Cover Page 424(b)(3)
333-24009
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Equitable Accumulator
Select (SM)
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 EQ Advisors Trust, which contains important information about its
portfolios.
PROSPECTUS DATED MAY 1, 2000
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WHAT IS THE EQUITABLE ACCUMULATOR SELECT?
Equitable Accumulator Select 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 offers income
and death benefit protection. It also offers 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 fixed maturity options ("investment options").
There is no withdrawal charge under the contract. However, we deduct a
distribution charge calculated as a percentage of the amounts in the variable
investment options. We deduct this charge for the life of the contract. This
contract is not available in New York.
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VARIABLE INVESTMENT OPTIONS
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o EQ/Aggressive Stock(1) o J.P. Morgan Core Bond(3)
o Alliance Common Stock o Lazard Large Cap Value
o Alliance High Yield o Lazard Small Cap Value
o Alliance Money Market o MFS Emerging Growth
o EQ/Alliance Premier Growth Companies
o Alliance Small Cap Growth o MFS Growth with Income
o EQ/Alliance Technology o MFS Research
o BT Equity 500 Index o Mercury Basic Value Equity(4)
o BT Small Company Index o Mercury World Strategy(5)
o BT International Equity Index o Morgan Stanley Emerging
o Capital Guardian International Markets Equity
o Capital Guardian Research o EQ/Putnam Growth & Income
o Capital Guardian U.S. Equity Value
o EQ/Evergreen o EQ/Putnam International Equity
o EQ/Evergreen Foundation o EQ/Putnam Investors Growth
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(1) Formerly named "Alliance Aggressive Stock."
(2) Formerly named "JPM Core Bond."
(3) Formerly named "Merrill Lynch Basic Value Equity."
(4) 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 No. 49. 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.
TYPE OF CONTRACTS. We offer the contracts for use as a nonqualified annuity
("NQ") for after-tax contributions only.
A contribution of at least $25,000 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 1-800-789-7771. 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.
73051MLNQ
<PAGE>
Contents of this prospectus
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EQUITABLE ACCUMULATOR(SM) SELECT
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Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator Select at a glance - key features 8
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FEE TABLE 11
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Example 14
Condensed financial information 15
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1 CONTRACT FEATURES AND BENEFITS 16
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How you can purchase and contribute to your contract 16
Owner and annuitant requirements 17
How you can make your contributions 17
What are your investment options under the contract? 17
Allocating your contributions 21
Your benefit base 22
Annuity purchase factors 23
Our baseBUILDER option 23
Guaranteed minimum death benefit 24
Your right to cancel within a certain number of days 25
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2 DETERMINING YOUR CONTRACT'S VALUE 26
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Your account value and cash value 26
Your contract's value in the variable investment options 26
Your contract's value in the fixed maturity options 26
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3 TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 27
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Transferring your account value 27
Market timing 27
Rebalancing your account value 27
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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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4 ACCESSING YOUR MONEY 29
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Withdrawing your account value 29
How withdrawals are taken from your account value 29
How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death
benefit 29
Surrendering your contract to receive its cash value 30
When to expect payments 30
Your annuity payout options 30
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5 CHARGES AND EXPENSES 33
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Charges that Equitable Life deducts 33
Charges that EQ Advisors Trust deducts 34
Group or sponsored arrangements 34
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6 PAYMENT OF DEATH BENEFIT 35
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Your beneficiary and payment of benefit 35
How death benefit payment is made 35
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7 TAX INFORMATION 37
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Overview 37
Transfers among investment options 37
Taxation of nonqualified annuities 37
Federal and state income tax withholding and
information reporting 39
Impact of taxes to Equitable Life 39
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8 MORE INFORMATION 40
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About our Separate Account No. 49 40
About EQ Advisors Trust 40
About our fixed maturity options 41
About the general account 42
About other methods of payment 42
Dates and prices at which contract events occur 43
About your voting rights 43
About legal proceedings 44
About our independent accountants 44
Financial statements 44
Transfers of ownership, collateral assignments, loans,
and borrowing 45
Distribution of the contracts 45
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9 INVESTMENT PERFORMANCE 46
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Benchmarks 46
Communicating performance data 56
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10 INCORPORATION OF CERTAIN DOCUMENTS BY
REFERENCE 58
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APPENDICES
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I - Condensed financial information A-1
II - Market value adjustment example B-1
III - Guaranteed minimum death benefit example C-1
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STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
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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 IN
TERM PROSPECTUS
<S> <C>
account value 29
annuitant 16
annuity payout options 35
annuity purchase factors 24
baseBUILDER 24
beneficiary 40
benefit base 24
business day 65
cash value 29
contract date 9
contract date anniversary 9
contract year 9
EQAccess 6
ERISA 34
fixed maturity options 21
guaranteed minimum death benefit 26
<CAPTION>
PAGE IN
TERM PROSPECTUS
<S> <C>
guaranteed minimum income benefit 25
IRS 43
investment options 19
market adjusted amount 22
market value adjustment 22
maturity value 22
NQ cover
portfolio cover
processing office 6
rate to maturity 21
SAI cover
SEC cover
TOPS 6
unit 29
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
use different words, they have the same meaning in this prospectus as in the
contract. Your registered representative can provide further explanation about
your contract or supplemental materials.
<TABLE>
<CAPTION>
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PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
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<S> <C>
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest
Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
baseBUILDER Guaranteed Minimum Income Benefit
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</TABLE>
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Who is Equitable Life?
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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 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 CONTRIBUTIONS SENT BY REGULAR MAIL:
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Equitable Accumulator Select
P.O. Box 13014
Newark, NJ 07188-0014
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FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
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Equitable Accumulator Select
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
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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 Accumulator Select
P.O. Box 1547
Secaucus, NJ 07096-1547
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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 Accumulator Select
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
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REPORTS WE PROVIDE:
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o written confirmation of financial transactions;
o statement of your contract values at the close
of each calendar quarter (four per year); and
o annual statement of your contract values as of
the close of the contract 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 (anticipated to be available through
EQAccess by the end of 2000);
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options (not available through
EQAccess);
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
availabe through TOPS).
You can also:
o change your allocation percentages and/or transfer among the investment
options (anticipated to be available through EQAccess by the end 2000);
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 1-888-909-7770. 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
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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 you
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 (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your registered representative;
(2) election of the automatic investment program;
(3) election of the rebalancing program;
(4) 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 between investment options; and
(4) contract surrender and withdrawal requests.
TO CANCEL OR CHANGE 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;
(4) special dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) 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>
Equitable Accumulator Select at a glance - key features
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PROFESSIONAL Equitable Accumulator Select's variable investment options
INVESTMENT invest in different portfolios managed by professional
MANAGEMENT investment advisers.
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FIXED MATURITY o 10 fixed maturity options with maturities ranging from
OPTIONS approximately 1 to 10 years.
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.
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TAX ADVANTAGES o On earnings inside the No tax on any dividends,
contract interest or capital gains
until you make withdrawals
from your contract or receive
annuity payments.
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o On transfers inside the No tax on transfers among
contract investment options.
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BASEBUILDER(R) baseBUILDER combines a guaranteed minimum income benefit
PROTECTION with the guaranteed minimum death benefit provided under
the contract. The guaranteed minimum income benefit
provides income protection for you while the annuitant
lives. The guaranteed minimum death benefit provides a
death benefit for the beneficiary should the annuitant
die.
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CONTRIBUTION AMOUNTS o Initial minimum: $25,000
o Additional minimum: $1,000
$100 monthly and $300
quarterly under our automatic
investment program
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Maximum contribution limitations may apply.
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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 income tax and a tax penalty.
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PAYOUT OPTIONS o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(Reg. TM) payout options
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ADDITIONAL FEATURES o Guaranteed minimum death benefit even if you do not
elect baseBUILDER
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and
annually)
o Free transfers
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FEES AND CHARGES o Daily charges on amounts invested in the variable
investment options for mortality and expense risks,
administrative charges, and distribution charges at a
current annual rate of 1.60% (1.70% maximum).
o Annual 0.30% benefit base charge for the optional
baseBUILDER benefit until you exercise your guaranteed
minimum income benefit, elect another annuity payout
option, or the contract date anniversary after the
annuitant reaches age 85 (age 83 in Oregon), whichever
occurs first. The benefit base is described under "Your
benefit base" in "Contract features and benefits." If
you don't elect baseBUILDER, you still receive a
guaranteed minimum death benefit under your contract at
no additional charge.
o No sales charge deducted at the time you make
contributions, no withdrawal charge, and no annual
contract fee.
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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. This 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 the Variable Immediate Annuity
payout options.
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.
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ANNUITANT ISSUE AGES 0-85
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THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY. ALSO, ALL FEATURES OF
THE CONTRACT ARE NOT NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES.
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
registered representative, or call us, if you have any questions.
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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 in the contracts offered by this prospectus. Not every contract is
offered through the same distributor. Upon request, your registered
representative 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.
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Fee table
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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 under "Charges and
expenses" later in this prospectus.
The fixed maturity options are not covered by the fee table and examples. 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>
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CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS
AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
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<S> <C>
Mortality and expense risks(1) 1.10%
Administrative 0.25% current (0.35% maximum)
Distribution 0.25%
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Total annual expenses 1.60% current (1.70% maximum)
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CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST
CERTAIN TRANSACTIONS
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Charge if you elect a Variable Immediate Annuity payout option $350
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CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE EACH YEAR IF YOU ELECT THE OPTIONAL BENEFIT
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BASEBUILDER BENEFIT CHARGE (calculated as a percentage of the benefit base.
Deducted annually on each contract date anniversary)(2) 0.30%
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</TABLE>
EQ ADVISORS TRUST ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
<TABLE>
<CAPTION>
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TOTAL
OTHER ANNUAL
EXPENSES EXPENSES
MANAGEMENT (AFTER EXPENSE (AFTER EXPENSE
FEES(3) 12B-1 FEES(4) LIMITATION)(5) LIMITATION)(6)
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<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 High Yield 0.60% 0.25% 0.05% 0.90%
Alliance Money Market 0.34% 0.25% 0.05% 0.64%
EQ/Alliance Premier Growth 0.90% 0.25% 0.00% 1.15%
Alliance Small Cap Growth 0.75% 0.25% 0.07% 1.07%
EQ/Alliance Technology 0.90% 0.25% 0.00% 1.15%
BT Equity 500 Index 0.25% 0.25% 0.10% 0.60%
BT International Equity Index 0.35% 0.25% 0.40% 1.00%
BT Small Company Index 0.25% 0.25% 0.25% 0.75%
Capital Guardian International 0.85% 0.25% 0.10% 1.20%
Capital Guardian Research 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen 0.65% 0.25% 0.05% 0.95%
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</TABLE>
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<TABLE>
<CAPTION>
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TOTAL
OTHER ANNUAL
EXPENSES EXPENSES
MANAGEMENT (AFTER EXPENSE (AFTER EXPENSE
FEES(3) 12B-1 FEES(4) LIMITATION)(5) LIMITATION)(6)
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<S> <C> <C> <C> <C>
EQ/Evergreen Foundation 0.60% 0.25% 0.10% 0.95%
Capital Guardian U.S. Equity 0.65% 0.25% 0.05% 0.95%
J.P. Morgan Core Bond 0.45% 0.25% 0.10% 0.80%
Lazard Large Cap Value 0.65% 0.25% 0.05% 0.95%
Lazard Small Cap Value 0.75% 0.25% 0.10% 1.10%
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 Growth & Income Value 0.60% 0.25% 0.10% 0.95%
EQ/Putnam International Equity 0.85% 0.25% 0.15% 1.25%
EQ/Putnam Investors Growth 0.65% 0.25% 0.05% 0.95%
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</TABLE>
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Notes:
(1) A portion of this charge is for providing the guaranteed minimum death
benefit.
(2) The benefit base is described under "Contract features and benefits Your
guaranteed minimum income benefit under baseBUILDER."
(3) The management fees shown reflect revised management fees, effective on or
about May 1, 2000 by shareholders. The management fees shown for EQ/Putnam
Growth & Income Value and Lazard Large Cap Value do not reflect the waiver
of a portion of each portfolio's investment management fees that are
currently in effect. The management fee for each portfolio cannot be
increased without a vote of each portfolio's shareholders.
(4) 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.
(5) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. See footnote (6) 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.
(6) 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
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daily net assets of each of the following portfolios: 1.75% for Morgan
Stanley Emerging Markets Equity; 1.25% for EQ/Putnam International Equity;
1.20% for Capital Guardian International and Mercury World Strategy; 1.15%
for EQ/Alliance Premier Growth and EQ/Alliance Technology; 1.10% for Lazard
Small Cap Value; 1.00% for BT International Equity Index and MFS Emerging
Growth Companies; 0.95% for Capital Guardian U.S. Equity, Capital Guardian
Research, EQ/Evergreen, EQ/Evergreen Foundation, Lazard Large Cap Value,
MFS Growth with Income, MFS Research, Mercury Basic Value Equity, EQ/Putnam
Growth & Income Value and EQ/Putnam Investors Growth; 0.80% for J.P. Morgan
Core Bond; 0.75% for BT Small Company Index; and 0.60% for BT Equity 500
Index. The expense limitations for the BT Equity 500 Index, EQ/Putnam
Growth & Income Value, EQ/Putnam International Equity, MFS Growth with
Income, MFS Research, Mercury Basic Value Equity and MFS Emerging Growth
Companies portfolios reflect an increase effective on May 1, 2000. The
expense limitation for the EQ/Evergreen and Lazard Small Cap Value
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; 0.32% for EQ/Putnam
International Equity; 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; 0.26% for Lazard Small Cap Value; 0.49% for BT
International Equity Index; 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; 0.21% for Lazard
Large Cap Value; 0.37% for MFS Growth with Income; 0.17% for MFS Research
and Mercury Basic Value Equity; 0.16% for EQ/Putnam Growth & Income Value;
0.19% for EQ/Putnam Investors Growth; 0.20% for J.P. Morgan Core Bond;
0.71% for BT Small Company Index; and 0.18% for BT Equity 500 Index.
Initial seed capital was invested on April 30, 1999 for Alliance Premier
Growth, Capital Guardian U.S. Equity and Capital Guardian Research
portfolios and will be invested on or about May 1, 2000 for 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>
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14
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EXAMPLE
The example below shows the expenses that a hypothetical contract owner (who has
elected baseBUILDER) would pay in the situation illustrated. We assume that 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 charges
used in the examples are the maximum charges rather than the lower current
charges.
The example 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 example is not an estimate
or guarantee of future investment performance.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
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 $ 27.09 $ 89.34 $ 154.46 $ 330.67
Alliance Common Stock $ 25.62 $ 84.96 $ 147.21 $ 316.52
Alliance High Yield $ 27.20 $ 89.66 $ 154.98 $ 331.67
Alliance Money Market $ 24.46 $ 81.51 $ 141.48 $ 305.25
EQ/Alliance Premier Growth $ 30.98 $ 100.86 $ 173.42 $ 367.11
Alliance Small Cap Growth $ 28.98 $ 94.96 $ 163.72 $ 348.57
EQ/Alliance Technology $ 29.93 $ 97.76 $ 168.32 $ 357.40
BT Equity 500 Index $ 24.15 $ 80.56 $ 139.92 $ 302.16
BT International Equity Index $ 28.35 $ 93.09 $ 160.64 $ 342.64
BT Small Company Index $ 25.72 $ 85.27 $ 147.73 $ 317.53
Capital Guardian International $ 30.45 $ 99.31 $ 170.87 $ 362.26
Capital Guardian Research $ 27.82 $ 91.53 $ 158.07 $ 337.67
Capital Guardian U.S. Equity $ 27.82 $ 91.53 $ 158.07 $ 337.67
EQ/Evergreen $ 27.82 $ 91.53 $ 158.07 $ 337.67
EQ/Evergreen Foundation $ 27.82 $ 91.53 $ 158.07 $ 337.67
J.P. Morgan Core Bond $ 26.25 $ 86.84 $ 150.32 $ 322.61
Lazard Large Cap Value $ 27.82 $ 91.53 $ 158.07 $ 337.67
Lazard Small Cap Value $ 29.40 $ 96.20 $ 165.77 $ 352.50
MFS Emerging Growth Companies $ 28.35 $ 93.09 $ 160.64 $ 342.64
MFS Growth with Income $ 27.82 $ 91.53 $ 158.07 $ 337.67
MFS Research $ 27.82 $ 91.53 $ 158.07 $ 337.67
Mercury Basic Value Equity $ 27.82 $ 91.53 $ 158.07 $ 337.67
Mercury World Strategy $ 30.45 $ 99.31 $ 170.87 $ 362.26
Morgan Stanley Emerging Markets Equity $ 36.23 $ 116.29 $ 198.55 $ 414.19
EQ/Putnam Growth & Income Value $ 27.82 $ 91.53 $ 158.07 $ 337.67
EQ/Putnam International Equity $ 30.98 $ 100.86 $ 173.42 $ 367.11
EQ/Putnam Investors Growth $ 28.88 $ 94.65 $ 163.21 $ 347.58
-----------------------------------------------------------------------------------------------
</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."
<PAGE>
-----
15
--------------------------------------------------------------------------------
IF YOU ELECT A VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued (see note (1) above), and you
elect a Variable Immediate Annuity payout option, the expenses shown in the
example 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 periods shown for each of the
variable investment options available as of December 31, 1999.
<PAGE>
1 Contract features and benefits
--------
16
--------------------------------------------------------------------------------
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 initial contribution of $25,000 for you to
purchase a contract. You may make additional contributions of at least $1,000
each, subject to limitations noted below. The following table summarizes our
rules regarding contributions to your contract. The 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 ANNUITANT LIMITATIONS ON
ISSUE AGES SOURCE OF CONTRIBUTIONS CONTRIBUTIONS
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
0 through 85 o After-tax money. o No additional contributions after age 86.
o Paid to us by check or transfer of contract
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue Code.
---------------------------------------------------------------------------------------------------------------------
</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 Equitable Accumulator contracts with
the same annuitant would then total more than $1,500,000. We reserve the right
to limit aggregate contributions made after the first contract year to 150% of
first-year contributions. 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 under your contract see
"Dates and prices at which contract events occur" in "More information" later in
this prospectus.
<PAGE>
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17
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OWNER AND ANNUITANT REQUIREMENTS
The annuitant can be different than the owner.
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, 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose. Additional contributions may also be made under our automatic
investment program. These methods of payment are 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 payments. 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 registered representative
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.
-----------------------------------------------------------------------------
Our "business day" is any day the New York Stock Exchange is open for trading
and generally ends at 4:00 p.m. Eastern Time. 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 Equitable Accumulator
Select 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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18
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
PORTFOLIOS OF EQ ADVISORS TRUST
-----------------------------------------------------------------------------------------------------------------------------
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 High Yield High return by maximizing current income Alliance Capital Management L.P.
and, to the extent consistent with that
objective, capital appreciation
-----------------------------------------------------------------------------------------------------------------------------
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 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.
-----------------------------------------------------------------------------------------------------------------------------
BT Equity 500 Index Replicate as closely as possible (before Bankers Trust Company
deduction of portfolio expenses) the total
return of the Standard & Poor's 500
Composite Stock Price Index
-----------------------------------------------------------------------------------------------------------------------------
BT Small Company Index Replicate as closely as possible (before Bankers Trust Company
deduction of portfolio expenses) the total
return of the Russell 2000 Index
-----------------------------------------------------------------------------------------------------------------------------
BT International Equity Index Replicate as closely as possible (before Bankers Trust Company
deduction of portfolio expenses) the total
return of the Morgan Stanley Capital
International Europe, Australia, Far East Index
-----------------------------------------------------------------------------------------------------------------------------
Capital Guardian International Long-term growth of capital by investing Capital Guardian Trust Company
primarily in non-United States equity securities
-----------------------------------------------------------------------------------------------------------------------------
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.
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
---------
19
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
PORTFOLIOS OF EQ ADVISORS TRUST (CONTINUED)
-----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQ/Evergreen Foundation In order of priority, reasonable income, Evergreen Asset Management Corp.
conservation of capital, and capital appreciation
-----------------------------------------------------------------------------------------------------------------------------
J.P. Morgan Core Bond High total return consistent with moderate risk J.P. Morgan Investment Management Inc.
of capital and maintenance of liquidity
-----------------------------------------------------------------------------------------------------------------------------
Lazard Large Cap Value Capital appreciation Lazard Asset Management
-----------------------------------------------------------------------------------------------------------------------------
Lazard Small Cap Value Capital appreciation Lazard Asset Management
-----------------------------------------------------------------------------------------------------------------------------
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 Growth Capital growth, current income is a secondary Putnam Investment Management, Inc.
& Income Value objective
-----------------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Capital appreciation Putnam Investment Management, Inc.
Equity
-----------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Investors Long-term growth of capital and any increased Putnam Investment Management, Inc.
Growth income that results from this growth
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Other important information about the portfolios is included in the prospectus
for EQ Advisors Trust attached at the end of this prospectus.
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. 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.
<PAGE>
----------
20
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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 amounts 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 February 15th for each of the maturity years 2001 through
2010. Not all of these fixed maturity options will be available for annuitant
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 the fixed maturity option's maturity date is within the current calendar
year; or
o the rate to maturity is 3% or less.
YOUR CHOICES AT THE MATURITY DATE. We will notify you on or before December 31st
of the year 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.
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 fixed
maturity option that will mature next.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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.
<PAGE>
----------
21
--------------------------------------------------------------------------------
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 of this prospectus provides an example of how the
market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance, or dollar cost averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options and fixed maturity options. Allocations must be in whole
percentages and you may change your allocations at any time. However, the total
of your allocations must equal 100%. If the annuitant is age 76 or older, you
may allocate contributions to fixed maturity options if their maturities are
five years or less. Also, you may not allocate amounts to fixed maturity options
with maturity dates that are later than the February 15th immediately following
the date annuity payments are to begin.
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 7 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 15, 2000 you
chose the fixed maturity option with a maturity date of February 15, 2010, since
the rate to maturity was 5.98% on March 15, 2000, we would have allocated
$5,618.00 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.
You may not elect principal assurance if the special dollar cost averaging
program is in effect.
DOLLAR COST AVERAGING
We offer two dollar cost averaging programs. Each program allows you to
gradually transfer amounts from the Alliance Money Market option to the other
variable investment options by periodically transferring approximately the same
dollar amount to the other 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. These plans of investing, however, do not guarantee that you
will earn a profit or be protected against losses.
--------------------------------------------------------------------------------
Units measure your value in each variable investment option.
--------------------------------------------------------------------------------
SPECIAL DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the
Alliance Money Market option into any of the other variable investment options.
You must allocate your entire initial contribution into the Alliance Money
Market option. We will transfer your value in the Alliance Money Market option
into the other variable investment options that you select over the next 12
months or such other period we may offer. The transfer date will be the same day
of the month as the contract date, but not later than the 28th. All amounts will
be transferred out by the end of the first contract year or such other period we
may offer. Under this program we will not deduct the mortality and expense
risks, administrative, and distribution charges from assets in the Alliance
Money Market option. You may not allocate additional contributions to the
Alliance Money Market option under this program.
<PAGE>
----------
22
--------------------------------------------------------------------------------
The only amounts that should be transferred from the Alliance Money Market
option are your regularly scheduled monthly transfers to the other variable
investment options. If you request to transfer or withdraw any other amounts, we
will transfer all of the value that you have remaining in the Alliance Money
Market option to the other investment options according to the allocation
percentages we have on file for you. As a result, you will no longer be able to
participate in the special dollar cost averaging program. You may also ask us to
cancel your participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the Alliance Money
Market option is at least $5,000, you may choose, at any time, to have a
specified dollar amount or percentage of your value transferred from that option
to the other variable investment options. You can select to have transfers made
on a monthly, quarterly, or annual basis. The transfer date will be the same
calendar day of the month as the contract date, but not later than the 28th day
of the month. You can also specify the number of transfers or instruct us to
continue making the transfers until all amounts in the Alliance Money Market
option have been transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your 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. The general dollar cost averaging program
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 or special dollar cost averaging if you
are participating in the rebalancing program. See "Transferring your money among
investment options."
YOUR BENEFIT BASE
The benefit base is used to calculate the guaranteed minimum income benefit and
the 5% roll up to age 80 guaranteed minimum death benefit. See "Our baseBUILDER
option" and "Guaranteed minimum death benefit" below. The benefit base is equal
to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money").
The effective annual interest rate credited to the benefit base is:
o 5% for the benefit base with respect to the variable investment options
(other than the Alliance Money Market option), and the account for special
dollar cost averaging; and
o 3% for the benefit base with respect to the Alliance Money Market option
and the fixed maturity options.
No interest is credited after the annuitant is age 80.
--------------------------------------------------------------------------------
Your benefit base is not an account value or a cash value.
--------------------------------------------------------------------------------
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout options.
The guaranteed minimum income benefit is discussed in "Our baseBUILDER option"
and annuity payout options are discussed in "Accessing your money" later in this
prospectus. The guaranteed annuity purchase factors are those factors specified
in your contract. The current annuity purchase factors are those factors that
are in effect at any given time. Annuity purchase factors are based on interest
rates, mortality tables, frequency of payments, the form of
<PAGE>
----------
23
--------------------------------------------------------------------------------
annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in
certain instances.
OUR BASEBUILDER OPTION
The baseBUILDER option offers you a guaranteed minimum income benefit combined
with the guaranteed minimum death benefit available under the contract. The
baseBUILDER benefit is available if the annuitant is between the ages of 20 and
75 at the time the contract is issued. There is an additional charge for the
baseBUILDER benefit which is described under "baseBUILDER benefit charge" in
"Charges and expenses."
The guaranteed minimum income benefit component of baseBUILDER is described
below. Whether you elect baseBUILDER or not, the guaranteed minimum death
benefit is provided under the contract. The guaranteed minimum death benefit is
described under "Guaranteed minimum death benefit" below. baseBUILDER is
currently not available in some states. Please ask your registered
representative if baseBUILDER is available in your state.
The guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or an Income
Manager level payment life with a period certain payout option, subject to state
availability (for contracts issued in Oregon, only the income manager life with
a period certain payout annuity contract is available). You choose which of
these payout options you want and whether you want the option to be paid on a
single or joint life basis at the time you exercise your guaranteed minimum
income benefit. The maximum period certain available under the Income Manager
payout option is 10 years. This period may be shorter, depending on the
annuitant's age when you exercise your guaranteed minimum income benefit and the
type of contract you own. We may also make other forms of payout options
available. For a description of payout options, see "Your annuity payout
options" in "Accessing your money" later in this prospectus.
--------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
--------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive under the life annuity payout option will be the
greater of (i) your guaranteed minimum income benefit which is calculated by
applying your benefit base at guaranteed annuity purchase factors, or (ii) the
income provided by applying your actual account value at our then current
annuity purchase factors.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive an annuity payout option. You will begin receiving payments
one payment period after the annuity payout option is issued. Payments end with
the last payment before the annuitant's (or joint annuitant's, if applicable)
death. There is no continuation of benefits following the annuitant's (or joint
annuitant's, if applicable) death.
Before you elect baseBUILDER, you should consider the fact that the guaranteed
minimum income benefit provides a form of insurance and is based on conservative
actuarial factors. Therefore, even if your account value is less than your
benefit base, you may generate more income by applying your account value to
current annuity purchase factors. We will make this comparison for you when the
need arises.
You should also consider that the guaranteed annuity purchase factors we use to
determine your Income Manager benefit under baseBUILDER are more conservative
than the guaranteed annuity purchase factors we use for the Income Manager
payout annuity option. This means that, assuming the same amount is applied to
purchase the benefit and that we use guaranteed annuity purchase factors to
compute the benefit, each periodic payment under the baseBUILDER Income Manager
will be smaller than each periodic payment under the Income Manager payout
annuity option.
<PAGE>
----------
24
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ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. The table below illustrates
the guaranteed minimum income benefit amounts per $100,000 of initial
contribution, for a male annuitant age 60 (at issue) on the contract date
anniversaries indicated, who has elected the life annuity fixed payout option,
using the guaranteed annuity purchase factors as of March 1, 2000, assuming no
additional contributions or withdrawals and assuming there were no allocations
to the Alliance Money Market option or the fixed maturity options.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
GUARANTEED MINIMUM
CONTRACT DATE INCOME BENEFIT - ANNUAL INCOME
ANNIVERSARY AT EXERCISE PAYABLE FOR LIFE
--------------------------------------------------------------------------------
<S> <C>
10 $10,816
15 $16,132
--------------------------------------------------------------------------------
</TABLE>
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT.
On each contract date anniversary that you are eligible to exercise the
guaranteed minimum income benefit, we will send you an eligibility notice
illustrating how much income could be provided as of the contract anniversary.
You may notify us within 30 days following the contract date anniversary if you
want to exercise the guaranteed minimum income benefit. You must return your
contract to us in order to exercise this benefit. The amount of income you
actually receive will be determined when we receive your request to exercise the
benefit. You will begin receiving payments one payment period after the annuity
payout contract is issued.
You (or the successor annuitant/owner, if applicable) will be eligible to
exercise the guaranteed minimum income benefit as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 (age 53 in
Oregon) when the contract was issued, you are eligible to exercise the
guaranteed minimum income benefit within 30 days following each contract
date anniversary after the annuitant is age 60.
o If the annuitant was at least age 50 (age 54 in Oregon) and no older than
age 75 when the contract was issued, you are eligible to exercise the
guaranteed minimum income benefit within 30 days following each contract
date anniversary beginning with the 10th (7th in Oregon) contract date
anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit is
the contract date anniversary following the annuitant's 85th (83rd in
Oregon) birthday; and
(ii) if the annuitant was age 75 when the contract was issued, the only time you
may exercise the guaranteed minimum income benefit is within 30 days
following the first (in Oregon, the first and second contract date
anniversary) contract date anniversary that it becomes available.
GUARANTEED MINIMUM DEATH BENEFIT
A guaranteed minimum death benefit is provided as part of the baseBUILDER
benefit. A guaranteed minimum death benefit is also provided under your contract
even if you don't elect baseBUILDER. In this case, the baseBUILDER benefit
charge does not apply.
GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANT AGES 0 THROUGH 79 AT
ISSUE OF CONTRACT.
You must elect either the "5% roll up to age 80" or the "annual ratchet to age
80" guaranteed minimum death benefit when you apply for a contract. Once you
have made your election, you may not change it.
5% ROLL UP TO AGE 80. The guaranteed minimum death benefit is equal to the
benefit base described earlier in"Your benefit base."
ANNUAL RATCHET TO AGE 80. On the contract date, your guaranteed minimum death
benefit equals your initial contribution. Then, on each contract date
anniversary, we will determine your guaranteed minimum death benefit by
comparing your current guaranteed minimum death benefit
<PAGE>
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to your account value on that contract date anniversary. If your account value
is higher than your guaranteed minimum death benefit, we will increase your
guaranteed minimum death benefit to equal your account value. On the other hand,
if your account value on the contract date anniversary is less than your
guaranteed minimum death benefit, we will not adjust your guaranteed minimum
death benefit either up or down. If you make additional contributions, we will
increase your current guaranteed minimum 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 reduce your
guaranteed minimum death benefit on the date you take the withdrawal.
GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANT AGES 80 THROUGH 85 AT
ISSUE OF CONTRACT.
On the contract date, your guaranteed minimum death benefit equals your initial
contribution. Thereafter, it will be increased by the dollar amount of any
additional contributions. We will reduce your guaranteed minimum death benefit
if you take any withdrawals.
----------------------------------------
Please see "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" for information on
how withdrawals affect your guaranteed minimum death benefit.
See Appendix III for an example of how we calculate the guaranteed minimum death
benefit.
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.
Generally, your refund will equal your account value under the contract on the
day we receive notification of your decision to cancel the contract and will
reflect (i) any investment gain or loss in the variable investment options (less
the daily charges we deduct), and (ii) any positive or negative market value
adjustments in the fixed maturity options through the date we receive your
contract. Some states require that we refund the full amount of your
contribution (not reflecting (i) or (ii) above).
We may require that you wait six months before you may 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. Our processing office, or your registered representative, can provide
you with the cancellation instructions.
<PAGE>
2 Determining your contract's value
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YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the: (i) value you have in the variable
investment options and (ii) market adjusted amounts 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. 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.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense;
(ii) administrative expenses; and
(iii) distribution charges.
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; 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 baseBUILDER benefit charge, the number of units
credited to your contract will be reduced. 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
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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 may not transfer to a fixed maturity option that matures in the current
calendar year, or that has a rate to maturity of 3% or less.
o If the annuitant is 76 or older, you must limit your transfers to fixed
maturity options to those with maturities of five years or less. Also, the
maturity dates may be no later than the February 15th immediately following
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.
You may request a transfer in writing or by telephone using TOPS. (We anticipate
that transfers will be available online by using EQ Access by the end of 2000.)
You must send in all written transfer requests directly to our processing
office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 a
market timing strategy, 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.
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 on a contract year basis. Rebalancing will occur on the same day
of the month as the contract date).
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 registered representative or
other registered representative before electing the program.
--------------------------------------------------------------------------------
You may elect the rebalancing program at any time. 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.
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You may not elect the rebalancing program if you are participating in the dollar
cost averaging or special dollar cost averaging program.
<PAGE>
4 Accessing your money
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29
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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. More information follows the
table. For the tax consequences of withdrawals, see "Tax information."
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
METHOD OF WITHDRAWAL
--------------------------------------------------------------------------------
SUBSTANTIALLY MINIMUM
LUMP SUM SYSTEMATIC EQUAL DISTRIBUTION
--------------------------------------------------------------------------------
<S> <C> <C> <C>
Yes Yes No No
--------------------------------------------------------------------------------
</TABLE>
LUMP SUM WITHDRAWALS
You may take lump sum withdrawals from your account value at any time. The
minimum amount you may withdraw is $300. If you request to withdraw more than
90% of a contract's current cash value we will treat it as a request to
surrender the contract for its cash value. See "Surrendering your contract to
receive its cash value" below.
SYSTEMATIC WITHDRAWALS
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value.
You may take systematic withdrawals on a monthly, quarterly, or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly, and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would be
less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change the
amount or percentage in any contract year in which you have already taken a lump
sum withdrawal. You can cancel the systematic withdrawal option at any 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 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) first. A market value adjustment may apply to
withdrawals from the fixed maturity options.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
5% roll up to age 80 - If you elect the 5% roll up to age 80 guaranteed minimum
death benefit, your benefit base will be reduced on a dollar-for-dollar basis as
long as the sum of your withdrawals in a contract year is 5% or less of the
guaranteed minimum death benefit on the most recent contract date anniversary.
Once you take a withdrawal that causes the sum of your withdrawals in a contract
year to exceed 5% of the guaranteed minimum death benefit on the most recent
contract date anniversary, that withdrawal
<PAGE>
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and any subsequent withdrawals in that same contract year will reduce your
benefit base on a pro rata basis.
The timing of your withdrawals and whether they exceed the 5% threshold
described above can have significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
Annual ratchet to age 80 - If you elect the annual ratchet to age 80 guaranteed
minimum death benefit, each withdrawal will always reduce your benefit base and
current guaranteed minimum death benefit on a pro rata basis.
Annuitant issue ages 80 through 85 - If your contract was issued when the
annuitant was between ages 80 and 85, each withdrawal will always reduce your
current guaranteed minimum death benefit on a pro rata basis.
----------------------------------------
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of your current account value that is
being withdrawn and we reduce your current 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 guaranteed minimum death benefit
was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x
.40) and your new guaranteed minimum death benefit after the withdrawal would be
$24,000 ($40,000 - $16,000).
SURRENDERING 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. For
the tax consequences of surrenders, see "Tax information."
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, payment of a death benefit, payment of any amount you withdraw
and, upon surrender, 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 value 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 10 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
Equitable Accumulator Select offers you several choices of annuity payout
options. Some enable you to receive fixed annuity payments, which can be either
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.
<PAGE>
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In addition, if you are exercising your guaranteed minimum income benefit under
baseBUILDER, your choice of payout options are those that are available under
baseBUILDER (see "Our baseBUILDER option").
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
<S> <C>
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
--------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options Life annuity with period
certain
--------------------------------------------------------------------------------
Income Manager payout Life annuity with period
options (available for certain
annuitants age 83 or less Period certain annuity
at contract issue)
--------------------------------------------------------------------------------
</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. 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.
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 guaranteed 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 registered
representative can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your registered representative. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
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 option that can be elected in combination with the variable
annuity payout options. The amount of each variable annuity
<PAGE>
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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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout annuity
contracts. The other payout annuity contracts may provide higher or lower income
levels, but do not have all the features of the Income Manager payout annuity
contract. You may request an illustration of the Income Manager payout annuity
contract from your registered representative. Income Manager payout options are
described in a separate prospectus that is available from your registered
representative. Before you select an Income Manager payout option, you should
read the prospectus which contains important information that you should know.
Both Income Manager payout options provide guaranteed level payments. The Income
Manager (life annuity with period certain) also provides guaranteed increasing
payments.
You may choose to apply only part of the account value of your Equitable
Accumulator Select contract to an Income Manager payout annuity. In this case,
we will consider any amounts applied as a withdrawal from your Equitable
Accumulator Select. For the tax consequences of withdrawals, see "Tax
information."
Depending upon your circumstances, the purchase of an Income Manager contract
may be done on a tax-free basis. Please consult your tax adviser.
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 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.
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 are applying only some of your
account value to an Income Manager contract. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Equitable Accumulator Select contract date. Except with
respect to the Income Manager annuity payout options, where payments are made on
the 15th day of each month, 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 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: (i) transfers (if permitted in the
future) among the variable investment options if a Variable Immediate Annuity
payout option is selected; and (ii) withdrawals (subject to a market value
adjustment) if an Income Manager payout option is chosen.
The amount of the annuity payments will depend on the amount applied to purchase
the annuity and the applicable annuity purchase factors, discussed earlier.
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 An administrative charge
o A distribution charge
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 If you elect the optional benefit a charge for the optional baseBUILDER
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 guaranteed
minimum 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 income 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. Lastly, we
assume a mortality risk to the extent that at the time of death, the guaranteed
minimum 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.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option. We reserve the right under the contracts to increase
this charge to an annual rate of 0.35%.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
BASEBUILDER BENEFIT CHARGE
If you elect the baseBUILDER, we deduct a charge annually from your account
value on each contract date anniversary until such time as you exercise the
guaranteed minimum income benefit, elect another annuity payout option, or the
contract date anniversary after the annuitant reaches 85 (83 in Oregon),
whichever occurs first. The charge is equal to 0.30% of the benefit base in
effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options on
a pro rata basis. If there is not enough value in the variable investment
options, we will deduct all or a portion of the charge from the fixed maturity
options in order of the earliest maturity date(s) first. A market value
adjustment may apply.
<PAGE>
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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 IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
CHARGES THAT EQ ADVISORS TRUST DEDUCTS
EQ Advisors Trust deducts charges for the following types of fees and expenses:
o Management 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 mortality and
expense risks charge or change the minimum initial contribution requirements. We
also may change the guaranteed minimum income benefit and the guaranteed 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. 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.
<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 written confirmation when we receive your request.
The death benefit is equal to your account value, or, if greater, the guaranteed
minimum death benefit. The guaranteed minimum death benefit is part of your
contract, whether you select the baseBUILDER benefit or not. We determine the
amount of the death benefit (other than the guaranteed minimum 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 determine the amount of the
guaranteed minimum death benefit as of the date of the annuitant's death.
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, a
beneficiary spouse of the owner/annuitant can choose to be treated as the
successor owner/annuitant and continue the contract. Only a spouse can be a
successor owner/annuitant.
WHEN A CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death.
When you are not the annuitant under the contract and you die before annuity
payments begin, the beneficiary named to receive the death benefit upon the
annuitant's death will automatically become the successor owner. If you do not
want this beneficiary 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) within five years 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 within one year after the
non-annuitant owner's death. Unless this alternative is elected, we will
pay any cash value five years after 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 any annuity payout
option chosen may not extend beyond the life expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary, then your spouse may elect to receive the death
benefit or continue the contract as successor owner/annuitant.
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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 option according to the allocation percentages we have on file for
your contract. 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).
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OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Equitable Accumulator Select contracts owned by United
States taxpayers.
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.
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 the 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 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.
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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
Equitable Accumulator Select 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 Equitable Accumulator
Select 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 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 annuity contract. In that case, income and gains attributable to
such portfolio shares 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
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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.
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.
We might have to withhold and/or report on amounts we pay under a free look or
cancellation.
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 or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount.
IMPACT OF TAXES TO EQUITABLE LIFE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
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8 More information
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ABOUT OUR SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of our Separate Account No. 49.
We established Separate Account No. 49 in 1996 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 No. 49 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 No. 49's operations
are accounted for without regard to Equitable Life's other operations.
Separate Account No. 49 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 No. 49.
Each subaccount (variable investment option) within Separate Account No. 49
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 No. 49, 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 No. 49 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 No. 49
or a variable investment option directly);
(5) to deregister Separate Account No. 49 under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to Separate Account No. 49;
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, 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 15, 2000 and the related
price per $100 of maturity value were as follows:
<TABLE>
<CAPTION>
-------------------------------------------------------------
FIXED MATURITY
OPTIONS
WITH FEBRUARY 15TH RATE TO MATURITY PRICE
MATURITY DATE OF AS OF PER $100 OF
MATURITY YEAR MARCH 15, 2000 MATURITY VALUE
-------------------------------------------------------------
<S> <C> <C>
2001 4.20% $ 96.27
2002 4.91% $ 91.19
2003 5.43% $ 85.68
2004 5.51% $ 81.02
2005 5.62% $ 76.39
2006 5.70% $ 72.00
2007 5.77% $ 67.81
2008 5.83% $ 63.82
2009 5.92% $ 59.84
2010 5.98% $ 56.18
-------------------------------------------------------------
</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.
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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. 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 0.25% 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 the general account,
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
WIRE TRANSMITTALS
We accept initial contributions sent by wire to our processing office by
agreement with certain broker-dealers. The transmittals must be accompanied by
information we require to allocate your contribution. Wire orders not
accompanied by complete information may be retained as described under "How you
can make your contributions" in "Contract features and benefits."
Even if we accept the wire order and essential information, a contract generally
will not be issued until we receive and accept a properly completed application.
In certain cases we may issue a contract based on information forwarded
electronically. In these cases, you must sign our Acknowledgement of Receipt
form.
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Where we require a signed application, no financial transactions will be
permitted until we receive the signed application and have issued the contract.
Where we require an Acknowledgement of Receipt form, financial transactions are
only permitted if you request them in writing, sign the request and have it
signature guaranteed, until we receive the signed Acknowledgement of Receipt
form.
After your contract has been issued, additional contributions may be transmitted
by wire.
AUTOMATIC INVESTMENT PROGRAM
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
your contract on a monthly or quarterly basis.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. 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.
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 the New York Stock Exchange is open for trading. 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, however, close 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.
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. on a business day, we will use the next business day.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
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.
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 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 a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
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. Its 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 NO. 49 VOTING RIGHTS
If actions relating to Separate Account No. 49 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 No. 49, 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 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 No. 49, 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 1-800-789-7771.
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TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
You can transfer ownership of your 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
contract as collateral or security for a loan. Loans are also not available
under your contract. In some cases, an assignment or change of ownership may
have adverse tax consequences. See "Tax information" earlier in this prospectus.
DISTRIBUTION OF THE CONTRACTS
Equitable Distributors, Inc. ("EDI"), an indirect, wholly owned subsidiary of
Equitable Life, is the distributor of the contracts and has responsibility for
sales and marketing functions for Separate Account No. 49. EDI serves as the
principal underwriter of Separate Account No. 49. EDI also acts as distributor
for other Equitable Life annuity products with different features, expenses, and
fees. EDI is registered with the SEC as a broker-dealer and is a member of the
National Association of Securities Dealers, Inc. EDI's principal business
address is 1290 Avenue of the Americas, New York, New York 10104. Under a
distribution agreement between EDI, Equitable Life, and certain of Equitable
Life's separate accounts, including Separate Account No. 49, Equitable Life paid
EDI distribution fees of $46,957,345 for 1999, $35,452,793 for 1998, and
$9,566,343 for 1997 as the distributor of certain contracts, including these
contracts, and as the principal underwriter of several Equitable Life separate
accounts, including Separate Account No. 49.
The contracts will be sold by registered representatives of EDI, as well as by
affiliated and unaffiliated broker-dealers with which EDI has entered into
selling agreements. We pay broker-dealer sales compensation that will not exceed
an amount equal to 1% annually of the account value on a contract date
anniversary. EDI may also receive compensation and reimbursement for its
marketing services under the terms of its distribution agreement with Equitable
Life. Broker-dealers receiving sales compensation will generally pay a portion
of it to their registered representatives as commissions related to sales of the
contracts. The offering of the contracts is intended to be continuous.
<PAGE>
9 Investment performance
--------
46
--------------------------------------------------------------------------------
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 optional
baseBUILDER benefits charge, but do not reflect the charges designed to
approximate certain taxes 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
optional baseBUILDER benefits charge or the charges designed to approximate
certain taxes 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. The
contracts were first offered on October 1, 1997.
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 and Alliance Common
Stock options for periods before March 22, 1985 reflect the results of the
variable investment options that preceded them. The "Since portfolio inception"
figures for these options are based on the date of inception of the preceding
variable investment options. We have adjusted these results to reflect the
maximum investment advisory fee payable for the portfolios, as well as an
assumed charge of 0.06% for direct operating expenses.
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 of the variable investment 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
<PAGE>
----------
47
--------------------------------------------------------------------------------
portfolio. Also, they do not reflect other contract charges such as the
mortality and expense risks charge, administrative charge, distribution charge,
or optional benefit charge. 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 HIGH YIELD: Benchmark #1 - Merrill Lynch High Yield
Master Index and Benchmark #2 - Credit Suisse First Boston Global High Yield
Index.
ALLIANCE MONEY MARKET: Salomon Brothers Three-Month T-Bill
Index.
EQ/ALLIANCE PREMIER GROWTH: Standard & Poor's 500 Index.
ALLIANCE SMALL CAP GROWTH: Russell 2000 Growth Index.
EQ/ALLIANCE TECHNOLOGY: NASDAQ Composite.
BT EQUITY 500 INDEX: Standard & Poor's 500 Index.
BT SMALL COMPANY INDEX: Russell 2000 Index.
BT INTERNATIONAL EQUITY INDEX: Morgan Stanley Capital
International Europe, Australia, Far East Index.
CAPITAL GUARDIAN INTERNATIONAL: Morgan Stanley Capital
International Europe, Australia, Far East 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.
J.P. MORGAN CORE BOND: Salomon Brothers Broad Investment
Grade Bond.
LAZARD LARGE CAP VALUE: Standard & Poor's 500 Index.
LAZARD SMALL CAP VALUE: Russell 2000 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 GROWTH & INCOME VALUE: Standard & Poor's 500
Index.
EQ/PUTNAM INTERNATIONAL EQUITY: Morgan Stanley Capital
International Europe, Australia, Far East Index.
EQ/PUTNAM INVESTORS GROWTH: Standard & Poor's 500 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 Equitable Accumulator Select performance
relative to other variable annuity products.
<PAGE>
------
48
--------------------------------------------------------------------------------
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 16.65% 7.48% 13.92% 14.33% 7.02% 15.51%
--------------------------------------------------------------------------------------------------------------------
Alliance Common Stock 22.89% 25.37% 25.51% 16.16% 25.37% 14.41%
--------------------------------------------------------------------------------------------------------------------
Alliance High Yield (5.13)% 0.70% 7.63% 7.96% 1.28% 7.08%
--------------------------------------------------------------------------------------------------------------------
Alliance Money Market 3.05% 3.10% 3.16% 2.92% 3.02% 4.71%
--------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth 25.58% - - - 15.53% 15.53%
--------------------------------------------------------------------------------------------------------------------
BT Equity 500 Index 18.38% - - - 20.58% 20.58%
--------------------------------------------------------------------------------------------------------------------
BT Small Company Index 18.80% - - - 6.69% 6.69%
--------------------------------------------------------------------------------------------------------------------
BT International Equity Index 25.43% - - - 21.58% 21.58%
--------------------------------------------------------------------------------------------------------------------
EQ/Evergreen 7.97% - - - 7.97% 7.97%
--------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Foundation 5.64% - - - 5.64% 5.64%
--------------------------------------------------------------------------------------------------------------------
J.P. Morgan Core Bond (3.17)% - - - 1.77% 1.77%
--------------------------------------------------------------------------------------------------------------------
Lazard Large Cap Value 1.88% - - - 9.56% 9.56%
--------------------------------------------------------------------------------------------------------------------
Lazard Small Cap Value 0.11% - - - (4.49)% (4.49)%
--------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity 17.04% - - - 15.82% 15.82%
--------------------------------------------------------------------------------------------------------------------
Mercury World Strategy 19.40% - - - 10.08% 10.08%
--------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies 70.90% - - - 45.64% 45.64%
--------------------------------------------------------------------------------------------------------------------
MFS Growth with Income 6.98% - - - 6.98% 6.98%
--------------------------------------------------------------------------------------------------------------------
MFS Research 21.15% - - - 21.72% 21.72%
--------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity 92.62% - - - 17.35% 3.58%
--------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (2.94)% - - - 8.14% 8.14%
--------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity 57.69% - - - 29.62% 29.62%
--------------------------------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth 28.18% - - - 32.29% 32.29%
--------------------------------------------------------------------------------------------------------------------
</TABLE>
* The variable investment option inception dates are: Alliance Money
Market, Alliance High Yield, Alliance Common Stock, and EQ/Aggressive
Stock (October 16, 1996); Alliance Small Cap Growth, MFS Research, MFS
Emerging Growth Companies, Mercury Basic Value Equity, Mercury World
Strategy, EQ/Putnam Growth & Income Value, EQ/Putnam Investors Growth,
and EQ/Putnam International Equity (May 1, 1997); BT Equity 500 Index, BT
Small Company Index, BT International Equity Index, J.P. Morgan Core
Bond, Lazard Large Cap Value, Lazard Small Cap Value, Morgan Stanley
Emerging Markets Equity (December 31, 1997); EQ/Evergreen, EQ/Evergreen
Foundation and MFS Growth with Income (December 31, 1998). The inception
dates for the variable investment options that became available after
December 31, 1998, and are therefore not shown in this table are:
EQ/Alliance Premier Growth, Capital Guardian U.S. Equity, Capital
Guardian Research, Capital Guardian International (April 30, 1999); and
EQ/Alliance Technology (May 1, 2000).
** 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 October 18, 1999. The portfolio inception dates
are: Alliance Money Market (July 13, 1981); Alliance High Yield (January
2, 1987); Alliance Common Stock (January 13, 1976); EQ/Aggressive Stock
(January 27, 1986); Alliance Small Cap Growth,
<PAGE>
-----
49
--------------------------------------------------------------------------------
MFS Research, MFS Emerging Growth Companies, Mercury Basic Value Equity,
Mercury World Strategy, EQ/Putnam Growth & Income Value, EQ/Putnam
Investors Growth, and EQ/Putnam International Equity (May 1, 1997); BT
Equity 500 Index, BT Small Company Index, BT International Equity Index,
J.P. Morgan Core Bond, Lazard Large Cap Value, and Lazard Small Cap Value
(January 1, 1998); Morgan Stanley Emerging Markets Equity (August 20,
1997);EQ/Evergreen, EQ/Evergreen Foundation and MFS Growth with Income
(December 31, 1998). The inception dates for the portfolios that became
available after December 31, 1998 and are therefore not shown in the
tables are: EQ/Alliance Premier Growth, Capital Guardian U.S. Equity,
Capital Guardian Research, Capital Guardian International (April 30,
1999); and EQ/Alliance Technology (May 1, 2000).
<PAGE>
-------
50
--------------------------------------------------------------------------------
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 $ 1,166.50 $ 1,241.66 $ 1,918.59 $ 3,814.75 $ 7,446.18
--------------------------------------------------------------------------------------------------------------------
Alliance Common Stock $ 1,228.90 $ 1,970.61 $ 3,115.05 $ 4,473.29 $ 25,180.87
--------------------------------------------------------------------------------------------------------------------
Alliance High Yield $ 948.70 $ 1,021.10 $ 1,444.12 $ 2,150.45 $ 2,433.05
--------------------------------------------------------------------------------------------------------------------
Alliance Money Market $ 1,030.50 $ 1,095.85 $ 1,168.38 $ 1,333.83 $ 2,338.07
--------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth $ 1,255.80 - - - $ 1,470.05
--------------------------------------------------------------------------------------------------------------------
BT Equity 500 Index $ 1,183.80 - - - $ 1,453.88
--------------------------------------------------------------------------------------------------------------------
BT Small Company Index $ 1,188.00 - - - $ 1,138.28
--------------------------------------------------------------------------------------------------------------------
BT International Equity Index $ 1,254.30 - - - $ 1,478.26
--------------------------------------------------------------------------------------------------------------------
EQ/Evergreen $ 1,079.70 - - - $ 1,079.70
--------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Foundation $ 1,056.40 - - - $ 1,056.40
--------------------------------------------------------------------------------------------------------------------
J.P. Morgan Core Bond $ 968.30 - - - $ 1,035.74
--------------------------------------------------------------------------------------------------------------------
Lazard Large Cap Value $ 1,018.80 - - - $ 1,200.40
--------------------------------------------------------------------------------------------------------------------
Lazard Small Cap Value $ 1,001.10 - - - $ 912.25
--------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies $ 1,709.00 - - - $ 2,726.97
--------------------------------------------------------------------------------------------------------------------
MFS Growth with Income $ 1,069.80 - - - $ 1,069.80
--------------------------------------------------------------------------------------------------------------------
MFS Research $ 1,211.50 - - - $ 1,689.78
--------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity $ 1,170.40 - - - $ 1,479.84
--------------------------------------------------------------------------------------------------------------------
Mercury World Strategy $ 1,194.00 - - - $ 1,292.04
--------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity $ 1,926.20 - - - $ 1,086.70
--------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value $ 970.60 - - - $ 1,232.16
--------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity $ 1,576.90 - - - $ 1,998.47
--------------------------------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth $ 1,281.80 - - - $ 2,110.24
--------------------------------------------------------------------------------------------------------------------
</TABLE>
----------
* Portfolio inception dates are shown in Table 1.
<PAGE>
-----
51
--------------------------------------------------------------------------------
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 16.65% 7.69% 14.12% 14.51% - 15.67%
-------------------------------------------------------------------------------------------------------------------------------
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 22.89% 25.56% 25.70% 16.41% 16.21% 14.59%
-------------------------------------------------------------------------------------------------------------------------------
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 HIGH YIELD (5.13)% 0.90% 7.83% 8.19% - 7.34%
-------------------------------------------------------------------------------------------------------------------------------
Lipper High Current 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 MONEY MARKET 3.05% 3.31% 3.42% 3.23% - 5.00%
-------------------------------------------------------------------------------------------------------------------------------
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 SMALL CAP GROWTH 25.58% - - - - 15.77%
-------------------------------------------------------------------------------------------------------------------------------
Lipper Small Cap 34.26% - - - - 19.49%
-------------------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% - - - - 25.88%
-------------------------------------------------------------------------------------------------------------------------------
BT EQUITY 500 INDEX 18.38% - - - - 20.73%
-------------------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index 19.36% - - - - 23.16%
-------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 24.76%
-------------------------------------------------------------------------------------------------------------------------------
BT SMALL COMPANY INDEX 18.80% - - - - 6.86%
-------------------------------------------------------------------------------------------------------------------------------
Lipper Small Cap 34.26% - - - - 16.02%
-------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 8.70%
-------------------------------------------------------------------------------------------------------------------------------
BT INTERNATIONAL EQUITY INDEX 25.43% - - - - 21.75%
-------------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 26.76%
-------------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 23.43%
-------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN 7.97% - - - - 7.97%
-------------------------------------------------------------------------------------------------------------------------------
Lipper 29.78% - - - - 29.78%
-------------------------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 21.26%
-------------------------------------------------------------------------------------------------------------------------------
Benchmark #2 21.03% - - - - 21.03%
-------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN FOUNDATION 5.64% - - - - 5.64%
-------------------------------------------------------------------------------------------------------------------------------
Lipper 8.69% - - - - 8.69%
-------------------------------------------------------------------------------------------------------------------------------
Benchmark 11.15% - - - - 11.15%
-------------------------------------------------------------------------------------------------------------------------------
J.P. MORGAN CORE BOND (3.17)% - - - - 1.92%
-------------------------------------------------------------------------------------------------------------------------------
Lipper Intermediate Investment Grade Debt (0.83)% - - - - 3.84%
-------------------------------------------------------------------------------------------------------------------------------
Benchmark (1.77)% - - - - 2.64%
-------------------------------------------------------------------------------------------------------------------------------
LAZARD LARGE CAP VALUE 1.88% - - - - 9.71%
-------------------------------------------------------------------------------------------------------------------------------
Lipper Capital Appreciation 43.66% - - - - 32.61%
-------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 24.76%
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-----
52
--------------------------------------------------------------------------------
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>
LAZARD SMALL CAP VALUE 0.11% - - - - (4.32)%
------------------------------------------------------------------------------------------------------------------
Lipper Small Cap 34.26% - - - - 16.02%
------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 8.70%
------------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES 70.90% - - - - 45.89%
------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% - - - - 32.50%
------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 16.99%
------------------------------------------------------------------------------------------------------------------
MFS GROWTH WITH INCOME 6.98% - - - - 6.98%
------------------------------------------------------------------------------------------------------------------
Lipper Growth and Income 12.90% - - - - 12.90%
------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 21.03%
------------------------------------------------------------------------------------------------------------------
MFS RESEARCH 21.15% - - - - 21.96%
------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 29.33%
------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 17.04% - - - - 16.05%
------------------------------------------------------------------------------------------------------------------
Lipper 12.90% - - - - 18.00%
------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
------------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 19.40% - - - - 10.33%
------------------------------------------------------------------------------------------------------------------
Lipper 12.93% - - - - 11.91%
------------------------------------------------------------------------------------------------------------------
Benchmark 13.07% - - - - 16.18%
------------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS
EQUITY 92.62% - - - - 4.01%
------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% - - - - 2.90%
------------------------------------------------------------------------------------------------------------------
Benchmark 66.41% - - - - (0.88)%
------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE (2.94)% - - - - 8.35%
------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 18.00%
------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INTERNATIONAL EQUITY 57.69% - - - - 29.89%
------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 20.38%
------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 18.32%
------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INVESTORS GROWTH 28.18% - - - - 32.52%
------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 29.33%
------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
------------------------------------------------------------------------------------------------------------------
</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>
-----
53
--------------------------------------------------------------------------------
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 16.65% 24.90% 93.56% 287.60% - 658.94%
----------------------------------------------------------------------------------------------------------------------------------
Lipper 51.65% 102.87% 158.98% 311.69% - 683.45%
----------------------------------------------------------------------------------------------------------------------------------
Benchmark 18.09% 62.12% 147.96% 319.19% - 595.55%
----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 22.89% 97.94% 213.88% 356.81% 1,916.29% 2,513.58%
----------------------------------------------------------------------------------------------------------------------------------
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% 3,555.46%
----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (5.13)% 2.71% 45.81% 119.82% - 151.11%
----------------------------------------------------------------------------------------------------------------------------------
Lipper High Current 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 MONEY MARKET 3.05% 10.26% 18.30% 37.39% - 146.07%
----------------------------------------------------------------------------------------------------------------------------------
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 SMALL CAP GROWTH 25.58% - - - - 47.80%
----------------------------------------------------------------------------------------------------------------------------------
Lipper Small Cap 34.26% - - - - 62.98%
----------------------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% - - - - 84.91%
----------------------------------------------------------------------------------------------------------------------------------
BT EQUITY 500 INDEX 18.38% - - - - 45.76%
----------------------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index 19.36% - - - - 51.69%
----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 55.65%
----------------------------------------------------------------------------------------------------------------------------------
BT SMALL COMPANY INDEX 18.80% - - - - 14.20%
----------------------------------------------------------------------------------------------------------------------------------
Lipper Small Cap 34.26% - - - - 37.82%
----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 18.17%
----------------------------------------------------------------------------------------------------------------------------------
BT INTERNATIONAL EQUITY INDEX 25.43% - - - - 48.22%
----------------------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 61.58%
----------------------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 52.35%
----------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN 7.97% - - - - 7.97%
----------------------------------------------------------------------------------------------------------------------------------
Lipper 29.78% - - - - 29.78%
----------------------------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 29.78%
----------------------------------------------------------------------------------------------------------------------------------
Benchmark #2 21.03% 21.03%
----------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN FOUNDATION 5.64% - - - - 5.64%
----------------------------------------------------------------------------------------------------------------------------------
Lipper 8.69% - - - - 8.69%
----------------------------------------------------------------------------------------------------------------------------------
Benchmark 11.15% - - - - 11.15%
----------------------------------------------------------------------------------------------------------------------------------
J.P. MORGAN CORE BOND (3.17)% - - - - 3.88%
----------------------------------------------------------------------------------------------------------------------------------
Lipper Intermediate Investment Grade Debt (0.83)% - - - - 7.83%
----------------------------------------------------------------------------------------------------------------------------------
Benchmark (1.77)% - - - - 5.96%
----------------------------------------------------------------------------------------------------------------------------------
LAZARD LARGE CAP VALUE 1.88% - - - - 20.36%
----------------------------------------------------------------------------------------------------------------------------------
Lipper Capital Appreciation 43.66% - - - - 79.44%
----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 55.65%
----------------------------------------------------------------------------------------------------------------------------------
LAZARD SMALL CAP VALUE 0.11% - - - - (8.45)%
----------------------------------------------------------------------------------------------------------------------------------
Lipper Small Cap 34.26% - - - - 37.82%
----------------------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 18.17%
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-----
54
--------------------------------------------------------------------------------
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 70.90% - - - - 173.96%
-----------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% - - - - 120.85%
-----------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 52.05%
-----------------------------------------------------------------------------------------------------------------
MFS GROWTH WITH INCOME 6.98% - - - - 6.98%
-----------------------------------------------------------------------------------------------------------------
Lipper Growth and Income 12.90% - - - - 12.90%
-----------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 21.03%
-----------------------------------------------------------------------------------------------------------------
MFS RESEARCH 21.15% - - - - 69.84%
-----------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 101.13%
-----------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
-----------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 17.04% - - - - 48.77%
-----------------------------------------------------------------------------------------------------------------
Lipper 12.90% - - - - 56.85%
-----------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
-----------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 19.40% - - - - 30.00%
-----------------------------------------------------------------------------------------------------------------
Lipper 12.93% - - - - 35.69%
-----------------------------------------------------------------------------------------------------------------
Benchmark 13.07% - - - - 49.16%
-----------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS
EQUITY 92.62% - - - - 9.74%
-----------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% - - - - 7.48%
-----------------------------------------------------------------------------------------------------------------
Benchmark 66.41% - - - - 5.32%
-----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE (2.94)% - - - - 23.87%
-----------------------------------------------------------------------------------------------------------------
Lipper 12.90% - - - - 56.85%
-----------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
-----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INTERNATIONAL EQUITY 57.69% - - - - 100.96%
-----------------------------------------------------------------------------------------------------------------
Lipper 43.24% - - - - 65.44%
-----------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 56.70%
-----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INVESTORS GROWTH 28.18% - - - - 111.99%
-----------------------------------------------------------------------------------------------------------------
Lipper 29.78% - - - - 101.13%
-----------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
-----------------------------------------------------------------------------------------------------------------
</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>
-----
55
--------------------------------------------------------------------------------
TABLE 5
YEAR-BY-YEAR RATES OF RETURN:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
1990 1991 1992 1993 1994
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/Aggressive Stock 6.16% 83.43% (4.95)% 14.59% (5.59)%
-----------------------------------------------------------------------------------------------------------
Alliance Common Stock (9.82)% 35.34% 1.31% 22.52% (3.94)%
-----------------------------------------------------------------------------------------------------------
Alliance High Yield (2.95)% 22.17% 10.23% 20.88% (4.58)%
-----------------------------------------------------------------------------------------------------------
Alliance Money Market 6.23% 4.23% 1.65% 1.06% 2.10%
-----------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth - - - - -
-----------------------------------------------------------------------------------------------------------
BT Equity 500 Index - - - - -
-----------------------------------------------------------------------------------------------------------
BT Small Company Index - - - - -
-----------------------------------------------------------------------------------------------------------
BT International Equity Index - - - - -
-----------------------------------------------------------------------------------------------------------
EQ/Evergreen - - - - -
-----------------------------------------------------------------------------------------------------------
EQ/Evergreen Foundation - - - - -
-----------------------------------------------------------------------------------------------------------
J.P. Morgan Core Bond - - - - -
-----------------------------------------------------------------------------------------------------------
Lazard Large Cap Value - - - - -
-----------------------------------------------------------------------------------------------------------
Lazard Small Cap Value - - - - -
-----------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies - - - - -
-----------------------------------------------------------------------------------------------------------
MFS Growth with Income - - - - -
-----------------------------------------------------------------------------------------------------------
MFS Research - - - - -
-----------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity - - - - -
-----------------------------------------------------------------------------------------------------------
Mercury World Strategy - - - - -
-----------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity - - - - -
-----------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value - - - - -
-----------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity - - - - -
-----------------------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth - - - - -
-----------------------------------------------------------------------------------------------------------
<CAPTION>
1995 1996 1997 1998 1999
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/Aggressive Stock 29.21% 19.93% 8.77% (1.55)% 16.65%
-----------------------------------------------------------------------------------------------------------
Alliance Common Stock 30.01% 21.97% 26.84% 27.00% 22.89%
-----------------------------------------------------------------------------------------------------------
Alliance High Yield 17.71% 20.60% 16.28% (6.90)% (5.13)%
-----------------------------------------------------------------------------------------------------------
Alliance Money Market 3.80% 3.37% 3.48% 3.40% 3.05%
-----------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth - - 25.16%+ (5.97)% 25.58%
-----------------------------------------------------------------------------------------------------------
BT Equity 500 Index - - - 23.13% 18.38%
-----------------------------------------------------------------------------------------------------------
BT Small Company Index - - - (3.87)% 18.80%
-----------------------------------------------------------------------------------------------------------
BT International Equity Index - - - 18.17% 25.43%
-----------------------------------------------------------------------------------------------------------
EQ/Evergreen - - - - 7.97%
-----------------------------------------------------------------------------------------------------------
EQ/Evergreen Foundation - - - - 5.64%
-----------------------------------------------------------------------------------------------------------
J.P. Morgan Core Bond - - - 7.28% (3.17)%
-----------------------------------------------------------------------------------------------------------
Lazard Large Cap Value - - - 18.14% 1.88%
-----------------------------------------------------------------------------------------------------------
Lazard Small Cap Value - - - (8.56)% 0.11%
-----------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies - - 21.11%+ 32.37% 70.90%
-----------------------------------------------------------------------------------------------------------
MFS Growth with Income - - - - 6.98%
-----------------------------------------------------------------------------------------------------------
MFS Research - - 14.80%+ 22.12% 21.15%
-----------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity - - 15.77%+ 9.80% 17.04%
-----------------------------------------------------------------------------------------------------------
Mercury World Strategy - - 3.58%+ 5.11% 19.40%
-----------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity - - (20.66)%+ (28.19)% 92.62%
-----------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value - - 14.96%+ 11.02% (2.94)%
-----------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity - - 8.40%+ 17.56% 57.69%
-----------------------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth - - 23.32%+ 34.11% 28.18%
-----------------------------------------------------------------------------------------------------------
</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>
----------
56
--------------------------------------------------------------------------------
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 Investment Management Weekly
Morningstar's Variable Annuity Money Management Letter
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
--------------------------------------------------------------------------------
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 Alliance High Yield option
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 optional baseBUILDER benefits charge, and any charge
designed to approximate certain taxes that may be imposed
<PAGE>
----------
57
--------------------------------------------------------------------------------
on us, such as premium taxes in your state. The yields and effective yields for
the Alliance Money Market option, when used for the special dollar cost
averaging program, assume that no contract charges are deducted. For more
information, see "Yield Information for the Alliance Money Market Option and
Alliance High Yield Option" in the SAI.
<PAGE>
10 Incorporation of certain documents by reference
------
58
--------------------------------------------------------------------------------
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 unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.60%.
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
---------------------------
DECEMBER 31, 1999
--------------------------------------------------------------------
<S> <C>
EQ/AGGRESSIVE STOCK
--------------------------------------------------------------------
Unit value $ 78.30
--------------------------------------------------------------------
Number of units outstanding (000s) 141
--------------------------------------------------------------------
ALLIANCE COMMON STOCK
--------------------------------------------------------------------
Unit value $ 275.01
--------------------------------------------------------------------
Number of units outstanding (000s) 255
--------------------------------------------------------------------
ALLIANCE HIGH YIELD
--------------------------------------------------------------------
Unit value $ 25.73
--------------------------------------------------------------------
Number of units outstanding (000s) 574
--------------------------------------------------------------------
ALLIANCE MONEY MARKET
--------------------------------------------------------------------
Unit value $ 25.55
--------------------------------------------------------------------
Number of units outstanding (000s) 5,805
--------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
--------------------------------------------------------------------
Unit value $ 11.77
--------------------------------------------------------------------
Number of units outstanding (000s) 5,630
--------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH
--------------------------------------------------------------------
Unit value $ 14.78
--------------------------------------------------------------------
Number of units outstanding (000s) 818
--------------------------------------------------------------------
BT EQUITY 500 INDEX
--------------------------------------------------------------------
Unit value $ 14.58
--------------------------------------------------------------------
Number of units outstanding (000s) 6,216
--------------------------------------------------------------------
BT INTERNATIONAL EQUITY INDEX
--------------------------------------------------------------------
Unit value $ 14.82
--------------------------------------------------------------------
Number of units outstanding (000s) 992
--------------------------------------------------------------------
BT SMALL COMPANY INDEX
--------------------------------------------------------------------
Unit value $ 11.42
--------------------------------------------------------------------
Number of units outstanding (000s) 522
--------------------------------------------------------------------
CAPITAL GUARDIAN INTERNATIONAL
--------------------------------------------------------------------
Unit value $ 13.93
--------------------------------------------------------------------
Number of units outstanding (000s) 1,286
--------------------------------------------------------------------
CAPITAL GUARDIAN RESEARCH
--------------------------------------------------------------------
Unit value $ 10.60
--------------------------------------------------------------------
Number of units outstanding (000s) 987
--------------------------------------------------------------------
CAPITAL GUARDIAN U.S. EQUITY
--------------------------------------------------------------------
Unit value $ 10.26
--------------------------------------------------------------------
Number of units outstanding (000s) 2,436
--------------------------------------------------------------------
</TABLE>
<PAGE>
-------
A-2
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------------------------
FOR THE YEAR ENDING
-----------------------------
DECEMBER 31, 1999
<S> <C>
---------------------------------------------------------------------
EQ/EVERGREEN
---------------------------------------------------------------------
Unit value $ 10.80
---------------------------------------------------------------------
Number of units outstanding (000s) 8
---------------------------------------------------------------------
EQ/EVERGREEN FOUNDATION
---------------------------------------------------------------------
Unit value $ 10.56
---------------------------------------------------------------------
Number of units outstanding (000s) 44
---------------------------------------------------------------------
J.P. MORGAN CORE BOND
---------------------------------------------------------------------
Unit value $ 10.39
---------------------------------------------------------------------
Number of units outstanding (000s) 2,026
---------------------------------------------------------------------
LAZARD LARGE CAP VALUE
---------------------------------------------------------------------
Unit value $ 12.04
---------------------------------------------------------------------
Number of units outstanding (000s) 1,532
---------------------------------------------------------------------
LAZARD SMALL CAP VALUE
---------------------------------------------------------------------
Unit value $ 9.15
---------------------------------------------------------------------
Number of units outstanding (000s) 988
---------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES
---------------------------------------------------------------------
Unit value $ 27.40
---------------------------------------------------------------------
Number of units outstanding (000s) 1,680
---------------------------------------------------------------------
MFS GROWTH WITH INCOME
---------------------------------------------------------------------
Unit value $ 10.70
---------------------------------------------------------------------
Number of units outstanding (000s) 2,906
---------------------------------------------------------------------
MFS RESEARCH
---------------------------------------------------------------------
Unit value $ 16.99
---------------------------------------------------------------------
Number of units outstanding (000s) 1,725
---------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY
---------------------------------------------------------------------
Unit value $ 14.88
---------------------------------------------------------------------
Number of units (000s) 163
---------------------------------------------------------------------
MERCURY WORLD STRATEGY
---------------------------------------------------------------------
Unit value $ 13.00
---------------------------------------------------------------------
Number of units outstanding (000s) 13
---------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY
---------------------------------------------------------------------
Unit value $ 10.97
---------------------------------------------------------------------
Number of units outstanding (000s) 962
---------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
---------------------------------------------------------------------
Unit value $ 12.39
---------------------------------------------------------------------
Number of units outstanding (000s) 978
---------------------------------------------------------------------
EQ/PUTNAM INTERNATIONAL EQUITY
---------------------------------------------------------------------
Unit value $ 20.10
---------------------------------------------------------------------
Number of units outstanding (000s) 771
---------------------------------------------------------------------
EQ/PUTNAM INVESTORS GROWTH
---------------------------------------------------------------------
Unit value $ 16.54
---------------------------------------------------------------------
Number of units outstanding (000s) 576
---------------------------------------------------------------------
</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 was allocated on
February 15, 2001 to a fixed maturity option with a maturity date of February
15, 2010 (nine years later) at a hypothetical rate to maturity of 7.00%,
resulting in a maturity value of $183,846 on the maturity date. We further
assume that a withdrawal of $50,000 is made four years later on February 15,
2005.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
HYPOTHETICAL ASSUMED
RATE TO MATURITY ON
FEBRUARY 15, 2005
--------------------------------
5.00% 9.00%
------------------------------------------------------------------------------------------------
<S> <C> <C>
AS OF FEBRUARY 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 FEBRUARY 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 portion of 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 portion of a positive
market value adjustment is realized.
<PAGE>
Appendix III: Guaranteed minimum death benefit example
--------
C-1
--------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the guaranteed minimum death benefit.
The following illustrates the guaranteed minimum death benefit calculation.
Assuming $100,000 is allocated to the variable investment options (with no
allocation to the Alliance Money Market option or the fixed maturity options),
no additional contributions, no transfers and no withdrawals, the guaranteed
minimum death benefit for an annuitant age 45 would be calculated as follows:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
END OF 5% ROLL UP TO AGE 80 ANNUAL RATCHET TO AGE 80
CONTRACT GUARANTEED MINIMUM GUARANTEED MINIMUM
YEAR ACCOUNT VALUE DEATH BENEFIT(1) DEATH BENEFIT
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 $105,000 $ 105,000(1) $ 105,000(3)
-----------------------------------------------------------------------------------------
2 $115,500 $ 110,250(2) $ 115,500(3)
-----------------------------------------------------------------------------------------
3 $129,360 $ 115,763(2) $ 129,360(3)
-----------------------------------------------------------------------------------------
4 $103,488 $ 121,551(1) $ 129,360(4)
-----------------------------------------------------------------------------------------
5 $113,837 $ 127,628(1) $ 129,360(4)
-----------------------------------------------------------------------------------------
6 $127,497 $ 134,010(1) $ 129,360(4)
-----------------------------------------------------------------------------------------
7 $127,497 $ 140,710(1) $ 129,360(4)
-----------------------------------------------------------------------------------------
</TABLE>
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. 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.
5% ROLL UP TO AGE 80
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be equal to the guaranteed minimum death
benefit.
(2) At the end of contract years 2 and 3, the death benefit will be equal to
the current account value since it is higher than the current guaranteed
minimum death benefit.
ANNUAL RATCHET TO AGE 80
(3) At the end of contract years 1 through 3, the guaranteed minimum death
benefit is equal to the current account value.
(4) At the end of contract years 4 through 7, the guaranteed minimum death
benefit is equal to the guaranteed minimum death benefit at the end of the
prior year since it is equal to or higher than the current account value.
<PAGE>
Statement of additional
information
--------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
Unit Values 2
Custodian and Independent Accountants 3
Yield Information for the Alliance Money Market Option and Alliance High Yield Option 3
Financial Statements 5
</TABLE>
HOW TO OBTAIN AN EQUITABLE ACCUMULATOR SELECT STATEMENT OF ADDITIONAL
INFORMATION FOR SEPARATE ACCOUNT NO. 49
Send this request form to:
Equitable Accumulator Select
P.O. Box 1547 Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Equitable Accumulator Select SAI for Separate Account No. 49
dated May 1, 2000:
------------------------------------------------------------------------------
Name
------------------------------------------------------------------------------
Address
------------------------------------------------------------------------------
City State Zip
(SAI 4ACS(5/00))