day
of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
PAYROLL DEDUCTION PROGRAM. You can authorize your employer to remit your IRA
contributions to us if your employer has a payroll deduction program. Those
contributions are still your contributions, not your employer's.
WIRE TRANSFERS. You may also send your contributions by wire transfer from your
bank.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day is any day on which Equitable Life is open and the New York
Stock Exchange is open for trading. We are closed on national business holidays
including Martin Luther King, Jr. Day and the Friday after Thanksgiving.
Additionally, we may choose to close on the day immediately preceding or
following a national business holiday or due to emergency conditions. Our
business day generally ends at 4:00 p.m., Eastern Time for purposes of
determining the date when contributions are applied and any other transaction
requests are processed. We may close earlier due to emergency conditions.
Contributions will be applied and any other transaction requests will be
processed when they are received along with all the required information unless
another date applies as indicated below.
o If your contribution, transfer, or any other transaction request,
containing all the required information, reaches us on a non-business day
or after 4:00 p.m., Eastern time on a business day, we will use the next
business day.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o Quarterly rebalancing will be processed on a calendar year basis and
semiannual or annual rebalancing will be processed on the first business
day of the month. Rebalancing will not be done retroactively.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the unit value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o If a fixed maturity option is scheduled to mature on June 15th and June
15th is a non-business day, that fixed maturity option will mature on the
prior business day.
o Transfers to or from variable investment options will be made at the unit
value next determined after the close of the business day.
o Transfers to a fixed maturity option will receive the rate to maturity in
effect for that fixed maturity option on that business day.
o Transfers out of a fixed maturity option will be at the market adjusted
amount on that business day.
o For general dollar-cost averaging, the first monthly transfer will occur on
the last business day of the month in which we receive your election form
at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of EQ Advisors Trust we have the right to vote on
certain matters involving the portfolios, such as:
o the election of trustees; or
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o the formal approval of independent auditors selected for EQ Advisors Trust;
or
o any other matters described in the prospectus for EQ Advisors Trust or
requiring a shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is taken.
If we do not receive instructions in time from all contract owners, we will vote
the shares of a portfolio for which no instructions have been received in the
same proportion as we vote shares of that portfolio for which we have received
instructions. We will also vote any shares that we are entitled to vote directly
because of amounts we have in a portfolio in the same proportions that contract
owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control EQ Advisors Trust. EQ Advisors Trust shares are sold to
our separate accounts and an affiliated qualified plan trust. In addition,
shares of EQ Advisors Trust are held by separate accounts of insurance companies
unaffiliated with us. Shares held by these separate accounts will probably be
voted according to the instructions of the owners of insurance policies and
contracts issued by those insurance companies. While this will dilute the effect
of the voting instructions of the contract owners, we currently do not foresee
any disadvantages because of this. The Board of Trustees of EQ Advisors Trust
intends to monitor events in order to identify any material irreconcilable
conflicts that may arise and to determine what action, if any, should be taken
in response. If we believe that a response to any of those events insufficiently
protects our contract owners, we will see to it that appropriate action is
taken.
SEPARATE ACCOUNT A VOTING RIGHTS
If actions relating to Separate Account A require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount of
reserves we are holding for that annuity in a variable investment option divided
by the annuity unit value for that option. We will cast votes attributable to
any amounts we have in the variable investment options in the same proportion as
votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
Equitable Life and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings is likely to have a material adverse effect
upon Separate Account A, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT ACCOUNTANTS
The consolidated financial statements of Equitable Life at December 31, 1999 and
1998, and for the three years ended December 31, 1999 incorporated in this
prospectus by reference to the 1999 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent
accountants, given on the authority of said firm as experts in auditing and
accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account A, as well as the consolidated
financial statements of Equitable Life, are in the SAI. The SAI is available
free of charge. You may request one by writing to our processing office or
calling 1-800-628-6673.
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TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity payments
begin. We will continue to treat you as the owner until we receive written
notification of any change at our processing office. You cannot assign your NQ
contract as collateral or security for a loan. Loans are also not available
under your NQ contract. In some cases, an assignment or change of ownership may
have adverse tax consequences. See "Tax information" earlier in this prospectus.
You cannot assign or transfer ownership of a Traditional IRA, QP IRA, or Roth
IRA contract except by surrender to us. Loans are not available and you cannot
assign Traditional IRA, QP IRA and Roth IRA contracts as security for a loan or
other obligation.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option " in "Payment of death benefit" earlier in this prospectus.
You may direct the transfer of the values under your Traditional IRA, QP IRA or
Roth IRA contract to another similar arrangement under federal income tax rules.
In the case of such a transfer, we will impose a withdrawal charge if one
applies.
DISTRIBUTION OF THE CONTRACTS
AXA Advisors, LLC ("AXA Advisors"), the successor to Equitable Financial
Consultants, Inc., and an affiliate of Equitable Life, is the distributor of the
contracts and has responsibility for sales and marketing functions for Separate
Account A. AXA Advisors serves as the principal underwriter of Separate Account
A. AXA Advisors is registered with the SEC as a broker-dealer and is a member of
the National Association of Securities Dealers, Inc. AXA Advisors' principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Pursuant to
a Distribution and Servicing Agreement between AXA Advisors, Equitable Life, and
certain of Equitable Life's separate accounts, including Separate Account A,
Equitable Life paid AXA Advisors distribution fees of $325,380 for 1999,
$325,380 for 1998 and $325,380 for 1997, as distributor of certain contracts and
as the principal underwriter of certain separate accounts including Separate
Account A.
The contracts are sold by financial professionals who are registered
representatives of AXA Advisors and its affiliates, who are also our licensed
insurance agents. AXA Advisors may also receive compensation and reimbursement
for its marketing services under the terms of its distribution agreement with
Equitable Life. The offering of the contracts is intended to be continuous.
<PAGE>
9
Investment performance
- ----------------
60
- --------------------------------------------------------------------------------
We provide the following tables to show five different measurements of the
investment performance of the variable investment options and/or the portfolios
in which they invest. We include these tables because they may be of general
interest to you.
Table 1 shows the average annual total return of the variable investment
options. Average annual total return is the annual rate of growth that would be
necessary to achieve the ending value of a contribution invested in the variable
investment options for the periods shown.
Table 2 shows the growth of a hypothetical $1,000 investment in the variable
investment options over the periods shown. Both Tables 1 and 2 take into account
all current fees and charges under the contract, including the withdrawal
charge, and the annual administrative charge but do not reflect the charges
designed to approximate certain taxes that may be imposed on us, such as premium
taxes in your state or any applicable annuity administrative fee.
Tables 3, 4 and 5 show the rates of return of the variable investment options on
an annualized, cumulative, and year-by-year basis. These tables take into
account all current fees and charges under the contract, but do not reflect the
annual administrative charge and any withdrawal charge, or charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes in
your state, or any applicable annuity administrative fee. If the charges were
reflected they would effectively reduce the rates of return shown.
In all cases the results shown are based on the actual historical investment
experience of the portfolios in which the variable investment options invest. In
some cases, the results shown relate to periods when the variable investment
options were not available. In those cases, we adjusted the results of the
portfolios to reflect the charges under the contracts that would have applied
had the investment options and/or contracts been available.
For the "Alliance" portfolios (other than EQ/Alliance Premier Growth), we have
adjusted the results prior to October 1996, when Class IB shares for these
portfolios were not available, to reflect the 12b-1 fees currently imposed.
Finally, the results shown for the Alliance Money Market, EQ/Balanced, Alliance
Common Stock and EQ/Aggressive Stock options for periods before those options
were operated as part of a unit investment trust reflect the results of the
separate accounts that preceded them. The "Since portfolio inception" figures
for these options are based on the date of inception of the preceding separate
accounts. We have adjusted these results to reflect the fee and expense
structure in effect for Separate Account A as a unit investment trust. See "The
reorganization" in the SAI for additional information.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth)
were part of The Hudson River Trust. On October 18, 1999, those portfolios
became corresponding portfolios of EQ Advisors Trust. In each case, the
performance shown is for the indicated EQ Advisors Trust portfolio and any
predecessors that it may have had.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
From time to time, we may advertise different measurements of the investment
performance options and/or the portfolios, including the measurements reflected
in the tables below.
THE PERFORMANCE INFORMATION SHOWN BELOW AND THE PERFORMANCE INFORMATION THAT WE
ADVERTISE REFLECT PAST PERFORMANCE AND DO NOT INDICATE HOW THE VARIABLE
INVESTMENT OPTIONS MAY PERFORM IN THE FUTURE. SUCH INFORMATION ALSO DOES NOT
REPRESENT THE RESULTS EARNED BY ANY PARTICULAR INVESTOR. YOUR RESULTS WILL
DIFFER.
BENCHMARKS
Tables 3 and 4 compare the performance of variable investment options to market
indices that serve as benchmarks. Market indices are not subject to any charges
<PAGE>
- ----------
61
- --------------------------------------------------------------------------------
for investment advisory fees, brokerage commission or other operating expenses
typically associated with a managed portfolio. Also, they do not reflect other
charges such as the mortality and expense risks and other expense charges,
annual administrative charge, or any withdrawal charge, under the contracts.
Comparisons with these benchmarks, therefore, may be of limited use. We include
them because they are widely known and may help you to understand the universe
of securities from which each portfolio is likely to select its holdings.
Benchmark data reflect the reinvestment of dividend income. The benchmarks
include:
- --------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK: 50% Russell 2000 Index and 50% Standard
& Poor's Mid-Cap Total Return Index.
EQ/BALANCED: 50% Standard & Poor's 500 and 50% Lehman
Government/Corporate Bond Index.
ALLIANCE COMMON STOCK: Standard & Poor's 500 Index.
ALLIANCE CONSERVATIVE INVESTORS: 70% Lehman Treasury Bond
Composite Index and 30% Standard & Poor's 500 Index.
ALLIANCE EQUITY INDEX: Standard & Poor's 500 Index.
ALLIANCE GLOBAL: Morgan Stanley Capital International World Index.
ALLIANCE GROWTH AND INCOME: 75% Standard & Poor's 500 Index
and 25% Value Line Convertibles Index.
ALLIANCE GROWTH INVESTORS: 30% Lehman Government/Corporate
Bond Index and 70% Standard & Poor's 500 Index.
ALLIANCE HIGH YIELD: Benchmark #1 - Merrill Lynch High Yield
Master Index and Benchmark #2 - Credit Suisse First Boston
Global High Yield Index.
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES: Lehman
Intermediate Government Bond Index.
ALLIANCE INTERNATIONAL: Morgan Stanley Capital International
Europe, Australia, Far East Index.
ALLIANCE MONEY MARKET: Salomon Brothers Three-Month T-Bill
Index.
EQ/ALLIANCE PREMIER GROWTH: Standard & Poor's 500 Index.
ALLIANCE QUALITY BOND: Lehman Aggregate Bond Index.
ALLIANCE SMALL CAP GROWTH: Russell 2000 Growth Index.
EQ/ALLIANCE TECHNOLOGY: NASDAQ Composite.
CAPITAL GUARDIAN RESEARCH: Standard & Poor's 500 Index.
CAPITAL GUARDIAN U.S. EQUITY: Standard & Poor's 500 Index.
EQ/EVERGREEN: Benchmark #1 - Russell 2000 Index and
Benchmark #2 - Standard & Poor's 500 Index.
EQ/EVERGREEN FOUNDATION: 60% Standard & Poor's 500
Index/40% Lehman Brothers Aggregate Bond Index.
MFS EMERGING GROWTH COMPANIES: Russell 2000 Index.
MFS GROWTH WITH INCOME: Standard & Poor's 500 Index.
MFS RESEARCH: Standard & Poor's 500 Index.
MERCURY BASIC VALUE EQUITY: Standard & Poor's 500 Index.
MERCURY WORLD STRATEGY: 36% Standard & Poor's 500 Index/24%
Morgan Stanley Capital International Europe, Australia, Far East
Index/21% Salomon Brothers U.S. Treasury Bond 1 Year+ 14%
Salomon Brothers World Government Bond (excluding U.S.)/and
5% Three-Month U.S. Treasury Bill.
MORGAN STANLEY EMERGING MARKETS EQUITY: Morgan Stanley
Capital International Emerging Markets Free Price Return Index.
EQ/PUTNAM BALANCED: 60% Standard & Poor's 500 Index and 40%
Lehman Government/Corporate Bond Index.
EQ/PUTNAM GROWTH & INCOME VALUE: Standard & Poor's 500
Index.
T. ROWE PRICE EQUITY INCOME: Standard & Poor's 500 Index.
T. ROWE PRICE INTERNATIONAL STOCK: Morgan Stanley Capital
International Europe, Australia, Far East Index.
WARBURG PINCUS SMALL COMPANY VALUE: Benchmark #1 -
Russell 2000 Index and Benchmark #2 - Russell 2000 Value
Index.
- --------------------------------------------------------------------------------
LIPPER SURVEY. The Lipper Variable Insurance Products Performance Analysis
Survey (Lipper Survey) records the performance of a large group of variable
annuity products, including managed separate accounts of insurance companies.
According to Lipper Analytical Services, Inc. (Lipper), the data are presented
net of investment management fees, direct operating expenses and asset-based
charges applicable under annuity contracts. Lipper data provide a more accurate
picture than market benchmarks of the EQUI-VEST Express performance relative to
other variable annuity products.
<PAGE>
- -----
62
- --------------------------------------------------------------------------------
TABLE 1
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
LENGTH OF INVESTMENT PERIOD
--------------------------------------------------------------------------------------
SINCE SINCE
1 3 5 10 OPTION PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION* INCEPTION**
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/Aggressive Stock 8.07% 4.55% 12.38% 13.64% 14.97% 14.97%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock 14.22% 23.01% 24.36% 15.24% 15.54% 10.97%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors (0.35)% 7.32% 8.43% 6.42% 5.63% 6.49%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Equity Index 9.57% 22.04% 24.20% - 21.43% 20.09%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Global 27.12% 18.49% 16.74% 12.41% 14.09% 10.98%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income 7.90% 17.08% 18.28% - 14.35% 13.41%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors 15.57% 15.47% 16.11% 13.87% 12.29% 14.00%
- -------------------------------------------------------------------------------------------------------------------------
Alliance High Yield (13.41)% (2.51)% 5.93% 6.98% 3.80% 6.01%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government
Securities (10.04)% (0.25)% 2.12% - 1.32% 2.56%
- -------------------------------------------------------------------------------------------------------------------------
Alliance International 26.41% 8.80% - - 8.45% 8.77%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Money Market (5.34)% 0.01% 1.00% 1.30% 3.35% 3.35%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond (12.12)% (0.10)% 3.31% - 1.21% 0.87%
- -------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth 16.88% - - - 8.13% 12.27%
- -------------------------------------------------------------------------------------------------------------------------
EQ/Balanced 7.06% 11.94% 12.49% 8.31% 9.69% 9.69%
- -------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies 62.02% - - - 40.44% 43.41%
- -------------------------------------------------------------------------------------------------------------------------
MFS Research 12.51% - - - 16.76% 19.00%
- -------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity 8.45% - - - 10.25% 12.93%
- -------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy 10.79% - - - 5.17% 7.04%
- -------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets
Equity 83.89% - - - 0.18% 0.18%
- -------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced (9.89)% - - - 3.23% 4.58%
- -------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (11.25)% - - - 3.09% 5.00%
- -------------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income (6.48)% - - - 5.99% 7.74%
- -------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock 21.26% - - - 9.59% 10.79%
- -------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company
Value (8.18)% - - - (4.58)% (1.95)%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The variable investment option inception dates are: EQ/Aggressive Stock
(5/1/84), EQ/Balanced (5/1/84), Alliance Common Stock (8/27/81); Alliance
Conservative Investors (1/4/94); Alliance Equity Index (6/1/94); Alliance
Global (1/4/94); Alliance Growth and Income (1/4/94); Alliance Growth
Investors (1/4/94); Alliance High Yield (1/4/94); Alliance Intermediate
Government Securities (6/1/94); Alliance International (9/1/95); Alliance
Money Market (5/11/82); Alliance Quality Bond (1/4/94); Alliance Small Cap
Growth (6/2/97); MFS Emerging Growth Companies (6/2/97); MFS Growth with
Income (12/31/98); MFS Research (6/2/97); Mercury Basic Value Equity
(6/2/97); Mercury World Strategy (6/2/97); Morgan Stanley Emerging Markets
Equity (8/20/97); EQ/Putnam Balanced (6/2/97); EQ/Putnam Growth & Income
Value (6/2/97); T. Rowe Price Equity Income (6/2/97); T. Rowe Price
International Stock (6/2/97); and Warburg Pincus Small Company Value
(6/2/97). The inception dates for the variable investment options that
became available after 12/31/98 and are therefore not shown in this table
are: EQ/Evergreen; EQ/Evergreen Foundation; EQ/Alliance Premier Growth;
Capital Guardian Research; Capital Guardian U.S. Equity (8/30/99); and
EQ/Alliance Technology (5/1/00).
<PAGE>
- -----
63
- --------------------------------------------------------------------------------
** The inception dates for portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding portfolios
of EQ Advisors Trust on 10/18/99. The portfolio inception dates are:
EQ/Aggressive Stock (5/1/84); EQ/Balanced (5/1/84); Alliance Common Stock
(8/1/68); Alliance Conservative Investors (10/2/89); Alliance Equity Index
(3/1/94); Alliance Global (8/27/87); Alliance Growth and Income (10/1/93);
Alliance Growth Investors (10/2/89); Alliance High Yield (1/2/87);
Alliance Intermediate Government Securities (4/1/91); Alliance
International (4/3/95); Alliance Money Market (5/11/82); Alliance Quality
Bond (10/1/93); Alliance Small Cap Growth, MFS Emerging Growth Companies,
MFS Research, Mercury Basic Value Equity, Mercury World Strategy (5/1/97);
Morgan Stanley Emerging Markets Equity (8/20/97); EQ/Putnam Balanced,
EQ/Putnam Growth & Income Value, T. Rowe Price Equity Income, T. Rowe
Price International Stock and Warburg Pincus Small Company Value (5/1/97).
EQ/Evergreen; EQ/Evergreen Foundation; and MFS Growth with Income
(inception dates of 12/31/98 are not included because the variable
investment options that correspond to the portfolios became available
after 12/31/98). The inception dates for the Portfolios that became
available after 12/31/98 and are therefore not shown in the tables are:
EQ/Alliance Premier Growth; Capital Guardian Research; Capital Guardian
U.S. Equity (4/30/99); and EQ/Alliance Technology (5/1/00).
<PAGE>
- -----
64
- --------------------------------------------------------------------------------
TABLE 2
GROWTH OF $1,000 UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
LENGTH OF INVESTMENT PERIOD
----------------------------------------------------------------------------
SINCE
1 3 5 10 PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/Aggressive Stock $ 1,080.71 $ 1,142.90 $ 1,792.41 $ 3,590.63 $ 8,898.27
- -------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock $ 1,142.23 $ 1,861.36 $ 2,973.86 $ 4,129.01 $ 26,336.88
- -------------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors $ 996.50 $ 1,236.15 $ 1,498.85 $ 1,863.42 $ 1,904.65
- -------------------------------------------------------------------------------------------------------------------------
Alliance Equity Index $ 1,095.66 $ 1,817.42 $ 2,954.89 - $ 2,912.25
- -------------------------------------------------------------------------------------------------------------------------
Alliance Global $ 1,271.20 $ 1,663.74 $ 2,168.54 $ 3,221.69 $ 3,617.89
- -------------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income $ 1,079.00 $ 1,604.70 $ 2,314.92 - $ 2,195.80
- -------------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors $ 1,155.72 $ 1,539.58 $ 2,109.99 $ 3,664.95 $ 3,829.62
- -------------------------------------------------------------------------------------------------------------------------
Alliance High Yield $ 865.91 $ 926.55 $ 1,333.61 $ 1,963.69 $ 2,134.39
- -------------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government Securities $ 899.61 $ 992.59 $ 1,110.52 - $ 1,247.70
- -------------------------------------------------------------------------------------------------------------------------
Alliance International $ 1,264.15 $ 1,287.90 - - $ 1,490.82
- -------------------------------------------------------------------------------------------------------------------------
Alliance Money Market $ 946.56 $ 1,000.16 $ 1,051.21 $ 1,137.51 $ 1,787.16
- -------------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond $ 878.79 $ 997.03 $ 1,176.63 - $ 1,055.73
- -------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth $ 1,168.83 - - - $ 1,362.26
- -------------------------------------------------------------------------------------------------------------------------
EQ/Balanced $ 1,070.58 $ 1,402.64 $ 1,800.98 $ 2,221.75 $ 4,262.37
- -------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies $ 1,620.23 - - - $ 2,619.60
- -------------------------------------------------------------------------------------------------------------------------
MFS Research $ 1,125.06 - - - $ 1,591.43
- -------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity $ 1,084.54 - - - $ 1,383.92
- -------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy $ 1,107.89 - - - $ 1,199.43
- -------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity $ 1,838.86 - - - $ 1,004.35
- -------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced $ 901.07 - - - $ 1,127.05
- -------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value $ 887.51 - - - $ 1,139.11
- -------------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income $ 935.19 - - - $ 1,220.28
- -------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock $ 1,212.62 - - - $ 1,314.78
- -------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value $ 918.17 - - - $ 948.72
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Portfolio inception dates are shown in Table 1.
<PAGE>
- -----
65
- --------------------------------------------------------------------------------
TABLE 3
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
SINCE PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK 17.42% 8.39% 14.88% 15.16% - 16.15%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% 24.68% 19.97% 14.78% - 15.86%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 18.09% 17.48% 19.92% 15.41% - 14.58%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 23.70% 26.39% 26.54% 17.17% 16.97% 12.54%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% 26.87% 25.55% 16.90% 15.83% 15.16%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.04% 27.56% 28.56% 18.21% 17.88% 16.19%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS 8.83% 11.08% 11.14% 8.63% - 8.71%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper Income 4.42% 11.65% 13.70% 10.10% - 10.15%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 4.19% 12.07% 13.60% 10.75% - 10.68%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX 18.94% 25.41% 26.34% - - 22.18%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index Funds 19.36% 25.86% 26.81% - - 23.89%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.04% 27.56% 28.56% - - 24.14%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 36.86% 22.00% 19.28% 14.45% - 13.08%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper Global 44.62% 23.92% 20.57% 11.65% - 11.06%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 24.93% 21.61% 19.76% 11.42% - 10.74%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME 17.24% 20.60% 20.62% - - 15.72%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% 17.23% 20.50% - - 16.45%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 20.71% 23.10% 25.01% - - 18.77%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS 25.07% 19.03% 18.58% 15.60% - 15.69%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 10.45% 14.19% 15.15% 11.65% - 11.68%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 13.77% 20.90% 22.15% 15.13% - 15.15%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (4.50)% 1.58% 8.58% 8.94% - 8.07%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper High Yield 3.65% 4.82% 8.59% 9.61% - 7.79%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark #1 1.57% 5.91% 9.61% 10.79% - 9.99%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark #2 3.28% 5.37% 9.07% 11.06% - 10.04%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES (1.06)% 3.75% 5.10% - - 5.02%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper U.S. Government (2.60)% 4.04% 5.81% - - 5.89%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 0.49% 5.50% 6.93% - - 6.76%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERNATIONAL 36.14% 12.51% - - - 11.76%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% 18.74% - - - 16.13%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% 15.74% - - - 13.11%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET 3.73% 3.99% 4.11% 3.93% - 5.42%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper Money Market 3.78% 4.05% 4.16% 3.96% - 5.70%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 4.74% 5.01% 5.20% 5.06% - 6.65%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE QUALITY BOND (3.18)% 3.89% 6.19% - - 3.71%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper Corporate Bond BBB-Rated (2.56)% 4.06% 6.53% - - 4.36%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark (0.82)% 5.73% 7.73% - - 5.64%
- --------------------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH 26.41% - - - - 16.17%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 19.49%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% - - - - 25.88%
- --------------------------------------------------------------------------------------------------------------------------------
EQ/BALANCED 16.39% 15.57% 15.06% 10.48% - 11.32%
- --------------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 10.45% 14.19% 15.15% 11.65% - 11.09%
- --------------------------------------------------------------------------------------------------------------------------------
Benchmark 9.07% 16.47% 17.93% 13.04% - 13.19%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
66
- --------------------------------------------------------------------------------
TABLE 3 (CONTINUED)
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SINCE PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MFS EMERGING GROWTH COMPANIES 72.02% - - - - 46.86%
- ------------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% - - - - 32.50%
- ------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 16.99%
- ------------------------------------------------------------------------------------------------------------------------------
MFS RESEARCH 21.95% - - - - 22.77%
- ------------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 29.33%
- ------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 17.81% - - - - 16.82%
- ------------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 18.00%
- ------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 20.19% - - - - 11.07%
- ------------------------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio 12.93% - - - - 11.91%
- ------------------------------------------------------------------------------------------------------------------------------
Benchmark 13.07% - - - - 16.18%
- ------------------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY 93.89% - - - - 4.70%
- ------------------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% - - - - 2.90%
- ------------------------------------------------------------------------------------------------------------------------------
Benchmark 66.41% - - - - (0.88)%
- ------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED (0.91)% - - - - 8.67%
- ------------------------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% - - - - 13.91%
- ------------------------------------------------------------------------------------------------------------------------------
Benchmark 11.39% - - - - 18.81%
- ------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE (2.29)% - - - - 9.07%
- ------------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 18.00%
- ------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME 2.57% - - - - 11.74%
- ------------------------------------------------------------------------------------------------------------------------------
Lipper Equity Income 6.90% - - - - 14.28%
- ------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK 30.88% - - - - 14.72%
- ------------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 20.38%
- ------------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 18.32%
- ------------------------------------------------------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE 0.83% - - - - 2.35%
- ------------------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 24.22%
- ------------------------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 16.99%
- ------------------------------------------------------------------------------------------------------------------------------
Benchmark #2 (1.49)% 7.06%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Portfolio inception dates are shown in Table 1. Lipper survey and benchmark
"since portfolio inception" information are as of the month-end closest to the
actual date of portfolio inception.
<PAGE>
- -----
67
- --------------------------------------------------------------------------------
TABLE 4
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
SINCE PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK 17.42% 27.33% 100.07% 310.29% - 943.69%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Growth 51.65% 102.87% 158.98% 311.69% - 683.45%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 18.09% 62.12% 147.96% 319.19% - 595.55%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 23.70% 101.89% 224.39% 387.92% 2,199.43% 3,987.49%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% 106.30% 216.51% 386.68% 1,816.52% 2,838.39%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.04% 107.56% 251.12% 432.78% 2,584.39% 3,555.48%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS 8.83% 37.04% 69.54% 128.91% - 135.33%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Income 4.42% 39.31% 91.71% 163.35% - 169.02%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 4.19% 40.74% 89.21% 177.71% 186.90%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX 18.94% 97.26% 221.93% - - 221.94%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index Funds 19.36% 99.37% 227.98% - - 242.77%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.04% 107.56% 251.12% - - 253.66%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 36.86% 81.56% 141.46% 285.72% - 355.99%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Global 44.62% 93.38% 162.57% 205.54% - 273.03%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 24.93% 79.83% 146.35% 194.99% - 252.80%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME 17.24% 75.42% 155.32% - - 149.00%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% 62.52% 157.04% - - 158.01%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 20.71% 86.55% 205.26% - - 204.09%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS 25.07% 68.64% 134.42% 326.22% - 345.22%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 10.45% 49.38% 103.90% 204.29% - 211.11%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 13.77% 76.71% 171.92% 309.28% - 352.50%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (4.50)% 4.80% 50.89% 135.37% - 174.11%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper High Yield 3.65% 15.25% 51.19% 151.82% - 166.74%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark #1 1.57% 18.80% 58.22% 178.72% - 245.03%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark #2 3.28% 17.00% 54.39% 185.43% - 246.92%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES (1.06)% 11.68% 28.26% - - 53.49%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper U.S. Government (2.60)% 12.55% 32.56% - - 64.40%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 0.49% 17.43% 39.81% - - 77.41%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERNATIONAL 36.14% 42.43% - - - 69.49%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% 69.17% - - - 103.07%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% 55.06% - - - 79.52%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET 3.73% 12.47% 22.32% 47.09% - 153.72%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Money Market 3.78% 12.64% 22.65% 47.52% - 178.18%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 4.74% 15.79% 28.88% 63.79% - 229.35%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE QUALITY BOND (3.18)% 12.14% 35.03% - - 25.59%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Corporate Bond BBB-Rated (2.56)% 12.69% 37.39% - - 30.19%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark (0.82)% 18.20% 45.12% - - 40.97%
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH 26.41% - - - - 49.16%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 62.98%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% - - - - 84.91%
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/BALANCED 16.39% 54.38% 101.65% 170.86% - 436.79%
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 10.45% 49.36% 103.70% 204.29% - 335.16%
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark 9.07% 58.00% 128.08% 240.54% - 558.00%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
68
- --------------------------------------------------------------------------------
TABLE 4 (CONTINUED)
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MFS EMERGING GROWTH COMPANIES 72.02% - - - - 178.85%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% - - - - 120.85%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 52.05%
- -----------------------------------------------------------------------------------------------------------------------
MFS RESEARCH 21.95% - - - - 72.87%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 101.13%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 17.81% - - - - 51.40%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 56.85%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 20.19% - - - - 32.32%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio 12.93% - - - - 35.69%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 13.07% - - - - 49.16%
- -----------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY 93.89% - - - - 11.46%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% - - - - 7.48%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 66.41% - - - - 5.32%
- -----------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED (0.91)% - - - - 24.84%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% - - - - 42.44%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 11.39% - - - - 61.21%
- -----------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE (2.29)% - - - - 26.09%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 56.85%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME 2.57% - - - - 34.48%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Equity Income 6.90% - - - - 43.31%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK 30.88% - - - - 44.25%
- -----------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 65.44%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 56.70%
- -----------------------------------------------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE 0.83% - - - - 6.39%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 83.94%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 52.05%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark #2 (1.49)% - - - - 19.99%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
* Portfolio inception dates are shown in Table 1. Lipper survey and
benchmark "since portfolio inception" information are as month-end
closest to the actual date of portfolio inception.
<PAGE>
- -----
69
- --------------------------------------------------------------------------------
TABLE 5
YEAR-BY-YEAR RATES OF RETURN
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
1990 1991 1992 1993
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 5.79% 84.94% (4.37)% 15.37%
- ------------------------------------------------------------------------------------------------------------------
Alliance Common Stock (9.22)% 36.24% 1.98% 23.33%
- ------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors 5.14% 18.46% 4.53% 9.46%
- ------------------------------------------------------------------------------------------------------------------
Alliance Equity Index - - - -
- ------------------------------------------------------------------------------------------------------------------
Alliance Global (7.25)% 29.04% (1.71)% 30.60%
- ------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income - - - (0.72)%+
- ------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors 9.28% 47.22% 3.68% 13.91%
- ------------------------------------------------------------------------------------------------------------------
Alliance High Yield (2.29)% 23.03% 11.00% 21.73%
- ------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government Securities - 11.10%+ 4.34% 9.28%
- ------------------------------------------------------------------------------------------------------------------
Alliance International - - - -
- ------------------------------------------------------------------------------------------------------------------
Alliance Money Market 7.07% 4.95% 2.33% 1.74%
- ------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond - - - (0.80)%+
- ------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth - - - -
- ------------------------------------------------------------------------------------------------------------------
EQ/Balanced (1.20)% 40.46% (4.02)% 10.99%
- ------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies - - - -
- ------------------------------------------------------------------------------------------------------------------
MFS Research - - - -
- ------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity - - - -
- ------------------------------------------------------------------------------------------------------------------
Mercury World Strategy - - - -
- ------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity - - - -
- ------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced - - - -
- ------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value - - - -
- ------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income - - - -
- ------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock - - - -
- ------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value - - - -
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/Aggressive Stock (5.00)% 30.13% 20.74% 9.47% (0.94)% 17.42%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock (3.31)% 30.87% 22.78% 27.67% 27.83% 23.70%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Conservative Investors (5.26)% 19.01% 3.95% 11.90% 12.54% 8.83%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Equity Index 0.00%+ 34.94% 20.95% 31.02% 26.57% 18.94%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Global 3.98% 17.44% 13.24% 10.21% 20.37% 36.86%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income (1.77)% 22.65% 18.67% 25.27% 19.43% 17.24%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors (4.32)% 24.93% 11.27% 15.40% 16.84% 25.07%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance High Yield (3.96)% 18.53% 21.46% 17.09% (6.27)% (4.50)%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government Securities (5.53)% 12.01% 2.53% 6.02% 6.46% (1.06)%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance International - 9.68% 8.50% (4.25)% 9.27% 36.14%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Money Market 2.79% 4.50% 4.07% 4.17% 4.09% 3.73%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond (6.25)% 15.67% 4.10% 7.86% 7.40% (3.18)%
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth - - - 24.81%+ (5.45)% 26.41%
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Balanced (9.15)% 18.37% 10.35% 13.64% 16.72% 16.39%
- ------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies - - - 21.66%+ 33.24% 72.02%
- ------------------------------------------------------------------------------------------------------------------------------
MFS Research - - - 15.32%+ 22.93% 21.95%
- ------------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity - - - 16.28%+ 10.52% 17.81%
- ------------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy - - - 4.05%+ 5.81% 20.19%
- ------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity - - - (20.47)%+ (27.71)% 93.89%
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced - - - 13.76%+ 10.75% (0.91)%
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value - - - 15.48%+ 11.75% (2.29)%
- ------------------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income - - - 21.36%+ 8.04% 2.57%
- ------------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock - - - (2.13)%+ 12.62% 30.88%
- ------------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value - - - 18.37%+ (10.86)% 0.83%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
+ Returns for these portfolios represent less than 12 months of
performance. The returns are as of each portfolio inception date as shown
in Table 1.
<PAGE>
- ----------
70
- --------------------------------------------------------------------------------
COMMUNICATING PERFORMANCE DATA
In reports or other communications to contract owners or in advertising
material, we may describe general economic and market conditions affecting our
variable investment options, and the portfolios and may compare the performance
or ranking of those options and the portfolios with:
o those of other insurance company separate accounts or mutual funds included
in the rankings prepared by Lipper Analytical Services, Inc., Morningstar,
Inc., VARDS, or similar investment services that monitor the performance of
insurance company separate accounts or mutual funds;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective contract owners advertisements or
other communications that include evaluations of a variable investment option or
portfolio by nationally recognized financial publications. Examples of such
publications are:
- --------------------------------------------------------------------------------
Barron's Money Management Letter
Morningstar's Variable Annuity Investment Dealers Digest
Sourcebook National Underwriter
Business Week Pension & Investments
Forbes USA Today
Fortune Investor's Business Daily
Institutional Investor The New York Times
Money The Wall Street Journal
Kiplinger's Personal Finance The Los Angeles Times
Financial Planning The Chicago Tribune
Investment Adviser
Investment Management Weekly
- --------------------------------------------------------------------------------
Lipper compiles performance data for peer universes of funds with similar
investment objectives in its Lipper Survey. Morningstar, Inc. compiles similar
data in the Morningstar Variable Annuity/Life Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800 mutual
funds underlying variable annuity and life insurance products. It divides these
actively managed Portfolios into 25 categories by portfolio objectives. The
Lipper Survey contains two different universes, which reflect different types of
fees in performance data:
o The "separate account" universe reports performance data net of investment
management fees, direct operating expenses and asset-based charges
applicable under variable life and annuity contracts; and
o The "mutual fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects only
charges that relate to the underlying mutual fund.
The Morningstar Variable Annuity/Life Report consists of nearly 700 variable
life and annuity funds, all of which report their data net of investment
management fees, direct operating expenses and separate account level charges.
VARDS is a monthly reporting service that monitors approximately 2,500 variable
life and variable annuity funds on performance and account information.
YIELD INFORMATION
Current yield for the Alliance Money Market option will be based on net changes
in a hypothetical investment over a given seven-day period, exclusive of capital
changes, and then "annualized" (assuming that the same seven-day result would
occur each week for 52 weeks). Current yield for the other options will be based
on net changes in a hypothetical investment over a given 30-day period,
exclusive of capital changes, and then "annualized" (assuming that the same
30-day result would occur each month for 12 months).
"Effective yield" is calculated in a similar manner, but when annualized, any
income earned by the investment is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because any earnings are
compounded weekly for the Alliance Money Market option. The current yields and
effective yields assume the deduction of all current contract charges and
expenses other than the annual administrative charge, withdrawal charge, and any
charge designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state. For more information, see "Alliance Money Market
option yield information" and "Other yield information" in the SAI.
<PAGE>
10
Incorporation of certain documents by reference
- ----------------
71
- --------------------------------------------------------------------------------
Equitable Life's Annual Report on Form 10-K for the year ended December 31,
1999, is considered to be a part of this prospectus because it is incorporated
by reference.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this prospectus because they are incorporated by reference.
Any statement contained in a document that is, or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a Web site that contains reports,
proxy and information statements and other information regarding registrants
that file electronically with the SEC. The address of the site is
http://www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person to
whom this prospectus is delivered a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to The
Equitable Life Assurance Society of the United States, 1290 Avenue of the
Americas, New York, New York 10104. Attention: Corporate Secretary (telephone:
(212) 554-1234).
<PAGE>
Appendix I: Condensed financial information
- --------
A-1
- --------------------------------------------------------------------------------
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT EQ/ALLIANCE TECHNOLOGY WHICH IS BEING OFFERED FOR THE
FIRST TIME ON MAY 1, 2000.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
FOR THE YEAR ENDING
DEC. 31, 1999
--------------------
<S> <C>
- ----------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- ----------------------------------------------------------------------
Unit value $ 112.33
- ----------------------------------------------------------------------
Number of units outstanding (000s) 3
- ----------------------------------------------------------------------
EQ\BALANCED
- ----------------------------------------------------------------------
Unit value $ 108.71
- ----------------------------------------------------------------------
Number of units outstanding (000s) 2
- ----------------------------------------------------------------------
ALLIANCE COMMON STOCK
- ----------------------------------------------------------------------
Unit value $ 111.02
- ----------------------------------------------------------------------
Number of units outstanding (000's) 25
- ----------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS
- ----------------------------------------------------------------------
Unit value $ 104.41
- ----------------------------------------------------------------------
Number of units outstanding (000's) 4
- ----------------------------------------------------------------------
ALLIANCE EQUITY INDEX
- ----------------------------------------------------------------------
Unit value $ 106.17
- ----------------------------------------------------------------------
Number of units outstanding (000's) 9
- ----------------------------------------------------------------------
ALLIANCE GLOBAL
- ----------------------------------------------------------------------
Unit value $ 119.52
- ----------------------------------------------------------------------
Number of units outstanding (000's) 9
- ----------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME
- ----------------------------------------------------------------------
Unit value $ 103.87
- ----------------------------------------------------------------------
Number of units outstanding (000's) 14
- ----------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS
- ----------------------------------------------------------------------
Unit value $ 112.30
- ----------------------------------------------------------------------
Number of units outstanding (000's) 10
- ----------------------------------------------------------------------
ALLIANCE HIGH YIELD
- ----------------------------------------------------------------------
Unit value $ 99.34
- ----------------------------------------------------------------------
Number of units outstanding (000's) 4
- ----------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
- ----------------------------------------------------------------------
Unit value $ 100.40
- ----------------------------------------------------------------------
Number of units outstanding (000's) 3
- ----------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-2
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
FOR THE YEAR ENDING
DEC. 31, 1999
-------------------
<S> <C>
ALLIANCE INTERNATIONAL
- ----------------------------------------------------------------
Unit value $ 126.71
- ----------------------------------------------------------------
Number of units outstanding (000's) 1
- ----------------------------------------------------------------
ALLIANCE MONEY MARKET
- ----------------------------------------------------------------
Unit value $ 101.49
- ----------------------------------------------------------------
Number of units outstanding (000's) 43
- ----------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- ----------------------------------------------------------------
Unit value $ 116.53
- ----------------------------------------------------------------
Number of units outstanding (000's) 21
- ----------------------------------------------------------------
ALLIANCE QUALITY BOND
- ----------------------------------------------------------------
Unit value $ 99.28
- ----------------------------------------------------------------
Number of units outstanding (000's) 4
- ----------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH
- ----------------------------------------------------------------
Unit value $ 130.79
- ----------------------------------------------------------------
Number of units outstanding (000's) 1
- ----------------------------------------------------------------
CAPITAL GUARDIAN U.S. EQUITY
- ----------------------------------------------------------------
Unit value $ 101.79
- ----------------------------------------------------------------
Number of units outstanding (000s) -
- ----------------------------------------------------------------
CAPITAL GUARDIAN RESEARCH
- ----------------------------------------------------------------
Unit value $ 106.94
- ----------------------------------------------------------------
Number of units outstanding (000s) -
- ----------------------------------------------------------------
EQ/EVERGREEN
- ----------------------------------------------------------------
Unit value $ 106.73
- ----------------------------------------------------------------
Number of units outstanding (000s) -
- ----------------------------------------------------------------
EQ/EVERGREEN FOUNDATION
- ----------------------------------------------------------------
Unit value $ 105.31
- ----------------------------------------------------------------
Number of units outstanding (000s) -
- ----------------------------------------------------------------
MERCURY BASIC VALUE EQUITY
- ----------------------------------------------------------------
Unit value $ 97.22
- ----------------------------------------------------------------
Number of units outstanding (000's) 5
- ----------------------------------------------------------------
MERCURY WORLD STRATEGY
- ----------------------------------------------------------------
Unit value $ 113.34
- ----------------------------------------------------------------
Number of units outstanding (000's) -
- ----------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-3
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
FOR THE YEAR ENDING
DEC. 31, 1999
-------------------
<S> <C>
MFS EMERGING GROWTH COMPANIES
- ------------------------------------------------------------------
Unit value $ 157.69
- ------------------------------------------------------------------
Number of units outstanding (000's) 17
- ------------------------------------------------------------------
MFS GROWTH WITH INCOME
- ------------------------------------------------------------------
Unit value $ 104.63
- ------------------------------------------------------------------
Number of units outstanding (000's) 1
- ------------------------------------------------------------------
MFS RESEARCH
- ------------------------------------------------------------------
Unit value $ 116.97
- ------------------------------------------------------------------
Number of units outstanding (000's) 3
- ------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY
- ------------------------------------------------------------------
Unit value $ 157.03
- ------------------------------------------------------------------
Number of units outstanding (000's) -
- ------------------------------------------------------------------
EQ/PUTNAM BALANCED
- ------------------------------------------------------------------
Unit value $ 95.64
- ------------------------------------------------------------------
Number of units outstanding (000's) -
- ------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- ------------------------------------------------------------------
Unit value $ 92.44
- ------------------------------------------------------------------
Number of units outstanding (000's) -
- ------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME
- ------------------------------------------------------------------
Unit value $ 93.54
- ------------------------------------------------------------------
Number of units outstanding (000's) 2
- ------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK
- ------------------------------------------------------------------
Unit value $ 123.90
- ------------------------------------------------------------------
Number of units outstanding (000's) 3
- ------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE
- ------------------------------------------------------------------
Unit value $ 106.09
- ------------------------------------------------------------------
Number of units outstanding (000's) 1
- ------------------------------------------------------------------
</TABLE>
<PAGE>
Appendix II: Market value adjustment example
- --------
B-1
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 had been
invested on June 14, 2001 to a fixed maturity option with a maturity date of
June 15, 2010 (i.e., nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value at the maturity date of $183,846. We
further assume that a withdrawal of $50,000 is made four years later, on June
15, 2005.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
HYPOTHETICAL ASSUMED RATE
TO MATURITY ON JUNE 15,
2005
---------------------------
5.00% 9.00%
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
AS OF JUNE 15, 2005 (BEFORE WITHDRAWAL)
- -----------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,048 $ 119,487
- -----------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,080 $ 131,080
- -----------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,968 $ (11,593)
- -----------------------------------------------------------------------------------------------
ON JUNE 15, 2005 (AFTER WITHDRAWAL)
- -----------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,501 $ (4,851)
- -----------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount
[$50,000 - (4)] $ 45,499 $ 54,851
- -----------------------------------------------------------------------------------------------
(6) Fixed maturity amount (2) - (5) $ 85,581 $ 76,229
- -----------------------------------------------------------------------------------------------
(7) Maturity value $120,032 $ 106,915
- -----------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
- -----------------------------------------------------------------------------------------------
</TABLE>
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a negative market value
adjustment is realized. On the other hand, if a withdrawal is made when rates
have decreased from 7.00% to 5.00% (left column), a positive market value
adjustment is realized.
<PAGE>
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
PAGE
Required minimum distributions option 2
Custodian and independent accountants 4
Alliance Money Market option yield information 4
Other yield information 5
Financial statements 12
HOW TO OBTAIN AN EQUI-VEST EXPRESS STATEMENT OF ADDITIONAL INFORMATION FOR
SEPARATE ACCOUNT A
Call 1-800-628-6673 or send this request form to:
EQUI-VEST Express
Processing Office
The Equitable Life
P.O. Box 2996
New York, NY 10116-2996
- --------------------------------------------------------------------------------
Please send me an EQUI-VEST Express Statement of Additional Information dated
May 1, 2000.
(Combination variable and fixed deferred annuity)
- ------------------------------------------------------------------------------
Name:
- ------------------------------------------------------------------------------
Address:
- ------------------------------------------------------------------------------
City State Zip
SAI (05/00)
<PAGE>
EQUI-VEST(Registered Trademark)
A combination variable and fixed deferred annuity contract
Please read and keep this prospectus for future reference. It contains important
information that you should know before purchasing or taking any other action
under your contract. Also, at the end of this prospectus you will find attached
the prospectus for EQ Advisors Trust, which contains important information about
its portfolios.
PROSPECTUS DATED MAY 1, 2000
- --------------------------------------------------------------------------------
WHAT IS EQUI-VEST?
EQUI-VEST is a deferred annuity contract issued by THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES. It provides for the accumulation of retirement
savings and for income. The contract also offers death benefit protection and a
number of payout options. You invest to accumulate value on a tax-deferred basis
in one or more of our variable investment options, our guaranteed interest
option or in our fixed maturity options ("investment options"). This contract
may not currently be available in all states.
- ---------------------------------------------------------------------
VARIABLE INVESTMENT OPTIONS
- ---------------------------------------------------------------------
FIXED INCOME
- ---------------------------------------------------------------------
o Alliance High Yield o Alliance Money Market
o Alliance Intermediate o Alliance Quality Bond
Government Securities
- ---------------------------------------------------------------------
DOMESTIC STOCKS
- ---------------------------------------------------------------------
o EQ/Aggressive Stock (1) o EQ/Evergreen
o Alliance Common Stock o MFS Emerging Growth Companies
o Alliance Equity Index o MFS Growth with Income
o Alliance Growth and Income o MFS Research
o EQ/Alliance Premier Growth o Mercury Basic Value Equity (3)
o Alliance Small Cap Growth o EQ/Putnam Growth & Income Value
o EQ/Alliance Technology (2) o T. Rowe Price Equity Income
o Capital Guardian Research o Warburg Pincus Small
o Capital Guardian U.S.Equity Company Value
- ---------------------------------------------------------------------
INTERNATIONAL STOCKS
- ---------------------------------------------------------------------
o Alliance Global o Morgan Stanley Emerging
o Alliance International Markets Equity
o T. Rowe Price International Stock
- ---------------------------------------------------------------------
BALANCED/HYBRID:
- ---------------------------------------------------------------------
o Alliance Conservative o EQ/Evergreen Foundation
Investors o Mercury World Strategy (5)
o Alliance Growth Investors o EQ/Putnam Balanced
o EQ/Balanced (4)
- ---------------------------------------------------------------------
- ----------
(1) Formerly named "Alliance Aggressive Stock."
(2) Anticipated to become available on or about May 22, 2000. This option
may not be available in the State of California.
(3) Formerly named "Merrill Lynch Basic Value Equity."
(4) Formerly named "Alliance Balanced."
(5) Formerly named "Merrill Lynch World Strategy."
You may allocate amounts to the variable investment options under your choice of
investment method subject to any restrictions. Each variable investment option
is a subaccount of our Separate Account A. Each variable investment option, in
turn, invests in a corresponding securities portfolio of EQ Advisors Trust. Your
investment results in a variable investment option will depend on the investment
performance of the related portfolio.
GUARANTEED INTEREST OPTION. You may allocate amounts to the guaranteed interest
option. This option is part of our general account and pays interest at
guaranteed rates.
FIXED MATURITY OPTIONS. You may allocate amounts to one or more fixed maturity
options. These amounts will receive a fixed rate of interest for a specified
period. Interest is earned at a guaranteed rate set by us. We make a market
value adjustment (up or down) if you make transfers or withdrawals from a fixed
maturity option before its maturity date.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA or Roth
IRA.
o A traditional IRA as a conduit to hold rollover distributions ("QP IRA")
from a qualified plan or a Tax-Sheltered Annuity ("TSA").
A contribution ranging from $50 to $2,500 is required to purchase a contract.
The minimum amount required depends on the type of contract, NQ, IRA or QP IRA,
purchased.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2000, is a part of one of the registration
statements. The SAI is available free of charge. You may request one by writing
to our processing office or calling 1(800) 628-6673. The SAI has been
incorporated by reference into this prospectus. This prospectus and the SAI can
also be obtained from the SEC's Web site at http://www.sec.gov. The table of
contents for the SAI appears at the back of this prospectus.
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY.
THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK
GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL.
71974
SERIES 800
<PAGE>
CONTENTS OF THIS PROSPECTUS
- ----------------
2
CONTENTS OF THIS PROSPECTUS
- --------------------------------------------------------------------------------
EQUI-VEST(R)
- ---------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
EQUI-VEST at a glance - key features 9
- ---------------------------------------------------------------
FEE TABLE 12
- ---------------------------------------------------------------
Examples 15
Condensed financial information 16
- ---------------------------------------------------------------
1
CONTRACT FEATURES AND BENEFITS 17
- ---------------------------------------------------------------
How you can purchase and contribute to your contract 17
Owner and annuitant requirements 21
How you can make your contributions 21
What are your investment options under the contract? 21
Selecting your investment method 25
Allocating your contributions 27
Your right to cancel within a certain number of days 27
Death benefit 27
- ---------------------------------------------------------------
2
DETERMINING YOUR CONTRACT'S VALUE 29
- ---------------------------------------------------------------
Your account value and cash value 29
Your contract's value in the variable investment options 29
Your contract's value in the guaranteed interest option 29
Your contract's value in the fixed maturity options 29
- --------------------------------------------------------------------------------
"We," "our" and "us" refer to Equitable Life.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates
that are issued under group contracts in some states.
<PAGE>
- ----------
3
CONTENTS OF THIS PROSPECTUS
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------
3
TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 30
- ---------------------------------------------------------------
Transferring your account value 30
Market timing 30
Automatic transfer options-investment simplifier 30
Rebalancing your account value 31
- ---------------------------------------------------------------
4
ACCESSING YOUR MONEY 32
- ---------------------------------------------------------------
Withdrawing your account value 32
How withdrawals are taken from your account value 33
Surrender of your contract to receive its cash value 33
Termination 33
When to expect payments 34
Your annuity payout options 34
- ---------------------------------------------------------------
5
CHARGES AND EXPENSES 37
- ---------------------------------------------------------------
Charges that Equitable Life deducts 37
Charges that EQ Advisors Trust deducts 41
Group or sponsored arrangements 42
Other distribution arrangements 42
- ---------------------------------------------------------------
6
PAYMENT OF DEATH BENEFIT 43
- ---------------------------------------------------------------
Your beneficiary and payment of benefit 43
How death benefit payment is made 44
Beneficiary continuation option 44
- ---------------------------------------------------------------
7
TAX INFORMATION 46
- ---------------------------------------------------------------
Overview 46
Transfers among investment options 46
Taxation of nonqualified annuities 46
Other information 47
Special rules for NQ contracts issued in Puerto Rico 48
Individual retirement arrangements ("IRAs") 48
Federal and state income tax withholding and
information reporting 61
Impact of taxes to Equitable Life 61
- ---------------------------------------------------------------
8
MORE INFORMATION 62
- ---------------------------------------------------------------
About our Separate Account A 62
About EQ Advisors Trust 62
About our fixed maturity options 63
About the general account 64
About other methods of payment 64
Dates and prices at which contract events occur 65
About your voting rights 66
About legal proceedings 66
About our independent accountants 66
Financial statements 67
Transfers of ownership, collateral assignments, loans,
and borrowing 67
Distribution of the contracts 67
- ---------------------------------------------------------------
9
INVESTMENT PERFORMANCE 68
- ---------------------------------------------------------------
Benchmarks 68
Communicating performance data 78
- ---------------------------------------------------------------
10
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 80
- ---------------------------------------------------------------
- ---------------------------------------------------------------
APPENDICES
- ---------------------------------------------------------------
I - Condensed financial information A-1
II - Market value adjustment example B-1
III - Death benefit example C-1
- ---------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS
- ---------------------------------------------------------------
<PAGE>
INDEX OF KEY WORDS AND PHRASES
- --------
4
INDEX OF KEY WORDS AND PHRASES
- --------------------------------------------------------------------------------
This index should help you locate more information on the
terms used in this prospectus.
PAGE
account value 29
annuitant 17
annuity payout options 34
beneficiary 43
business day 65
cash value 29
conduit IRA 51
contract date 11
contract date anniversary 11
contract year 11
contributions 21
Contributions to Roth IRAs
regular contribution 54
rollovers and direct transfers 55
conversion contributions 55
direct transfers 54
contributions to traditional IRAs
regular contributions 49
rollover contributions 49
direct transfers 49
EQAccess 6
fixed maturity amount 24
fixed maturity options 24
guaranteed interest option 24
IRA cover
IRS 46
investment options 22
market adjusted amount 24
market value adjustment 24
maturity value 24
NQ cover
portfolio cover
processing office 6
QP IRAs cover
ratcheted death benefit 28
rate to maturity 24
Required Beginning Date 52
Roth IRA cover
SAI cover
SEC cover
TOPS 6
traditional IRA cover
TSA cover
unit 29
unit investment trust 62
variable investment options 22
To make this prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we do use different words, they have the same meaning in this prospectus as in
the contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
---------- ----------------------------------
fixed maturity options Guarantee Periods or Fixed Maturity Accounts
variable investment options Investment Funds or Investment Divisions
account value Annuity Account Value
rate to maturity Guaranteed Rates
guaranteed interest option Guaranteed Interest Account
unit Accumulation unit
unit value Accumulation unit value
<PAGE>
WHO IS EQUITABLE LIFE?
- ----------------
5
WHO IS EQUITABLE LIFE?
- --------------------------------------------------------------------------------
We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing business
since 1859. Equitable Life is a wholly owned subsidiary of AXA Financial, Inc.
(previously, The Equitable Companies Incorporated). The majority shareholder of
AXA Financial, Inc. is AXA, a French holding company for an international group
of insurance and related financial services companies. As a majority
shareholder, and under its other arrangements with Equitable Life and Equitable
Life's parent, AXA exercises significant influence over the operations and
capital structure of Equitable Life and its parent. No company other than
Equitable Life, however, has any legal responsibility to pay amounts that
Equitable Life owes under the contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$462.7 billion in assets as of December 31, 1999. For over 100 years Equitable
Life has been among the largest insurance companies in the United States. We are
licensed to sell life insurance and annuities in all fifty states, the District
of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office is
located at 1290 Avenue of the Americas, New York, N.Y. 10104.
<PAGE>
- ----------
6
WHO IS EQUITABLE LIFE?
- ------------------------------------------------------------------------------
HOW TO REACH US
You may communicate with our processing office as listed below for any of the
following purposes:
- ------------------------------------------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS INDIVIDUALLY BY REGULAR MAIL:
- ------------------------------------------------------------------------------
Equitable Life
EQUI-VEST
Individual Collections
P.O. Box 13459
Newark, NJ 07188-0459
- ------------------------------------------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS INDIVIDUALLY BY EXPRESS DELIVERY:
- ------------------------------------------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13459
- ------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL:
- ------------------------------------------------------------------------------
Equitable Life
EQUI-VEST
P.O. Box 2996
New York, NY 10116-2996
- ------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY:
- ------------------------------------------------------------------------------
Equitable Life
EQUI-VEST
200 Plaza Drive, 2nd Floor
Secaucus, NJ 07094
- ------------------------------------------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS AND SENT BY REGULAR MAIL:
- ------------------------------------------------------------------------------
Equitable Life
EQUI-VEST
Unit Collections
P.O. Box 13463
Newark, New Jersey 07188-0463
- ------------------------------------------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS AND SENT BY EXPRESS
DELIVERY:
- ------------------------------------------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13463
- ------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- ------------------------------------------------------------------------------
o written confirmation of financial transactions; and
o annual statement of your contract values as of the close of the calendar
year.
- ------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS:
- ------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
<PAGE>
- ----------
7
WHO IS EQUITABLE LIFE?
- --------------------------------------------------------------------------------
You can also:
o change your allocation percentages and/or transfer among the variable
investment options and the guaranteed interest option (anticipated to be
available through EQAccess by end of 2000);
o elect the investment simplifier; (not available through EQAccess);
o change your TOPS personal identification number ("PIN"); (not available
through EQ Access); and
o change your EQAccess password (not available through TOPS).
TOPS and EQ Access are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll-free 1 (800) 755-7777. You may use EQAccess by
visiting our Web site at http://www.equitable.com and clicking on EQ Access. Of
course, for reasons beyond our control, these services may sometimes be
unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
geniuness of telephone or Internet instructions, we may be liable for any losses
arising out of any act or omission that constitutes negligence, lack of good
faith, or willful misconduct. In light of our procedures, we will not be liable
for following telephone or Internet instructions we reasonably believe to be
genuine.
We reserve the right to limit access to these services if we determine that you
are engaged in a market timing strategy (see "Market timing" in "Transferring
your money among investment options.")
- -------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- -------------------------------------------------------------------------------
You may also use our toll-free number (1-800-628-6673) to speak with one of our
customer service representatives. Our customer service representatives are
available on each business day Monday through Thursday from 8:00 a.m. to 7:00
p.m., and on Fridays until 5:00 p.m., Eastern Time.
- -------------------------------------------------------------------------------
TOLL FREE TELEPHONE SERVICE:
- -------------------------------------------------------------------------------
You may reach us toll-free by calling 1(800) 841-0801 for a recording of daily
unit values for the variable investment options.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) conversion of your traditional IRA to a Roth IRA contract;
(2) cancellation of your Roth IRA contract and return to a traditional IRA
contract;
(3) election of the automatic investment program;
(4) election of the investment simplifier;
(5) election of the automatic NQ deposit service;
(6) election of the rebalancing program;
(7) election of required minimum distribution option;
(8) election of beneficiary continuation option;
(9) election of the principal assurance allocation; and
(10) request for a transfer/rollover of assets or 1035 exchange to another
carrier.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers among investment options;
(4) change of ownership; and
(5) contract surrender and withdrawal requests.
<PAGE>
- ----------
8
WHO IS EQUITABLE LIFE?
- --------------------------------------------------------------------------------
TO CHANGE OR CANCEL ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) investment simplifier;
(3) rebalancing program;
(4) systematic withdrawals; and
(5) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner.
<PAGE>
EQUI-VEST AT A GLANCE - KEY FEATURES
- --------
9
EQUI-VEST AT A GLANCE - KEY FEATURES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
<S> <C>
PROFESSIONAL EQUI-VEST's variable investment options invest in different portfolios managed by
INVESTMENT professional investment advisers.
MANAGEMENT
- -------------------------------------------------------------------------------------------------------------------------
GUARANTEED INTEREST o Principal and interest guarantees
OPTION o Interest rates set periodically
- -------------------------------------------------------------------------------------------------------------------------
FIXED MATURITY o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years.
OPTIONS o Each fixed maturity option offers a guarantee of principal and interest rate if you hold
it to maturity.
----------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will
be a market value adjustment due to differences in interest rates. This may increase or
decrease any value that you have left in that fixed maturity option. If you surrender your
contract, a market value adjustment may also apply.
- -------------------------------------------------------------------------------------------------------------------------
TAX ADVANTAGES o On earnings inside the No tax on any dividends, interest or capital gains until you make
contract withdrawals from your contract or receive annuity payments.
----------------------------------------------------------------------------------------------
o On transfers inside the No tax on transfers among investment options.
contract
----------------------------------------------------------------------------------------------
If you are buying a contract to fund a retirement plan that already provides tax deferral
under the Internal Revenue Code, such as any type of IRA, you should do so for the contract's
features and benefits other than tax deferral. In such situations, the tax deferral of the
contract does not provide necessary or additional benefits.
- -------------------------------------------------------------------------------------------------------------------------
CONTRIBUTION AMOUNTS o NQ:
- $1,000 (initial) or $50 (initial for payroll deduction); $50 (additional).
o Traditional IRA and Roth IRA:
- $50 (initial and additional).
o QP IRA:
- $2,500 each rollover amount.
----------------------------------------------------------------------------------------------
Maximum contribution limitations may apply.
- -------------------------------------------------------------------------------------------------------------------------
DEATH BENEFIT PROTECTION The contract provides a death benefit for the beneficiary should the annuitant die. The death
benefit is equal to the highest of the following:
o the account value, or
o the minimum death benefit, or
o if elected, the optional ratcheted death benefit.
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
10
EQUI-VEST AT A GLANCE - KEY FEATURES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ACCESS TO YOUR MONEY o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Contract surrender
You may incur a withdrawal charge for certain withdrawals
or if you surrender your contract. You may also incur
income tax and a penalty tax.
- --------------------------------------------------------------------------------
PAYOUT OPTIONS o Fixed annuity payout options.
o Variable annuity payout options.
- --------------------------------------------------------------------------------
ADDITIONAL FEATURES o Dollar-cost averaging by automatic transfers
- Interest sweep option
- Fixed-dollar option
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and
annually)
o Principal assurance allocation
o No charge on transfers among investment options
o Waiver of withdrawal charge for disability, confinement
to a nursing home, and terminal illness
- --------------------------------------------------------------------------------
FEES AND CHARGES o Daily charges on amounts invested in the variable
investment options for mortality and expense risks
and other expenses at a current annual rate of 1.20%
(2.0% maximum).
o If your account value at the end of the contract year
is less than $25,000 for NQ contracts (or less than
$20,000 for IRA contracts), we deduct an annual
administrative charge equal to $30 or during the first
two contract years 2% of your account value, if less
($65 maximum). If your account value is $25,000 or more
for NQ contracts (or $20,000 or more for IRA
contracts), we will not deduct the charge.
o Charge for third-party transfer (such as in the case of
a trustee-to-trustee transfer for an IRA contract) or
exchange (if your contract is exchanged for a contract
issued by another insurance company) - $25 currently
($65 maximum) per occurrence.
o No sales charge deducted at the time you make
contributions.
o We deduct a charge equal to 6% of contributions that
have been withdrawn if such contributions were made in
the current and five prior contract years. There is no
charge in any contract year in which the amount
withdrawn does not exceed 15% of your account value at
the time of your withdrawal request minus prior
withdrawals in that contract year. Under certain
circumstances the withdrawal charge will not apply.
They are discussed in "Charges and expenses" later in
this prospectus. In addition there is no withdrawal
charge if the annuitant is age 86 or older when the
contract is issued. Certain other exemptions apply.
- --------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
11
EQUI-VEST AT A GLANCE - KEY FEATURES
- --------------------------------------------------------------------------------
The "contract date" is the effective date of a contract.
This usually is the business day we receive the properly
completed and signed application, along with other required
documents and, your initial contribution. Your contract
date will be shown in your contract. The 12-month period
beginning on your contract date and each 12-month period
after that date is a "contract year." The end of each
12-month period is your "contract date anniversary."
------------------------------------------------------------
FEES AND CHARGES o We deduct an annual charge equal to 0.15% of the account
(CONTINUED) value on each contract date anniversary if you elect the
optional ratcheted death benefit.
o We deduct a charge designed to approximate certain taxes
that may be imposed on us, such as premium taxes in your
state. The charge is generally deducted from the amount
applied to an annuity payout option.
o We deduct a $350 annuity administrative fee from amounts
applied to a variable annuity payout option.
o Annual expenses of EQ Advisors Trust portfolios are
calculated as a percentage of the average daily net assets
invested in each portfolio. These expenses include
management fees ranging from 0.25% to 1.15% annually,
12b-1 fees of 0.25% annually, and other expenses.
- --------------------------------------------------------------------------------
ANNUITANT NQ 0 - 90
ISSUE AGES QP IRA 0 - 90
Traditional IRA 0 - 90
Roth IRA 0 - 90
------------------------------------------------------------
* Contracts will be issued to annuitants ages 84-90
beginning on or about May 22, 2000 subject to our prior
approval.
- --------------------------------------------------------------------------------
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY. MAXIMUM EXPENSE
LIMITATIONS APPLY TO CERTAIN VARIABLE INVESTMENT OPTIONS, AND RIGHTS ARE
RESERVED TO CHANGE OR WAIVE CERTAIN CHARGES WITHIN SPECIFIED LIMITS. ALSO, ALL
FEATURES OF THE CONTRACT, INCLUDING ALL VARIABLE INVESTMENT OPTIONS, ARE NOT
NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES OR UNDER YOUR INVESTMENT
METHOD.
For more detailed information we urge you to read the contents of this
prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, fees and/or charges that are different
from those offered by this prospectus. Not every contract is offered through
the same distributor. Upon request, your financial professional can show you
information regarding other Equitable Life annuity contracts that he or she
distributes. You can also contact us to find out more about any of the
Equitable Life annuity contracts.
<PAGE>
FEE TABLE
- --------
12
FEE TABLE
- --------------------------------------------------------------------------------
The fee table below will help you understand the various charges and expenses
that apply to your contract. The table reflects charges you will directly incur
under the contract, as well as charges and expenses of the Portfolios that you
will bear indirectly. Charges designed to approximate certain taxes that may be
imposed on us, such as premium taxes in your state, may also apply. Also, an
annuity administrative fee may apply when your annuity payments are to begin.
Each of the charges and expenses is more fully described in "Charges and
expenses" later in this prospectus.
The guaranteed interest option and fixed maturity options are not covered by
the fee table and examples. However, the annual administrative charge, the
withdrawal charge, the optional ratcheted death benefit charge, and the
third-party transfer or exchange charge do apply to the guaranteed interest
option and fixed maturity options. Also, an annuity administrative fee may
apply when your annuity payments are to begin. A market value adjustment (up or
down) may apply as a result of a withdrawal, transfer or surrender of amounts
from a fixed maturity option.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN
ANNUAL PERCENTAGE OF DAILY NET ASSETS
- -----------------------------------------------------------------------------------------------------
<S> <C>
Mortality and expense risk(1) 0.95%
Other expenses 0.25%
----
Total Separate Account A annual expenses 1.20% current
(2.00% maximum)
- ----------------------------------------------------------------------- -----------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
- -----------------------------------------------------------------------------------------------------
Annual administrative charge(2)
If your account value is less than $25,000 for NQ contracts (or less than $30 current
$20,000 for IRA contracts) on the last day of your contract year ($65 maximum)
If your account value is $25,000 or more for NQ contracts (or $20,000 or
more for IRA contracts) on the last day of your contract year $0
- -----------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN
TRANSACTIONS
- -----------------------------------------------------------------------------------------------------
Withdrawal charge(3) 6%
Charge for third-party transfer or exchange $25 current
($65 maximum) for
each occurrence
Charge if you elect a life annuity payout option $350
- -----------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE EACH YEAR IF YOU ELECT THE
OPTIONAL BENEFIT
- -----------------------------------------------------------------------------------------------------
Optional ratcheted death benefit charge (as a percentage of your account
value this charge is deducted annually on each contract date anniversary until
age 90) 0.15%
</TABLE>
<PAGE>
- -----
13
FEE TABLE
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
<TABLE>
<CAPTION>
TOTAL
OTHER ANNUAL
EXPENSES EXPENSES
MANAGEMENT (AFTER EXPENSE (AFTER EXPENSE
FEES(4) 12B-1 FEE(5) LIMITATIONS)(6) LIMITATION)(7)
------------ --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 0.60% 0.25% 0.04% 0.89%
Alliance Common Stock 0.46% 0.25% 0.04% 0.75%
Alliance Conservative Investors 0.60% 0.25% 0.07% 0.92%
Alliance Equity Index 0.25% 0.25% 0.05% 0.55%
Alliance Global 0.73% 0.25% 0.09% 1.07%
Alliance Growth and Income 0.59% 0.25% 0.05% 0.89%
Alliance Growth Investors 0.57% 0.25% 0.05% 0.87%
Alliance High Yield 0.60% 0.25% 0.05% 0.90%
Alliance Intermediate Government Securities 0.50% 0.25% 0.07% 0.82%
Alliance International 0.85% 0.25% 0.20% 1.30%
Alliance Money Market 0.34% 0.25% 0.05% 0.64%
EQ/Alliance Premier Growth 0.90% 0.25% 0.00% 1.15%
Alliance Quality Bond 0.53% 0.25% 0.05% 0.83%
Alliance Small Cap Growth 0.75% 0.25% 0.07% 1.07%
*EQ/Alliance Technology 0.90% 0.25% 0.00% 1.15%
EQ/Balanced 0.57% 0.25% 0.05% 0.87%
Capital Guardian Research 0.65% 0.25% 0.05% 0.95%
Capital Guardian U.S. Equity 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen Foundation 0.60% 0.25% 0.10% 0.95%
MFS Emerging Growth Companies 0.65% 0.25% 0.10% 1.00%
MFS Growth with Income 0.60% 0.25% 0.10% 0.95%
MFS Research 0.65% 0.25% 0.05% 0.95%
Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
Mercury World Strategy 0.70% 0.25% 0.25% 1.20%
Morgan Stanley Emerging Markets Equity 1.15% 0.25% 0.35% 1.75%
EQ/Putnam Balanced 0.60% 0.25% 0.05% 0.90%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% 0.95%
T. Rowe Price Equity Income 0.60% 0.25% 0.10% 0.95%
T. Rowe Price International Stock 0.85% 0.25% 0.15% 1.25%
Warburg Pincus Small Company Value 0.75% 0.25% 0.10% 1.10%
</TABLE>
- ----------
* Anticipated to become available on or about May 22, 2000.
<PAGE>
- -----
14
FEE TABLE
- --------------------------------------------------------------------------------
Notes:
(1) A portion of this charge is for providing the death benefit.
(2) During the first two contract years, this charge is currently equal to
the lesser of $30 or 2% of your account value if it applies. Thereafter,
the charge is $30 for each contract year. We reserve the right to
increase this charge to a maximum of $65.
(3) This charge applies to any contribution withdrawn within six contract
years of the date of the contribution. This charge is deducted upon a
withdrawal of amounts in excess of the 15% free withdrawal amount.
Important exceptions and limitations may eliminate or reduce this charge.
(4) The management fees shown reflect the revised management fees, effective
on or about May 1, 2000 which were approved by shareholders. The
management fees shown for EQ/Putnam Balanced, EQ/Putnam Growth & Income
Value, Warburg Pincus Small Company Value and T. Rowe Price International
Stock do not reflect the waiver of a portion of each of the portfolio's
investment management fees that is currently in effect. The management
fee for each portfolio cannot be increased without a vote of that
portfolio's shareholders.
(5) Portfolio shares are all subject to fees imposed under the distribution
plan (the "Rule 12b-1 Plan") adopted by EQ Advisors Trust pursuant to
Rule 12b-1 under the Investment Company Act of 1940. The 12b-1 fee will
not be increased for the life of the contracts. Prior to October 18,
1999, the total annual expenses for the Alliance Small Cap Growth
portfolio were limited to 1.20% under an expense limitation arrangement
related to that portfolio's Rule 12b-1 Plan. The arrangement is no longer
in effect. The amounts shown have been restated to reflect the expenses
that would have been incurred in 1999, absent the expense limitation
arrangement.
(6) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. See footnote (7) for any expense limitation
agreements.
On October 18, 1999, the Alliance portfolios (other than EQ/Alliance
Premier Growth and EQ/Alliance Technology) became part of the portfolios
of EQ Advisors Trust. The "Other Expenses" for these portfolios have been
restated to reflect the estimated expenses that would have been incurred
had these portfolios been portfolios of EQ Advisors Trust for the entire
year ended December 31, 1999. The restated expenses reflect an increase of
0.01% for each of these portfolios.
(7) Equitable Life, EQ Advisors Trust's manager, has entered into an expense
limitation agreement with respect to certain portfolios. Under this
agreement Equitable Life has agreed to waive or limit its fees and assume
other expenses. Under the expense limitation agreement, total annual
operating expenses of certain portfolios (other than interest, taxes,
brokerage commissions, capitalized expenditures, extraordinary expenses
and 12b-1 fees) are limited as a percentage of the average daily net
assets of each of the following portfolios: 1.75% for Morgan Stanley
Emerging Markets Equity; 1.25% for T. Rowe Price International Stock;
1.20% for Mercury World Strategy; 1.15% for EQ/Alliance Premier Growth
and EQ/Alliance Technology; 1.10% for Warburg Pincus Small Company Value;
1.00% for MFS Emerging Growth Companies; 0.95% for Capital Guardian U.S.
Equity, Capital Guardian Research, EQ/Evergreen, EQ/Evergreen Foundation,
MFS Growth with Income, MFS Research, Mercury Basic Value Equity,
EQ/Putnam Growth & Income Value and T. Rowe Price Equity Income; and
0.90% for EQ/Putnam Balanced. The expense limitations for the EQ/Putnam
Growth & Income Value, Mercury Basic Value Equity, MFS Growth with
Income, MFS Research, MFS Emerging Growth Companies, T. Rowe Price Equity
Income, T. Rowe Price International Stock and Warburg Pincus Small
Company Value, portfolios reflect an increase effective on May 1, 2000.
The expense limitation for the EQ/Evergreen portfolio reflects a decrease
effective on May 1, 2000.
Absent the expense limitation, the "Other Expenses" for 1999 on an
annualized basis for each of the portfolios would have been as follows:
1.00% for Morgan Stanley Emerging Markets Equity; 0.30% for T. Rowe Price
International Stock; 0.46% for Mercury World Strategy; 0.23% for
EQ/Alliance Premier Growth; 0.10% for EQ/Alliance Technology; 0.24% for
Warburg Pincus Small Company Value; 0.17% for MFS Emerging Growth
Companies; 0.34% for Capital Guardian U.S. Equity; 0.47% for Capital
Guardian Research; 1.87% for EQ/Evergreen; 1.07% for EQ/Evergreen
Foundation; 0.37% for MFS Growth with Income; 0.17% for MFS Research;
0.17% for Mercury Basic Value Equity; 0.16% for EQ/Putnam Growth & Income
Value; 0.21% for T. Rowe Price Equity Income; and 0.28% for EQ/Putnam
Balanced. Initial seed capital was
<PAGE>
- -----
15
FEE TABLE
- --------------------------------------------------------------------------------
invested on April 30, 1999 for EQ/Alliance Premier Growth, Capital
Guardian U.S. Equity and Capital Guardian Research portfolios and will be
invested on May 1, 2000 for the EQ/Alliance Technology portfolio and
therefore expenses have been estimated.
Each portfolio may at a later date make a reimbursement to Equitable Life
for any of the management fees waived or limited and other expenses
assumed and paid by Equitable Life pursuant to the expense limitation
agreement provided, that among other things, such portfolio has reached
sufficient size to permit such reimbursement to be made and provided that
the portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such portfolio. For more
information see the prospectus for EQ Advisors Trust.
EXAMPLES
The examples below show the expenses that a hypothetical contract owner would
pay in the situations illustrated. We assume a $1,000 contribution is invested
in one of the variable investment options listed and a 5% annual return is
earned on the assets in that option.(1) We also assume that the optional
ratcheted death benefit is not elected and there is no waiver of the withdrawal
charge. The annual administrative charge is based on the charges that apply to
a mix of estimated contract sizes, resulting in an estimated administrative
charge for the purpose of these examples of $0.51 per $1,000. We assume there
is no waiver of the withdrawal charge. Total Separate Account A expenses used
to compute the example below are the maximum expenses rather than the lower
current expenses. The administrative charge used in the examples is the maximum
charge rather than the lower current charge.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
<TABLE>
<CAPTION>
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 82.84 $ 148.36 $ 216.41 $ 336.63
Alliance Common Stock $ 81.45 $ 144.23 $ 209.64 $ 322.77
Alliance Conservative Investors $ 83.14 $ 149.25 $ 217.86 $ 339.57
Alliance Equity Index $ 79.45 $ 138.32 $ 199.88 $ 302.61
Alliance Global $ 84.63 $ 153.65 $ 225.07 $ 354.16
Alliance Growth and Income $ 82.84 $ 148.36 $ 216.41 $ 336.63
Alliance Growth Investors $ 82.64 $ 147.77 $ 215.45 $ 334.66
Alliance High Yield $ 82.94 $ 148.66 $ 216.90 $ 337.61
Alliance Intermediate Government Securities $ 82.14 $ 146.30 $ 213.03 $ 329.72
Alliance International $ 86.92 $ 160.38 $ 236.03 $ 376.10
Alliance Money Market $ 80.35 $ 140.98 $ 204.28 $ 311.73
EQ/Alliance Premier Growth $ 85.43 $ 155.99 $ 228.89 $ 361.85
Alliance Quality Bond $ 82.24 $ 146.59 $ 213.52 $ 330.71
Alliance Small Cap Growth $ 84.63 $ 153.65 $ 225.07 $ 354.16
- -----------------------------------------------------------------------------------------------
<CAPTION>
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
- -----------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock $ 30.87 $ 94.38 $ 160.35 $ 336.63
Alliance Common Stock $ 29.40 $ 90.02 $ 153.16 $ 322.77
Alliance Conservative Investors $ 31.18 $ 95.31 $ 161.88 $ 339.57
Alliance Equity Index $ 27.30 $ 83.76 $ 142.82 $ 302.61
Alliance Global $ 32.75 $ 99.97 $ 169.52 $ 354.16
Alliance Growth and Income $ 30.87 $ 94.38 $ 160.35 $ 336.63
Alliance Growth Investors $ 30.66 $ 93.76 $ 159.32 $ 334.66
Alliance High Yield $ 30.97 $ 94.69 $ 160.86 $ 337.61
Alliance Intermediate Government Securities $ 30.13 $ 92.20 $ 156.76 $ 329.72
Alliance International $ 35.17 $ 107.08 $ 181.13 $ 376.10
Alliance Money Market $ 28.24 $ 86.58 $ 147.49 $ 311.73
EQ/Alliance Premier Growth $ 33.59 $ 102.44 $ 173.57 $ 361.85
Alliance Quality Bond $ 30.24 $ 92.51 $ 157.27 $ 330.71
Alliance Small Cap Growth $ 32.75 $ 99.97 $ 169.52 $ 354.16
- -----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
16
FEE TABLE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
- ------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Alliance Technology $ 85.43 $ 155.99 - -
EQ/Balanced $ 82.64 $ 147.77 $ 215.45 $ 334.66
Capital Guardian Research $ 83.44 $ 150.13 - -
Capital Guardian U.S. Equity $ 83.44 $ 150.13 - -
EQ/Evergreen $ 83.44 $ 150.13 $ 219.31 $ 342.51
EQ/Evergreen Foundation $ 83.44 $ 150.13 $ 219.31 $ 342.51
MFS Emerging Growth Companies $ 83.94 $ 151.60 $ 221.71 $ 347.38
MFS Growth with Income $ 83.44 $ 150.13 $ 219.31 $ 342.51
MFS Research $ 83.44 $ 150.13 $ 219.31 $ 342.51
Mercury Basic Value Equity $ 83.44 $ 150.13 $ 219.31 $ 342.51
Mercury World Strategy $ 85.93 $ 157.46 $ 231.28 $ 366.63
Morgan Stanley Emerging Markets Equity $ 91.41 $ 173.45 $ 257.16 $ 417.55
EQ/Putnam Balanced $ 82.94 $ 148.66 $ 216.90 $ 337.61
EQ/Putnam Growth & Income Value $ 83.44 $ 150.13 $ 219.31 $ 342.51
T. Rowe Price Equity Income $ 83.44 $ 150.13 $ 219.31 $ 342.51
T. Rowe Price International Stock $ 86.43 $ 158.92 $ 233.66 $ 371.38
Warburg Pincus Small Company Value $ 84.93 $ 154.53 $ 226.51 $ 357.06
- ------------------------------------------------------------------------------------------
<CAPTION>
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
- ------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Alliance Technology $ 33.59 $ 102.44 - -
EQ/Balanced $ 30.66 $ 93.76 $ 159.32 $ 334.66
Capital Guardian Research $ 31.49 $ 96.24 - -
Capital Guardian U.S. Equity $ 31.49 $ 96.24 - -
EQ/Evergreen $ 31.49 $ 96.24 $ 163.41 $ 342.51
EQ/Evergreen Foundation $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Emerging Growth Companies $ 32.02 $ 97.80 $ 165.96 $ 347.38
MFS Growth with Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
MFS Research $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury Basic Value Equity $ 31.49 $ 96.24 $ 163.41 $ 342.51
Mercury World Strategy $ 34.12 $ 103.99 $ 176.10 $ 366.63
Morgan Stanley Emerging Markets Equity $ 39.89 $ 120.89 $ 203.53 $ 417.55
EQ/Putnam Balanced $ 30.97 $ 94.69 $ 160.86 $ 337.61
EQ/Putnam Growth & Income Value $ 31.49 $ 96.24 $ 163.41 $ 342.51
T. Rowe Price Equity Income $ 31.49 $ 96.24 $ 163.41 $ 342.51
T. Rowe Price International Stock $ 34.64 $ 105.53 $ 178.62 $ 371.38
Warburg Pincus Small Company Value $ 33.07 $ 100.90 $ 171.04 $ 357.06
- ------------------------------------------------------------------------------------------
</TABLE>
- ----------
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity payout option at the end of any of the periods
shown in the examples. This is because if the amount applied to purchase
an annuity payout option is less than $2,000, or the initial payment is
less than $20, we may pay the amount to you in a single sum instead of as
payments under an annuity payout option. See "Accessing your money."
IF YOU ELECT THE OPTIONAL RATCHETED DEATH BENEFIT:
The above examples do not reflect a charge for the optional ratcheted death
benefit. If you elect the optional ratcheted death benefit we will also deduct
an annual charge equal to 0.15% of your account value on each contract date
anniversary up to age 90. Therefore, the expenses shown in the above examples
would, in each case, be increased by an amount not in excess of $1.57 in the
first year, $1.74 in the third year, $1.91 in the fifth year and $2.44 in the
tenth year.
IF YOU ELECT A VARIABLE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see Note (1) above), and
you elect a variable annuity payout option, the expenses shown in the above
example for "if you do not surrender your contract" would, in each case, be
increased by $4.34 based on the average amount applied to annuity payout
options in 1999. See "Annuity administrative fee" under "Charges and expenses."
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this prospectus for the unit values and the
number of units outstanding as of the end of the period shown for each of the
variable investment options available as of December 31, 1999.
<PAGE>
1
CONTRACT FEATURES AND BENEFITS
- --------
17
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum contribution amount for each type of
contract purchased. The minimum contribution amount under our automatic
investment program is $20. We discuss the automatic investment program under
"About other methods of payment" in "More information" later in this
prospectus. The following table summarizes our rules regarding contributions to
your contract. All ages in the table refer to the age of the annuitant named in
the contract.
- ------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
AVAILABLE FOR
CONTRACT ANNUITANT MINIMUM SOURCE OF LIMITATIONS ON
TYPE ISSUE AGES* CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NQ 0 through 90 $1,000 (initial), o After-tax money. o For annuitants up to
$50 (additional) age 83 at contract
0 through 85 o Paid to us by check or issue, additional
in New York and transfer of contract contributions may be
Pennsylvania (when value in a tax deferred made up to age 84.
available in that exchange under
state) Section 1035 of the o For annuitants age 84
Internal Revenue Code. and older at contract
issue, additional
o Paid to us by an contributions may be
employer who made up to one year
establishes a payroll beyond the annuitant's
deduction program. issue age.
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
18
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
AVAILABLE FOR
CONTRACT ANNUITANT MINIMUM SOURCE OF LIMITATIONS ON
TYPE ISSUE AGES* CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Traditional IRA 0 through 90 $50 (initial and o "Regular" traditional o For annuitants up to
additional) IRA contributions either ages 70 1/2 to 83 at
0 through 85 made by you or paid to contract issue,
in New York us by an employer who additional rollover
and Pennsylvania establishes a payroll contributions may be
(when available) deduction program. made up to age 84.
o Rollovers from a TSA. o For annuitants age 84
and older at contract
o Rollovers from another issue, additional
traditional individual contributions may be
retirement arrangement. made up to one year
beyond the annuitant's
o Direct issue age.
custodian-to-custodian
transfers from other o For all types of IRAs
traditional individual regular IRA
retirement contributions may not
arrangements. exceed $2,000 for a
year.
o No additional regular
IRA contributions in
the calendar year you
turn age 70 1/2 and
thereafter.
o Rollover and direct
transfer contributions
after age 70 1/2 must be
net of required
minimum distributions.
o Although we accept
rollover and direct
transfer contributions
under the Traditional
IRA contracts, we
intend that these
contracts be used for
ongoing regular
contributions.
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
19
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
AVAILABLE FOR
CONTRACT ANNUITANT MINIMUM SOURCE OF LIMITATIONS ON
TYPE ISSUE AGES* CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Roth IRA 0 through 90 $50 (initial and o Regular after-tax o For annuitants up to
additional) contributions either age 83 at contract
0 through 85 made by you or paid to issue, additional
in New York us by an employer who contributions may be
and Pennsylvania establishes a payroll made up to age 84.
(when available) deduction program.
o For annuitants age 84
o Rollovers from another and older at contract
Roth IRA. issue, additional
contributions may be
o Conversion rollovers made up to one year
from a traditional IRA. beyond the annuitant's
issue age.
o Direct transfers from
another Roth IRA. o For all types of IRAs,
regular IRA
contributions may not
exceed $2,000 for a
year.
o Contributions are
subject to income limits
and other tax rules.
See "Contributions to
Roth IRAs - Tax
information."
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
20
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
AVAILABLE FOR
CONTRACT ANNUITANT MINIMUM SOURCE OF LIMITATIONS ON
TYPE ISSUE AGES* CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
QP Traditional 0 through 90 $2,500 o Rollovers from a o For annuitants up to
IRA qualified plan. age 83 at contract
0 through 85 in issue, additional
New York and o Rollovers from a TSA. contributions may be
Pennsylvania made up to age 84.
(when available) o The EQUI-VEST QP
Traditional IRA contract o For annuitants age 84
is intended to be a and older at contract
conduit IRA only for issue, additional
rollovers from a contributions may be
qualified plan or TSA. made up to one year
beyond the annuitant's
issue age.
o Rollover contributions
after age 70 1/2 must be
net of required
minimum distributions.
o Regular after-tax
contributions are not
permitted.
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
See "Tax information" for a more detailed discussion of sources of
contributions and certain contribution limitations. We may refuse to accept any
contribution if the sum of all contributions under all EQUI-VEST contracts with
the same annuitant would then total more than $1,000,000. We may also refuse to
accept any contribution if the sum of all contributions under all Equitable
Life annuity accumulation contracts that you own would then total more than
$2,500,000.
For information on when contributions are credited see "Dates and prices at
which contract events occur" under "More information" later in this prospectus.
<PAGE>
- ----------
21
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different than the owner.
Under any type of the IRA contract, the owner and annuitant must be the same
person.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be made by check drawn on a U.S. bank,
in U.S. dollars, and made payable to Equitable Life. We do not accept
third-party checks endorsed to us except for rollover contributions, tax-free
exchanges or trustee checks that involve no refund. All checks are subject to
our ability to collect the funds. We reserve the right to reject a payment if it
is received in an unacceptable form.
Additional contributions may also be made by wire transfer or our automatic
investment program. The method of payment is discussed in detail under "About
our methods of payment" in "More information" later in this prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the contribution. If any information is
missing or unclear, we will try to obtain that information. If we are unable to
obtain all of the information we require within five business days after we
receive an incomplete application or form, we will inform the financial
professional submitting the application on your behalf. We will then return the
contribution to you unless you specifically direct us to keep your contribution
until we receive the required information.
Generally, you may make additional contributions at any time. You may do so in
single sum amounts, on a regular basis, or as your financial situation permits.
- --------------------------------------------------------------------------------
Generally our "business day" is any day on which Equitable Life is open and the
New York Stock Exchange is open for trading. We may, however, close due to
emergency conditions.
- --------------------------------------------------------------------------------
SECTION 1035 EXCHANGES
You may apply the value of an existing nonqualified deferred annuity contract
(or life insurance or endowment contract) to purchase an NQ contract in a
tax-free exchange if you follow certain procedures as shown in the form that we
require you to use. Also see "Tax information" later in this prospectus.
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option and the fixed maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. Listed below
are the currently available portfolios, their investment objectives, and their
advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options.
- --------------------------------------------------------------------------------
<PAGE>
- -----
22
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
PORTFOLIOS OF EQ ADVISORS TRUST
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQ/Aggressive Stock Long-term growth of capital Alliance Capital Management L.P.,
Massachusetts Financial Services Company
Alliance Common Stock Long-term growth of capital and increasing Alliance Capital Management L.P.
income
Alliance Conservative Investors High total return without, in the adviser's Alliance Capital Management L.P.
opinion, undue risk to principal
Alliance Equity Index Total return (before EQ Advisors Trust and Alliance Capital Management L.P.
Separate Account A annual expenses) that
approximates the total return performance of
the Standard & Poor's 500 Composite Stock
Price Index
Alliance Global Long-term growth of capital Alliance Capital Management L.P.
Alliance Growth and Income High total return through a combination of Alliance Capital Management L.P.
current income and capital appreciation
Alliance Growth Investors High total return consistent with the Alliance Capital Management L.P.
adviser's determination of reasonable risk
Alliance High Yield High return by maximizing current income and, Alliance Capital Management L.P.
to the extent consistent with that objective,
capital appreciation
Alliance Intermediate High current income consistent with relative Alliance Capital Management L.P.
Government Securities stability of principal
Alliance International Long-term growth of capital Alliance Capital Management L.P.
Alliance Money Market High level of current income while preserving Alliance Capital Management L.P.
assets and maintaining liquidity
EQ/Alliance Premier Growth Long-term growth of capital Alliance Capital Management L.P.
Alliance Quality Bond High current income consistent with Alliance Capital Management L.P.
preservation of capital
Alliance Small Cap Growth Long-term growth of capital Alliance Capital Management L.P.
EQ/Alliance Technology Long-term growth of capital Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
23
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
PORTFOLIOS OF EQ ADVISORS TRUST (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQ/Balanced High return through a combination of current Alliance Capital Management L.P.
income and capital appreciation Capital Guardian Trust Company
Prudential Investment Fund
Management, LLC
Jennison Associates, LLC
Capital Guardian Research Long-term growth of capital Capital Guardian Trust Company
Capital Guardian U.S. Equity Long-term growth of capital Capital Guardian Trust Company
EQ/Evergreen Long-term growth of capital Evergreen Asset Management Corp.
EQ/Evergreen Foundation In order of priority, reasonable income, Evergreen Asset Management Corp.
conservation of capital, and capital appreciation
MFS Emerging Growth Long-term capital growth Massachusetts Financial Services Company
Companies
MFS Growth with Income Reasonable current income and long-term Massachusetts Financial Services Company
growth of capital and income
MFS Research Long-term growth of capital and future income Massachusetts Financial Services Company
Mercury Basic Value Equity Capital appreciation and, secondarily, income Mercury Asset Management US
Mercury World Strategy High total investment return Mercury Asset Management US
Morgan Stanley Emerging Long-term capital appreciation Morgan Stanley Asset Management
Markets Equity
EQ/Putnam Balanced Balanced investment Putnam Investment Management, Inc.
EQ/Putnam Growth & Income Capital growth, current income is a secondary Putnam Investment Management, Inc.
Value objective
T. Rowe Price Equity Income Substantial dividend income and also capital T. Rowe Price Associates, Inc.
appreciation
T. Rowe Price International Long-term growth of capital Rowe Price-Fleming International, Inc.
Stock
Warburg Pincus Small Company Long-term capital appreciation Warburg Pincus Asset Management, Inc.
Value
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ----------
24
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
Other important information about the portfolios is included in the prospectus
for EQ Advisors Trust attached at the end of this
prospectus.
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information."
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period.
Therefore, different interest rates may apply to different amounts in the
guaranteed interest option.
We credit interest daily to amounts in the guaranteed interest option. There are
three levels of interest in effect at the same time in the guaranteed interest
option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. All interest rates are effective annual rates, but
before deduction of annual administrative charges or any withdrawal charges.
The minimum yearly guaranteed interest rate is 4% for 2000. The yearly rates we
set will never be less than the minimum guaranteed interest rate of 3% for the
life of the contract. Current interest rates will never be less than the yearly
guaranteed interest rate.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. You can allocate your contributions to one or more of these fixed
maturity options. However, you may not allocate more than one contribution to
any one fixed maturity option. Your contributions will accumulate interest at
the "rate to maturity" for each fixed maturity option. The total amount you
allocate to and accumulate in each fixed maturity option is called the "fixed
maturity amount."
The fixed maturity options are not available in contracts issued in Maryland.
For contracts issued in New York see "Charges and expenses" for information on
withdrawal charges when amounts are allocated to the fixed maturity options.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution. If you make any withdrawals or
transfers from a fixed maturity option before the maturity date, we will make a
"market value adjustment" that may increase or decrease any fixed maturity
amount you have left in that fixed maturity option. We discuss the market value
adjustment below and in greater detail later in this prospectus in "More
information."
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution. This is the fixed maturity option's "maturity
value." Before maturity, the current value we will report for your fixed
maturity amount will reflect a market value adjustment. Your current value will
reflect the market value adjustment that we would make if you were to withdraw
all of your fixed maturity amounts on the date of the report. We call this your
"market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on June 15th for each of the maturity years 2001 through 2010.
Not all of these fixed maturity options will be available for annuitants ages 76
and older. See "Allocating your
<PAGE>
- ----------
25
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
contributions" below. As fixed maturity options expire, we expect to add
maturity years so that generally 10 fixed maturity options are available at any
time.
We will not accept allocations to a fixed maturity option if on the date the
contribution is to be applied:
o you previously allocated a contribution or made a transfer to the same
fixed maturity option; or
o the rate to maturity is 3% or less; or
o the fixed maturity option's maturity date is within the current calendar
year; or
o the fixed maturity option's maturity date is later than the date annuity
payments are to begin.
YOUR CHOICES AT THE MATURITY DATE. We will notify you at least 45 days before
each of your fixed maturity options is scheduled to mature. At that time, you
may choose to have one of the following take place on the maturity date, as
long as none of the conditions listed above or in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
or into any of the variable investment options; or
(b) withdraw the maturity value (there may be a withdrawal charge).
Currently, we do not receive your choice on or before the fixed maturity
option's maturity date, we will automatically transfer your maturity value
into the Alliance Money Market option, or another investment option if we are
required to do so by any state regulation or we change our procedures in the
future. Such a case is the State of New York where a different rule applies.
See "Contracts issued in New York - fixed maturity options."
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender or termination of your contract, or when we make deductions for
charges) from a fixed maturity option before it matures we will make a market
value adjustment, which will increase or decrease any fixed maturity amount
you have in that fixed maturity option. The amount of the adjustment will
depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly
reduce your value in the fixed maturity options, particularly in the fixed
maturity options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later
in this prospectus. Appendix II to this prospectus provides an example of how
the market value adjustment is calculated.
SELECTING YOUR INVESTMENT METHOD
You must choose one of the following methods for selecting your investment
options:
o MAXIMUM INVESTMENT OPTIONS CHOICE. Under this method you may allocate
contributions or transfer funds to any of the available investment options
listed in A and B in the investment options chart. You can make transfers
whenever you choose. However, there will be restrictions on the amount you
can transfer out of the guaranteed interest option listed in A.
<PAGE>
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26
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
o MAXIMUM TRANSFER FLEXIBILITY. Under this method you may allocate
contributions or transfer funds to any of the available investment options
listed in A in the investment options chart and no transfer restrictions
will apply.
o TEMPORARY REMOVAL OF TRANSFER RESTRICTIONS THAT APPLY TO THE INVESTMENT
METHODS. From time to time we may remove certain restrictions that apply to
your investment method. If we do so we will tell you. We will also tell you at
least 45 days in advance of the day that we intend to reimpose the transfer
restrictions. When we reimpose the transfer restrictions that apply to your
investment method, amounts that are in any investment options that are not
available under your investment method can remain in these options, but you
will not be permitted to allocate new contributions or make additional
transfers (including through our rebalancing program) into these options.
- --------------------------------------------------------------------------------
INVESTMENT OPTIONS
A
- --------------------------------------------------------------------------------
o Guaranteed Interest Option
- --------------------------------------------------------------------------------
DOMESTIC STOCKS INTERNATIONAL STOCKS
- --------------------------------------------------------------------------------
o EQ/Aggressive Stock o Alliance Global
o Alliance Common Stock o Alliance International
o Alliance Equity Index o Morgan Stanley Emerging
o Alliance Growth and Income Markets Equity
o EQ/Alliance Premier Growth o T. Rowe Price International
o Alliance Small Cap Growth Stock
o EQ/Alliance Technology
o Capital Guardian Research
o Capital Guardian U.S. Equity
o EQ/Evergreen
o MFS Emerging Growth
Companies
o MFS Growth with Income
o MFS Research
o Mercury Basic Value Equity
o EQ/Putnam Growth & Income
Value
o T. Rowe Price Equity Income
o Warburg Pincus Small
Company Value
- --------------------------------------------------------------------------------
BALANCED/HYBRID
- --------------------------------------------------------------------------------
o Alliance Growth Investors
o EQ/Balanced
o EQ/Evergreen Foundation
o Mercury World Strategy
o EQ/Putnam Balanced
- --------------------------------------------------------------------------------
B
- --------------------------------------------------------------------------------
FIXED INCOME BALANCED/HYBRID
- --------------------------------------------------------------------------------
o Alliance High Yield o Alliance Conservative
o Alliance Intermediate Investors
Government Securities
o Alliance Money Market
o Alliance Quality Bond
- --------------------------------------------------------------------------------
FIXED MATURITY OPTIONS
- --------------------------------------------------------------------------------
Transfer restrictions apply as indicated above under "Fixed maturity options and
maturity dates."
- --------------------------------------------------------------------------------
o PRINCIPAL ASSURANCE ALLOCATION
Under this allocation program, you select a fixed maturity option. We specify
the portion of your initial contribution to be allocated to that fixed maturity
option in an amount that will cause the maturity value to equal the amount of
your entire initial contribution on the fixed maturity option's maturity date.
The maturity date you select generally may not be later than 10 years, or
earlier than 6 years from your
<PAGE>
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27
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
contract date. You allocate the rest of your contribution to the variable
investment options however you choose.
For example, if your initial contribution is $10,000, and on March 1, 2000 you
chose the fixed maturity option with a maturity date of June 15, 2009, since the
rate to maturity was 6.45% on March 1, 2000, we would have allocated $5,596 to
that fixed maturity option and the balance to your choice of variable investment
options. On the maturity date your value in the fixed maturity option would be
$10,000.
The principal assurance allocation is only available for annuitant ages 75 or
younger when the contract is issued. If you are purchasing an Equitable Life
traditional IRA or QP IRA contract, before you select a maturity year that would
extend beyond the year in which you will reach age 70 1/2, you should consider
whether your value in the variable investment options, or your other traditional
IRA funds are sufficient to meet your required minimum distributions. See "Tax
information."
ALLOCATING YOUR CONTRIBUTIONS
Once you have made your investment method choice, you may allocate your
contributions to one or more, or all, of the investment options that you have
chosen, subject to any restrictions under the investment method you chose.
However, you may not allocate more than one contribution to any one fixed
maturity option. Allocations must be in whole percentages and you may change
your allocation percentages at any time. However, the total of your allocations
must equal 100%. Once your contributions are allocated to the investment options
they become part of your account value. We discuss account value in "Determining
your contract's value." After your contract is issued, you may request that we
add or eliminate any variable investment options that result in transfer
restrictions. We reserve the right to deny your request. See "Transferring your
money among investment options."
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it to
us for a refund. To exercise this cancellation right you must mail the contract
directly to our processing office within 10 days after you receive it. If state
law requires, this "free look" period may be longer.
For contributions allocated to the variable investment options, your refund will
equal your contributions, reflecting any investment gain or loss that also
reflects the daily charges we deduct. For contributions allocated to the
guaranteed interest option, your refund will equal the amount of the
contributions but will not include interest. For contributions allocated to the
fixed maturity options, your refund will equal the amount of the contribution
allocated to the fixed maturity options reflecting any positive or negative
market value adjustments. Some states require that we refund the full amount of
your contribution (not including any investment gain or loss, interest, or
market value adjustment). For IRA contracts returned to us within seven days
after you receive it, we are required to refund the full amount of your
contribution.
We may require that you wait six months before you apply for a contract with us
again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" for possible consequences of cancelling your
contract.
In addition to the cancellation right described above, if you fully or partially
convert an existing Traditional IRA contract to a Roth IRA contract, you may
cancel your Roth IRA contract and return to a Traditional IRA contract. Our
processing office, or your financial professional, can provide you with the
cancellation instructions. Ask for the form entitled "EQUI-VEST Roth IRA
Re-Characterization Form."
DEATH BENEFIT
Your contract provides a death benefit. The death benefit is equal to (i) your
account value, or (ii) the "minimum death benefit" or, if elected, (iii) the
ratcheted death benefit, whichever provides the highest amount. The minimum
death benefit is equal to your total contributions, less withdrawals and any
withdrawal charges, and any taxes that apply.
<PAGE>
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28
CONTRACT FEATURES AND BENEFITS
- --------------------------------------------------------------------------------
RATCHETED DEATH BENEFIT
For an additional fee you may elect the ratcheted death benefit. On the contract
date, your ratcheted death benefit equals your initial contribution. Then, on
each third contract date anniversary, until the annuitant is age 90, we will
determine your ratcheted death benefit by comparing your current ratcheted death
benefit to your account value on that third contract date anniversary. If your
account value is higher than your ratcheted death benefit, we will increase your
ratcheted death benefit to equal your account value. On the other hand, if your
account value on the third contract date anniversary is less than your ratcheted
death benefit, we will not adjust your ratcheted death benefit either up or
down.
If you make additional contributions, we will increase your current ratcheted
death benefit by the dollar amount of the contribution on the date the
contribution is allocated to your investment options. If you take a withdrawal
from your contract, we will adjust your death benefit on the date you take the
withdrawal.
Each withdrawal you make will reduce the amount of your current ratcheted death
benefit on a pro rata basis. Reduction on a pro rata basis means that we
calculate the percentage of your current account value that is being withdrawn
and we reduce your current ratcheted death benefit by that same percentage. For
example, if your account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If your ratcheted death benefit was $40,000
before the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your
new ratcheted death benefit after the withdrawal would be $24,000 ($40,000 -
$16,000). You may only elect the ratcheted death benefit at the time you apply
for a contract if the annuitant is less than age 87 when the contract is issued.
Once you elect this benefit, you may not cancel it as long as the contract is in
effect.
See Appendix III for an example of how we calculate the death benefit.
<PAGE>
2
DETERMINING YOUR CONTRACT'S VALUE
- ----------------
29
DETERMINING YOUR CONTRACT'S VALUE
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the: (i) values you have in the variable
investment options; (ii) guaranteed interest option; and (iii) market adjusted
amounts you have in the fixed maturity options. These amounts are subject to
certain fees and charges discussed under "Charges and expenses."
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value less (i) any
withdrawal charge that may apply and (ii) the total amount or a pro rata portion
of the annual administrative charge. Please see "Surrendering your contract to
receive its cash value" in "Accessing your money."
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
The unit value for each variable investment option depends on the investment
performance of that option minus daily charges for mortality and expense risks
and other expenses. On any day, your value in any variable investment option
equals the number of units credited to that option, adjusted for any units
deducted from your contract under that option, multiplied by that day's value
for one unit. The number of your contract units in any variable investment
option does not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); or
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of a variable investment option.
In addition, when we deduct the annual administrative charge, third-party
transfer or exchange charge, or the ratcheted death benefit charge, will reduce
the number of units credited to your contract. A description of how unit values
are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals and
transfers out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date is
the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value.
<PAGE>
3
TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
- ----------------
30
TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer some
or all of your account value among the investment options, subject to the
following:
o You must transfer at least $300 of account value or, if less, the entire
amount in the investment option. We may waive the $300 requirement.
o You may not transfer to a fixed maturity option in which you already have
value.
o You may not transfer to a fixed maturity option if its maturity date is
later than the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date the transfer may cause a market value adjustment.
o If you choose the maximum investment options choice method for selecting
investment options, the maximum amount you may transfer in any contract
year from the guaranteed interest option to any other investment option is
(a) 25% of the amount you had in the guaranteed interest option on the
last day of the prior contract year or, if greater, (b) the total of all
amounts you transferred from the guaranteed interest option to any other
investment option in the prior contract year.
If you transfer money from another financial institution into the guaranteed
interest option during your first contract year, and if you have selected
maximum investment options choice, you may, during the balance of that
contract year, transfer up to 25% of such initial guaranteed interest option
balance to any other investment option.
Subject to the terms of your contract, upon advance notice, we may change or
establish additional restrictions on transfers among the investment options. A
transfer request does not change your percentages for allocating current or
future contributions among the investment options.
You may request a transfer in writing or by telephone using TOPS. (We
anticipate that transfers will be available through EQAccess by the end of
2000.) You must send in all signed written requests directly to our processing
office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts to be transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
MARKET TIMING
You should note that the product is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in
market timing, making programmed transfers, frequent transfers or transfers
that are large in relation to the total assets of the underlying mutual fund
portfolio. Market timing strategies are disruptive to the underlying mutual
fund portfolios in which the variable investment options invest. If we
determine that your transfer patterns among the variable investment options
reflect a market timing strategy, we reserve the right to take action
including, but not limited to: restricting the availability of transfers
through telephone requests, facsimile transmissions, automated telephone
services, Internet services or any electronic transfer services. We may also
refuse to act on transfer instructions of an agent acting under a power of
attorney who is acting on behalf of more than one owner.
AUTOMATIC TRANSFER OPTIONS INVESTMENT SIMPLIFIER
You may choose from two automatic options for transferring amounts from the
guaranteed interest option to the variable investment options. The transfer
options are the "fixed-dollar option" and the "interest sweep." You may select
one or the other, but not both.
FIXED-DOLLAR OPTION. Under this option you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment
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31
TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
options of your choice on a monthly basis. You can specify the number of
monthly transfers or instruct us to continue to make monthly transfers until
all available amounts in the guaranteed interest option have been transferred
out.
In order to elect the fixed-dollar option you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at
our processing office. You also must elect to transfer at least $50 per month.
The fixed-dollar option is subject to the guaranteed interest option transfer
limitation described above.
The fixed-dollar option is a form of dollar-cost averaging. Dollar-cost
averaging allows you to gradually allocate amounts to the variable investment
options by periodically transferring approximately the same dollar amount to
the variable investment options you select. This will cause you to purchase
more units if the unit's value is low and fewer units if the unit's value is
high. Therefore, you may get a lower average cost per unit over the long term.
This plan of investing, however, does not guarantee that you will earn a
profit or be protected against losses.
INTEREST SWEEP. Under the interest sweep, we will make transfers on a monthly
basis from amounts in the guaranteed interest option. The amount we will
transfer will be the interest credited to amounts you have in the guaranteed
interest option from the last business day of the prior month to the last
business day of the current month. You must have at least $7,500 in the
guaranteed interest option on the date we receive your election and on the
last business day of each month thereafter to participate in the interest
sweep option.
WHEN YOUR PARTICIPATION IN AN AUTOMATIC TRANSFER OPTION WILL END. Your
participation in an automatic transfer option will end:
o Under the fixed-dollar option, when either the number of designated monthly
transfers have been completed or the amount you have available in the
guaranteed interest option has been transferred out.
o Under the interest sweep, when the amount you have in the guaranteed
interest option falls below $7,500 (determined on the last business day of
the month) for two months in a row.
o Under either option, on the date we receive at our processing office, your
written request to cancel automatic transfers, or on the date your
contract terminates.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually).
While your rebalancing program is in effect, we will transfer amounts among
each variable investment option so that the percentage of your account value
that you specify is invested in each option at the end of each rebalancing
date. Your entire account value in the variable investment options must be
included in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional
and/or financial adviser before electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. To be eligible, you must
have at least $5,000 of account value in the variable investment options.
Rebalancing is not available for amounts you have allocated in the guaranteed
interest option or in the fixed maturity options.
You may change your allocation instructions or cancel the program at any time.
<PAGE>
4
ACCESSING YOUR MONEY
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32
ACCESSING YOUR MONEY
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. For the tax consequences of taking
withdrawals, see "Tax information."
- ------------------------------------------------------------------
METHOD OF WITHDRAWAL
---------------------------------------------
MINIMUM
CONTRACT LUMP SUM SYSTEMATIC DISTRIBUTION
- ------------------ ------------ -------------- -------------
NQ Yes Yes No
Traditional IRA Yes Yes Yes
QP IRA Yes Yes Yes
Roth IRA Yes Yes No
- ------------------------------------------------------------------
LUMP SUM WITHDRAWALS
(All Contracts)
You may take lump sum withdrawals from your account value at any time while
the annuitant is living and before annuity payments begin. The minimum amount
you may withdraw at any time is $300. If you request a withdrawal that leaves
your account value less than $500, we may treat it as a request to surrender
the contract for its cash value. See "Surrendering your contract to receive
its cash value" below.
Lump sum withdrawals in excess of the 15% free withdrawal amount may be
subject to a withdrawal charge.
SYSTEMATIC WITHDRAWALS
(All Contracts)
You may take systematic withdrawals if you have at least $20,000 of account
value in the variable investment options and the guaranteed interest option.
You may take systematic withdrawals on a monthly or quarterly basis. The
minimum amount you may take for each withdrawal is $250.
We will make the withdrawals on any day of the month that you select as long
as it is not later than the 28th day of the month. If you do not select a
date, your withdrawals will be made on the first day of the month. A check for
the amount of the withdrawal will be mailed to you or, if you prefer, we will
electronically transfer the money to your checking account.
You may withdraw either the amount of interest earned in the guaranteed
interest option or a fixed-dollar amount from either the variable investment
options or the guaranteed interest option. If you elect the interest option, a
minimum of $20,000 must be maintained in the guaranteed interest option. If
you elect the fixed-dollar option you do not have to maintain a minimum
amount. You may elect to have the amount of the withdrawal subtracted from
your account value in one of three ways:
(1) pro rata from more than one variable investment option (without using up
your total value in those options); or
(2) pro rata from more than one variable investment option (until your value
in those options is used up); or
(3) you may specify a dollar amount from only one variable investment option.
You can cancel the systematic withdrawal option at any time.
Amounts withdrawn in excess of the 15% free withdrawal amount may be subject
to a withdrawal charge.
MINIMUM DISTRIBUTION WITHDRAWALS
(Traditional IRA and QP IRA contracts - See "Tax information")
We offer the minimum distribution withdrawal option to help you meet lifetime
required minimum distributions under federal income tax rules. You may elect
this option in the year in which you reach age 70 1/2 and have account value
in the variable investment options and the guaranteed interest option of at
least $2,000. The minimum amount we will pay out is $300, or if less, your
account value. If your account value is less than $500 after the withdrawal,
we may terminate your contract and pay you its cash value. You may elect the
method you want us to use to calculate your minimum distribution withdrawal
from the choices we offer. Currently, minimum distribution withdrawal payments
will be made annually. We will calculate your payment each year
<PAGE>
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33
ACCESSING YOUR MONEY
based on your account value at the end of each prior calendar year, based on the
method you choose.
- --------------------------------------------------------------------------------
We will send to Traditional IRA and QP IRA owners a form outlining the minimum
distribution options available in the year you reach age 70 1/2 (if you have
not begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your values in the variable investment options and the guaranteed
interest option. If there is insufficient value or no value in the variable
investment options and the guaranteed investment option, any additional amount
of the withdrawal required or the total amount of the withdrawal will be
withdrawn from the fixed maturity options in order of the earliest maturity
date(s). A market value adjustment may apply if withdrawals are from the fixed
maturity options.
AUTOMATIC DEPOSIT SERVICE
If you are receiving required minimum distribution payments from a Traditional
IRA or QP IRA contract you may use our automatic deposit service.
Under this service we will automatically deposit the required minimum
distribution payment from your Traditional IRA or QP IRA contract directly
into an existing EQUI-VEST NQ or Roth IRA or an existing EQUI-VEST Express NQ
or Roth IRA contract according to your allocation instructions. Please note
that you must have compensation to make regular contributions to Roth IRAs.
See "Tax information."
DEPOSIT OPTION FOR NQ CONTRACTS ONLY
You can elect the deposit option for your benefit while you live, or for the
benefit of your beneficiary.
Proceeds from your NQ contract can be deposited with us for a period you
select (including one for as long as the annuitant lives). We will hold the
amounts in our general account. We will credit interest on the amounts at a
guaranteed rate for the specified period. We will pay out the interest on the
amount deposited at least once each year.
If you elect this option for your benefit, you deposit the amount with us that
you would otherwise apply to an annuity payout option. If you elect this
option for your beneficiary before the annuitant's death, death benefit
proceeds can be left on deposit with us subject to certain restrictions,
instead of being paid out to the beneficiary.
Other restrictions apply to the deposit option. Your financial professional
can provide more information about this option, or you may call our processing
office.
SURRENDER OF YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while
the annuitant is living and before you begin to receive annuity payments. For
a surrender to be effective, we must receive your written request and your
contract at our processing office. We will determine your cash value on the
date we receive the required information. All benefits under the contract will
terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
We will usually pay the cash value within seven calendar days, but we may
delay payment as described in "When to expect payments" below. For the tax
consequences of surrenders, see "Tax information."
TERMINATION
We may terminate your contract and pay you the cash value if:
(1) your account value is less than $500 and you have not made contributions
to your contract for a period of three years; or
(2) you request a lump sum withdrawal that reduces your account value to an
amount less than $500; or
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34
ACCESSING YOUR MONEY
- --------------------------------------------------------------------------------
(3) you have not made any contributions within 120 days from your contract
date.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable
investment options within seven calendar days after the date of the
transaction to which the request relates. These transactions may include
applying proceeds to a variable annuity payout option, payment of a death
benefit, payment of any amount you withdraw (less any withdrawal charge) and,
upon surrender or termination, payment of the cash value. We may postpone such
payments or applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your values in the guaranteed interest
option and the fixed maturity options (other than for death benefits) for up
to six months while you are living. We also may defer payments for a
reasonable amount of time (not to exceed 15 days) while we are waiting for a
contribution check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
EQUI-VEST offers you several choices of annuity payout options. Some enable
you to receive fixed annuity payments, and others enable you to receive
variable annuity payments.
You can choose from among the annuity payout options listed below.
Restrictions may apply, depending on the type of contract you own or the
annuitant's age at contract issue.
ANNUITY PAYOUT OPTIONS
You choose from among the following annuity payout options:
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable annuity payout options Life annuity (not available
in New York)
Life annuity with period
certain
- --------------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of
a selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy or the joint life
expectancy of you and your spouse. A life annuity with a period certain is
the form of annuity under the contracts that you will receive if you do
not elect a different payout option. In this case, the period certain will
be based on the annuitant's age and will not exceed 10 years or the
annuitant's life expectancy.
o Life annuity with refund certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
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ACCESSING YOUR MONEY
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beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guarantee period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. Currently, this payout option is available only as a fixed
annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death,
payments continue to the survivor. We may offer other payout options not
outlined here. Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTION
With fixed annuities, we guarantee fixed annuity payments that will be based
either on the tables of guaranteed annuity payments in your contract or on our
then current annuity rates, whichever is more favorable for you.
VARIABLE ANNUITY PAYOUT OPTIONS
Variable annuities may be funded through your choice of variable investment
options investing in portfolios of EQ Advisors Trust. The contract also offers
a fixed annuity payout option that can be elected in combination with the
variable annuity payout options. The amount of each variable annuity payment
will fluctuate, depending upon the performance of the variable investment
options, and whether the actual rate of investment return is higher or lower
than an assumed base rate. Please see "Annuity unit values" in the SAI.
We also make the variable annuity payout options available to owners of our
single premium deferred annuity ("SPDA") contract and certain other
combination fixed and variable annuity contracts. Such contractholders who are
considering purchasing a variable payout option should also review the
information in this prospectus relating to the variable investment options. EQ
Advisors Trust prospectus (directly following this prospectus), and the
sections of the SAI which discuss the variable annuity payout option should
also be reviewed.
We may offer other payout options not outlined here. Your financial
professional can provide details.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written
agreement confirming your right to receive annuity payments. We require you to
return your contract before annuity payments begin. Unless you choose a
different payout option, we will pay annuity payments under a life annuity
with a period certain of 10 years. You choose whether these payments will be
fixed or variable. The contract owner and annuitant must meet the issue age
and payment requirements.
You can choose the date annuity payments are to begin. You can change the date
your annuity payments are to begin anytime before that date as long as you do
not choose a date later than the 28th day of any month. Also, that date may
not be later than:
(i) if the annuitant was not older than age 83 when the contract was issued,
the contract date anniversary that follows the annuitant's 90th birthday;
(ii) if the annuitant was age 84 but not older than age 88 when the contract
was issued the annuitant's age at issue plus six years; and
(iii) if the annuitant was age 89 or 90 when the contract was issued, age 95.
(iv) for contracts issued in New York, by the annuitant's 90th birthday.
The above may be different in some states.
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Before the last date by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments have
begun, no change can be made other than transfers (if permitted in the future)
among the variable investment options if a variable annuity is selected.
The amount of the annuity payments will depend on:
(1) the amount applied to purchase the annuity;
(2) the type of annuity chosen, and whether it is fixed or variable. If you
choose a variable annuity, we use an assumed base rate of 5% to calculate
the level of payments. However, in states where that rate is not permitted
the assumed base rate will be 3 1/2%. We provide information about the
assumed base rate in the SAI;
(3) in the case of a life annuity, the annuitant's age (or the annuitant's and
joint annuitant's ages); and
(4) in certain instances, the sex of the annuitant(s).
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less than
$2,000 or the initial payment under the form elected is less than $20 monthly,
we reserve the right to pay the account value in a single sum rather than as
payments under the payout option chosen.
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CHARGES AND EXPENSES
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CHARGES THAT EQUITABLE LIFE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o A charge for other expenses
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On the last day of the contract year - an annual administrative charge, if
applicable
o Charge for third-party transfer or exchange
o At the time you make certain withdrawals or surrender your contract, or
your contract is terminated - a withdrawal charge
o A ratcheted death benefit charge, if you elect the
benefit
o At the time annuity payments are to begin - charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your
state. An annuity administrative fee may also apply.
More information about these charges appears below.
We will not increase these charges for the life of your contract, except as
noted. We may reduce certain charges under group or sponsored arrangements.
See "Group or sponsored arrangements" below.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment
option to compensate us for mortality and expense risks, including the death
benefit. The daily charge is equivalent to a current annual rate of 0.95% of
the net assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity benefits than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. We may
change the actuarial basis for our guaranteed annuity payment tables, but only
for new contributions and only at five year intervals from the contract date.
Lastly, we assume a mortality risk to the extent that at the time of death,
the guaranteed death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
To the extent that the mortality and expense risk charges are not needed to
cover the actual expenses incurred, they may be considered an indirect
reimbursement for certain sales and promotional expenses relating to the
contracts.
CHARGE FOR OTHER EXPENSES
We deduct this daily charge from the net assets in each variable investment
option. This charge, together with the annual administrative charge described
below, is for providing administrative and financial accounting services under
the contracts. The daily charge is equivalent to a maximum annual rate of
0.25% of net assets in each variable investment option.
TOTAL MAXIMUM SEPARATE ACCOUNT A CHARGES. The total annual rate for Separate
Account A charges is 1.20%. We may increase or decrease this total annual rate,
but we may not increase it above a maximum rate of 2.00%. Any increase will
apply only after the date of the change. Any changes we make will reflect
differences in costs and anticipated expenses, and will not be unfairly
discriminatory.
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CHARGES AND EXPENSES
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ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on the last day of
each contract year. We will deduct a pro rata portion of the charge if you
surrender your contract, elect an annuity payout option, or the annuitant dies
during the contract year. We deduct the charge if your account value on the
last business day of the contract year, is less than $25,000 under NQ
contracts and $20,000 under IRA and contracts. If your account value on such
date is $25,000 or more for NQ ($20,000 or more for IRA) contracts, we do not
deduct the charge. During the first two contract years, the charge is equal to
$30 or, if less, 2% of your current account value. The charge is $30 for
contract years three and later.
The charge is deducted pro rata from the variable investment options and the
guaranteed interest option. If those amounts are insufficient, we will make up
the required amounts from the fixed maturity options to the extent you have
value in those options, unless you tell us otherwise.
We may increase this charge if our administrative costs rise, but the charge
will never exceed $65 annually. We reserve the right to deduct this charge on
a quarterly, rather than annual basis.
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE
We impose a charge for making a direct transfer of amounts from your contract
to a third party, such as in the case of a trustee-to-trustee transfer for an
IRA contract, or if you request that your contract be exchanged for a contract
issued by another insurance company. In either case, we will deduct from your
account value any withdrawal charge that applies and a charge of $25 for each
direct transfer or exchange. We reserve the right to increase this charge to a
maximum of $65.
WITHDRAWAL CHARGE
A withdrawal charge may apply in three circumstances: (1) you make one or more
withdrawals during a contract year; (2) you surrender your contract to receive
its cash value; or (3) we terminate your contract. The amount of the charge
will depend on whether the free withdrawal amount applies, and the
availability of one or more exceptions.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the amount of the withdrawal charge
from your account value. Any amount deducted to pay withdrawal charges is also
subject to a withdrawal charge. We deduct the withdrawal amount and the
withdrawal charge pro rata from the variable investment options and the
guaranteed interest option. If those amounts are insufficient, we will make up
the required amounts from the fixed maturity options in order of the earliest
maturities date(s). If we deduct all or a portion of the withdrawal charge
from the fixed maturity options, a market value adjustment may apply. See
"About our fixed maturity options" in "More information."
The amount of the withdrawal charge we deduct is equal to 6% of any
contribution withdrawn within six years of the date of the contribution. In
the case of surrenders, we will pay you the greater of (i) the account value
after any withdrawal charge has been imposed (cash value), or (ii) the free
withdrawal amount plus 94% of the remaining account value.
For purposes of calculating the withdrawal charge, amounts withdrawn up to the
free withdrawal amount are not considered a withdrawal of any contribution. We
also treat contributions that have been invested the longest as being withdrawn
first. We treat contributions as withdrawn before earnings for purposes of
calculating the withdrawal charge. However, the federal income tax rules treat
earnings under most NQ contracts as withdrawn first. See "Tax information."
Please note that you may incur a withdrawal charge if your contract was issued
in New York and your annuitant was age 84 or 85 at issue because you must accept
distribution of your cash value beginning with the contract anniversary
following the annuitant's 90th birthday.
We reserve the right to change the amount of the withdrawal charge, but it
will not exceed 6% of the contributions withdrawn.
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Any change would not be unfairly discriminatory. We may also reduce the
withdrawal charge in order to comply with any state law requirement. See
"Contracts issued in New York - fixed maturity options" below.
For annuitants that are ages 84 and 85 when the contract is issued in
Pennsylvania (when available in that state), no withdrawal charge will apply.
The withdrawal charge does not apply in the circumstances described below.
ANNUITANT AGES 86 THROUGH 90 WHEN THE CONTRACT IS ISSUED. The withdrawal
charge does not apply under the contract if the annuitant is age 86 or older
when the contract is issued.
15% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 15% of
your account value without paying a withdrawal charge. The 15% free withdrawal
amount is determined using your account value at the time you request a
withdrawal, minus any other withdrawals made during the contract year.
DEATH OR PURCHASE OF ANNUITY. The withdrawal charge does not apply if:
o the annuitant dies and a death benefit is payable to the beneficiary.
o we receive a properly completed election form providing for the account
value to be used to buy a life contingent annuity or a non-life annuity
with a period certain for a term of at least ten years.
DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal
charge also does not apply if:
o The annuitant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration; or
o We receive proof satisfactory to us (including certification by a licensed
physician) that the annuitant's life expectancy is six months or less; or
o The annuitant has been confined to a nursing home for more than 90 days (or
such other period, as required in your state) as verified by a licensed
physician. A nursing home for this purpose means one that is (a) approved
by Medicare as a provider of skilled nursing care service, or (b) licensed
as a skilled nursing home by the state or territory in which it is located
(it must be within the United States, Puerto Rico, U.S. Virgin Islands, or
Guam) and meets all of the following:
- its main function is to provide skilled, intermediate, or custodial
nursing care;
- it provides continuous room and board to three or more persons;
- it is supervised by a registered nurse or licensed practical nurse;
- it keeps daily medical records of each patient;
- it controls and records all medications dispensed; and
- its primary service is other than to provide housing for residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the disability is caused by a
preexisting condition or a condition that began within 12 months of the
contract date. Some states may not permit us to waive the withdrawal charge in
the above circumstances, or may limit the circumstances for which the
withdrawal charge may be waived. Your financial professional can provide more
information or you may contact our processing office.
For Traditional IRA, QP IRA, and Roth IRA contracts the withdrawal charge also
does not apply:
o after six contract years and the annuitant is at least age 59 1/2; or
o if you request a refund of a contribution in excess of amounts allowed to
be contributed under the federal income tax rules within one month of the
date on which you made the contribution.
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CONTRACTS ISSUED IN NEW YORK - FIXED MATURITY OPTIONS
For contracts issued in New York, the withdrawal charge that applies to
withdrawals taken from amounts in the fixed maturity options will never exceed
6% and will be determined by applying the New York Declining Scale ("declining
scale"). If you withdraw amounts that have been transferred from one fixed
maturity option to another, we use the New York Alternative Scale ("alternative
scale") if it produces a higher charge than the declining scale.
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DECLINING SCALE ALTERNATIVE SCALE
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Year of investment in Year of transfer within
fixed maturity option* fixed maturity option*
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Within year 1 6% Within year 1 5%
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2 6% 2 4%
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3 5% 3 3%
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4 4% 4 2%
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5 3% 5 1%
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6 2% After year 5 0%
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After year 6 0% Not to exceed 1%
times the number of
years remaining in the
fixed maturity option,
rounded to the higher
number of years. In
other words, if 4.3
years remain, it would
be a 5% charge.
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* Measured from the contract date anniversary prior to the date of the
contribution or transfer.
In the following example we compare the withdrawal charge that would apply to
a withdrawal from a NQ, Traditional IRA or QP IRA contract that has an account
value of $10,000; $8,000 from a contribution made three years ago and $2,000
from positive investment performance.
o If you were to withdraw the total amount of the contribution within the
first six years after it was made the withdrawal charge that generally
applies would be $480 (6% of $8,000). However, if when you made your
contribution you allocated it to a fixed maturity option, the withdrawal
charge would be lower. According to the declining scale method described
above, the withdrawal charge would be limited to 5% of the $8,000, or $400
in the third year.
o The withdrawal charge may be different if when you made your contribution
three years ago, you allocated it to a fixed maturity option and then in
the third year, you transfer the amounts that apply to such contribution
to a new fixed maturity option. In this example we assume that there is
one year remaining in the new fixed maturity option. Because you made a
transfer among the fixed maturity options, the alternative scale may now
apply. Based on this alternative scale, a contribution that is transferred
will be subject to a 5% withdrawal charge if you withdraw that
contribution in the same year that you make the transfer. However, the
withdrawal charge may not exceed 1% for each year remaining in the new
fixed maturity option. Since, in this example, the time remaining in the
new fixed maturity option is one year, the withdrawal charge under the
alternative scale would be limited to 1%. Because New York regulations
permit us to use the greater of the declining scale or the alternative
scale, the withdrawal charge would be 5%, or $400, based on the declining
scale.
o The withdrawal charge may not exceed the charge that would normally apply
under the contract. Use of a New York scale can only result in a lower
charge. If your contribution has been in the contract for more than six
years and therefore would not have a withdrawal charge associated with it,
no withdrawal charge would apply.
o If you take a withdrawal from an investment option other than the fixed
maturity options, the amount available for withdrawal without a withdrawal
charge is reduced. It will be reduced by the amount of the contribution in
the fixed maturity options to which no withdrawal charge applies.
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CHARGES AND EXPENSES
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o As of any date on which 50% or more of your account value is held in fixed
maturity options, the free withdrawal amount is zero.
For contracts issued in New York, you should consider that on the maturity
date of a fixed maturity option if we have not received your instructions for
allocation of your maturity value, we will transfer your maturity value to the
fixed maturity option scheduled to mature next. If we are not offering other
fixed maturity options, we will transfer your maturity value to the Alliance
Money Market option.
The potential for lower withdrawal charges for withdrawals from the fixed
maturity options and the potential for a lower free withdrawal amount than
those that would normally apply, should be taken into account when deciding
whether to allocate amounts to, or transfer amounts to or from, the fixed
maturity options.
We will deduct the annual administrative charge and the withdrawal charge from
the variable investment options and the guaranteed interest option as
discussed above. If the amounts in those options are insufficient to cover the
charges, we reserve the right to deduct the charges from the fixed maturity
options. Charges deducted from the fixed maturity options are considered
withdrawals and, as such, will result in a market value adjustment.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed
on us, such as premium taxes in your state. Generally, we deduct the charge
from the amount applied to provide an annuity payout option. The current tax
charge that might be imposed varies by state and ranges from 0% to 3.5% (1% in
Puerto Rico and 5% in the U.S. Virgin Islands).
VARIABLE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of up to $350 from the amount to be applied to purchase a
variable annuity payout option.
OPTIONAL RATCHETED DEATH BENEFIT CHARGE
If you elect the optional ratcheted death benefit we deduct a charge annually
from your account value on each contract date anniversary until the annuitant
is age 90. The charge is equal to 0.15% of your account value on the contract
date anniversary.
We will deduct this charge from your investment options beginning first with
your value in the guaranteed interest option. If there is not enough value in
the guaranteed interest option we will deduct all or a portion of the charge
from your value in the variable investment options next, followed by your
value in the fixed maturity options in order of the earliest maturity date(s)
first. A market value adjustment may apply if we deduct the charge from the
fixed maturity options.
CHARGES THAT EQ ADVISORS TRUST DEDUCTS
EQ Advisors Trust deducts charges for the following types of fees and
expenses:
o Investment advisory fees ranging from 0.25% to 1.15%.
o 12b-1 fees of 0.25%.
o Operating expenses, such as trustees' fees, independent auditors' fees,
legal counsel fees, administrative service fees, custodian fees, and
liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of EQ Advisors Trust are purchased at their net asset value, these fees
and expenses are, in effect, passed on to the variable investment options and
are reflected in their unit values. For more information about these charges,
please refer to the prospectus for EQ Advisors Trust following this
prospectus.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge, or change the minimum
contribution
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CHARGES AND EXPENSES
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requirements. We also may change the minimum death benefit or offer variable
investment options that invest in shares of EQ Advisors Trust that are not
subject to the 12b-1 fee. Group arrangements include those in which a trustee
or an employer, for example, purchases contracts covering a group of
individuals on a group basis. Group arrangements are not available for
Traditional IRA and Roth IRA contracts. Sponsored arrangements include those
in which an employer allows us to sell contracts to its employees or retirees
on an individual basis.
Our costs for sales, administration, and mortality generally vary with the
size and stability of the group or sponsoring organization, among other
factors. We take all these factors into account when reducing charges. To
qualify for reduced charges, a group or sponsored arrangement must meet
certain requirements, such as requirements for size and number of years in
existence. Group or sponsored arrangements that have been set up solely to buy
contracts or that have been in existence less than six months will not qualify
for reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
the Employee Retirement Income Security Act of 1974, or both. We make no
representations with regard to the impact of these and other applicable laws
on such programs. We recommend that employers, trustees, and others purchasing
or making contracts available for purchase under such programs seek the advice
of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it will be
unfairly discriminatory.
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PAYMENT OF DEATH BENEFIT
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43
PAYMENT OF DEATH BENEFIT
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YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may
change your beneficiary at any time. The change will be effective on the date
the written request for the change is received in our processing office. We
are not responsible for any beneficiary change request that we do not receive.
We will send you a written confirmation when we receive your request.
We determine the amount of the death benefit as of the date we receive
satisfactory proof of the annuitant's death and any required instructions for
the method of payment. We describe the death benefit in "Contract features and
benefits" earlier in this prospectus.
On the date we determine the death benefit, your account value will be
deducted from the investment options. We will hold this amount in our general
account and credit it with interest at a rate not less than the rate required
by law. If you have transferred the value of another annuity contract that we
issue to your EQUI-VEST contract, the value of the other contract's minimum
death benefit calculated as of the time of the transfer will be included in
the total contributions for the purpose of calculating the minimum death
benefit.
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EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, if you
are the owner and the annuitant and your spouse is the sole primary
beneficiary the contract can be continued as follows:
SUCCESSOR OWNER AND ANNUITANT. For all contracts, your spouse can elect upon
your death to continue the contract as the owner/annuitant and no death
benefit is payable until the surviving spouse's death.
If your surviving spouse decides to continue the contract, then on the
contract date anniversary following your death, we will increase the account
value to equal your current guaranteed minimum death benefit, if it is higher
than the account value. The increase in the account value will be allocated to
the investment options according to the allocation percentages we have on file
for your contract. Thereafter, withdrawal charges will no longer apply to this
amount. Withdrawal charges will apply if you make additional contributions.
These additional contributions will be withdrawn only after all other amounts
have been withdrawn. In determining whether the guaranteed minimum death
benefit will continue to grow, we will use your surviving spouse's age (as of
the contract date anniversary).
Also, for all contracts, a beneficiary who is not a surviving spouse may be
able to have limited ownership as discussed under "Beneficiary continuation
option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death
for purposes of receiving federal tax law required distributions from the
contract. When you are not the annuitant under an NQ contract and you die
before annuity payments begin, unless you specify otherwise, we will
automatically make the beneficiary you name to receive the death benefit upon
the annuitant's death your successor owner. If you do not want this
beneficiary also to be the successor owner, you should name a specific
successor owner. You may name a successor owner at any time by sending
satisfactory notice to our processing office.
Unless the surviving spouse of the owner who has died is the successor owner
for this purpose, the entire interest in the contract must be distributed
under the following rules:
o The cash value of the contract must be fully paid to the successor owner
(new owner) by December 31st of the fifth calendar year after your death.
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new
owner's life expectancy). Payments must begin no later than December 31st
following the calendar year of the non-annuitant owner's
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PAYMENT OF DEATH BENEFIT
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death. Unless this alternative is elected, we will pay any cash value on
December 31st of the fifth calendar year following the year of your death.
If the surviving spouse is the successor owner, the spouse may elect to
continue the contract. No distributions are required as long as the surviving
spouse and annuitant
are living.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the
death benefit in a single sum. However, subject to any exceptions in the
contract, our rules and any applicable requirements under federal income tax
rules, the beneficiary may elect to apply the death benefit to one or more
annuity payout options we offer at the time. See "Your annuity payout options"
in "Accessing your money" earlier in this prospectus. Please note that an
annuity payout option chosen may not extend beyond the life expectancy of the
beneficiary.
Single sum payments generally are paid through the Equitable Life Access
Account(TM), an interest bearing account with check writing privileges. The
Equitable Life Access Account(TM) is part of Equitable Life's general account.
Beneficiaries have immediate access to the proceeds by writing a check on the
account. We pay interest from the date the single sum is deposited into the
Access Account(TM) until the account is closed.
BENEFICIARY CONTINUATION OPTION
Upon your death under a Traditional IRA, Roth IRA or QP contract, your
beneficiary may generally elect to keep the QP contract in your name and
receive distributions under the contract instead of receiving the death
benefit in a single sum. In order to elect this option, the beneficiary must
be an individual (certain trusts with only individual beneficiaries will be
treated as individuals). This election must be made 60 days following the date
we receive proof of your death. We will increase the account value to equal
the death benefit if the death benefit is greater than the account value.
Under the beneficiary continuation option:
o The contract continues in your name for the benefit of your beneficiary.
o The beneficiary may make transfers among the investment options, but no
additional contributions will be permitted.
o Any death benefit (including the racheted death benefit) provisions will no
longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges will apply. Any partial withdrawal
must be at least $300.
o Upon the death of the beneficiary, any remaining death benefit will be paid
in a lump sum to the person the beneficiary chooses.
For Traditional IRA contracts only, if you die AFTER the "Required Beginning
Date" for required minimum distributions (see "Tax information"), the contract
will continue if:
(a) You were receiving minimum distribution withdrawals from this contract;
and
(b) The pattern of minimum distribution withdrawals you chose was based in
part on the life of the designated beneficiary.
The withdrawals will then continue to be paid to the beneficiary on the same
basis as you chose before your death. We will be able to tell your beneficiary
whether this option is available. You should contact our processing office for
further information.
For all of the above contracts, If you die BEFORE the Required Beginning Date
(and, for a traditional IRA, therefore you were not taking minimum
distribution withdrawals under the contract) the beneficiary may choose one of
the following two beneficiary continuation options:
1. Payments over life expectancy period. The beneficiary can receive annual
minimum distributions based on the beneficiary's life expectancy. If there
is more than one
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beneficiary, the shortest life expectancy is used. These minimum
distributions must begin by December 31st of the calendar year following
the year of your death. In some situations, a spouse beneficiary who
elects to continue the contract in your name under the beneficiary
continuation option instead of electing successor owner annuitant status
may also choose to delay beginning these minimum distributions until the
December 31st of the calendar year in which you would have turned age
70 1/2.
2. Five Year Rule. The beneficiary can take withdrawals as desired. If the
beneficiary does not withdraw the entire account value by the December
31st of the fifth calendar year following your death, we will pay any
amounts remaining under the contract to the beneficiary by that date. If
you have more than one beneficiary, and one of them elects this option,
then all of your beneficiaries will receive this option.
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OVERVIEW
In this part of the prospectus, we discuss the current federal income tax
rules that generally apply to EQUI-VEST contracts owned by United States
taxpayers. The tax rules can differ, depending on the type of contract,
whether NQ, Traditional IRA, QP IRA, or Roth IRA. Therefore, we discuss the
tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal
Revenue Code, and Treasury Department Regulations and Internal Revenue Service
("IRS") interpretations of the Internal Revenue Code. These tax rules may
change. We cannot predict whether, when, or how these rules could change. Any
change could affect contracts purchased before the change.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may
vary depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights under the contract, or payments under the contract may be
subject to gift or estate taxes. You should not rely only on this document,
but should consult your tax adviser before your purchase.
If you are buying a contract to fund a retirement plan that already provides
tax deferral under the Internal Revenue Code you should do so for the
contract's features and benefits other than tax deferral. In such situations,
the tax deferral of the contract does not provide necessary or additional
benefits.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under securities laws);
o if you transfer a contract, for example, as a gift to someone other than
your spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation,
partnership, trust, or other non-natural person).
All nonqualified deferred annuity contracts that Equitable Life and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out
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of the contract, and (2) multiplying the result by the amount of the payment.
For variable annuity payments, your tax-free portion of each payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract,
they are taxable to you as ordinary income if there are earnings in the
contract. Generally, earnings are your account value less your investment in
the contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o The contract that is the source of the funds you are using to purchase the
NQ contract is another nonqualified deferred annuity contract (or life
insurance or endowment contract).
o The owner and the annuitant are the same under the source contract and the
EQUI-VEST NQ contract. If you are using a life insurance or endowment
contract the owner and the insured must be the same on both sides of the
exchange transaction.
The tax basis of the source contract carries over to the EQUI-VEST NQ contract.
A recent case permitted an owner to direct the proceeds of a partial
withdrawal from one nonqualified deferred annuity contract to a different
insurer to purchase a new nonqualified deferred annuity contract on a
tax-deferred basis. Special forms, agreement between the carriers, and
provision of cost basis information may be required to process this type of an
exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity
payments under
your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59 1/2 a penalty tax of 10% of
the taxable portion of your distribution applies in addition to the income
tax. The extra penalty tax does not apply to pre-age 59 1/2 distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy) or the joint lives (or joint life expectancy) of you
and a beneficiary.
OTHER INFORMATION
The Treasury Department has the authority to issue guidelines prescribing the
circumstances in which your ability to direct your investment to a particular
portfolio within a separate account may cause you, rather than the insurance
company, to be treated as the owner of the portfolio shares attributable to
your nonqualified annuity contract. In that case, income and gains
attributable to such portfolio shares
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would be included in your gross income for federal income tax purposes. Under
current rules, however, we believe that Equitable Life, and not the owner of a
nonqualified annuity contract, would be considered the owner of the portfolio
shares.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Under current law we treat income from NQ contracts as U.S. source. A Puerto
Rico resident is subject to U.S. taxation on such U.S. source income. Only
Puerto Rico source income of Puerto Rico residents is excludable from U.S.
taxation. Income from NQ contracts is also subject to Puerto Rico tax. The
calculation of the taxable portion of amounts distributed from a contract may
differ in the two jurisdictions. Therefore, you might have to file both U.S.
and Puerto Rico tax returns, showing different amounts of income from the
contract for each tax return. Puerto Rico generally provides a credit against
Puerto Rico tax for U.S. tax paid. Depending on your personal situation and
the timing of the different tax liabilities, you may not be able to take full
advantage of this credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS ("IRAS")
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets for the benefit of the IRA owner. The assets can include mutual
funds and certificates of deposit. In an individual retirement annuity, an
insurance company issues an annuity contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o "Traditional IRAs," typically funded on a pre-tax basis including SEP-IRAs
and SIMPLE-IRAs, issued and funded in connection with employer-sponsored
retirement plans. EQUI-VEST traditional IRA and QP IRA are traditional
IRAs.
o Roth IRAs, first available in 1998, funded on an after-tax basis. EQUI-VEST
Roth IRA is a Roth IRA.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments.
You can hold your IRA assets in as many different accounts and annuities as
you would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS Web site (www.irs.gov).
Equitable Life designs its traditional IRA contracts to qualify as "individual
retirement annuities" under Section 408(b) of the Internal Revenue Code. This
prospectus contains the information that the IRS requires you to have before
you purchase an IRA. This section of the prospectus covers some of the special
tax rules that apply to IRAs. The next section covers Roth IRAs. Education
IRAs are not discussed in this prospectus because they are not available in
individual retirement annuity form.
The EQUI-VEST IRA contract has been approved by the IRS as to form for use as
a traditional IRA. This IRS approval is a determination only as to the form of
the annuity. It does not represent a determination of the merits of the
annuity as an investment. The IRS approval does not address every feature
possibly available under the EQUI-VEST IRA contract. Although we do not have
IRS approval as to form, we believe that the version of ROTH IRA currently
offered complies with the requirements of the Internal Revenue Code.
CANCELLATION
You can cancel any version of the EQUI-VEST IRA contract (Traditional IRA, QP
IRA, or Roth IRA) by following the
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directions under "Your right to cancel within a certain number of days" under
"Contract features and benefits" earlier in the prospectus. You can cancel an
EQUI-VEST Roth IRA contract issued as a result of a full or partial conversion
of any EQUI-VEST traditional IRA contract by following the instructions in the
"EQUI-VEST Roth IRA Re-Characterization Form." The form is available from our
processing office or your financial professional. If you cancel a Traditional
IRA or Roth IRA contract, we may have to withhold tax, and we must report the
transaction to the IRS. A contract cancellation could have an unfavorable tax
impact.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES
(TRADITIONAL IRAS)
CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS.
The EQUI-VEST traditional IRA is intended to receive regular contributions.
LIMITS ON CONTRIBUTIONS TO TRADITIONAL IRAS. Generally, $2,000 is the maximum
amount that you may contribute to all IRAs (including Roth IRAs) in any
taxable year. When your earnings are below $2,000, your earned income or
compensation for the year is the most you can contribute. This $2,000 limit
does not apply to rollover contributions or direct custodian-to-custodian
transfers into a traditional IRA. You cannot make regular contributions for
the tax year in which you reach age 70 1/2 or any tax year after that.
SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $2,000, married individuals filing jointly can contribute
up to $4,000 for any taxable year to any combination of traditional IRAs and
Roth IRAs. (Any contributions to Roth IRAs reduce the ability to contribute to
traditional IRAs and vice versa.) The maximum amount may be less if earned
income is less and the other spouse has made IRA contributions. No more than a
combined total of $2,000 can be contributed annually to either spouse's
traditional IRAs and Roth IRAs. Each spouse owns his or her traditional IRAs
and Roth IRAs even if the other spouse funded the contributions. A working
spouse age 70 1/2 or over can contribute up to the lesser of $2,000 or 100% of
"earned income" to a traditional IRA for a nonworking spouse until the year in
which the nonworking spouse reaches age 70 1/2.
DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions
that you can deduct for a tax year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
IF YOU ARE NOT COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, you
can make fully deductible contributions to your traditional IRAs for each tax
year up to $2,000 or, if less, your earned income.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
adjusted gross income (AGI) is BELOW THE LOWER DOLLAR FIGURE IN A PHASE-OUT
RANGE, you can make fully deductible contributions to your traditional IRAs.
For each tax year your fully deductible contribution can be up to $2,000 or,
if less, your earned income.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls within a PHASE-OUT range, you can make partially deductible
contributions to your traditional IRAs.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls ABOVE THE HIGHER
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FIGURE IN THE PHASE-OUT RANGE, you may not deduct any of your regular
contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $32,000 and $42,000 in 2000. This range will increase every year
until 2005 when the range is $50,000-$60,000.
If you are married and file a joint return, and you are covered by a
retirement plan during any part of the taxable year, the deduction for
traditional IRA contributions phases out with AGI between $52,000 and $62,000
in 2000. This range will increase every year until 2007 when the range is
$80,000-$100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan
of an individual is determined independently for each spouse. Where spouses
have "married filing jointly" status, however, the maximum deductible
traditional IRA contribution for an individual who is not an active
participant (but whose spouse is an active participant) is phased out for
taxpayers with AGI of between $150,000 and $160,000.
To determine the deductible amount of the contribution in 2000, you determine
AGI and subtract $32,000 if you are single, or $52,000 if you are married and
file a joint return with your spouse. The resulting amount is your Excess AGI.
You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times $2,000 (or earned Equals the adjusted
- --------------------- x income, if less) = deductible
divided by $10,000 contribution
limit
NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part
or all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA
(or the nonworking spouse's traditional IRA) may not, however, exceed the
maximum $2,000 per person limit. See "Excess Contributions" below. You must
keep your own records of deductible and nondeductible contributions in order
to prevent double taxation on the distribution of previously taxed amounts.
See "Withdrawals, payments and transfers of funds out of traditional IRAs"
below.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible
traditional IRA contributions, you must retain all income tax returns and
records pertaining to such contributions until interests in all traditional
IRAs are fully distributed.
WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15th return
filing deadline (without extensions) of the following calendar year to make
your regular contributions for a tax year.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than $2,000; or
o regular contributions of more than earned income for the year, if that
amount is under $2,000; or
o regular contributions to a traditional IRA made after you reach age 70 1/2;
or
o rollover contributions of amounts which are not eligible to be rolled over.
For example, after-tax contributions to a qualified plan or minimum
distributions required to be made after age 70 1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover
or regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular contribution, you
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cannot take a tax deduction for the amount withdrawn. You do not have to
include the excess contribution withdrawn as part of your income. It is also
not subject to the 10% additional penalty tax on early distributions discussed
below in "Early distribution penalty tax." You do have to withdraw any
earnings that are attributed to the excess contribution. The withdrawn
earnings would be included in your gross income and could be subject to the
10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from a qualified retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
RECHARACTERIZATIONS
Amounts that have been contributed as traditional IRA funds may subsequently
be treated as Roth IRA funds. Special federal income tax rules allow you to
change your mind again and have amounts that are subsequently treated as Roth
IRA funds, once again treated as traditional IRA funds. You do this by using
the forms we prescribe. This is referred to as having "recharacterized" your
contribution.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any
or all of your funds from a traditional IRA at any time. You do not need to
wait for a special event like retirement.
TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
taxable. Except as discussed below, the total amount of any distribution from
a traditional IRA must be included in your gross income as ordinary income.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. You must keep permanent tax records of all of your
nondeductible contributions to traditional IRAs. At the end of any year in
which you have received a distribution from any traditional IRA, you calculate
the ratio of your total nondeductible traditional IRA contributions (less any
amounts previously withdrawn tax free) to the total account balances of all
traditional IRAs you own at the end of the year plus all traditional IRA
distributions made during the year. Multiply this by all distributions from
the traditional IRA during the year to determine the nontaxable portion of
each distribution.
In addition, a distribution is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" above; or
o the entire amount received is rolled over to another traditional IRA (see
"Rollovers and transfers" above); or
o in certain limited circumstances, where the traditional IRA acts as a
conduit, you roll over the entire amount into a qualified plan or TSA that
accepts rollover contributions. To get this conduit traditional IRA
treatment:
o the source of funds you used to establish the traditional IRA must have
been a rollover contribution from a qualified plan, and
o the entire amount received from the traditional IRA (including any
earnings on the rollover contribution) must be rolled over into another
qualified plan within 60 days of the date received.
Similar rules apply in the case of a TSA.
However, you may lose conduit treatment, if you make an eligible rollover
distribution contribution to a traditional IRA
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and you commingle this contribution with other contributions. In that case,
you may not be able to roll over these eligible rollover distribution
contributions and earnings to another qualified plan or TSA at a future date.
The EQUI-VEST QP IRA contract can be used as a conduit IRA if amounts are not
commingled. Distributions from a traditional IRA are not eligible for ten-year
averaging and long-term capital gain treatment available to certain
distributions from qualified plans.
REQUIRED MINIMUM DISTRIBUTIONS
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your Traditional IRAs beginning at age 70 1/2.
WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM
DISTRIBUTION. The first required minimum distribution is for the calendar
year in which you turn age 70 1/2. You have the choice to take this first
required minimum distribution during the calendar year you actually reach age
70 1/2, or to delay taking it until the first three-month period in the next
calendar year (January 1 - April 1). Distributions must start no later than
your "Required Beginning Date," which is April 1st of the calendar year after
the calendar year in which you turn age 70 1/2. If you choose to delay taking
the first annual minimum distribution, then you will have to take two minimum
distributions in that year - the delayed one for the first year and the one
actually for that year. Once minimum distributions begin, they must be made at
some time each year.
HOW YOU CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches to
taking required minimum distributions - "account-based" or "annuity-based."
Account-based method. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a life expectancy factor from IRS tables. This gives you the required minimum
distribution amount for that particular IRA for that year. The required
minimum distribution amount will vary each year as the account value and your
life expectancy factors change.
You have a choice of life expectancy factors, depending on whether you choose
a method based only on your life expectancy, or the joint life expectancies of
you and another individual. You can decide to "recalculate" your life
expectancy every year by using your current life expectancy factor. You can
decide instead to use the "term certain" method, where you reduce your life
expectancy by one every year after the initial year. If your spouse is your
designated beneficiary for the purpose of calculating annual account-based
required minimum distributions, you can also annually recalculate your
spouse's life expectancy if you want. If you choose someone who is not your
spouse as your designated beneficiary for the purpose of calculating annual
account-based required minimum distributions, you have to use the term certain
method of calculating that person's life expectancy. If you pick a nonspouse
designated beneficiary, you may also have to do another special calculation.
You can later apply your traditional IRA funds to a life annuity-based payout.
You can only do this if you already chose to recalculate your life expectancy
annually (and your spouse's life expectancy if you select a spousal joint
annuity). For example, if you anticipate selecting any form of life annuity
payout after you are age 70 1/2, you must have elected to recalculate life
expectancies.
Annuity-based method. If you choose an annuity-based method you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary, or for a
period certain not extending beyond applicable life expectancies.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS?
No. If you want, you can choose a different method and a different beneficiary
for each of your traditional IRAs and other retirement plans. For example, you
can choose an
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annuity payout from one IRA, a different annuity payout from a qualified plan,
and an account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED
ON THE METHOD YOU CHOOSE? No, unless you affirmatively select an annuity
payout option or an account-based withdrawal option such as our minimum
distribution withdrawal option. Because the options we offer do not cover
every option permitted under federal income tax rules, you may prefer to do
your own required minimum distribution calculations for one or more of your
traditional IRAs.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY
YEAR? The required minimum distribution amount for your traditional IRAs is
calculated on a year-by-year basis. There are no carry-back or carry-forward
provisions. Also, you cannot apply required minimum distribution amounts you
take from your qualified plans to the amounts you have to take from your
traditional IRAs and vice-versa. However, the IRS will let you calculate the
required minimum distribution for each traditional IRA that you maintain,
using the method that you picked for that particular IRA. You can add these
required minimum distribution amount calculations together. As long as the
total amount you take out every year satisfies your overall traditional IRA
required minimum distribution amount, you may choose to take your annual
required minimum distribution from any one or more Traditional IRAs that you
own.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that your age 70 1/2 is approaching. If you do
not select a method with us, we will assume you are taking your required minimum
distribution from another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? If you die
after either (a) the start of annuity payments, or (b) your Required Beginning
Date, your beneficiary must receive payment of the remaining values in the
contract at least as rapidly as under the distribution method before your death.
In some circumstances, your surviving spouse may elect to become the owner of
the traditional IRA and halt distributions until he or she reaches age 70 1/2.
If you die before your Required Beginning Date and before annuity payments
begin, federal income tax rules require complete distribution of your entire
value in the contract within five years after your death. Payments to a
designated beneficiary over the beneficiary's life or over a period certain
that does not extend beyond the beneficiary's life expectancy are also
permitted, if these payments start within one year of your death. A surviving
spouse beneficiary can also (a) delay starting any payments until you would
have reached age 70 1/2 or (b) roll over your traditional IRA into his or her
own traditional IRA.
SUCCESSOR ANNUITANT AND OWNER
If your spouse is the sole primary beneficiary and elects to become the
successor annuitant and owner, no death benefit is payable until your
surviving spouse's death.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA
or use it as collateral, its tax-favored status will be lost as of the first
day of the tax year in which this prohibited event occurs. If this happens,
you must include the value of the traditional IRA in your federal gross
income. Also, the early distribution penalty tax of 10% will apply if you have
not reached age 59 1/2 before the first day of that tax year.
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EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59 1/2. The
extra penalty tax does not apply to pre-age 59 1/2 distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income
tax definition); or
o to pay medical insurance premiums for unemployed individuals (special
federal income tax definition); or
o to pay certain first-time home buyer expenses (special federal income tax
definition); or
o to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy), or over the joint lives of you
and your beneficiary (or your joint life expectancy) using an IRS-approved
distribution method.
ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS)
This section of the prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "Traditional IRAs."
The EQUI-VEST Roth IRA contracts are designed to qualify as Roth individual
retirement annuities under Sections 408A and 408(b) of the Internal Revenue
Code.
CONTRIBUTIONS TO ROTH IRAS
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from Traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth IRAs
("direct transfers").
If you use the forms we require, we will also accept traditional IRA funds
which are subsequently recharacterized as Roth IRA funds following special
federal income tax rules.
REGULAR CONTRIBUTIONS TO ROTH IRAS
LIMITS ON REGULAR CONTRIBUTIONS. Generally, $2,000 is the maximum amount that
you may contribute to all IRAs (including Roth IRAs) in any taxable year. This
$2,000 limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa.
When your earnings are below $2,000, your earned income or compensation for
the year is the most you can contribute. If you are married and file a joint
income tax return, you and your spouse may combine your compensation to
determine the amount of regular IRA and after-tax contributions you are
permitted to make to Roth IRAs and traditional IRAs. See the discussion above
under traditional IRAs.
With a Roth IRA, you can make regular contributions when you reach 70 1/2, as
long as you have sufficient earnings. But, you cannot make contributions for
any year that:
o your federal income tax filing status is "married filing jointly" and your
adjusted gross income is over $160,000; or,
o your federal income tax filing status is "single" and your adjusted gross
income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
adjusted gross income is between $150,000 and $160,000; or
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o your federal income tax filing status is "single" and your adjusted gross
income is between $95,000 and $110,000.
If you are married and filing separately and your adjusted gross income is
between $0 and $10,000 the amount of regular contribution you are permitted to
make is phased out. If your adjusted gross income is more than $10,000 you
cannot make a regular Roth IRA contribution.
WHEN YOU CAN MAKE CONTRIBUTIONS? Same as traditional IRAs.
DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible.
ROLLOVERS AND DIRECT TRANSFERS
WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE-IRA, in a taxable
"conversion" rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, or a TSA under Section 403(b) of
the Internal Revenue Code. You may make direct transfer contributions to a
Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer
transaction is the following. In a rollover transaction you actually take
possession of the funds rolled over, or are considered to have received them
under tax law in the case of a change from one type of plan to another. In a
direct transfer transaction, you never take possession of the funds, but
direct the first Roth IRA custodian, trustee, or issuer to transfer the first
Roth IRA funds directly to Equitable Life, as the Roth IRA issuer. You can
make direct transfer transactions only between identical plan types (for
example, Roth IRA to Roth IRA). You can also make rollover transactions
between identical plan types. However, you can only use rollover transactions
between different plan types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a
completely tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In
some cases, Roth IRAs can be transferred on a tax-free basis between spouses
or former spouses as a result of a court-ordered divorce or separation decree.
CONVERSION CONTRIBUTIONS TO ROTH IRAS
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered
to have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover
transaction is not tax-free. Instead, the distribution from the traditional
IRA is generally fully taxable. For this reason, we are required to withhold
10% federal income tax from the amount converted unless you elect out of such
withholding. (If you have ever made nondeductible regular IRA contributions to
any traditional IRA - whether or not it is the traditional IRA you are
converting - a pro rata portion of the distribution is tax-free.)
There is, however, no early distribution penalty tax on the Traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59 1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your adjusted gross income
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exceeds $100,000. (For this purpose, your adjusted gross income is calculated
without the gross income stemming from the traditional IRA conversion.) You
also cannot make conversion contributions to a Roth IRA for any taxable year
in which your federal income tax filing status is "married filing separately."
Finally, you cannot make conversion contributions to a Roth IRA to the extent
that the funds in your traditional IRA are subject to the annual required
minimum distribution rule applicable to traditional IRAs beginning at age
70 1/2.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any
or all of your funds from a Roth IRA at any time; you do not need to wait for
a special event like retirement.
DISTRIBUTIONS FROM ROTH IRAS
Distributions include withdrawals from your contract, surrender and
termination of your contract and annuity payments from your contract. Death
benefits are also distributions.
The following distributions from Roth IRAs are free of income tax:
o Rollovers from a Roth IRA to another Roth IRA;
o Direct transfers from a Roth IRA to another Roth IRA;
o "Qualified Distributions" from a Roth IRA; and
o Return of excess contributions or amounts recharacterized to a traditional
IRA.
QUALIFIED DISTRIBUTIONS FROM ROTH IRAS
Qualified distributions from Roth IRAs made because of one of the following
four qualifying events or reasons are not includable in income:
o you reach age 59 1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is
any distribution made after the five-taxable-year period beginning with the
first taxable year for which you made any contribution to any Roth IRA
(whether or not the one from which the distribution is being made). It is not
possible to have a tax-free qualified distribution before the year 2003
because of the five-year aging requirement.
NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS
Nonqualified distributions from Roth IRAs are distributions that do not meet
the qualifying event and five-year aging period tests described above. Such
distributions are potentially taxable as ordinary income. Nonqualified
distributions receive return-of-investment-first treatment. Only the
difference between the amount of the distribution and the amount of
contributions to all of your Roth IRAs is taxable. You have to reduce the
amount of contributions to all of your Roth IRAs to reflect any previous
tax-free recoveries.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable five-year averaging method (or, in certain cases,
favorable ten-year averaging and long-term capital gain treatment) available
in certain cases to distributions from qualified plans.
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REQUIRED MINIMUM DISTRIBUTIONS AT DEATH
Same as traditional IRA under "What are the required minimum distribution
payments after you die?" Lifetime required minimum distributions do not apply.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
Same as traditional IRA.
EXCESS CONTRIBUTIONS
Generally, the same as traditional IRA, except that regular contributions made
after age 70 1/2 are not "excess contributions."
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your adjusted gross income is in excess of $100,000 in the conversion year).
You can withdraw or recharacterize any contribution to a Roth IRA before the due
date (including extensions) for filing your federal income tax return for the
tax year. If you do this, you must also withdraw or recharacterize any earnings
attributable to the contribution.
EARLY DISTRIBUTION PENALTY TAX
Same as traditional IRA.
For Roth IRAs, special penalty rules may apply to amounts withdrawn
attributable to 1998 conversion rollovers.
ROLLOVERS AND TRANSFERS
Rollover contributions may be made to a traditional IRA from these sources:
o qualified plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial
accounts); and
o other traditional IRAs.
Any amount contributed to a traditional IRA after you reach age 70 1/2 must be
net of your required minimum distribution for the year in which the rollover
or direct transfer contribution is made.
ROLLOVERS FROM QUALIFIED PLANS OR TSAS
There are two ways to do rollovers:
o Do it yourself
You actually receive a distribution that can be rolled over and you roll
it over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your qualified plan or TSA will be net of 20%
mandatory federal income tax withholding. If you want, you can replace the
withheld funds yourself and roll over the full amount.
o Direct rollover
You tell your qualified plan trustee or TSA issuer/custodian/fiduciary to
send the distribution directly to your traditional IRA issuer. Direct
rollovers are not subject to mandatory federal income tax withholding.
All distributions from a TSA or qualified plan are eligible
rollover distributions, unless the distribution is:
o only after-tax contributions you made to the plan; or
o "required minimum distributions" after age 70 1/2 or separation from
service; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of
you and your designated beneficiary; or
o a hardship withdrawal; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o corrective distributions which fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
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o a qualified domestic relations order distribution to a beneficiary who is
not your current spouse or former spouse.
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
You may roll over amounts from one traditional IRA to one or more of your
other traditional IRAs if you complete the transaction within 60 days after
you receive the funds. You may make such a rollover only once in every
12-month period for the same funds. Trustee-to-trustee or
custodian-to-custodian direct transfers are not rollover transactions. You can
make these more frequently than once in every 12-month period.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited traditional IRA to one or more other
traditional IRAs. Also, in some cases, traditional IRAs can be transferred on
a tax-free basis between spouses or former spouses as a result of a court
ordered divorce or separation decree.
ILLUSTRATION OF GUARANTEED INTEREST RATES
In the following two tables, we provide information that the IRS requires us
to furnish to prospective IRA contract owners. In the tables we illustrate the
3% minimum guaranteed interest rate for contributions we assume are allocated
entirely to the guaranteed interest option. In Table I we assume a $1,000
contribution made annually on the contract date and on each anniversary after
that. In Table II we assume a single initial contribution of $1,000, and no
additional contributions. The 3% guaranteed interest rate is in the contract.
The account values shown reflect no withdrawal charges. The cash values shown
reflect the withdrawal charge that applies if you surrender your contract for
its cash value. In all cases we assume no transfers.
These values reflect the effect of the annual administrative charge deducted
at the end of each contract year in which the account value is less than
$20,000.
To find the appropriate value for the end of the contract year at any
particular age, you subtract the age (nearest birthday) at issue of the
contract from the current age and find the corresponding year in the table.
Years that correspond to a current age over 70, should be ignored, unless the
contract is a Roth IRA.
You should consider the information shown in the tables in light of your
present age. Also, with respect to Table I, you should consider your ability
to contribute $1,000 annually. Any change in the amounts contributed annually
in Table I, or in the amount of the single contribution in Table II would, of
course, change the results shown.
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TABLE I
ACCOUNT VALUES AND CASH VALUES
(assuming $1,000 contributions made annually
at the beginning of the contract year)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
3% MINIMUM GUARANTEE
- ------------------------------------------------------------------------------
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- -------------- ------------------------------ ----------------------------
<S> <C> <C>
1 $ 1,009.40 $ 954.89
2 $ 2,039.68 $ 1,929.54
3 $ 3,100.87 $ 2,933.43
4 $ 4,193.90 $ 3,967.43
5 $ 5,319.72 $ 5,032.45
6 $ 6,479.31 $ 6,129.42
7 $ 7,673.69 $ 7,313.69
8 $ 8,903.90 $ 8,543.90
9 $ 10,171.01 $ 9,811.01
10 $ 11,476.14 $ 11,116.14
11 $ 12,820.43 $ 12,460.43
12 $ 14,205.04 $ 13,845.04
13 $ 15,631.19 $ 15,271.19
14 $ 17,100.13 $ 16,740.13
15 $ 18,613.13 $ 18,253.13
16 $ 20,201.53 $ 19,841.53
17 $ 21,837.57 $ 21,477.57
18 $ 23,522.70 $ 23,162.70
19 $ 25,258.38 $ 24,898.38
20 $ 27,046.13 $ 26,686.13
21 $ 28,887.52 $ 28,527.52
22 $ 30,784.14 $ 30,424.14
23 $ 32,737.67 $ 32,377.67
24 $ 34,749.80 $ 34,389.80
25 $ 36,822.29 $ 36,462.29
26 $ 38,956.96 $ 38,596.96
27 $ 41,155.67 $ 40,795.67
28 $ 43,420.34 $ 43,060.34
29 $ 45,752.95 $ 45,392.95
30 $ 48,155.53 $ 47,795.53
31 $ 50,630.20 $ 50,270.20
32 $ 53,179.11 $ 52,819.11
33 $ 55,804.48 $ 55,444.48
34 $ 58,508.61 $ 58,148.61
35 $ 61,293.87 $ 60,933.87
36 $ 64,162.69 $ 63,802.69
37 $ 67,117.57 $ 66,757.57
38 $ 70,161.10 $ 69,801.10
39 $ 73,295.93 $ 72,935.93
40 $ 76,524.81 $ 76,164.81
41 $ 79,850.55 $ 79,490.55
42 $ 83,276.07 $ 82,916.07
43 $ 86,804.35 $ 86,444.35
44 $ 90,438.48 $ 90,078.48
45 $ 94,181.64 $ 93,821.64
46 $ 98,037.08 $ 97,677.08
47 $102,008.20 $101,648.20
48 $106,098.44 $105,738.44
49 $110,311.40 $109,951.40
50 $114,650.74 $114,290.74
- ------------------------------------------------------------------------------
</TABLE>
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TABLE II
ACCOUNT VALUES AND CASH VALUES
(assuming a single contribution of $1,000 and
no further contribution)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
3% MINIMUM GUARANTEE
- ------------------------------------------------------------------------------
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- -------------- ------------------------------ ----------------------------
<S> <C> <C>
1 $1,009.40 $ 954.89
2 $1,018.89 $ 963.87
3 $1,019.46 $ 964.40
4 $1,020.04 $ 964.96
5 $1,020.64 $ 965.53
6 $1,021.26 $ 966.11
7 $1,021.90 $1,021.90
8 $1,022.55 $1,022.55
9 $1,023.23 $1,023.23
10 $1,023.93 $1,023.93
11 $1,024.65 $1,024.65
12 $1,025.38 $1,025.38
13 $1,026.15 $1,026.15
14 $1,026.93 $1,026.93
15 $1,027.74 $1,027.74
16 $1,028.57 $1,028.57
17 $1,029.43 $1,029.43
18 $1,030.31 $1,030.31
19 $1,031.22 $1,031.22
20 $1,032.16 $1,032.16
21 $1,033.12 $1,033.12
22 $1,034.11 $1,034.11
23 $1,035.14 $1,035.14
24 $1,036.19 $1,036.19
25 $1,037.28 $1,037.28
26 $1,038.40 $1,038.40
27 $1,039.55 $1,039.55
28 $1,040.73 $1,040.73
29 $1,041.96 $1,041.96
30 $1,043.22 $1,043.22
31 $1,044.51 $1,044.51
32 $1,045.85 $1,045.85
33 $1,047.22 $1,047.22
34 $1,048.64 $1,048.64
35 $1,050.10 $1,050.10
36 $1,051.60 $1,051.60
37 $1,053.15 $1,053.15
38 $1,054.74 $1,054.74
39 $1,056.39 $1,056.39
40 $1,058.08 $1,058.08
41 $1,059.82 $1,059.82
42 $1,061.61 $1,061.61
43 $1,063.46 $1,063.46
44 $1,065.37 $1,065.37
45 $1,067.33 $1,067.33
46 $1,069.35 $1,069.35
47 $1,071.43 $1,071.43
48 $1,073.57 $1,073.57
49 $1,075.78 $1,075.78
50 $1,078.05 $1,078.05
- ------------------------------------------------------------------------------
</TABLE>
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FEDERAL AND STATE INCOME TAX WITHHOLDING
AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in
certain cases, the amount of your distribution. Any income tax withheld is a
credit against your income tax liability. If you do not have sufficient income
tax withheld or do not make sufficient estimated income tax payments, you may
incur penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of traditional
IRAs to Roth IRAs, as it is considered a withdrawal from the traditional
IRA and is taxable.
o We are required to withhold on the gross amount of a distribution from a Roth
IRA unless you elect out of withholding. This may result in tax being
withheld even though the Roth IRA distribution is not taxable in whole or
in part.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules
here. Certain states have indicated that state income tax withholding will
also apply to payments from the contracts made to residents. In some states,
you may elect out of state withholding, even if federal withholding applies.
Generally, an election out of federal withholding will also be considered an
election out of state withholding. If you need more information concerning a
particular state or any required forms, call our processing office at the
toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number
of withholding exemptions, we withhold assuming that you are married and
claiming three withholding exemptions. If you do not give us your correct
Taxpayer Identification Number, we withhold as if you are single with no
exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $14,880 in periodic annuity payments in
2000 your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
For a non-periodic distribution (total surrender, termination, or partial
withdrawal), we generally withhold at a flat 10% rate. We apply that rate to
the taxable amount in the case of nonqualified contracts, and to the payment
amount in the case of IRAs and Roth IRAs.
IMPACT OF TAXES TO EQUITABLE LIFE
The contracts provide that we may charge Separate Account A for taxes. We do
not now, but may in the future set up reserves for such taxes.
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ABOUT OUR SEPARATE ACCOUNT A
Each variable investment option is a subaccount of our Separate Account A. We
established Separate Account A in 1968 under special provisions of the New
York Insurance Law. These provisions prevent creditors from any other business
we conduct from reaching the assets we hold in our variable investment options
for owners of our variable annuity contracts. We are the legal owner of all of
the assets in Separate Account A and may withdraw any amounts that exceed our
reserves and other liabilities with respect to variable investment options
under our contracts. The results of Separate Account A's operations are
accounted for without regard to Equitable Life's other operations.
Separate Account A is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise Equitable Life or Separate Account A.
Each subaccount (variable investment option) within Separate Account A invests
solely in Class IB shares issued by the corresponding portfolio of EQ Advisors
Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from, Separate Account A, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate Separate Account A or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against an
underlying mutual fund would be assessed against Separate Account A or a
variable investment option directly);
(5) to deregister Separate Account A under the Investment Company Act of 1940;
(6) to restrict or eliminate any voting rights as to Separate Account A; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT EQ ADVISORS TRUST
EQ Advisors Trust is registered under the Investment Company Act of 1940. It
is classified as an "open-end management investment company," more commonly
called a mutual fund. EQ Advisors Trust issues different shares relating to
each of its portfolios.
Equitable Life serves as the investment manager of EQ Advisors Trust. As such
Equitable Life oversees the activities of the investment advisors with respect
to EQ Advisors Trust and is responsible for retaining or discontinuing the
services of those advisors. (Prior to September 1999, EQ Financial Consultants
Inc. the predecessor to AXA Advisors, LLC and an affiliate of Equitable Life
served as investment manager to EQ Advisors Trust).
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier
Growth) were part of The Hudson River Trust. On October 18, 1999, the assets
of these portfolios became the corresponding portfolios of EQ Advisors Trust.
EQ Advisors Trust does not impose sales charges or "loads" for buying and
selling their shares. All dividends and other distributions on Trust shares
are reinvested in full. The Board of Trustees of EQ Advisors Trust may
establish additional portfolios or eliminate existing portfolios at any time.
More detailed information about EQ Advisors Trust, the portfolio investment
objectives, policies, restrictions, risks, expenses, their Rule 12b-1 Plan
relating to its Class 1B shares, and other aspects of its operations, appears
in the prospectus for EQ Advisors Trust attached at the end of this
prospectus, or in its SAI which is available upon request.
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ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example,
we can tell you how much you need to allocate per $100 of maturity value.
The rates to maturity for new allocations as of March 1, 2000 and the related
price per $100 of maturity value were as follows:
- --------------------------------------------------------------------------------
FIXED MATURITY
OPTIONS
WITH JUNE 15TH
MATURITY DATE RATE TO MATURITY AS PRICE
OF OF PER $100 OF
MATURITY YEAR MARCH 1, 2000 MATURITY VALUE
- --------------------------------------------------------------------------------
2001 5.20% $ 93.68
2002 5.65% $ 88.20
2003 6.10% $ 82.34
2004 6.15% $ 77.41
2005 6.25% $ 72.57
2006 6.35% $ 67.90
2007 6.40% $ 63.63
2008 6.40% $ 59.82
2009 6.45% $ 55.96
2010 6.50% $ 52.31
- --------------------------------------------------------------------------------
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity option.
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity that applies on the withdrawal
date to new allocations to the same fixed maturity option.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be
positive or negative.
- --------------------------------------------------------------------------------
Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that
same fixed maturity option on the date of the calculation.
- --------------------------------------------------------------------------------
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in
the fixed maturity option that you are withdrawing. Any withdrawal charges
that are deducted from a fixed maturity option will result in a market value
adjustment calculated in the same way. See Appendix II for an example.
For purposes of calculating the rate to maturity for new allocations to a
fixed maturity option (see (1)(c) above), we use the rate we have in effect
for new allocations to that fixed maturity option. We use this rate even if
new allocations to that option would not be accepted at that time. This rate
will not be less than 3%. If we do not have a rate to maturity in effect for a
fixed maturity option to which the "current rate to maturity" in (1)(c) above
would apply, we will use the rate at the next closest maturity date. If we are
no longer offering new fixed maturity options, the "current rate to maturity"
will be determined in accordance with our procedures then in effect. We
reserve the right to
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add up to 0.50% to the current rate in (1)(c) above for purposes of
calculating the market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment
performance on those assets. You do not participate in the performance of the
assets held in this separate account. We may, subject to state law that
applies, transfer all assets allocated to the separate account to our general
account. We guarantee all benefits relating to your value in the fixed
maturity options, regardless of whether assets supporting fixed maturity
options are held in a separate account or our general account.
We have no specific formula for establishing the rates to maturity for the
fixed maturity options. We expect the rates to be influenced by, but not
necessarily correspond to, among other things, the yields that we can expect
to realize on the separate account's investments from time to time. Our
current plans are to invest in fixed-income obligations, including corporate
bonds, mortgage-backed and asset-backed securities and government and agency
issues having durations in the aggregate consistent with those of the fixed
maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of
the nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and the fixed
maturity options, as well as our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of
1940. However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions
of this prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to general accounts,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
AUTOMATIC INVESTMENT PROGRAM - FOR NQ, TRADITIONAL IRA, AND ROTH IRA CONTRACTS
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account,
or credit union checking account and contributed as an additional contribution
into an NQ, Traditional IRA, or Roth IRA contract on a monthly basis.
AIP additional contributions may be allocated to any of the variable
investment options and the guaranteed interest option, but not the fixed
maturity options. Our minimum contribution amount requirement is $20. You
choose the day of the month you wish to have your account debited. However,
you may not choose a date later than the 28th day of the month.
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You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
PAYROLL DEDUCTION PROGRAM. You can authorize your employer to remit your IRA
contributions to us if your employer has a payroll deduction program. Those
contributions are still your contributions, not your employer's.
WIRE TRANSFERS. You may also send your contributions by wire transfer from
your bank.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day is any day on which Equitable Life is open and the New York
Stock Exchange is open for trading. We are closed on national business
holidays including Martin Luther King, Jr. Day and the Friday after
Thanksgiving. Additionally, we may choose to close on the day immediately
preceding or following a national business holiday or due to emergency
conditions. Our business day generally ends at 4:00 p.m., Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. We may close earlier due to emergency
conditions. Contributions will be applied and any other transaction requests
will be processed when they are received along with all the required
information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request,
containing all the required information, reaches us on a non-business day
or after 4:00 p.m., Eastern Time on a business day, we will use the next
business day.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o Quarterly rebalancing will be processed on a calendar year basis and
semiannual or annual rebalancing will be processed on the first business
day of the month. Rebalancing will not be done retroactively.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o Contributions allocated to the guaranteed interest option will receive the
guaranteed interest rate in effect on that business day.
o If a fixed maturity option is scheduled to mature on June 15th and June
15th is a non-business day, that fixed maturity option will mature on the
prior business day.
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
o Transfers to the guaranteed interest option will receive the guaranteed
interest rate in effect on that business day.
o Transfers to a fixed maturity option will receive the rate to maturity in
effect for that fixed maturity option on that business day.
o Transfers out of a fixed maturity option will be at the market adjusted
amount on that business day.
o For the fixed-dollar option, the first monthly transfer will occur on the
last business day of the month in which we receive your election form at
our processing office.
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o For the interest sweep, the first monthly transfer will occur on the last
business day of the month following the month that we receive your
election form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of EQ Advisors Trust we have the right to vote on
certain matters involving the portfolios, such as:
o the election of trustees; or
o the formal approval of independent auditors selected for EQ Advisors Trust;
or
o any other matters described in the prospectus for EQ Advisors Trust or
requiring a shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the
same proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control EQ Advisors Trust. EQ Advisors Trust shares are sold to
our separate accounts and an affiliated qualified plan trust. In addition,
shares of EQ Advisors Trust are held by separate accounts of insurance
companies unaffiliated with us. Shares held by these separate accounts will
probably be voted according to the instructions of the owners of insurance
policies and contracts issued by those insurance companies. While this will
dilute the effect of the voting instructions of the contract owners, we
currently do not foresee any disadvantages because of this. The Board of
Trustees of EQ Advisors Trust intends to monitor events in order to identify
any material irreconcilable conflicts that may arise and to determine what
action, if any, should be taken in response. If we believe that a response to
any of those events insufficiently protects our contract owners, we will see
to it that appropriate action is taken.
SEPARATE ACCOUNT A VOTING RIGHTS
If actions relating to Separate Account A require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
Equitable Life and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings is likely to have a material adverse
effect upon Separate Account A, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT ACCOUNTANTS
The consolidated financial statements of Equitable Life at December 31, 1999
and 1998, and for the three years ended December 31, 1999, incorporated in
this prospectus by reference to the 1999 Annual Report on Form 10-K are
incorporated in reliance on the report of PricewaterhouseCoopers LLP,
independent accountants, given on the authority of said firm as experts in
auditing and accounting.
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FINANCIAL STATEMENTS
The financial statements of Separate Account A, as well as the consolidated
financial statements of Equitable Life, are in the SAI. The SAI is available
free of charge. You may request one by writing to our processing office or
calling 1-800-628-6673.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this prospectus.
You cannot assign or transfer ownership of a Traditional IRA, QP IRA or Roth
IRA contract except by surrender to us. Loans are not available and you cannot
assign Traditional IRA, QP IRA and Roth IRA contracts as security for a loan
or other obligation.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this prospectus.
You may direct the transfer of the values under your Traditional IRA, QP IRA
or Roth IRA contract to another similar arrangement. Under federal income tax
rules. In the case of such a transfer, we will impose a withdrawal charge if
one applies.
DISTRIBUTION OF THE CONTRACTS
AXA Advisors, LLC ("AXA Advisors"), the successor to Equitable Financial
Consultants, Inc., and an affiliate of Equitable Life, is the distributor of
the contracts and has responsibility for sales and marketing functions for
Separate Account A. AXA Advisors serves as the principal underwriter of
Separate Account A. AXA Advisors is registered with the SEC as a broker-dealer
and is a member of the National Association of Securities Dealers, Inc. AXA
Advisors' principal business address is 1290 Avenue of the Americas, New York,
NY 10104. Pursuant to a Distribution and Servicing Agreement between AXA
Advisors, Equitable Life, and certain of Equitable Life's separate accounts,
including Separate Account A, Equitable Life paid AXA Advisors distribution
fees of $325,380 for 1999, $325,380 for 1998 and $325,380 for 1997, as
distributor of certain contracts and as the principal underwriter of certain
separate accounts including Separate Account A.
The contracts are sold by financial professionals who are registered
representatives of AXA Advisors and its affiliates, who are also our licensed
insurance agents. AXA Advisors may also receive compensation and reimbursement
for its marketing services under the terms of its distribution agreement with
Equitable Life. The offering of the contracts is intended to be continuous.
<PAGE>
9
INVESTMENT PERFORMANCE
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68
INVESTMENT PERFORMANCE
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We provide the following tables to show five different measurements of the
investment performance of the variable investment options and/or the
portfolios in which they invest. We include these tables because they may be
of general interest to you.
Table 1 shows the average annual total return of the variable investment
options. Average annual total return is the annual rate of growth that would
be necessary to achieve the ending value of a contribution invested in the
variable investment options for the periods shown.
Table 2 shows the growth of a hypothetical $1,000 investment in the variable
investment options over the periods shown. Both Tables 1 and 2 take into
account all current fees and charges under the contract, including the
withdrawal charge but do not reflect the charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state
if applicable, or any applicable annuity administrative fee.
Tables 3, 4 and 5 show the rates of return of the variable investment options
on an annualized, cumulative, and year-by-year basis. These tables take into
account all current fees and charges under the contract, but do not reflect
the annual administrative charge, any withdrawal charge, ratcheted death
benefit charge, charges designed to approximate certain taxes that may be
imposed on us, such as premium taxes in your state, or any applicable annuity
administrative fee, if applicable. If the charges were reflected they would
effectively reduce the rates of return shown.
In all cases the results shown are based on the actual historical investment
experience of the portfolios in which the variable investment options invest.
In some cases, the results shown relate to periods when the variable
investment options were not available. In those cases, we adjusted the results
of the portfolios to reflect the charges under the contracts that would have
applied had the investment options and/or contracts been available.
For the "Alliance" portfolios (other than EQ/Alliance Premier Growth), we have
adjusted the results prior to October 1996, when Class IB shares for these
portfolios were not available, to reflect the 12b-1 fees currently imposed.
Finally, the results shown for the Alliance Money Market,
EQ/Balanced, Alliance Common Stock and EQ/Aggressive Stock options for periods
before those options were operated as part of a unit investment trust reflect
the results of the separate accounts that preceded them. The "Since portfolio
inception" figures for these options are based on the date of inception of the
preceding separate accounts. We have adjusted these results to reflect the fee
and expense structure in effect for Separate Account A as a unit investment
trust. See "The reorganization" in the SAI for additional information.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier
Growth) were part of The Hudson River Trust. On October 18, 1999, those
portfolios became corresponding portfolios of EQ Advisors Trust. In each case,
the performance shown is for the indicated EQ Advisors Trust portfolio and any
predecessors that it may have had.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
From time to time, we may advertise different measurements of the investment
performance options and/or the portfolios, including the measurements
reflected in the tables below.
BENCHMARKS
Tables 3 and 4 compare the performance of variable investment options to
market indices that serve as benchmarks. Market indices are not subject to any
charges for investment advisory fees, brokerage commission or other operating
expenses typically associated with a managed portfolio. Also, they do not
reflect other charges such as the mortality and expense risks and other
expense charges, annual administrative charge, or any withdrawal charge or
optional ratcheted death benefit charge, under the contracts. Comparisons with
these benchmarks, therefore, may be of limited use. We include them because
they are widely known and may help you to understand the universe of
securities
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INVESTMENT PERFORMANCE
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from which each portfolio is likely to select its holdings. Benchmark data
reflect the reinvestment of dividend income. The benchmarks include:
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EQ/AGGRESSIVE STOCK: 50% Russell 2000 Index and 50% Standard & Poor's Mid-Cap
Total Return Index.
ALLIANCE COMMON STOCK: Standard & Poor's 500 Index.
ALLIANCE CONSERVATIVE INVESTORS: 70% Lehman Treasury Bond Composite Index and
30% Standard & Poor's 500 Index.
ALLIANCE EQUITY INDEX: Standard & Poor's 500 Index.
ALLIANCE GLOBAL: Morgan Stanley Capital International World Index.
ALLIANCE GROWTH & INCOME: 75% Standard & Poor's 500 Index and 25% Value Line
Convertibles Index.
ALLIANCE GROWTH INVESTORS: 30% Lehman Government/Corporate Bond Index and 70%
Standard & Poor's 500 Index.
ALLIANCE HIGH YIELD: Benchmark #1-Merrill Lynch High Yield Master Index and
Benchmark #2-Credit Suisse First Boston Global High Yield Index.
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES: Lehman Intermediate Government
Bond Index.
ALLIANCE INTERNATIONAL: Morgan Stanley Capital International Europe, Australia,
Far East Index.
ALLIANCE MONEY MARKET: Salomon Brothers Three-Month T-Bill Index.
EQ/ALLIANCE PREMIER GROWTH: Standard & Poor's 500 Index.
ALLIANCE QUALITY BOND: Lehman Aggregate Bond Index.
ALLIANCE SMALL CAP GROWTH: Russell 2000 Growth Index.
EQ/ALLIANCE TECHNOLOGY: NASDAQ Composite
EQ/BALANCED: 50% Standard & Poor's 500 and 50% Lehman Government/Corporate Bond
Index.
CAPITAL GUARDIAN RESEARCH: Standard & Poor's 500 Index.
CAPITAL GUARDIAN U.S. EQUITY: Standard & Poor's 500 Index.
EQ/EVERGREEN: Benchmark #1-Russell 2000 Index and Benchmark #2-Standard & Poor's
500 Index.
EQ/EVERGREEN FOUNDATION: 60% Standard & Poor's 500 Index/40% Lehman Brothers
Aggregate Bond Index.
MFS EMERGING GROWTH COMPANIES: Russell 2000 Index.
MFS GROWTH WITH INCOME: Standard & Poor's 500 Index.
MFS RESEARCH: Standard & Poor's 500 Index.
MERCURY BASIC VALUE EQUITY: Standard & Poor's 500 Index.
MERCURY WORLD STRATEGY: 36% Standard & Poor's 500 Index/24% Morgan Stanley
Capital International Europe, Australia, Far East Index/21% Salomon Brothers
U.S. Treasury Bond 1 Year+ 14% Salomon Brothers World Government Bond
(excluding U.S.)/and 5% Three-Month U.S. Treasury Bill.
MORGAN STANLEY EMERGING MARKETS EQUITY: Morgan Stanley Capital International
Emerging Markets Free Price Return Index.
EQ/PUTNAM BALANCED: 60% Standard & Poor's 500 Index and 40% Lehman
Government/Corporate Bond Index.
EQ/PUTNAM GROWTH & INCOME VALUE: Standard & Poor's 500 Index.
T. ROWE PRICE EQUITY INCOME: Standard & Poor's 500 Index.
T. ROWE PRICE INTERNATIONAL STOCK: Morgan Stanley Capital International Europe,
Australia, Far East Index.
WARBURG PINCUS SMALL COMPANY VALUE: Benchmark #1-Russell 2000 Index and
Benchmark #2- Russell 2000 Value Index.
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LIPPER SURVEY. The Lipper Variable Insurance Products Performance Analysis
Survey (Lipper Survey) records the performance of a large group of variable
annuity products, including managed separate accounts of insurance companies.
According to Lipper Analytical Services, Inc. (Lipper), the data are presented
net of investment management fees, direct operating expenses and asset-based
charges applicable under annuity contracts. Lipper data provide a more accurate
picture than market benchmarks of the EQUI-VEST performance relative to other
variable annuity products.
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TABLE 1
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999
<TABLE>
<CAPTION>
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LENGTH OF INVESTMENT PERIOD
--------------------------------------------------------------------------------
SINCE SINCE
1 3 5 10 OPTION PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION* INCEPTION**
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/Aggressive Stock 8.93% 3.96% 11.69% 13.33% 14.69% 14.69%
Alliance Common Stock 14.92% 22.48% 23.81% 14.95% 15.25% 10.62%
Alliance Conservative Investors 0.96% 6.74% 7.69% 6.12% 4.81% 6.19%
Alliance Equity Index 10.34% 21.48% 23.61% 20.82% 19.50%
Alliance Global 27.78% 17.94% 16.10% 12.10% 13.45% 10.68%
Alliance Growth and Income 8.76% 16.52% 17.65% 13.73% 13.22%
Alliance Growth Investors 16.26% 14.91% 15.46% 13.56% 11.46% 13.60%
Alliance High Yield (11.41)% (2.76)% 5.15% 6.69% 2.96% 5.71%
Alliance Intermediate Government Securities (8.22)% (0.61)% 1.32% 0.43% 2.27%
Alliance International 27.08% 8.22% 7.64% 8.02%
Alliance Money Market (3.77)% (0.37)% 0.24% 1.00% 3.03% 3.03%
Alliance Quality Bond (10.19)% (0.47)% 2.48% 0.36% 0.74%
Alliance Small Cap Growth 17.57% 7.82% 11.98%
EQ/Balanced 7.97% 11.37% 11.80% 8.01% 9.39% 9.39%
MFS Emerging Growth Companies 62.59% 39.84% 42.82%
MFS Research 13.20% 16.15% 18.40%
Mercury Basic Value Equity 9.29% 9.62% 12.33%
Mercury World Strategy 11.50% 4.53% 6.42%
Morgan Stanley Emerging Markets Equity 84.40% (0.23)% (0.23)%
EQ/Putnam Balanced (8.08)% 2.67% 3.96%
EQ/Putnam Growth & Income Value (9.36)% 2.54% 4.37%
T. Rowe Price Equity Income (4.85)% 5.35% 7.12%
T. Rowe Price International Stock 21.68% 8.87% 10.09%
Warburg Pincus Small Company Value (6.46)% (4.73)% (2.24)%
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</TABLE>
* The variable investment option inception dates are: EQ/Aggressive Stock,
EQ/Balanced (5/1/84), Alliance Common Stock (8/27/81), Alliance
Conservative Investors (1/4/94), Alliance Equity Index (6/1/94), Alliance
Global (1/4/94), Alliance Growth & Income (1/4/94), Alliance Growth
Investors (1/4/94), Alliance High Yield (1/4/94), Alliance Intermediate
Government Securities (6/1/94), Alliance International (9/1/95), Alliance
Money Market (5/11/82), Alliance Quality Bond (1/4/94), Alliance Small
Cap Growth (6/2/97), MFS Emerging Growth Companies (6/2/97), MFS Research
(6/2/97), Mercury Basic Value Equity (6/2/97), Mercury World Strategy
(6/2/97), Morgan Stanley Emerging Markets Equity (8/20/97), EQ/Putnam
Balanced (6/2/97), EQ/Putnam Growth & Income Value (6/2/97), T. Rowe
Price Equity Income (6/2/97), T. Rowe Price International Stock (6/2/97),
Warburg Pincus Small Company Value (6/2/97), EQ/Evergreen, EQ/Evergreen
Foundation, MFS Growth with Income, (12/31/98). The inception dates for
the variable investment options that became available less than one year
ago and are therefore not shown are: EQ/Alliance Premier Growth, Capital
Guardian Research, Capital Guardian U.S. Equity, EQ/Evergreen,
EQ/Evergreen Foundation, MFS Growth with Income (8/30/99) and EQ/Alliance
Technology (anticipated to become available 5/22/00).
** The inception dates for portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios
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INVESTMENT PERFORMANCE
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of The Hudson River Trust, the assets of which became assets of
corresponding portfolios of EQ Advisors Trust on 10/18/99. The portfolio
inception dates are: EQ/Aggressive Stock (5/1/84), EQ/Balanced (5/1/84),
Alliance Common Stock (8/1/68), Alliance Conservative Investors (10/2/89),
Alliance Equity Index (3/1/94), Alliance Global (8/27/87), Alliance Growth
and Income (10/1/93), Alliance Growth Investors (10/2/89), Alliance High
Yield (1/2/87), Alliance Intermediate Government Securities (4/1/91),
Alliance International (4/3/95), Alliance Money Market (5/11/82), Alliance
Quality Bond (10/1/93), Alliance Small Cap Growth (5/1/97), MFS Emerging
Growth Companies (5/1/97), MFS Research (5/1/97), Mercury Basic Value
Equity (5/1/97), Mercury World Strategy (5/1/97), Morgan Stanley Emerging
Markets Equity (8/20/97), EQ/Putnam Balanced (5/1/97), EQ/Putnam Growth &
Income Value (5/1/97), T. Rowe Price Equity Income (5/1/97), T. Rowe Price
International Stock (5/1/97), Warburg Pincus Small Company Value (5/1/97),
EQ/Evergreen, EQ/Evergreen Foundation, and MFS Growth with Income
(inception dates of 12/31/98) are not included because the variable
investment options that correspond to the portfolios became available after
12/31/98. The inception dates for the portfolios that became available less
than one year ago and are therefore not shown in the tables are;
EQ/Alliance Premier Growth, Capital Guardian Research, and Capital Guardian
U.S. Equity (4/30/99) and EQ/Alliance Technology (5/1/00).
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TABLE 2
GROWTH OF $1,000 UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 1999
<TABLE>
<CAPTION>
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LENGTH OF INVESTMENT PERIOD
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SINCE
1 3 5 10 PORTFOLIO
VARIABLE INVESTMENT OPTIONS YEAR YEARS YEARS YEARS INCEPTION*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/Aggressive Stock $1,089.27 $1,123.67 $1,738.33 $3,495.28 $ 8,571.56
Alliance Common Stock $1,149.17 $1,837.51 $2,908.87 $4,027.55 $23,833.27
Alliance Conservative Investors $1,009.55 $1,216.21 $1,448.66 $1,811.82 $ 1,850.12
Alliance Equity Index $1,103.42 $1,792.91 $2,886.02 - $ 2,829.53
Alliance Global $1,277.81 $1,640.57 $2,109.76 $3,134.36 $ 3,499.27
Alliance Growth and Income $1,087.65 $1,581.98 $2,254.41 - $ 2,172.95
Alliance Growth Investors $1,162.63 $1,517.35 $2,052.02 $3,566.75 $ 3,693.95
Alliance High Yield $ 885.93 $ 919.53 $1,285.62 $1,910.23 2,058.41
Alliance Intermediate Government Securities $ 917.84 $ 981.73 $1,067.89 - $ 1,217.06
Alliance International $1,270.78 $1,267.57 - - $ 1,442.64
Alliance Money Market $ 962.28 $ 988.86 $1,012.29 $1,104.79 $ 1,693.82
Alliance Quality Bond $ 898.13 $ 985.91 $1,130.57 - $ 1,047.24
Alliance Small Cap Growth $1,175.70 - - - $ 1,352.98
EQ/Balanced $1,079.68 $1,381.44 $1,746.95 $2,160.61 $ 4,079.78
MFS Emerging Growth Companies $1,625.89 - - - $ 2,591.24
MFS Research $1,132.05 - - - $ 1,570.20
Mercury Basic Value Equity $1,092.90 - - - $ 1,364.08
Mercury World Strategy $1,115.00 - - - $ 1,180.83
Morgan Stanley Emerging Markets Equity $1,843.97 - - - $ 994.45
EQ/Putnam Balanced $ 919.22 - - - $ 1,109.32
EQ/Putnam Growth & Income Value $ 906.38 - - - $ 1,120.91
T. Rowe Price Equity Income $ 951.52 - - - $ 1,201.54
T. Rowe Price International Stock $1,216.82 - - - $ 1,292.62
Warburg Pincus Small Company Value $ 935.41 - - - $ 941.22
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Portfolio inception dates are shown in Table 1.
<PAGE>
- -----
73
INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
TABLE 3
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK 17.12% 8.11% 14.59% 14.87% - 15.88%
Lipper Mid-Cap Growth 51.65% 24.68% 19.97% 14.78% - 15.86%
Benchmark 18.09% 17.48% 19.92% 15.41% - 14.58%
ALLIANCE COMMON STOCK 23.38% 26.09% 26.25% 16.90% 16.72% 12.24%
Lipper Growth 29.78% 26.87% 25.55% 16.90% 15.83% 15.16%
Benchmark 21.03% 27.56% 28.56% 18.21% 17.88% 16.19%
ALLIANCE CONSERVATIVE INVESTORS 8.55% 10.79% 10.85% 8.36% - 8.44%
Lipper Income 4.42% 11.65% 13.70% 10.10% - 10.15%
Benchmark 4.19% 12.07% 13.60% 10.75% - 10.68%
ALLIANCE EQUITY INDEX 18.64% 25.10% 26.02% - - 21.89%
Lipper S&P 500 Index Funds 19.36% 25.86% 26.81% - - 23.89%
Benchmark 21.03% 27.56% 28.56% - - 24.14%
ALLIANCE GLOBAL 36.51% 21.69% 18.98% 14.16% - 12.80%
Lipper Global 44.62% 23.92% 20.57% 11.65% - 11.06%
Benchmark 24.93% 21.61% 19.76% 11.42% - 10.74%
ALLIANCE GROWTH AND INCOME 16.95% 20.30% 20.31% - - 15.46%
Lipper Growth & Income 12.90% 17.23% 20.50% - - 16.45%
Benchmark 20.71% 23.10% 25.01% - - 18.77%
ALLIANCE GROWTH INVESTORS 24.76% 18.73% 18.28% 15.31% - 15.32%
Lipper Flexible Portfolio 10.45% 14.19% 15.15% 11.65% - 11.68%
Benchmark 13.77% 20.90% 22.15% 15.13% - 15.15%
ALLIANCE HIGH YIELD (4.74)% 1.32% 8.30% 8.66% - 7.80%
Lipper High Yield 3.65% 4.82% 8.59% 9.61% - 7.79%
Benchmark #1 1.57% 5.91% 9.61% 10.79% - 9.99%
Benchmark #2 3.28% 5.37% 9.07% 11.06% - 10.04%
ALLIANCE INTERMEDIATE GOVERNMENT
SECURITIES (1.31)% 3.49% 4.84% - - 4.75%
Lipper U.S. Government (2.60)% 4.04% 5.81% - - 5.89%
Benchmark 0.49% 5.50% 6.93% - - 6.76%
ALLIANCE INTERNATIONAL 35.79% 12.23% - - - 11.49%
Lipper International 43.24% 18.74% - - - 16.13%
Benchmark 26.96% 15.74% - - - 13.11%
ALLIANCE MONEY MARKET 3.47% 3.73% 3.85% 3.67% - 5.15%
Lipper Money Market 3.78% 4.05% 4.16% 3.96% - 5.70%
Benchmark 4.74% 5.01% 5.20% 5.06% - 6.65%
ALLIANCE QUALITY BOND (3.43)% 3.63% 5.92% - - 3.45%
Lipper Corporate Bond A-Rated (2.56)% 4.06% 6.53% - - 4.36%
Benchmark (0.82)% 5.73% 7.73% - - 5.64%
ALLIANCE SMALL CAP GROWTH 26.09% - - - - 16.19%
Lipper Small-Cap 34.26% - - - - 19.49%
Benchmark 43.09% - - - - 25.88%
EQ/BALANCED 16.09% 15.28% 14.77% 10.20% - 11.04%
Lipper Balanced 10.45% 14.19% 15.15% 11.65% - 11.09%
Benchmark 9.07% 16.47% 17.93% 13.04% - 13.19%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
74
INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
TABLE 3 (CONTINUED)
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MFS EMERGING GROWTH COMPANIES 71.59% - - - - 46.49%
Lipper Mid-Cap 51.65% - - - - 32.50%
Benchmark 21.26% - - - - 16.99%
MFS RESEARCH 21.64% - - - - 22.46%
Lipper Growth 29.78% - - - - 29.33%
Benchmark 21.03% - - - - 27.36%
MERCURY BASIC VALUE EQUITY 17.51% - - - - 16.52%
Lipper Growth & Income 12.90% - - - - 18.00%
Benchmark 21.03% - - - - 27.36%
MERCURY WORLD STRATEGY 19.89% - - - - 10.79%
Lipper Global Flexible Portfolio 12.93% - - - - 11.91%
Benchmark 13.07% - - - - 16.18%
MORGAN STANLEY EMERGING MARKETS
EQUITY 93.40% - - - - 4.43%
Lipper Emerging Markets 82.53% - - - - 2.90%
Benchmark 66.41% - - - - (0.88)%
EQ/PUTNAM BALANCED (1.16)% - - - - 8.39%
Lipper Balanced 8.69% - - - - 13.91%
Benchmark 11.39% - - - - 18.81%
EQ/PUTNAM GROWTH & INCOME VALUE (2.54)% - - - - 8.80%
Lipper Growth & Income 12.90% - - - - 18.00%
Benchmark 21.03% - - - - 27.36%
T. ROWE PRICE EQUITY INCOME 2.31% - - - - 11.46%
Lipper Equity Income 6.90% - - - - 14.28%
Benchmark 21.03% - - - - 27.36%
T. ROWE PRICE INTERNATIONAL STOCK 30.29% - - - - 14.34%
Lipper International 43.24% - - - - 20.38%
Benchmark 26.96% - - - - 18.32%
WARBURG PINCUS SMALL COMPANY
VALUE 0.58% - - - - 2.09%
Lipper Small-Cap 34.26% - - - - 24.22%
Benchmark #1 21.56% - - - - 16.99%
Benchmark #2 (1.49)% - - - - 7.06%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Portfolio inception dates are shown in Table 1.
<PAGE>
- -----
75
INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
TABLE 4
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/AGGRESSIVE STOCK 17.12% 26.37% 97.56% 300.04% - 907.17%
Lipper Mid-Cap Growth 51.65% 102.87% 158.98% 311.69% - 683.45%
Benchmark 18.09% 62.12% 147.96% 319.19% - 595.55%
ALLIANCE COMMON STOCK 23.38% 100.46% 220.74% 376.76% 2,102.68% 3,665.21%
Lipper Growth 29.78% 106.30% 216.51% 386.68% 1,816.52% 2,838.39%
Benchmark 21.03% 107.56% 251.12% 432.78% 2,584.39% 3,555.48%
ALLIANCE CONSERVATIVE INVESTORS 8.55% 36.01% 67.41% 123.19% - 129.28%
Lipper Income 4.42% 39.31% 91.71% 163.35% - 169.02%
Benchmark 4.19% 40.74% 89.21% 177.71% - 186.90%
ALLIANCE EQUITY INDEX 18.64% 95.77% 217.89% - - 217.43%
Lipper S&P 500 Index Funds 19.36% 99.37% 227.98% - - 242.77%
Benchmark 21.03% 107.56% 251.12% - - 253.66%
ALLIANCE GLOBAL 36.51% 80.19% 138.43% 276.09% - 342.49%
Lipper Global 44.62% 93.38% 162.57% 205.54% - 273.03%
Benchmark 24.93% 79.83% 146.35% 194.99% - 252.80%
ALLIANCE GROWTH AND INCOME 16.95% 74.09% 152.11% - - 145.50%
Lipper Growth & Income 12.90% 62.52% 157.04% - - 158.01%
Benchmark 20.71% 86.55% 205.26% - - 204.09%
ALLIANCE GROWTH INVESTORS 24.76% 67.36% 131.47% 315.58% - 330.68%
Lipper Flexible Portfolio 10.45% 49.38% 103.90% 204.29% - 211.11%
Benchmark 13.77% 76.71% 171.92% 309.28% - 352.50%
ALLIANCE HIGH YIELD (4.74)% 4.01% 48.99% 129.49% - 165.41%
Lipper High Yield 3.65% 15.25% 51.19% 151.82% - 166.74%
Benchmark #1 1.57% 18.80% 58.22% 178.72% - 245.03%
Benchmark #2 3.28% 17.00% 54.39% 185.43% - 246.92%
ALLIANCE INTERMEDIATE
GOVERNMENT SECURITIES (1.31)% 10.84% 26.65% - - 50.13%
Lipper U.S. Government (2.60)% 12.55% 32.56% - - 64.40%
Benchmark 0.49% 17.43% 39.81% - - 77.41%
ALLIANCE INTERNATIONAL 35.79% 41.35% - - - 67.58%
Lipper International 43.24% 69.17% - - - 103.07%
Benchmark 26.96% 55.06% - - - 79.52%
ALLIANCE MONEY MARKET 3.47% 11.62% 20.78% 43.42% - 142.62%
Lipper Money Market 3.78% 12.64% 22.65% 47.52% - 178.18%
Benchmark 4.74% 15.79% 28.88% 63.79% 229.35%
ALLIANCE QUALITY BOND (3.43)% 11.30% 33.34% - - 23.61%
Lipper Corporate Bond A-Rated (2.56)% 12.69% 37.39% - - 30.19%
Benchmark (0.82)% 18.20% 45.12% - - 40.97%
ALLIANCE SMALL CAP GROWTH 26.09% - - - - 49.24%
Lipper Small-Cap 34.26% - - - - 62.98%
Benchmark 43.09% - - - - 84.91%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
76
INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
TABLE 4 (CONTINUED)
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
SINCE
PORTFOLIO
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/BALANCED 16.09% 53.21% 99.12% 164.09% - 415.98%
Lipper Balanced 10.45% 49.38% 103.90% 204.29% - 335.16%
Benchmark 9.07% 58.00% 128.08% 240.54% - 558.00%
MFS EMERGING GROWTH COMPANIES 71.59% - - - - 176.97%
Lipper Mid-Cap 51.65% - - - - 120.85%
Benchmark 21.26% - - - - 52.05%
MFS RESEARCH 21.64% - - - - 71.70%
Lipper Growth 29.78% - - - - 101.13%
Benchmark 21.03% - - - - 90.75%
MERCURY BASIC VALUE EQUITY 17.51% - - - - 50.39%
Lipper Growth & Income 12.90% - - - - 56.85%
Benchmark 21.03% - - - - 90.75%
MERCURY WORLD STRATEGY 19.89% - - - - 31.43%
Lipper Global Flexible Portfolio 12.93% - - - - 35.69%
Benchmark 13.07% - - - - 49.16%
MORGAN STANLEY EMERGING MARKETS
EQUITY 93.40% - - - - 10.80%
Lipper Emerging Markets 82.53% - - - - 7.48%
Benchmark 66.41% - - - - 5.32%
EQ/PUTNAM BALANCED (1.16)% - - - - 24.00%
Lipper Balanced 8.69% - - - - 42.44%
Benchmark 11.39% - - - - 61.21%
EQ/PUTNAM GROWTH & INCOME VALUE (2.54)% - - - - 25.24%
Lipper Growth & Income 12.90% - - - - 56.85%
Benchmark 21.03% - - - - 90.75%
T. ROWE PRICE EQUITY INCOME 2.31% - - - - 33.58%
Lipper Equity Income 6.90% - - - - 43.31%
Benchmark 21.03% - - - - 90.75%
T. ROWE PRICE INTERNATIONAL STOCK 30.29% - - - - 43.00%
Lipper International 43.24% - - - - 65.44%
Benchmark 26.96% - - - - 56.70%
WARBURG PINCUS SMALL COMPANY
VALUE 0.58% - - - - 5.68%
Lipper Small-Cap 34.26% - - - - 83.94%
Benchmark #1 21.26% - - - - 52.05%
Benchmark #2 (1.49)% - - - - 19.99%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Portfolio inception dates are shown in Table 1.
<PAGE>
- -----
77
INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
TABLE 5
YEAR-BY-YEAR RATES OF RETURN
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
1990 1991 1992 1993
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQ/Aggressive Stock 5.52% 84.47% (4.61)% 15.08%
Alliance Common Stock (9.36)% 35.86% 1.72% 23.07%
Alliance Conservative Investors 4.88% 18.16% 4.27% 9.18%
Alliance Equity Index - - - -
Alliance Global (7.49)% 28.72% (1.96)% 30.27%
Alliance Growth and Income - - - (0.62)%+
Alliance Growth Investors 9.01% 46.85% 3.42% 13.63%
Alliance High Yield (2.54)% 22.72% 10.72% 21.42%
Alliance Intermediate Government
Securities - 10.88%+ 4.08% 9.01%
Alliance International - - - -
Alliance Money Market 6.80% 4.69% 2.07% 1.48%
Alliance Quality Bond - - - (0.87)%+
Alliance Small Cap Growth - - - -
EQ/Balanced (1.45)% 40.11% (4.26)% 10.71%
MFS Emerging Growth Companies - - - -
MFS Research - - - -
Mercury Basic Value Equity - - - -
Mercury World Strategy - - - -
Morgan Stanley Emerging Markets
Equity - - - -
EQ/Putnam Balanced - - - -
EQ/Putnam Growth & Income Value - - - -
T. Rowe Price Equity Income - - - -
T. Rowe Price International Stock - - - -
Warburg Pincus Small Company
Value - - - -
- -----------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/Aggressive Stock (5.24)% 29.81% 20.44% 9.20% (1.19)% 17.12%
Alliance Common Stock (3.58)% 30.61% 22.50% 27.37% 27.55% 23.38%
Alliance Conservative Investors (5.50)% 18.71% 3.68% 11.62% 12.25% 8.55%
Alliance Equity Index (0.14)%+ 34.60% 20.64% 30.69% 26.25% 18.64%
Alliance Global 3.71% 17.14% 12.96% 9.93% 20.07% 36.51%
Alliance Growth and Income (2.02)% 22.34% 18.37% 24.95% 19.13% 16.95%
Alliance Growth Investors (4.56)% 24.61% 10.99% 15.11% 16.54% 24.76%
Alliance High Yield (4.20)% 18.24% 21.15% 16.79% (6.51)% (4.74)%
Alliance Intermediate Government
Securities (5.77)% 11.73% 2.27% 5.76% 6.20% (1.31)%
Alliance International - 9.54%+ 8.23% (4.49)% 8.99% 35.79%
Alliance Money Market 2.53% 4.23% 3.81% 3.91% 3.82% 3.47%
Alliance Quality Bond (6.49)% 15.38% 3.84% 7.58% 7.13% (3.43)%
Alliance Small Cap Growth - - - 25.50%+ (5.69)% 26.09%
EQ/Balanced (9.38)% 18.07% 10.07% 13.35% 16.43% 16.09%
MFS Emerging Growth Companies - - - 21.45%+ 32.90% 71.59%
MFS Research - - - 15.12%+ 22.62% 21.64%
Mercury Basic Value Equity - - - 16.08%+ 10.24% 17.51%
Mercury World Strategy - - - 3.87%+ 5.54% 19.89%
Morgan Stanley Emerging Markets
Equity - - - (20.54)%+ (27.90)% 93.40%
EQ/Putnam Balanced - - - 13.56%+ 10.47% (1.16)%
EQ/Putnam Growth & Income Value - - - 15.28%+ 11.47% (2.54)%
T. Rowe Price Equity Income - - - 21.15%+ 7.76% 2.31%
T. Rowe Price International Stock - - - (2.30)%+ 12.33% 30.29%
Warburg Pincus Small Company
Value - - - 18.17%+ (11.09)% 0.58%
</TABLE>
- ----------
+ Returns for these portfolios represent less than 12 months of
performance. These returns are as of each portfolio inception date as
shown in Table 1.
<PAGE>
- ----------
78
INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
COMMUNICATING PERFORMANCE DATA
In reports or other communications to contract owners or in advertising
material, we may describe general economic and market conditions affecting our
variable investment options, and the portfolios and may compare the performance
or ranking of those options and the portfolios with:
o those of other insurance company separate accounts or mutual funds included
in the rankings prepared by Lipper Analytical Services, Inc., Morningstar,
Inc., VARDS, or similar investment services that monitor the performance
of insurance company separate accounts or mutual funds;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective contract owners advertisements
or other communications that include evaluations of a variable investment
option or portfolio by nationally recognized financial publications. Examples
of such publications are:
- --------------------------------------------------------------------------------
Barron's Money Management Letter
Morningstar's Variable Annuity Investment Dealers Digest
Sourcebook National Underwriter
Business Week Pension & Investments
Forbes USA Today
Fortune Investor's Business Daily
Institutional Investor The New York Times
Money The Wall Street Journal
Kiplinger's Personal Finance The Los Angeles Times
Financial Planning The Chicago Tribune
Investment Adviser
Investment Management Weekly
- --------------------------------------------------------------------------------
Lipper compiles performance data for peer universes of funds with similar
investment objectives in its Lipper Survey. Morningstar, Inc. compiles similar
data in the Morningstar Variable Annuity/Life Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800
mutual funds underlying variable annuity and life insurance products. It
divides these actively managed portfolios into 25 categories by portfolio
objectives. The Lipper Survey contains two different universes, which reflect
different types of fees in performance data:
o The "separate account" universe reports performance data net of investment
management fees, direct operating expenses and asset-based charges
applicable under variable life and annuity contracts; and
o The "mutual fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects only
charges that relate to the underlying mutual fund.
The Morningstar Variable Annuity/Life Report consists of nearly 700 variable
life and annuity funds, all of which report their data net of investment
management fees, direct operating expenses and separate account level charges.
VARDS is a monthly reporting service that monitors approximately 2,500
variable life and variable annuity funds on performance and account
information.
YIELD INFORMATION
Current yield for the Alliance Money Market option will be based on net
changes in a hypothetical investment over a given seven-day period, exclusive
of capital changes, and then "annualized" (assuming that the same seven-day
result would occur each week for 52 weeks). Current yield for the other
options will be based on net changes in a hypothetical investment over a given
30-day period, exclusive of capital changes, and then "annualized" (assuming
that the same 30-day result would occur each month for 12 months).
"Effective yield" is calculated in a similar manner, but when annualized, any
income earned by the investment is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because any earnings
are compounded weekly for the Alliance Money Market option. The current yields
and effective yields assume the deduction of all current contract charges and
expenses other than the withdrawal charge, the annual administrative charge,
<PAGE>
- ----------
79
INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
optional ratcheted death benefit charge, and any charge designed to
approximate certain taxes that may be imposed on us, such as premium taxes in
your state. For more information, see "Alliance Money Market Option yield
information" and "Other yield information" in the SAI.
<PAGE>
10
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
- ----------------
80
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
- --------------------------------------------------------------------------------
Equitable Life's Annual Report on Form 10-K for the year ended December 31,
1999, is considered to be a part of this prospectus because it is incorporated
by reference.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the
SEC under the Securities Exchange Act of 1934 ("Exchange Act"), will be
considered to become part of this prospectus because they are incorporated by
reference.
Any statement contained in a document that is or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of
its incorporation, will be considered changed or replaced for the purpose of
this prospectus if a statement contained in any other subsequently filed
document that is considered to be part of this prospectus changes or replaces
that statement. After that, only the statement that is changed or replaced
will be considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to
EDGAR under CIK No. 0000727920. The SEC maintains a Web site that contains
reports, proxy and information statements and other information regarding
registrants that file electronically with the SEC. The address of the site is
http://www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this prospectus is delivered a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to The
Equitable Life Assurance Society of the United States, 1290 Avenue of the
Americas, New York, New York 10104. Attention: Corporate Secretary (telephone:
(212) 554-1234).
<PAGE>
APPENDIX I: CONDENSED FINANCIAL INFORMATION
- --------
A-1
APPENDIX I: CONDENSED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below, as of December 31,
1999, are for contracts offered under Separate Account A with the same asset
based charge of 1.20%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DECEMBER 31,
1999
- --------------------------------------------------------------------------------
<S> <C>
EQ/AGGRESSIVE STOCK
Unit value $105.70
Number of units outstanding (000's) 17
ALLIANCE COMMON STOCK
Unit value $126.92
Number of units outstanding (000's) 105
ALLIANCE CONSERVATIVE INVESTORS
Unit value $111.53
Number of units outstanding (000's) 6
ALLIANCE EQUITY INDEX
Unit value $123.02
Number of units outstanding (000's) 50
ALLIANCE GLOBAL
Unit value $134.29
Number of units outstanding (000's) 20
ALLIANCE GROWTH AND INCOME
Unit value $120.14
Number of units outstanding (000's) 37
ALLIANCE GROWTH INVESTORS
Unit value $127.17
Number of units outstanding (000's) 21
ALLIANCE HIGH YIELD
Unit value $ 84.97
Number of units outstanding (000's) 5
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
Unit value $101.97
Number of units outstanding (000's) 1
ALLIANCE INTERNATIONAL
Unit value $126.30
Number of units outstanding (000's) 3
- --------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-2
APPENDIX I: CONDENSED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT
OPTION (CONTINUED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
DECEMBER 31,
1999
- -------------------------------------------------------------------------------
<S> <C>
ALLIANCE MONEY MARKET
Unit value $105.21
Number of units outstanding (000's) 17
EQ/ALLIANCE PREMIER GROWTH
Unit value $116.42
Number of units outstanding (000s) 36
ALLIANCE QUALITY BOND
Unit value $100.07
Number of units outstanding (000's) 4
ALLIANCE SMALL CAP GROWTH
Unit value $109.62
Number of units outstanding (000's) 2
EQ/BALANCED
Unit value $118.36
Number of units outstanding (000's) 11
CAPITAL GUARDIAN RESEARCH
Unit value $106.84
Number of units outstanding (000s) 1
CAPITAL GUARDIAN U.S. EQUITY
Unit value $101.69
Number of units outstanding (000s) 1
EQ/EVERGREEN
Unit value $106.63
Number of units outstanding (000's) -
EQ/EVERGREEN FOUNDATION
Unit value $105.21
Number of units outstanding (000's) -
MFS EMERGING GROWTH COMPANIES
Unit value $177.65
Number of units outstanding (000's) 36
MFS GROWTH WITH INCOME
Unit value $104.53
Number of units outstanding (000's) 2
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -----
A-3
APPENDIX I: CONDENSED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT
OPTION (CONTINUED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
DECEMBER 31,
1999
- -------------------------------------------------------------------------------
<S> <C>
MFS RESEARCH
Unit value $120.55
Number of units outstanding (000's) 6
MERCURY BASIC VALUE EQUITY
Unit value $115.06
Number of units outstanding (000's) 7
MERCURY WORLD STRATEGY
Unit value $113.85
Number of units outstanding (000's) 1
MORGAN STANLEY EMERGING MARKETS EQUITY
Unit value $157.61
Number of units outstanding (000's) 3
EQ/PUTNAM BALANCED
Unit value $ 99.99
Number of units outstanding (000's) 3
EQ/PUTNAM GROWTH & INCOME VALUE
Unit value $ 98.04
Number of units outstanding (000's) 3
T. ROWE PRICE EQUITY INCOME
Unit value $103.45
Number of units outstanding (000's) 3
T. ROWE PRICE INTERNATIONAL STOCK
Unit value $122.67
Number of units outstanding (000's) 3
WARBURG PINCUS SMALL COMPANY VALUE
Unit value $ 83.36
Number of units outstanding (000's) 1
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
APPENDIX II: MARKET VALUE ADJUSTMENT EXAMPLE
- --------
B-1
APPENDIX II: MARKET VALUE ADJUSTMENT EXAMPLE
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 had been
invested on June 15, 2001 to a fixed maturity option with a maturity date of
June 15, 2010 (i.e., nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value at the maturity date of $183,846. We
further assume that a withdrawal of $50,000 is made four years later, on June
15, 2005.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
HYPOTHETICAL ASSUMED
RATE TO MATURITY ON
JUNE 15, 2005
---------------------
5.00% 9.00%
- -------------------------------------------------------------------------------------------
<S> <C> <C>
AS OF JUNE 15, 2005 (BEFORE WITHDRAWAL)
(1) Market adjusted amount $144,048 $ 119,487
(2) Fixed maturity amount $131,080 $ 131,080
(3) Market value adjustment:
(1) - (2) $ 12,968 $ (11,593)
ON JUNE 15, 2005 (AFTER WITHDRAWAL)
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,501 $ (4,851)
(5) Reduction in fixed maturity amount
[$50,000 - (4)] $ 45,499 $ 54,851
(6) Fixed maturity amount (2) - (5) $ 85,581 $ 76,229
(7) Maturity value $120,032 $ 106,915
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
- -------------------------------------------------------------------------------------------
</TABLE>
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a negative market value
adjustment is realized. On the other hand, if a withdrawal is made when rates
have decreased from 7.00% to 5.00% (left column), a positive market value
adjustment is realized.
<PAGE>
APPENDIX III: DEATH BENEFIT EXAMPLE
- --------
C-1
APPENDIX III: DEATH BENEFIT EXAMPLE
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to (i) the account value or,
(ii) the minimum death benefit (contributions, less withdrawals, and any
withdrawal charges and taxes that may apply) or, if elected, (iii) the optional
ratcheted death benefit, whichever provides the highest amount.
The following illustrates the death benefit calculation. Assuming $100,000 is
allocated to the variable investment options, no additional contributions, no
transfers and no withdrawals, the death benefit for an annuitant age 45 would
be calculated as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
END OF
CONTRACT RATCHETED
YEAR ACCOUNT VALUE(1) CONTRIBUTION DEATH BENEFIT
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
1 $105,000(2) $100,000 $100,000
2 $115,500(2) $100,000
3 $129,360(2) $129,360(2)
4 $103,488 $129,360(3)
5 $113,837 $129,360(3)
6 $127,497 $129,360(3)
7 $127,497 $129,360(3)
8 $133,872(2) $129,360
9 $147,259 $147,259(4)
- --------------------------------------------------------------------------------
</TABLE>
The account values for contract years 1 through 9 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00%, 0.00%, 5%
and 10%. We are using these rates solely to illustrate how the benefit is
determined. The return rates bear no relationship to past or future investment
results.
(1) If the optional ratcheted death benefit was not elected, the death
benefit on each contract date anniversary would be equal to the account
value, since it is higher than the contribution.
(2) If the optional ratcheted death benefit was elected at the end of
contract year 1, 2, 3 and 8, the death benefit will be equal to the
account value. Also in year 3, the ratcheted death benefit is increased
to equal the account value.
(3) At the end of contract years 4, 5, 6 and 7, the death benefit would be
equal to the ratcheted death benefit since it is higher than the account
value. Also, at the end of contract year six, no adjustment would be made
to the ratcheted death benefit, since the ratcheted death benefit is
higher than the account value.
(4) At the end of contract year 9, the ratcheted death benefit would be
increased to the account value, since the account value on the contract
date anniversary is higher than the current ratcheted death benefit.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
- --------
STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
PAGE
Required minimum distributions option 2
Calculation of annuity payments 3
Alliance Money Market option yield information 4
Other yield information 5
Financial statements 5
HOW TO OBTAIN AN EQUI-VEST STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE
ACCOUNT A
Call 1-800-628-6673 or send this request form to:
EQUI-VEST
Processing Office
The Equitable Life
P.O. Box 2996
New York, NY 10116-2996
- --------------------------------------------------------------------------------
Please send me an EQUI-VEST Statement of Additional Information dated May 1,
2000. (Combination variable and fixed deferred annuity)
- ------------------------------------------------------------------------------
Name:
- ------------------------------------------------------------------------------
Address:
- ------------------------------------------------------------------------------
City State Zip
SAI (05/00)
888-1260
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 15. Indemnification of Directors and Officers
-----------------------------------------
Equitable Life's By-Laws provide, in Article VII, as follows:
7.4 Indemnification of Directors, Officers and Employees.
-----------------------------------------------------
(a) To the extent permitted by the law of the State of
New York and subject to all applicable requirements
thereof:
(i) any person made or threatened to be made a party to
any action or proceeding, whether civil or criminal,
by reason of the fact that he or she, or his or her
testator or intestate, is or was a director, officer
or employee of the Company shall be indemnified by
the Company;
(ii) any person made or threatened to be made a party to
any action or proceeding, whether civil or criminal,
by reason of the fact that he or she, or his or her
testator or intestate serves or served any other
organization in any capacity at the request of the
Company may be indemnified by the Company; and
(iii) the related expenses of any such person in any of
said categories may be advanced by the Company
(b) To the extent permitted by the law of the
State of New York, the Company may provide
for further indemnification or advancement
of expenses by resolution of shareholders of
the Company or the Board of Directors, by
amendment of these By-Laws, or by agreement.
{Business Corporation Law ss.ss. 721 -726;
Insurance Law ss.1216}
The directors and officers of Equitable Life are insured under
policies issued by Lloyd's of London, X. L. Insurance Company
and ACE Insurance Company. The annual limit on such policies is
$100 million, and the policies insure the officers and directors
against certain liabilities arising out of their conduct in such
capacities.
Item 16. Exhibits
--------
Exhibits No.
------------
(1) (a) Distribution and Servicing Agreement among
Equico Securities, Inc. (now AXA Advisors,
LLC), Equitable and Equitable Variable
Life Insurance Company, dated as of May 1,
1994, incorporated by reference to Exhibit
3.(c) to Registration Statement File
No. 2-30070, previously filed on February
14, 1995, refiled electronically on July 10,
1998.
II-1
<PAGE>
(b) Sales Agreement dated as of January 1, 1995
by and among Equico Securities, Inc. (now
AXA Advisors, LLC), Equitable, Separate
Account A, Separate Account No. 301 and
Separate Account No. 51, previously filed as
Exhibit 1(c) to this Registration Statement
No. 33-89510 on April 24, 1995, incorporated
by reference to Exhibit 3(e) to Registration
Statement File No. 2-30070, filed
electronically July 10, 1998.
(c) Participation Agreement among EQ Advisors
Trust, The Equitable Life Assurance Society
of the United States, Equitable
Distributors, Inc. and EQ Financial
Consultants, Inc. (now AXA Advisors, LLC),
dated as of the 14th day of April 1997,
incorporated by reference to the
Registration Statement of EQ Advisors Trust
(File No. 333-17217) on Form N-1A, filed
August 28, 1997.
(2) Not applicable.
(4) (a) Form of group annuity contract no.
1050-94IC, previously filed with this
Registration Statement No. 33-89510 on April
24, 1995, incorporated herein by reference
to Exhibit 4(f) to Registration Statement
File No. 2-30070, refiled electronically
July 10, 1998.
(b) Form of group annuity certificate nos. 94ICA
and 94ICB, previously filed with this
Registration Statement No. 33-89510 on April
24, 1995, incorporated herein by reference
to Exhibit 4(g) to Registration Statement
File No. 2-30070, refiled electronically
July 10, 1998.
(c) Forms of endorsement nos. 94ENIRAI, 94ENNQI
and 94ENMVAI to contract no. 1050-94IC,
previously filed with this Registration
Statement No. 33-89510 on April 24, 1995,
incorporated herein by reference to Exhibit
4(h) to Registration Statement File No.
2-30070, refiled electronically July 10,
1998.
(d) Forms of data pages to endorsement nos.
94ENIRAI, 94ENNQI and 94ENMVAI, previously
filed with this Registration Statement No.
33-89510 on April 24, 1995, incorporated
herein by reference to Registration
Statement File No. 2-30070, refiled
electronically July 10, 1998.
(e) Form of application used with the annuity
contract identified above, previously filed
with this Registration Statement No.
33-89510 on April 26, 1996.
(f) Form of data pages for standard Roth IRA
Certificates, incorporated herein by
reference to Exhibit 4(m) to the
Registration Statement on Form N-4, File No.
2-30070, filed June 9, 1998.
(g) Form of endorsement for standard Roth IRA
Certificates, incorporated herein by
reference to Exhibit 4(n) to the
Registration Statement on Form N-4, File No.
2-30070, filed June 9, 1998.
(h) Form of data pages for Roth Advantage
Certificates, incorporated herein by
reference to Exhibit 4(o) to the
Registration Statement on Form N-4, File No.
2-30070, filed June 9, 1998.
(i) Form of endorsement for Roth Advantage
Certificates, incorporated herein by
reference to Exhibit 4(p) to the
Registration Statement on Form N-4, File No.
2-30070, filed June 9, 1998.
(j) Form of data pages for EQUI-VEST Express No.
94ICA/B (8/99), incorporated herein by
reference to Exhibit No. 4(g) to the
Registration Statement File No. 333-81393,
filed on Form N-4 on June 23, 1999.
(k) Form of data pages for EQUI-VEST Tax
Deferred Variable Annuity Application Form
#180-1009, incorporated herein by
reference to Exhibit No. 5(a) to the
Registration Statement File No. 333-81393,
filed on Form N-4 on June 23, 1999.
(l) Form of Guaranteed Death Benefit Rider,
Form No. 99GDB, incorporated herein by
reference to Exhibit No. 4(g) to
Registration Statement File No. 333-81501
filed on Form N-4 on June 24, 1999.
(m) Form of EQUI-VEST data pages, Form No.
94ICA/B (8/99), incorporated herein by
reference to Exhibit No. 4(h) to
Registration Statement File No. 333-81501
filed on Form N-4 on June 24, 1999.
(n) Form of endorsement -- EQUI-VEST Beneficiary
Continuation Option (for use with IRA
contracts).
(5) (a) Opinion and Consent of Jonathan E. Gaines,
Esq., Vice President and Associate
General Counsel of Equitable, as to the
legality of the securities being registered,
previously filed with this Registration No.
33-89510 on February 14, 1995, refiled
electronically, July 10, 1998.
(b) Copies of the Internal Revenue Service
determination letters regarding
qualification under Section 408 of the
Internal Revenue Code, previously filed with
this Registration Statement No. 33-89510 on
April 26, 1996.
(c) Form of application for use with standard
IRA Certificates and Roth Advantage
Certificates, incorporated herein by
reference to Exhibit No. 5(c) to the
Registration Statement on Form N-4, File No.
2-30070, filed June 9, 1998.
(d) Form of EQUI-VEST(R) Tax-Deferred Variable
Individual Annuity Application, Form No.
180-1009, incorporated herein by reference
to Exhibit No. 5(a) to Registration
Statement File No. 333-81501, filed on
Form N-4 on June 24, 1999.
(8) Not applicable.
(12) Not applicable.
(15) Not applicable.
(23) Consent of PricewaterhouseCoopers LLP.
II-2
<PAGE>
(26) Not applicable.
(27) Not applicable.
(28) Not applicable.
Item 17. Undertakings
------------
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers
or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus
required by section 10(a)(3) of
the Securities Act of 1933;
(ii) to reflect in the Prospectus any
facts or events arising after the
effective date of the
registration statement (or the
most recent post-effective
amendment thereof) which,
individually or in the aggregate,
represent a fundamental change in
the information set forth in the
registration statement;
(iii) To include any material
information with respect to the
plan distribution not previously
disclosed in the registration
statement of or any material
change to such information in the
registration statement;
The directors and officers of Equitable Life are insured under
Policies issued by Lloyd's of London, X.L. Insurance Company
and Ace Insurance Company. The annual limit on such policies
is $100 million, and the policies insure the officers and
directors against certain liabilities arising out of their
conduct in such capacities.
(2) That, for the purpose of determining any
liability under the Securities Act of 1933,
each such post-effective amendment shall be
deemed to be a new registration statement
relating to the securities offered therein,
and the offering of such securities at that
time shall be deemed to be the initial bona
fide offering thereof;
(3) To remove from registration by means of a
post-effective amendment any of the
securities being registered which remain
unsold at the termination of the offering.
(b) The undersigned registrant hereby undertakes that,
for purposes of determining any liability under the
Securities Act of 1933, each filing of the
registrant's annual report pursuant to Section 13(a)
or 15(d) of the Securities Exchange Act of 1934 that
is incorporated by reference in the registration
statement shall be deemed to be a new registration
statement relating to the securities offered therein,
and the offering of such securities at that time
shall be deemed to be the initial bona fide offering
thereof.
(c) Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to
directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission
such indemnification is against public policy as
expressed in the Act and is, therefore,
unenforceable. In the event that claim for
indemnification against such liabilities (other than
the payment by the registrant of expenses incurred or
paid by a director, officer or controlling person of
the registrant in the successful defense of any
action, suit or proceeding) is asserted by such
director, officer or controlling person in connection
with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question
whether such indemnification by it is against public
policy as expressed in the Act and will be governed
by the final adjudication of such issue.
II-3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this amendment to
the Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City and State of New York, on April 24, 2000.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE
UNITED STATES
(Registrant)
By: /s/ Naomi J. Weinstein
----------------------
Naomi J. Weinstein
Vice President
Pursuant to the requirements of the Securities Act of 1933, this
amendment to the Registration Statement has been signed by or on behalf of the
following persons in the capacities and on the date indicated.
PRINCIPAL EXECUTIVE OFFICERS:
*Michael Hegarty President, Chief Operating Officer and
Director
*Edward D. Miller Chairman of the Board, Chief Executive
Officer and Director
PRINCIPAL FINANCIAL OFFICER:
*Stanley B. Tulin Vice Chairman of the Board,
Chief Financial Officer and Director
PRINCIPAL ACCOUNTING OFFICER:
*Alvin H. Fenichel Senior Vice President and
Controller
*DIRECTORS:
Francoise Colloc'h Donald J. Greene George T. Lowy
Henri de Castries John T. Hartley Edward D. Miller
Joseph L. Dionne John H.F. Haskell, Jr. Didier Pineau Valencienne
Denis Duverne Michael Hegarty George J. Sella, Jr.
Jean-Rene Fourtou Mary R. (Nina) Henderson Peter J. Tobin
Norman C. Francis W. Edwin Jarmain Stanley B. Tulin
Dave H. Williams
*By: /s/ Naomi J. Weinstein
- ---------------------------
Naomi J. Weinstein
Attorney-in-Fact
April 24, 2000
II-4
<PAGE>
EXHIBIT LIST
Exhibit No. TAG VALUE
- ----------- ---------
4(n) Form of Endorsement--Beneficiary EX-99.4n
Continuation Option (IRA).
23 Consent of PricewaterhouseCoopers LLP. EX-99.23
24(b) Power of Attorney. EX-99.24b
23959
II-5
ENDORSEMENT
In this Endorsement "you" or "your" means the Owner of the Contract at the time
an owner's right is exercised.
Effective immediately, the Equitable hereby amends your Contract as follows:
SECTION 1.01 "ANNUITANT" IS AMENDED AS FOLLOWS:
The term "Annuitant" means the individual on whose life this Contract is based.
The Annuitant is the owner of this Contract.
SECTION 1.07 "CODE" IS AMENDED AS FOLLOWS:
The term "Code" means the Internal Revenue Code of 1986, as now or hereafter
amended, or any corresponding provisions of prior or subsequent United States
revenue laws, and includes applicable tax regulations.
SECTION 1.20 "RETIREMENT DATE." THE THIRD SENTENCE IS REPLACED WITH THE
FOLLOWING:
You may not choose a Retirement Date later than the maximum maturity age,
currently age 90, unless state law requires a different age. If you choose a
Retirement Date later than age 70 1/2, you must make withdrawals as set forth
under Section 3.05 of this Contract in an amount at least equal to the minimum
distributions required under the Code.
SECTION 2.11 "DEATH BENEFIT." THE FOLLOWING IS ADDED AFTER THE 3RD PARAGRAPH:
Under either of the following two circumstances, the death benefit described in
Section 2.11 of the Contract will not be paid at your death before the
Retirement Date and the coverage under this Contract will continue if:
a. You are married at the time of your death and the person named as your
beneficiary under Section 4.04 of the Contract is your surviving
spouse; and
b. Your surviving spouse elects to become "Successor Annuitant and Owner"
of your Contract.
Also, a death benefit will not be paid under this Section 2.11 if the
"Beneficiary Continuation Option" under Section 2.12 is in effect.
SECTION 2.12 "BENEFICIARY CONTINUATION OPTION." THIS SECTION IS ADDED TO YOUR
CONTRACT:
This Section 2.12 will apply only if you die before the Retirement Date, and the
beneficiary named pursuant to Section 4.04 of the Contract is an individual.
If there is more than one beneficiary, and any beneficiary is not an individual,
then this Section 2.12 does not apply, and the death benefit described in
Section 2.11 of the Contract is payable.
2000ENIRA-BCO 1 of 5
<PAGE>
If this Section 2.12 applies and there is more than one beneficiary, the Annuity
Account Value will be apportioned among your beneficiaries as you designate
pursuant to Section 4.04 of the Contract.
If you die after your Required Beginning Date for required minimum distribution
payments, as described below in Subsection A of Section 3.05 of the Contract as
amended by this Endorsement (Minimum Distribution Rules-Required Payments During
Your Life) and such required minimum distribution payments have not commenced
under this Contract, the death benefit as described in Section 2.11 will be paid
in a lump sum and this Section 2.12 does not apply unless prior to your death
you have notified us in accordance with our procedures then in effect that the
beneficiary named pursuant to 4.04 of the Contract is also the designated
beneficiary for purposes of "Minimum Distribution Rules-Required Payments During
Your Life" described in Subsection A of Section 3.05 of your Contract.
If the beneficiary qualifies to continue your Contract and we receive the
beneficiary's election within 60 days of receipt of proof of your death, the
beneficiary may continue your Contract pursuant to this Section 2.12 under the
terms set forth in (a) through (g) below. Your Contract may be continued by one
or more beneficiaries (collectively, the "Continuation Beneficiary"). If there
is more than one beneficiary, the election must be provided to us within 60 days
by each beneficiary with respect to that beneficiary's portion of the Annuity
Account Value. For any beneficiary who does not so timely elect, we will pay
that beneficiary's share of the death benefit pursuant to Section 2.11 of the
Contract in a lump sum:
a. the Continuation Beneficiary will automatically become the Annuitant
as defined in Section 1.01 of the Contract as amended by this
Endorsement with respect to that Continuation Beneficiary's portion of
the Annuity Account Value.
b. the Continuation Beneficiary will have the same right to transfer
amounts among the Investment Divisions as the Annuitant.
c. the Continuation Beneficiary cannot make any additional contributions.
d. distributions to the Continuation Beneficiary will be made in
accordance with requirements described in Subsection B of Section 3.05
as amended by this Endorsement (Minimum Distributions Rules--Required
Payments After Death). If there is more than one beneficiary, and any
Continuation Beneficiary requests payment pursuant to Subsection B(1)
of Section 3.05 of the Contract, then all Continuation Beneficiaries
must agree to make this payment election. If all Continuation
Beneficiaries cannot so agree, then we will instead make a complete
distribution of your entire interest no later than December 31st of
the calendar year that contains the fifth anniversary of your death.
Further, where payment pursuant to Subsection B(1) of Section 3.05 of
the Contract is elected by all Continuation Beneficiaries, the Annuity
Account Value apportioned to each Continuation Beneficiary is
distributed based upon the life expectancy of the oldest of the
beneficiaries designated under Section 4.04 of the Contract, even if
that individual does not elect to be a Continuation Beneficiary.
e. the Continuation Beneficiary may withdraw the Annuity Account Value
apportioned to such Continuation Beneficiary at any time; withdrawals
made
2000ENIRA-BCO 2 of 5
<PAGE>
after we have received a Continuation Beneficiary's election to
continue this Contract are not subject to a withdrawal charge.
f. upon the Continuation Beneficiary's death, we will make a lump sum
payment (other payment options are not available) to the person
designated by the deceased Continuation Beneficiary to receive that
deceased Continuation Beneficiary's portion of the Annuity Account
Value, if any remains.
g. the Contract cannot be assigned and must continue in your name for
benefit of your Continuation Beneficiary.
THE TITLE OF SECTION 3.05 AND THE FIRST SEVEN PARAGRAPHS OF THE CONTRACT ARE
DELETED AND REPLACED WITH THE FOLLOWING:
"Required Minimum Distribution Rules and Payment of Annuity Benefits."
This Contract is subject to these "Required Minimum Distribution Rules " of
Sections 408(b) and 401(a)(9) of the Code and the Treasury Regulations that
apply.
A. MINIMUM DISTRIBUTION RULES -- REQUIRED PAYMENTS DURING YOUR LIFE -
Your entire interest in this Contract will be distributed or begin to
be distributed no later than the first day of April following the
calendar year in which you attain age 70 1/2 ( "Required Beginning
Date "). Your entire interest may be distributed, as you elect, over
(a) your life, or the lives of you and your designated beneficiary, or
(b) a period certain not extending beyond your life expectancy, or the
joint and last survivor expectancy for you and your designated
beneficiary. Distributions must be made in periodic payments at
intervals of no longer than one year. In addition, payments must be
either non-increasing or they may increase only as provided in Q & A
F-3 of Section 1.401(a)(9)-1 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
All distributions made under this Contract must be made in accordance
with the requirements of Sections 408(b) and 401(a)(9) of the Code,
including the incidental death benefit requirements of Section
401(a)(9)(G) of the Code, and applicable Treasury Regulations,
including the minimum distribution incidental benefit requirements of
Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or any
successor Regulation thereto.
For purposes of determining the "period certain" referred to in the
first paragraph of this Section, life expectancy is computed by use of
the expected return multiples in Tables V and VI of Treasury
Regulation Section 1.72-9. Unless you otherwise elect prior to the
time distributions are required to begin, life expectancies will be
recalculated annually. Such election will be irrevocable and will
apply to all subsequent years. The life expectancy of a non-spouse
beneficiary may not be recalculated. Instead, life expectancy will be
calculated using the attained age of such beneficiary during the
calendar year in which you attain age 70 1/2, and payments for
subsequent years will be calculated based on such life expectancy
reduced by one for each calendar year which has elapsed since the
calendar year life expectancy was first calculated.
2000ENIRA-BCO 3 of 5
<PAGE>
B. MINIMUM DISTRIBUTION RULES - REQUIRED PAYMENTS AFTER DEATH - If you
die after distribution of your interest in this Contract has begun,
the remaining portion of such interest will continue to be distributed
at least as rapidly as under the method of distribution being used
prior to your death.
If you die before distribution of your interest in this Contract
begins, distribution of your entire interest will be completed no
later than December 31 of the calendar year containing the fifth
anniversary of your death, except to the extent that an election is
made to receive distributions after your death in accordance with the
following alternate form of distribution in (1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then
your entire interest may be distributed over the life of, or over
a period certain not greater than the life expectancy of, the
designated beneficiary. Such distributions must commence on or
before December 31 of the calendar year immediately following the
calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date
that distributions are required to begin in accordance with (1)
above shall not be earlier than the later of (a) December 31 of
the calendar year immediately following the calendar year of your
death or (b) December 31 of the calendar year in which you would
have attained age 70 1/2.
If the designated beneficiary is your surviving spouse, and a
Successor Annuitant and Owner option (described in Section 2.11 as
amended by this Endorsement) is elected, the distribution of your
interest need not be made until after your spouse's death.
For purposes of determining the "period certain" referred to above,
life expectancy is computed by use of the expected return multiples in
Table V and VI of Treasury Regulation Section 1.72-9. For purposes of
distributions beginning after your death, unless otherwise elected by
the surviving spouse by the time distributions are required to begin,
life expectancies will be recalculated annually. Such election will be
irrevocable by the surviving spouse and will apply to all subsequent
years. In the case of any other designated beneficiary, life
expectancies will be calculated using the attained age of such
beneficiary during the calendar year in which distributions are
required to begin, pursuant to this Section 3.05 as amended by this
Endorsement and payments for any subsequent calendar year will be
calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life
expectancy was first calculated.
Distributions under this Section 3.05 are considered to have begun if
distributions are made because you have reached your Required
Beginning Date, or if prior to the Required Beginning Date,
distributions irrevocably commence to you over a period permitted and
in any annuity form acceptable under Section 1.401(a)(9)-1 of the
Proposed Treasury Regulations or any successor Regulation thereto.
2000ENIRA-BCO 4 of 5
<PAGE>
SECTION 4.04 "BENEFICIARY." THE THIRD PARAGRAPH IS REPLACED WITH THE FOLLOWING:
Any part of a death benefit payable pursuant to Section 2.11 for which there is
no designated beneficiary living at your death will be payable in a single sum
to your surviving spouse, if any; if there is no surviving spouse, then to your
children who survive you, in equal shares; or if there are no children, then to
your estate.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
/s/ Edward Miller /s/ Pauline Sherman
Edward Miller Pauline Sherman
Chairman and Chief Executive Officer Vice President, Secretary and Associate
General Counsel
2000ENIRA-BCO 5 of 5
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in each Prospectus
constituting part of Post-Effective Amendment No. 8 to the Registration
Statement No. 33-89510 on Form S-3 of our report dated February 1, 2000
appearing on page F-1 of The Equitable Life Assurance Society of the United
States' Annual Report on Form 10-K for the year ended December 31, 1999. We also
consent to the incorporation by reference of our report on the Consolidated
Financial Statement Schedules dated February 1, 2000 which appears on page F-47
of such Annual Report on Form 10-K. We also consent to the references to us
under the heading "independent accountants" in each Prospectus.
PricewaterhouseCoopers LLP
New York, New York
April 26, 2000
POWER OF ATTORNEY
-----------------
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of the Registration Statement No. 2-30070 (the "Registration
Statement") on Form N-4 that this Post-Effective Amendment No. 66 amends of (1)
our report dated February 1, 2000 relating to the financial statements of
Separate Account A of The Equitable Life Assurance Society of the United States
for the year ended December 31, 1999, and (2) our report dated February 1, 2000
relating to the consolidated financial statements of The Equitable Life
Assurance Society of the United States for the year ended December 31, 1999,
which reports appear in the Statements of Additional Information, and to the
incorporation by reference of our reports into the Prospectuses which constitute
part of this Registration Statement. We also consent to the incorporation by
reference in the Prospectuses of our reports dated February 1, 2000 appearing on
page F-I and page F-47 of The Equitable Life Assurance Society of the United
States' Annual Report on Form 10-K for the year ended December 31, 1999. We also
consent to the references to us under the headings "About Our Independent
Accountants" in the Prospectuses and "Custodian and Independent Accountants" in
the Statements of Additional Information.
/s/ PricewaterhouseCoopers, LLP
PricewaterhouseCoopers, LLP
New York, New York
April 26, 2000
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Francoise Colloc'h
----------------------------------
Francoise Colloc'h
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Norman C. Francis
----------------------------------
Norman C. Francis
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Michael Hegarty
----------------------------------
Michael Hegarty
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Edward Miller
----------------------------------
Edward Miller
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Denis Duverne
----------------------------------
Denis Duverne
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Donald J. Greene
----------------------------------
Donald J. Greene
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ George T. Lowy
----------------------------------
George T. Lowy
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Peter J. Tobin
----------------------------------
Peter J. Tobin
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Joseph L. Dionne
----------------------------------
Joseph L. Dionne
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ John T. Hartley
----------------------------------
John T. Hartley
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ John H.F. Haskell, Jr.
----------------------------------
John H.F. Haskell, Jr.
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
5th day of April, 2000.
/s/ Dave H. Williams
----------------------------------
Dave H. Williams
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Mary B. (Nina) Henderson
----------------------------------
Mary B. (Nina) Henderson
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
4th day of April, 2000.
/s/ George J. Sella, Jr.
----------------------------------
George J. Sella, Jr.
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ W. Edwin Jarmain
----------------------------------
W. Edwin Jarmain
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
13th day of April, 2000.
/s/ Alvin H. Fenichel
----------------------------------
Alvin H. Fenichel
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
13th day of April, 2000.
/s/ Jean-Rene Fourtou
----------------------------------
Jean-Rene Fourtou
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Stanley B. Tulin
----------------------------------
Stanley B. Tulin
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
4th day of April, 2000.
/s/ Henri de Castries
----------------------------------
Henri de Castries
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
10th day of April, 2000.
/s/ Didier Pineau Valencienne
----------------------------------
Didier Pineau Valencienne
Rev. 2/2000
122055
