Registration No. 333-23019
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 | |
Pre-Effective Amendment No. __ | |
Post-Effective Amendment No. 3 |X|
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 | |
Amendment No. __ | |
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THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Exact Name of Registrant)
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Name of Insurance Company)
1290 Avenue of the Americas, New York, New York 10104
(Address of Insurance Company's Principal Executive Offices)
Insurance Company's Telephone Number, including Area Code: (212) 554-1234
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ROBIN WAGNER
Vice President and Counsel
The Equitable Life Assurance Society of the United States
1290 Avenue of the Americas, New York, New York 10104
(Name and Address of Agent for Service)
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Please send copies of all communications to:
PETER E. PANARITES
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W., Washington, D.C. 20036
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<PAGE>
Approximate Date of Proposed Public Offering: Continuous
It is proposed that this filing will become effective (check
appropriate box):
|_| Immediately upon filing pursuant to paragraph (b) of Rule 485.
|X| On May 1, 2000 pursuant to paragraph (b) of Rule 485.
|_| 60 days after filing pursuant to paragraph (a)(1) of Rule 485.
|_| On (date) pursuant to paragraph (a)(1) of Rule 485.
|_| 75 days after filing pursuant to paragraph (a)(2) of Rule 485.
|_| On (date) pursuant to paragraph (a)(3) of Rule 485.
If appropriate, check the following box:
|_| This post-effective amendment designates a new effective date for
previously filed post-effective amendment.
Title of securities being registered:
Units of interest in separate accounts under variable annuity contracts
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<PAGE>
Retirement Investment
Account
PROSPECTUS DATED MAY 1, 2000
Please read this prospectus and keep it for future reference. It contains
important information you should know before participating or taking any other
action under RIA. Also, at the end of this prospectus you will find attached the
prospectus for EQ Advisors Trust, which contains important information about its
portfolios.
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ABOUT THE RETIREMENT INVESTMENT ACCOUNT
The Retirement Investment Account ("RIA") is an investment program that allows
employer plan assets to accumulate on a tax-deferred basis. Thirty-eight
investment funds ("Funds") and a guaranteed interest account ("investment
options") are available under RIA. The Funds and guaranteed interest account
comprise the "investment options" covered by this prospectus. RIA is offered
under a group annuity contract issued by THE EQUITABLE LIFE ASSURANCE SOCIETY OF
THE UNITED STATES.
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FUNDS
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POOLED SEPARATE ACCOUNTS
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o Alliance Bond - Separate o Alliance Common Stock -
Account No. 13 Separate Account No. 4
o Alliance Balanced - Separate o Alliance Aggressive Stock -
Account No. 10 Separate Account No. 3
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SEPARATE ACCOUNT NO. 51
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o Alliance Conservative Investors o Alliance Intermediate
o Alliance Equity Index Government Securities
o Alliance Global o Alliance International
o Alliance Growth and Income o Alliance Money Market
o Alliance Growth Investors o Alliance Quality Bond
o Alliance High Yield o Alliance Small Cap Growth
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SEPARATE ACCOUNT NO. 66
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o EQ/Alliance Premier Growth o MFS Research
o EQ/Alliance Technology(1) o Morgan Stanley Emerging
o Calvert Socially Responsible Markets Equity
o Capital Guardian International o EQ/Putnam Balanced
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
o Lazard Large Cap Value o T. Rowe Price Equity Income
o Lazard Small Cap Value o T. Rowe Price International
o Mercury Basic Value Equity(2) Stock
o Mercury World Strategy(3) o Warburg Pincus Small Company
o MFS Emerging Growth Value
Companies
o MFS Growth with Income
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(1) Anticipated to become available on or about May 22, 2000. This option may
not be available in California.
(2) Formerly named Merrill Lynch Basic Value Equity.
(3) Formerly named Merrill Lynch World Strategy.
The Alliance Bond, Alliance Balanced, Alliance Common Stock, and Alliance
Aggressive Stock Funds are managed by Equitable Life. The Alliance Bond Fund is
available only to employer plans that signed an agreement to invest monies in
the Alliance Bond Fund before June 1, 1994.
Each of the Separate Account No. 51 Funds and Separate Account No. 66 Funds
invest in shares of a corresponding portfolio ("portfolio") of EQ Advisors
Trust. In each case, the Funds and the corresponding portfolios have the same
name. You should also read the attached prospectus for EQ Advisors Trust and
keep it for future reference.
GUARANTEED INTEREST ACCOUNT. The guaranteed interest account credits interest
daily and we guarantee principal.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The Statement of Additional
Information ("SAI") dated May 1, 2000, is a part of the registration statement.
The SAI is available free of charge. You may request one by writing to our RIA
service office or calling 1-800-967-4560. 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 SECURITIES 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.
72134
<PAGE>
Contents of this prospectus
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2
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RETIREMENT INVESTMENT ACCOUNT
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Index of key words and phrases 4
RIA at a glance - key features 5
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FEE TABLE 7
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Examples 11
Condensed financial information 12
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1 RIA FEATURES AND BENEFITS 13
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Investment options 13
The Alliance Bond Fund 13
The Alliance Balanced Fund 14
The Alliance Common Stock Fund 15
The Alliance Aggressive Stock Fund 15
Investment manager of the Alliance Bond, Alliance
Balanced, Alliance Common Stock and Alliance
Aggressive Stock Funds 16
Funds investing in EQ Advisors Trust 16
Risks of investing in the Funds 20
Risk factors - Alliance Bond, Alliance Common Stock,
Alliance Aggressive Stock and Alliance Balanced Funds 20
Change of investment objectives 22
Guaranteed interest account 22
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2 HOW WE VALUE YOUR PLAN BALANCES 24
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When we use the words "we," "us" and "our," we mean Equitable Life.
When we address the reader of this prospectus with words such as "you" and
"your," we generally mean the employer or plan sponsor of the plans considering
RIA as an investment vehicle, unless otherwise explained.
Further, the terms and conditions of the employer's plan govern the aspects of
RIA available to plan participants. Accordingly, participants also should
carefully consider the features of their employer's plan, which may be different
from the features of RIA described in this prospectus.
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3
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3 TRANSFERS 25
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Transfers among investment options 25
Special rules applicable to the Alliance Bond Fund 25
Market timing 26
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4 ACCESS TO YOUR PLAN BALANCES 27
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Participant loans 27
Choosing benefit payment options 27
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5 RIA 28
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Summary of plan choices of RIA 28
Getting started 28
How to make contributions 29
Selecting investment options 29
Allocating program contributions 30
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6 DISTRIBUTIONS 31
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7 OPTIONAL PARTICIPANT RECORDKEEPING
SERVICES 33
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8 RATES OF RETURN 34
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Comparative benchmarks 34
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9 CHARGES AND EXPENSES 45
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Charges reflected in the unit values 45
Indirect expenses borne by the Funds 45
Charges which reduce the number of units 45
Other billing arrangements 47
Individual annuity charges 47
General information on fees and charges 47
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10 TAX INFORMATION 48
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11 MORE INFORMATION 55
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About changes or terminations 55
IRS disqualification 55
About the separate accounts 55
About EQ Advisors Trust 56
About the general account 56
When we pay proceeds 56
When transaction requests are effective 57
Voting rights 57
About legal proceedings 57
About our independent accountants 57
About the trustee 58
Reports we provide and available information 58
Acceptance and responsibilities 58
About registered units 58
Assignment and creditors' claims 58
Commissions and service fees we pay 59
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12 WHO IS EQUITABLE LIFE? 60
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APPENDIX: CONDENSED FINANCIAL INFORMATION A-1
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STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
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<PAGE>
Index of key words and phrases
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4
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Below is an index of key words and phrases used in this prospectus. The index
will refer you to the page where particular terms are defined or explained. This
index should help you locate more information on the terms used in this
prospectus.
PAGE
business day 24
benefit payment options 27
Code 5, 48
contracts 28
contributions 29
CWC 45
current rate 22
DOL 29
ERISA 5
EQ Advisors Trust 16, 56
Equitable Life 60
exclusive funding employer plan 28
financial professional 60
Funds cover
guaranteed interest account 25
IRS 48
investment options 13
Master Retirement Trust 28
minimum rate 22
optional participant recordkeeping service 33
PRS 5, 33
partial funding employer plan 28
participant-directed plans 25
portfolios cover
QDRO 46
RIA cover
SAI cover
separate accounts 55
trustee-directed plans 25
unit 24
unit value 24
<PAGE>
RIA at a glance - key features
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5
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EMPLOYER RIA is an investment program designed for employer plans
PLAN that qualify for tax-favored treatment under Section
ARRANGEMENTS 401(a) of the Internal Revenue Code of 1986, as amended
THAT CAN ("Code"). Eligible employer plans include defined benefit
USE THE plans, defined contribution plans or profit-sharing plans,
RIA CONTRACT including 401(k) plans. These employer plans generally
also must meet the requirements of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA").
Employer plan arrangements can choose RIA:
o As the exclusive funding vehicle for an employer plan.
If you choose this option, the annual amount of plan
contributions must be at least $10,000.
o As a partial investment funding vehicle for an employer
plan. Under this option, the aggregate amount of
contributions in the initial participation year must be at
least $50,000, and the annual aggregate amount of
contributions thereafter must be at least $25,000. The
guaranteed interest account is not available. Also, a
partial funding agreement must be completed.
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RIA o Thirty-eight investment options. The maximum number of
FEATURES active investment options that may be selected at any
time is 25.
o Benefit distribution payments.
o Optional Participant Recordkeeping Services ("PRS"),
which includes participant-level recordkeeping and making
benefit payments.
o Available for trustee-directed or participant-directed
plans.
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A participant-directed employer plan, is an employer plan
that permits investment direction by plan participants for
contribution allocations or transfers among investment
options. A trustee-directed employer plan, is an employer
plan that permits those same types of investment decisions
only by the employer, a trustee or any named fiduciary or an
authorized delegate of the plan.
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CONTRIBUTIONS o Can be allocated to any one option or divided among them.
o May be made by check or wire transfer.
o Are credited on the day of receipt if accompanied by
properly completed forms.
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TRANSFERS AMONG o Generally, amounts may be transferred among the
INVESTMENT OPTIONS investment options.
o There is no charge for transfers and no tax liability.
o Transfers to the Alliance Bond Fund and from the
guaranteed interest account may be subject to limitations.
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<PAGE>
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6
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PROFESSIONAL The Funds are managed by professional investment advisers.
INVESTMENT
MANAGEMENT
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GUARANTEED The guaranteed interest account pays interest at
OPTIONS guaranteed rates and provides guarantees of principal.
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TAX CONSIDERATIONS o On earnings No tax on investment earnings until
withdrawn.
o On transfers No tax on internal transfers among the
investment options.
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Because you are buying an annuity to fund a retirement
plan that already provides tax deferral, you should do so
for the contract's features and benefits other than tax
deferral. The tax deferral of the contract does not
provide necessary or additional benefits.
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CHARGES AND o Ongoing operations fee assessed against combined assets
EXPENSES invested in investment options including any outstanding
loan balance.
o Investment management and financial accounting fees and
other expenses charged on an investment Fund-by-Fund
basis, as applicable.
o No sales charges deducted from contributions, but
contingent withdrawal charges may apply for non-benefit
distributions.
o Charges of EQ Advisors Trust portfolios for management
fees and other expenses, and 12b-1 fees.
o Administrative fee if you purchase an annuity payout
option.
o Participant recordkeeping (optional) charge per
participant annual fee of $25.00.
o Loan fee of 1% of loan principal amount at the time the
plan loan is made.
o Administrative charge for Funds of Separate Account No.
51.
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.
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BENEFIT o Lump sum.
PAYMENT
OPTIONS o Installments on a time certain or dollar certain basis.
o Variety of fixed annuity benefit payout options as
available under an employer's plan.
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<PAGE>
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7
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ADDITIONAL o Participant loans (if elected by your employer; some
FEATURES restrictions apply).
o Quarterly reports showing:
o transactions in the investment options during the
quarter for the employer plan;
o the number of units in the Funds credited to the
employer plan; and
o the unit values and the balances in all of the
investment options as of the end of the quarter.
o Automatic confirmation notice to employer/trustee
following the processing of a financial investment option
transfer.
o Annual and semiannual report of the Funds.
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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.
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 financial professional
can show you information regarding other Equitable Life annuity contracts that
he or she distributes. You can also contact us to find out more about any of the
Equitable Life annuity contracts.
<PAGE>
Fee table
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8
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The fee table below will help you understand the various charges and expenses
that apply under RIA. The table reflects charges that affect plan balances
participating in the Funds as well as Fund charges you will directly bear under
your contract. The table also shows charges and expenses of the portfolios of EQ
Advisors Trust you will bear indirectly. The only charges shown in the table
that apply to the guaranteed interest account are the contingent withdrawal
charge and the ongoing operations fee. If an annuity payout benefit is elected,
we will impose a $175 charge. Charges designed to approximate certain taxes that
may be imposed on us, such as premium taxes in your state may also apply.
WE DEDUCT NO SALES LOADS FROM PLAN CONTRIBUTIONS, AND THERE ARE NO TRANSFER OR
EXCHANGE FEES WHEN MOVING ASSETS AMONG THE FUNDS.
The tables do not include other charges which are specific to the various plans,
such as optional participant recordkeeping and loan fees. Also, certain expenses
and fees shown in the tables may not apply to your plan. See "Charges and
expenses," for more details.
THE FUND CHARGES AND FEES ARE EXPRESSED AS AN ANNUAL PERCENTAGE OF AVERAGE NET
ASSETS. EQ ADVISORS TRUST FEES AND EXPENSES ARE SHOWN AS A PERCENTAGE OF AVERAGE
DAILY NET ASSETS IN EACH PORTFOLIO.
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PARTICIPATING PLAN TRANSACTION EXPENSES:
Maximum contingent withdrawal charge (as a
percentage of plan balances)(1) -----------6% Maximum-----------
Maximum annual ongoing operations fee (as a
percentage of plan balances)(2) ---------1.25% Maximum----------
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<TABLE>
<CAPTION>
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POOLED SEPARATE ACCOUNT FUNDS
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ALLIANCE ALLIANCE ALLIANCE ALLIANCE
BOND BALANCED COMMON AGGRESSIVE
FUND FUND STOCK FUND STOCK FUND
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<S> <C> <C> <C> <C>
SEPARATE ACCOUNT ANNUAL EXPENSES:
Annual investment management fee including financial
accounting fees (as a percentage of plan balances in
each Fund)(3) 0.50% 0.50% 0.50% 0.50%
TRUST ANNUAL EXPENSES: ----------------------not applicable----------------------
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</TABLE>
<PAGE>
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9
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EQ ADVISORS TRUST ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
<TABLE>
<CAPTION>
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SEPARATE ACCOUNT OTHER TOTAL ANNUAL
ANNUAL EXPENSE EXPENSES EXPENSES
ADMINISTRATIVE MANAGEMENT (AFTER EXPENSE (AFTER EXPENSE
CHARGE(3)(4) FEES(5) 12B-1 FEES(6) LIMITATION)(7) LIMITATION)(8)
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<S> <C> <C> <C> <C> <C>
Alliance Conservative Investors 0.05% 0.60% N/A 0.07% 0.67%
Alliance Equity Index 0.05% 0.25% N/A 0.05% 0.30%
Alliance Global 0.05% 0.73% N/A 0.09% 0.82%
Alliance Growth and Income 0.05% 0.59% N/A 0.05% 0.64%
Alliance Growth Investors 0.05% 0.57% N/A 0.05% 0.62%
Alliance High Yield 0.05% 0.60% N/A 0.05% 0.65%
Alliance Intermediate Government
Securities 0.05% 0.50% N/A 0.07% 0.57%
Alliance International 0.05% 0.85% N/A 0.20% 1.05%
Alliance Money Market 0.05% 0.34% N/A 0.05% 0.39%
EQ/Alliance Premier Growth N/A 0.90% 0.25% 0.00% 1.15%
Alliance Quality Bond 0.05% 0.53% N/A 0.05% 0.58%
Alliance Small Cap Growth 0.05% 0.75% N/A 0.07% 0.82%
EQ/Alliance Technology N/A 0.90% 0.25% 0.00% 1.15%
Calvert Socially Responsible N/A 0.65% 0.25% 0.15% 1.05%
Capital Guardian International N/A 0.85% 0.25% 0.10% 1.20%
Capital Guardian Research N/A 0.65% 0.25% 0.05% 0.95%
Capital Guardian U.S. Equity N/A 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen N/A 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen Foundation N/A 0.60% 0.25% 0.10% 0.95%
Lazard Large Cap Value N/A 0.65% 0.25% 0.05% 0.95%
Lazard Small Cap Value N/A 0.75% 0.25% 0.10% 1.10%
MFS Emerging Growth Companies N/A 0.65% 0.25% 0.10% 1.00%
MFS Growth with Income N/A 0.60% 0.25% 0.10% 0.95%
MFS Research N/A 0.65% 0.25% 0.05% 0.95%
Mercury Basic Value Equity N/A 0.60% 0.25% 0.10% 0.95%
Mercury World Strategy N/A 0.70% 0.25% 0.25% 1.20%
Morgan Stanley Emerging Markets Equity N/A 1.15% 0.25% 0.35% 1.75%
EQ/Putnam Balanced N/A 0.60% 0.25% 0.05% 0.90%
EQ/Putnam Growth & Income Value N/A 0.60% 0.25% 0.10% 0.95%
EQ/Putnam International Equity N/A 0.85% 0.25% 0.15% 1.25%
EQ/Putnam Investors Growth N/A 0.65% 0.25% 0.05% 0.95%
T. Rowe Price Equity Income N/A 0.60% 0.25% 0.10% 0.95%
T. Rowe Price International Stock N/A 0.85% 0.25% 0.15% 1.25%
Warburg Pincus Small Company Value N/A 0.75% 0.25% 0.10% 1.10%
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</TABLE>
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Notes:
(1) The contingent withdrawal charge is waived in certain circumstances. The
charge reduces to 2% of the amount withdrawn in the ninth participation
year and cannot be imposed after the ninth anniversary of a plan's
participation in RIA.
(2) The annual ongoing operations fee is deducted monthly and applied on a
decremental scale, declining to 0.50% on the portion of plan balances over
$1,000,000, except for plans that adopted RIA before February 9, 1986.
<PAGE>
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10
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Notes (continued):
(3) The Fund annual expenses and EQ Advisors Trust annual expenses (if
applicable) are reflected in the unit value.
(4) We reserve the right to increase the separate account administrative
charge upon 90 days written notice to the employer.
(5) The management fees shown reflect revised management fees, effective on or
about May 1, 2000 which were approved by shareholders. The management
fees shown for EQ/Putnam Balanced, EQ/Putnam Growth & Income Value,
Warburg Pincus Small Company Value and T. Rowe Price International Stock
do not reflect the waiver of a portion of each portfolio's investment
management fees that is currently in effect. The management fee for each
portfolio cannot be increased without a vote of each portfolio's
shareholders.
(6) Separate Account No. 66 invests in Class IB shares. The Class IB shares of
EQ Advisors Trust are subject to fees imposed under a distribution 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.
(7) The amount shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. See footnote 8 for any expense limitation
agreements.
On October 18, 1999, the Alliance portfolios in which the Funds of
Separate Account No. 51 invest became part of the portfolios of EQ
Advisors Trust. The "Other Expenses" for these portfolios have been
restated to reflect the estimated expenses that would have been incurred
had these portfolios been portfolios of EQ Advisors Trust for the entire
year ended December 31, 1999. The restated expenses reflect an increase of
0.01% for each of these portfolios.
(8) Equitable Life, EQ Advisors Trust 's manager, has entered into an expense
limitation agreement with respect to certain portfolios. Under this
agreement Equitable Life has agreed to waive or limit its fees and assume
other expenses. Under the expense limitation agreement, total annual
operating expenses of certain portfolios (other than interest, taxes,
brokerage commissions, capitalized expenditures and extraordinary
expenses) are limited as a percentage of the average daily net assets of
each of the following portfolios: 1.75% for Morgan Stanley Emerging
Markets Equity; 1.25% for T. Rowe Price International Stock and 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 and Warburg Pincus Small
Company Value; 1.05% for Calvert Socially Responsible; 1.00% for MFS
Emerging Growth Companies; 0.95% for Capital Guardian U.S. Equity, Capital
Guardian Research, EQ/Evergreen; EQ/Evergreen Foundation, Lazard Large Cap
Value, MFS Growth with Income, MFS Research, Mercury Basic Value Equity;
EQ/Putnam Growth & Income Value, EQ/Putnam Investors Growth and T. Rowe
Price Equity Income; and 0.90% for EQ/Putnam Balanced. The expense
limitations for the EQ/Putnam Growth & Income Value, EQ/Putnam
International Equity, Mercury Basic Value Equity, MFS Growth with Income,
MFS Research, MFS Emerging Growth Companies, T. Rowe Price Equity Income,
T. Rowe Price International Stock and Warburg Pincus Small Company Value
portfolios reflect an increase effective May 1, 2000. The expense
limitation for the EQ/Evergreen and Lazard Small Cap Value portfolios
reflect a decrease effective on May 1, 2000.
Absent the expense limitation, the "Other Expenses" for 1999 on an
annualized basis for each of the portfolios would have been as follows:
1.00% for Morgan Stanley Emerging Markets Equity; 0.30% for T. Rowe Price
International Stock; 0.32% 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; 0.24% for Warburg Pincus Small Company Value;
4.45% for Calvert Socially Responsible; 0.17% for MFS Emerging Growth
Companies; 0.34% for Capital Guardian U.S. Equity; 0.47% for Capital
Guardian Research; 1.87% for EQ/Evergreen; 1.07% for EQ/Evergreen
Foundation; 0.21% for Lazard Large Cap Value; 0.37% for MFS Growth with
Income; 0.17% for MFS Research; 0.17% for Mercury Basic Value Equity;
0.16% for EQ/Putnam Growth & Income Value; 0.19% for EQ/Putnam Investors
Growth; and 0.21% for T. Rowe Price Equity Income.
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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11
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EXAMPLES
The examples below show the expenses that a plan would pay in the situations
illustrated. We assume a single contribution of $1,000 invested in one of the
Funds listed and a 5% annual return is earned on assets in that Fund. For
purposes of these examples, the ongoing operations fee is computed by reference
to the actual aggregate annual ongoing operations fee as a percentage of total
assets by employer plans other than corporate plans. See "About registered
units" under "More information." These examples assume that no loan has been
taken and do not reflect PRS charges or a charge for premium taxes, none of
which may apply to any particular participant. The charges used in the examples
are the maximum charges rather than the lower current charges.
<TABLE>
<CAPTION>
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IF THE ENTIRE EMPLOYER PLAN BALANCE IS
WITHDRAWN AT THE END OF EACH PERIOD
SHOWN, THE EXPENSE WOULD BE:
-----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
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<S> <C> <C> <C> <C>
Alliance Aggressive Stock $75.42 $ 96.83 $119.02 $156.27
Alliance Balanced $75.42 $ 96.83 $119.02 $156.27
Alliance Bond $75.42 $ 96.83 $119.02 $156.27
Alliance Common Stock $75.42 $ 96.83 $119.02 $156.27
Alliance Conservative Investors $77.57 $103.49 $130.44 $181.45
Alliance Equity Index $73.95 $ 92.28 $111.16 $138.78
Alliance Global $79.04 $108.01 $138.18 $198.31
Alliance Growth and Income $77.28 $102.58 $128.89 $178.05
Alliance Growth Investors $77.08 $101.98 $127.86 $175.78
Alliance High Yield $77.38 $102.88 $129.41 $179.19
Alliance Intermediate Government Securities $76.59 $100.47 $125.26 $170.08
Alliance International $81.30 $114.91 $149.93 $223.67
Alliance Money Market $74.83 $ 95.01 $115.88 $149.31
EQ/Alliance Premier Growth $81.78 $116.41 $152.48 $229.11
Alliance Quality Bond $76.69 $100.77 $125.78 $171.22
Alliance Small Cap Growth $79.04 $108.01 $138.18 $198.31
EQ/Alliance Technology $81.78 $116.41 - -
Calvert Socially Responsible $80.81 $113.41 $147.39 $218.21
Capital Guardian International $82.27 $117.90 $155.01 $234.52
Capital Guardian Research $79.83 $110.41 $142.28 $207.20
Capital Guardian U.S. Equity $79.83 $110.41 $142.28 $207.20
EQ/Evergreen $79.83 $110.41 $142.28 $207.20
EQ/Evergreen Foundation $79.83 $110.41 $142.28 $207.20
- -------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
IF THE ENTIRE EMPLOYER PLAN BALANCE IS NOT
WITHDRAWN AT THE END OF EACH PERIOD
SHOWN, THE EXPENSE WOULD BE:
-----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alliance Aggressive Stock $13.21 $41.11 $ 71.10 $156.27
Alliance Balanced $13.21 $41.11 $ 71.10 $156.27
Alliance Bond $13.21 $41.11 $ 71.10 $156.27
Alliance Common Stock $13.21 $41.11 $ 71.10 $156.27
Alliance Conservative Investors $15.50 $48.13 $ 83.05 $181.45
Alliance Equity Index $11.65 $36.30 $ 62.88 $138.78
Alliance Global $17.07 $52.90 $ 91.14 $198.31
Alliance Growth and Income $15.19 $47.18 $ 81.43 $178.05
Alliance Growth Investors $14.98 $46.54 $ 80.35 $175.78
Alliance High Yield $15.29 $47.50 $ 81.97 $179.19
Alliance Intermediate Government Securities $14.46 $44.94 $ 77.63 $170.08
Alliance International $19.46 $60.19 $103.44 $223.67
Alliance Money Market $12.59 $39.19 $ 67.82 $149.31
EQ/Alliance Premier Growth $19.98 $61.77 $106.10 $229.11
Alliance Quality Bond $14.57 $45.26 $ 78.18 $171.22
Alliance Small Cap Growth $17.07 $52.90 $ 91.14 $198.31
EQ/Alliance Technology $19.98 $61.77 - -
Calvert Socially Responsible $18.94 $58.61 $100.78 $218.21
Capital Guardian International $20.50 $63.35 $108.75 $234.52
Capital Guardian Research $17.90 $55.44 $ 95.43 $207.20
Capital Guardian U.S. Equity $17.90 $55.44 $ 95.43 $207.20
EQ/Evergreen $17.90 $55.44 $ 95.43 $207.20
EQ/Evergreen Foundation $17.90 $55.44 $ 95.43 $207.20
- -------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ------
12
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
IF THE ENTIRE EMPLOYER PLAN BALANCE IS
WITHDRAWN AT THE END OF EACH PERIOD
SHOWN, THE EXPENSE WOULD BE:
------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Lazard Large Cap Value $79.83 $110.41 $142.28 $207.20
Lazard Small Cap Value $81.30 $114.91 $149.93 $223.67
Mercury Basic Value Equity $79.83 $110.41 $142.28 $207.20
Mercury World Strategy $82.27 $117.90 $155.01 $234.52
MFS Emerging Growth Companies $80.32 $111.91 $144.84 $212.72
MFS Growth with Income $79.83 $110.41 $142.28 $207.20
MFS Research $79.83 $110.41 $142.28 $207.20
Morgan Stanley Emerging Markets Equity $87.66 $134.24 $182.55 $292.27
EQ/Putnam Balanced $79.34 $108.91 $139.72 $201.65
EQ/Putnam Growth & Income Value $79.83 $110.41 $142.28 $207.20
EQ/Putnam International Equity $82.76 $119.40 $157.54 $239.90
EQ/Putnam Investors Growth $79.83 $110.41 $142.28 $207.20
T. Rowe Price Equity Income $79.83 $110.41 $142.28 $207.20
T. Rowe Price International Stock $82.76 $119.40 $157.54 $239.90
Warburg Pincus Small Company Value $81.30 $114.91 $149.93 $223.67
- -----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
IF THE ENTIRE EMPLOYER PLAN BALANCE IS NOT
WITHDRAWN AT THE END OF EACH PERIOD
SHOWN, THE EXPENSE WOULD BE:
---------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Lazard Large Cap Value $17.90 $55.44 $ 95.43 $207.20
Lazard Small Cap Value $19.46 $60.19 $103.44 $223.67
Mercury Basic Value Equity $17.90 $55.44 $ 95.43 $207.20
Mercury World Strategy $20.50 $63.35 $108.75 $234.52
MFS Emerging Growth Companies $18.42 $57.03 $ 98.11 $212.72
MFS Growth with Income $17.90 $55.44 $ 95.43 $207.20
MFS Research $17.90 $55.44 $ 95.43 $207.20
Morgan Stanley Emerging Markets Equity $26.24 $80.59 $137.56 $292.27
EQ/Putnam Balanced $17.38 $53.86 $ 92.75 $201.65
EQ/Putnam Growth & Income Value $17.90 $55.44 $ 95.43 $207.20
EQ/Putnam International Equity $21.03 $64.92 $111.40 $239.90
EQ/Putnam Investors Growth $17.90 $55.44 $ 95.43 $207.20
T. Rowe Price Equity Income $17.90 $55.44 $ 95.43 $207.20
T. Rowe Price International Stock $21.03 $64.92 $111.40 $239.90
Warburg Pincus Small Company Value $19.46 $60.19 $103.44 $223.67
- --------------------------------------------------------------------------------------
</TABLE>
The examples above should not be considered a representation of past or future
expenses for each Fund. Actual expenses may be greater or less than those shown
above. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
ANNUITY ADMINISTRATIVE FEE. We generally deduct a $175 annuity administrative
fee from amounts applied to purchase certain life annuity payout options.
Assuming an annuity payout option could be issued and you elect a life annuity
payout option, the expenses shown in the example for "If the entire employer
plan balance is not withdrawn" would, in each case, be increased by $2.22 based
on the average amount applied to annuity payout options in 1999.
CONDENSED FINANCIAL INFORMATION
Please see the Appendix at the end of this prospectus for unit values and the
number of units outstanding of each Fund available as of December 31, 1999.
FINANCIAL STATEMENTS OF THE FUNDS
Each of the Funds is, or is part of, one of our separate accounts as described
in "About the separate accounts" under "More information." The financial
statements of the Funds are contained in the SAI. The financial statements for
the portfolios of EQ Advisors Trust are included in the respective SAI for each
Trust.
<PAGE>
1 RIA features and benefits
- ------
13
- --------------------------------------------------------------------------------
INVESTMENT OPTIONS
We offer 38 investment options under RIA, including the Funds and the guaranteed
interest account. Each Fund has a different investment objective. The Funds try
to meet their investment objectives by investing either in a portfolio of
securities or by holding mutual fund shares. The maximum number of active
investment options that can be available under an employer plan at any time is
25. We cannot assure you that any of the Funds will meet their investment
objectives.
THE ALLIANCE BOND FUND
OBJECTIVE
The Alliance Bond Fund (Separate Account No. 13) is available only to employer
plans that signed an agreement to invest monies in the Alliance Bond Fund before
June 1, 1994. The Alliance Bond Fund seeks to achieve maximum total return,
consistent with investment quality, with less volatility than a long-term bond
account, by investing primarily in publicly traded fixed-income securities, such
as bonds, debentures and notes. The Fund maintains its own portfolio of
securities. The Alliance Bond Fund is designed for participants who seek a
greater rate of return than that normally provided by money market investments
and less volatility than that experienced by long-term bond investments.
INVESTMENT STRATEGIES
The Alliance Bond Fund invests primarily in investment grade fixed-income
securities including, but not limited to, the following: obligations issued or
guaranteed by the U.S. Government (such as U.S. Treasury securities), its
agencies (such as the Government National Mortgage Association), or
instrumentalities (such as the Federal National Mortgage Association); corporate
debt securities; mortgage pass-through securities; collateralized mortgage
obligations; asset-backed securities; zero coupon bonds; and equipment trust
certificates. Investment grade securities are those rated within the four
highest credit categories (AAA, AA, A or BBB) by Standard & Poor's Corp. ("S&P")
or (Aaa, Aa, A or Baa) by Moody's Investors Service, Inc. ("Moody's"), or, if
unrated, are of comparable investment quality as determined by our credit
analysis. Bonds rated below A by S&P or Moody's are more susceptible to adverse
economic conditions or changing circumstances than those rated A or higher, but
we regard these lower-rated bonds as having an adequate capacity to pay
principal and interest.
The Alliance Bond Fund invests in fixed-income securities that have maturities
of ten years or less. The weighted average duration of the Fund's total
portfolio is expected to be between one and five years. Duration is a principle
used in selecting portfolio securities that indicates a particular fixed-income
security's price volatility. Duration is measured by taking into account (1) all
of the expected payments relating to that security and (2) the time in the
future when each payment will be made, and then weighting all such times by the
present value of the corresponding payments. The duration of a fixed-income
security with interest payments occurring prior to its maturity is always
shorter than its term to maturity. In addition, given identical maturities, the
lower the stated rate of interest of a fixed-income security, the longer its
duration, and, conversely, the higher the stated rate of interest of a
fixed-income security, the shorter its duration. We believe that the Alliance
Bond Fund's policy of purchasing intermediate duration bonds significantly
reduces the volatility of the Fund's unit price over that of a long-term bond
account.
Additionally, the Alliance Bond Fund may also invest in high-quality money
market securities, including, but not limited to, obligations of the U.S.
Government, its agencies and instrumentalities; negotiable certificates of
deposit; banker's acceptances or bank time deposits; repurchase agreements;
master demand notes; and other money market instruments, either directly or
through our Separate Account 2A. For temporary or defensive purposes, the
Alliance Bond Fund also may invest directly or indirectly in money market
securities without limitation.
<PAGE>
- ------
14
- --------------------------------------------------------------------------------
Finally, the Alliance Bond Fund may purchase fixed-income securities and money
market securities having adjustable rates of interest with periodic demand
features. The Alliance Bond Fund may also purchase fixed-income securities and
certain money market securities on a when-issued or delayed delivery basis.
RISKS OF INVESTMENT STRATEGIES
See "Risks of investing in the Funds," below, for information on the risks
associated with an investment in the Funds generally, and in the Alliance Bond
Fund specifically.
THE ALLIANCE BALANCED FUND
OBJECTIVES
The Alliance Balanced Fund (Separate Account No. 10) seeks both appreciation of
capital and current income by investing in a diversified portfolio of common
stocks, other equity-type securities and longer-term fixed income securities.
The Fund also seeks current income by investing in publicly traded debt
securities and short-term money market instruments. The Fund maintains its own
portfolio of securities.
INVESTMENT STRATEGIES
The Alliance Balanced Fund varies the portion of its assets invested in each
type of security in accordance with our evaluation of economic conditions, the
general level of common stock prices, anticipated interest rates and other
relevant considerations, including our assessment of the risks associated with
each investment medium.
In general, the Fund invests the greatest portion of its assets in equity
securities. During each of the past ten years, the Fund invested between 43% and
86% of its assets in equity securities, including equity-type securities such as
convertible preferred stocks or convertible debt instruments.
The Fund's investment in non-money market debt securities consists primarily of
(a) publicly-traded securities issued or guaranteed by the United States
Government or its agencies or instrumentalities and (b) corporate fixed income
securities, including, but not limited to, bank obligations, notes, asset-backed
securities, mortgage pass-through obligations, collateralized mortgage
obligations, zero coupon bonds, and preferred stock. The Fund may also buy debt
securities with equity features such as conversion or exchange rights, warrants
for the acquisition of stock, or participations based on revenues, sales or
profits. The Fund only invests in investment grade non-money market debt
securities, i.e., those rated, at the time of acquisition, BBB or higher by
Standard & Poor's Corporation (S&P) or Baa or higher by Moody's Investors
Services, Inc. (Moody's) or, if unrated, are of comparable investment quality.
The average maturity of the debt securities held by the Fund varies according to
market conditions and the stage of interest rate cycles. The Fund may realize
gains on debt securities when such actions are considered advantageous in light
of existing market conditions.
The Fund also may invest (a) up to 10% of its total assets in restricted
securities; (b) 20% in foreign securities without substantial business in the
United States; (c) in repurchase agreements; and (d) in money market securities,
either directly or through our Separate Account No. 2A. The Fund may also
purchase and sell securities on a when-issued or delayed delivery basis.
Finally, the Fund may (a) invest in put and call options and (b) trade in stock
index or interest rate futures, and foreign currency forward contracts, for
hedging purposes only. In option transactions, the economic benefit will be
offset by the cost of the option, while any loss would be limited to such cost.
The Fund also enters into hedging transactions. These transactions are
undertaken only when any required regulatory procedures have been completed and
when economic and market conditions indicate that such transactions would serve
the best interests of the Fund.
RISKS OF INVESTMENT STRATEGIES
See "Risks of investing in the Funds," below, for information on the risks
associated with an investment in the Funds generally, and in the Alliance
Balanced Fund specifically.
<PAGE>
- ------
15
- --------------------------------------------------------------------------------
THE ALLIANCE COMMON STOCK FUND
OBJECTIVE
The Alliance Common Stock Fund seeks to achieve long-term growth of capital by
investing in the securities of companies that we believe will share in the
growth of our nation's economy - and those of other leading industrialized
countries - over a long period. The Fund maintains its own portfolio of
securities.
INVESTMENT STRATEGIES
The Alliance Common Stock Fund (Separate Account No. 4) invests primarily in
common stocks. The Fund generally invests in securities of intermediate and
large sized companies, but may invest in stocks of companies of any size. At
times the Fund may invest its equity holdings in a relatively small number of
issuers, provided that no investment causes: (1) more than 10% of the Fund's
book value to be invested in the securities of one issuer; or (2) more than 40%
of the Fund's book value to be invested in the securities of four or fewer
issuers.
The Alliance Common Stock Fund also may invest smaller amounts in other
equity-type securities, such as convertible preferred stocks or convertible debt
instruments. The Fund also may invest in non-equity investments, including
non-participating and non-convertible preferred stocks, bonds and debentures.
The Fund's non-equity investments could be substantial if we believe that the
Fund will not meet its investment objectives by buying common stock and other
equity-type securities. The Fund also may invest up to 10% of its total assets
in restricted securities (securities not freely traded) and up to 15% of its
total assets in foreign securities (securities of established foreign companies
without substantial business in the United States.)
As a defensive strategy, the Alliance Common Stock Fund may make temporary
investments in government obligations, short-term commercial paper and other
money market instruments, either directly or through our Separate Account No.
2A, which invests in such securities. The Fund would not be pursuing its
investment objective when using this temporary defensive strategy.
RISKS OF INVESTMENT STRATEGIES
See "Risks of investing in the Funds," below, for information on the risks
associated with an investment in the Funds generally, and in the Alliance Common
Stock Fund specifically.
THE ALLIANCE AGGRESSIVE STOCK FUND
OBJECTIVES
The Alliance Aggressive Stock Fund (Separate Account No. 3) seeks to achieve
long-term capital growth, consistent with investment quality, by investing
primarily in securities of medium and smaller sized companies (with
capitalization generally between $100 million and $5 billion) that we believe
have greater growth potential than larger companies. The Fund maintains its own
portfolio of securities.
INVESTMENT STRATEGIES
The Alliance Aggressive Stock Fund invests primarily in common stocks of medium
and smaller sized companies. The Fund may also invest in securities not
generally defined as growth stocks, but with unusual value or earnings
potential. For example, the Fund may seek opportunities for capital growth by
investing in companies (a) believed to be in cyclical industries; (b) whose
securities are temporarily undervalued; (c) in special situations; (d) that are
younger but not widely known; or (e) doing business in countries whose economies
are expanding. The Fund may also invest in foreign companies without substantial
business in the United States. The Fund may invest in other equity-type
investments, and may at times be less diversified than a traditional equity
portfolio.
The Fund may also invest in short-term debt securities such as corporate notes,
and temporarily invest in money market
<PAGE>
- ------
16
- --------------------------------------------------------------------------------
investments, including our Separate Account No. 2A. Additionally, the Fund may
invest up to 10% of its total assets in restricted securities.
RISKS OF INVESTMENT STRATEGIES
See "Risks of investing in the Funds," below, for information on the risks
associated with an investment in the Funds generally, and in the Alliance
Aggressive Stock Fund specifically. Note, however, that due to the Alliance
Aggressive Stock Fund's aggressive investment policies and less diversified
investments, this Fund provides greater growth potential and greater risk than
the Alliance Bond, Alliance Common Stock and Alliance Balanced Funds. As a
result, you should consider limiting the amount allocated to this Fund,
particularly as you near retirement.
INVESTMENT MANAGER OF THE ALLIANCE BOND, ALLIANCE BALANCED, ALLIANCE COMMON
STOCK AND ALLIANCE AGGRESSIVE STOCK FUNDS
We manage the Alliance Bond, Alliance Balanced, Alliance Common Stock and
Alliance Aggressive Stock Funds. We currently use the personnel and facilities
of Alliance Capital Management L.P. ("Alliance") for portfolio management,
securities selection and transaction services. We are the indirect
majority-owners of Alliance, a publicly-traded limited partnership. We and
Alliance are each registered investment advisers under the Investment Advisers
Act of 1940.
Alliance acts as investment adviser to various separate accounts and general
accounts of Equitable Life and other affiliated insurance companies. Alliance
also provides investment management and advisory services to mutual funds,
endowment Funds, insurance companies, foreign entities, qualified and non-tax
qualified corporate Funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations. As of December 31, 1999 Alliance had
total assets under management of over $368 billion. Alliance's main office is
located at 1345 Avenue of the Americas, New York, New York 10105.
The Investment Committee of our Board of Directors must authorize or approve the
securities held in the Alliance Bond, Alliance Balanced, Alliance Common Stock
and Alliance Aggressive Stock Funds. Subject to the Investment Committee's broad
supervisory authority, our investment officers and managers have complete
discretion over the assets of these Funds and have been given discretion as to
sales and, within specified limits, purchases of stocks, other equity securities
and certain debt securities. When an investment opportunity arises that is
consistent with the objectives of more than one account, we allocate investment
opportunities among accounts in an impartial manner based on certain factors
such as investment objective and current investment and cash positions.
As of December 31, 2000, we, together with Equitable Life's parent company, own
approximately 70% of the outstanding common stock of Donaldson, Lufkin &
Jenrette, Inc. ("DLJ"). A DLJ subsidiary, Donaldson, Lufkin & Jenrette
Securities Corporation, is one of the nation's largest investment banking and
securities firms. Another DLJ subsidiary, Autranet, Inc., is a securities broker
that markets independently originated research to institutions. Through the
Pershing Division of Donaldson, Lufkin & Jenrette Securities Corporation, DLJ
supplies correspondent services, including order execution, securities clearance
and other centralized financial services, to numerous independent regional
securities firms and banks.
To the extent permitted by law and consistent with the Fund transaction
practices discussed in the prospectus, and subject to the consent of Fund
contractholders, the Funds may engage in securities and other transactions with
the above entities or may invest in shares of the investment companies with
which those entities have affiliations. In 1999, there were no such transactions
through DLJ subsidiaries.
FUNDS INVESTING IN EQ ADVISORS TRUST
The Funds of Separate Account Nos. 51 and 66 invest in corresponding portfolios
of EQ Advisors Trust. The investment results you will experience in any one of
those Funds will depend on the investment performance of the corresponding
portfolios. The table below shows the names of the corresponding portfolios,
their investment objectives, and their advisers.
<PAGE>
- ------
17
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
PORTFOLIOS OF EQ ADVISORS TRUST
- -----------------------------------------------------------------------------------------------------------------------
NAME OBJECTIVE ADVISER
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alliance Conservative Investors High total return without, in the Alliance Capital Management L.P.
adviser's opinion, undue risk to
principal
- -----------------------------------------------------------------------------------------------------------------------
Alliance Equity Index Total return (before EQ Advisors Trust Alliance Capital Management L.P.
and Separate Account No. 51
expenses) that approximates the total
return performance of the Standard &
Poor's 500 Composite Stock Price
Index
- -----------------------------------------------------------------------------------------------------------------------
Alliance Global Long-term growth of capital Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income High total return through a Alliance Capital Management L.P.
combination of current income and
capital appreciation
- -----------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors High total return consistent with the Alliance Capital Management L.P.
adviser's determination of reasonable
risk
- -----------------------------------------------------------------------------------------------------------------------
Alliance High Yield High return by maximizing current Alliance Capital Management L.P.
income and, to the extent consistent
with that objective, capital appreciation
- -----------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government High current income consistent with Alliance Capital Management L.P.
Securities relative stability of principal
- -----------------------------------------------------------------------------------------------------------------------
Alliance International Long-term growth of capital Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------
Alliance Money Market High level of current income while Alliance Capital Management L.P.
preserving assets and maintaining
liquidity
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth Long-term growth of capital Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology Long-term growth of capital Alliance Capital Management LP.
- -----------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond High current income consistent with Alliance Capital Management L.P.
preservation of capital
- -----------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth Long-term growth of capital Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ------
18
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PORTFOLIOS OF EQ ADVISORS TRUST (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------------
NAME OBJECTIVE ADVISER
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Calvert Socially Responsible Long-term capital appreciation Calvert Asset Management Company, Inc.
and Brown Capital Management, Inc.
- -------------------------------------------------------------------------------------------------------------------------
Capital Guardian International Long-term growth of capital by Capital Guardian Trust Company
investing 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.
- -------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Foundation In order of priority, reasonable income, Evergreen Asset Management Corp.
conservation of capital, and capital
appreciation
- -------------------------------------------------------------------------------------------------------------------------
Lazard Large Cap Value Capital appreciation Lazard Asset Management
- -------------------------------------------------------------------------------------------------------------------------
Lazard Small Cap Value Capital appreciation Lazard Asset Management
- -------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity Capital appreciation and, secondarily, Mercury Asset Management US
income
- -------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy High total investment return Mercury Asset Management US
- -------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies Long-term capital growth Massachusetts Financial Services Company
- -------------------------------------------------------------------------------------------------------------------------
MFS Growth with Income Reasonable current income and Massachusetts Financial Services Company
long-term growth of capital and
income
- -------------------------------------------------------------------------------------------------------------------------
MFS Research Long-term growth of capital and future Massachusetts Financial Services Company
income
- -------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Long-term capital appreciation Morgan Stanley Asset Management, Inc.
Equity
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ------
19
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
PORTFOLIOS OF EQ ADVISORS TRUST (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------
NAME OBJECTIVE ADVISER
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQ/Putnam Balanced Balanced investment Putnam Investment Management, Inc.
- --------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value Capital growth, current income is a Putnam Investment Management, Inc.
secondary objective
- --------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity Capital appreciation Putnam Investment Management, Inc.
- --------------------------------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth Long-term growth of capital and any Putnam Investment Management, Inc.
increased income that results from
this growth
- --------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income Substantial dividend income and also T. Rowe Price Associates, Inc.
capital appreciation
- --------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock Long-term growth of capital Rowe Price - Fleming International, Inc.
- --------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value Long-term capital appreciation Warburg Pincus Asset Management, Inc.
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
Please see "About EQ Advisors Trust" under "More information" for further
information regarding EQ Advisors Trust.
PLEASE REFER TO THE PROSPECTUS AND SAI OF EQ ADVISORS TRUST FOR A DETAILED
DISCUSSION OF THE INVESTMENT OBJECTIVES AND STRATEGIES, ADVISERS, RISK FACTORS
AND OTHER INFORMATION CONCERNING THE EQ ADVISORS TRUST AND ITS PORTFOLIOS.
<PAGE>
- ------
20
- --------------------------------------------------------------------------------
RISKS OF INVESTING IN THE FUNDS
All of the Funds invest in securities of one type or another. You should be
aware that any investment in securities carries with it a risk of loss, and you
could lose money investing in the Funds. The different investment objectives and
policies of each Fund may affect the return of each Fund and the risks
associated with an investment in that Fund.
Additionally, market and financial risks are inherent in any securities
investment. By market risks, we mean factors which do not necessarily relate to
a particular issuer, but affect the way markets, and securities within those
markets, perform. Market risks can be described in terms of volatility, that is,
the range and frequency of market value changes. Market risks include such
things as changes in interest rates, general economic conditions and investor
perceptions regarding the value of debt and equity securities. By financial
risks we mean factors associated with a particular issuer which may affect the
price of its securities, such as its competitive posture, its earnings and its
ability to meet its debt obligations. Both the financial and market risks of an
investment in the Alliance Bond Fund are expected to be less than those for the
Alliance Common Stock, Alliance Balanced and Alliance Aggressive Stock Funds.
The risk factors associated with an investment in the Alliance Bond, Alliance
Common Stock, Alliance Aggressive Stock and Alliance Balanced Funds are
described below. See the SAI for additional information regarding certain
investment techniques used by these Funds. See the prospectus for EQ Advisors
Trust for risk factors and investment techniques associated with the portfolios
in which the other Funds invest.
RISK FACTORS - ALLIANCE BOND, ALLIANCE COMMON STOCK, ALLIANCE AGGRESSIVE STOCK
AND ALLIANCE BALANCED FUNDS
COMMON STOCK. Investing in common stocks and related securities involves the
risk that the value of the stocks or related securities purchased will
fluctuate. These fluctuations could occur for a single company, an industry, a
sector of the economy, or the stock market as a whole. These fluctuations could
cause the value of the Fund's investments - and, therefore, the value of the
Fund's units - to fluctuate.
SECURITIES OF MEDIUM AND SMALLER SIZED COMPANIES. The Alliance Aggressive Stock
Fund invests primarily in the securities of medium and smaller sized companies,
although the Alliance Common Stock and Alliance Balanced Funds may also make
these investments. The securities of small and medium sized, less mature, lesser
known companies involve greater risks than those normally associated with
larger, more mature, well-known companies. Therefore, consistent earnings may
not be as likely in small companies as in large companies.
The Funds also run a risk of increased and more rapid fluctuations in the value
of its investments in securities of small or medium sized companies. This is due
to the greater business risks of small size and limited product lines, markets,
distribution channels, and financial and managerial resources. Historically, the
price of small and medium capitalization stocks (those with capitalizations of
between $100 million to $5 billion) and stocks of recently organized companies
have fluctuated more than the larger capitalization stocks and the overall stock
market. One reason is that small- and medium-sized companies have less certain
prospects for growth, a lower degree of liquidity in the markets for their
stocks, and greater sensitivity to changing economic conditions.
NON-EQUITY SECURITIES. Investing in non-equity securities, such as bonds and
debentures, involves the risk that the value of these securities held by the
Alliance Bond and Alliance Common Stock Funds - and, therefore, the value of
each of the Fund's units - will fluctuate with changes in interest rates
(interest rate risk) and the perceived ability of the issuer to make interest or
principal payments on time (credit risk). A decline in prevailing interest rates
generally will increase the value of the securities held by the Alliance Bond
Fund, while an increase in prevailing interest rates usually reduces the value
of the Alliance Bond Fund's holdings. As a result, interest rate fluctuations
will affect the value of Alliance Bond Fund units, but will not affect the
<PAGE>
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income received from the Fund's current portfolio holdings. Moreover,
convertible securities, such as convertible preferred stocks or convertible debt
instruments, contain both debt and equity features, and may lose significant
value in periods of extreme market volatility.
FOREIGN INVESTING. Investing in securities of foreign companies that may not do
substantial business in the United States involves additional risks, including
risk of loss from changes in the political or economic climate of the countries
in which these companies do business. Foreign currency fluctuations, exchange
controls or financial instability could cause the value of the Alliance Common
Stock and Balanced Fund's foreign investments to fluctuate. Additionally,
foreign accounting, auditing and disclosure standards may differ from domestic
standards, and there may be less regulation in foreign countries of stock
exchanges, brokers, banks, and listed companies than in the United States. As a
result, the Fund's foreign investments may be less liquid and their prices may
be subject to greater fluctuations than comparable investments in securities of
U.S. issuers.
RESTRICTED SECURITIES. Investing in restricted securities involves additional
risks because these securities generally (1) are less liquid than non-restricted
securities and (2) lack readily available market quotations. Accordingly, the
Alliance Common Stock Fund may be unable to quickly sell its restricted security
holdings at fair market value.
The following discussion describes investment risks unique to either the
Alliance Common Stock Fund, Alliance Aggressive Stock Fund or the Alliance
Balanced Fund.
INVESTMENT CONCENTRATION. Concentrating the Alliance Common Stock Fund's equity
holdings in the stocks of a few companies increases the risk of loss, because a
decline in the value of one of these stocks would have a greater impact on the
Fund. As of December 31, 1999, the Fund held 29.7% of its net assets in the
stocks of four issuers. See Separate Account No. 4 (Pooled) Statement of
Investments and Net Assets in the SAI.
AGGRESSIVE INVESTMENT POLICIES. Due to the Alliance Aggressive Stock Fund's
aggressive investment policies and less diversified investments, this Fund
provides greater growth potential and greater risk than the Alliance Common
Stock and Alliance Balanced Funds. As a result, you should consider limiting the
amount allocated to this Fund, particularly as you near retirement.
ASSET ALLOCATION POLICIES. The Alliance Balanced Fund varies the portion of it's
assets invested in equity and non-equity securities with our evaluation of
various factors. The Fund is subject to the risk that we may incorrectly predict
changes in the relative values of the stock and bond markets.
DEBT INSTRUMENTS ISSUED BY SCHEDULE B BANKS. The Alliance Balanced Fund may
invest in debt instruments issued by Schedule B Banks, which are foreign
branches of United States banks. Schedule B Banks are not required to maintain
the same financial reserves which are required of United States banks, but
Schedule B Bank certificates of deposit are fully guaranteed by the U.S. parent
of the issuing bank. Debt instruments issued by Schedule B Banks may include
certificates of deposit and time deposits of London branches of United States
banks ("Eurodollars"). Eurodollar investments are subject to the types of risks
associated with foreign securities. London branches of the United States banks
have extensive government regulation which may limit both the amount and the
type of loans and interest rates. In addition, the banking industry's
profitability is closely linked to prevailing money market conditions for
financing lending operations. Both general economic conditions and credit risks
play an important part in the operations of the banking industry. United States
banks are required to maintain reserves, are limited in how much they can loan
to a single borrower, and are subject to other regulations to promote financial
soundness. Not all of these laws and regulations apply to foreign branches of
United States banks.
<PAGE>
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CHANGE OF INVESTMENT OBJECTIVES
We can change the investment objectives of the Alliance Bond, Alliance Common
Stock, Alliance Aggressive Stock and Alliance Balanced Funds if the New York
State Insurance Department approves the change.
The investment objectives of the portfolios of EQ Advisors Trust may be changed
by the Board of Trustees of EQ Advisors Trust without the approval of
shareholders. See "Voting rights" under "More information."
GUARANTEED INTEREST ACCOUNT
The guaranteed interest account is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information."
The amount allocated to the guaranteed interest account earns interest at the
current guaranteed interest rate which is an annual effective rate. After we
credit the interest, we deduct certain charges and fees.
We credit interest through and allocate interest on the date of any transfer or
withdrawal transaction. We credit interest each day of the month on the amount
maintained for the employer plan at the beginning of the day at a daily rate
equivalent to the guaranteed interest rate that applies to the employer plan.
CURRENT AND MINIMUM INTEREST RATES
Except as described below, the "current rate" is the rate of interest that we
actually credit to amounts in the guaranteed interest account for any given
calendar year. We declare current rates for each class of employer plan before
the beginning of each calendar year. In addition to the current rate, we declare
"minimum rates" for the next two calendar years. The minimum interest rates will
never be lower than 4%. In general, we expect to declare current rates, in any
year, greater than the previously declared minimum rates for that year. If the
employer plan is permitted to invest in the Alliance Bond Fund, we may at times
have the right to declare a lower current rate of interest ("revised rate")
which will remain in effect for the remainder of the calendar year only for new
amounts contributed or transferred by the employer plan to the guaranteed
interest account. See "Special rules applicable to the Alliance Bond Fund" for
the circumstances under which a revised rate might be declared. Such revised
rate will reflect market interest rates for money market instruments and other
short-term investments existing at the time any such amount is contributed or
transferred to the guaranteed interest account without regard to any previously
declared minimum rate.
The current interest rate for 2000 and the 2001 and 2002 minimum interest
guaranteed for each class, are stated in the proposal documents submitted to
sponsors of prospective RIA employer plans. The establishment of new classes
will not decrease the rates that apply to employer plans already assigned to a
previous class. The effective current rate for 2001 and the minimum rates
effective for calendar years 2002 and 2003 will be declared in December 2000.
CLASSES OF EMPLOYER PLANS
We assign an employer plan to a "class" of employer plans upon its participation
in the Master Retirement Trust in order to help us determine the current and
minimum guaranteed rates of interest that apply for the employer plan
participating in our guaranteed interest account. The initial class of employer
plans to which an employer plan is assigned will depend on the date the plan is
adopted.
REVISED INTEREST RATES
All of the following conditions must exist for us to declare a revised rate:
o on the date of the allocation, the aggregate amount held in the Alliance
Bond Fund with respect to all employer plans comprising Equitable Life's
Small Pension book of business is at least 10% of the aggregate amount then
held under all the contracts which fund those plans;
o on the date of the allocation, the "current" guaranteed interest rate with
respect to the employer plan's
<PAGE>
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guaranteed interest account that would otherwise apply, exceeds the benchmark
treasury rate by at least 0.75%; and
o prior allocations to the guaranteed interest account for the employer plan
during that calendar year equal or exceed 110% of the average annual
allocations to the guaranteed interest account for the employer plan during
the three immediately preceding calendar years.
If we declare a revised rate for plans permitted to invest in the Alliance Bond
Fund the employer or plan trustee may, by written notice, withdraw all or part
of the amount that would be credited with such lower revised rate, without
deduction of the contingent withdrawal charge. The investment, for the remainder
of the calendar year, of such withdrawn or returned amounts in a funding vehicle
other than RIA shall not be considered a violation of an employer plan's
exclusive funding obligation provided such amount is contributed to RIA at the
beginning of the following calendar year.
<PAGE>
2 How we value your plan balances
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FOR THE FUNDS. When you invest in a Fund, your contribution or transfer
purchases "units" of that Fund. The unit value on any day reflects the value of
the Fund's investments for the day and the charges and expenses we deduct from
the Fund. We calculate the number of units you purchase by dividing the amount
you invest by the unit value of the Fund as of the close of business on the day
we receive your contribution or transfer instruction.
- --------------------------------------------------------------------------------
A business day is any day on which Equitable Life is open and the New York Stock
Exchange is open for trading. We are closed on national business holidays,
Martin Luther King, Jr. Day and the Friday after Thanksgiving. We may also
choose to close on the day immediately preceding or following a national
business holiday or due to emergency conditions. Our business day ends at 4:00
p.m. Eastern time.
- --------------------------------------------------------------------------------
On any given day, your account value in any Fund equals the number of the Fund's
units credited to your account, adjusted for any Fund's units cancelled from
your account, multiplied by that day's value for one Fund unit. In order to take
deductions from any Fund, we cancel units having a value equal to the amount we
need to deduct. Otherwise, the number of your Fund units of any Fund does not
change unless you make additional contributions, make a withdrawal, make a
transfer, or request some other transaction that involves moving assets into or
out of that Fund.
For a description of how Fund unit values are computed, see "How we determine
the unit value" in the SAI.
FOR THE GUARANTEED INTEREST ACCOUNT. The value of an employer plan's investment
in the guaranteed interest account is, at any time, the total contributions
allocated to the guaranteed interest account, plus the interest earned, less (i)
employer plan benefit payments, (ii) other employer plan withdrawals (including
loans) and (iii) charges and fees provided for under the contracts.
<PAGE>
3 Transfers
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TRANSFERS AMONG INVESTMENT OPTIONS
You may transfer accumulated amounts among the investment options at any time
and in any amount, subject to the transfer limitations described below. In
addition to our rules, transfers among the investment options may be subject to
employer plan provisions which may limit or disallow such movements. We do not
impose a charge for transfers among the investment options.
The following section describes transfer limitations that apply, under certain
situations, to amounts transferred out of the guaranteed interest account during
the calendar quarter in which the request is made and the three preceding
calendar quarters ("transfer period").
PARTICIPANT-DIRECTED PLANS. If the employer elects to fund the employer plan
with the guaranteed interest account and the Alliance Money Market, Alliance
Bond, Alliance Intermediate Government Securities, Alliance Quality Bond,
Alliance High Yield or Alliance Conservative Investors Funds, during any
transfer period, the following limitations apply:
For plans electing the PRS, the maximum amount that may be transferred by a
participant from the guaranteed interest account is equal to the greater of: (i)
25% of the amount the participant had in the guaranteed interest account as of
the last calendar day of the prior calendar year, and (ii) the total of all
amounts the participant transferred out of the guaranteed interest account
during the prior calendar year. Generally, this means that new participants will
not be able to transfer amounts out of the guaranteed interest account during
the first calendar year of their participation under the contract.
If assets have been transferred from another funding vehicle by the employer,
then the participant, for the remainder of that calendar year, may transfer to
the Funds up to 25% of such transferred amount that the participant initially
allocated to the guaranteed interest account.
For plans not electing the PRS, the maximum amount that may be transferred from
the guaranteed interest account is equal to the greater of: (i) 25% of the
amount the employer plan had in the guaranteed interest account as of the last
calendar day of the prior calendar year, or (ii) the total of all amounts the
employer plan transferred out of the guaranteed interest account during the
prior calendar year. The employer plan is responsible for monitoring this
transfer limitation. PRS is discussed in "Optional participant recordkeeping
services" later in this prospectus.
If assets have been transferred from another funding vehicle by the employer,
then the trustee on behalf of the participant, for the remainder of that
calendar year, may transfer to the Funds up to 25% of such transferred amount
that was initially allocated to the guaranteed interest account.
TRUSTEE-DIRECTED PLANS. Transfers of accumulated amounts among the investment
options will be permitted as determined by us in our sole discretion only.
If assets have been transferred from another funding vehicle by the employer,
then the plan trustee, for the remainder of that calendar year, may transfer to
an investment option up to 25% of such transferred amount that was initially
allocated to the guaranteed interest account.
SPECIAL RULES APPLICABLE TO THE ALLIANCE BOND FUND
The Alliance Bond Fund is available only to participant-directed employer plans
that signed an agreement to participate in that Fund prior to June 1, 1994 ("old
employer plans"). If the employer has not made any of the Funds of Separate
Account No. 51 available under a participant-directed employer plan, special
transfer rules which provide transfer restrictions, described below will apply.
If an old employer plan adds any of the Funds of Separate Account No. 51, the
Alliance Bond Fund will no longer be subject to any transfer restrictions.
However, transfers out the guaranteed interest account will be subject to
certain restrictions described above.
TRANSFERS TO THE ALLIANCE BOND FUND. Except as described below, a plan
participant in an old employer plan may elect to transfer to the Alliance Bond
Fund any amount
<PAGE>
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26
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(in whole percentages) arising from participant-directed contributions. We will
process requests to transfer amounts to the Alliance Bond Fund only if, at the
time of the transfer request, the current guaranteed interest rate for the
plan's guaranteed interest account is higher than the then-current "benchmark
treasury rate." The benchmark treasury rate, as determined in accordance with
our procedures, can be obtained via a daily tape recording by calling the RIA
service office at 1-800-967-4560.
If we will not process a transfer request, we will notify the employer within
four business days. We will not redirect the transfer to another investment
option and will not maintain any record of such request for future processing.
TRANSFERS FROM THE ALLIANCE BOND FUND. A plan participant in an old employer
plan may elect to transfer any amount (in whole percentages) held in the
Alliance Bond Fund to one or more investment options.
MARKET TIMING. You should note that the product is not designed for professional
"market timing" organizations, or other organizations or individuals engaging in
market timing, making programmed transfers, frequent transfers or transfers that
are large in relation to the total assets of the underlying mutual fund
portfolio. Market timing strategies are disruptive to the underlying mutual fund
portfolios in which the variable investment options invest. If we determine that
your transfer patterns among the variable investment options reflect a market
timing strategy, we reserve the right to take action including, but not limited
to, restricting the availability of transfers through facsimile transmissions
and refusing to act on transfer instructions of an agent acting under a power of
attorney who is acting on behalf of more than one owner.
<PAGE>
4 Access to your plan balances
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PARTICIPANT LOANS
Participant loans are available under RIA, if the employer plan permits them.
Participants must apply for a plan loan through the employer plan. The plan
administrator is responsible for administering the loan program. Loans are
subject to restrictions under federal tax rules and ERISA. See "Tax
information."
Below we briefly summarize some of the important terms of the loan provisions
under RIA. A more detailed discussion is provided in the SAI under "Loan
provisions."
Generally, all loan amounts must be taken from the guaranteed interest account.
The participant must pay the interest as required by federal income tax rules.
All repayments are made back into the guaranteed interest account. If the
participant fails to repay the loan when due, the amount of the unpaid balance
may be subject to a contingent withdrawal charge, taxes, and additional penalty
taxes. Interest paid on a retirement plan loan is not deductible.
The minimum amount of a loan for a participant is $1,000, and the maximum amount
is 90% of the plan participant's balances in all the investment options. An
employer plan may impose additional conditions or restrictions on loan
transactions. We also charge a loan fee in an amount equal to 1% of the loan
principal amount on the date a loan is made.
CHOOSING BENEFIT PAYMENT OPTIONS
RIA offers a variety of benefit payment options, subject to the provisions of an
employer's plan. Plan participants should consult their employer for details. An
employer's plan may allow a choice of one or more of the following forms of
distribution:
o purchase of one of our annuities;
o lump sum distribution;
o use of part of the proceeds to purchase one of our annuities with the
balance to be paid as a lump sum; or
o permitted cash withdrawals.
Subject to the provisions of your plan, RIA makes available the following forms
of fixed annuities:
o life annuity;
o life annuity - period certain;
o life annuity - refund certain;
o period certain annuity; and
o qualified joint and survivor life annuity.
All of the forms outlined above (with the exception of the qualified joint and
survivor life annuity) are available as either single or joint life annuities.
We also offer other annuity forms not outlined here.
The various fixed annuities we offer under RIA are described in greater detail
in the SAI under "Annuity benefits." As a general matter, the minimum amount
that can be used to purchase any type of annuity, net of all applicable charges
and fees, is $3,500. An annuity administrative fee of $175 will be deducted
from the amount used to purchase an annuity.
We require that the amount of any benefit distribution from an employer plan
that uses RIA as a partial investment funding vehicle be in proportion to the
amount of plan assets held in RIA, unless we and the plan trustees specifically
agree in writing to some other method.
Requests for cash distributions must be made to us on an aggregate as opposed
to a participant-by-participant basis, except for employer plans using the PRS
discussed in "Optional participant recordkeeping service" later in this
prospectus. Cash withdrawals by a plan participant prior to retirement may give
rise to contingent withdrawal charges, and tax penalties or other adverse tax
consequences. See "Tax information."
We make distribution checks payable to the trustees of the plan. The plan
trustees are responsible for distribution of Funds to the participant or other
payee and for any applicable federal and state income tax withholding and
reporting. See "Tax information."
RIA does not have separate disability or death benefit provisions. All
disability and death benefits are provided in accordance with the employer
plan.
<PAGE>
5 RIA
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This section explains RIA in further detail. It is intended for employers who
wish to use RIA, but contains information of interest to plan participants as
well. Plan participants should, of course, understand the provisions of their
plan that describes their rights in more specific terms.
RIA is an investment program designed for employer plans that qualify for
tax-favored treatment under Section 401(a) of the Code. Eligible employer plans
include defined benefit plans, defined contribution plans or profit-sharing
plans, including 401(k) plans. These employer plans generally must also meet the
requirements of ERISA.
RIA consists of two group annuity contracts ("contracts") issued by Equitable
Life, a Master Retirement Trust agreement, a participation or installation
agreement, and an optional participant recordkeeping services ("PRS") agreement.
RIA had $1 billion in assets at December 31, 1999.
Our service consultants are available to answer your questions about RIA. Please
contact us by using the telephone number or addresses listed under "How to reach
us - Information on joining RIA" in the back of this prospectus.
SUMMARY OF PLAN CHOICES OF RIA
You can choose RIA:
o as the exclusive funding vehicle for the assets of an employer plan. If you
choose this option, the annual amount of plan contributions must be at least
$10,000. We call this type of plan an "exclusive funding employer plan"; or
o as a partial investment funding vehicle for an employer plan. If you choose
this option, the aggregate amount of contributions in the initial
participation year must be at least $50,000, and the annual aggregate amount
of contributions thereafter must be at least $25,000. We determine at our
sole discretion if this option will be available to you. We call this type
of plan a "partial funding employer plan." We do not offer the guaranteed
interest account with a partial funding employer plan. You must enter into a
partial funding agreement with us to use this partial funding employer plan.
An exclusive funding employer plan may not change its participation basis to
that of a partial funding employer plan, or vice versa, unless the underwriting
and other requirements referred to above are satisfied and approved by us.
We reserve:
o the right to change these amounts in the future for new sales only; and
o the right to impose higher annual minimums for certain plans.
We will give you advance notice of any such changes.
You also have the choice of using RIA with two types of plans. You may use RIA
for:
o participant-directed employer plans, which permit participants to allocate
contributions and transfer account accumulations among the investment
options; or
o trustee-directed employer plans, which permit these types of investment
decisions to be made only by the employer, a trustee or any named fiduciary
or an authorized delegate of the plan.
At our sole discretion, a trustee-directed plan may change its participation
basis to a participant-directed plan.
MAKING THE RIGHT CHOICES FOR YOUR PLAN DEPENDS ON YOUR OWN SET OF CIRCUMSTANCES.
WE RECOMMEND THAT YOU REVIEW ALL CONTRACTS, TRUST, PARTICIPATION AND RELATED
AGREEMENTS WITH YOUR LEGAL AND TAX COUNSEL.
GETTING STARTED
To enroll in RIA, a partnership, sole proprietor or corporation must adopt the
Master Retirement Trust as part of its employer plan. You also must execute the
participation or installation agreement, and provide us with certain plan
<PAGE>
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information. We will not accept contributions until we accept the enrollment of
the employer plan.
HOW TO MAKE CONTRIBUTIONS
REGULAR CONTRIBUTIONS. Contributions may be made by check or by wire transfer.
All contributions under an employer plan should be sent to the address under
"For contributions checks only" in "Information once you join RIA" in the back
of this prospectus. All contributions made by check must be drawn on a U.S.
bank, in U.S. dollars, and made payable to Equitable Life. Third-party checks
are not acceptable, except for rollover contributions, tax-free exchanges or
trustee checks that involve no refund. All checks are subject to our ability to
collect the funds. We reserve the right to reject a payment if it is received in
an unacceptable form.
Contributions are normally credited on the business day that we receive them.
Contributions are only accepted from the employer or plan trustee.
There is no minimum amount for each contribution where employer plan
contributions are made on a basis more frequent than annually. The total amount
of contributions under an employer plan is limited by law. See "Tax
information."
ROLLOVER OR TRANSFERS FROM ANOTHER PLAN. You can change the funding of an
existing plan to use RIA. Before making a change, however, you should carefully
consider the following:
o the comparative costs and benefits under existing funding arrangements and
under RIA; and
o the amendments or changes that may have to be made in the plan if funds are
transferred.
To make a rollover or transfer to RIA, funds must be in cash. Therefore, any
assets accumulated under an existing plan will have to be liquidated for cash.
SELECTING INVESTMENT OPTIONS
You can select from the investment options available under the contracts. The
maximum number of active options you may select at any time is 25. Plan
participant choices will be limited to the investment options selected. If the
Plan is intended to comply with the requirements of ERISA Section 404(c), the
employer or the plan trustee is responsible for making sure that the investment
options chosen constitute a broad range of investment choices as required by the
Department of Labor ("DOL") Section 404(c) regulations.
Generally, for participant-directed plans, if you intend for your plan to comply
with ERISA Section 404(c), you should, among other things:
o select the Alliance Money Market Fund if you select any of the Alliance
Intermediate Government Securities, Alliance Quality Bond, Alliance High
Yield or Alliance Conservative Investors Funds; or
o select the guaranteed interest account if you do not select any of the
Alliance Money Market, Alliance Intermediate Government Securities, Alliance
Quality Bond, Alliance High Yield, Alliance Small Cap Growth or Alliance
Conservative Investors Funds.
If you select any of the Alliance Money Market, Alliance Bond, Alliance
Intermediate Government Securities, Alliance Quality Bond, Alliance High Yield
or Alliance Conservative Investors Funds and the guaranteed interest account,
certain restrictions will apply to transfers out of the guaranteed interest
account. The Alliance Bond Fund is available only to employer plans that signed
an Agreement to participate in that Fund prior to June 1, 1994, and, as
described below, special transfer rules apply for these employer plans. If you
add any of the Funds of Separate Account Nos. 51 or 66, the Alliance Bond Fund
will no longer be subject to any transfer restrictions. However, transfers out
of the guaranteed interest account will be subject to certain restrictions.
<PAGE>
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ALLOCATING PROGRAM CONTRIBUTIONS
We allocate contributions to the investment options in accordance with the
allocation instructions provided to us by the plan trustee or the individual who
the plan trustee has previously authorized in writing. Allocations may be made
by dollar amounts or in any whole number percentages that total 100%.
Allocation changes may be made without charge, but may be subject to employer
plan provisions that may limit or disallow such movements.
<PAGE>
6 Distributions
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Keep in mind two sets of rules when considering distributions or withdrawals
from RIA. The first are rules and procedures that apply to the investment
options, exclusive of the provisions of your plan. We discuss those in this
section. The second are rules specific to your plan, which are not described
here.
Moreover, distribution and benefit payment options under a tax qualified
retirement plan are subject to complicated legal requirements. A general
explanation of the federal income tax treatment of distributions and benefit
payment options is provided in "Tax information" in this prospectus and the SAI.
You should discuss your options with a qualified financial advisor. Our service
consultants also can be of assistance. Certain plan distributions may be subject
to a contingent withdrawal charge, federal income tax, and penalty taxes. See
"Charges and expenses" and "Tax information."
AMOUNTS IN THE FUNDS. These are generally available for distribution at any
time, subject to the provisions of your plan. Distributions from the Alliance
Bond, Alliance Common Stock, Alliance Aggressive Stock and Alliance Balanced
Funds are permitted at any time. Distributions from remaining Funds are
permitted at any time except if there is any delay in redemptions from the
corresponding portfolio of EQ Advisors Trust, as applicable. See "When we pay
proceeds."
AMOUNTS IN THE GUARANTEED INTEREST ACCOUNT. These are generally available for
distribution at any time, subject to the provisions of your plan. A deferred
payout provision, however, applies to trustee-directed employer plans which are
terminating their RIA Contract. Under that provision, we can defer payment of
the employer plan balance held in the guaranteed interest account, less the
contingent withdrawal charge, by paying out the balance in six installments over
five years. During the deferred payout period, we credit the balances upon which
we defer payment with the current interest rate declared for each year. We also
continue to deduct the ongoing operations fee monthly from the balance during
the deferred payout period.
When we impose the deferred payout provision, any trustee-directed employer plan
benefits becoming due during the deferred payout period will not be paid from
the employer plan balance in the guaranteed interest account. If, however,
sufficient funds are available, the benefits would be paid from the new funding
vehicle for the trustee-directed employer plan.
Participant-directed employer plans are not subject to the deferred payout
provision.
<PAGE>
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ILLUSTRATION OF DEFERRED PAYOUT PROVISION
<TABLE>
<CAPTION>
Transaction Date End of Year 1 End of Year 2
- ---------------------------------------------------------------------------------------
<S> <C> <C>
guaranteed interest account
Plan Assets
- - Withdrawal Charge
- ---------------------
Distribution Amount 1
Dist. Amt. 1 = 1st Payment
- --------------
6
Dist. Amount 1
- - 1st Payment
- -------------
Balance 1 --> Balance 1
+ Interest
- Operations Fee
--------------------
Distribution Amount 2
Dist. Amt. 2 = 2nd Payment
--------------
5
Dist. Amount 2
- 2nd Payment
-------------
Balance --> Balance 2
+ Interest
- Operations Fee
---------------------
Distribution Amount 3
Dist. Amt. 3 = 3rd Payment
--------------
4
Dist. Amount 3
- 3rd Payment
-------------
Balance -->
</TABLE>
<TABLE>
<CAPTION>
End of Year 3 End of Year 4 End of Year 5
- -------------------------------------------------------------------------
<S> <C> <C>
Balance 3
+ Interest
- Operations Fee
----------------------------
Distribution Amount 4
Dist. Amt. 4 = 4th Payment
--------------
3
Dist. Amount 4
- 4th Payment
-------------
Balance --> Balance 4
+ Interest
- Operations Fee
----------------------------
Distribution Amount 5
Dist. Amt. 5 = 5th Payment
--------------
2
Dist. Amount 5
- 5th Payment
-------------
Balance --> Balance 5
+ Interest
- Operations Fee
------------------
Final Distribution
</TABLE>
<PAGE>
7 Optional participant recordkeeping services
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SERVICES PROVIDED. If you elect the optional participant recordkeeping services
(PRS) program, we:
o establish an individual participant account for each participant covered by
your plan based on data you provide;
o receive and deposit contributions on behalf of participants to individual
participant accounts;
o maintain records reflecting, for each participant, contributions, transfers,
loan transactions, withdrawals and investment experience and interest
accrued, as applicable, on an individual participant's proportionate values
in the plan;
o provide to you individual participants' reports reflecting the activity in
the individual participant's proportionate interest in the plan; and
o process transfers and distributions of the participant's portion of his or
her share of the employer plan assets among the investment options as you
instruct.
You are responsible for providing Equitable Life with required information and
for complying with our procedures relating to the PRS program. We will not be
liable for errors in recordkeeping if the information you provide is not
provided on a timely basis or is incorrect. The plan administrator retains full
responsibility for the income tax withholding and reporting requirements
including required notices to the plan participants, as set forth in the
federal income tax rules and applicable Treasury Regulations.
INVESTMENT OPTIONS. You must include the guaranteed interest account in the
investment options if you select PRS.
FEES. We charge an annual fee of $25 per active participant paid in twelve
equal monthly installments of $2.08. We deduct the fee from the individual
participant's account at the end of each month by means of a reduction of units
or a cash withdrawal from the guaranteed interest account. We retain the right
to change the fee upon 30 days notice to the employer. See "Charges and
expenses."
ENROLLMENT. You may enroll for PRS at the time your plan is established with us
under RIA, or at any time thereafter. Enrollment is subject to our approval, at
our sole discretion. We have summarized the main features of PRS here, and
participation in this aspect of the RIA program is subject to the terms set
forth in the participation agreement (including any separate supplementary
agreement) entered into between you and us.
<PAGE>
8 Rates of return
- ------
34
- --------------------------------------------------------------------------------
In order to show how the performance of the Funds may affect employer balances,
the following tables provide a historical view of investment performance. The
information presented includes performance results for each Fund including, for
the Funds of Separate Account Nos. 51 and 66, performance results since
inception of the corresponding portfolios, along with the appropriate
benchmarks. These performance results are based on the change in the unit value
for the periods shown. Note that year-to-date figures are not annualized.
Performance data for the Alliance Bond, Alliance Balanced, Alliance Common
Stock and Alliance Aggressive Stock Funds reflect (i) the investment results of
the Fund since inception and (ii) the investment management and financial
accounting fee. We have recalculated performance prior to June 1, 1994 to
reflect the deduction of this fee even though it did not apply as an
asset-based charge.
Performance data for the Funds of Separate Account Nos. 51 and 66 reflect (i)
the investment results of the corresponding portfolios of EQ Advisors Trust
respectively, from the date of inception of those portfolios, (ii) the actual
investment advisory fee and direct operating expenses of the relevant portfolio
and (iii) for Separate Account No. 51, the separate account administrative
charge (although this latter charge was not an asset-based charge before the
portfolios were available under RIA).
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios in which the Funds of Separate Account
No. 51 invest, 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.
None of the data reflects the ongoing operations fee or the loan fee, annuity
administrative fee or charge for premium taxes, which may not be applicable to
any particular participant. Because rates of return do not reflect the ongoing
operations fee or other charges and fees applicable to employer plans under
RIA, the rate of return for an employer plan would be lower if such charges and
fees were reflected.
For amounts allocated or transferred to a Fund, investment return and principal
will fluctuate and unit values may be worth more or less than the original cost
when redeemed.
Market indices are not subject to any charges for investment advisory fees
typically associated with a managed portfolio. Comparisons with these
benchmarks, therefore, are of limited use. We include them because they are
widely known and may help you to understand the universe of securities from
which each Fund is likely to select its holdings.
COMPARATIVE BENCHMARKS
ALLIANCE AGGRESSIVE STOCK: 50% Russell 2000 Small Stock Index and 50% Standard &
Poor's Mid-Cap Total Return.
ALLIANCE BALANCED: 50% Standard & Poor's 500 and 50% Lehman Government/Corporate
Bond Index.
ALLIANCE BOND: Lehman Intermediate Government/ Corporate Bond Index.
ALLIANCE COMMON STOCK: Standard & Poor's 500 Index.
ALLIANCE CONSERVATIVE INVESTORS: 70% Lehman Treasury Bond Composite Index and
30% Standard & Poor's 500.
ALLIANCE EQUITY INDEX: Standard & Poor's 500.
ALLIANCE GLOBAL: Morgan Stanley Capital International World Index.
ALLIANCE GROWTH AND INCOME: 75% Standard & Poor's 500 Index, and 25% Value Line
Convertibles Index.
ALLIANCE GROWTH INVESTORS: 30% Lehman Government/Corporate Bond Index and 70%
Standard & Poor's 500.
ALLIANCE HIGH YIELD: Benchmark #1 - Merrill Lynch High Yield Master Index and
Benchmark #2 - Credit Suisse First Boston Global High Yield Index.
<PAGE>
- ----------
35
- --------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES: Lehman Intermediate Government Bond
Index.
ALLIANCE INTERNATIONAL: Morgan Stanley Capital International Europe, Australia,
Far East Index.
ALLIANCE MONEY MARKET: Salomon Brothers Three-Month T-Bill Index.
EQ/ALLIANCE PREMIER GROWTH: Standard & Poor's 500 Index.
ALLIANCE QUALITY BOND: Lehman Aggregate Bond Index.
ALLIANCE SMALL CAP GROWTH: Russell 2000 Growth.
EQ/ALLIANCE TECHNOLOGY: NASDAQ Composite.
CALVERT SOCIALLY RESPONSIBLE: Standard & Poor's 500 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.
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 500/24% Morgan Stanley Capital
International Europe, Australia, Far East/21% Salomon Brothers U.S. Treasury
Bond 1 Year+/14% Salomon Brothers World Government Bond Ex U.S./5% 3-Month
T-Bill.
MORGAN STANLEY EMERGING MARKETS EQUITY: Morgan Stanley Capital International
Emerging Markets Free Price Return Index.
EQ/PUTNAM BALANCED: 60% Standard & Poor's 500 Index and 40% Lehman
Government/Corporate Bond Index
EQ/PUTNAM GROWTH & INCOME VALUE: Standard & Poor's 500 Index.
EQ/PUTNAM INTERNATIONAL EQUITY: Morgan Stanley Capital International Europe,
Australia, Far East Index.
EQ/PUTNAM INVESTORS GROWTH: Standard & Poor's 500 Index.
T. ROWE PRICE EQUITY INCOME: Standard & Poor's 500 Index.
T. ROWE PRICE INTERNATIONAL STOCK: Morgan Stanley Capital International Europe,
Australia, Far East Index.
WARBURG PINCUS SMALL COMPANY VALUE: Benchmark #1 - Russell 2000 Index and
Benchmark #2 - Russell 2000 Value Index.
LIPPER SURVEY. The Lipper Variable Insurance Products Performance Analysis
Survey (Lipper Survey) records the performance of a large group of variable
annuity products, including managed separate accounts of insurance companies.
According to Lipper Analytical Services, Inc. (Lipper), the data are presented
net of investment management fees, direct operating expenses and asset-based
charges applicable under annuity contracts. Lipper data provide a more accurate
picture than market benchmarks of RIA performance for the Funds of Separate
Account No. 51 relative to other variable annuity products.
LIPPER. The Lipper Mutual Funds Survey (Lipper) records the performance of over
7,000 mutual funds. According to Lipper Analytical Services, Inc., the data are
presented net of investment management fees, direct operating expenses,
<PAGE>
- ------
36
- --------------------------------------------------------------------------------
and, for funds with Rule 12b-1 plans, asset-based sales charges. Lipper data
provide a more accurate picture of RIA performance for the Funds of Separate
Account No. 66 relative to that of other mutual funds underlying retirement plan
products than the market indices.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends. Cumulative rates of return
reflect performance over a stated period of time. Annualized rates of return
represent the annual rate of growth that would have produced the same cumulative
return, if performance had been constant over the entire period.
The performance of the Funds does not represent the actual experience of a
particular participating employer plan; the amount and timing of contributions
affects individual performance, as do Fund expenses. For a discussion of charges
and fees and how they are deducted from a RIA plan, see "Charges and expenses."
PAST PERFORMANCE IS NOT A GUARANTEE OR INDICATION OF FUTURE RESULTS. NO
PROVISIONS HAVE BEEN MADE FOR THE EFFECT OF TAXES ON INCOME AND GAINS OR UPON
DISTRIBUTION.
<PAGE>
- ------
37
- --------------------------------------------------------------------------------
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE AGGRESSIVE STOCK
(SEPARATE ACCOUNT NO. 3) 17.41% 4.48% 12.90% 14.87% 14.55% 10.44%
- -------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Growth Funds Avg. 72.56% 30.78% 27.19% 18.33% 16.34% 11.76%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 18.09% 17.48% 19.92% 15.41% N/A N/A
- -------------------------------------------------------------------------------------------------------------------
ALLIANCE BALANCED (SEPARATE
ACCOUNT NO. 10) 15.25% 15.99% 15.91% 11.39% 13.99% 14.22%
- -------------------------------------------------------------------------------------------------------------------
Lipper Balanced Funds Avg. 8.73% 13.78% 16.24% 11.82% 13.37% 13.25%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 9.07% 16.47% 17.93% 13.04% 14.14% 13.86%
- -------------------------------------------------------------------------------------------------------------------
ALLIANCE BOND (SEPARATE
ACCOUNT NO. 13) (0.37)% 5.01% 6.56% 6.76% - 9.50%
- -------------------------------------------------------------------------------------------------------------------
Lipper Gen. U.S. Gov't (3.01)% 4.52% 6.51% 6.63% - 9.77%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 0.39% 5.50% 7.10% 7.26% - 9.89%
- -------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK
(SEPARATE ACCOUNT NO. 4) 35.10% 18.61% 20.97% 15.30% 17.16% 13.70%
- -------------------------------------------------------------------------------------------------------------------
Lipper Large Cap Growth Avg. 22.31% 24.78% 25.53% 16.66% 16.14% 13.13%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 21.04% 27.56% 28.56% 18.21% 17.88% 13.31%
- -------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE
INVESTORS 10.14% 12.41% 12.47% 9.94% - 10.01%
- -------------------------------------------------------------------------------------------------------------------
Lipper Flexible Income 4.42% 11.65% 13.70% 10.10% - 10.15%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 4.19% 12.07% 13.60% 10.75% - 10.68%
- -------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX 20.38% 26.91% 27.84% - - 23.63%
- -------------------------------------------------------------------------------------------------------------------
S&P 500 Index 19.36% 25.86% 26.81% - - 23.89%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 27.56% 28.56% - - 24.14%
- -------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 38.53% 23.51% 20.74% 15.84% - 14.46%
- -------------------------------------------------------------------------------------------------------------------
Lipper Global 44.62% 23.92% 20.57% 11.65% - 11.06%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 24.93% 21.61% 19.76% 11.42% - 10.74%
- -------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND INCOME 18.66% 22.09% 22.08% - - 17.15%
- -------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% 17.23% 20.50% - - 16.45%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 20.71% 23.10% 25.01% - - 18.77%
- -------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS 26.58% 20.79% 20.19% 17.08% - 17.08%
- -------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 10.45% 14.19% 15.15% 11.65% - 11.68%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 13.77% 20.90% 22.15% 15.13% - 15.15%
- -------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (3.35)% 2.79% 9.86% 10.23% - 9.36%
- -------------------------------------------------------------------------------------------------------------------
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 INTERMEDIATE
GOVERNMENT SECURITIES 0.02% 4.96% 6.34% - - 6.26%
- -------------------------------------------------------------------------------------------------------------------
Lipper U.S. Government (2.60)% 4.04% 5.81% - - 5.89%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 0.49% 5.50% 6.93% - - 6.76%
- -------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERNATIONAL 37.31% 13.76% - - - 13.16%
- -------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% 18.74% - - - 16.13%
- -------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% 15.74% - - - 13.11%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ------
38
- --------------------------------------------------------------------------------
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE MONEY MARKET 4.96% 5.24% 5.36% 5.16% - 6.95%
- ------------------------------------------------------------------------------------------------------------------
Lipper Money Market 3.78% 4.05% 4.16% 3.96% - 5.70%
- ------------------------------------------------------------------------------------------------------------------
Benchmark 4.74% 5.01% 5.20% 5.06% - 6.65%
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE QUALITY BOND (2.00)% 5.15% 7.47% - - 4.96%
- ------------------------------------------------------------------------------------------------------------------
Lipper Corporate Bond A-Rated (2.56)% 4.06% 6.53% - - 4.36%
- ------------------------------------------------------------------------------------------------------------------
Benchmark (0.82)% 5.73% 7.73% - - 5.64%
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH 27.75% - - - - 17.83%
- ------------------------------------------------------------------------------------------------------------------
Lipper Small Cap 34.26% - - - - 19.49%
- ------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% - - - - 25.88%
- ------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN 9.70% 9.70%
- ------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 29.78%
- ------------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 21.26%
- ------------------------------------------------------------------------------------------------------------------
Benchmark #2 21.03% - - - - 21.03%
- ------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN FOUNDATION 7.38% - - - - 7.38%
- ------------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% - - - - 8.69%
- ------------------------------------------------------------------------------------------------------------------
Benchmark 11.15% 11.15%
- ------------------------------------------------------------------------------------------------------------------
LAZARD LARGE CAP VALUE 3.55% 11.46%
- ------------------------------------------------------------------------------------------------------------------
Lipper Capital Appreciation 43.66% - - - - 32.61%
- ------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 24.76%
- ------------------------------------------------------------------------------------------------------------------
LAZARD SMALL CAP VALUE 1.66% (2.77)%
- ------------------------------------------------------------------------------------------------------------------
Lipper Small Cap 34.26% - - - - 16.02%
- ------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 8.70%
- ------------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH
COMPANIES 73.62% - - - - 48.20%
- ------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% - - - - 32.50%
- ------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 16.99%
- ------------------------------------------------------------------------------------------------------------------
MFS GROWTH WITH INCOME 8.76% - - - - 8.76%
- ------------------------------------------------------------------------------------------------------------------
Lipper Growth and Income 12.90% - - - - 12.90%
- ------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 21.03%
- ------------------------------------------------------------------------------------------------------------------
MFS RESEARCH 23.12% - - - - 23.93%
- ------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 29.33%
- ------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 19.00% - - - - 17.93%
- ------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 18.00%
- ------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 21.35% - - - - 12.11%
- ------------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio 12.93% - - - - 11.91%
- ------------------------------------------------------------------------------------------------------------------
Benchmark 13.07% - - - - 16.18%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ------
39
- --------------------------------------------------------------------------------
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MORGAN STANLEY EMERGING
MARKETS EQUITY 95.82% - - - - 5.76%
- ------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% - - - - 2.90%
- ------------------------------------------------------------------------------------------------------------
Benchmark 66.41% - - - - (0.88)%
- ------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED 0.01% - - - - 9.69%
- ------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% - - - - 13.91%
- ------------------------------------------------------------------------------------------------------------
Benchmark 11.39% - - - - 18.81%
- ------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH &
INCOME VALUE (1.27)% - - - - 10.13%
- ------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 18.00%
- ------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INTERNATIONAL
EQUITY 60.24% 31.98%
- ------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 20.38%
- ------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 18.32%
- ------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INVESTORS
GROWTH 30.24% 34.64%
- ------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 29.33%
- ------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME 3.54% - - - - 12.80%
- ------------------------------------------------------------------------------------------------------------
Lipper Equity Income 6.90% - - - - 14.28%
- ------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 27.36%
- ------------------------------------------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL
STOCK 31.92% - - - - 15.73%
- ------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 20.38%
- ------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 18.32%
- ------------------------------------------------------------------------------------------------------------
WARBURG PINCUS SMALL
COMPANY VALUE 1.80% - - - - 3.33%
- ------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 24.22%
- ------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 16.99%
- ------------------------------------------------------------------------------------------------------------
Benchmark #2 (1.49)% - - - - 7.06%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
* The portfolio inception dates for the portfolios underlying the Funds of
Separate Account No. 51 shown in the tables are for portfolios of The
Hudson River Trust, the assets of which became assets of corresponding
portfolios of EQ Advisors Trust on 10/18/99. The portfolio inception
dates for the following portfolios are: 5/1/67 for Alliance Aggressive
Stock; 6/25/79 for Alliance Balanced; 4/28/81 for Alliance Bond; 7/1/69
for Alliance Common Stock; 10/2/89 for Alliance Conservative Investors;
3/1/94 for Alliance Equity Index; 8/27/87 for Alliance Global; 10/1/93
for Alliance Growth and Income; 10/2/89 for Alliance Growth Investors;
1/2/87 for Alliance High Yield; 4/28/81 for Alliance Intermediate
Government Securities; 4/3/95 for Alliance International; 7/13/81 for
Alliance Money Market; 10/1/93 for Alliance Quality Bond; 5/1/97 for
Alliance Small Cap Growth; 12/31/97 for Lazard Large Cap Value and Lazard
Small Cap Value; 5/1/97 for Mercury Basic Value Equity, Mercury World
Strategy, MFS Emerging Growth Companies, and MFS Research; 8/20/97 for
Morgan Stanley Emerging Markets Equity; 5/1/97 for EQ/Putnam Balanced,
EQ/Putnam Growth & Income Value, EQ/Putnam International
<PAGE>
- ------
40
- --------------------------------------------------------------------------------
Equity, EQ/Putnam Investors Growth, T. Rowe Price Equity Income, T. Rowe
Price International Stock, and Warburg Pincus Small Company Value,
EQ/Evergreen, EQ/Evergreen Foundation, and MFS Growth with Income
(12/31/98).
The inception dates for the portfolios that began after December 31, 1998
and therefore not shown in the tables are: EQ/Alliance Premier Growth,
Capital Guardian International, Capital Guardian Research, and Capital
Guardian U.S. Equity (4/30/99); Calvert Socially Responsible (8/30/99);
and EQ/Alliance Technology (5/1/00).
Lipper survey and benchmark "since portfolio inception" information are as
of month-end closest to the actual date of portfolio inception.
<PAGE>
- ------
41
- --------------------------------------------------------------------------------
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE AGGRESSIVE STOCK
(SEPARATE ACCOUNT NO.3) 17.41% 14.04% 83.46% 299.93% 1,412.82% 2,002.39%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Growth 72.56% 130.34% 242.57% 469.32% 2,243.44% 3,300.25%
- ----------------------------------------------------------------------------------------------------------------------------
Benchmark 18.09% 62.12% 147.96% 319.19% N/A N/A
- ----------------------------------------------------------------------------------------------------------------------------
ALLIANCE BALANCED (SEPARATE
ACCOUNT NO. 10) 15.25% 56.04% 109.23% 193.97% 1,272.35% 1,429.53%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper Balance Funds Avg. 8.73% 47.94% 113.55% 207.95% 1,152.66% 1,209.70%
- ----------------------------------------------------------------------------------------------------------------------------
Benchmark 9.07% 58.00% 128.08% 240.54% 1,308.42% 1,333.16%
- ----------------------------------------------------------------------------------------------------------------------------
ALLIANCE BOND (SEPARATE
ACCOUNT NO. 13) (0.37)% 15.78% 37.41% 92.35% - 445.02%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper Gen. U.S. Gov't Funds
Avg. (3.01)% 14.19% 37.16% 90.27% - 470.94%
- ----------------------------------------------------------------------------------------------------------------------------
Benchmark 0.39% 17.42% 40.91% 101.58% - 482.62%
- ----------------------------------------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK
(SEPARATE ACCOUNT NO. 4) 35.10% 66.88% 159.05% 315.17% 2,274.42% 4,920.78%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper Large-Cap Growth 22.31% 94.95% 213.21% 373.19% 2,088.16% 5,151.09%
- ----------------------------------------------------------------------------------------------------------------------------
Benchmark 21.04% 107.56% 251.12% 432.78% 2,584.39% 4,435.35%
- ----------------------------------------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE
INVESTORS 10.14% 42.06% 79.96% 157.86% - 165.82%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 4.42% 39.31% 91.71% 163.35% - 169.02%
- ----------------------------------------------------------------------------------------------------------------------------
Benchmark 4.19% 40.74% 89.21% 177.71% - 186.90%
- ----------------------------------------------------------------------------------------------------------------------------
ALLIANCE EQUITY INDEX 20.38% 104.41% 241.43% - - 245.12%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper S&P 500 Index 19.36% 99.37% 227.98% - - 242.77%
- ----------------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% 107.56% 251.12% - - 253.66%
- ----------------------------------------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 38.53% 88.40% 156.56% 335.00% - 430.25%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper Global 44.62% 93.38% 162.57% 205.54% - 273.03%
- ----------------------------------------------------------------------------------------------------------------------------
Benchmark 24.93% 79.83% 146.35% 194.99% - 252.80%
- ----------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH AND
INCOME 18.66% 82.00% 171.17% - - 168.93%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper Growth and Income 12.90% 62.52% 157.04% - - 158.01%
- ----------------------------------------------------------------------------------------------------------------------------
Benchmark #1 20.71% 86.55% 205.26% - - 204.09%
- ----------------------------------------------------------------------------------------------------------------------------
Benchmark #2 3.28% 17.00% 54.39% 185.43% - 246.92%
- ----------------------------------------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS 26.58% 76.23% 150.78% 383.92% - 403.23%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper Flexible Portfolio 10.45% 49.38% 103.90% 204.29% - 211.11%
- ----------------------------------------------------------------------------------------------------------------------------
Benchmark 13.77% 76.71% 171.92% 309.28% - 352.50%
- ----------------------------------------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD (3.35)% 8.62% 60.06% 164.96% - 220.01%
- ----------------------------------------------------------------------------------------------------------------------------
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 INTERMEDIATE
GOVERNMENT SECURITIES 0.14% 15.76% 36.15% - - 70.39%
- ----------------------------------------------------------------------------------------------------------------------------
Lipper U.S. General Government (2.60)% 12.55% 32.56% - - 64.40%
- ----------------------------------------------------------------------------------------------------------------------------
Benchmark 0.49% 17.43% 39.81% - - 77.41%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ------
42
- --------------------------------------------------------------------------------
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE INTERNATIONAL 37.78% 47.80% - - - 80.63%
- -----------------------------------------------------------------------------------------------------------------------
Lipper International 43.24% 69.17% - - - 103.07%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 26.96% 55.06% - - - 79.52%
- -----------------------------------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET 4.96% 16.56% 29.83% 65.45% - 245.81%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Money Market 3.78% 12.64% 22.65% 47.52% - 178.18%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 4.74% 15.79% 28.88% 63.79% - 229.35%
- -----------------------------------------------------------------------------------------------------------------------
ALLIANCE QUALITY BOND (2.00)% 16.25% 43.34% - - 35.34%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Corporate Bond A-Rated (2.56)% 12.69% 37.39% - - 30.19%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark (0.82)% 18.02% 45.12% - - 40.97%
- -----------------------------------------------------------------------------------------------------------------------
ALLIANCE SMALL CAP GROWTH 27.91% - - - - 55.18%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 62.98%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 43.09% - - - - 84.91%
- -----------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN 9.70% - - - - 9.70%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 29.78%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 21.26%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark #2 21.03% - - - - 21.03%
- -----------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN FOUNDATION 7.38% - - - - 7.38%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% - - - - 8.69%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 11.15% - - - - 11.15%
- -----------------------------------------------------------------------------------------------------------------------
LAZARD LARGE CAP VALUE 3.55% - - - - 24.27%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Capital Appreciation 43.66% - - - - 79.44%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 55.65%
- -----------------------------------------------------------------------------------------------------------------------
LAZARD SMALL CAP VALUE 1.66% - - - - (5.48)%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Small Cap 34.26% - - - - 37.82%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 18.17%
- -----------------------------------------------------------------------------------------------------------------------
MFS EMERGING GROWTH COMPANIES 73.62% - - - - 186.01%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Mid-Cap 51.65% - - - - 120.85%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 21.26% - - - - 52.05%
- -----------------------------------------------------------------------------------------------------------------------
MFS GROWTH WITH INCOME 8.76% - - - - 8.76%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 12.90%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 21.03%
- -----------------------------------------------------------------------------------------------------------------------
MFS RESEARCH 23.12% - - - - 77.36%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 101.13%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------------
MERCURY BASIC VALUE EQUITY 19.00% - - - - 55.35%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 56.85%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------------
MERCURY WORLD STRATEGY 21.35% - - - - 35.70%
- -----------------------------------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio 12.93% - - - - 35.69%
- -----------------------------------------------------------------------------------------------------------------------
Benchmark 13.07% - - - - 49.16%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- ------
43
- --------------------------------------------------------------------------------
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION*
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MORGAN STANLEY EMERGING MARKETS
EQUITY 95.81% - - - - 13.97%
- -----------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets 82.53% - - - - 7.48%
- -----------------------------------------------------------------------------------------------------------------
Benchmark 66.41% - - - - 5.32%
- -----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM BALANCED 0.01% - - - - 28.03%
- -----------------------------------------------------------------------------------------------------------------
Lipper Balanced 8.69% - - - - 42.44%
- -----------------------------------------------------------------------------------------------------------------
Benchmark 11.39% - - - - 61.21%
- -----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE (1.27)% - - - - 29.39%
- -----------------------------------------------------------------------------------------------------------------
Lipper Growth & Income 12.90% - - - - 56.85%
- -----------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INTERNATIONAL EQUITY 60.24% - - - - 109.86%
- -----------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 65.44%
- -----------------------------------------------------------------------------------------------------------------
Benchmark 26.96% - - - - 56.70%
- -----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM INVESTORS GROWTH 30.24% - - - - 121.33%
- -----------------------------------------------------------------------------------------------------------------
Lipper Growth 29.78% - - - - 101.13%
- -----------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME 3.54% - - - - 37.95%
- -----------------------------------------------------------------------------------------------------------------
Lipper Equity Income 6.90% - - - - 43.31%
- -----------------------------------------------------------------------------------------------------------------
Benchmark 21.03% - - - - 90.75%
- -----------------------------------------------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK 31.92% - - - - 47.63%
- -----------------------------------------------------------------------------------------------------------------
Lipper International 43.24% - - - - 65.44%
- -----------------------------------------------------------------------------------------------------------------
Benchmark 29.26% - - - - 56.70%
- -----------------------------------------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE 1.80% - - - - 9.14%
- -----------------------------------------------------------------------------------------------------------------
Lipper Small-Cap 34.26% - - - - 83.94%
- -----------------------------------------------------------------------------------------------------------------
Benchmark #1 21.26% - - - - 52.05%
- -----------------------------------------------------------------------------------------------------------------
Benchmark #2 (1.49)% - - - - 19.99%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
* Portfolio inception dates are shown in Table 1. Lipper survey and
benchmark "since portfolio inception" information are as of month-end
closest to the actual date of portfolio inception.
<PAGE>
- ------
44
- --------------------------------------------------------------------------------
RIA YEAR-BY-YEAR RATES OF RETURN
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
1990 1991 1992 1993
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alliance Aggressive Stock (Separate
Account No. 3) 8.85% 87.18% (3.01)% 15.19%
- ----------------------------------------------------------------------------------------------
Alliance Balanced (Separate Account
No. 10) (0.65)% 41.23% (2.83)% 12.54%
- ----------------------------------------------------------------------------------------------
Alliance Bond (Separate Account
No. 13) 7.82% 14.45% 6.03% 9.21%
- ----------------------------------------------------------------------------------------------
Alliance Common Stock (Separate
Account No. 4) (11.35)% 52.03% 1.22% 19.81%
- ----------------------------------------------------------------------------------------------
Alliance Equity Index - - - -
- ----------------------------------------------------------------------------------------------
Alliance Global (6.11)% 30.49% (0.56)% 32.06%
- ----------------------------------------------------------------------------------------------
Alliance Growth and Income - - - (0.27)%*
- ----------------------------------------------------------------------------------------------
Alliance Growth Investors 10.56% 48.84% 4.88% 15.20%
- ----------------------------------------------------------------------------------------------
Alliance High Yield (1.15)% 24.40% 12.26% 23.08%
- ----------------------------------------------------------------------------------------------
Alliance Intermediate Government
Securities - 12.03% 5.54% 10.52%
- ----------------------------------------------------------------------------------------------
Alliance International - - - -
- ----------------------------------------------------------------------------------------------
Alliance Money Market 8.19% 6.13% 3.48% 2.94%
- ----------------------------------------------------------------------------------------------
Alliance Quality Bond - - - (0.52)%*
- ----------------------------------------------------------------------------------------------
Alliance Small Cap Growth - - - -
- ----------------------------------------------------------------------------------------------
EQ/Evergreen - - - -
- ----------------------------------------------------------------------------------------------
EQ/Evergreen Foundation - - - -
- ----------------------------------------------------------------------------------------------
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 Balanced - - - -
- ----------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value - - - -
- ----------------------------------------------------------------------------------------------
EQ/Putnam International Equity - - - -
- ----------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth - - - -
- ----------------------------------------------------------------------------------------------
T. Rowe Price Equity Income - - - -
- ----------------------------------------------------------------------------------------------
T. Rowe Price International Stock - - - -
- ----------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value - - - -
- ----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Alliance Aggressive Stock (Separate
Account No. 3) (4.24)% 31.33% 22.50% 12.10% (13.35)% 17.41%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Balanced (Separate Account
No. 10) (8.43)% 20.43% 11.34% 13.42% 19.37% 15.25%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Bond (Separate Account
No. 13) (2.03)% 15.48% 2.77% 7.62% 7.98% (0.37)%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Common Stock (Separate
Account No. 4) (1.94)% 31.85% 17.74% 26.93% (2.68)% 35.10%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Equity Index 1.04%* 36.41% 22.32% 32.50% 28.01% 20.32%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Global 5.18% 18.76% 14.55% 11.49% 21.74% 38.46%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Growth and Income (0.62)% 24.01% 20.03% 26.69% 20.80% 18.60%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Growth Investors (3.19)% 26.31% 12.55% 16.72% 19.07% 26.52%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance High Yield (2.83)% 19.86% 22.82% 18.41% (5.20)% (3.40)%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Intermediate Government
Securities (4.42)% 13.27% 3.72% 7.24% 7.69% 0.09%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance International - 10.66%* 9.76% (3.10)% 10.51% 37.72%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Money Market 3.96% 5.69% 5.28% 5.37% 5.29% 4.96%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Quality Bond (5.15)% 16.97% 5.31% 9.09% 8.63% (2.00)%
- ---------------------------------------------------------------------------------------------------------------------------
Alliance Small Cap Growth - - - 26.64%* 4.32% 27.75%
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen - - - - - 9.70%
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Foundation - - - - - 7.38%
- ---------------------------------------------------------------------------------------------------------------------------
Lazard Large Cap Value - - - - - 3.55%
- ---------------------------------------------------------------------------------------------------------------------------
Lazard Small Cap Value - - - - - 1.66%
- ---------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Companies - - - - - 73.62%
- ---------------------------------------------------------------------------------------------------------------------------
MFS Growth with Income - - - - - 8.76%
- ---------------------------------------------------------------------------------------------------------------------------
MFS Research - - - - - 23.12%
- ---------------------------------------------------------------------------------------------------------------------------
Mercury Basic Value Equity - - - - - 19.00%
- ---------------------------------------------------------------------------------------------------------------------------
Mercury World Strategy - - - - - 21.35%
- ---------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Emerging Markets Equity - - - - - 95.82%
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Balanced - - - - - 0.01%
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value - - - - - (1.27)%
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity - - - - - 60.24%
- ---------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth - - - - - 30.24%
- ---------------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income - - - - - 3.54%
- ---------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock - - - - - 31.92%
- ---------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Small Company Value - - - - - 1.80%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
* Unannualized
<PAGE>
9 Charges and expenses
- ------
45
- --------------------------------------------------------------------------------
You will incur two general types of charges under RIA:
(1) Charges reflected as reductions in the unit values of the Funds which are
recorded as expenses of the Fund. These charges apply to all amounts
invested in RIA, including installment payout option payments.
(2) Charges stated as a defined percentage or fixed dollar amount and
deducted by reducing the number of units in the appropriate Funds and the
dollars in the guaranteed interest account.
We make no deduction from your contributions for sales expenses.
CHARGES REFLECTED IN THE UNIT VALUES
INVESTMENT MANAGEMENT AND ACCOUNTING FEES
The computation of unit values for the Alliance Bond, Alliance Common Stock,
Alliance Aggressive Stock and Alliance Balanced Funds reflects fees we charge
for investment management and accounting. We receive fees for investment
management and financial accounting services we provide for these Funds, as well
as a portion of our related administrative costs. This fee is charged daily at
an effective annual rate of .50% of the net assets of the Alliance Bond,
Alliance Common Stock, Alliance Aggressive Stock and Alliance Balanced Funds.
ADMINISTRATIVE CHARGE FOR THE FUNDS OF SEPARATE ACCOUNT NO. 51
We make a daily charge at an annual rate of 0.05% of the assets invested in the
Funds of Separate Account No. 51. The charge is designed to reimburse us for our
costs in providing administrative services in connection with the contracts.
INDIRECT EXPENSES BORNE BY THE FUNDS
ANNUAL EXPENSES OF EQ ADVISORS TRUST. The Funds that invest in portfolios of EQ
Advisors Trust are indirectly subject to investment advisory and other expenses
charged against assets of their corresponding portfolios. These expenses are
described in the prospectus for EQ Advisors Trust attached at the end of this
prospectus.
OTHER EXPENSES. Certain costs and expenses are charged directly to the Funds.
These may include transfer taxes, SEC filing fees and certain related expenses
including printing of SEC filings, prospectuses and reports, proxy mailings,
other mailing costs, and legal expenses.
CHARGES WHICH REDUCE THE NUMBER OF UNITS
CONTINGENT WITHDRAWAL CHARGE
We may impose a contingent withdrawal charge ("CWC") against withdrawals made
from any of the Funds or the guaranteed interest account at any time up to and
including the ninth anniversary of the date on which the employer plan began its
participation in RIA. The CWC is designed to recover the unamortized sales and
promotion expenses and initial enrollment expenses incurred by us.
We will not apply a CWC against amounts withdrawn for the purpose of making
benefit distribution payments unless such withdrawals are made (i) on or after
the date of discontinuance of an employer plan's participation in RIA or (ii) as
a result of a full or partial termination, within the meaning of applicable
Internal Revenue Service ("IRS") or court interpretations.
We will apply a CWC against amounts withdrawn for purposes of making benefit
payments to participants who terminated employment either voluntarily or
involuntarily, but only when such terminations are attributable to (i) the
employer's merger with another company, (ii) the sale of the employer or (iii)
the bankruptcy of the employer which leads to the full or partial termination of
the plan or the discontinuance of the employer plan's participation in RIA.
<PAGE>
- ------
46
- --------------------------------------------------------------------------------
We do not apply a CWC on transfers between the investment options. However, we
do apply a CWC to withdrawals from RIA for the purpose of transferring to
another funding vehicle under the employer plan, unless an officer of Equitable
Life agrees, in writing, to waive this charge. We do not consider withdrawals
from RIA for the purpose of paying plan expenses or the premium on a life
insurance policy, including one held under the employer plan, to be in-service
withdrawals or any other type of benefit distribution. These withdrawals are
subject to the CWC.
The amount of any CWC is determined in accordance with the rate schedule set
forth below. We include outstanding loan balances in the plan's assets for
purposes of assessing the CWC.
WITHDRAWAL IN
PARTICIPATION YEARS CONTINGENT WITHDRAWAL CHARGE
- -----------------------------------------------------
1 or 2 6% of Amount Withdrawn
3 or 4 5%
5 or 6 4%
7 or 8 3%
9 2%
10 and later 0%
- -----------------------------------------------------
Benefit distribution payments are those payments that become payable with
respect to participants under the terms of the employer plan as follows:
1. as the result of the retirement, death or disability of a participant;
2. as the result of a participant's separation from service as defined under
Section 402(d)(4)(A) of the Code;
3. in connection with a loan transaction, if the loan is repaid in accordance
with its terms;
4. as a minimum distribution pursuant to Section 401(a)(9) of the Code;
5. as a hardship withdrawal pursuant to Section 401(k) of the Code;
6. pursuant to a qualified domestic relations order ("QDRO") under Section
414(p) of the Code, but only if the QDRO specifically requires that the
plan administrator withdraw amounts for payment to an alternate payee;
7. as a result of an in-service withdrawal attributable to the after-tax
contributions of a participant; or
8. as a result of an in-service withdrawal from a profit-sharing plan after
meeting a minimum number of years of service and/or participation in the
plan, and the attainment of a minimum age specified in the plan.
Prior to any withdrawal from RIA for benefit distribution purposes, Equitable
Life reserves the right to receive from the employer and/or trustees of the
plan, evidence satisfactory to it that such benefit distribution conforms to at
least one of the types mentioned above.
ONGOING OPERATIONS FEE
The ongoing operations fee is based on the combined net balances (including any
outstanding loan balance) of an employer plan in the investment options at the
close of business on the last business day of each month. The amount of the
ongoing operations fee is determined under the rate schedule that applies to the
employer plan. Unless you make other arrangements, we deduct the charge from
employer plan balances at the close of business on the last business day of the
following month.
Set forth below is the rate schedule for employer plans which adopted RIA after
February 9, 1986. Information concerning the rate schedule for employer plans
that adopted RIA on or before February 9, 1986 is included in the SAI under
"Fund information."
COMBINED BALANCE MONTHLY
OF INVESTMENT OPTIONS RATE
- --------------------------------------------
First $ 150,000 1/12 of 1.25%
Next $ 350,000 1/12 of 1.00%
Next $ 500,000 1/12 of 0.75%
Over $1,000,000 1/12 of 0.50%
- --------------------------------------------
<PAGE>
- ------
47
- --------------------------------------------------------------------------------
The ongoing operations fee is designed to cover such expenses as contract
underwriting and issuance for employer plans, employer plan-level recordkeeping,
processing transactions and benefit distributions, administratively maintaining
the investment options, commissions, promotion of RIA, administrative costs
(including certain enrollment and other servicing costs), systems development,
legal and technical support, product and financial planning and part of our
general overhead expenses. Administrative costs and overhead expenses include
such items as salaries, rent, postage, telephone, travel, office equipment and
stationery, and legal, actuarial and accounting fees.
PARTICIPANT RECORDKEEPING SERVICES CHARGE
The PRS is an optional service. If you elect this service, we charge a per
participant annual fee of $25. We deduct this fee on a monthly basis at the rate
of $2.08 per participant. We determine the amount of the fee for an employer
plan at the close of business on the last business day of each month based on
the number of participants enrolled with us at that time. Unless you make other
arrangements, we deduct this fee from the combined balances of each participant
in the investment options at the close of business on the last business day of
the following month. The PRS fee covers expenses incurred for establishing and
maintaining individual records, issuing statements and reports for individual
employees and employer plans, and processing individual transactions and benefit
distributions. We are not responsible for reconciling participants' individual
account balances with the entire amount of the employer plan where we do not
maintain individual account balances.
LOAN FEE
We charge a loan fee in an amount equal to 1% of the loan principal amount on
the date the plan loan is made.
OTHER BILLING ARRANGEMENTS
The ongoing operations and participant recordkeeping services fees can be paid
by a direct billing arrangement we have with the employer subject to a written
agreement between Equitable Life and the employer.
INDIVIDUAL ANNUITY CHARGES
ANNUITY ADMINISTRATIVE CHARGE. If a participant elects an annuity payout option,
we deduct a $175 charge from the amount used to purchase the annuity. This
charge reimburses us for administrative expenses associated with processing the
application for the annuity and issuing each month's annuity payment.
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
by us varies by state and ranges from 0% to 1% (1% in Puerto Rico and 5% in the
U.S. Virgin Islands).
GENERAL INFORMATION ON FEES AND CHARGES
We reserve the right (1) to change from time to time the charges and fees
described in this prospectus upon prior notice to the employer and (2) to
establish separate fee schedules for requested non-routine administrative
services and for newly scheduled services not presently contemplated under the
contracts.
<PAGE>
10 Tax information
- ------
48
- --------------------------------------------------------------------------------
Employer retirement plans that may qualify for tax-favored treatment are
governed by the provisions of the Internal Revenue Code ("Code") and ERISA. The
Code is administered by the IRS. ERISA is administered primarily by the DOL.
Provisions of the Code and ERISA include requirements for various features
including:
o participation, vesting and funding;
o nondiscrimination;
o limits on contributions and benefits;
o distributions;
o penalties;
o duties of fiduciaries;
o prohibited transactions; and
o withholding, reporting and disclosure.
IT IS THE RESPONSIBILITY OF THE EMPLOYER, PLAN TRUSTEE AND PLAN ADMINISTRATOR
TO SATISFY THE REQUIREMENTS OF THE CODE AND ERISA.
This prospectus does not provide detailed tax or ERISA information. The
following discussion briefly outlines the Code provisions relating to
contributions to and distributions from certain tax-qualified retirement plans,
although some information on other provisions is also provided. Various tax
disadvantages, including penalties, may result from actions that conflict with
requirements of the Code or ERISA, and regulations or other interpretations
thereof. In addition, federal tax laws and ERISA are continually under review
by the Congress, and any changes in those laws, or in the regulations
pertaining to those laws, may affect the tax treatment of amounts contributed
to tax-qualified retirement plans or the legality of fiduciary actions under
ERISA.
Certain tax advantages of tax-qualified retirement plans may not be available
under certain state and local tax laws. This outline does not discuss the
effect of any state or local tax laws. It also does not discuss the effect of
federal estate and gift tax laws (or state and local estate, inheritance and
other similar tax laws). This outline assumes that the participant does not
participate in any other qualified retirement plan. Finally, it should be noted
that many tax consequences depend on the particular jurisdiction or
circumstances of a participant or beneficiary.
Because you are buying a contract to fund a retirement plan that already
provides tax deferral, you should do so for the contract's features and
benefits other than tax deferral. The tax deferral of the contract does not
provide additional benefits.
The provisions of the Code and ERISA are highly complex. For complete
information on these provisions, as well as all other federal, state, local and
other tax considerations, qualified legal and tax advisers should be consulted.
TAX ASPECTS OF CONTRIBUTIONS TO A PLAN
Corporations, partnerships and self-employed individuals can establish
qualified plans for the working owners and their employees who participate in
the plan. Qualified plans established by partnerships and sole proprietorships
are frequently referred to as "Keogh" plans. Both employer and employee
contributions to these plans are subject to a variety of limitations, some of
which are discussed here briefly. See your tax adviser for more information.
Violation of contribution limits may result in disqualification and/or
imposition of monetary penalties. The trustee or plan administrator may make
contributions on behalf of the plan participants which are deductible from the
employer's federal gross income. Employer contributions which exceed the amount
currently deductible are subject to a 10% penalty tax. There are special rules
for corporate plans and Keogh plans which are top heavy plans (i.e., more than
60% of the contributions or benefits are allocated to certain highly
compensated employees otherwise known as key employees).
The limits on the amount of contributions that can be made and/or forfeitures
that can be allocated to each participant in defined contribution plans is the
lesser of $30,000 or 25% of the compensation or earned income for each
participant. In 2000, the employer may not consider compensation in
<PAGE>
- ------
49
- --------------------------------------------------------------------------------
excess of $170,000 in calculating contributions or benefits to the plan. This
amount may be adjusted for cost-of-living changes in future years. For
self-employed individuals, earned income is defined so as to exclude deductible
contributions made to all tax-qualified retirement plans, including Keogh plans,
and takes into account the deduction for one-half the individual's
self-employment tax. Deductions for aggregate contributions to profit-sharing
plans may not exceed 15% of all participants' compensation.
Special limits on deductions for contributions to one or more defined
contribution plans and one or more defined benefit plans are in effect through
1999, but will be eliminated thereafter. Special limits on contributions apply
to anyone who participates in more than one qualified plan or who controls
another trade or business. In addition, there is an overall limit on the total
amount of contributions and benefits under all tax-qualified retirement plans in
which an individual participates.
The deductible limits for corporate plans and Keogh plans which are defined
benefit plans are based on the minimum funding standard determined by the plan
actuary each year. No participant can receive a benefit which exceeds the lesser
of (i) $90,000 ($135,000 as indexed for inflation for the 2000 plan year) or
(ii) 100% of the participant's average compensation for the consecutive
three-year period which results in the highest such average. The $90,000 limit
is actuarially reduced for participants retiring prior to the social security
retirement age and actuarially increased for participants retiring after the
social security retirement age. Special grandfathering rules apply to certain
participants whose benefits exceed the $90,000 limit.
A qualified plan may allow the participant to direct the employer to make
contributions which will not be included in the employee's income (elective
deferrals) by entering into a salary reduction agreement with the employer under
Section 401(k) of the Code. The 401(k) plan, otherwise known as a cash or
deferred arrangement, must not allow withdrawals of elective deferrals and the
earnings thereon prior to the earliest of the following events: (i) attainment
of age 59 1/2, (ii) death, (iii) disability, (iv) certain business dispositions
and plan terminations or (v) termination of employment. In addition, in-service
withdrawals of elective deferrals (but not earnings after 1988) may be made in
the case of financial hardship.
A participant cannot elect to defer annually more than $7,000 ($10,500 as
indexed for inflation in 2000) under all salary reduction arrangements with all
employers in which the individual participates.
Employer matching contributions to a 401(k) plan for self-employed individuals
are no longer treated as elective deferrals, and are treated the same as
employer matching contributions for other employees.
A qualified plan must not discriminate in favor of highly compensated employees.
Two special nondiscrimination rules limit contributions and benefits for highly
compensated employees in the case of (1) a 401(k) plan and (2) any defined
contribution plan, whether or not a 401(k) plan, which provides for employer
matching contributions to employee after-tax contributions or elective
deferrals. Generally, these nondiscrimination tests require an employer to
compare the deferrals or the aggregate contributions, as the case may be, made
by the eligible highly compensated employees with those made by the non-highly
compensated employees, although alternative simplified tests are available.
Highly compensated participants include five percent owners and employees
earning more than $85,000 for the prior year. (If desired the latter group can
be limited to employees who are in the top 20% of all employees based on
compensation.)
Certain 401(k) plans can adopt a "SIMPLE 401(k)" feature which will enable the
plan to meet nondiscrimination requirements without testing. The SIMPLE 401(k)
feature requires the plan to meet specified contribution, vesting and exclusive
plan requirements.
Effective January 1, 1999 employers may adopt a safe harbor 401(k) arrangement.
Under this arrangement, an employer agrees to offer a matching contribution
equal to (a) 100% of salary deferral contributions up to 3% of compensation and
(b) 50% of salary deferral contributions
<PAGE>
- ------
50
- --------------------------------------------------------------------------------
that exceed 3% but are less than 5% of compensation. These contributions must be
nonforfeitable. If the employer makes these contributions and gives proper
notification to plan participants, the plan is not subject to non-discrimination
testing on salary deferral and the above contributions.
TAX ASPECTS OF DISTRIBUTIONS FROM A PLAN
Amounts held under qualified plans are generally not subject to federal income
tax until benefits are distributed to the participant or other recipient. In
addition, there will not be any tax liability for transfers of any part of the
value of an employer plan among the Funds.
The various types of benefit payments include withdrawals, annuity payments and
lump sum distributions. Each benefit payment made to the participant or other
recipient is generally fully taxable as ordinary income. An exception to this
general rule is made, however, to the extent a distribution is treated as a
recovery of after-tax contributions made by the participant.
In addition to income tax, the taxable portion of any distribution may be
subject to a 10% penalty tax. See "Penalty tax on premature distributions" in
this section.
INCOME TAXATION OF WITHDRAWALS
The amount of any partial distribution prior to the annuity starting date is
treated as ordinary income except to the extent the distribution is treated as a
withdrawal of after-tax contributions. Withdrawals from a qualified plan are
normally treated as pro rata withdrawals of after-tax contributions and earnings
on those contributions. If the plan allowed withdrawals prior to separation from
service as of May 5, 1986, however, all after-tax contributions made prior to
January 1, 1987 may be withdrawn tax free prior to withdrawing any taxable
amounts if properly accounted for by the plan.
As discussed in this section in "Certain rules applicable to plan loans," taking
a loan or failing to repay an outstanding loan as required may, in certain
situations, be treated as a taxable distribution.
INCOME TAXATION OF ANNUITY PAYMENTS
In the case of a distribution in the form of an annuity, the amount of each
annuity payment is treated as ordinary income except where the participant has a
cost basis in the annuity.
The cost basis is equal to the amount of after-tax contributions, plus any
employer contributions that had to be included in gross income in prior years.
If the participant has a cost basis in the annuity, a portion of each payment
received will be excluded from gross income to reflect the return of the cost
basis. The remainder of each payment will be includable in gross income as
ordinary income. The excludable portion is based on the ratio of the
participant's cost basis in the annuity on the annuity starting date to the
expected return, generally determined in accordance with a statutory table,
under the annuity as of such date. The full amount of the payments received
after the cost basis of the annuity is recovered is fully taxable. If there is a
refund feature under the annuity, the beneficiary of the refund may recover the
remaining cost basis as payments are made. If the participant (and beneficiary
under a joint and survivor annuity) die prior to recovering the full cost basis
of the annuity, a deduction is allowed on the participant's (or beneficiary's)
final tax return.
INCOME TAXATION OF LUMP SUM DISTRIBUTIONS
If benefits are paid in a lump sum, the payment may be eligible for the special
tax treatment accorded lump sum distributions. In certain limited cases, the
distribution may be eligible for favorable ten year averaging and long-term
capital gain treatment.
ELIGIBLE ROLLOVER DISTRIBUTIONS
Many types of distributions from qualified plans are "eligible rollover
distributions" that can be rolled over directly to another qualified plan or a
traditional individual retirement arrangement ("IRA"), or rolled over to another
plan or IRA within 60 days of receipt by the individual. Death benefits received
by a spouse' beneficiary may only be rolled over into an IRA. To the extent a
distribution is rolled over, it remains tax deferred. Distributions not rolled
over directly,
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however, are subject to 20% mandatory withholding. See "Federal income tax
withholding" in this section.
The taxable portion of most distributions will generally be an "eligible
rollover distribution" unless the distribution falls within the following list
of exceptions:
o one of a series of substantially equal periodic payments made (not less
frequently than annually);
(a) for the life (or life expectancy) of the participant or the joint lives
(or joint life expectancies) of the participant and his or her
designated beneficiary, or
(b) for a specified period of ten years or more.
o nondeductible voluntary contributions;
o hardship withdrawals;
o any distribution to the extent it is a required distribution under Section
401(a)(9) of the Code (see "Distribution requirements and limits" below);
o certain corrective distributions in plans subject to Sections 401(k),
401(m) or 402(g) of the Code;
o loans that are treated as deemed distributions under Section 72(p) of the
Code;
o P.S. 58 costs (incurred if the plan provides life insurance protection for
participants);
o dividends paid on employer securities as described in Section 404(k) of the
Code; and
o a distribution to a non-spousal beneficiary.
If a distribution is made to a participant's surviving spouse, or to a current
or former spouse under a qualified domestic relations order, the distribution
may be an eligible rollover distribution, subject to mandatory 20% withholding,
unless one of the exceptions described above applies.
If distributions eligible for rollover are in fact rolled over, the favorable
averaging rules discussed above in "Income taxation of lump sum distributions"
will not be available for any future distributions made before 2000.
PENALTY TAX ON PREMATURE DISTRIBUTIONS
An additional 10% penalty tax is imposed on all taxable amounts distributed to a
participant who has not reached age 59 1/2 unless the distribution falls within
a specified exception or is rolled over into an IRA or other qualified plan. The
specified exceptions are for:
(a) distributions made on account of the participant's death or disability,
(b) distributions (which begin after separation from service) in the form of a
life annuity or substantially equal periodic installments over the
participant's life expectancy (or the joint life expectancy of the
participant and the beneficiary),
(c) distributions due to separation from active service after age 55 and
(d) distributions used to pay certain extraordinary medical expenses.
FEDERAL INCOME TAX WITHHOLDING
Mandatory federal income tax withholding at a 20% rate will apply to all
"eligible rollover distributions" unless the participant elects to have the
distribution directly rolled over to another qualified plan or traditional IRA.
See the description above of "Eligible rollover distributions."
With respect to distributions that are not eligible rollover distributions,
federal income tax must be withheld on the taxable portion of pension and
annuity payments, unless the recipient elects otherwise. The rate of withholding
will depend on the type of distribution and, in certain cases, the amount of the
distribution. Special rules may apply to foreign recipients, or United States
citizens residing outside the United States. If a recipient does not have
sufficient income tax withheld, or does not make sufficient estimated income tax
payments, the recipient may incur penalties under the estimated income tax
rules. Recipients should consult their tax advisers to determine whether they
should elect out of withholding.
Requests not to withhold federal income tax must be made in writing prior to
receiving payments and submitted in accordance with the terms of the employer
plan. No election
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out of withholding is valid unless the recipient provides the recipient's
correct Taxpayer Identification Number and a U.S. residence address.
STATE INCOME TAX WITHHOLDING
Certain states have indicated that pension and annuity withholding will apply to
payments made to residents of such states. In some states a recipient may elect
out of state income tax withholding, even if federal withholding applies. It is
not clear whether such states may require mandatory withholding with respect to
eligible rollover distributions that are not rolled over (as described in this
section under "Eligible rollover distributions"). Contact your tax adviser to
see how state withholding may apply to your payment.
DISTRIBUTION REQUIREMENTS AND LIMITS
Distributions from qualified plans generally must commence no later than April
1st of the calendar year following the calendar year in which the participant
reaches age 70 1/2 (or retires from the employer sponsoring the Plan if later).
Five percent owners of qualified plans must commence distribution after age 70
1/2 even if they are still working.
Distributions can generally be made:
(1) in a lump sum payment,
(2) over the life of the participant,
(3) over the joint lives of the participant and his or her designated
beneficiary,
(4) over a period not extending beyond the life expectancy of the participant,
or
(5) over a period not extending beyond the joint life expectancies of the
participant and his or her designated beneficiary.
The plan document will specify the options available to participants.
The minimum amount required to be distributed in each year after minimum
distributions are required to begin is described in the Code, Treasury
Regulations and IRS guidelines.
If the participant dies after required distribution has begun, payment of the
remaining interest under the plan must be made at least as rapidly as under the
method used prior to the participant's death. If a participant dies before
required distribution has begun, payment of the entire interest under the plan
must be completed within five years after death, unless payments to a designated
beneficiary begin within one year of the participant's death and are made over
the beneficiary's life or over a period certain which does not extend beyond the
beneficiary's life expectancy. If the surviving spouse is the designated
beneficiary, the spouse may delay the commencement of such payments up until the
date that the participant would have attained age 70 1/2. Distributions received
by a beneficiary are generally given the same tax treatment the participant
would have received if distribution had been made to the participant.
If there is an insufficient distribution in any year, a 50% tax may be imposed
on the amount by which the minimum required to be distributed exceeds the amount
actually distributed. Failure to have distributions made as the Code and
Treasury Regulations require may result in plan disqualification.
SPOUSAL REQUIREMENTS
In the case of many qualified retirement plans, if a participant is married at
the time benefit payments become payable, unless the participant elects
otherwise with written consent of the spouse, the benefit must be paid in the
form of a qualified joint and survivor annuity ("QJSA"). A QJSA is an annuity
payable for the life of the participant with a survivor annuity for the life of
the spouse in an amount which is not less than one-half of the amount payable to
the participant during his or her lifetime. In addition, a married participant's
beneficiary must be the spouse, unless the spouse consents in writing to the
designation of a different beneficiary.
CERTAIN RULES APPLICABLE TO PLAN LOANS
The following are federal tax and ERISA rules that apply to loan provisions of
all employer plans. Employer plans may have additional restrictions. Employers
and participants
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should review these matters with their own tax advisers before requesting a
loan. There will not generally be any tax liability with respect to properly
made loans in accordance with an employer plan. A loan may be in violation of
applicable provisions unless it complies with the following conditions:
o With respect to specific loans made by the plan to a plan participant, the
loan administrator determines the interest rate, the maximum term and all
other terms and conditions of the loan.
o In general, the term of the loan cannot exceed five years unless the loan is
used to acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level payments
over the term of the loan, with payments being made at least quarterly.
o The amount of a loan to a participant, when aggregated with all other loans
to the participant from all qualified plans of the employer, cannot exceed
the greater of $10,000 or 50% of the participant's nonforfeitable accrued
benefits, and cannot exceed $50,000 in any event. This $50,000 limit is
reduced by the excess (if any) of the highest outstanding loan balance over
the previous twelve months over the outstanding balance of plan loans on the
date the loan was made.
o For loans made prior to January 1, 1987 and not renewed, modified,
renegotiated or extended after December 31, 1986 the $50,000 maximum
aggregate loan balance is not required to be reduced, the quarterly
amortization requirement does not apply, and the term of a loan may exceed
five years if used to purchase the principal residence of the participant or
a member of his or her family, as defined in the Code.
o Only 50% of the participant's vested account balance may serve as security
for a loan. To the extent that a participant borrows an amount which should
be secured by more than 50% of the participant's vested account balance, it
is the responsibility of the trustee or plan administrator to obtain the
additional security.
o Loans must be available to all plan participants, former participants who
still have account balances under the plan, beneficiaries and alternate
payees on a reasonably equivalent basis.
o Each new or renewed loan must bear a reasonable rate of interest
commensurate with the interest rates charged by persons in the business of
lending money for loans that would be made under similar circumstances.
o Many plans provide that the participant's spouse must consent in writing to
the loan.
o Except to the extent permitted in accordance with the terms of a prohibited
transaction exemption issued by the DOL, loans are not available (i) in a
Keogh (non-corporate plan to an owner-employee or a partner who owns more
than 10% of a partnership or (ii) to 5% shareholders in an S corporation.
If the loan does not qualify under the conditions above, the participant fails
to repay the interest or principal when due, or in some instances, if the
participant separates from service or the plan is terminated, the amount
borrowed or not repaid may be treated as a distribution. The participant may be
required to include as ordinary income the unpaid amount due and a 10% penalty
tax on early distributions may apply. The plan should report the amount of the
unpaid loan balance to the IRS as a distribution. See "Tax aspects of
distributions from a plan" in this section.
The loan requirements and provisions of RIA shall apply regardless of the plan
administrator's guidelines.
IMPACT OF TAXES TO EQUITABLE LIFE
Under existing federal income tax law, no taxes are payable on investment income
and capital gains of the Funds that are applied to increase the reserves under
the contracts. Accordingly, Equitable Life does not anticipate that it will
incur any federal income tax liability attributable to income allocated to the
variable annuity contracts participating in the Funds and it does not currently
impose a charge for federal income tax on this income when it computes unit
values for the Funds. If changes in federal tax laws or
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interpretations thereof would result in Equitable Life being taxed, then
Equitable Life may impose a charge against the Funds (on some or all contracts)
to provide for payment of such taxes.
CERTAIN RULES APPLICABLE TO PLANS DESIGNED TO COMPLY WITH SECTION 404(C) OF
ERISA
Section 404(c) of ERISA, and the related DOL regulation, provide that if a plan
participant or beneficiary exercises control over the assets in his or her plan
account, plan fiduciaries will not be liable for any loss that is the direct and
necessary result of the plan participant's or beneficiary's exercise of control.
As a result, if the plan complies with Section 404(c) and the DOL regulation
thereunder, the plan participant can make and is responsible for the results of
his or her own investment decisions.
Section 404(c) plans must provide, among other things, that a broad range of
investment choices are available to plan participants and beneficiaries and must
provide such plan participants and beneficiaries with enough information to make
informed investment decisions. Compliance with the Section 404(c) regulation is
completely voluntary by the plan sponsor, and the plan sponsor may choose not to
comply with Section 404(c).
The RIA Program provides employer plans with the broad range of investment
choices and information needed in order to meet the requirements of the Section
404(c) regulation. If the plan is intended to be a Section 404(c) plan, it is,
however, the plan sponsor's responsibility to see that the requirements of the
DOL regulation are met. Equitable Life and its agents shall not be responsible
if a plan fails to meet the requirements of Section 404(c).
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ABOUT CHANGES OR TERMINATIONS
AMENDMENTS. The contracts have been amended in the past and we and the trustee
under the Master Trust Agreement may agree to amendments in the future. No
future change can affect annuity benefits in the course of payment. If certain
conditions are met, we may: (1) terminate the offer of any of the investment
options and (2) offer new investment options with different terms.
We may unilaterally amend or modify the contracts or the Master Retirement Trust
without the consent of the employer or plan sponsor, as the case may be, in
order to keep the contracts or the Master Retirement Trust in compliance with
law.
TERMINATION. We can discontinue offering RIA at any time. Discontinuance of RIA
would not affect annuities in the course of payment, but we would not accept
further contributions. The employer may elect to maintain investment options
balances with us to provide annuity benefits in accordance with the terms of the
contracts. The employer may elect to discontinue the participation of the
employer plan in RIA at any time upon advance written notice to us.
We may elect, upon written notice to the employer, to discontinue the
participation of the employer plan in RIA if (1) the employer fails to comply
with any terms of the Master Retirement Trust, (2) the employer fails to make
the required minimum contributions, (3) as may be agreed upon in writing between
Equitable Life and the employer if the plan fails to maintain minimum amounts of
Funds invested in RIA, or (4) the employer fails to comply with any
representations and warranties made by the employer, trustees or employer plan
to Equitable Life in connection with the employer plan's participation in RIA.
At any time on or after the participation of the employer in RIA has been
discontinued, we may withdraw the entire amount of the employer plan assets held
in the investment options, and pay them to the trustee of the employer plan,
subject to our right to defer payout of amounts held in the guaranteed interest
account, less any applicable charges and fees and outstanding loan balances.
IRS DISQUALIFICATION
If your plan is found not to qualify under the Internal Revenue Code, we can
terminate your participation under RIA. In this event, we will withdraw the
employer plan balances from the investment options, less applicable charges and
fees and any outstanding loan balances, and pay the amounts to the trustees of
the plan.
ABOUT THE SEPARATE ACCOUNTS
Each Fund is one, or part of one, of our separate accounts. We established the
separate accounts 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 Funds for owners of our variable annuity contracts,
including our group annuity contracts. The results of each separate account's
operations are accounted for without regard to Equitable Life's, or any other
separate account's, operating results. We are the legal owner of all of the
assets in the separate accounts and may withdraw any amounts we have in the
separate accounts that exceed our reserves and other liabilities under variable
annuity contracts. We reserve the right to take certain actions in connection
with our operations and the operations of the Funds as permitted by applicable
law. If necessary, we will seek approval by participants in RIA.
We established the Alliance Bond Fund in 1981, Alliance Common Stock and
Alliance Aggressive Stock Funds in 1969, and Alliance Balanced Fund in 1979. The
separate account which holds the Alliance Global, Alliance Conservative
Investors, and the Alliance Growth Investors Funds was established in 1993. The
Alliance Money Market, Alliance Intermediate Government Securities, Alliance
Quality Bond, Alliance High Yield, Alliance Growth and Income and Alliance
Equity Index Funds were established in 1994. The Alliance International Fund was
established in 1995. The Alliance Small Cap Growth Fund was established in 1997.
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The Mercury Basic Value Equity, Mercury World Strategy, MFS Emerging Growth
Companies, MFS Research, Morgan Stanley Emerging Markets Equity, EQ/Putnam
Balanced, EQ/Putnam Growth & Income Value, T. Rowe Price Equity Income, T. Rowe
Price International Stock, and Warburg Pincus Small Company Value Funds were
established in 1998. The EQ/Alliance Premier Growth, Calvert Socially
Responsible, Capital Guardian International, Capital Guardian Research, Capital
Guardian U.S. Equity, EQ/Evergreen, EQ/Evergreen Foundation, Lazard Large Cap
Value, Lazard Small Cap Value, MFS Growth with Income, EQ/Putnam International
Equity, and EQ/Putnam Investors Growth Funds were established in 1999. Because
of exclusionary provisions, none of the Funds are subject to regulation under
the Investment Company Act of 1940 ("1940 Act"). EQ Advisors Trust shares are
purchased by Separate Accounts Nos. 51 and 66.
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 of 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 in which the Funds of Separate Account
No. 51 invest, 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 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, its investment objectives,
policies, restrictions, risks, expenses, multiple class distribution systems,
the Rule 12b-1 plan relating to the Class IB shares, and other aspects of its
operations, appear in the prospectus for EQ Advisors Trust attached at the end
of this prospectus, or in its SAI, which is available upon request.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest account, 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. We have been
advised that the staff of the SEC has not reviewed the portions of this
prospectus that relate to the general account. The disclosure, however, may be
subject to certain provisions of the federal securities laws relating to the
accuracy and completeness of statements made in prospectuses.
WHEN WE PAY PROCEEDS
Ordinarily we will apply proceeds to an annuity and make payments or withdrawals
out of the investment options promptly after the date of the transaction.
However, we can defer payments, apply proceeds to an annuity and process
withdrawals from the Funds for any period during which the New York Stock
Exchange is closed for trading, sales of securities are restricted or
determination of the fair market value of assets of the Funds is not reasonably
practicable because of an emergency. We may also defer withdrawals
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from the plan in installments in order to protect the interests of the other
contract holder in a Fund.
WHEN TRANSACTION REQUESTS ARE EFFECTIVE
Transaction requests may be made by the authorized person for the employer plan
as shown on our records, in written or facsimile form acceptable to us and
signed by the employer. All requests will be effective on the business day we
receive a properly completed and signed written or facsimile request for a
financial transaction at the RIA service office. Transaction requests received
after the end of a business day will be processed the next business day.
We will honor your properly completed transaction requests received via
facsimile only if we receive a properly completed transaction form. The request
form must be signed by an individual who the plan trustees have previously
authorized in writing. We are not responsible for determining the accuracy of a
transmission and are not liable for any consequences, including but not limited
to, investment losses and lost investment gains, resulting from a faulty or
incomplete transmission. If your request form is not properly completed, we will
contact you within 24 hours of our receipt of your facsimile.
We will use our best efforts to acknowledge receipt of a facsimile transmission,
but our failure to acknowledge or a failure in your receipt of such
acknowledgment will not invalidate your transaction request. If you do not
receive acknowledgment of your facsimile within 24 hours, contact the RIA
service office at the toll free 800 number.
VOTING RIGHTS
No voting rights apply to any of the separate accounts or to the guaranteed
interest account. We do, however, have the right to vote shares of EQ Advisors
Trust held by the Funds.
If EQ Advisors Trust holds a meeting of shareholders, we will vote shares of the
portfolios of EQ Advisors Trust allocated to the corresponding Funds in
accordance with instructions received from employers, participants or trustees,
as the case may be. Shares will be voted in proportion to the voter's interest
in the Funds holding the shares as of the record date for the shareholders
meeting. We will vote the shares for which no instructions have been received in
the same proportion as we vote shares for which we have received instructions.
Employers, participants or trustees will receive: (1) periodic reports relating
to EQ Advisors Trust and (2) proxy materials, together with a voting instruction
form, in connection with shareholder meetings.
Currently, we control EQ Advisors Trust. EQ Advisors Trust shares are sold to
our separate accounts and an affiliated qualified plan trust. In addition, EQ
Advisors Trust shares 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.
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 the separate accounts, our ability to meet our obligations under RIA, or
the distribution of group annuity contract interests under RIA.
ABOUT OUR INDEPENDENT ACCOUNTANTS
The financial statements listed below and included in the SAI as well as the
condensed financial information included in the prospectus have been so included
in reliance on the report of PricewaterhouseCoopers LLP independent accountants
given on the authority of said firm as experts in auditing and accounting.
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o The financial statements for Separate Account Nos. 13,10, 4, 3, 51 and 66 as
of December 31, 1999 and for each of the two years in the period then ended.
o The financial statements for Equitable Life as of December 31, 1999 and 1998
and for each of the three years in the period ended December 31, 1999.
o The condensed financial information for Separate Accounts Nos. 13, 10, 4, 3,
51 and 66 for each of the years in the period ended December 31, 1999.
ABOUT THE TRUSTEE
As trustee, Chase Manhattan Bank serves as a party to the group annuity
contracts. It has no responsibility for the administration of RIA or for any
distributions or duties under the group annuity contracts.
REPORTS WE PROVIDE AND AVAILABLE INFORMATION
We send the employer a report each quarter that shows transactions in the
investment options during the quarter for the employer plan, the number of units
in the Funds credited to the employer plan, the unit values and the balances in
all of the investment options as of the end of the quarter. The employer
automatically receives a confirmation notice following the processing of a
financial investment option transaction.
The employer will also receive an annual report and a semiannual report
containing financial statements of the Funds and a list of the Funds' or Trust's
portfolio securities. As permitted by the SEC's rules, we omitted certain
portions of the registration statement filed with the SEC from this prospectus
and the SAI. You may obtain the omitted information by: (1) requesting a copy of
the registration statement from the SEC's principal office in Washington, D.C.,
and paying prescribed fees, or (2) by accessing the EDGAR Database at the SEC's
Web site at www.sec.gov.
ACCEPTANCE AND RESPONSIBILITIES
The employer or plan sponsor, as the case may be: (1) is solely responsible for
determining whether RIA is a suitable funding vehicle and (2) should carefully
read the prospectus and other materials before entering into a participation or
installation agreement.
Our duties and responsibilities are limited to those described in this
prospectus. Except as explicitly set forth in the PRS program, we do not provide
administrative services in connection with an employer plan. In addition, no
financial professional or firm operated by a financial professional is
authorized to solicit or agree to perform plan administrative services in his
capacity as a financial professional. If an employer or trustee engages a
financial professional to provide administrative support services to an employer
plan, the employer or trustee engages that financial professional as its
representative rather than Equitable Life's. WE ARE NOT LIABLE TO ANY EMPLOYER,
TRUSTEE OR EMPLOYER PLAN FOR ANY DAMAGES ARISING FROM OR IN CONNECTION WITH ANY
PLAN ADMINISTRATION SERVICES PERFORMED OR AGREED TO BE PERFORMED BY A FINANCIAL
PROFESSIONAL.
ABOUT REGISTERED UNITS
This prospectus relates to our offering of units of interest in the Funds that
are registered under the 1933 Act. Financial data and other information
contained in this prospectus may refer to such "registered units," as offered in
the RIA program. We also offer units under RIA to retirement plans maintained by
corporations or governmental entities (collectively, "corporate plans").
However, because of an exemption under the 1933 Act, these corporate plan units
are not registered under the 1933 Act or covered by this prospectus.
ASSIGNMENT AND CREDITORS' CLAIMS
Employers and plan participants cannot assign, sell, alienate, discount or
pledge as collateral for a loan or other obligation to any party the employer
plan balances and rights under RIA, except to the extent allowed by law for a
Qualified
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Domestic Relations Order ("QDRO"), as that term is defined in the Code. (This
reference to a loan does not apply to a loan under RIA.) Proceeds we pay under
our contracts cannot be assigned or encumbered by the payee. We will pay all
proceeds under our contracts free from the claims of creditors to the extent
allowed by law.
COMMISSIONS AND SERVICE FEES WE PAY
Financial professionals who assist in establishing an employer plan in RIA and
providing necessary services (not including recordkeeping services) are entitled
to receive commissions and service fees from us. We pay these commissions and
fees, and they are not in addition to the fees and charges we describe under
"Charges and expenses." Any service fees we pay to financial professionals are
contingent upon their providing service satisfactory to us. While the charges
and expenses that we receive from a RIA employer plan initially may be less than
the commissions and service fees we pay to financial professionals, we expect
that over time those charges and expenses we collect will be adequate to cover
all of our expenses.
CERTAIN RETIREMENT PLANS THAT USE RIA MAY ALLOW EMPLOYER PLAN ASSETS TO BE USED
IN PART TO BUY LIFE INSURANCE POLICIES RATHER THAN APPLYING ALL OF THE
CONTRIBUTIONS TO RIA. Financial professionals will receive commissions on any
such Equitable Life insurance policies at standard rates. These commissions are
subject to regulation by state law and are at rates higher than those applicable
to commissions payable for placing an employer plan under RIA.
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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 contract.
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.
Equitable Life is registered with the SEC as a broker-dealer under the
Securities Exchange Act of 1934. We are also a member of the National
Association of Securities Dealers, Inc. ("NASD"). We offer RIA through financial
professionals of AXA Advisors who are licensed by state insurance officials and,
where necessary, qualified by the NASD.
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HOW TO REACH US
You can reach us as indicated below to obtain:
o Participation agreements, or enrollment or other forms used in RIA
o Unit values and other values under your plan
o Any other information or materials that we provide in connection with RIA
INFORMATION ON JOINING RIA
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BY PHONE:
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1-800-967-4560
or
(201) 583-2302
(9 AM to 5 PM Eastern time)
Fax: (201) 583-2304, 2305, or 2306
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BY REGULAR MAIL:
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RIA Service Office
c/o Equitable Life
200 Plaza Drive, lst floor
Secaucus, NJ 07094
- ----------------------------------------
BY REGISTERED, CERTIFIED, OR OVERNIGHT
DELIVERY:
- ----------------------------------------
RIA service office
c/o Equitable Life
200 Plaza Drive, 1st floor
Secaucus, NJ 07094
INFORMATION ONCE YOU JOIN RIA
- ----------------------------------------
BY REGULAR MAIL:
(CORRESPONDENCE):
- ----------------------------------------
Equitable Life
200 Plaza Drive, 1st floor
Secaucus, NJ 07094
- ----------------------------------------
FOR CONTRIBUTION CHECKS ONLY:
- ----------------------------------------
Equitable Life
RIA/EPP
P.O. Box 13503
Newark, NJ 07188
- ----------------------------------------
FOR OVERNIGHT DELIVERY FOR
CONTRIBUTION CHECKS ONLY:
- ----------------------------------------
Bank One, N.A.
Processing Center
300 Harmon Meadow Boulevard
Secaucus, NJ 07094
BY PHONE: 1-800-967-4560 (service consultants are available weekdays 9 a.m. to 5
p.m. Eastern time).
To obtain pre-recorded Fund unit values, call 1-800-967-4560.
NO PERSON IS AUTHORIZED BY EQUITABLE LIFE TO GIVE ANY INFORMATION OR MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND THE SAI, OR IN
OTHER PRINTED OR WRITTEN MATERIAL ISSUED BY EQUITABLE LIFE. YOU SHOULD NOT RELY
ON ANY OTHER INFORMATION OR REPRESENTATION.
<PAGE>
Appendix: Condensed financial information
- -------
A-1
- --------------------------------------------------------------------------------
These selected per unit data and ratios for the years ended December 31, 1999
through 1993 have been audited by PricewaterhouseCoopers LLP, independent
accountants, as stated in their reports included in the SAI. For years prior to
1993, the condensed financial information was audited by other independent
accountants. The financial statements of each of the Funds as well as the
consolidated financial statements of Equitable Life are contained in the SAI.
Information is provided for the period that each Fund has been available under
RIA, but not longer than ten years.
SEPARATE ACCOUNT NO. 13 - POOLED (ALLIANCE BOND FUND) OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIOD INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE F)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, MAY 1, 1992-
- -------------------------------------------------------------------------------------------------------------- DECEMBER 31,
1999 1998 1997 1996 1995 1994 1993 1992
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Income $ 3.27 $ 3.25 $ 3.29 $ 3.09 $ 3.07 $ 2.32 $ 2.18 $ 0.59
Expenses (Note B) (0.28) (0.28) (0.25) (0.25) (0.23) (0.12) - -
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income 2.99 2.97 3.04 2.84 2.84 2.20 2.18 0.59
Net realized and unrealized gain
(loss) on investments (Note C) (3.20) 1.35 0.79 (1.49) 3.72 (2.99) 1.65 2.37
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in unit
value (0.21) 4.32 3.83 1.35 6.56 (0.79) 3.83 2.96
Alliance Bond Fund unit value
(Note A):
Beginning of Period 58.41 54.09 50.26 48.91 42.35 43.14 39.31 36.35
- -----------------------------------------------------------------------------------------------------------------------------
End of Period $ 58.20 $ 58.41 $ 54.09 $ 50.26 $ 48.91 $ 42.35 $ 43.14 $ 39.31
=============================================================================================================================
Ratio of expenses to average net
assets (Note B) 0.50% 0.50% 0.50% 0.50% 0.50% 0.36% N/A N/A
Ratio of net investment income
to average net assets 5.13% 5.26% 5.89% 5.81% 6.17% 5.12% 5.17% 6.00%
Number of units outstanding at (Note D)
end of period 264 3,003 2,021 2,698 2,392 1,632 545 288
Portfolio turnover rate
(Note E) 88% 133% 188% 137% 288% 264% 254% 151%
=============================================================================================================================
</TABLE>
See Notes following tables.
<PAGE>
- -------
A-2
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 10 - POOLED (ALLIANCE BALANCED FUND) OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE F)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
- -----------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> C> <C> <C> <C> <C> <C>
Income $ 5.05 $ 4.80 $ 4.41 $ 3.60 $ 3.18 $ 2.63 $ 2.67 $ 2.69 $ 2.63 $ 3.08
Expenses (Note B) (0.76) (0.66) (0.56) (0.50) (0.43) (0.23) - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment
income 4.29 4.14 3.85 3.10 2.75 2.40 2.67 2.69 2.63 3.08
Net realized and
unrealized gain
(loss) on
investments
(Note C) 17.51 19.07 10.33 7.66 13.34 (9.48) 7.28 (4.51) 20.34 (3.17)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
unit value 21.80 23.21 14.18 10.76 16.09 (7.08) 9.95 (1.82) 22.97 (0.09)
Alliance Balanced
Fund unit value
(Note A):
Beginning of Period 143.01 119.80 105.62 94.86 78.77 85.85 75.90 77.72 54.75 54.84
- -----------------------------------------------------------------------------------------------------------------------------------
End of Period $ 164.81 $ 143.01 $ 119.80 $ 105.62 $ 94.86 $ 78.77 $ 85.85 $ 75.90 $ 77.72 $ 54.75
===================================================================================================================================
Ratio of expenses
to average net
assets (Note B) 0.50% 0.50% 0.50% 0.50% 0.50% 0.30% N/A N/A N/A N/A
Ratio of net
investment
income to
average net
assets 2.88% 3.19% 3.42% 3.13% 3.19% 2.94% 3.31% 3.68% 4.15% 5.78%
Number of units
outstanding at
end of period 11,870 29,340 38,304 52,080 73,979 86,914 87,242 81,860 80,964 86,377
Portfolio turnover
rate (Note E) 95% 89% 165% 177% 170% 107% 102% 90% 114% 199%
===================================================================================================================================
</TABLE>
See Notes following tables.
<PAGE>
- -------
A-3
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 4 - POOLED (ALLIANCE COMMON STOCK FUND) OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE F)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -----------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Income $ 4.02 $ 3.57 $ 3.39 $ 2.99 $ 3.98 $ 3.83 $ 3.69 $ 3.13 $ 2.74 $ 3.82
Expenses (Note B) (3.74) (3.38) (3.11) (2.51) (2.03) (1.00) - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment
income 0.28 0.19 0.28 0.48 1.95 2.83 3.69 3.13 2.74 3.82
Net realized and
unrealized gain
(loss) on
investments
(Note C) 233.22 (18.53) 144.74 80.65 108.54 (8.98) 56.16 1.86 96.86 (26.92)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
unit value 233.50 (18.34) 145.02 81.13 110.49 (6.15) 59.85 4.99 99.60 (23.10)
Alliance Common
Stock Fund unit
value (Note A):
Beginning of Period 665.22 683.56 538.54 457.41 346.92 353.07 293.22 288.23 188.63 211.73
- -----------------------------------------------------------------------------------------------------------------------------------
End of Period $ 898.72 $ 665.22 $ 683.56 $ 538.54 $ 457.41 $ 346.92 $ 353.07 $ 293.22 $ 288.23 $ 188.63
===================================================================================================================================
Ratio of expenses
to average net
assets
(Note B) 0.50% 0.50% 0.50% 0.50% 0.50% 0.30% N/A N/A N/A N/A
Ratio of net
investment
income to
average net
assets 0.04% 0.03% 0.05% 0.10% 0.49% 0.81% 1.17% 1.13% 1.14% 2.02%
Number of units
outstanding at
end of period 10,056 17,216 21,142 24,332 25,937 27,438 24,924 23,331 20,799 18,286
Portfolio turnover
rate (Note E) 72% 71% 62% 105% 108% 91% 82% 68% 66% 93%
===================================================================================================================================
</TABLE>
See Notes following tables.
<PAGE>
- -------
A-4
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 3 - POOLED (ALLIANCE AGGRESSIVE STOCK FUND) OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE
PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE F)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- ----------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Income $ 1.61 $ 1.42 $ 1.08 $ 1.33 $ 0.98 $ 0.71 $ 1.01 $ 1.21 $ 1.06 $ 1.03
Expenses (Note B) (1.06) (1.13) (1.13) (0.98) (0.75) (0.37) - - - -
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment
income (loss) 0.55 0.29 (0.05) 0.35 0.23 0.34 1.01 1.21 1.06 1.03
Net realized and
unrealized gain
(loss) on
investments
(Note C) 34.80 (31.58) 25.34 38.04 40.49 (5.81) 17.43 (4.23) 55.15 4.45
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
unit value 35.35 (31.29) 25.29 38.39 40.72 (5.47) 18.44 (3.02) 56.21 5.48
Alliance Aggressive
Stock Fund unit
value (Note A):
Beginning of Period 203.06 234.35 209.06 170.67 129.95 135.42 116.98 120.00 63.79 58.31
- ----------------------------------------------------------------------------------------------------------------------------------
End of Period $ 238.41 $ 203.06 $ 234.35 $ 209.06 $ 170.67 $ 129.95 $ 135.42 $ 116.98 $ 120.00 $ 63.79
==================================================================================================================================
Ratio of expenses
to average net
assets
(Note B) 0.50% 0.50% 0.50% 0.50% 0.50% 0.30% N/A N/A N/A N/A
Ratio of net
investment
income (loss) to
average net
assets 0.27% 0.13% ( 0.02)% 0.18% 0.15% 0.25% 0.82% 1.09% 1.11% 1.72%
Number of units
outstanding at
end of period 10,300 21,322 27,762 26,777 26,043 26,964 23,440 21,917 14,830 8,882
Portfolio turnover
rate
(Note E) 108% 195% 176% 118% 137% 94% 83% 71% 63% 48%
==================================================================================================================================
</TABLE>
See Notes following tables.
<PAGE>
- -------
A-5
- --------------------------------------------------------------------------------
Notes:
A. The values for a registered Alliance Bond Fund, Alliance Balanced Fund,
Alliance Common Stock Fund and Alliance Aggressive Stock Fund unit on May 1,
1992, January 23, 1985, April 8, 1985 and July 7, 1986, the first date on
which payments were allocated to purchase registered units in each Fund, were
$36.35, $28.07, $84.15 and $44.82, respectively.
B. Certain expenses under RIA are borne directly by employer plans participating
in RIA. Accordingly, those charges and fees discussed under "Charges and
expenses" are not included above and did not affect the Fund unit values.
Those charges and fees are recovered by Equitable Life through an appropriate
reduction in the number of units credited to each employer plan participating
in the Fund unless the charges and fees are billed directly to and paid by
the employer. The dollar amount recovered is included in the expenses in the
Statement of Operations for each Fund, which appear in the Financial
Statements in the SAI.
As of June 1, 1994, the annual investment management and financial accounting
fee is deducted from the assets of the Alliance Bond, Alliance Balanced,
Alliance Common Stock and Alliance Aggressive Stock Funds and is reflected in
the computation of their unit values. If all charges and fees had been made
directly against employer plan assets in the Funds and had been reflected in
the computation of Fund unit value, RIA registered unit expenses would have
amounted to $0.66, $2.33, $11.48 and $3.33 for the year ended December 31,
1999 on a per unit basis for the Alliance Bond, Alliance Balanced, Alliance
Common Stock and Alliance Aggressive Stock Funds, respectively. For the same
reporting periods, the ratio of expenses to average net assets attributable
to registered units would have been (on an annualized basis) 1.14%, 1.57%,
1.54% and 1.59% for the Alliance Bond, Alliance Balanced, Alliance Common
Stock and Alliance Aggressive Stock Funds, respectively.
C. See Note 2 to Financial Statements of Separate Account Nos. 13 (Pooled), 10
(Pooled), 4 (Pooled), 3 (Pooled) and 51 which appear in the SAI.
D. Annualized basis.
E. The portfolio turnover rate excludes all short-term U.S. Government
securities and all other securities whose maturities at the time of
acquisition were one year or less. The rate stated is the annual turnover
rate for the entire Separate Account Nos. 13 - Pooled, 10 - Pooled, 4 -
Pooled and 3 - Pooled.
F. Income, expenses, gains and losses shown above pertain only to employer
plans' accumulations attributable to RIA registered units. Other plans and
trusts also participate in Separate Account Nos. 13 - Pooled, 10 - Pooled, 4
- Pooled and 3 - Pooled and may have operating results and other
supplementary data different from those shown above.
<PAGE>
- -------
A-6
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 51 (POOLED) UNIT VALUES AND NUMBER OF REGISTERED UNITS
OUTSTANDING
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
ALLIANCE
CONSER- ALLIANCE ALLIANCE ALLIANCE
VATIVE EQUITY ALLIANCE GROWTH GROWTH
INVESTORS INDEX GLOBAL AND INCOME INVESTORS
FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Unit value as of:
December 31, 1994 $ 99.83 $ 101.71 $ 99.84 $ 99.81 $ 99.52
Number of units
outstanding at
December 31, 1994 0 10 2,468 192 981
Unit value as of
December 31, 1995 $ 120.14 $ 138.75 $ 118.56 $ 123.78 $ 125.70
Number of units
outstanding at
December 31, 1995 236 641 6,314 1,323 4,502
Unit value as of
December 31, 1996 $ 126.33 $ 169.72 $ 135.81 $ 148.57 $ 141.48
Number of units
outstanding at
December 31, 1996 368 3,856 9,383 2,078 7,135
Unit value as of
December 31, 1997 $ 142.97 $ 224.89 $ 151.41 $ 188.22 $ 165.12
Number of units
outstanding at
December 31, 1997 689 7,176 9,726 6,083 8,419
Unit value as of
December 31, 1998 $ 162.74 $ 287.87 $ 184.33 $ 227.38 $ 196.61
Number of units
outstanding at
December 31, 1998 759 11,983 7,382 6,500 7,458
Unit value as of
December 31, 1999 $ 179.16 $ 346.38 $ 255.21 $ 269.68 $ 248.75
Number of units
outstanding at
December 31, 1999 828 12,855 3,655 6,182 4,812
- ----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
ALLIANCE ALLIANCE ALLIANCE ALLIANCE ALLIANCE
HIGH INTER. GOVT. MONEY QUALITY SMALL CAP
YIELD SECURITIES ALLIANCE MARKET BOND GROWTH
FUND FUND INT'L FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value as of:
December 31, 1994 $ 98.99 $ 98.94 - $ 102.65 $ 99.83 -
Number of units
outstanding at
December 31, 1994 0 0 - 28 0 -
Unit value as of
December 31, 1995 $ 118.64 $ 112.07 $ 104.60 $ 108.49 $ 116.76 -
Number of units
outstanding at
December 31, 1995 40 248 0 1,374 52 -
Unit value as of
December 31, 1996 $ 145.72 $ 116.24 $ 114.80 $ 114.22 $ 122.96 -
Number of units
outstanding at
December 31, 1996 69 593 853 1,397 0 -
Unit value as of
December 31, 1997 $ 172.55 $ 124.66 $ 111.24 $ 120.35 $ 134.14 $ 114.18
Number of units
outstanding at
December 31, 1997 1,414 783 1,531 1,351 270 2,235
Unit value as of
December 31, 1998 $ 163.58 $ 134.24 $ 122.93 $ 126.71 $ 145.72 $ 109.25
Number of units
outstanding at
December 31, 1998 259 1,110 1,659 1,249 1,038 1,625
Unit value as of
December 31, 1999 $ 158.02 $ 134.36 $ 169.30 $ 132.95 $ 142.73 $ 139.67
Number of units
outstanding at
December 31, 1999 187 1,419 1,302 601 4,298 1,064
- --------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- -------
A-7
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED) UNIT VALUES AND NUMBER OF REGISTERED UNITS
OUTSTANDING
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
MORGAN
MERCURY MFS STANLEY
BASIC MERCURY EMERGING EMERGING
VALUE WORLD GROWTH MFS MARKETS
EQUITY STRATEGY COMPANIES RESEARCH EQUITY
FUND FUND FUND FUND FUND
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Unit value as of:
December 31, 1998 $ 107.43 $ 109.65 $ 123.19 $ 117.92 $ 111.23
Number of units
outstanding at
December 31, 1998 0 0 30 0 0
Unit value as of
December 31, 1999 $ 127.77 $ 133.06 $ 213.94 $ 145.18 $ 217.72
Number of units
outstanding at
December 31, 1999 164 2 3,035 62 197
- -------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
WARBURG
EQ/PUTNAM PINCUS
GROWTH & T. ROWE T. ROWE SMALL
EQ/PUTNAM INCOME PRICE EQUITY PRICE COMPANY
BALANCED VALUE INCOME INT'L STOCK VALUE
FUND FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Unit value as of:
December 31, 1998 $ 107.77 $ 113.78 $ 108.89 $ 114.42 $ 105.06
Number of units
outstanding at
December 31, 1998 0 0 48 0 0
Unit value as of
December 31, 1999 $ 107.81 $ 112.24 $ 112.76 $ 150.88 $ 106.96
Number of units
outstanding at
December 31, 1999 1 50 9 105 32
- -----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE CALVERT CAPITAL CAPITAL CAPITAL
PREMIER SOCIALLY GUARDIAN GUARDIAN GUARDIAN
GROWTH RESPONSIBLE INTERNATIONAL RESEARCH U.S. EQUITY EQ/EVERGREEN
FUND FUND FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value as of
December 31, 1999 $ 113.69 $ 106.58 $ 128.61 $ 105.35 $ 101.11 $ 105.75
Number of units
outstanding at
December 31, 1999 94 0 0 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
LAZARD LAZARD MFS EQ/PUTNAM EQ/PUTNAM
EQ/EVERGREEN LARGE CAP SMALL CAP GROWTH WITH INTERNATIONAL INVESTORS
FOUNDATION VALUE VALUE INCOME EQUITY GROWTH
FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value as of
December 31, 1999 $ 106.05 $ 97.35 $ 97.39 $ 104.35 $ 136.14 $ 120.77
Number of units
outstanding at
December 31, 1999 0 0 0 0 26 0
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
Fund Information 2
General 2
Restrictions and requirements of the Alliance Bond, Alliance Balanced, Alliance Common
Stock and Alliance Aggressive Stock Funds 2
Certain investments of the Alliance Bond and Alliance Balanced Funds 3
How we determine the unit value 5
Alliance Money Market Yield information 7
Brokerage fees and charges for securities transactions 8
Additional information about RIA 9
Loan provisions 9
Annuity benefits 10
Amount of fixed-annuity payments 11
Ongoing operations fee 11
Management for the Alliance Bond, Alliance Balanced, Alliance Common Stock and
Alliance Aggressive Stock Funds and Equitable Life 12
Funds 12
Distribution 12
Equitable Life 13
Directors 13
Officer-Directors 14
Other Officers 14
Financial statements index 15
Financial statements FSA-1
</TABLE>
SEND OR FAX THIS REQUEST FORM TO RECEIVE A STATEMENT OF ADDITIONAL INFORMATION
To: The Equitable Life Assurance Society of the United States--
RIA service office
200 Plaza Drive-1st Floor
Secaucus, NJ 07094-3689
Fax: (201) 583-2304, 2305, or 2306
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me a copy of the Statement of Additional Information for the RIA
prospectus dated May 1, 2000.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
Client number:
------------------------------------------------------------------
(SAI (5/00))
<PAGE>
Retirement Investment Account(R)
STATEMENT OF ADDITIONAL INFORMATION DATED
MAY 1, 2000
- --------------------------------------------------------------------------------
This statement of additional information ("SAI") is not a prospectus. It should
be read in conjunction with the prospectus for our Retirement Investment Account
("RIA"), dated May 1, 2000 ("prospectus"), and any supplements.
Terms defined in the prospectus have the same meaning in the SAI unless the
context otherwise requires.
You can obtain a copy of the prospectus, and any supplements to the prospectus,
from us free of charge by writing or calling the RIA service office listed on
the back of this SAI, or by contacting your financial professional. Our home
office is located at 1290 Avenue of the Americas, New York, N.Y. 10104 (212)
554-1234.
TABLE OF CONTENTS
FUND INFORMATION 2
General 2
Restrictions and requirements of the Alliance Bond
(Separate Account No. 13), Alliance Balanced
(Separate Account No. 10), Alliance Common Stock
(Separate Account No. 4) and Alliance Aggressive
Stock (Separate Account No. 3) Funds 2
Certain investments of the Alliance Bond and Alliance
Balanced Funds 3
How we determine the unit value 5
Alliance Money Market yield information 7
Brokerage fees and charges for securities transactions 8
ADDITIONAL INFORMATION ABOUT RIA 9
Loan provisions 9
Annuity benefits 10
Amount of fixed-annuity payments 11
Ongoing operations fee 11
MANAGEMENT FOR THE ALLIANCE BOND, ALLIANCE
BALANCED, ALLIANCE COMMON STOCK AND
ALLIANCE AGGRESSIVE STOCK FUNDS AND
EQUITABLE LIFE 12
Funds 12
Distribution 12
Equitable Life 13
Directors 13
Officer-Directors 14
Other Officers 14
FINANCIAL STATEMENTS INDEX 15
Financial statements FSA-1
Copyright 2000 The Equitable Life Assurance Society of the United States
All rights reserved. Retirement Investment Account is a registered service mark
of the Equitable Life Assurance Society of the United States.
888-1236
<PAGE>
2
- --------------------------------------------------------------------------------
FUND INFORMATION
General
In our prospectus we discuss in more detail, among other things, the structure
of the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance
Aggressive Stock Funds, their investment objectives and policies, including the
types of portfolio securities that they may hold and levels of investment risks
that may be involved and investment management. We also summarize certain of
these matters with respect to the Investment Funds and their corresponding
portfolios. See "Investment options."
Here we will discuss special restrictions, requirements and transaction expenses
that apply to the Alliance Bond, Alliance Balanced, Alliance Common Stock and
Alliance Aggressive Stock Funds, certain investments of the Alliance Bond Fund
and determination of the value of units for all Funds, including some historical
information. You can find information about the investment objectives and
policies, as well as restrictions, requirements and risks pertaining to the
corresponding EQ Advisors Trust portfolio in which the Investment Funds invest
in the prospectus and SAI for EQ Advisors Trust.
RESTRICTIONS AND REQUIREMENTS OF THE ALLIANCE
BOND, ALLIANCE BALANCED, ALLIANCE COMMON
STOCK AND ALLIANCE AGGRESSIVE STOCK FUNDS
Neither the Alliance Common Stock Fund nor the Alliance Balanced Fund will make
an investment in an industry if that investment would cause the Fund's holding
in that industry to exceed 25% of the Fund's assets.
The Alliance Bond Fund, Alliance Common Stock Fund and Alliance Aggressive Stock
Funds will not purchase or write puts or calls (options). The Alliance Balanced
Fund's investment policies do not prohibit hedging transactions such as through
the use of put and call options and stock index or interest rate futures.
However, the Alliance Balanced Fund currently has no plans to enter into such
transactions.
The following investment restrictions apply to the Alliance Bond, Alliance
Balanced, Alliance Common Stock and Alliance Aggressive Stock Funds. None of
those Funds will:
o trade in foreign exchange (except transactions incidental to the settlement
of purchases or sales of securities for a Fund and contracts for the purchase
or sale of a specific foreign currency at a future date at a price set at the
time of the contract);
o make an investment in order to exercise control or management over a company;
o underwrite the securities of other companies, including purchasing securities
that are restricted under the 1933 Act or rules or regulations thereunder
(restricted securities cannot be sold publicly until they are registered
under the 1933 Act), except as stated below;
o trade in commodities or commodity contracts (except the Alliance Balanced
Fund is not prohibited from entering into hedging transactions through the
use of stock index or interest rate futures);
o purchase real estate or mortgages, except as stated below. The Funds may buy
shares of real estate investment trusts listed on stock exchanges or reported
on the NASDAQ;
o have more than 5% of its assets invested in the securities of any one
registered investment company. A Fund may not own more than 3% of a
registered investment company's outstanding voting securities. The Fund's
total holdings of registered investment company securities may not exceed 10%
of the value of the Fund's assets;
o purchase any security on margin or borrow money except for short-term credits
necessary for clearance of securities transactions;
o make loans, except loans through the purchase of debt obligations or through
entry into repurchase agreements; or
<PAGE>
3
- --------------------------------------------------------------------------------
o invest more than 10% of its total assets in restricted securities, real
estate investments, or portfolio securities not readily marketable.
CERTAIN INVESTMENTS OF THE ALLIANCE BOND AND ALLIANCE BALANCED FUNDS
The following are brief descriptions of certain types of investments which may
be made by the Alliance Bond and Alliance Balanced Funds and certain risks and
investment techniques.
MORTGAGE PASS-THROUGH SECURITIES. The Alliance Bond and Alliance Balanced Funds
may invest in mortgage pass-through securities, which are securities
representing interests in pools of mortgages. Principal and interest payments
made on the mortgages in the pools are passed through to the holder of such
securities. Payment of principal and interest on some mortgage pass-through
securities (but not the market value of the securities themselves) may be
guaranteed by the full faith and credit of the U.S. Government (in the case of
securities guaranteed by the Government National Mortgage Association, or
"GNMA"), or guaranteed by agencies or instrumentalities of the U.S. Government
(in the case of securities guaranteed by the Federal National Mortgage
Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC"),
which are supported only by discretionary authority of the U.S. Government to
purchase the agency's obligations). Mortgage pass-through securities created by
non-governmental issuers (such as commercial banks, savings and loan
institutions, private mortgage insurance companies, mortgage bankers, and other
secondary market issuers) may be supported by various forms of insurance or
guarantees, including individual loan, title, pool, and hazard insurance, and
letters of credit, which may be issued by governmental entities, private
insurers or the mortgage poolers.
COLLATERALIZED MORTGAGE OBLIGATIONS. The Alliance Bond and Alliance Balanced
Funds may invest in collateralized mortgage obligations ("CMOs"). CMOs are debt
securities collateralized by underlying mortgage loans or pools of mortgage
pass-through securities guaranteed by GNMA, FHLMC or FNMA and are generally
issued by limited purpose finance subsidiaries of U.S. Government
instrumentalities. CMOs are not, however, mortgage pass-through securities.
Rather, they are pay-through securities, i.e., securities backed by the cash
flow from the underlying mortgages. Investors in CMOs are not owners of the
underlying mortgages, which serve as collateral for such debt securities, but
are simply owners of a debt security backed by such pledged assets. CMOs are
typically structured into multiple classes, with each class bearing a different
stated maturity and having different payment streams. Monthly payments of
principal, including prepayments, are first returned to investors holding the
shortest maturity class; investors holding longer maturity classes receive
principal payments only after the shorter class or classes have been retired.
ASSET-BACKED SECURITIES. The Alliance Bond and Alliance Balanced Funds may
purchase asset-backed securities that represent either fractional interests or
participation in pools of leases, retail installment loans or revolving credit
receivables held by a trust or limited purpose finance subsidiary. Such
asset-backed securities may be secured by the underlying assets (such as
Certificates for Automobile Receivables) or may be unsecured (such as Credit
Card Receivable Securities). Depending on the structure of the asset-backed
security, monthly or quarterly payments of principal and interest or interest
only are passed through like mortgage pass-through securities or paid through
(like CMOs) to certificate holders. Asset-backed securities may be guaranteed up
to certain amounts by guarantees, insurance or letters of credit issued by a
financial institution affiliated or unaffiliated with the originator of the
pool.
Underlying automobile sales contracts and credit card receivables are, of
course, subject to prepayment (although to a lesser degree than mortgage
pass-through securities), which may shorten the securities' weighted average
life and reduce their overall return to certificate holders. Certificate holders
may also experience delays in payment if the full amounts due on underlying
loans, leases or receivables are not realized because of unanticipated legal or
administrative costs of enforcing the contracts or because of depreciation or
damage to the collateral (usually automobiles) securing certain contracts, or
other factors. The value of these securities also
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may change because of changes in the market's perception of the creditworthiness
of the servicing agent for the pool, the originator of the pool, or the
financial institution providing credit support enhancement for the pool. If
consistent with its investment objective and policies, the Alliance Bond and
Alliance Balanced Funds may invest in other asset-backed securities that may be
developed in the future.
ZERO COUPON BONDS. The Alliance Bond and Alliance Balanced Funds may invest in
zero coupon bonds. Such bonds may be issued directly by agencies and
instrumentalities of the U.S. Government or by private corporations. Zero coupon
bonds may originate as such or may be created by stripping an outstanding bond.
Zero coupon bonds do not make regular interest payments. Instead, they are sold
at a deep discount from their face value. Because a zero coupon bond does not
pay current income, its price can be very volatile when interest rates change.
REPURCHASE AGREEMENTS. In repurchase agreements, the Alliance Bond or Alliance
Balanced Fund buys securities from a seller, usually a bank or brokerage firm,
with the understanding that the seller will repurchase the securities at a
higher price at a future date. During the term of the repurchase agreement the
Fund retains the securities subject to the repurchase agreement as collateral
securing the seller's repurchase obligation, continually monitors on a daily
basis the market value of the securities subject to the agreement and requires
the seller to deposit with the Fund collateral equal to any amount by which the
market value of the securities subject to the repurchase agreement falls below
the resale amount provided under the repurchase agreement. We evaluate the
creditworthiness of sellers with whom we enter into repurchase agreements. Such
transactions afford an opportunity for the Fund to earn a fixed rate of return
on available cash at minimal market risk, although the Fund may be subject to
various delays and risks of loss if the seller is unable to meet its obligation
to repurchase. The Funds currently treat repurchase agreements maturing in more
than seven days as illiquid securities.
DEBT SECURITIES SUBJECT TO PREPAYMENT RISKS. Mortgage pass-through securities
and certain collateralized mortgage obligations, asset-backed securities and
other debt instruments in which the Alliance Balanced Fund may invest are
subject to prepayments prior to their stated maturity. The Fund usually is
unable to accurately predict the rate at which prepayments will be made, which
rate may be affected, among other things, by changes in generally prevailing
market interest rates. If prepayments occur, the Fund suffers the risk that it
will not be able to reinvest the proceeds at as high a rate of interest as it
had previously been receiving. Also, the Fund will incur a loss to the extent
that prepayments are made for an amount that is less than the value at which the
security was then being carried by the Fund. Moreover, securities that may be
prepaid tend to increase in value less during times of declining interest rates,
and to decrease in value more during times of increasing interest rates, than do
securities that are not subject to prepayment.
WHEN-ISSUED AND DELAYED DELIVERY SECURITIES. The Alliance Bond and Alliance
Balanced Funds may purchase and sell securities on a when-issued or delayed
delivery basis. In these transactions, securities are purchased or sold by a
Fund with payment and delivery taking place in the future in order to secure
what is considered to be an advantageous price or yield to the Fund at the time
of entering into the transaction. However, the market value of such securities
at the time of settlement may be more or less than the purchase price then
payable. When a Fund engages in when-issued or delayed delivery transactions,
the Fund relies on the other party to consummate the transaction. Failure to
consummate the transaction may result in the Fund missing the opportunity of
obtaining a price or yield considered to be advantageous. When-issued and
delayed delivery transactions are generally expected to settle within three
months from the date the transactions are entered into, although the Fund may
close out its position prior to the settlement date. A Fund will sell on a
forward settlement basis only securities it owns or has the right to acquire.
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FOREIGN CURRENCY FORWARD CONTRACTS. The Alliance Balanced Fund may enter into
contracts for the purchase or sale of a specific foreign currency at a future
date at a price set at the time of the contract. Generally, such forward
contracts will be for a period of less than three months. The Fund will enter
into such forward contracts for hedging purposes only. These transactions will
include forward purchases or sales of foreign currencies for the purpose of
protecting the dollar value of securities denominated in a foreign currency or
protecting the dollar equivalent of interest or dividends to be paid on such
securities. Forward contracts are traded in the inter-bank market, and not on
organized commodities or securities exchanges. Accordingly, the Fund is
dependent upon the good faith and creditworthiness of the other party to the
transaction, as evaluated by the Fund's Manager. To the extent inconsistent with
any restrictions in the SAI concerning the Fund's trading in foreign exchange,
this paragraph will control.
HEDGING TRANSACTIONS. The Alliance Balanced Fund may engage in hedging
transactions which are designed to protect against anticipated adverse price
movements in securities owned or intended to be purchased by the Fund. When
interest rates go up, the market value of outstanding debt securities declines
and vice versa. In recent years the volatility of the market for debt securities
has increased significantly, and market prices of longer-term obligations have
been subject to wide fluctuations, particularly as contrasted with those of
short-term instruments. The Fund will take certain risks into consideration when
determining which, if any, options or financial futures contracts it will use.
If the price movements of hedged portfolio securities are in fact favorable to
the Fund, the hedging transactions will tend to reduce and may eliminate the
economic benefit to the Fund which otherwise would result. Also, the price
movements of options and futures used for hedging purposes may not correlate as
anticipated with price movements of the securities being hedged. This can make a
hedge transaction less effective than anticipated and could result in a loss.
The options and futures markets can sometimes become illiquid and the exchanges
on which such instruments are traded may impose trading halts or delays on the
exercise of options and liquidation of futures positions in certain
circumstances. This could in some cases operate to the Fund's detriment.
HOW WE DETERMINE THE UNIT VALUE
In our prospectus, we discuss how employer plan assets are put into and taken
out of the Funds by the purchase and redemption of units under the contracts,
respectively. See "How we value your plan balances" in the prospectus. Here we
will discuss how we determine the value of units.
When contributions are invested in the Funds, the number of units outstanding
attributable to each Fund is correspondingly increased; and when amounts are
withdrawn from one of these Funds, the number of units outstanding attributable
to that Fund is correspondingly decreased.
For the Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance
Aggressive Stock Funds, the unit values reflect investment performance and
investment management and financial accounting fees. We determine the respective
unit values for these Funds by multiplying the unit value for the preceding
business day by the net investment factor for that subsequent day. We determine
the net investment factor as follows:
o First, we take the value of the Fund's assets at the close of business on the
preceding business day.
o Next, we add the investment income and capital gains, realized and
unrealized, that are credited to the assets of the Fund during the business
day for which the net investment factor is being determined.
o Then, we subtract the capital losses, realized and unrealized, and investment
management and financial accounting fees charged to the Fund during that
business day.
o Finally, we divide this amount by the value of the Fund's assets at the close
of the preceding business day.
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Prior to June 1, 1994, for the Alliance Bond, Alliance Balanced, Alliance Common
Stock and Alliance Aggressive Stock Funds, the investment management and
financial accounting fees were deducted monthly from employer plan balances in
these Funds.
Assets of the Alliance Bond, Alliance Balanced, Alliance Common Stock and
Alliance Aggressive Stock Funds are valued as follows:
o Common stocks and other equity-type securities listed on national securities
exchanges and certain over-the-counter issues traded on the NASDAQ system are
valued at the last sale price or, if no sale, at the latest available bid
price. Other unlisted securities reported on the NASDAQ system are valued at
inside (highest) quoted bid prices.
o Foreign securities not traded directly, or in ADR form in the United States
are valued at the last sale price in the local currency on an exchange in the
country of origin. Foreign currency is converted into dollars at current
exchange rates.
o United States Treasury securities and other obligations issued or guaranteed
by the United States Government, its agencies or instrumentalities are valued
at representative quoted prices.
o Long-term (i.e., maturing in more than a year) publicly traded corporate
bonds are valued at prices obtained from a bond pricing service of a major
dealer in bonds when such prices are available; however, in circumstances
where it is deemed appropriate to do so, an over-the-counter or exchange
quotation may be used.
o Short-term debt securities maturing in 60 days or less are valued at
amortized cost, which approximates market value. Short-term debt securities
maturing in more than 60 days are valued at representative quoted prices. The
Funds can acquire short-term debt securities directly or through the
acquisition of units in our Separate Account No. 2A. See "Investment options"
in the prospectus.
o Convertible preferred stocks listed on national securities exchanges are
valued as of their last sale price or, if there is no last sale, at the
latest available bid price.
o Convertible bonds and unlisted convertible preferred stocks are valued at bid
prices obtained from one or more major dealers in such securities; where
there is a discrepancy between dealers, values may be adjusted based on
recent premium spreads to the underlying common stock.
o The unit value of Separate Account No. 2A is calculated each day the New York
Stock Exchange is open for trading by dividing (i) the value of the portfolio
securities and other assets of Separate Account No. 2A at the close of the
business on that day (before giving effect to amounts contributed or
withdrawn during that day), by (ii) the total number of units outstanding at
the close of business on the preceding day. Separate Account No. 2A invests
in short-term securities which mature in 60 days or less from the date of
purchase or are subject to a repurchase agreement requiring repurchase in 60
days or less. The assets of Separate Account No. 2A are valued as described
with respect to the Separate Accounts.
The unit value for a Fund of Separate Account Nos. 51 and 66 for any business
day together with any preceding non-business days ("valuation period") is equal
to the unit value for the preceding valuation period multiplied by the net
investment factor for that Investment Fund for that valuation period. The net
investment factor for a valuation period is:
(a/b) - c
where:
(a) is the value of the Fund's shares of the corresponding portfolio at the end
of the valuation period before giving effect to any amounts allocated to or
withdrawn from the Investment Fund for the valuation period. For this
purpose, we use the share value reported to us by EQ Advisors Trust. This
share value is after deduction for
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investment advisory fees and other expenses of EQ Advisors Trust.
(b) is the value of the Fund's shares of the corresponding portfolio at the end
of the preceding valuation period (after any amounts are allocated or
withdrawn for that valuation period).
(c) is the daily factor for the separate account administrative charge
multiplied by the number of calendar days in the valuation period.
Our investment officers and EQ Advisors Trust's investment adviser determine in
good faith the fair value of securities and other assets that do not have a
readily available market price in accordance with accepted accounting practices
and applicable laws and regulations.
ALLIANCE MONEY MARKET YIELD INFORMATION
The Alliance Money Market Fund calculates yield information for seven-day
periods. The seven-day current yield calculation is based on a hypothetical
employer plan with one unit at the beginning of the period. To determine the
seven-day rate of return, the net change in the unit value is computed by
subtracting the unit value at the beginning of the period from a unit value,
exclusive of capital changes, at the end of the period.
The net change is then reduced by the average ongoing operations fee factor
(explained below). This reduction is made to recognize the deduction of the
ongoing operations fee which is not reflected in the unit value. See "Charges
and expenses" in the prospectus. Accumulation unit values reflect all other
accrued expenses of the Alliance Money Market Fund.
The adjusted net change is divided by the unit value at the beginning of the
period to obtain the adjusted base period rate of return. This seven-day
adjusted base period return is then multiplied by 365/7 to produce an annualized
seven-day current yield figure carried to the nearest one-hundredth of one
percent.
The actual dollar amount of the ongoing operations fee that is deducted from the
Alliance Money Market Fund will vary for each employer plan depending upon how
the plan's balance is allocated among the investment options. To determine the
effect of the ongoing operations fee on the yield, we start with the total
dollar amount of the fees deducted from the Fund on the last business day of the
prior month. This amount is multiplied by 7/30.417 to produce an average ongoing
operations fee factor which is used in all weekly yield computations for the
ensuing quarter. The average ongoing operations fee factor and the separate
account administrative charge is then divided by the number of Alliance Money
Market Fund units as of the end of the prior month, and the resulting quotient
is deducted from the net change in unit value for the seven-day period.
The effective yield is obtained by modifying the current yield to give effect to
the compounding nature of the Alliance Money Market Fund's investments, as
follows: the unannualized adjusted base period return is compounded by adding
one to the adjusted base period return, raising the sum to a power equal to 365
divided by 7, and subtracting one from the result, i.e., effective yield = (base
period return + 1) [superscript: 365/7]-1.
The Alliance Money Market Fund yield will fluctuate daily. Accordingly, yields
for any given period are not necessarily representative of future results. In
addition, the value of units of the Alliance Money Market Fund will fluctuate
and not remain constant.
The Alliance Money Market Fund yield reflects charges that are not normally
reflected in the yields of other investments and therefore may be lower when
compared with yields of other investments. Alliance Money Market Fund yields
should not be compared to the return on fixed-rate investments which guarantee
rates of interest for specified periods, such as the guaranteed interest account
or bank deposits. The yield should not be compared to the yield of money market
funds made available to the general public because their yields usually are
calculated on the basis of a constant $1 price per share and they pay earnings
in dividends which accrue on a daily basis.
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The Alliance Money Market Fund's seven-day current yield for the RIA contracts
was 4.57% for the period ended December 31, . The effective yield for that
period was 4.67%. Because these yields reflect the deduction of the ongoing
operations fee and the separate account administrative charge, they are lower
than the corresponding yield figures for the Alliance Money Market portfolio
which reflect only the deduction of EQ Advisors Trust-level expenses.
BROKERAGE FEES AND CHARGES FOR SECURITIES TRANSACTIONS
We discuss in the prospectus that we are the investment manager of the Alliance
Bond, Alliance Balanced, Alliance Common Stock and Alliance Aggressive Stock
Funds. As the investment manager of these Funds, we invest and reinvest the
assets of these Funds in a manner consistent with the policies described in the
prospectus. In providing these services we currently use the personnel and
facilities of our majority-owned subsidiary, Alliance, for portfolio selection
and transaction services, including arranging the execution of portfolio
transactions. Alliance is also an adviser for certain portfolios in EQ Advisors
Trust. Information on brokerage fees and charges for securities transactions for
the EQ Advisors Trust's portfolios is provided in the prospectus for EQ Advisors
Trust.
The Alliance Bond, Alliance Balanced, Alliance Common Stock and Alliance
Aggressive Stock Funds are charged for securities brokers commissions, transfer
taxes and other fees and expenses relating to their operation. Transactions in
equity securities for a Fund are executed primarily through brokers which
receive a commission paid by the Fund. Brokers are selected by Alliance.
Alliance seeks to obtain the best price and execution of all orders placed for
the portfolio of the Funds, considering all the circumstances. If transactions
are executed in the over-the-counter market Alliance will deal with the
principal market makers, unless more favorable prices or better execution is
otherwise obtainable. There are occasions on which portfolio transactions for
the Funds may be executed as part of concurrent authorizations to purchase or
sell the same security for certain other accounts or clients advised by
Alliance. Although these concurrent authorizations potentially can be either
advantageous or disadvantageous to the Funds, they are effected only when it is
believed that to do so is in the best interest of the Funds. When these
concurrent authorizations occur, the objective is to allocate the executions
among the accounts or clients in a fair manner.
We try to choose only brokers which we believe will obtain the best prices and
executions on securities transactions. Subject to this general requirement, we
also consider the amount and quality of securities research services provided by
a broker. Typical research services include general economic information and
analyses and specific information on and analyses of companies, industries and
markets. Factors we use in evaluating research services include the diversity of
sources used by the broker and the broker's experience, analytical ability and
professional stature.
The receipt of research services from brokers tends to reduce our expenses in
managing the Alliance Bond, Alliance Balanced, Alliance Common Stock and
Alliance Aggressive Stock Funds. We take this into account when setting the
expense charges. Brokers who provide research services may charge somewhat
higher commissions than those who do not. However, we will select only brokers
whose commissions we believe are reasonable in all the circumstances.
We periodically evaluate the services provided by brokers and prepare internal
proposals for allocating among those various brokers business for all the
accounts we manage or advise. That evaluation involves consideration of the
overall capacity of the broker to execute transactions, its financial condition,
its past performance and the value of research services provided by the broker
in servicing the various accounts advised or managed by us. Generally, we do not
tell brokers that we will try to allocate a particular amount of business to
them. We do occasionally let brokers know how their performance has been
evaluated.
Research information that we obtain may be used in servicing all clients or
accounts under our management, including our
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general account. Similarly, we will not necessarily use all research provided by
a broker or dealer with which the Funds transact business in connection with
those Funds.
Transactions for the Alliance Bond, Alliance Balanced, Alliance Common Stock and
Alliance Aggressive Stock Funds in the over-the-counter market are normally
executed as principal transactions with a dealer that is a principal market
maker in the security, unless a better price or better execution can be obtained
from another source. Under these circumstances, the Funds pay no commission.
Similarly, portfolio transactions in money market and debt securities will
normally be executed through dealers or underwriters under circumstances where
the Fund pays no commission.
When making securities transactions for the Alliance Bond, Alliance Balanced,
Alliance Common Stock and Alliance Aggressive Stock Funds that do not involve
paying a brokerage commission (such as the purchase of short-term debt
securities), we seek to obtain prompt execution in an effective manner at the
best price. Subject to this general objective, we may give orders to dealers or
underwriters who provide investment research. None of the Funds will pay a
higher price, however, and the fact that we may benefit from such research is
not considered in setting the expense charges.
In addition to using brokers and dealers to execute portfolio securities
transactions for clients or accounts we manage, we may enter into other types of
business transactions with brokers or dealers. These other transactions will be
unrelated to allocation of the Funds' portfolio transactions.
Our parent, AXA Financial, owns Donaldson, Lufkin & Jenrette Inc. ("DLJ"). A DLJ
subsidiary, Donaldson, Lufkin & Jenrette Securities Corporation ("DLJ Securities
Corp."), is one of the nation's largest investment banking and securities firms.
Another DLJ subsidiary, Autranet, Inc., is a securities broker that markets
independently originated research to institutions. Through the Pershing Division
of DLJ Securities Corp., DLJ supplies correspondent services, including order
execution, securities clearance and other centralized financial services to
numerous independent regional securities firms and banks.
To the extent permitted by law, and consistent with the Fund transaction
practices discussed in this SAI and the prospectus, the Alliance Bond, Alliance
Balanced, Alliance Common Stock and Alliance Aggressive Stock Funds may engage
in securities and other transactions with the above entities or may invest in
shares of the investment companies with which those entities have affiliations.
During 1998, there were no transactions effected through DLJ subsidiaries and
therefore no commissions were paid.
For the years ended December 31, 1999, 1998, and 1997 total brokerage
commissions for Separate Account No. 10 -- Pooled were $210,258, $172,883, and
$424,352, respectively; for Separate Account 4 -- Pooled were $5,877,438,
$4,288,187, and $3,698,148, respectively; for Separate Account No. 3 -- Pooled
were $755,520, $2,020,464, and $1,876,011, respectively; and for Separate
Account No. 13 -- Pooled were $-0-, $ -0-, and $-0-, respectively. For the
fiscal year ended December 31, 1999, commissions of $125,632, $2,308,108, and
$369,451 were paid to brokers providing research services to Separate Account
No. 10 -- Pooled, Separate Account No. 4 -- Pooled, Separate Account No. 3 --
Pooled, respectively, on portfolio transactions of $168,980,994, $2,810,065,842,
and $398,305,701, respectively.
ADDITIONAL INFORMATION ABOUT RIA
LOAN PROVISIONS
Loans to plan trustees on behalf of participants are permitted in our RIA
program. It is the plan administrator's responsibility to administer the loan
program.
The following are important features of the RIA loan provision:
o We will only permit loans from the guaranteed interest account. If the amount
requested to be borrowed plus the loan fee and loan reserve we discuss below
is more than the amount available in the guaranteed interest account for the
loan transaction, the employer can move the addi-
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tional amounts necessary from one or more Funds to the guaranteed interest
account.
o The plan administrator determines the interest rate, the maximum term and all
other terms and conditions of the loan.
o Repayment of loan principal and interest can be made only to the guaranteed
interest account. The employer must identify the portion of the repayment
amount which is principal and which is interest.
o Upon repayment of a loan amount, any repayment of loan principal and loan
reserve (see below) taken from one or more Funds for loan purposes may be
moved back to a Fund.
o We charge a loan fee in an amount equal to 1% of the loan principal amount on
the date a loan is made. The contingent withdrawal charge will be applied to
any unpaid principal, as if the amount had been withdrawn on the day the
principal payment was due. See "Charges and expenses" in the prospectus.
o The minimum amount of a loan for a participant is $1,000, and the maximum
amount is 90% of the balances in all the investment options for a
participant. An employer plan, the Code and the Department of Labor ("DOL")
(as described in "Tax information" in the prospectus) may impose additional
conditions or restrictions on loan transactions.
o On the date a loan is made, we create a loan reserve account in the
guaranteed interest account in an amount equal to 10% of the loan amount. The
10% loan reserve is intended to cover (1) the ongoing operations fee
applicable to amounts borrowed, (2) the possibility of our having to deduct
applicable contingent withdrawal charges (see "Charges and expenses" in the
prospectus) and (3) the deduction of any other withholdings, if required. The
loan amount will not earn any interest under the contracts while the loan is
outstanding. The amount of the loan reserve will continue to earn interest at
the guaranteed interest account rate applicable for the employer plan.
o The ongoing operations fee will apply to the sum of the investment option
balances (including the loan reserve) plus any unpaid loan principal. If the
employer plan is terminated or any amount is withdrawn, or if any withdrawal
from RIA results in the reduction of the 10% loan reserve amount in the
guaranteed interest account, during the time a loan is outstanding, the
contingent withdrawal charge will be applied to any principal loan balances
outstanding as well as to any employer plan balances (including the loan
reserve) in the investment options. See "Charges and expenses" in the
prospectus.
ANNUITY BENEFITS
Subject to the provisions of an employer plan, we have available under RIA the
following forms of fixed annuities.
o LIFE ANNUITY: An annuity which guarantees a lifetime income to the retired
employee-participant (annuitant) and ends with the last monthly payment
before the annuitant's death. There is no death benefit associated with this
annuity form and it provides the highest monthly amount of any of the
guaranteed life annuity forms. If this form of annuity is selected, it is
possible that only one payment will be made if the annuitant dies after that
payment.
o LIFE ANNUITY -- PERIOD CERTAIN: This annuity form guarantees a lifetime
income to the annuitant and, if the annuitant dies during a previously
selected minimum payment period, continuation of payments to a designated
beneficiary for the balance of the period. The minimum period is usually 5,
10, 15 or 20 years.
o LIFE ANNUITY -- REFUND CERTAIN: This annuity form guarantees a lifetime
income to the annuitant and, if the annuitant dies before the initial single
premium has been recovered, payments will continue to a designated
beneficiary until the single premium has been recovered. If no beneficiary
survives the annuitant, the refund will be paid in one lump sum to the
estate.
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o PERIOD CERTAIN ANNUITY: Instead of guaranteed lifetime income, this annuity
form provides for payments to the annuitant over a specified period, usually
5, 10, 15 or 20 years, with payments continuing to the designated beneficiary
for the balance of the period if the annuitant dies before the period
expires.
o QUALIFIED JOINT AND SURVIVOR LIFE ANNUITY: This annuity form guarantees
lifetime income to the annuitant, and, after the annuitant's death, the
continuation of income to the surviving spouse. Generally, unless a married
annuitant elects otherwise with the written consent of his spouse, this will
be the form of annuity payment. If this form of annuity is selected, it is
possible that only one payment will be made if both the annuitant and the
spouse die after that payment.
All of the forms outlined above (with the exception of Qualified Joint and
Survivor Life Annuity) are available as either Single or Joint life annuities.
We offer other forms not outlined here. Your financial professional can provide
details.
AMOUNT OF FIXED-ANNUITY PAYMENTS
Our forms of a fixed annuity provide monthly payments of specified amounts.
Fixed-annuity payments, once begun, will not change. The size of payments will
depend on the form of annuity that is chosen, our annuity rate tables in effect
when the first payment is made, and, in the case of a life income annuity, on
the annuitant's age. The tables in our Contracts show monthly payments for each
$1,000 of proceeds applied under an annuity. If our annuity rates in effect on
the annuitant's retirement date would yield a larger payment, those current
rates will apply instead of the tables. Our annuity rate tables are designed to
determine the amounts required for the annuity benefits elected and for
administrative and investment expenses and mortality and expense risks. Under
our Contracts we can change the annuity rate tables every five years. Such
changes would not affect annuity payments being made.
ONGOING OPERATIONS FEE
We determine the ongoing operations fee based on the combined net balances of an
employer plan in all the investment options (including any outstanding loan
balances) at the close of business on the last business day of each month. For
employer plans that adopted RIA on or before February 9, 1986, we use the rate
schedule set forth below, and apply it to the employer plan balances at the
close of business on the last business day of the following month. For employer
plans that adopted RIA after February 9, 1986 we use the rate schedule set forth
in the prospectus. See "Charges and expenses" in the prospectus.
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COMBINED BALANCE MONTHLY
OF INVESTMENT OPTIONS RATE
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First $ 150,000 1/12 of 1.25%
Next $ 350,000 1/12 of 1.00%
Next $ 500,000 1/12 of 0.75%
Next $1,500,000 1/12 of 0.50%
Over $2,500,000 1/12 of 0.25%
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<PAGE>
12
- --------------------------------------------------------------------------------
MANAGEMENT FOR THE ALLIANCE BOND,
ALLIANCE BALANCED, ALLIANCE COMMON
STOCK AND ALLIANCE AGGRESSIVE STOCK
FUNDS AND EQUITABLE LIFE
FUNDS
In the prospectus we give information about us, the Alliance Bond, Alliance
Balanced, Alliance Common Stock and Alliance Aggressive Stock Funds and how we,
together with Alliance, provide investment management for the investments and
operations of these Funds. See "More information" in the prospectus. The amounts
of the investment management and financial accounting fees we received from
employer plans participating through registered Contracts in the Alliance
Balanced, Alliance Common Stock and Alliance Aggressive Stock Funds in 1999 were
$17,346, $50,277, and $15,975, respectively; in 1998 were $22,847, $67,923 and
$30,444, respectively; and in 1997 were $24,226, $75,951, and $32,585,
respectively. The amount of such fees received under the Alliance Bond Fund in
1999, 1998, and 1997 were $807, $747, and $559, respectively.
DISTRIBUTION
AXA Advisors, LLC ("AXA Advisors"), the successor to Equitable Financial
Consultants, Inc. and an affiliate of Equitable Life, is the distributor of the
contracts and has responsibility for sales and marketing functions. AXA Advisors
serves as the principal underwriter of EQ Advisors Trust. AXA Advisors is
registered with the SEC as a broker-dealer and is a member of the National
Association of Securities Dealers, Inc. AXA Advisors' principal business address
is 1290 Avenue of the Americas, New York, NY 10104. The contracts will be sold
by financial professionals of AXA Advisors and its affiliates, who are also our
licensed insurance agents. AXA Advisors may also receive compensation and
reimbursement for its marketing services under the terms of its distribution
agreement with Equitable Life. The offering of the contracts is intended to be
continuous.
<PAGE>
13
- --------------------------------------------------------------------------------
EQUITABLE LIFE
We are managed by a Board of Directors. Our Directors and certain of our
executive officers and their principal occupations are set forth below.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
DIRECTORS
NAME AGE PRINCIPAL OCCUPATION
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Francoise Colloc'h 56 Member of the AXA Management Board and Group Executive President, Human
Resources, Communication and Synergies of AXA.
Henri de Castries 45 Chairman of the Board, AXA Financial; Vice Chairman, AXA's Management Board.
Joseph L. Dionne 66 Retired Chairman and Chief Executive Officer, The McGraw-Hill Companies.
Denis Duverne 46 Executive Vice President, International AXA; member, AXA Executive Board.
Jean-Rene Fourtou 60 Vice Chairman of the Management Board, Aventis; prior thereto, Chairman and
Chief Executive Officer, Rhone-Poulenc, S.A.
Norman C. Francis 69 President, Xavier University of Louisiana.
Donald J. Greene 66 Of Counsel, LeBoeuf, Lamb, Greene & MacRae, L.L.P.; prior thereto, Partner of
the firm.
John T. Hartley 70 Director and retired Chairman and Chief Executive Officer, Harris Corporation.
John H. F. Haskell, Jr. 68 Senior Advisor, Warburg, Dillon Read LLC; prior thereto, Managing Director and
member of the Board of Directors.
Mary (Nina) Henderson 49 Corporate Vice President, Core Business Development of Bestfoods (formerly CPC
International, Inc.); prior thereto, Vice President and President, Bestfoods
Grocery.
W. Edwin Jarmain 61 President, Jarmain Group Inc.
George T. Lowy 68 Partner, Cravath, Swaine & Moore.
Didier Pineau-Valencienne 69 Vice Chairman, Credit Suisse First Boston; Honorary Chairman, Schneider Electric; prior
thereto, Chairman and Chief Executive Officer.
George J. Sella, Jr. 71 Retired Chairman and Chief Executive Officer, American Cyanamid Company.
Peter J. Tobin 56 Dean, Peter J. Tobin College of Business Administration, St. John's University;
prior thereto, Chief Financial Officer, Chase Manhattan Corp.
Dave H. Williams 67 Chairman, Alliance Capital Management; prior thereto, Chief Executive Officer.
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
14
- --------------------------------------------------------------------------------
Unless otherwise indicated, the following persons have been involved in the
management of Equitable Life in various executive positions during the last five
years.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
OFFICER-DIRECTORS
NAME AGE PRINCIPAL OCCUPATION
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Michael Hegarty 55 President and Chief Operating Officer of Equitable Life; Senior Vice Chairman
and Chief Operating Officer, AXA Financial, Inc.; prior thereto, Vice Chairman,
Chase Manhattan Corporation.
Edward D. Miller 59 Chairman of the Board and Chief Executive Officer, Equitable Life; former Senior
Vice Chairman of Chase Manhattan Corporation; prior thereto, President and
Senior Vice Chairman of Chemical Bank.
Stanley B. Tulin 50 Vice Chairman of the Board and Chief Financial Officer of Equitable Life; prior
thereto, Senior Executive Vice President of AXA Financial, Inc. and Chairman of
the Insurance Consulting and Actuarial Practice of Coopers & Lybrand, L.L.P.
- -----------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
NAME AGE PRINCIPAL OCCUPATION
- -----------------------------------------------------------------------------------------------------------------------
Leon B. Billis 54 Executive Vice president and Chief Information Officer.
Derry E. Bishop 53 Executive Vice President and Chief Agency Officer, Equitable Life and AXA Client
Solutions; Director and Executive Vice President, AXA Advisors, LLC.
Harvey Blitz 54 Senior Vice President, Equitable Life and AXA Financial, Inc.; Executive Vice
President, AXA Advisors, LLC.
Kevin R. Byrne 44 Senior Vice President and Treasurer, Equitable Life, AXA Financial, Inc., AXA
Client Solutions, LLC, Equitable Distributors and Equitable of Colorado.
John A. Caroselli 45 Executive Vice President; prior thereto, Senior Vice President, Chase Manhattan
Corp.
Judy A. Faucett 52 Senior Vice President and Actuary; prior thereto, Partner and Senior Actuarial
Consultant of Coopers & Lybrand L.L.P.
Alvin H. Fenichel 55 Senior Vice President and Controller, Equitable Life and AXA Financial, Inc.
Paul J. Flora 53 Senior Vice President and Auditor; Vice President and Auditor, AXA Financial,
Inc.
Robert E. Garber 50 Executive Vice President and Chief Legal Officer; General Counsel, AXA
Financial, Inc.
Donald R. Kaplan Senior Vice President, Chief Compliance Officer and Associate General Counsel.
Michael Martin 53 Executive Vice President and Chief Marketing Officer; Chairman and Chief
Executive Officer, AXA Advisors, LLC; President, Equitable of Colorado.
Richard J. Matteis 63 Executive Vice President; prior thereto, Executive Vice President Chase
Manhattan Corp.
Peter D. Noris 44 Executive Vice President and Chief Investment Officer, Equitable Life and AXA
Financial, Inc.; Chairman, President and Trustee of EQ Advisors Trust; Executive
Vice President of AXA Client Solutions and Equitable of Colorado; Chief
Investment Officer of Equitable of Colorado.
Brian S. O'Neil 48 Executive Vice President of Equitable Life, AXA Financial, Inc. and AXA Client
Solutions.
Anthony C. Pasquale 52 Senior Vice President of Equitable Life and AXA Client Solutions; Chairman and
Chief Operating Officer, Casualty.
Pauline Sherman 56 Senior Vice President, Secretary and Associate General Counsel of Equitable
Life, AXA Financial, Inc. and AXA Client Solutions; Senior Vice President and
Secretary, Equitable of Colorado.
Richard V. Silver 44 Senior Vice President and General Counsel, Equitable Life; Senior Vice President
and Associate General Counsel, AXA Financial, Inc. and AXA Client Solutions;
Vice President and General Counsel, Equitable of Colorado.
Jose S. Suquet 43 Senior Executive Vice President and Chief Distribution Officer, Equitable Life
and AXA Client Solutions; Chairman, EDI.
Gregory G. Wilcox 50 Executive Vice President, Equitable Life and AXA Financial, Inc.
R. Lee Wilson 46 Executive Vice President, Equitable Life and AXA Client Solutions.
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
15
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS INDEX
- -----------------------------------------------------------------------------------------------------------------------
PAGE
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SEPARATE ACCOUNT NOS. 13 (POOLED), Report of Independent Accountants--.................................... FSA-1
10 (POOLED), 4 (POOLED), AND 3
(POOLED)
- -----------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 13 (POOLED) Statement of Assets and Liabilities, December 31, 1999................. FSA-2
-----------------------------------------------------------------------------------
Statement of Operations for the Year Ended December 31, 1999........... FSA-3
-----------------------------------------------------------------------------------
Statements of Changes in Net Assets for the Years
Ended December 31, 1999 and 1998...................................... FSA-4
-----------------------------------------------------------------------------------
Portfolio of Investments, December 31, 1999 ........................... FSA-5
- -----------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 10 (POOLED) Statement of Assets and Liabilities, December 31, 1999................. FSA-8
-----------------------------------------------------------------------------------
Statement of Operations for the Year
Ended December 31, 1999................................................ FSA-9
-----------------------------------------------------------------------------------
Statements of Changes in Net Assets for the Years
Ended December 31, 1999 and 1998....................................... FSA-10
-----------------------------------------------------------------------------------
Portfolio of Investments, December 31, 1999............................ FSA-11
- -----------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 4 (POOLED) Statement of Assets and Liabilities, December 31, 1999............. FSA-25
-----------------------------------------------------------------------------------
Statement of Operations for the Year
Ended December 31, 1999................................................ FSA-26
-----------------------------------------------------------------------------------
Statements of Changes in Net Assets for the Years
Ended December 31, 1999 and 1998....................................... FSA-27
-----------------------------------------------------------------------------------
Portfolio of Investments, December 31, 1999............................ FSA-28
- -----------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 3 (POOLED) Statement of Assets and Liabilities, December 31, 1999................. FSA-33
-----------------------------------------------------------------------------------
Statement of Operations for the Year
Ended December 31, 1999................................................ FSA-34
-----------------------------------------------------------------------------------
Statements of Changes in Net Assets for the Years
Ended December 31, 1999 and 1998....................................... FSA-35
-----------------------------------------------------------------------------------
Portfolio of Investments, December 31, 1999............................ FSA-36
- -----------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 51 (POOLED) Report of Independent Accountants--.................................... FSA-41
- -----------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 51 (POOLED) Statements of Assets and Liabilities, December 31, 1999................ FSA-42
-----------------------------------------------------------------------------------
Statements of Operations for the Year
Ended December 31, 1999................................................ FSA-45
-----------------------------------------------------------------------------------
Statements of Changes in Net Assets for the Years
Ended December 31, 1999 and 1998....................................... FSA-48
- -----------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED) Report of Independent Accountants--.................................... FSA-54
- -----------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED) Statements of Assets and Liabilities, December 31, 1999................ FSA-55
-----------------------------------------------------------------------------------
Statements of Operations for the Year
Ended December 31, 1999................................................ FSA-60
-----------------------------------------------------------------------------------
Statements of Changes in Net Assets for the Years
Ended December 31, 1999 and 1998....................................... FSA-66
- -----------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT NOS. 13 (POOLED), Notes to Financial Statements.......................................... FSA-75
10 (POOLED), 4 (POOLED), 3
(POOLED), 51 (POOLED), AND
66 (POOLED)
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
16
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS INDEX (CONT'D)
- -----------------------------------------------------------------------------------------------------------------------
PAGE
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
THE EQUITABLE LIFE ASSURANCE Report of Independent Accountants--................................... F-1
SOCIETY OF THE UNITED STATES -----------------------------------------------------------------------------------
Consolidated Balance Sheets as of December 31, 1999 and 1998.......... F-2
-----------------------------------------------------------------------------------
Consolidated Statements of Earnings for the Years Ended
December 31, 1999, 1998 and 1997..................................... F-3
-----------------------------------------------------------------------------------
Consolidated Statements of Shareholder's Equity for the Years
Ended December 31, 1999 , 1998 and 1997.............................. F-4
-----------------------------------------------------------------------------------
Consolidated Statements of Cash Flows for the Years Ended
December 31, 1999, 1998 and 1997..................................... F-5
-----------------------------------------------------------------------------------
Notes to Consolidated Financial Statements............................ F-6
- -----------------------------------------------------------------------------------------------------------------------
The financial statements of the Funds reflect fees, charges and other expenses
of the Separate Accounts applicable to contracts under RIA as in effect during
the periods covered, as well as the expense charges made in accordance with
the terms of all other contracts participating in the respective Funds.
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Retirement Investment Account(R)
- -----------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT UNITS OF INTEREST
UNDER GROUP ANNUITY CONTRACTS
FUNDS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
POOLED SEPARATE ACCOUNTS SEPARATE ACCOUNT NO. 51 SEPARATE ACCOUNT NO. 66
o Alliance Aggressive Stock, Separate o Alliance Conservative Investors o EQ/Alliance Technology
Account No. 3 -- Pooled o Alliance Equity Index o EQ/Alliance Premier Growth
o Alliance Balanced, Separate Account o Alliance Global o Calvert Socially
No. 10 -- Pooled o Alliance Growth and Income Responsible
o Alliance Bond, Separate Account o Alliance Growth Investors o Capital Guardian
No. 13 -- Pooled o Alliance High Yield International
o Alliance Common Stock, Separate o Alliance Intermediate Government o Capital Guardian Research
Account No. 4 -- Pooled Securities o Capital Guardian U.S.
o Alliance International Equity
o Alliance Money Market o EQ/Evergreen
o Alliance Quality Bond o EQ Evergreen Foundation
o Alliance Small Cap Growth o Lazard Large Cap Value
o Lazard Small Cap Value
o Mercury Basic Value Equity
o Mercury World Strategy
o MFS Emerging Growth
Companies
o MFS Growth with Income
o MFS Research
o Morgan Stanley Emerging
Markets Equity
o EQ/Putnam Balanced
o EQ/Putnam Growth & Income
Value
o EQ/Putnam International
Equity Index
o EQ/Putnam Investors Growth
o T. Rowe Price Equity
Income
o T. Rowe Price International Stock
o Warburg Pincus Small
Company Value
OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE
UNITED STATES
RIA SERVICE OFFICE: CONTRIBUTIONS ONLY: EXPRESS MAIL CONTRIBUTIONS ONLY:
Equitable Life Equitable Life Bank One, NA
RIA service office RIA/EPP 300 Harmon Meadow Boulevard
200 Plaza Drive P.O. Box 13503 Attn: Box 13503
Secaucus, NJ 07094-3689 Newark, NJ 07188 Secaucus, NJ 07094
Tel.: (800) 967-4560
(201) 583-2302
(9 A.M. to 5 P.M. Eastern time)
Fax: (201) 583-2304, 2305, or 2306
(To obtain pre-recorded Fund unit
values, use our toll-free number
listed above)
</TABLE>
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Board of Directors of
The Equitable Life Assurance Society of the United States
and the Contractowners of Separate Account Nos. 13, 10, 4 and 3
of The Equitable Life Assurance Society of the United States
In our opinion, the accompanying statements of assets and liabilities, including
the portfolio of investments, and the related statements of operations and
changes in net assets and the selected per unit data (included under Condensed
Financial Information in the prospectus of the Retirement Investment Account)
present fairly, in all material respects, the financial position of Separate
Account Nos. 13 (Pooled) (Alliance Bond Fund), 10 (Pooled) (Alliance Balanced
Fund), 4 (Pooled) (Alliance Common Stock Fund) and 3 (Pooled) (Alliance
Aggressive Stock Fund) of The Equitable Life Assurance Society of the United
States ("Equitable Life") at December 31, 1999, the results of each of their
operations for the year then ended, changes in each of their net assets for the
two years then ended and the selected per unit data for the periods presented,
in conformity with accounting principles generally accepted in the United States
of America. These financial statements and the selected per unit data (hereafter
referred to as "financial statements") are the responsibility of Equitable
Life's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States of America, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 1, 2000
FSA-1
<PAGE>
SEPARATE ACCOUNT NO. 13 (POOLED)
(THE ALLIANCE BOND FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
December 31, 1999
- -------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments (Notes 2 and 3):
Long-term debt securities -- at market value (amortized cost: $85,768,148) .................. $83,085,672
Participation in Separate Account No. 2A -- at amortized cost, which approximates
market value, equivalent to 6,971 units at $300.60 ........................................ 2,095,470
Cash ......................................................................................... 1,441
Due from Equitable Life's General Account .................................................... 3,292
Interest and other receivable ................................................................ 1,243,106
- -------------------------------------------------------------------------------------------------------------
Total assets ................................................................................. 86,428,981
- -------------------------------------------------------------------------------------------------------------
LIABILITIES:
Investment management fees payable ........................................................... 42
Accrued expenses ............................................................................. 30,387
- -------------------------------------------------------------------------------------------------------------
Total liabilities ............................................................................ 30,429
- -------------------------------------------------------------------------------------------------------------
NET ASSETS ................................................................................... $86,398,552
=============================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-2
<PAGE>
SEPARATE ACCOUNT NO. 13 (POOLED)
(THE ALLIANCE BOND FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statement of Operations
Year Ended December 31, 1999
- --------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME (NOTE 2)-- Interest ........................................................ $ 5,408,913
- --------------------------------------------------------------------------------------------------------------
EXPENSES (NOTE 4)
Asset and investment management fees ......................................................... (462,830)
Administrative fees .......................................................................... (28,746)
Operating expenses ........................................................................... (40,953)
- --------------------------------------------------------------------------------------------------------------
Total expenses ............................................................................... (532,529)
- --------------------------------------------------------------------------------------------------------------
Net investment income ........................................................................ 4,876,384
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 2):
Realized loss from security transactions ..................................................... (1,018,407)
Change in unrealized appreciation/depreciation of investments ................................ (4,247,078)
- --------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Loss on Investments .............................................. (5,265,485)
- -------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS ........................................ $ (389,101)
==============================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-3
<PAGE>
SEPARATE ACCOUNT NO. 13 (POOLED)
(THE ALLIANCE BOND FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
1999 1998
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net Investment Income ....................................................... $ 4,876,384 $ 5,636,803
Net realized gain (loss) on investments ..................................... (1,018,407) 2,544,641
Change in unrealized appreciation/depreciation of investments ............... (4,247,078) 120,191
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets attributable to operations ............ (389,101) 8,301,635
- ------------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions ............................................................... 15,016,685 23,074,114
Withdrawals ................................................................. (26,268,116) (45,688,691)
- ------------------------------------------------------------------------------------------------------------------
Net decrease in net assets attributable to contributions and withdrawals .... (11,251,431) (22,614,577)
- ------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS ...................................................... (11,640,532) (14,312,942)
NET ASSETS-- BEGINNING OF YEAR .............................................. 98,039,084 112,352,026
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS-- END OF YEAR .................................................... $ 86,398,552 $ 98,039,084
==================================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-4
<PAGE>
SEPARATE ACCOUNT NO. 13 (POOLED)
(THE ALLIANCE BOND FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999
- ------------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
PRINTING, PUBLISHING & BROADCASTING (1.0%)
CBS Corp.
7.15%,2005 ........................................................ $ 850,000 $ 833,961
----------
TOTAL BUSINESS SERVICES (1.0%) ....................................... 833,961
----------
CAPITAL GOODS
AEROSPACE (2.9%)
Lockhead Martin Corp.
6.85%, 2001 ....................................................... 2,500,000 2,474,340
----------
TOTAL CAPITAL GOODS (2.9%) ........................................... 2,474,340
----------
CONSUMER CYCLICALS
AUTO-RELATED (4.5%)
Enterprise Rent-A-Car Co.
6.95%, 2004 ....................................................... 4,000,000 3,872,196
----------
TOTAL CONSUMER CYCLICALS (4.5%) ...................................... 3,872,196
----------
CREDIT-SENSITIVE
ASSET-BACKED (7.5%)
Carat Auto Receivables Asset Trust
5.58%, 2002 ....................................................... 2,500,000 2,466,400
Chase Credit Card Master Trust
6.3%, 2003 ........................................................ 4,000,000 3,995,000
----------
6,461,400
----------
BANKS (2.9%)
Bank of America Corp.
9.5%, 2004 ........................................................ 2,350,000 2,543,264
----------
FINANCIAL SERVICES (11.5%)
Associates Corp. of North America
6.5%, 2002 ........................................................ 3,500,000 3,462,305
Ford Motor Credit Co.
5.8%, 2009 ........................................................ 1,650,000 1,462,725
General Electric Capital Corp.
6.65%, 2002 ....................................................... 1,875,000 1,864,856
Goldman Sachs Group, Inc.
7.35%, 2009 ....................................................... 1,325,000 1,293,478
</TABLE>
FSA-5
<PAGE>
SEPARATE ACCOUNT NO. 13 (POOLED)
(THE ALLIANCE BOND FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- -------------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- -------------------------------------------------------------------------------------------------------
CREDIT-SENSITIVE (CONTINUED)
FINANCIAL SERVICES (11.5%) (CONTINUED)
<S> <C> <C>
Household Finance Corp.
6.5%, 2008 ........................................................ $ 2,000,000 $ 1,852,220
-----------
9,935,584
-----------
MORTGAGE-RELATED (22.5%)
Federal National Mortgage Association:
5.25%, 2003 ....................................................... 4,500,000 4,328,414
5.875%, 2004 ...................................................... 2,400,000 2,295,000
6.0%, 2028 ........................................................ 2,488,274 2,278,068
6.0%, 2029 ........................................................ 1,931,591 1,768,412
7.5%, 2029 ........................................................ 7,856,057 7,773,774
LB Commercial Conduit Mortgage Trust
6.78%, 2030 ....................................................... 1,000,000 953,450
-----------
19,397,118
-----------
UTILITY -- ELECTRIC (4.3%)
Consolidated Edison, Inc.
6.25%, 2008 ....................................................... 4,000,000 3,696,800
-----------
U.S. GOVERNMENT (32.7%)
U.S. Treasury Notes:
6.0%, 2000 ........................................................ 3,900,000 3,903,658
6.25%, 2001 ....................................................... 1,120,000 1,121,051
6.5%, 2001 ........................................................ 7,680,000 7,711,204
5.875%, 2004 ...................................................... 2,790,000 2,735,944
6.875%, 2006 ...................................................... 11,595,000 11,797,913
6.0%, 2009 ........................................................ 1,100,000 1,065,625
-----------
28,335,395
-----------
TOTAL CREDIT-SENSITIVE (81.4%) ....................................... 70,369,561
-----------
ENERGY
COAL & GAS PIPELINES (3.9%)
Williams Companies, Inc. .............................................
6.125%, 2001 ...................................................... 3,400,000 3,365,150
-----------
TOTAL ENERGY (3.9%) .................................................. 3,365,150
-----------
TECHNOLOGY
TELECOMMUNICATIONS (2.5%)
Comcast Cable Communications, Inc. ...................................
6.2%, 2008 ........................................................ 2,400,000 2,170,464
-----------
TOTAL TECHNOLOGY (2.5%) .............................................. 2,170,464
-----------
</TABLE>
FSA-6
<PAGE>
SEPARATE ACCOUNT NO. 13 (POOLED)
(THE ALLIANCE BOND FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Concluded)
- -------------------------------------------------------------------------------------------------------
MARKET
VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C>
TOTAL LONG-TERM DEBT SECURITIES (96.2%)
(Amortized Cost $85,768,148).................................................... $ 83,085,672
--------------
PARTICIPATION IN SEPARATE ACCOUNT NO. 2A,
at amortized cost, which approximates market value, equivalent to 6,971 units
at $300.60 each (2.4%).......................................................... 2,095,470
--------------
TOTAL INVESTMENTS (98.6%)
(Amortized Cost $87,863,618) ................................................... 85,181,142
OTHER ASSETS LESS LIABILITIES (1.4%)............................................... 1,217,410
--------------
NET ASSETS (100.0%)................................................................ $ 86,398,552
==============
See Notes to Financial Statements.
</TABLE>
FSA-7
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
December 31, 1999
- --------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments (Notes 2 and 3):
Common stocks -- at market value (cost: $51,061,608) ..................................... $ 71,663,489
Preferred stocks -- at market value (cost: $1,349,937) ................................... 2,158,800
Long-term debt securities -- at market value (amortized cost: $67,574,628) ............... 67,481,851
Participation in Separate Account No. 2A -- at amortized cost, which approximates
market value, equivalent to 117 units at $300.60 ....................................... 35,179
Receivable for investment securities sold ................................................. 2,527,719
Interest receivable ....................................................................... 878,928
Dividends and other receivable ............................................................ 125,323
- --------------------------------------------------------------------------------------------------------------
Total assets .............................................................................. 144,871,289
- --------------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to Equitable Life's General Account ................................................... 1,082,278
Custodian fee payable ..................................................................... 978,915
Payable for investment securities purchased ............................................... 7,632
Investment management fees payable ........................................................ 1,384
Accrued expenses .......................................................................... 155,991
Unrealized depreciation of forward currency contracts ..................................... 938
- --------------------------------------------------------------------------------------------------------------
Total liabilities ......................................................................... 2,227,138
- --------------------------------------------------------------------------------------------------------------
NET ASSETS ................................................................................ $142,644,151
==============================================================================================================
See Notes to Financial Statements
</TABLE>
FSA-8
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statement of Operations
Year Ended December 31, 1999
- --------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (NOTE 2):
<S> <C>
Dividends (net of foreign taxes withheld of $50,363) ...................................... $ 1,043,948
Interest .................................................................................. 4,751,668
- --------------------------------------------------------------------------------------------------------------
Total investment income ................................................................... 5,795,616
- --------------------------------------------------------------------------------------------------------------
EXPENSES (NOTE 4):
Asset and investment management fees ...................................................... (1,075,798)
Administrative fees ....................................................................... (1,319,166)
Operating expenses ........................................................................ (175,624)
- --------------------------------------------------------------------------------------------------------------
Total expenses ............................................................................ (2,570,588)
- --------------------------------------------------------------------------------------------------------------
Net investment income ..................................................................... 3,225,028
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 2):
Realized gain from security and foreign currency transactions ............................. 26,193,319
Change in unrealized appreciation/depreciation of investments
and foreign currency transactions ...................................................... (8,283,953)
- --------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments ........................................... 17,909,366
- --------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS ..................................... $ 21,134,394
==============================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-9
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
1999 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net Investment Income ..................................................... $ 3,225,028 $ 4,993,836
Net realized gain on investments and foreign currency transactions ........ 26,193,319 23,827,974
Change in unrealized appreciation/depreciation of investments
and foreign currency transactions ...................................... (8,283,953) 9,231,482
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets attributable to operations ..................... 21,134,394 38,053,292
- ---------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions ............................................................. 30,187,271 41,418,954
Withdrawals ............................................................... (105,989,196) (125,416,483)
- ---------------------------------------------------------------------------------------------------------------
Net decrease in net assets attributable to contributions and withdrawals .. (75,801,925) (83,997,529)
- ---------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS .................................................... (54,667,531) (45,944,237)
NET ASSETS -- BEGINNING OF YEAR ........................................... 197,311,682 243,255,919
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR ................................................. $ 142,644,151 $ 197,311,682
===============================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-10
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (1.0%)
Akzo Nobel N.V. ....................................................... 6,300 $ 314,571
BASF AG................................................................ 4,500 234,169
Dow Chemical Co. ...................................................... 1,400 187,075
Dupont (E. I.) de Nemours & Co. ....................................... 2,802 184,582
Ecolab, Inc. .......................................................... 4,500 176,063
Shin-Etsu Chemical Co. Ltd. ........................................... 9,000 386,530
-------------
1,482,990
-------------
CHEMICALS -- SPECIALTY (0.2%)
Lyondell Chemical Company.............................................. 16,500 210,375
-------------
METALS & MINING (0.2%)
Alcoa, Inc. ........................................................... 1,600 132,800
Freeport-McMoran Copper & Gold, Inc. (Class B)*........................ 4,600 97,175
Newmont Mining Corp. .................................................. 1,500 36,750
Phelps Dodge Corp. .................................................... 800 53,700
-------------
320,425
-------------
STEEL (0.1%)
NatSteel Ltd. ......................................................... 41,000 81,705
USX-U.S. Steel Group, Inc. ............................................ 2,400 79,200
-------------
160,905
-------------
TOTAL BASIC MATERIALS (1.5%)........................................... 2,174,695
-------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.4%)
Verisign, Inc.*........................................................ 3,300 629,475
-------------
PRINTING, PUBLISHING & BROADCASTING (2.4%)
AMFM, Inc.* ........................................................... 4,400 344,300
AT&T Corp. -- Liberty Media (Class A)*................................. 7,884 447,417
British Sky Broadcasting PLC........................................... 22,270 358,248
CBS Corp.*............................................................. 4,600 294,113
Gannett Co............................................................. 3,800 309,938
MediaOne Group, Inc.*.................................................. 5,900 453,194
New Straits Times Press BHD*........................................... 13,000 31,303
Time Warner, Inc. ..................................................... 9,800 709,888
United News & Media PLC................................................ 37,068 463,521
-------------
3,411,922
-------------
PROFESSIONAL SERVICES (0.2%)
Securitas AB (Series B)................................................ 14,000 252,459
-------------
</TABLE>
FSA-11
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BUSINESS SERVICES (CONTINUED)
TRUCKING, SHIPPING (0.0%)
Frontline Ltd. -- Warrrants (Expire 05/11/01)* ........................ 5,706 $ 0
----------
TOTAL BUSINESS SERVICES (3.0%) ........................................ 4,293,856
----------
CAPITAL GOODS
AEROSPACE (0.2%)
British Aerospace PLC ................................................. 40,000 264,291
----------
BUILDING & CONSTRUCTION (0.3%)
ABB AG* ............................................................... 1,981 240,929
CRH PLC ............................................................... 8,000 170,773
----------
411,702
----------
BUILDING MATERIALS & FOREST PRODUCTS (0.4%)
Masco Corp. ........................................................... 10,100 256,288
Weyerhaeuser Co. ...................................................... 3,800 272,888
----------
529,176
----------
ELECTRICAL EQUIPMENT (1.9%)
General Electric Co. .................................................. 17,100 2,646,225
----------
MACHINERY (0.4%)
Fanuc Co. ............................................................. 2,000 253,978
United Technologies Corp. ............................................. 5,700 370,500
----------
624,478
----------
TOTAL CAPITAL GOODS (3.2%) ............................................ 4,475,872
----------
CONSUMER CYCLICALS
AIRLINES (0.4%)
British Airways PLC ................................................... 50,800 330,322
Northwest Airlines Corp.* ............................................. 4,500 100,125
Southwest Airlines Co. ................................................ 7,900 127,881
----------
558,328
----------
AUTOS & TRUCKS (0.3%)
Ford Motor Co. ........................................................ 4,800 256,500
General Motors Corp. .................................................. 2,400 174,450
----------
430,950
----------
LEISURE-RELATED (0.6%)
Berjaya Sports Toto BHD ............................................... 27,000 58,263
Carnival Corp. (Class A) .............................................. 6,700 320,344
Harley Davidson, Inc. ................................................. 3,900 249,844
Park Place Entertainment Corp.* ....................................... 9,600 120,000
---------
748,451
---------
</TABLE>
FSA-12
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS (CONTINUED)
RETAIL -- GENERAL (3.5%)
Carrefour SA........................................................... 1,000 $ 183,585
Costco Wholesale Corp.*................................................ 1,200 109,500
Dayton Hudson Corp. ................................................... 1,800 132,188
Dixons Group PLC....................................................... 16,300 391,608
Gap, Inc............................................................... 6,950 319,700
Home Depot, Inc. ...................................................... 12,600 863,887
Kingfisher PLC......................................................... 15,700 172,891
Kohl's Corp.*.......................................................... 2,400 173,250
Lowe's Cos., Inc. ..................................................... 4,900 292,775
Next PLC............................................................... 54,300 520,422
Wal-Mart Stores, Inc. ................................................. 22,200 1,534,574
Walgreen Co. .......................................................... 11,300 330,525
-------------
5,024,905
-------------
TOTAL CONSUMER CYCLICALS (4.8%)........................................ 6,762,634
-------------
CONSUMER NONCYCLICALS
BEVERAGES (0.9%)
Coca-Cola Co. ......................................................... 8,700 506,775
Coca-Cola Enterprises, Inc. ........................................... 8,500 171,063
Pepsi Bottling Group, Inc. ............................................ 10,100 167,281
Pepsico, Inc. ......................................................... 12,000 423,000
-------------
1,268,119
-------------
CONTAINERS (0.2%)
Sealed Air Corp.*...................................................... 4,800 248,700
-------------
DRUGS (3.3%)
Amgen, Inc.*........................................................... 8,100 486,506
Banyu Pharmaceutical Co. Ltd. ......................................... 16,000 247,535
Bristol-Myers Squibb Co. .............................................. 12,300 789,506
Human Genome Sciences, Inc.*........................................... 1,400 213,675
MedImmune, Inc.*....................................................... 1,897 314,665
Merck & Co., Inc. ..................................................... 8,100 543,206
Pfizer, Inc. .......................................................... 20,720 672,105
Schering Plough Corp. ................................................. 12,100 510,469
Takeda Chemical Industries............................................. 5,000 246,462
Warner-Lambert Co. .................................................... 6,700 548,981
Yamanouchi Pharmaceutical Co. Ltd. .................................... 3,000 104,539
-------------
4,677,649
-------------
FOODS (0.0%)
Ng Fung Hong Limited................................................... 100,000 51,454
-------------
</TABLE>
FSA-13
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER NONCYCLICALS (CONTINUED)
HOSPITAL SUPPLIES & SERVICES (1.1%)
Health Management Associates, Inc. (Class A)*.......................... 22,700 $ 303,613
Johnson & Johnson...................................................... 2,900 270,063
Medtronic, Inc. ....................................................... 10,700 389,881
PT Tempo Scan Pacific.................................................. 40,000 33,475
Quintiles Transnational Corp.*......................................... 10,600 198,088
Tenet Healthcare Corp.*................................................ 13,700 321,950
-------------
1,517,070
-------------
RETAIL -- FOOD (0.3%)
Kroger Co.*............................................................ 20,800 392,600
-------------
SOAPS & TOILETRIES (1.4%)
Avon Products, Inc. ................................................... 5,100 168,300
Colgate Palmolive Co. ................................................. 5,500 357,500
Estee Lauder Cos. (Class A)............................................ 4,800 242,100
KAO Corp. ............................................................. 14,000 398,341
Procter & Gamble Co. .................................................. 7,800 854,588
-------------
2,020,829
-------------
TOBACCO (0.2%)
Philip Morris Cos., Inc. .............................................. 16,330 378,652
-------------
TOTAL CONSUMER NONCYCLICALS (7.4%)..................................... 10,555,073
-------------
CREDIT-SENSITIVE
BANKS (3.8%)
Banco Santander SA..................................................... 14,000 157,777
Bangkok Bank*.......................................................... 1,000 2,528
Bank Dagang Nasional Indonesia Tbk*.................................... 234,000 2,489
Bank of America Corp. ................................................. 12,742 639,489
Bank of Ireland*....................................................... 32,000 253,470
Bank of Scotland....................................................... 22,000 253,981
Bank of Tokyo-Mitsubishi Ltd. ......................................... 18,000 250,190
Bank One Corp. ........................................................ 9,932 318,445
Banque Nationale de Paris.............................................. 4,300 394,924
Chase Manhattan Corp. ................................................. 7,023 545,599
Citigroup, Inc. ....................................................... 20,725 1,151,532
DBS Group Holdings Ltd. ............................................... 4,652 76,230
Firstar Corp. ......................................................... 8,800 185,900
National Bank of Canada................................................ 3,000 38,189
Royal Bank of Scotland Group PLC....................................... 16,000 282,427
Standard Chartered PLC................................................. 21,000 326,976
</TABLE>
FSA-14
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CREDIT-SENSITIVE (CONTINUED)
BANKS (3.8%) (CONTINUED)
Sumitomo Trust & Banking Co. .......................................... 30,000 $ 202,050
Thai Farmers Bank Public Co. -- Warrants (Expire 09/15/02)*............ 750 186
U.S. Bancorp........................................................... 300 7,144
Wells Fargo Co. ....................................................... 7,800 315,413
-------------
5,404,939
-------------
FINANCIAL SERVICES (1.6%)
Associates First Capital Corp. (Class A)............................... 8,142 223,396
Household International, Inc. ......................................... 7,500 279,375
Legg Mason, Inc. ...................................................... 5,200 188,500
MBNA Corp. ............................................................ 12,012 327,327
Merrill Lynch & Co., Inc. ............................................. 1,600 133,600
Morgan Stanley Dean Witter & Co. ...................................... 4,900 699,474
Peregrine Investment Holdings*......................................... 90,000 0
PMI Group, Inc. ....................................................... 5,150 251,384
Shohkoh Fund & Co. Ltd. ............................................... 300 118,448
Worms Et Compagnie*.................................................... 300 13,810
-------------
2,235,314
-------------
INSURANCE (1.4%)
Ace Ltd. .............................................................. 5,000 83,438
American International Group, Inc. .................................... 9,967 1,077,681
Hartford Life, Inc. ................................................... 5,100 224,400
Prudential Corp. ...................................................... 12,000 235,248
Travelers Property & Casualty Corp. (Class A).......................... 7,200 246,600
UnumProvident Corp. ................................................... 5,400 173,138
-------------
2,040,505
-------------
MORTGAGE-RELATED (0.1%)
Fannie Mae............................................................. 2,700 168,581
-------------
REAL ESTATE (0.0%)
China Resources Enterprises Ltd. ...................................... 20,000 32,030
-------------
UTILITY -- ELECTRIC (0.9%)
AES Corp.*............................................................. 4,300 321,425
CMS Energy Corp. ...................................................... 6,000 187,125
Consolidated Edison, Inc. ............................................. 6,400 220,800
FPL Group, Inc. ....................................................... 5,100 218,344
Korea Electric Power Corp. (ADR)....................................... 7,000 117,250
Pinnacle West Capital Corp. ........................................... 6,300 192,544
-------------
1,257,488
-------------
UTILITY -- GAS (0.0%)
Anglian Water PLC...................................................... 6,000 4,889
-------------
</TABLE>
FSA-15
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CREDIT-SENSITIVE (CONTINUED)
UTILITY -- TELEPHONE (2.7%)
AT&T Corp. ............................................................ 14,391 $ 730,343
Bell Atlantic Corp. ................................................... 10,400 640,250
GTE Corp. ............................................................. 7,100 500,994
Nippon Telegraph & Telephone Corp. .................................... 10 170,815
SBC Communications, Inc. .............................................. 20,586 1,003,567
Sprint Corp. (FON Group)............................................... 7,600 511,575
Telefonica SA*......................................................... 10,671 265,342
Telekom Malaysia BHD................................................... 7,000 27,079
-------------
3,849,965
-------------
TOTAL CREDIT-SENSITIVE (10.5%)......................................... 14,993,711
-------------
ENERGY
OIL -- DOMESTIC (0.4%)
Kerr-McGee Corp........................................................ 5,500 341,000
Murphy Oil Corp........................................................ 4,900 281,138
-------------
622,138
-------------
OIL -- INTERNATIONAL (2.0%)
Chevron Corp........................................................... 5,600 485,100
Exxon Mobil Corp....................................................... 8,956 721,517
Gulf Indonesia Resources Ltd.*......................................... 800 6,500
Repsol SA.............................................................. 6,900 159,259
Shell Transport & Trading Co. PLC...................................... 17,400 856,950
Total Fina SA (Series B)............................................... 2,700 358,698
Total Fina SA-Sponsored (ADR).......................................... 3,700 256,225
-------------
2,844,249
-------------
OIL -- SUPPLIES & CONSTRUCTION (0.3%)
Noble Drillng Corp.* .................................................. 12,000 393,000
Woodside Petroleum Ltd................................................. 10,000 73,586
-------------
466,586
-------------
RAILROADS (0.1%)
Burlington Northern Santa Fe Corp. .................................... 3,400 82,450
-------------
TOTAL ENERGY (2.8%).................................................... 4,015,423
-------------
TECHNOLOGY
ELECTRONICS (5.4%)
Altera Corp.*.......................................................... 5,518 273,486
Applied Matrials, Inc.*................................................ 4,800 608,100
</TABLE>
FSA-16
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
ELECTRONICS (5.4%) (CONTINUED)
Cisco Systems, Inc.*................................................... 19,150 $ 2,051,443
eBay, Inc.*............................................................ 1,100 137,706
Intel Corp............................................................. 18,272 1,504,013
Lexmark International Group, Inc. (Class A)*........................... 2,800 253,400
Motorola, Inc.......................................................... 2,800 412,300
RealNetworks, Inc.*.................................................... 1,400 169,663
Sanmina Corp.*......................................................... 3,200 319,600
Solectron Corp.*....................................................... 5,100 485,138
TDK Corp............................................................... 1,000 137,726
Tokyo Electron Limited................................................. 6,000 819,912
Yahoo!, Inc.*.......................................................... 400 173,075
3Com Corp.*............................................................ 6,600 310,200
-------------
7,655,762
-------------
OFFICE EQUIPMENT (2.2%)
Cannon, Inc............................................................ 19,000 752,953
Dell Computer Corp.*................................................... 17,800 907,800
International Business Machines Corp................................... 6,200 669,600
Softbank Corp.*........................................................ 700 668,228
Sun Microsystems, Inc.*................................................ 2,900 224,569
-------------
3,223,150
-------------
OFFICE EQUIPMENT SERVICES (3.5%)
Computer Sciences Corp.*............................................... 3,000 283,875
First Data Corp........................................................ 7,100 350,119
Gateway, Inc.*......................................................... 4,800 345,900
Intuit, Inc.*.......................................................... 5,500 329,656
Microsoft Corp.*....................................................... 26,000 3,035,500
Oracle Corp.*.......................................................... 5,100 571,518
Tetra Tech, Inc.*...................................................... 4,400 67,650
-------------
4,984,218
-------------
TELECOMMUNICATIONS (4.9%)
America Online, Inc.*.................................................. 13,500 1,018,405
China Telecom (Hong Kong) Ltd.*........................................ 52,000 325,084
DDI Corp............................................................... 25 341,630
Equant N.V.*........................................................... 2,000 225,997
Equant N.V. (Registered Shares)*....................................... 2,100 235,200
Global TeleSystems Group, Inc.*........................................ 8,400 290,850
Keppel Telecommunications & Transportation Ltd. ....................... 15,000 24,400
Korea Telecom Corp. (ADR).............................................. 1,731 129,392
</TABLE>
FSA-17
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
TELECOMMUNICATIONS (4.9%) (CONTINUED)
Lucent Technologies, Inc............................................... 10,575 $ 791,142
Mannesmann AG.......................................................... 1,600 385,659
MCI WorldCom, Inc.*.................................................... 16,986 901,320
Nokia Oyj*............................................................. 3,500 631,670
Nortel Networks Corp................................................... 2,900 292,900
NTT Mobile Communications Network, Inc................................. 12 460,322
Pacific Internet*...................................................... 400 18,775
PSINet, Inc*........................................................... 2,900 179,075
Sonera Oyj*............................................................ 3,500 238,806
United Pan-Europe Communications N.V.*................................. 3,500 445,678
Winstar Communications, Inc.* ......................................... 590 44,176
-------------
6,980,481
-------------
TOTAL TECHNOLOGY (16.0%)............................................... 22,843,611
-------------
DIVERSIFIED
MISCELLANEOUS (1.1%)
Citic Pacific Ltd. .................................................... 45,000 169,314
Honeywell International, Inc. ......................................... 9,325 537,936
Tyco International Ltd. ............................................... 12,910 501,876
U.S. Industries, Inc................................................... 12,900 180,600
Viad Corp.............................................................. 5,700 158,888
-------------
TOTAL DIVERSIFIED (1.1%)............................................... 1,548,614
-------------
TOTAL COMMON STOCKS (50.3%)
(Cost $51,061,608).................................................. 71,663,489
-------------
PREFERRED STOCKS:
CONSUMER CYCLICALS
LEISURE-RELATED (0.1%)
Royal Caribbean Cruises Ltd.
7.25% Conv. ........................................................ 500 76,219
-------------
TOTAL CONSUMER CYCLICALS (0.1%)........................................ 76,219
-------------
CONSUMER NONCYCLICALS
DRUGS (0.0%)
Akermes, Inc.
6.5% Conv........................................................... 300 25,856
-------------
TOTAL CONSUMER NONCYCLICALS (0.0%)..................................... 25,856
-------------
</TABLE>
FSA-18
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CREDIT-SENSITIVE
UTILITY -- ELECTRIC (0.1%)
AES Trust
$2.6875 Conv. Series A.............................................. 1,800 $ 189,000
-------------
TOTAL CREDIT-SENSITIVE (0.1%).......................................... 189,000
-------------
TECHNOLOGY
ELECTRONICS (0.3%)
Omnipoint Corp.
7.0% Conv. ......................................................... 1,400 275,538
Times Mirror Co.
4.25% Conv. ........................................................ 800 99,150
-------------
374,688
-------------
TELECOMMUNICATIONS (1.0%)
Adelphia Communications Corp.
5.5% Conv. ......................................................... 900 170,550
Amdocs Ltd.
6.75% Conv. ........................................................ 8,700 279,487
MediaOne Group, Inc.
3.04% Conv.* ....................................................... 3,600 172,800
NEXTLINK Communications, Inc.
3.25% Conv. ........................................................ 2,500 481,875
Winstar Communications, Inc.
7.0% Conv. ......................................................... 4,900 388,325
-------------
1,493,037
-------------
TOTAL TECHNOLOGY (1.3%)................................................ 1,867,725
-------------
TOTAL PREFERRED STOCKS (1.5%)
(Cost $1,349,937)................................................... 2,158,800
-------------
PRINCIPAL
AMOUNT
----------
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
PRINTING, PUBLISHING & BROADCASTING (1.9%)
CBS Corp.
7.15%, 2005......................................................... $ 625,000 613,206
Time Warner, Inc.
6.625%, 2029........................................................ 2,500,000 2,131,700
-------------
2,744,906
-------------
</TABLE>
FSA-19
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BUSINESS SERVICES (CONTINUED)
PROFESSIONAL SERVICES (0.3%)
Doubleclick, Inc.
4.75% Conv., 2006................................................... $ 145,000 $ 452,038
-------------
TOTAL BUSINESS SERVICES (2.2%)......................................... 3,196,944
-------------
CAPITAL GOODS
MACHINERY (0.0%)
ASM Lithography Holding N.V.
4.25% Conv., 2004................................................... 50,000 59,500
-------------
TOTAL CAPITAL GOODS (0.0%)............................................. 59,500
-------------
CONSUMER CYCLICALS
AUTOS & TRUCKS (1.1%)
Ford Motor Co.
6.375%, 2029........................................................ 1,800,000 1,514,128
-------------
RETAIL -- GENERAL (0.1%)
Amazon.Com, Inc.
4.75% Conv., 2009................................................... 165,000 187,275
-------------
TOTAL CONSUMER CYCLICALS (1.2%)........................................ 1,701,403
-------------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (0.2%)
Human Genome Sciences, Inc.
5.5% Conv., 2006.................................................... 75,000 232,594
Res-Care, Inc.
6.0 Conv., 2004..................................................... 115,000 92,575
-------------
TOTAL CONSUMER NONCYCLICALS (0.2%)..................................... 325,169
-------------
</TABLE>
FSA-20
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CREDIT-SENSITIVE
ASSET-BACKED (2.3%)
Carat Auto Receivables Asset Trust
5.58%, 2002......................................................... $ 2,000,000 $ 1,973,120
Carco Auto Loan Master Trust
5.56%, 2001......................................................... 1,280,000 1,263,603
-------------
3,236,723
-------------
BANKS (2.9%)
KBC Bank Funding Trust III
9.86%, 2049......................................................... 1,275,000 1,319,364
St. George Bank Ltd.
7.15%, 2005......................................................... 2,850,000 2,733,435
-------------
4,052,799
-------------
FINANCIAL SERVICES (1.8%)
Ford Motor Credit Co.
5.8%, 2009.......................................................... 800,000 709,200
Morgan Stanley Dean Witter & Co.
5.625%, 2004........................................................ 2,000,000 1,883,860
-------------
2,593,060
-------------
MORTGAGE-RELATED (19.4%)
Federal National Mortgage Association:
6.5%, 2014.......................................................... 1,176,888 1,142,051
7.0%, 2014.......................................................... 2,537,693 2,510,055
7.0%, 2026.......................................................... 747,513 722,956
6.5%, 2028.......................................................... 2,243,047 2,114,220
7.0%, 2028.......................................................... 1,088,313 1,052,560
8.0%, 2028.......................................................... 1,882,081 1,897,980
6.0%, 2029.......................................................... 3,611,160 3,306,094
7.5%, 2029.......................................................... 3,710,193 3,671,331
Government National Mortgage Association:
7.0%, 2027.......................................................... 741,693 716,738
7.0%, 2028.......................................................... 5,423,893 5,241,400
6.5%, 2029.......................................................... 4,786,209 4,496,045
LB Commercial Conduit Mortgage Trust
6.78%, 2030......................................................... 800,000 762,760
-------------
27,634,190
-------------
</TABLE>
FSA-21
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CREDIT-SENSITIVE (CONTINUED)
UTILITY -- ELECTRIC (1.1%)
Texas Utilities
6.375%, 2008........................................................ $ 1,775,000 $ 1,622,829
-------------
U.S. GOVERNMENT (10.5%)
U.S. Treasury Bonds:
8.125%, 2019........................................................ 3,790,000 4,318,231
6.125%, 2029........................................................ 595,000 567,296
U.S. Treasury Notes:...................................................
6.0%, 2000.......................................................... 3,080,000 3,082,889
6.5%, 2001.......................................................... 6,590,000 6,616,775
5.875%, 2004........................................................ 420,000 411,863
-------------
14,997,054
-------------
TOTAL CREDIT-SENSITIVE (38.0%)......................................... 54,136,655
-------------
ENERGY
RAILROADS (1.1%)
Union Pacific Corp.
6.625%, 2029........................................................ 1,800,000 1,519,650
-------------
TOTAL ENERGY (1.1%).................................................... 1,519,650
-------------
TECHNOLOGY
ELECTRONICS (3.5%)
Advanced Energy Industries
5.25% Conv., 2006................................................... 115,000 135,700
America Online, Inc.
4.0%% Conv., 2002................................................... 35,000 404,688
Amkor Technologies, Inc.
5.75% Conv., 2003................................................... 165,000 357,638
Bea Systems, Inc.
4.0% Conv., 2006.................................................... 5,000 5,847
Checkfree Holdings Corp.
6.5% Conv., 2006.................................................... 85,000 133,875
Comverse Technology, Inc.
4.5% Conv., 2005.................................................... 180,000 614,925
Conexant Systems Inc.
4.25% Conv., 2006................................................... 135,000 398,756
EMC Corp.
3.25% Conv., 2002................................................... 50,000 482,125
HNC Software, Inc.
4.75% Conv., 2003................................................... 100,000 241,000
</TABLE>
FSA-22
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
ELECTRONICS (3.5%) (CONTINUED)
Intel Corp.
4.0% Conv., 2004.................................................... $ 120,000 $ 322,200
12 Technologies, Inc.
5.25% Conv., 2006................................................... 80,000 115,800
Lattice Semiconductor Co.
4.75% Conv., 2006................................................... 125,000 164,375
LSI Logic Corp.
4.25% Conv., 2004................................................... 155,000 349,913
Sanmina Corp.
4.25% Conv., 2004................................................... 315,000 410,288
Siebel Systems, Inc.
5.5% Conv., 2006.................................................... 120,000 232,800
Solectron Corp.
Zero Coupon, Conv., 2019............................................ 610,000 457,500
STMicroelectronics N.V.
Zero Coupon, Conv., 2009............................................ 145,000 200,100
------------
5,027,530
------------
TELECOMMUNICATIONS (1.1%)
CNET, Inc.
5.0% Conv., 2006.................................................... 55,000 90,407
Global TeleSystems Group, Inc.
5.75% Conv., 2010................................................... 225,000 304,875
NTL Incorporated
7.0% Conv., 2008.................................................... 175,000 461,780
Nextel Communications, Inc.
4.75% Conv., 2007................................................... 290,000 657,938
------------
1,515,000
------------
TOTAL TECHNOLOGY (4.6%)................................................ 6,542,530
------------
TOTAL LONG-TERM DEBT SECURITIES (47.3%)
(Amortized Cost $67,574,628)........................................ 67,481,851
------------
PARTICIPATION IN SEPARATE ACCOUNT NO. 2A,
at amortized cost, which approximates
market value, equivalent to 117 units
at $300.60 each (0.0%).............................................. 35,179
------------
TOTAL INVESTMENTS (99.1%)
(Cost/Amortized Cost $120,021,352).................................. 141,339,319
OTHER ASSETS LESS LIABILITIES (0.9%)................................... 1,304,832
------------
NET ASSETS (100.0%).................................................... $142,644,151
============
</TABLE>
FSA-23
<PAGE>
SEPARATE ACCOUNT NO. 10 (POOLED)
(THE ALLIANCE BALANCED FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Concluded)
- ------------------------------------------------------------------------------------------------------------------
%
of Investment
- ------------------------------------------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY GLOBAL REGION
<S> <C>
United States**........................................................ 85.9%
Japan.................................................................. 3.9
United Kingdom......................................................... 3.3
Australia.............................................................. 2.0
Netherlands............................................................ 1.0
France................................................................. 0.9
Scandinavia............................................................ 0.9
Southeast Asia......................................................... 0.7
Canada................................................................. 0.2
Other European Countries............................................... 1.2
-------
100.0%
=======
</TABLE>
* Non-income producing.
** Includes short term investments.
See Notes to Financial Statements.
FSA-24
<PAGE>
ACCOUNT NO. 4 (POOLED)
(THE ALLIANCE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
December 31, 1999
- --------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments (Notes 2 and 3):
Common stocks -- at market value (cost $1,333,345,581)..................................... $1,777,794,011
Long-term debt securities -- at market value (amortized cost: $7,810,985)................. 11,874,375
Participation in Separate Account No. 2A -- at amortized cost, which approximates
market value, equivalent to 120,801 units at $300.60.................................... 36,312,393
Receivable for investment securities sold.................................................. 6,662,243
Dividends and interest receivable.......................................................... 1,361,064
Total assets............................................................................... 1,834,004,086
- --------------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to Equitable Life's General Account.................................................... 39,371,465
Payable for investment securities purchased................................................ 1,639,781
Custodian fee payable...................................................................... 367,334
Investment management fees payable......................................................... 3,770
Accrued expenses........................................................................... 482,251
- --------------------------------------------------------------------------------------------------------------
Total liabilities.......................................................................... 41,864,601
- --------------------------------------------------------------------------------------------------------------
NET ASSETS................................................................................. $1,792,139,485
==============================================================================================================
Amount retained by Equitable Life in Separate Account No. 4................................ $ 2,714,541
Net assets attributable to contract owners................................................. 1,735,846,337
Net assets attributable to annuity benefits................................................ 53,578,607
- --------------------------------------------------------------------------------------------------------------
NET ASSETS $1,792,139,485
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-25
<PAGE>
SEPARATE ACCOUNT NO. 4 (POOLED)
(THE ALLIANCE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statement of Operations
Year Ended December 31, 1999
- --------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME (NOTE 2):
Dividends ................................................................................. $ 9,728,926
Interest................................................................................... 421,216
- --------------------------------------------------------------------------------------------------------------
Total investment income.................................................................... 10,150,142
- --------------------------------------------------------------------------------------------------------------
EXPENSES (NOTE 4):
Asset and investment management fees....................................................... (7,361,227)
Administrative fees........................................................................ (6,442,906)
Operating expenses......................................................................... (569,529)
- --------------------------------------------------------------------------------------------------------------
Total expenses............................................................................. (14,373,662)
- --------------------------------------------------------------------------------------------------------------
Net investment loss........................................................................ (4,223,520)
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 2):
Realized gain from security and foreign currency transactions ............................. 294,811,943
Change in unrealized appreciation/depreciation of investments.............................. 264,368,034
- --------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments............................................ 559,179,977
- --------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS...................................... $554,956,457
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-26
<PAGE>
SEPARATE ACCOUNT NO. 4 (POOLED)
(THE ALLIANCE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
1999 1998
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss........................................................ $ (4,223,520) $ (5,333,397)
Net realized gain on investments and foreign currency transactions......... 294,811,943 424,897,105
Change in unrealized appreciation/depreciation of investments.............. 264,368,034 (505,981,445)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets attributable to operations........... 554,956,457 (86,417,737)
- --------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions.............................................................. 369,385,670 451,738,195
Withdrawals................................................................ (1,245,308,651) (897,373,357)
- --------------------------------------------------------------------------------------------------------------
Net decrease in net assets attributable to contributions and withdrawals... (875,922,981) (445,635,162)
- --------------------------------------------------------------------------------------------------------------
Net increase in net assets attributable to Equitable Life's transactions... 58,823 23,520
- --------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS .................................................... (320,907,701) (532,029,379)
NET ASSETS -- BEGINNING OF YEAR ........................................... 2,113,047,186 2,645,076,565
- --------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR.................................................. $1,792,139,485 $2,113,047,186
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-27
<PAGE>
SEPARATE ACCOUNT NO. 4 (POOLED)
(THE ALLIANCE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999
- --------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS-SPECIALTY (0.4%)
Lyondell Chemical Company.............................................. 600,000 $ 7,650,000
-------------
TOTAL BASIC MATERIALS (0.4%)........................................... 7,650,000
-------------
CONSUMER CYCLICALS
AIRLINES (11.5%)
Alaska Air Group, Inc.*................................................ 540,000 18,967,500
America West Holdings Corp. (Class B)*................................. 90,000 1,867,500
Continental Airlines, Inc. (Class B)*.................................. 2,935,000 130,240,624
Northwest Airlines Corp. (Class A)*.................................... 2,475,000 55,068,750
-------------
206,144,374
-------------
APPAREL, TEXTILE (1.9%)
Mohawk Industries Inc.*................................................ 577,600 15,234,200
Unifi, Inc.*........................................................... 1,575,000 19,392,188
-------------
34,626,388
-------------
AUTO RELATED (1.7%)
Budget Group, Inc.*.................................................... 1,225,000 11,101,563
Dollar Thrifty Automotive Group, Inc.*................................. 780,000 18,671,250
Monaco Coach Corp.*.................................................... 10,200 260,738
-------------
30,033,551
-------------
FOOD SERVICES, LODGING (1.1%)
Extended Stay America, Inc.*........................................... 2,665,000 20,320,625
-------------
HOUSEHOLD FURNITURE, APPLIANCES (0.8%)
Industrie Natuzzi Spa (ADR)............................................ 1,053,900 13,964,175
-------------
LEISURE-RELATED (10.1%)
Carnival Corp. ........................................................ 1,124,200 53,750,813
Cendant Corporation*................................................... 660,000 17,531,250
Metro-Goldwyn-Mayer, Inc.*............................................. 200,000 4,712,500
Park Place Entertainment Corp.*........................................ 600,000 7,500,000
Royal Caribbean Cruises Ltd.*.......................................... 1,950,000 96,159,374
-------------
179,653,937
-------------
</TABLE>
FSA-28
<PAGE>
SEPARATE ACCOUNT NO. 4 (POOLED)
(THE ALLIANCE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- --------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS (CONTINUED)
RETAIL -- GENERAL (1.2%)
Bed Bath & Beyond, Inc.*............................................... 240,000 $ 8,340,000
TJX Cos., Inc. ........................................................ 320,000 6,540,000
Venator Group, Inc.*................................................... 975,000 6,825,000
-------------
21,705,000
-------------
TOTAL CONSUMER CYCLICALS (28.3%)....................................... 506,448,050
-------------
CONSUMER NONCYCLICALS
BEVERAGES (0.2%)
Pepsi Bottling Group, Inc.............................................. 200,000 3,312,500
-------------
HOSPITAL SUPPLIES & SERVICES (5.0%)
Health Management Associates, Inc. (Class A)*.......................... 3,119,200 41,719,300
HEALTHSOUTH Corp.* .................................................... 3,250,000 17,468,750
McKesson HBOC, Inc..................................................... 300,000 6,768,750
Quintiles Transnational Corp.*......................................... 585,000 10,932,188
Tenet Healthcare Corp.*................................................ 535,000 12,572,500
-------------
89,461,488
-------------
MEDIA & CABLE (1.1%)
Rogers Communications, Inc. (Class B)*................................. 620,000 15,345,000
United Globalcom, Inc. (Class A)*...................................... 50,000 3,531,250
-------------
18,876,250
-------------
RETAIL -- FOOD (0.1%)
Kroger Co.*............................................................ 150,000 2,831,250
-------------
TOTAL CONSUMER NONCYCLICALS (6.4%)..................................... 114,481,488
-------------
CREDIT-SENSITIVE
BANKS (0.3%)
Bank of Tokyo-Mitsubishi Ltd. ......................................... 345,000 4,808,438
-------------
FINANCIAL SERVICES (8.9%)
Associates First Capital Corp. (Class A)............................... 650,000 17,834,375
CIT Group, Inc. (Class A).............................................. 399,170 8,432,466
Edwards (A.G.), Inc. .................................................. 805,000 25,810,313
Legg Mason, Inc. ...................................................... 2,965,000 107,481,250
-------------
159,558,404
-------------
</TABLE>
FSA-29
<PAGE>
SEPARATE ACCOUNT NO. 4 (POOLED)
(THE ALLIANCE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CREDIT-SENSITIVE (CONTINUED)
INSURANCE (9.1%)
Ace Ltd. .............................................................. 2,000,000 $ 33,375,000
CAN Financial Corp.*................................................... 3,323,500 129,408,780
------------
162,783,780
------------
REAL ESTATE (0.3%)
Prime Retail, Inc...................................................... 1,000,000 5,625,000
------------
UTILITY -- TELEPHONE (8.4%)
Centurytel, Inc........................................................ 110,100 5,215,988
Tele Celular Sul Participacoes (ADR)................................... 50,000 1,587,500
Tele Centro Oeste Celular Participacoes (ADR).......................... 100,000 650,000
Tele Nordeste Celular Participacoes (ADR).............................. 30,000 1,515,000
Tele Sudeste Celular Participacoes (ADR)............................... 349,300 13,557,206
Telemig Celular Participacoes (ADR).................................... 100,000 4,618,750
Telephone & Data Systems, Inc. ........................................ 790,000 99,540,000
Telesp Celular Participacoes (ADR)..................................... 200,000 8,475,000
Viatel, Inc.*.......................................................... 297,200 15,937,350
------------
151,096,794
------------
TOTAL CREDIT-SENSITIVE (27.0%)......................................... 483,872,416
------------
ENERGY
OIL -- DOMESTIC (2.5%)
Kerr McGee Corp. ...................................................... 585,000 36,270,000
Murphy Oil Corp........................................................ 145,000 8,319,375
------------
44,589,375
------------
OIL -- INTERNATIONAL (0.1%)
IRI International Corporation*......................................... 305,000 1,220,000
------------
OIL -- SUPPLIES & CONSTRUCTION (0.7%)
Stolt Comex Seaway S.A.*............................................... 165,000 1,825,313
Stolt Comex Seaway S.A. (ADR) (Class A)*............................... 1,058,000 11,638,000
------------
13,463,313
------------
TOTAL ENERGY (3.3%).................................................... 59,272,688
------------
</TABLE>
FSA-30
<PAGE>
SEPARATE ACCOUNT NO. 4 (POOLED)
(THE ALLIANCE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- --------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY
ELECTRONICS (0.8%)
ARDENT Software, Inc.*................................................. 150,000 $ 5,850,000
DBT Online, Inc.*...................................................... 359,900 8,772,563
--------------
14,622,563
--------------
OFFICE EQUIPMENT SERVICES (0.6%)
Informix Corporation*.................................................. 887,600 10,096,450
--------------
TELECOMMUNICATIONS (30.4%)
Adelphia Business Solutions*........................................... 90,000 4,320,000
Amdocs Ltd.*........................................................... 515,000 17,767,500
American Satellite Network--Warrants (Expire 06/30/00)*................ 70,000 0
Global TeleSystems Group, Inc.*........................................ 3,980,000 137,807,499
Mannesmann AG.......................................................... 40,000 9,641,482
Millicom International Cellular S.A.*.................................. 2,165,500 135,073,062
NTL Incorporated*...................................................... 820,000 102,295,000
PSINet, Inc.*.......................................................... 237,500 14,665,625
RCN Corporation*....................................................... 710,100 34,439,850
United States Cellular Corp.*.......................................... 885,000 89,329,688
--------------
545,339,706
--------------
TOTAL TECHNOLOGY (31.8%)............................................... 570,058,719
--------------
DIVERSIFIED
MISCELLANEOUS (2.0%)...................................................
U. S. Industries, Inc.................................................. 919,600 12,874,400
Viad Corp.............................................................. 830,000 23,136,250
--------------
TOTAL DIVERSIFIED (2.0%)............................................... 36,010,650
--------------
TOTAL COMMON STOCKS (99.2%)
(Cost $1,333,345,581)............................................... 1,777,794,011
--------------
</TABLE>
FSA-31
<PAGE>
SEPARATE ACCOUNT NO. 4 (POOLED)
(THE ALLIANCE COMMON STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Concluded)
- --------------------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
TECHNOLOGY
TELECOMMUNICATIONS (0.7%)
NTL Incorporated
7.0% Conv. 2008..................................................... $4,500,000 $ 11,874,375
--------------
TOTAL TECHNOLOGY (0.7%)................................................ 11,874,375
--------------
TOTAL LONG TERM DEBT SECURITIES (0.7%)
(Amortized Cost $7,810,985)......................................... 11,874,375
--------------
PARTICIPATION IN SEPARATE ACCOUNT NO. 2A,
at amortized cost, which approximates
market value, equivalent to 120,801
units at $300.60 each (2.0%)........................................ 36,312,393
--------------
TOTAL INVESTMENTS (101.9%)
(Cost/Amortized Cost $1,377,468,959)................................ 1,825,980,779
OTHER ASSETS LESS LIABILITIES (-1.9%)................................. (33,841,294)
--------------
NET ASSETS (100.0%).................................................... $1,792,139,485
==============
Amount retained by Equitable Life in Separate Account No. 4............ $ 2,714,541
Net assets attributable to contract owners............................. 1,735,846,337
Net assets attributable to annuity benefits............................ 53,578,607
--------------
NET ASSETS............................................................. $1,792,139,485
==============
</TABLE>
*Non-income producing.
See Notes to Financial Statements.
FSA-32
<PAGE>
SEPARATE ACCOUNT NO. 3 (POOLED)
(THE ALLIANCE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
December 31, 1999
- --------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments (Notes 2 and 3):
Common stocks -- at market value (cost $157,969,309)....................................... $181,481,988
Participation in Separate Account No. 2A -- at amortized cost, which approximates
market value, equivalent to 9,867 units at $300.60...................................... 2,966,012
Cash....................................................................................... 4,936
Receivable for investment securities sold.................................................. 225,668
Dividends receivable....................................................................... 106,277
- --------------------------------------------------------------------------------------------------------------
Total assets............................................................................... 184,784,881
- --------------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to Equitable Life's General Account.................................................... 842,500
Payable for investment securities purchased................................................ 57,252
Investment management fees payable......................................................... 1,093
Accrued expenses........................................................................... 110,605
- --------------------------------------------------------------------------------------------------------------
Total liabilities.......................................................................... 1,011,450
- --------------------------------------------------------------------------------------------------------------
NET ASSETS................................................................................. $183,773,431
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-33
<PAGE>
SEPARATE ACCOUNT NO. 3 (POOLED)
(THE ALLIANCE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statement of Operations
Year Ended December 31, 1999
- --------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME (NOTE 2):
Dividends.................................................................................. $ 1,545,219
Interest................................................................................... 196,435
- --------------------------------------------------------------------------------------------------------------
Total investment income.................................................................... 1,741,654
- --------------------------------------------------------------------------------------------------------------
EXPENSES (NOTE 4):
Asset and investment management fees ...................................................... (1,438,002)
Administrative fees........................................................................ (1,289,002)
Operating expenses......................................................................... (137,954)
- --------------------------------------------------------------------------------------------------------------
Total expenses............................................................................. (2,864,958)
- --------------------------------------------------------------------------------------------------------------
Net investment loss........................................................................ (1,123,304)
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 2):
Realized gain from security and foreign currency transactions ............................. 48,581,785
Change in unrealized appreciation/depreciation of investments.............................. (17,298,570)
- --------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments............................................ 31,283,215
- --------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS...................................... $30,159,911
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-34
<PAGE>
SEPARATE ACCOUNT NO. 3 (POOLED)
(THE ALLIANCE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
1999 1998
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss........................................................ $ (1,123,304) $ (2,224,854)
Net realized gain (loss) on investments.................................... 48,581,785 (70,824,652)
Change in unrealized appreciation/depreciation of investments.............. (17,298,570) 25,717,615
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets attributable to operations........... 30,159,911 (47,331,891)
- --------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions.............................................................. 142,172,242 227,181,913
Withdrawals................................................................ (264,920,548) (321,651,183)
- --------------------------------------------------------------------------------------------------------------
Net decrease in net assets attributable to contributions and withdrawals... (122,748,306) (94,469,270)
- --------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS .................................................... (92,588,395) (141,801,161)
NET ASSETS -- BEGINNING OF YEAR ........................................... 276,361,826 418,162,987
- --------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR.................................................. $183,773,431 $276,361,826
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-35
<PAGE>
SEPARATE ACCOUNT NO. 3 (POOLED)
(THE ALLIANCE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999
- -------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS -- SPECIALTY (0.6%)
Lyondell Chemical Company ............................................. 86,000 $1,096,500
----------
PAPER (0.5%)
Pentair, Inc........................................................... 23,200 893,200
----------
TOTAL BASIC MATERIALS (1.1%)........................................... 1,989,700
----------
BUSINESS SERVICES
PRINTING, PUBLISHING & BROADCASTING (9.6%)
AMFM, Inc.*............................................................ 24,300 1,901,475
Comcast Corp. (Class A) SPL............................................ 70,400 3,537,600
Hispanic Broadcasting Corp.*........................................... 18,800 1,733,713
Infinity Broadcasting Corp. (Class A)*................................. 114,300 4,136,231
Reader's Digest Association, Inc. (Class A)............................ 40,800 1,193,400
USA Networks, Inc.*.................................................... 93,900 5,187,975
----------
17,690,394
----------
TRUCKING, SHIPPING (1.2%)
Teekay Shipping Corp. ................................................. 134,500 2,143,594
----------
TOTAL BUSINESS SERVICES (10.8%)........................................ 19,833,988
----------
CAPITAL GOODS
MACHINERY (1.3%)
United Rentals, Inc.*.................................................. 145,200 2,486,550
----------
TOTAL CAPITAL GOODS (1.3%)............................................. 2,486,550
----------
CONSUMER CYCLICALS
AIRLINES (5.7%)
Continental Airlines, Inc. (Class B)*.................................. 185,800 8,244,875
Northwest Airlines Corp.*.............................................. 100,500 2,236,125
----------
10,481,000
----------
APPAREL, TEXTILE (4.0%)
Mohawk Industries, Inc.*............................................... 216,500 5,710,188
Unifi, Inc.* .......................................................... 129,100 1,589,544
----------
7,299,732
----------
AUTO-RELATED (0.3%)
Circuit City Stores, Inc.-- CarMax Group*.............................. 195,600 452,325
----------
</TABLE>
FSA-36
<PAGE>
SEPARATE ACCOUNT NO. 3 (POOLED)
(THE ALLIANCE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- --------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS (CONTINUED)
FOOD SERVICES, LODGING (0.8%)
Meristar Hospitality Corp. ............................................ 95,100 $ 1,521,600
------------
HOUSEHOLD FURNITURE, APPLIANCES (0.9%)
Industrie Natuzzi Spa (ADR)............................................ 127,200 1,685,400
------------
LEISURE-RELATED (10.1%)
Cendant Corporation*................................................... 113,200 3,006,875
Harley Davidson, Inc. ................................................. 35,300 2,261,405
Park Place Entertainment Corp.*........................................ 77,500 968,750
Premier Parks, Inc.*................................................... 207,300 5,985,787
Royal Caribbean Cruises Ltd.*.......................................... 130,000 6,410,625
------------
18,633,442
------------
PHOTO & OPTICAL (0.7%)
Bausch & Lomb, Inc..................................................... 19,500 1,334,530
------------
RETAIL -- GENERAL (6.4%)
Bed Bath & Beyond, Inc.*............................................... 130,900 4,548,775
Family Dollar Stores................................................... 99,200 1,618,200
TJX Cos., Inc. ........................................................ 79,600 1,626,825
Venator Group, Inc.*................................................... 550,200 3,851,400
------------
11,645,200
------------
TOTAL CONSUMER CYCLICALS (28.9%)....................................... 53,053,229
------------
CONSUMER NONCYCLICALS
DRUGS (6.1%)
Forest Labs, Inc.*..................................................... 16,900 1,038,294
Genzyme Corporation*................................................... 25,300 1,138,500
Idec Pharmaceuticals Corp.*............................................ 33,800 3,320,850
Medical Manager Corporation*........................................... 32,200 2,712,850
MedImmune, Inc.*....................................................... 17,900 2,969,163
------------
11,179,657
------------
FOOD (0.5%)
Rite Aid Corp.......................................................... 90,100 1,007,994
------------
</TABLE>
FSA-37
<PAGE>
SEPARATE ACCOUNT NO. 3 (POOLED)
(THE ALLIANCE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments --December 31, 1999 (Continued)
- --------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER NONCYCLICALS (CONTINUED)
HOSPITAL SUPPLIES & SERVICES (7.6%)
Columbia/HCA Healthcare Corp. ......................................... 234,200 $ 6,864,988
Health Management Associates, Inc. (Class A)*.......................... 253,300 3,387,888
HEALTHSOUTH Corp.*..................................................... 355,800 1,912,425
Summit Technology, Inc.*............................................... 79,100 924,481
Visx, Inc.*............................................................ 16,500 853,875
-------------
13,943,657
-------------
MEDIA & CABLE (0.6%)
Rogers Communications, Inc. (Class B)*................................. 41,300 1,022,175
-------------
TOTAL CONSUMER NONCYCLICALS (14.8%).................................... 27,153,483
-------------
CREDIT-SENSITIVE
BANKS (0.9%)
Greenpoint Financial Corp.............................................. 66,100 1,574,006
-------------
FINANCIAL SERVICES (2.1%)
Edwards (A.G.), Inc.................................................... 64,000 2,052,000
Paine Webber, Inc...................................................... 45,700 1,773,731
-------------
3,825,731
-------------
INSURANCE (5.7%)
Ace Ltd. .............................................................. 149,100 2,488,106
AFLAC, Inc. ........................................................... 38,300 1,807,281
CNA Financial Corp.*................................................... 157,700 6,140,444
-------------
10,435,831
-------------
REAL ESTATE (1.1%)
Vornado Realty Trust................................................... 62,100 2,018,250
-------------
UTILITY -- TELEPHONE (2.0%)
Centurytel, Inc........................................................ 18,500 876,438
Telephone & Data Systems, Inc.......................................... 22,700 2,860,200
-------------
3,736,638
-------------
TOTAL CREDIT-SENSITIVE (11.8%)......................................... 21,590,456
-------------
</TABLE>
FSA-38
<PAGE>
SEPARATE ACCOUNT NO. 3 (POOLED)
(THE ALLIANCE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments -- December 31, 1999 (Continued)
- --------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY
OIL -- DOMESTIC (1.5%)
Kerr McGee Corp........................................................ 19,700 $ 1,221,400
Murphy Oil Corp........................................................ 26,100 1,497,488
-------------
2,718,888
-------------
OIL -- SUPPLIES & CONSTRUCTION (2.1%)
Diamond Offshore Drilling, Inc. ....................................... 53,500 1,635,094
Noble Drilling Corp.*.................................................. 67,300 2,204,075
-------------
3,839,169
-------------
TOTAL ENERGY (3.6%).................................................... 6,558,057
-------------
TECHNOLOGY
ELECTRONICS (8.6%)
Altera Corp.*.......................................................... 18,900 936,731
BEA Systems, Inc.*..................................................... 16,000 1,119,000
Citrix Systems, Inc.*.................................................. 11,500 1,414,500
CyberSource Corp.*..................................................... 20,800 1,076,400
DBT Online Inc.*....................................................... 46,300 1,128,563
Flextronics International Ltd.*........................................ 30,600 1,407,600
l2 Technologies, Inc.*................................................. 5,400 1,053,000
Rational Software Corp.*............................................... 18,900 928,463
RF Micro Devices, Inc.*................................................ 13,900 951,281
Sanmina Corp.*......................................................... 26,400 2,636,700
Teradyne, Inc.*........................................................ 36,200 2,389,200
Whittman-Hart, Inc.*................................................... 15,200 815,100
-------------
15,856,538
-------------
OFFICE EQUIPMENT SERVICES (2.1%)
American Tower Corp. (Class A)*........................................ 31,700 968,831
Comverse Technology, Inc.*............................................. 20,250 2,931,188
3,900,019
-------------
</TABLE>
FSA-39
<PAGE>
SEPARATE ACCOUNT NO. 3 (POOLED)
(THE ALLIANCE AGGRESSIVE STOCK FUND)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Portfolio of Investments --December 31, 1999 (Concluded)
- --------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
TELECOMMUNICATIONS (15.8%)
Adelphia Business Solutions*........................................... 48,300 $ 2,318,400
Amdocs Ltd.*........................................................... 53,200 1,835,400
American Satellite Network -- Warrants (Expire 06/30/00)*.............. 9,550 0
Crown Castle International Corp.*...................................... 84,600 2,717,775
Global TeleSystems Group, Inc.*........................................ 196,700 6,810,737
McLeod, Inc.*.......................................................... 22,300 1,312,913
Millicom International Cellular S.A.*.................................. 103,000 6,424,625
NTL Incorporated*...................................................... 47,825 5,966,168
RCN Corporation*....................................................... 16,200 785,700
United States Cellular Corp.*.......................................... 8,800 888,250
--------------
29,059,968
--------------
TOTAL TECHNOLOGY (26.5%)............................................... 48,816,525
--------------
TOTAL COMMON STOCK (98.8%)
(Cost $157,969,309)................................................. 181,481,988
--------------
PARTICIPATION IN SEPARATE ACCOUNT NO. 2A,
at amortized cost, which approximates
market value, equivalent to 9,867
units at $300.60 each (1.6%)............................................ 2,966,012
--------------
TOTAL INVESTMENTS (100.4%)
(Cost/Amortized Cost $160,935,321)...................................... 184,448,000
OTHER ASSETS LESS LIABILITIES (-0.4%)...................................... (674,569)
--------------
NET ASSETS (100.0%)........................................................ $ 183,773,431
==============
</TABLE>
*Non-income producing.
See Notes to Financial Statements.
FSA-40
<PAGE>
Report of Independent Accountants
- -------------------------------------------------------------------------------
To the Board of Directors of
The Equitable Life Assurance Society of the United States
and Contractowners of Separate Account No. 51
of The Equitable Life Assurance Society of the United States
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and changes in net assets and the selected per
unit data (included under Condensed Financial Information in the Prospectus of
the Retirement Investment Account) present fairly, in all material respects, the
financial position of the Alliance Money Market Fund, Alliance Intermediate
Government Securities Fund, Alliance Quality Bond Fund, Alliance High Yield
Fund, Alliance Growth & Income Fund, Alliance Equity Index Fund, Alliance Global
Fund, Alliance International Fund, Alliance Small Cap Growth Fund, Alliance
Conservative Investors Fund and Alliance Growth Investors Fund ("EQ Advisors
Trust funds"), separate investment funds of The Equitable Life Assurance Society
of the United States ("Equitable Life") Separate Account No. 51 at December 31,
1999, the results of each of their operations for the year then ended, changes
in each of their net assets for the two years then ended and the selected per
unit data for the periods presented, in conformity with accounting principles
generally accepted in the United States of America. These financial statements
and the selected per unit data (hereafter referred to as "financial statements")
are the responsibility of Equitable Life's management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States of America, which require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of shares owned in The EQ Advisors Trust at December 31, 1999 with the transfer
agent, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 1, 2000
FSA-41
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
December 31, 1999
- -----------------------------------------------------------------------------------------------------------
ALLIANCE ALLIANCE
MONEY INTERMEDIATE ALLIANCE ALLIANCE
MARKET SECURITIES QUALITY BOND HIGH YIELD
FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of EQ Advisors Trust,
at value (Cost:
Alliance Money Market Portfolio -- $12,119,986;
Alliance Intermediate Government Securities
Portfolio -- $1,879,751;
Alliance Quality Bond Portfolio -- $4,702,172;
Alliance High Yield Portfolio -- $6,306,785)
(Note 3) $11,934,781 $ 1,798,732 $ 4,366,129 $ 4,729,754
Receivable for Trust shares sold .................. -- 911 32,519 2,863
Due from Equitable Life's General Account ......... 191,645 -- -- --
- -----------------------------------------------------------------------------------------------------------
Total assets .............................. 12,126,426 1,799,643 4,398,648 4,732,617
- -----------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for Trust shares purchased ................ 186,859 -- -- --
Due to Equitable Life's General Account ........... -- -- 29,849 --
Accrued expenses .................................. 4,786 911 2,664 2,863
- -----------------------------------------------------------------------------------------------------------
Total liabilities ......................... 191,645 911 32,513 2,863
- -----------------------------------------------------------------------------------------------------------
NET ASSETS ........................................ $11,934,781 $ 1,798,732 $ 4,366,135 $ 4,729,754
===========================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-42
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Assets and Liabilities (Continued)
December 31, 1999
- --------------------------------------------------------------------------------------------------------------------------
ALLIANCE
GROWTH & ALLIANCE ALLIANCE ALLIANCE
INCOME EQUITY GLOBAL INTERNATIONAL
FUND INDEX FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of EQ Advisors Trust,
at value (Cost:
Alliance Growth & Income Portfolio -- $23,713,909;
Alliance Equity Index Portfolio -- $40,482,328;
Alliance Global Portfolio -- $33,508,856;
Alliance International Portfolio -- $2,774,141)
(Note 3)................................................. $25,746,920 $50,919,803 $44,972,223 $ 3,563,803
Receivable for Trust shares sold ................................ 511,708 264,649 430,250 52,554
- -------------------------------------------------------------------------------------------------------------------------
Total assets ............................................ 26,258,628 51,184,452 45,402,473 3,616,357
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to Equitable Life's General Account ......................... 498,087 238,095 340,285 50,231
Payable to custodian ............................................ -- -- 74,372 --
Accrued expenses ................................................ 13,621 26,554 28,255 2,323
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities ....................................... 511,708 264,649 442,912 52,554
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS....................................................... $25,746,920 $50,919,803 $44,959,561 $ 3,563,803
=========================================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-43
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Assets and Liabilities (Concluded)
December 31, 1999
- -----------------------------------------------------------------------------------------------------
ALLIANCE ALLIANCE ALLIANCE
SMALL CAP CONSERVATIVE GROWTH
GROWTH INVESTORS INVESTORS
FUND FUND FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments in shares of EQ Advisors Trust,
at value (Cost:
Alliance Small Cap Growth Portfolio -- $2,029,855;
Alliance Conservative Investors Portfolio -- $7,359,129;
Alliance Growth Investors Portfolio -- $64,031,535)
(Note 3) .......................................... $ 2,707,828 $ 7,550,254 $76,099,858
Receivable for Trust shares sold .......................... 23,592 -- 576,150
Due from Equitable Life's General Account ................. -- 87,850 --
- -----------------------------------------------------------------------------------------------------
Total assets ...................................... 2,731,420 7,638,104 76,676,008
- -----------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for Trust shares purchased ........................ -- 86,261 --
Due to Equitable Life's General Account ................... 21,898 -- 552,371
Accrued expenses .......................................... 1,694 10,501 31,599
- -----------------------------------------------------------------------------------------------------
Total liabilities ................................. 23,592 96,762 583,970
- -----------------------------------------------------------------------------------------------------
NET ASSETS ................................................ $ 2,707,828 $ 7,541,342 $76,092,038
=====================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-44
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Operations
Year Ended December 31, 1999
- ----------------------------------------------------------------------------------------------------------------
ALLIANCE
INTERMEDIATE
ALLIANCE GOVERNMENT ALLIANCE
MONEY MARKET SECURITIES QUALITY BOND ALLIANCE HIGH
FUND FUND FUND YIELD FUND
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 2) -- Dividends from
the Trust ......................................... $ 452,386 $ 92,238 $ 229,690 $ 549,944
- ---------------------------------------------------------------------------------------------------------------
EXPENSES (NOTE 4)-- Expense charges .................. (4,929) (1,114) (2,545) (2,589)
- ---------------------------------------------------------------------------------------------------------------
Net investment income ................................ 447,457 91,124 227,145 547,355
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from share transactions ......... 196,256 13,361 1,334 (266,466)
Realized gain distribution from the Trust ............ 340 -- 16,294 5,073
Change in unrealized appreciation/depreciation ....... (165,026) (110,904) (357,938) (464,010)
- ---------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 31,570 (97,543) (340,310) (725,403)
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE
TO OPERATIONS ..................................... $ 479,027 $ (6,419) $(113,165) $(178,048)
===============================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-45
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Operations (Continued)
Year Ended December 31, 1999
- ----------------------------------------------------------------------------------------------------------------------
ALLIANCE
GROWTH & ALLIANCE ALLIANCE ALLIANCE
INCOME EQUITY GLOBAL INTERNATIONAL
FUND INDEX FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 2) -- Dividends from
the Trust ......................................... $ 62,515 $ 466,556 $ 35,980 $ --
- ----------------------------------------------------------------------------------------------------------------------
EXPENSES (NOTE 4) -- Expense charges ................. (14,944) (27,666) (69,524) (1,765)
- ----------------------------------------------------------------------------------------------------------------------
Net investment income (loss) ......................... 47,571 438,890 (33,544) (1,765)
- ----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain from share transactions ................ 3,467,177 10,248,018 5,412,204 83,238
Realized gain distribution from the Trust ............ 2,443,471 419,781 2,988,028 57,354
Change in unrealized appreciation/depreciation ....... (831,249) (1,310,558) 6,149,934 897,508
- ----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments ...... 5,079,399 9,357,241 14,550,166 1,038,100
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS $ 5,126,970 $ 9,796,131 $ 14,516,622 $ 1,036,335
======================================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-46
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Operations (Concluded)
Year Ended December 31, 1999
- ----------------------------------------------------------------------------------------------------
ALLIANCE ALLIANCE ALLIANCE
SMALL CAP CONSERVATIVE GROWTH
GROWTH INVESTORS INVESTORS
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 2)-- Dividends from
the Trust ........................................ $ -- $ 244,743 $ 1,086,404
- ----------------------------------------------------------------------------------------------------
EXPENSES (NOTE 4) -- Expense charges ................ (1,394) (22,631) (67,420)
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) ........................ (1,394) 222,112 1,018,984
- ----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from share transactions ........ (301,994) 221,803 2,398,078
Realized gain distribution from the Trust ........... -- 307,250 6,668,942
Change in unrealized appreciation/depreciation ...... 876,214 (90,653) 6,554,957
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments ..... 574,220 438,400 15,621,977
- ----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS $ 572,826 $ 660,512 $ 16,640,961
====================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-47
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------
ALLIANCE
INTERMEDIATE
ALLIANCE GOVERNMENT
MONEY MARKET FUND SECURITIES FUND
--------------------------- -----------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
- -------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ............................ $ 447,457 $ 300,997 $ 91,124 $ 141,360
Net realized gain (loss) ......................... 196,596 (32,550) 13,361 55,794
Change in unrealized appreciation/depreciation
of investments ................................ (165,026) 90,927 (110,904) 17,973
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets attributable
to operations ................................. 479,027 359,374 (6,419) 215,127
- -------------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions .................................... 16,311,804 5,830,172 536,532 3,214,385
Withdrawals ...................................... (11,999,466) (13,393,539) (1,680,608) (3,469,017)
Administrative fees .............................. (112,930) (72,260) (15,035) (20,328)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets attributable
to contributions and withdrawals .............. 4,199,408 (7,635,627) (1,159,111) (274,960)
- -------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS ................ 4,678,435 (7,276,253) (1,165,530) (59,833)
NET ASSETS -- BEGINNING OF YEAR .................. 7,256,346 14,532,599 2,964,262 3,024,095
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR ........................ $ 11,934,781 $ 7,256,346 $ 1,798,732 $ 2,964,262
===================================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-48
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Changes in Net Assets (Continued)
- ----------------------------------------------------------------------------------------------------------------
ALLIANCE ALLIANCE
QUALITY BOND FUND HIGH YIELD FUND
--------------------------- ---------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ............................... $ 227,145 $ 310,456 $ 547,355 $ 786,097
Net realized gain (loss) ............................ 17,628 193,427 (261,393) 66,848
Change in unrealized appreciation/depreciation
of investments ................................... (357,938) (40,006) (464,010) (1,160,247)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets attributable
to operations .................................... (113,165) 463,877 (178,048) (307,302)
- ----------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions ....................................... 1,837,829 3,798,761 455,669 3,817,614
Withdrawals ......................................... (3,633,714) (1,484,703) (1,345,304) (4,579,269)
Administrative fees ................................. (37,274) (41,593) (42,058) (62,702)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets attributable
to contributions and withdrawals ................. (1,833,159) 2,272,465 (931,693) (824,357)
- ----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS ................... (1,946,324) 2,736,342 (1,109,741) (1,131,659)
NET ASSETS -- BEGINNING OF YEAR ..................... 6,312,459 3,576,117 5,839,495 6,971,154
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR ........................... $ 4,366,135 $ 6,312,459 $ 4,729,754 $ 5,839,495
================================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-49
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------------------------------------------
ALLIANCE ALLIANCE
GROWTH & INCOME FUND EQUITY INDEX FUND
--------------------------- ----------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ............................... $ 47,571 $ 70,962 $ 438,890 $ 462,113
Net realized gain ................................... 5,910,648 3,914,066 10,667,799 3,506,243
Change in unrealized appreciation/depreciation
of investments ................................... (831,249) 849,957 (1,310,558) 6,327,323
- --------------------------------------------------------------------------------------------------------------------
Net increase in net assets attributable to
operations .......................................... 5,126,970 4,834,985 9,796,131 10,295,679
- --------------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions ....................................... 12,139,188 12,995,575 27,927,001 23,328,669
Withdrawals ......................................... (20,285,049) (9,400,026) (35,539,783) (16,252,767)
Administrative fees ................................. (241,311) (212,817) (451,970) (341,425)
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets attributable to
contributions and withdrawals .................... (8,387,172) 3,382,732 (8,064,752) 6,734,477
- --------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS ................... (3,260,202) 8,217,717 1,731,379 17,030,156
NET ASSETS -- BEGINNING OF YEAR ..................... 29,007,122 20,789,405 49,188,424 32,158,268
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR ........................... $ 25,746,920 $ 29,007,122 $ 50,919,803 $ 49,188,424
====================================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-50
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Changes in Net Assets (Continued)
- ----------------------------------------------------------------------------------------------------------------
ALLIANCE ALLIANCE
GLOBAL FUND INTERNATIONAL FUND
--------------------------- ---------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ................. $ (33,544) $ 505,887 $ (1,765) $ 75,617
Net realized gain (loss) ..................... 8,400,232 5,872,976 140,592 (107,136)
Change in unrealized appreciation/depreciation
of investments ............................ 6,149,934 2,494,660 897,508 428,926
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets attributable to
operations ................................. 14,516,622 8,873,523 1,036,335 397,407
- ---------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions ................................ 12,985,246 12,922,064 608,622 1,013,182
Withdrawals .................................. (28,825,806) (20,514,776) (2,002,718) (1,924,662)
Administrative fees .......................... (399,019) (406,220) (33,729) (41,664)
- ---------------------------------------------------------------------------------------------------------------
Net decrease in net assets attributable to
contributions and withdrawals ............. (16,239,579) (7,998,932) (1,427,825) (953,144)
- ---------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS ............ (1,722,957) 874,591 (391,490) (555,737)
NET ASSETS -- BEGINNING OF YEAR .............. 46,682,518 45,807,927 3,955,293 4,511,030
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR .................... $ 44,959,561 $ 46,682,518 $ 3,563,803 $ 3,955,293
===============================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-51
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Changes in Net Assets (Continued)
- ----------------------------------------------------------------------------------------------------------------
ALLIANCE ALLIANCE
SMALL CAP CONSERVATIVE INVESTORS
GROWTH FUND FUND
--------------------------- ---------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ........................ $ (1,394) $ (1,138) $ 222,112 $ 279,141
Net realized gain (loss) ............................ (301,994) (139,664) 529,053 975,338
Change in unrealized appreciation/depreciation
of investments ................................... 876,214 (108,628) (90,653) (164,213)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets attributable
to operations .................................... 572,826 (249,430) 660,512 1,090,266
- ----------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions ....................................... 1,424,459 2,739,194 2,289,275 2,732,417
Withdrawals ......................................... (2,216,616) (1,780,689) (2,330,352) (8,197,701)
Administrative fees ................................. (25,696) (39,083) (72,625) (83,253)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets attributable to
contributions and withdrawals .................... (817,853) 919,422 (113,702) (5,548,537)
- ----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS ................... (245,027) 669,992 546,810 (4,458,271)
NET ASSETS -- BEGINNING OF YEAR ..................... 2,952,855 2,282,863 6,994,532 11,452,803
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF YEAR ........................... $ 2,707,828 $ 2,952,855 $ 7,541,342 $ 6,994,532
================================================================================================================
</TABLE>
See Notes to Financial Statements
FSA-52
<PAGE>
SEPARATE ACCOUNT NO. 51 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Changes in Net Assets (Concluded)
- ------------------------------------------------------------------------------
ALLIANCE
GROWTH INVESTORS FUND
----------------------------
YEAR ENDED
DECEMBER 31,
1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........................ $ 1,018,984 $ 1,201,529
Net realized gain ............................ 9,067,020 7,064,044
Change in unrealized appreciation/depreciation
of investments ............................ 6,554,957 2,153,905
Net increase in net assets attributable
to operations ............................. 16,640,961 10,419,478
- -----------------------------------------------------------------------------
FROM CONTRIBUTIONS AND WITHDRAWALS:
Contributions ................................ 14,498,861 12,894,395
Withdrawals .................................. (19,065,275) (16,348,446)
Administrative fees .......................... (440,871) (400,305)
- -----------------------------------------------------------------------------
Net decrease in net assets attributable to
contributions and withdrawals ............. (5,007,285) (3,854,356)
- -----------------------------------------------------------------------------
INCREASE IN NET ASSETS ....................... 11,633,676 6,565,122
NET ASSETS -- BEGINNING OF YEAR .............. 64,458,362 57,893,240
- -----------------------------------------------------------------------------
NET ASSETS -- END OF YEAR .................... $ 76,092,038 $ 64,458,362
=============================================================================
</TABLE>
See Notes to Financial Statements
FSA-53
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Board of Directors of
The Equitable Life Assurance Society of the United States
and the Contractowners of Separate Account No. 66
of The Equitable Life Assurance Society of the United States
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and changes in net assets and the selected per
unit data (included under Condensed Financial Information in the Prospectus of
the Retirement Investment Account) present fairly, in all material respects, the
financial position of the EQ/Alliance Premier Growth Fund, Calvert Socially
Responsible Fund, Capital Guardian International Fund, Capital Guardian Research
Fund, Capital Guardian U.S. Equity Fund, EQ/Evergreen Fund, EQ/Evergreen
Foundation Fund, Lazard Large Cap Value Fund, Lazard Small Cap Value Fund,
Merrill Lynch Basic Value Equity Fund, Merrill Lynch World Strategy Fund, MFS
Emerging Growth Companies Fund, MFS Growth with Income Fund, MFS Research Fund,
Morgan Stanley Emerging Markets Equity Fund, EQ/Putnam Balanced Fund, EQ/Putnam
Growth & Income Fund, EQ/Putnam International Equity Fund, EQ/Putnam Investors
Growth Fund, T. Rowe Price Equity Income Fund, T. Rowe Price International Fund
and Warburg Pincus Small Company Value Fund ("EQ Advisors Trusts funds"),
separate investment funds of The Equitable Life Assurance Society of the United
States ("Equitable Life") Separate Account No. 66 at December 31, 1999, the
results of each of their operations and the changes in each of their net assets
for the periods indicated and the per unit data for the periods presented in
conformity with accounting principles generally accepted in the United States
of America. These financial statements and the selected per unit data (hereafter
referred to as "financial statements") are the responsibility of Equitable
Life's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted
in the United States of America which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of shares owned in The EQ Advisors Trust at
December 31, 1999 with the transfer agent, provide a reasonable basis for the
opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 1, 2000
FSA-54
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
December 31, 1999
- ---------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE CALVERT CAPITAL CAPITAL CAPITAL
PREMIER SOCIALLY GUARDIAN GUARDIAN GUARDIAN
GROWTH RESPONSIBLE INTERNATIONAL RESEARCH US EQUITY
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in shares of EQ Advisors
Trust -- at market value (Notes 2 and 6)
Cost:
$2,366,430................ $2,642,231
1,509................ $1,599
102,027................ $118,063
26,514................ $28,155
413,152................ $415,280
Receivable for Trust
shares purchased................... -- -- 68 13 --
Receivable for policy
related transactions............... 137,730 -- -- -- 163,498
- ---------------------------------------------------------------------------------------------------------------
Total assets.................... 2,779,961 1,599 118,131 28,168 578,778
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for Trust
shares purchased................... 137,730 -- -- 163,498
Payable for policy related
transactions....................... -- -- 68 13 --
- ---------------------------------------------------------------------------------------------------------------
Total liabilities............... 137,730 -- 68 13 163,498
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS........................... 2,642,231 1,599 118,063 28,155 415,280
===============================================================================================================
Amount retained by Equitable Life
in Separate Account 66 (Note 4).... 1,705 1,599 1,930 1,687 1,517
Net Assets Attributable to
Contractowners..................... 2,640,526 -- 116,133 26,468 413,763
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS........................... $2,642,231 $1,599 $118,063 $28,155 $415,280
===============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-55
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Assets and Liabilities (Continued)
December 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
LAZARD MERRILL LYNCH
EQ/EVERGREEN LARGE CAP LAZARD SMALL BASIC VALUE
EQ/EVERGREEN FOUNDATION VALUE CAP VALUE EQUITY
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in shares of EQ Advisors
Trust -- at market value (Notes 2 and 6)
Cost:
$ 1,695................ $1,781
1,517................ $1,591
1,535................ $1,460
1,515................ $1,461
1,090,694................ $1,066,378
Receivable for Trust
shares purchased................... -- -- -- -- --
Receivable for policy
related transactions............... -- -- -- -- 50,542
- ---------------------------------------------------------------------------------------------------------------
Total assets.................... 1,781 1,591 1,460 1,461 1,116,920
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for Trust
shares purchased................... -- -- -- 50,542
Payable for policy related
transactions....................... -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Total liabilities............... -- -- -- -- 50,542
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS........................... 1,781 1,591 1,460 1,461 1,066,378
===============================================================================================================
Amount retained by Equitable Life
in Separate Account 66 (Note 4).... 1,586 1,591 1,460 1,461 1,789
Net Assets Attributable to
Contractowners..................... 195 -- -- -- 1,064,589
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS........................... $1,781 $1,591 $1,460 $1,461 $1,066,378
===============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-56
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Assets and Liabilities (Continued)
December 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
MERRILL MFS EMERGING
LYNCH GROWTH MFS GROWTH
WORLD STRATEGY COMPANIES WITH INCOME MFS RESEARCH
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of EQ Advisors
Trust -- at market value (Notes 2 and 6)
Cost:
$ 634,190.................. $741,542
6,599,941.................. $9,263,899
6,962.................. $7,585
5,737,868.................. $6,947,653
Receivable for Trust
shares purchased..................... 22,378 -- 5 79,446
Receivable for policy
related transactions................. -- 370,821 -- --
- ---------------------------------------------------------------------------------------------------------------
Total assets...................... 763,920 9,634,720 7,590 7,027,099
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for Trust
shares purchased..................... -- 370,821 -- --
Payable for policy related
transactions......................... 19,546 -- 5 79,446
- ---------------------------------------------------------------------------------------------------------------
Total liabilities................. 19,546 370,821 5 79,446
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS............................. 744,374 9,263,899 7,585 6,947,653
===============================================================================================================
Amount retained by Equitable Life
in Separate Account 66 (Note 4)...... 6,355 3,126 1,559 1,472
Net Assets Attributable to
Contractowners....................... 738,019 9,260,773 6,026 6,946,181
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS............................. $744,374 $9,263,899 $7,585 $6,947,653
===============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-57
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Assets and Liabilities (Continued)
December 31, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
MORGAN STANLEY EQ/PUTNAM
EMERGING MARKET EQ/PUTNAM EQ/PUTNAM INTERNATIONAL
MARKET EQUITY BALANCED GROWTH & INCOME EQUITY
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of EQ Advisors
Trust -- at market value (Notes 2 and 6)
Cost:
$ 514,126.................. $676,012
357,446.................. $334,856
364,300.................. $320,055
417,186.................. $417,816
Receivable for Trust
shares purchased..................... 382 145 190 --
Receivable for policy
related transactions................. -- -- -- 332,750
- --------------------------------------------------------------------------------------------------------------
Total assets...................... 676,394 335,001 320,245 750,566
- --------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for Trust
shares purchased..................... -- -- -- 332,750
Payable for policy related
transactions......................... 382 145 190 --
- --------------------------------------------------------------------------------------------------------------
Total liabilities................. 382 145 190 332,750
- --------------------------------------------------------------------------------------------------------------
NET ASSETS............................. 676,012 334,856 320,055 417,816
==============================================================================================================
Amount retained by Equitable Life
in Separate Account 66 (Note 4)...... 3,266 1,617 1,681 1,823
Net Assets Attributable to
Contractowners....................... 672,746 333,239 318,374 415,993
- --------------------------------------------------------------------------------------------------------------
NET ASSETS............................. $676,012 $334,856 $320,055 $417,816
==============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-58
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Assets and Liabilities (Concluded)
December 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
WARBURG PINCUS
EQ/PUTNAM T. ROWE PRICE T. ROWE PRICE SMALL COMPANY
INVESTORS GROWTH EQUITY INCOME INTERNATIONAL VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of EQ Advisors
Trust -- at market value (Notes 2 and 6)
Cost:
$ 104,288.................. $121,845
3,934,103.................. $3,877,176
272,771.................. $351,700
1,769,948.................. $1,779,006
Receivable for Trust
shares purchased..................... 69 32,698 196 47,873
Receivable for policy
related transactions................. -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Total assets...................... 121,914 3,909,874 351,896 1,826,879
- -------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for Trust
shares purchased..................... -- -- -- --
Payable for policy related
transactions......................... 69 32,698 196 47,673
- -------------------------------------------------------------------------------------------------------------
Total liabilities................. 69 32,698 196 47,673
- -------------------------------------------------------------------------------------------------------------
NET ASSETS............................. 121,845 3,877,176 351,700 1,779,206
=============================================================================================================
Amount retained by Equitable Life
in Separate Account 66 (Note 4)...... 1,799 2,099 2,263 69
Net Assets Attributable to
Contractowners....................... 120,046 3,875,077 349,437 1,779,137
- -------------------------------------------------------------------------------------------------------------
NET ASSETS............................. $121,845 $3,877,176 $351,700 $1,779,206
=============================================================================================================
</TABLE>
See Notes to Financial Statements.
FSA-59
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations
Year Ended December 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE CALVERT CAPITAL CAPITAL
PREMIER SOCIALLY GUARDIAN GUARDIAN
GROWTH* RESPONSIBLE* INTERNATIONAL* RESEARCH*
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSE:
Investment Income:
Dividends from The Trust (Note 2)................. $ 1,586 $ -- $ -- $ 47
- ----------------------------------------------------------------------------------------------------------------
Expenses (Note 3):
Expense charges................................... -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS)......................... 1,586 -- -- 47
- ----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) from share transactions......... 52 -- 15 3
Realized gain distribution from Trust................ 5,551 9 -- 4
- ----------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)............................. 5,603 9 15 7
- ----------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation....... 275,801 90 16,035 1,642
- ----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................... 281,404 99 16,050 1,649
- ----------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS........... $282,990 $ 99 $16,050 $1,696
================================================================================================================
</TABLE>
* Commencement of operations on September 2, 1999.
See Notes to Financial Statements.
FSA-60
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations (Continued)
Year Ended December 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
CAPITAL LAZARD
GUARDIAN U.S. EQ/EVERGREEN LARGE CAP
EQUITY* EQ/EVERGREEN FOUNDATION* VALUE*
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSE:
Investment Income:
Dividends from The Trust (Note 2)................. $ 456 $ 6 $ 17 $ 13
- ---------------------------------------------------------------------------------------------------------------
Expenses (Note 3):
Expense charges................................... -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS)......................... 456 6 17 13
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) from share transactions......... -- -- -- --
Realized gain distribution from Trust................ 593 -- -- 22
- ---------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)............................. 593 -- -- 22
- ---------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation....... 2,128 86 74 (75)
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................... 2,721 86 74 (53)
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS........... $3,177 $ 92 $ 91 $ (40)
===============================================================================================================
</TABLE>
* Commencement of operations on September 2, 1999.
See Notes to Financial Statements.
FSA-61
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations (Continued)
Year Ended December 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
MFS
MERRILL LYNCH MERRILL EMERGING
LAZARD SMALL BASIC VALUE LYNCH WORLD GROWTH
CAP VALUE* EQUITY STRATEGY COMPANIES
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSE:
Investment Income:
Dividends from The Trust (Note 2)................. $ 6 $ 13,131 $ 6,048 $ --
- ---------------------------------------------------------------------------------------------------------------
Expenses (Note 3):
Expense charges................................... -- -- 3,175 --
- ---------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS)......................... 6 13,131 2,873 --
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) from share transactions......... -- 59,078 22,616 336,536
Realized gain distribution from Trust................ 9 54,810 9,791 149,431
- ---------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)............................. 9 113,888 32,407 485,967
- ---------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation....... (54) (23,176) 98,166 2,540,148
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................... (45) 90,712 130,573 3,026,115
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS........... $ (39) $103,843 $133,446 $3,026,115
===============================================================================================================
</TABLE>
* Commencement of operations on September 2, 1999.
See Notes to Financial Statements.
FSA-62
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations (Continued)
Year Ended December 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
MORGAN
STANLEY
EMERGING
MFS GROWTH MFS MARKETS EQ/PUTNAM
WITH INCOME* RESEARCH EQUITY BALANCED
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSE:
Investment Income:
Dividends from The Trust (Note 2)................. $ 25 $ 7,727 $ -- $ 8,747
- --------------------------------------------------------------------------------------------------------------
Expenses (Note 3):
Expense charges................................... -- 59,936 -- --
- --------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS)......................... 25 (52,209) -- 8,747
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) from share transactions......... -- 286,084 13,537 15,284
Realized gain distribution from Trust................ -- 159,566 6,550 12,809
- --------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)............................. -- 445,650 20,087 28,093
- --------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation....... 623 893,327 161,679 (26,515)
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................... 623 1,338,977 181,766 1,578
- --------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS........... $ 648 $1,286,768 $181,766 $ 10,325
==============================================================================================================
</TABLE>
* Commencement of operations on September 2, 1999.
See Notes to Financial Statements.
FSA-63
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations (Continued)
Year Ended December 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM EQ/PUTNAM EQ/PUTNAM T. ROWE
GROWTH & INTERNATIONAL INVESTORS PRICE EQUITY
INCOME EQUITY* GROWTH* INCOME
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSE:
Investment Income:
Dividends from The Trust (Note 2)................. $ 6,854 $ 94 $ 2,436 $ 76,591
- ----------------------------------------------------------------------------------------------------------------
Expenses (Note 3):
Expense charges................................... -- -- -- 56,562
- ----------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS)......................... 6,854 94 2,436 20,029
- ----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) from share transactions......... (49,852) -- -- 66,610
Realized gain distribution from Trust................ 37,267 286 13 160,365
- ----------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)............................. (12,585) 286 13 226,975
- ----------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation....... (48,469) 631 17,557 (193,824)
- ----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................... (61,054) 917 17,570 33,151
- ----------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS........... $(54,200) $1,011 $20,006 $ 53,180
================================================================================================================
</TABLE>
* Commencement of operations on September 2, 1999.
See Notes to Financial Statements.
FSA-64
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Operations (Concluded)
Year Ended December 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
WARBURG
T. ROWE PINCUS SMALL
PRICE COMPANY
INTERNATIONAL VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCOME AND EXPENSE:
Investment Income:
Dividends from The Trust (Note 2)............................................ $ 393 $ 3,420
- ----------------------------------------------------------------------------------------------------------------
Expenses (Note 3):
Expense charges.............................................................. -- 23,917
- ----------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS).................................................... 393 (20,497)
- ----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) from share transactions.................................... 34,595 (208,435)
Realized gain distribution from Trust........................................... 5,151 --
- ----------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)........................................................ 39,746 (208,435)
- ----------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/depreciation.................................. 69,941 224,588
- ----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS............................................................... 109,687 16,153
- ----------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS...................................... $110,080 $ (4,344)
================================================================================================================
</TABLE>
* Commencement of operations on September 2, 1999.
See Notes to Financial Statements.
FSA-65
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE CALVERT CAPITAL
PREMIER SOCIALLY GUARDIAN
GROWTH RESPONSIBLE INTERNATIONAL
------------------ ------------------ ----------------
SEPTEMBER 2, SEPTEMBER 2, SEPTEMBER 2,
1999* 1999* 1999*
TO DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31,
1999 1999 1999
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income........................... $ 1,586 $ -- $ --
Net realized gain (loss)........................ 5,603 9 15
Change in unrealized appreciation/depreciation
of investments............................... 275,801 90 16,035
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations.............................. 282,990 99 16,050
- ----------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS, WITHDRAWALS AND TRANSFERS:
Contributions and Transfers..................... 2,360,817 -- 100,581
Withdrawals and Transfers....................... -- -- --
Administrative charges.......................... 3,076 -- 68
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
attributable to contributions and withdrawals. 2,357,741 -- 100,513
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in amount retained by
Equitable Life in Separate Account 66 (Note 4) 1,500 1,500 1,500
- ----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS............... 2,642,231 1,599 118,063
NET ASSETS -- BEGINNING OF PERIOD............... -- -- --
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD..................... $2,642,231 $1,599 $118,063
================================================================================================================
</TABLE>
* Commencement of operations.
See Notes to Financial Statements.
FSA-66
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
CAPITAL CAPITAL
GUARDIAN GUARDIAN
RESEARCH U.S. EQUITY EQ/EVERGREEN
------------------ ------------------ ----------------
SEPTEMBER 2, SEPTEMBER 2, SEPTEMBER 2,
1999* 1999* 1999*
TO DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31,
1999 1999 1999
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income........................... $ 47 $ 456 $ 6
Net realized gain (loss)........................ 7 593 --
Change in unrealized appreciation/depreciation
of investments............................... 1,642 2,128 86
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations.............................. 1,696 3,177 92
- ---------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS, WITHDRAWALS AND TRANSFERS:
Contributions and Transfers..................... 25,000 410,730 189
Withdrawals and Transfers....................... -- -- --
Administrative charges.......................... 41 127 --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
attributable to contributions and withdrawals. 24,959 410,603 189
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in amount retained by
Equitable Life in Separate Account 66 (Note 4) 1,500 1,500 1,500
- ---------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS............... 28,155 415,280 1,781
NET ASSETS -- BEGINNING OF PERIOD............... -- -- --
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD..................... $28,155 $415,280 $1,781
===============================================================================================================
</TABLE>
* Commencement of operations.
See Notes to Financial Statements.
FSA-67
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
LAZARD LAZARD
EQ/EVERGREEN LARGE CAP SMALL CAP
FOUNDATION VALUE VALUE
------------------ ------------------ ---------------
SEPTEMBER 2, SEPTEMBER 2, SEPTEMBER 2,
1999* 1999* 1999*
TO DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31,
1999 1999 1999
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income........................... $ 17 $ 13 $ 6
Net realized gain (loss)........................ -- 22 9
Change in unrealized appreciation/depreciation
of investments............................... 74 (75) (54)
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations.............................. 91 (40) (39)
- -------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS, WITHDRAWALS AND TRANSFERS:
Contributions and Transfers..................... -- -- --
Withdrawals and Transfers....................... -- -- --
Administrative charges.......................... -- -- --
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
attributable to contributions and withdrawals. -- -- --
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in amount retained by
Equitable Life in Separate Account 66 (Note 4) 1,500 1,500 1,500
- -------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS............... 1,591 1,460 1,461
NET ASSETS -- BEGINNING OF PERIOD............... -- -- --
- -------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD..................... $1,591 $1,460 $1,461
=============================================================================================================
</TABLE>
* Commencement of operations.
See Notes to Financial Statements.
FSA-68
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
MERRILL LYNCH
BASIC VALUE MERRILL LYNCH
EQUITY WORLD STRATEGY
--------------------------------- ------------------------------
YEAR ENDED AUGUST 20, 1998* YEARS ENDED
DECEMBER 31, TO DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income........................... $ 13,131 $ 1,440 $ 2,873 $ (2,083)
Net realized gain (loss)........................ 113,888 4,930 32,407 (2,611)
Change in unrealized appreciation/depreciation
of investments............................... (23,176) (1,140) 98,166 31,371
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations.............................. 103,843 5,230 133,446 26,677
- --------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS, WITHDRAWALS AND TRANSFERS:
Contributions and Transfers..................... 1,334,175 192,745 312,753 444,857
Withdrawals and Transfers....................... 517,709 47,417 353,232 182,434
Administrative charges.......................... 5,774 215 336 39
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
attributable to contributions and withdrawals. 810,692 145,113 (40,815) 262,384
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in amount retained by
Equitable Life in Separate Account 66 (Note 4) -- 1,500 -- --
- --------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS............... 914,535 151,843 92,631 289,061
NET ASSETS -- BEGINNING OF PERIOD............... 151,843 -- 651,743 362,682
- --------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD..................... $1,066,378 $151,843 $744,374 $651,743
==============================================================================================================
</TABLE>
* Commencement of operations.
See Notes to Financial Statements.
FSA-69
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
MFS
MFS EMERGING GROWTH WITH
GROWTH COMPANIES INCOME
-------------------------------------- -------------------
YEAR ENDED AUGUST 20, 1998* SEPTEMBER 2, 1999*
DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31,
1999 1998 1999
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income........................... $ -- $ -- $ 25
Net realized gain (loss)........................ 485,967 163 --
Change in unrealized appreciation/depreciation
of investments............................... 2,540,148 123,810 623
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations.............................. 3,026,115 123,973 648
- --------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS, WITHDRAWALS AND TRANSFERS:
Contributions and Transfers..................... 6,895,067 724,459 5,452
Withdrawals and Transfers....................... 1,456,043 18,912 --
Administrative charges.......................... 31,665 595 15
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
attributable to contributions and withdrawals. 5,407,359 704,952 5,437
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in amount retained by
Equitable Life in Separate Account 66 (Note 4) -- 1,500 1,500
- --------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS............... 8,433,474 830,425 7,585
NET ASSETS -- BEGINNING OF PERIOD............... 830,425 -- --
- --------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD..................... $9,263,899 $830,425 $7,585
==============================================================================================================
</TABLE>
* Commencement of operations.
See Notes to Financial Statements.
FSA-70
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
MORGAN STANLEY
MFS EMERGING MARKETS
RESEARCH EQUITY
-------------------------- ---------------------------------
AUGUST 20, 1998*
YEARS ENDED YEAR ENDED TO DECEMBER
DECEMBER 31, DECEMBER 31, 31,
1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income........................... $ (52,209) $ (12,317) $ -- $ 7
Net realized gain (loss)........................ 445,650 24,718 20,087 --
Change in unrealized appreciation/depreciation
of investments............................... 893,327 329,147 161,679 207
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations.............................. 1,286,768 341,548 181,766 214
- ---------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS, WITHDRAWALS AND TRANSFERS:
Contributions and Transfers..................... 5,862,462 2,488,519 652,133 678
Withdrawals and Transfers....................... 3,096,907 703,862 158,660 --
Administrative charges.......................... 19,001 320 1,618 1
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
attributable to contributions and withdrawals. 2,746,554 1,784,337 491,855 677
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in amount retained by
Equitable Life in Separate Account 66 (Note 4) 16,227 -- -- 1,500
- ---------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS............... 4,049,549 2,125,885 673,621 2,391
NET ASSETS -- BEGINNING OF PERIOD............... 2,898,104 772,219 2,391 --
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD..................... $6,947,653 $2,898,104 $676,012 $2,391
===============================================================================================================
</TABLE>
* Commencement of operations.
See Notes to Financial Statements.
FSA-71
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM EQ/PUTNAM
BALANCED GROWTH & INCOME
------------------------------- ------------------------------
YEAR ENDED AUGUST 20,1998* YEAR ENDED AUGUST 20, 1998*
DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31,
1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income........................... $ 8,747 $ 9,281 $ 6,854 $ 389
Net realized gain (loss)........................ 28,093 4,341 (12,585) 350
Change in unrealized appreciation/depreciation
of investments............................... (26,515) 3,926 (48,469) 4,224
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations.............................. 10,325 17,548 (54,200) 4,963
- ------------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS, WITHDRAWALS AND TRANSFERS:
Contributions and Transfers..................... 196,828 531,797 678,735 85,306
Withdrawals and Transfers....................... 369,756 48,297 380,405 11,994
Administrative charges.......................... 4,691 398 3,757 93
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
attributable to contributions and withdrawals. (177,619) 483,102 294,573 73,219
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in amount retained by
Equitable Life in Separate Account 66 (Note 4) -- 1,500 -- 1,500
- ------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS............... (167,294) 502,150 240,373 79,682
NET ASSETS -- BEGINNING OF PERIOD............... 502,150 -- 79,682 --
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD..................... $ 334,856 $502,150 $320,055 $79,682
==================================================================================================================
</TABLE>
* Commencement of operations.
See Notes to Financial Statements.
FSA-72
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
EQ/PUTNAM EQ/PUTNAM
INTERNATIONAL INVESTORS T. ROWE PRICE
EQUITY GROWTH EQUITY INCOME
------------------------------------ -------------------------
SEPTEMBER 2, 1999* SEPTEMBER 2, 1999* YEARS ENDED
TO DECEMBER 31, TO DECEMBER 31, DECEMBER 31,
1999 1999 1999 1998
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income........................... $ 94 $ 2,436 $ 20,029 $ 20,611
Net realized gain (loss)........................ 286 13 226,975 156,080
Change in unrealized appreciation/depreciation
of investments............................... 631 17,557 (193,824) 55,150
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations.............................. 1,011 20,006 53,180 231,841
- -----------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS, WITHDRAWALS AND TRANSFERS:
Contributions and Transfers..................... 415,305 100,466 1,983,241 2,818,502
Withdrawals and Transfers....................... -- -- 2,009,118 1,448,637
Administrative charges.......................... -- 127 2,196 74
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
attributable to contributions and withdrawals. 415,305 100,339 (28,073) 1,369,791
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in amount retained by
Equitable Life in Separate Account 66 (Note 4) 1,500 1,500 61,154 --
- -----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS............... 417,816 121,845 86,261 1,601,632
NET ASSETS -- BEGINNING OF PERIOD............... -- -- 3,790,915 2,189,283
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD..................... $417,816 $121,845 $3,877,176 $3,790,915
=================================================================================================================
</TABLE>
* Commencement of operations.
See Notes to Financial Statements.
FSA-73
<PAGE>
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT NO. 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Statements of Changes in Net Assets (Concluded)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
WARBURG PINCUS
T. ROWE PRICE SMALL COMPANY
INTERNATIONAL VALUE
----------------------------------- ------------------------
YEAR ENDED AUGUST 20, 1998* YEARS ENDED
DECEMBER 31, TO DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income........................... $ 393 $ 1,770 $ (20,497) $ (16,421)
Net realized gain (loss)........................ 39,746 -- (208,435) (45,570)
Change in unrealized appreciation/depreciation
of investments............................... 69,941 8,988 224,588 (148,026)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations.............................. 110,080 10,758 (4,344) (210,017)
- ---------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTIONS, WITHDRAWALS AND TRANSFERS:
Contributions and Transfers..................... 443,638 223,524 1,130,117 2,015,611
Withdrawals and Transfers....................... 432,860 689 1,641,059 1,379,561
Administrative charges.......................... 4,251 -- 2,259 214
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
attributable to contributions and withdrawals. 6,527 222,835 (513,201) 635,836
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in amount retained by
Equitable Life in Separate Account 66 (Note 4) -- 1,500 5,693 --
- ---------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS............... 116,607 235,093 (511,852) 425,819
NET ASSETS -- BEGINNING OF PERIOD............... 235,093 -- 2,291,058 1,865,239
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS -- END OF PERIOD..................... $351,700 $235,093 $1,779,206 $2,291,058
===============================================================================================================
</TABLE>
* Commencement of operations.
See Notes to Financial Statements.
FSA-74
<PAGE>
SEPARATE ACCOUNT NOS. 13 (POOLED), 10 (POOLED), 4 (POOLED),
3 (POOLED), 51 (POOLED) AND 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Separate Account Nos. 13 (Pooled) (the Alliance Bond Fund), 10 (Pooled) (the
Alliance Balanced Fund), 4 (Pooled) (the Alliance Common Stock Fund), 3
(Pooled) (the Alliance Aggressive Stock Fund), 51 (Pooled) (the Alliance
Money Market, Alliance Intermediate Government Securities, Alliance Quality
Bond, Alliance High Yield, Alliance Growth & Income, Alliance Equity Index,
Alliance Global, Alliance International, Alliance Small Cap Growth, Alliance
Conservative Investors and Alliance Growth Investors Funds), 66 (Pooled) (the
EQ/Alliance Premier Growth Fund, Calvert Socially Responsible Fund, Capital
Guardian International Fund, Capital Guardian Research Fund, Capital Guardian
U.S. Equity Fund, EQ/Evergreen Fund, EQ/Evergreen Foundation Fund, Lazard
Large Cap Value Fund, Lazard Small Cap Value Fund, Merrill Lynch Basic
Value Equity Fund, Merrill Lynch World Strategy Fund, MFS Emerging Growth
Companies Fund, MFS Growth with Income Fund, MFS Research Fund, Morgan
Stanley Emerging Markets Equity Fund, EQ/Putnam Balanced Fund, EQ/Putnam
Growth and Income Fund, EQ/Putnam International Equity Fund, EQ/Putnam
Investors Growth Fund, T. Rowe Price Equity Income Fund, T. Rowe Price
International Fund and Warburg Pincus Small Company Value Fund)
("EQ Advisors Trust Funds") of The Equitable Life Assurance Society of the
United States (Equitable Life), a wholly owned subsidiary of AXA Financial,
Inc., were established in conformity with the New York State Insurance
Law. Pursuant to such law, to the extent provided in the applicable
contracts, the net assets in the Funds are not chargeable with liabilities
arising out of any other business of Equitable Life. The amounts retained
by Equitable Life in Separate Account Nos. 4 and 66 may be transferred to
Equitable Life's General Account. These financial statements reflect the
total net assets and results of operations for the Separate Account
Nos. 13, 10, 4, 3, 51 and 66. The Retirement Investment Account Program is
one of the many products participating in these Funds.
Interests of retirement and investment plans for employees, managers and
agents of Equitable Life in Separate Account Nos. 4 and 3 aggregated
$365,557,809 (20.4%) and $79,363,438 (43.2%), respectively, at December 31,
1999 and $323,953,589 (15.3%) and $88,549,620 (32.1%), respectively, at
December 31, 1998, of the net assets in these Funds.
Equitable Life is the investment manager for Separate Account Nos. 13, 10, 4
and 3 (the Equitable Funds). Alliance Capital Management L.P. (Alliance)
serves as the investment adviser to Equitable Life with respect to the
management of the Equitable Funds. Alliance is a publicly traded limited
partnership which is indirectly majority-owned by Equitable Life.
EQ Advisors Trust ("EQAT" or "Trust") commenced operations on May 1, 1997.
EQAT is an open-end, diversified investment management company that sells
shares of a portfolio ("Portfolio") of a mutual fund to separate accounts of
insurance companies. Each Portfolio has separate investment objectives.
For period prior to October 18, 1999, the Alliance portfolios (other than
EQ/Alliance Premier Growth) were part of The Hudson River Trust ("HRT"). On
October 18, 1999, a Substitution of new Portfolios of EQAT for the Portfolios
of HRT was performed. At that time assets of each of the HRT Portfolios were
transferred to the corresponding new Portfolios of EQAT. Class IA shares and
Class IB shares of the HRT became Class IA shares and Class IB shares of
EQAT.
Prior to the Substitution, Alliance managed HRT and was investment advisor
for all the HRT Portfolios. Subsequent to the Substitution Alliance continues
as investment advisor for the Alliance portfolios (including EQ/Alliance
Premier Growth).
Effective September 1999, Equitable Life serves as investment manager of
EQAT. As such Equitable Life oversees the activities of the investment
advisors with respect to EQAT and is responsible for retaining or
discontinuing the services of those advisors. Prior to September 1999, AXA
Advisors, LLC (formerly EQ Financial Consultants, Inc.), a subsidiary of
Equitable Life, served as investment manager to EQAT.
Effective September 1999, AXA Advisors was sold by Equitable Life to an
affiliated company. AXA Advisors, LLC earns fees from EQAT under distribution
agreements held with the Trust. Equitable Life also earns fees under an
investment management agreement with EQAT. Alliance earns fees under an
investment advisory agreement with Equitable Life.
Separate Account No. 51 has eleven investment funds which invest in Class IA
shares of corresponding portfolios of the Trust. The Retirement Investment
Account (RIA) through Separate Account No. 51's eleven investments funds
invests in the following portfolios of the Trust: Alliance Money Market,
Alliance Intermediate Government Securities, Alliance Quality Bond, Alliance
High Yield, Alliance Growth & Income, Alliance Equity Index, Alliance Global,
Alliance International, Alliance Small Cap Growth, Alliance Conservative
Investors and Alliance Growth Investors.
Separate Account No. 66 has twenty-two investment funds which invest
in Class IB shares of corresponding portfolios of the Trust. The Retirement
Investment Account through Separate Account No. 66's invests in the
following portfolios of the Trust: EQ/Alliance Premier Growth Fund, Calvert
Socially Responsible Fund, Capital Guardian International Fund, Capital
Guardian Research Fund, Capital Guardian U.S. Equity Fund, EQ/Evergreen Fund,
EQ/Evergreen Foundation Fund, Lazard Large Cap Value Fund, Lazard Small Cap
Value Fund, Merrill Lynch Basic Value Equity Value Fund, Merrill Lynch
World Strategy Fund, MFS Emerging Growth Companies Fund, MFS Growth with
Income Fund, MFS Research Fund, Morgan Stanley Emerging Markets Equity
Fund, EQ/Putnam Balanced Fund, EQ/Putnam Growth and Income Fund, EQ/Putnam
International Equity Fund, EQ/Putnam Investors Growth Fund, T. Rowe Price
Equity Income Fund, T. Rowe Price International Fund and Warburg Pincus
Small Company
FSA-75
<PAGE>
SEPARATE ACCOUNT NOS. 13 (POOLED), 10 (POOLED), 4 (POOLED),
3 (POOLED), 51 (POOLED) AND 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
Value Fund. Class IB shares are offered at net asset values and are subject
to distribution fees imposed under a distribution plan adopted pursuant to
Rule 12b-1 under the 1940 Act.
Equitable Life and Alliance seek to obtain the best price and execution of
all orders placed for the Portfolios of the Equitable Funds considering all
circumstances. In addition to using brokers and dealers to execute portfolio
security transactions for accounts under their management, Equitable Life and
Alliance may also enter into other types of business and securities
transactions with brokers and dealers, which will be unrelated to allocation
of the Equitable Funds' portfolio transactions.
The accompanying financial statements are prepared in conformity with
accounting principles generally accepted in the United States of America
(GAAP). The preparation of financial statements in accordance with GAAP
requires management to make estimates and assumptions that affect the
reported amounts and disclosures. Actual results could differ from those
estimates.
2. Security transactions are recorded on the trade date. Amortized cost of debt
securities consists of cost adjusted, where applicable, for amortization of
premium or accretion of discount. Dividend income is recorded on the
ex-dividend date; interest income (including amortization of premium and
discount on securities using the effective yield method) is accrued daily.
Realized gains and losses on the sale of investments are computed on the
basis of the identified cost of the related investments sold. Separate
Account Nos. 51 and 66 invest in the shares of EQ Advisors Trust and are
valued at the net asset value per share of the respective funds. The net
asset value is determined by the Trust using the market or fair value of the
underlying assets of the Portfolios. For Separate Account Nos. 51 and 66,
realized gains and losses on investments include gains and losses on
redemptions of the Trust's share (determined on the identified cost basis)
and capital gain distributions from the Trust. Dividends are recorded by the
Trust in the fourth quarter on the ex-dividend date. Capital gains are
distributed by the Trust at the end of each year.
Transactions denominated in foreign currencies are recorded at the rate
prevailing at the date of such transactions. Asset and liability accounts
that are denominated in a foreign currency are adjusted to reflect the
current exchange rate at the end of the period. Transaction gains or losses
resulting from changes in the exchange rate during the reporting period or
upon settlement of the foreign currency transactions are reflected under
"Realized and Unrealized Gain (Loss) on Investments" in the Statement of
Operations.
Forward contracts are agreements to buy or sell a foreign currency for a set
price in the future. During the period the forward contracts are open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking-to-market" on a daily basis to reflect the market value of
the contract at the end of each trading day. The use of forward transactions
involves the risk of imperfect correlation in movements in the price of
forward contracts, interest rates and the underlying hedged assets.
Forward contracts involve elements of both market and credit risk in excess
of the amounts reflected in the Statement of Net Assets. The contract amounts
of these forward contracts reflect the extent of the Accounts' exposure to
off-balance sheet risk. The Accounts bear the market risk which arises from
any changes in security values. Forward contracts are entered into directly
with the counterparty and not through an exchange and can be terminated only
by agreement of both parties to the contract. There is no daily margin
settlement and the fund is exposed to the risk of default by the
counterparty.
Separate Account No. 10 may enter into forward currency contracts in order to
hedge its exposure to changes in foreign currency exchange rates on its
foreign security holdings. A forward contract is a commitment to purchase or
sell a foreign currency at a future date at a negotiated forward rate. The
gain or loss arising from the difference between the original contracts and
the closing of such contracts is included in realized gains or losses from
foreign currency transactions. At December 31, 1999, Separate Account No. 10
had outstanding forward currency contracts to buy/sell foreign currencies as
follows:
<TABLE>
<CAPTION>
Contract Cost on U.S. $
Amount Origination Current Unrealized
(000's) Date Value Depreciation
----------- ----------- ------------- --------------
<S> <C> <C> <C> <C>
Separate Account No. 10
-----------------------
Foreign Currency Sale Contracts:
--------------------------------
British Pounds, settling
01/04/00 - 01/10/00........... 95 $153,006 $153,201 $(195)
Japanese Yen, settling 01/04/00.. 7,944 76,798 77,541 (743)
-------
$(938)
=======
</TABLE>
FSA-76
<PAGE>
SEPARATE ACCOUNT NOS. 13 (POOLED), 10 (POOLED), 4 (POOLED),
3 (POOLED), 51 (POOLED) AND 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Notes to Financial Statements (Continued)
- -------------------------------------------------------------------------------
Equitable Life's internal short-term investment account, Separate
Account No. 2A, was established to provide a more flexible and efficient
vehicle to combine and invest temporary cash positions of certain eligible
accounts (Participating Funds) under Equitable Life's management. Separate
Account No. 2A invests in debt securities maturing in sixty days or less
from the date of the acquisition. At December 31, 1999, the investments
held in Separate Account No. 2A consist of the following:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Amortized
Cost %
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Bankers' Acceptances, 5.70%
due 01/21/00 through 02/24/00....................................... $ 5,140,555 2.3%
Certificates of Deposit, 5.50% - 5.99%
due 01/28/00 through 01/31/00....................................... 9,998,680 4.5
Commercial Paper, 4.45% - 6.45%
due 01/03/00 through 02/15/00....................................... 176,636,726 79.2
U.S. Government Agency,
1.5% due 01/03/00................................................... 30,997,417 13.9
------------------------------------------------------------------------------------------------------------
Total Investments...................................................... 222,773,378 99.9
Other Assets Less Liabilities.......................................... 212,513 0.1
------------------------------------------------------------------------------------------------------------
Net Assets of Separate Account No. 2A ................................. $222,985,891 100.0%
============================================================================================================
Units Outstanding...................................................... 741,808
Unit Value............................................................. $300.60
</TABLE>
Participating Funds purchase or redeem units depending on each participating
account's excess cash availability or cash needs to meet its liabilities.
Separate Account No. 2A is not subject to investment management fees.
Short-term debt securities may also be purchased directly by the Equitable
Funds.
For 1999 and 1998, investment security transactions, excluding short-term
debt securities, were as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------------------------------- -------------------------------------
Stocks and Debt U.S. Government Stocks and Debt U.S. Government
Securities and Agencies Securities and Agencies
----------------- ---------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Fund
Alliance Bond:
1999..................... $ 29,332,313 $ 52,626,222 $ 14,659,571 $ 72,769,493
1998..................... 23,825,694 112,172,627 21,275,286 134,056,066
Alliance Balanced:
1999..................... 89,523,699 65,935,492 143,448,209 82,753,815
1998..................... 87,857,736 98,200,986 144,791,496 122,149,180
Alliance Common Stock:
1999..................... 1,340,597,736 -- 2,209,410,520 --
1998..................... 1,692,067,102 -- 2,151,023,546 --
Alliance Aggressive Stock:
1999..................... 241,091,928 -- 359,200,204 --
1998..................... 681,887,865 -- 780,385,761 --
</TABLE>
3. Investment securities for the Equitable Funds are valued as follows:
Stocks listed on national securities exchanges and certain over-the-counter
issues traded on the National Association of Securities Dealers, Inc.
Automated Quotation (NASDAQ) national market system are valued at the last
sale price, or, if there is no sale, at the latest available bid price.
Foreign securities not traded directly, or in American Depository Receipt
(ADR) form in the United States, are valued at the last sale price in the
local currency on an exchange in the country of origin. Foreign currency is
converted into its U.S. dollar equivalent at current exchange rates.
FSA-77
<PAGE>
SEPARATE ACCOUNT NOS. 13 (POOLED), 10 (POOLED), 4 (POOLED),
3 (POOLED), 51 (POOLED) AND 66 (POOLED)
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Notes to Financial Statements (Concluded)
- --------------------------------------------------------------------------------
Futures and forward contracts are valued at their last sale price or, if
there is no sale, at the latest available bid price.
United States Treasury securities and other obligations issued or guaranteed
by the United States Government, its agencies or instrumentalities are valued
at representative quoted prices.
Long-term (i.e., maturing in more than a year) publicly traded corporate
bonds are valued at prices obtained from a bond pricing service of a major
dealer in bonds when such prices are available; however, in circumstances
where Equitable Life and Alliance deem it appropriate to do so, an
over-the-counter or exchange quotation may be used.
Convertible preferred stocks listed on national securities exchanges are
valued at their last sale price or, if there is no sale, at the latest
available bid price.
Convertible bonds and unlisted convertible preferred stocks are valued at bid
prices obtained from one or more major dealers in such securities; where
there is a discrepancy between dealers, values may be adjusted based on
recent premium spreads to the underlying common stock.
Separate Account No. 2A is valued daily at amortized cost, which approximates
market value. Short-term debt securities purchased directly by the Equitable
Funds which mature in 60 days or less are valued at amortized cost.
Short-term debt securities which mature in more than 60 days are valued at
representative quoted prices.
Investment valuations for the Trust are as follows:
The value of the investments in Separate Account Nos. 51 and 66 held in the
corresponding Trust Portfolios is calculated by multiplying the number of
shares held in each Portfolio by the net asset value per share of that
Portfolio determined as of the close of business each day.
4. Charges and fees relating to the Funds are deducted in accordance
with the terms of the various contracts which participate in the Funds.
These expenses consist of asset management fees, administrative and
sales-related fees, and operating expenses, as specified in each contract.
Depending upon the terms of a contract, sales-related fees and operating
expenses are paid (i) by a reduction of an appropriate number of Fund Units
or (ii) by a direct payment. Asset management fee is deducted in the daily
unit values for the Equitable Funds.
The RIA contract is the sole investor in the following investment funds of
Separate Account No. 66: EQ/Alliance Premier Growth; Calvert Socially
Responsible; Capital Guardian International; Capital Guardian Research;
Capital Guardian U.S. Equity; EQ/Evergreen; EQ/Evergreen Foundation;
Lazard Large Cap Value; Lazard Small Cap Value; Merrill Lynch Basic Value
Equity; MFS Emerging Growth Companies; MFS Growth with Income; Morgan Stanley
Emerging Markets Equity; EQ/Putnam Balanced; EQ/Putnam Growth & Income;
EQ/Putnam International Equity; EQ/Putnam Investors Growth and T. Rowe Price
International. There are no expenses shown in the Statement of Operations for
these funds as the only fees assessed are paid directly by the participant
via liquidation of units.
Administrative fees paid through a liquidation of units in Separate Account
Nos. 51 and 66 are shown in the Statement of Changes of Net Assets. The
aggregate of all other fees are included in Expenses in the Statement of
Operations.
Investments in Separate Account Nos. 51 and 66 are also subject to the
expenses incurred in the underlying Portfolios of the EQ Advisors Trust,
which are reflected through the Portfolios' net asset values.
5. No federal income tax based on net income or realized and unrealized capital
gains was applicable to contracts participating in the Funds by reason of
applicable provisions of the Internal Revenue Code and no federal income tax
payable by Equitable Life will affect such contracts. Accordingly, no
provision for federal income taxes is required.
FSA-78
<PAGE>
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
1999 CONSOLIDATED FINANCIAL STATEMENTS
AND
REPORT OF INDEPENDENT ACCOUNTANTS
<PAGE>
February 1, 2000
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholder of
The Equitable Life Assurance Society of the United States
In our opinion, the accompanying consolidated balance sheets and the related
consolidated statements of earnings, of shareholder's equity and comprehensive
income and of cash flows present fairly, in all material respects, the financial
position of The Equitable Life Assurance Society of the United States and its
subsidiaries ("Equitable Life") at December 31, 1999 and 1998, and the results
of their operations and their cash flows for each of the three years in the
period ended December 31, 1999, in conformity with accounting principles
generally accepted in the United States of America. These financial statements
are the responsibility of Equitable Life's management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
New York, New York
February 1, 2000
F-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------------- --------------
(IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturities:
Available for sale, at estimated fair value............................. $ 18,599.7 $ 18,993.7
Held to maturity, at amortized cost..................................... 133.2 125.0
Mortgage loans on real estate............................................. 3,270.0 2,809.9
Equity real estate........................................................ 1,160.2 1,676.9
Policy loans.............................................................. 2,257.3 2,086.7
Other equity investments.................................................. 671.2 713.3
Investment in and loans to affiliates..................................... 1,201.8 928.5
Other invested assets..................................................... 911.6 808.2
------------- -------------
Total investments..................................................... 28,205.0 28,142.2
Cash and cash equivalents................................................... 628.0 1,245.5
Deferred policy acquisition costs........................................... 4,033.0 3,563.8
Other assets................................................................ 3,868.3 3,054.6
Closed Block assets......................................................... 8,607.3 8,632.4
Separate Accounts assets.................................................... 54,453.9 43,302.3
------------- -------------
TOTAL ASSETS................................................................ $ 99,795.5 $ 87,940.8
============= =============
LIABILITIES
Policyholders' account balances............................................. $ 21,351.4 $ 20,857.5
Future policy benefits and other policyholders' liabilities................. 4,777.6 4,726.4
Short-term and long-term debt............................................... 1,407.9 1,181.7
Other liabilities........................................................... 3,133.6 3,474.3
Closed Block liabilities.................................................... 9,025.0 9,077.0
Separate Accounts liabilities............................................... 54,332.5 43,211.3
------------- -------------
Total liabilities..................................................... 94,028.0 82,528.2
------------- -------------
Commitments and contingencies (Notes 11, 13, 14, 15 and 16)
SHAREHOLDER'S EQUITY
Common stock, $1.25 par value 2.0 million shares authorized, issued
and outstanding........................................................... 2.5 2.5
Capital in excess of par value.............................................. 3,557.2 3,110.2
Retained earnings........................................................... 2,600.7 1,944.1
Accumulated other comprehensive (loss) income............................... (392.9) 355.8
------------- -------------
Total shareholder's equity............................................ 5,767.5 5,412.6
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY.................................. $ 99,795.5 $ 87,940.8
============= =============
</TABLE>
See Notes to Consolidated Financial Statements.
F-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF EARNINGS
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------------ ------------- -------------
(IN MILLIONS)
<S> <C> <C> <C>
REVENUES
Universal life and investment-type product policy fee
income...................................................... $ 1,257.5 $ 1,056.2 $ 950.6
Premiums...................................................... 558.2 588.1 601.5
Net investment income......................................... 2,240.9 2,228.1 2,282.8
Investment (losses) gains, net................................ (96.9) 100.2 (45.2)
Commissions, fees and other income............................ 2,177.9 1,503.0 1,227.2
Contribution from the Closed Block............................ 86.4 87.1 102.5
------------ ------------- -------------
Total revenues.......................................... 6,224.0 5,562.7 5,119.4
------------ ------------- -------------
BENEFITS AND OTHER DEDUCTIONS
Interest credited to policyholders' account balances.......... 1,078.2 1,153.0 1,266.2
Policyholders' benefits....................................... 1,038.6 1,024.7 978.6
Other operating costs and expenses............................ 2,797.3 2,201.2 2,203.9
------------ ------------- -------------
Total benefits and other deductions..................... 4,914.1 4,378.9 4,448.7
------------ ------------- -------------
Earnings from continuing operations before Federal
income taxes and minority interest.......................... 1,309.9 1,183.8 670.7
Federal income taxes.......................................... 332.0 353.1 91.5
Minority interest in net income of consolidated subsidiaries.. 199.4 125.2 54.8
------------ ------------- -------------
Earnings from continuing operations........................... 778.5 705.5 524.4
Discontinued operations, net of Federal income taxes.......... 28.1 2.7 (87.2)
------------ ------------- -------------
Net Earnings.................................................. $ 806.6 $ 708.2 $ 437.2
============ ============= =============
</TABLE>
See Notes to Consolidated Financial Statements.
F-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------------ ------------- -------------
(IN MILLIONS)
<S> <C> <C> <C>
Common stock, at par value, beginning and end of year......... $ 2.5 $ 2.5 $ 2.5
------------ ------------- -------------
Capital in excess of par value, beginning of year............. 3,110.2 3,105.8 3,105.8
Additional capital in excess of par value..................... 447.0 4.4 -
------------ ------------- -------------
Capital in excess of par value, end of year................... 3,557.2 3,110.2 3,105.8
------------ ------------- -------------
Retained earnings, beginning of year.......................... 1,944.1 1,235.9 798.7
Net earnings.................................................. 806.6 708.2 437.2
Dividend paid to the Holding Company.......................... (150.0) - -
------------ ------------- -------------
Retained earnings, end of year................................ 2,600.7 1,944.1 1,235.9
------------ ------------- -------------
Accumulated other comprehensive income,
beginning of year........................................... 355.8 516.3 177.0
Other comprehensive (loss) income............................. (748.7) (160.5) 339.3
------------ ------------- -------------
Accumulated other comprehensive (loss) income, end of year.... (392.9) 355.8 516.3
------------ ------------- -------------
TOTAL SHAREHOLDER'S EQUITY, END OF YEAR....................... $ 5,767.5 $ 5,412.6 $ 4,860.5
============ ============= ============
COMPREHENSIVE INCOME
Net earnings.................................................. $ 806.6 $ 708.2 $ 437.2
------------ ------------- -------------
Change in unrealized (losses) gains, net of reclassification
adjustment.................................................. (776.9) (149.5) 343.7
Minimum pension liability adjustment.......................... 28.2 (11.0) (4.4)
------------ ------------- -------------
Other comprehensive (loss) income............................. (748.7) (160.5) 339.3
------------ ------------- -------------
COMPREHENSIVE INCOME.......................................... $ 57.9 $ 547.7 $ 776.5
============ ============= ============
</TABLE>
See Notes to Consolidated Financial Statements.
F-4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------------ ------------- -------------
(IN MILLIONS)
<S> <C> <C> <C>
Net earnings.................................................. $ 806.6 $ 708.2 $ 437.2
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Interest credited to policyholders' account balances........ 1,078.2 1,153.0 1,266.2
Universal life and investment-type product
policy fee income......................................... (1,257.5) (1,056.2) (950.6)
Investment losses (gains)................................... 96.9 (100.2) 45.2
Change in Federal income tax payable........................ 157.4 123.1 (74.4)
Change in property and equipment............................ (256.3) (81.8) (9.6)
Change in deferred acquisition costs........................ (260.7) (314.0) (220.7)
Other, net.................................................. (168.8) 70.9 399.7
------------ ------------- -------------
Net cash provided by operating activities..................... 195.8 503.0 893.0
------------ ------------- -------------
Cash flows from investing activities:
Maturities and repayments................................... 2,019.0 2,289.0 2,702.9
Sales....................................................... 7,572.9 16,972.1 10,385.9
Purchases................................................... (10,737.3) (18,578.5) (13,205.4)
(Increase) decrease in short-term investments............... (178.3) 102.4 (555.0)
Decrease in loans to discontinued operations................ - 660.0 420.1
Sale of subsidiaries........................................ - - 261.0
Other, net.................................................. (134.8) (341.8) (612.6)
------------ ------------- -------------
Net cash (used) provided by investing activities.............. (1,458.5) 1,103.2 (603.1)
------------ ------------- -------------
Cash flows from financing activities: Policyholders'
account balances:
Deposits.................................................. 2,366.2 1,508.1 1,281.7
Withdrawals............................................... (1,765.8) (1,724.6) (1,886.8)
Net increase (decrease) in short-term financings............ 378.2 (243.5) 419.9
Repayments of long-term debt................................ (41.3) (24.5) (196.4)
Payment of obligation to fund accumulated deficit of
discontinued operations................................... - (87.2) (83.9)
Dividend paid to the Holding Company........................ (150.0) - -
Other, net.................................................. (142.1) (89.5) (62.7)
------------ ------------- -------------
Net cash provided (used) by financing activities.............. 645.2 (661.2) (528.2)
------------ ------------- -------------
Change in cash and cash equivalents........................... (617.5) 945.0 (238.3)
Cash and cash equivalents, beginning of year.................. 1,245.5 300.5 538.8
------------ ------------- -------------
Cash and Cash Equivalents, End of Year........................ $ 628.0 $ 1,245.5 $ 300.5
============ ============= =============
Supplemental cash flow information
Interest Paid............................................... $ 92.2 $ 130.7 $ 217.1
============ ============= =============
Income Taxes Paid........................................... $ 116.5 $ 254.3 $ 170.0
============ ============= =============
</TABLE>
See Notes to Consolidated Financial Statements.
F-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1) ORGANIZATION
The Equitable Life Assurance Society of the United States ("Equitable
Life") is an indirect, wholly owned subsidiary of AXA Financial, Inc. (the
"Holding Company," and collectively with its consolidated subsidiaries,
"AXA Financial"). Equitable Life's insurance business is conducted
principally by Equitable Life and its wholly owned life insurance
subsidiaries, Equitable of Colorado ("EOC"), and, prior to December 31,
1996, Equitable Variable Life Insurance Company ("EVLICO"). Effective
January 1, 1997, EVLICO was merged into Equitable Life. Equitable Life's
investment management business, which comprises the Investment Services
segment, is conducted principally by Alliance Capital Management L.P.
("Alliance"), and Donaldson, Lufkin & Jenrette, Inc. ("DLJ"), an investment
banking and brokerage affiliate. AXA, a French holding company for an
international group of insurance and related financial services companies,
is the Holding Company's largest shareholder, owning approximately 58.0% at
December 31, 1999 (53.0% if all securities convertible into, and options
on, common stock were to be converted or exercised).
On September 20, 1999, as part of AXA Financial's "branding" strategic
initiative, EQ Financial Consultants, Inc., a broker-dealer subsidiary of
Equitable Life, was merged into a new company, AXA Advisors, LLC ("AXA
Advisors"). Also, on September 21, 1999, AXA Advisors was transferred by
Equitable Life to AXA Distribution Holding Corporation ("AXA
Distribution"), a wholly owned indirect subsidiary of the Holding Company,
for $15.3 million. The excess of the sales price over AXA Advisors' book
value has been recorded in Equitable Life's books as a capital
contribution. Equitable Life will continue to develop and market the
"Equitable" brand of life and annuity products, while AXA Distribution and
its subsidiaries begin to assume responsibility for providing financial
advisory services, product distribution and customer relationship
management.
The Insurance segment offers a variety of traditional, variable and
interest-sensitive life insurance products, disability income, annuity
products, mutual fund and other investment products to individuals and
small groups. It also administers traditional participating group annuity
contracts with conversion features, generally for corporate qualified
pension plans, and association plans which provide full service retirement
programs for individuals affiliated with professional and trade
associations. This segment includes Separate Accounts for individual
insurance and annuity products.
The Investment Services segment includes Alliance and the results of DLJ
which are accounted for on an equity basis. In 1999, Alliance reorganized
into Alliance Capital Management Holding L.P. ("Alliance Holding") and
Alliance (the "Reorganization"). Alliance Holding's principal asset is its
interest in Alliance and it functions as a holding entity through which
holders of its publicly traded units own an indirect interest in the
operating partnership. The Company exchanged substantially all of its
Alliance Holding units for units in Alliance ("Alliance Units"). As a
result of the reorganization, the Company was the beneficial owner of
approximately 2% of Alliance Holding and 56% of Alliance. Alliance provides
diversified investment fund management services to a variety of
institutional clients, including pension funds, endowments, and foreign
financial institutions, as well as to individual investors, principally
through a broad line of mutual funds. This segment includes institutional
Separate Accounts which provide various investment options for large group
pension clients, primarily deferred benefit contribution plans, through
pooled or single group accounts. At December 31, 1999, Equitable Life has a
31.7% ownership interest in DLJ. DLJ's businesses include securities
underwriting, sales and trading, merchant banking, financial advisory
services, investment research, venture capital, correspondent brokerage
services, online interactive brokerage services and asset management. DLJ
serves institutional, corporate, governmental and individual clients both
domestically and internationally. Through June 10, 1997, this segment also
includes Equitable Real Estate Investment Management Inc. ("EREIM") which
was sold. EREIM provided real estate investment management services,
property management services, mortgage servicing and loan asset management,
and agricultural investment management.
F-6
<PAGE>
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
-----------------------------------------------------
The accompanying consolidated financial statements are prepared in
conformity with generally accepted accounting principles ("GAAP") which
require management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
The accompanying consolidated financial statements include the accounts of
Equitable Life and certain of its subsidiaries engaged in insurance related
business (collectively, the "Insurance Group"); other subsidiaries,
principally Alliance and through June 10, 1997, EREIM (see Note 5); and
those partnerships and joint ventures in which Equitable Life or its
subsidiaries has control and a majority economic interest (collectively,
including its consolidated subsidiaries, the "Company"). The Company's
investment in DLJ is reported on the equity basis of accounting. Closed
Block assets, liabilities and results of operations are presented in the
consolidated financial statements as single line items (see Note 7). Unless
specifically stated, all other footnote disclosures contained herein
exclude the Closed Block related amounts.
All significant intercompany transactions and balances except those with
the Closed Block, DLJ and discontinued operations (see Note 8) have been
eliminated in consolidation. The years "1999," "1998" and "1997" refer to
the years ended December 31, 1999, 1998 and 1997, respectively. Certain
reclassifications have been made in the amounts presented for prior periods
to conform these periods with the 1999 presentation.
Closed Block
------------
On July 22, 1992, Equitable Life established the Closed Block for the
benefit of certain individual participating policies which were in force on
that date. The assets allocated to the Closed Block, together with
anticipated revenues from policies included in the Closed Block, were
reasonably expected to be sufficient to support such business, including
provision for payment of claims, certain expenses and taxes, and for
continuation of dividend scales payable in 1991, assuming the experience
underlying such scales continues.
Assets allocated to the Closed Block inure solely to the benefit of the
Closed Block policyholders and will not revert to the benefit of the
Holding Company. No reallocation, transfer, borrowing or lending of assets
can be made between the Closed Block and other portions of Equitable Life's
General Account, any of its Separate Accounts or any affiliate of Equitable
Life without the approval of the New York Superintendent of Insurance (the
"Superintendent"). Closed Block assets and liabilities are carried on the
same basis as similar assets and liabilities held in the General Account.
The excess of Closed Block liabilities over Closed Block assets represents
the expected future post-tax contribution from the Closed Block which would
be recognized in income over the period the policies and contracts in the
Closed Block remain in force.
Discontinued Operations
-----------------------
Discontinued operations at December 31, 1999, principally consists of the
Group Non-Participating Wind-Up Annuities ("Wind-Up Annuities"), for which
a premium deficiency reserve has been established. Management reviews the
adequacy of the allowance each quarter and believes the allowance for
future losses at December 31, 1999 is adequate to provide for all future
losses; however, the quarterly allowance review continues to involve
numerous estimates and subjective judgments regarding the expected
performance of Discontinued Operations Investment Assets. There can be no
assurance the losses provided for will not differ from the losses
ultimately realized. To the extent actual results or future projections of
the discontinued operations differ from management's current best estimates
and assumptions underlying the allowance for future losses, the difference
would be reflected in the consolidated statements of earnings in
discontinued operations. In particular, to the extent income, sales
proceeds and holding periods for equity real estate differ from
management's previous assumptions, periodic adjustments to the allowance
are likely to result (see Note 8).
F-7
<PAGE>
Accounting Changes
------------------
In March 1998, the American Institute of Certified Public Accountants
("AICPA") issued Statement of Position ("SOP") 98-1, "Accounting for the
Costs of Computer Software Developed or Obtained for Internal Use," which
requires capitalization of external and certain internal costs incurred to
obtain or develop internal-use computer software during the application
development stage. The Company applied the provisions of SOP 98-1
prospectively effective January 1, 1998. The adoption of SOP 98-1 did not
have a material impact on the Company's consolidated financial statements.
Capitalized internal-use software is amortized on a straight-line basis
over the estimated useful life of the software.
New Accounting Pronouncements
-----------------------------
In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standard ("SFAS") No. 133, "Accounting
for Derivative Instruments and Hedging Activities," which establishes
accounting and reporting standards for derivative instruments, including
certain derivatives embedded in other contracts, and for hedging
activities. It requires all derivatives to be recognized on the balance
sheet at fair value. The accounting for changes in the fair value of a
derivative depends on its intended use. Derivatives not used in hedging
activities must be adjusted to fair value through earnings. Changes in the
fair value of derivatives used in hedging activities will, depending on the
nature of the hedge, either be offset in earnings against the change in
fair value of the hedged item attributable to the risk being hedged or
recognized in other comprehensive income until the hedged item affects
earnings. For all hedging activities, the ineffective portion of a
derivative's change in fair value will be immediately recognized in
earnings. In June 1999, the FASB issued SFAS No. 137, "Accounting for
Derivative Instruments and Hedging Activities - Deferral of the Effective
Date of FASB Statement No. 133," which defers the effective date of SFAS
No. 133 to all fiscal quarters of all fiscal years beginning after June 15,
2000. The Company expects to adopt SFAS No. 133 effective January 1, 2001.
Adjustments resulting from initial adoption of the new requirements will be
reported in a manner similar to the cumulative effect of a change in
accounting principle and will be reflected in net income or accumulated
other comprehensive income based upon existing hedging relationships, if
any. Management currently is assessing the impact of adoption. However,
Alliance's adoption of the new requirements is not expected to have a
significant impact on the Company's consolidated balance sheet or statement
of earnings. Also, since most of DLJ's derivatives are carried at fair
values, the Company's consolidated earnings and financial position are not
expected to be significantly affected by DLJ's adoption of the new
requirements.
Valuation of Investments
------------------------
Fixed maturities identified as available for sale are reported at estimated
fair value. Fixed maturities, which the Company has both the ability and
the intent to hold to maturity, are stated principally at amortized cost.
The amortized cost of fixed maturities is adjusted for impairments in value
deemed to be other than temporary.
Valuation allowances are netted against the asset categories to which they
apply.
Mortgage loans on real estate are stated at unpaid principal balances, net
of unamortized discounts and valuation allowances. Valuation allowances are
based on the present value of expected future cash flows discounted at the
loan's original effective interest rate or the collateral value if the loan
is collateral dependent. However, if foreclosure is or becomes probable,
the measurement method used is collateral value.
Real estate, including real estate acquired in satisfaction of debt, is
stated at depreciated cost less valuation allowances. At the date of
foreclosure (including in-substance foreclosure), real estate acquired in
satisfaction of debt is valued at estimated fair value. Impaired real
estate is written down to fair value with the impairment loss being
included in investment gains (losses), net. Valuation allowances on real
estate held for sale are computed using the lower of depreciated cost or
current estimated fair value, net of disposition costs. Depreciation is
discontinued on real estate held for sale.
F-8
<PAGE>
Policy loans are stated at unpaid principal balances.
Partnerships and joint venture interests in which the Company does not have
control or a majority economic interest are reported on the equity basis of
accounting and are included either with equity real estate or other equity
investments, as appropriate.
Equity securities, comprised of common stock classified as both trading and
available for sale securities, are carried at estimated fair value and are
included in other equity investments.
Short-term investments are stated at amortized cost which approximates fair
value and are included with other invested assets.
Cash and cash equivalents includes cash on hand, amounts due from banks and
highly liquid debt instruments purchased with an original maturity of three
months or less.
All securities are recorded in the consolidated financial statements on a
trade date basis.
Net Investment Income, Investment Gains, Net and Unrealized Investment
----------------------------------------------------------------------
Gains (Losses)
--------------
Net investment income and realized investment gains (losses) (collectively,
"investment results") related to certain participating group annuity
contracts which are passed through to the contractholders are reflected as
interest credited to policyholders' account balances.
Realized investment gains (losses) are determined by specific
identification and are presented as a component of revenue. Changes in
valuation allowances are included in investment gains (losses).
Unrealized gains (losses) on publicly-traded common equity securities
classified as trading securities are reflected in net investment income.
Unrealized investment gains (losses) on fixed maturities and equity
securities available for sale held by the Company are accounted for as a
separate component of accumulated comprehensive income, net of related
deferred Federal income taxes, amounts attributable to discontinued
operations, participating group annuity contracts and deferred policy
acquisition costs ("DAC") related to universal life and investment-type
products and participating traditional life contracts.
Recognition of Insurance Income and Related Expenses
----------------------------------------------------
Premiums from universal life and investment-type contracts are reported as
deposits to policyholders' account balances. Revenues from these contracts
consist of amounts assessed during the period against policyholders'
account balances for mortality charges, policy administration charges and
surrender charges. Policy benefits and claims that are charged to expense
include benefit claims incurred in the period in excess of related
policyholders' account balances.
Premiums from participating and non-participating traditional life and
annuity policies with life contingencies generally are recognized as income
when due. Benefits and expenses are matched with such income so as to
result in the recognition of profits over the life of the contracts. This
match is accomplished by means of the provision for liabilities for future
policy benefits and the deferral and subsequent amortization of policy
acquisition costs.
For contracts with a single premium or a limited number of premium payments
due over a significantly shorter period than the total period over which
benefits are provided, premiums are recorded as income when due with any
excess profit deferred and recognized in income in a constant relationship
to insurance in force or, for annuities, the amount of expected future
benefit payments.
Premiums from individual health contracts are recognized as income over the
period to which the premiums relate in proportion to the amount of
insurance protection provided.
F-9
<PAGE>
Deferred Policy Acquisition Costs
---------------------------------
The costs of acquiring new business, principally commissions, underwriting,
agency and policy issue expenses, all of which vary with and are primarily
related to the production of new business, are deferred. DAC is subject to
recoverability testing at the time of policy issue and loss recognition
testing at the end of each accounting period.
For universal life products and investment-type products, DAC is amortized
over the expected total life of the contract group (periods ranging from 25
to 35 years and 5 to 17 years, respectively) as a constant percentage of
estimated gross profits arising principally from investment results,
mortality and expense margins and surrender charges based on historical and
anticipated future experience, updated at the end of each accounting
period. The effect on the amortization of DAC of revisions to estimated
gross profits is reflected in earnings in the period such estimated gross
profits are revised. The effect on the DAC asset that would result from
realization of unrealized gains (losses) is recognized with an offset to
accumulated other comprehensive income in consolidated shareholder's equity
as of the balance sheet date.
As part of its asset/liability management process, in second quarter 1999,
management initiated a review of the matching of invested assets to
Insurance product lines given their different liability characteristics and
liquidity requirements. As a result of this review, management reallocated
the current and prospective interests of the various product lines in the
invested assets. These asset reallocations and the related changes in
investment yields by product line, in turn, triggered a review of and
revisions to the estimated future gross profits used to determine the
amortization of DAC for universal life and investment-type products. The
revisions to estimated future gross profits resulted in an after-tax
writedown of DAC of $85.6 million (net of a Federal income tax benefit of
$46.1 million).
For participating traditional life policies (substantially all of which are
in the Closed Block), DAC is amortized over the expected total life of the
contract group (40 years) as a constant percentage based on the present
value of the estimated gross margin amounts expected to be realized over
the life of the contracts using the expected investment yield. At December
31, 1999, the expected investment yield, excluding policy loans, generally
ranged from 7.75% grading to 7.5% over a 20 year period. Estimated gross
margin includes anticipated premiums and investment results less claims and
administrative expenses, changes in the net level premium reserve and
expected annual policyholder dividends. The effect on the amortization of
DAC of revisions to estimated gross margins is reflected in earnings in the
period such estimated gross margins are revised. The effect on the DAC
asset that would result from realization of unrealized gains (losses) is
recognized with an offset to accumulated comprehensive income in
consolidated shareholder's equity as of the balance sheet date.
For non-participating traditional life DAC is amortized in proportion to
anticipated premiums. Assumptions as to anticipated premiums are estimated
at the date of policy issue and are consistently applied during the life of
the contracts. Deviations from estimated experience are reflected in
earnings in the period such deviations occur. For these contracts, the
amortization periods generally are for the total life of the policy.
Policyholders' Account Balances and Future Policy Benefits
----------------------------------------------------------
Policyholders' account balances for universal life and investment-type
contracts are equal to the policy account values. The policy account values
represents an accumulation of gross premium payments plus credited interest
less expense and mortality charges and withdrawals.
For participating traditional life policies, future policy benefit
liabilities are calculated using a net level premium method on the basis of
actuarial assumptions equal to guaranteed mortality and dividend fund
interest rates. The liability for annual dividends represents the accrual
of annual dividends earned. Terminal dividends are accrued in proportion to
gross margins over the life of the contract.
For non-participating traditional life insurance policies, future policy
benefit liabilities are estimated using a net level premium method on the
basis of actuarial assumptions as to mortality, persistency and interest
established at policy issue. Assumptions established at policy issue as to
mortality and persistency are based on the Insurance Group's experience
which, together with interest and expense assumptions, includes a margin
for adverse deviation. When the liabilities for future policy benefits plus
the present value of expected future gross premiums for a product are
insufficient to provide for expected future policy benefits
F-10
<PAGE>
and expenses for that product, DAC is written off and thereafter, if
required, a premium deficiency reserve is established by a charge to
earnings. Benefit liabilities for traditional annuities during the
accumulation period are equal to accumulated contractholders' fund balances
and after annuitization are equal to the present value of expected future
payments. Interest rates used in establishing such liabilities range from
2.25% to 11.5% for life insurance liabilities and from 2.25% to 8.35% for
annuity liabilities.
Individual health benefit liabilities for active lives are estimated using
the net level premium method and assumptions as to future morbidity,
withdrawals and interest. Benefit liabilities for disabled lives are
estimated using the present value of benefits method and experience
assumptions as to claim terminations, expenses and interest. While
management believes its disability income ("DI") reserves have been
calculated on a reasonable basis and are adequate, there can be no
assurance reserves will be sufficient to provide for future liabilities.
Claim reserves and associated liabilities for individual DI and major
medical policies were $948.4 million and $951.7 million at December 31,
1999 and 1998, respectively. Incurred benefits (benefits paid plus changes
in claim reserves) and benefits paid for individual DI and major medical
are summarized as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Incurred benefits related to current year.......... $ 150.7 $ 140.1 $ 132.3
Incurred benefits related to prior years........... 64.7 84.2 60.0
------------- ------------ ------------
Total Incurred Benefits............................ $ 215.4 $ 224.3 $ 192.3
============= ============ ============
Benefits paid related to current year.............. $ 28.9 $ 17.0 $ 28.8
Benefits paid related to prior years............... 189.8 155.4 146.2
------------- ------------ ------------
Total Benefits Paid................................ $ 218.7 $ 172.4 $ 175.0
============= ============ ============
</TABLE>
Policyholders' Dividends
------------------------
The amount of policyholders' dividends to be paid (including those on
policies included in the Closed Block) is determined annually by Equitable
Life's board of directors. The aggregate amount of policyholders' dividends
is related to actual interest, mortality, morbidity and expense experience
for the year and judgment as to the appropriate level of statutory surplus
to be retained by Equitable Life.
At December 31, 1999, participating policies, including those in the Closed
Block, represent approximately 23.0% ($47.0 billion) of directly written
life insurance in force, net of amounts ceded.
Federal Income Taxes
--------------------
The Company files a consolidated Federal income tax return with the Holding
Company and its consolidated subsidiaries. Current Federal income taxes are
charged or credited to operations based upon amounts estimated to be
payable or recoverable as a result of taxable operations for the current
year. Deferred income tax assets and liabilities are recognized based on
the difference between financial statement carrying amounts and income tax
bases of assets and liabilities using enacted income tax rates and laws.
Separate Accounts
-----------------
Separate Accounts are established in conformity with the New York State
Insurance Law and generally are not chargeable with liabilities that arise
from any other business of the Insurance Group. Separate Accounts assets
are subject to General Account claims only to the extent the value of such
assets exceeds Separate Accounts liabilities.
F-11
<PAGE>
Assets and liabilities of the Separate Accounts, representing net deposits
and accumulated net investment earnings less fees, held primarily for the
benefit of contractholders, and for which the Insurance Group does not bear
the investment risk, are shown as separate captions in the consolidated
balance sheets. The Insurance Group bears the investment risk on assets
held in one Separate Account; therefore, such assets are carried on the
same basis as similar assets held in the General Account portfolio. Assets
held in the other Separate Accounts are carried at quoted market values or,
where quoted values are not available, at estimated fair values as
determined by the Insurance Group.
The investment results of Separate Accounts on which the Insurance Group
does not bear the investment risk are reflected directly in Separate
Accounts liabilities. For 1999, 1998 and 1997, investment results of such
Separate Accounts were $6,045.5 million, $4,591.0 million and $3,411.1
million, respectively.
Deposits to Separate Accounts are reported as increases in Separate
Accounts liabilities and are not reported in revenues. Mortality, policy
administration and surrender charges on all Separate Accounts are included
in revenues.
Employee Stock Option Plan
--------------------------
The Company accounts for stock option plans sponsored by the Holding
Company, DLJ and Alliance in accordance with the provisions of Accounting
Principles Board Opinion ("APB") No. 25, "Accounting for Stock Issued to
Employees," and related interpretations. In accordance with the opinion,
compensation expense is recorded on the date of grant only if the current
market price of the underlying stock exceeds the option strike price at the
grant date. See Note 22 for the pro forma disclosures for the Holding
Company, DLJ and Alliance required by SFAS No. 123, "Accounting for
Stock-Based Compensation".
F-12
<PAGE>
3) INVESTMENTS
The following tables provide additional information relating to fixed
maturities and equity securities:
<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED ESTIMATED
COST GAINS LOSSES FAIR VALUE
------------- ------------- ------------ -------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
DECEMBER 31, 1999
-----------------
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 14,866.8 $ 139.5 $ 787.0 $ 14,219.3
Mortgage-backed.................... 2,554.5 2.3 87.8 2,469.0
U.S. Treasury, government and
agency securities................ 1,194.1 18.9 23.4 1,189.6
States and political subdivisions.. 110.0 1.4 4.9 106.5
Foreign governments................ 361.8 16.2 14.8 363.2
Redeemable preferred stock......... 286.4 1.7 36.0 252.1
------------- ------------- ------------ -------------
Total Available for Sale............... $ 19,373.6 $ 180.0 $ 953.9 $ 18,599.7
============= ============= ============ =============
Held to Maturity: Corporate......... $ 133.2 $ - $ - $ 133.2
============= ============= ============ =============
Equity Securities:
Common stock available for sale...... 25.5 1.5 17.8 9.2
Common stock trading securities...... 7.2 9.1 2.2 14.1
------------- ------------- ------------ -------------
Total Equity Securities................ $ 32.7 $ 10.6 $ 20.0 $ 23.3
============= ============= ============ =============
December 31, 1998
-----------------
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 14,520.8 $ 793.6 $ 379.6 $ 14,934.8
Mortgage-backed.................... 1,807.9 23.3 .9 1,830.3
U.S. Treasury, government and
agency securities................ 1,464.1 107.6 .7 1,571.0
States and political subdivisions.. 55.0 9.9 - 64.9
Foreign governments................ 363.3 20.9 30.0 354.2
Redeemable preferred stock......... 242.7 7.0 11.2 238.5
------------- ------------- ------------ -------------
Total Available for Sale............... $ 18,453.8 $ 962.3 $ 422.4 $ 18,993.7
============= ============= ============ =============
Held to Maturity: Corporate......... $ 125.0 $ - $ - $ 125.0
============= ============= ============ =============
Equity Securities:
Common stock available for sale...... $ 58.3 $ 114.9 $ 22.5 $ 150.7
============= ============= ============ =============
</TABLE>
For publicly traded fixed maturities and equity securities, estimated fair
value is determined using quoted market prices. For fixed maturities
without a readily ascertainable market value, the Company determines an
estimated fair value using a discounted cash flow approach, including
provisions for credit risk, generally based on the assumption such
securities will be held to maturity. Estimated fair values for equity
securities, substantially all of which do not have a readily ascertainable
market value, have been determined by the Company. Such estimated fair
values do not necessarily represent the values for which these securities
could have been sold at the dates of the consolidated balance sheets. At
December 31, 1999 and 1998, securities without a readily ascertainable
market value having an amortized cost of $3,322.2 million and $3,539.9
million, respectively, had estimated fair values of $3,177.7 million and
$3,748.5 million, respectively.
F-13
<PAGE>
The contractual maturity of bonds at December 31, 1999 is shown below:
<TABLE>
<CAPTION>
AVAILABLE FOR SALE
-------------------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Due in one year or less................................................ $ 479.1 $ 477.8
Due in years two through five.......................................... 2,991.8 2,921.2
Due in years six through ten........................................... 7,197.9 6,813.0
Due after ten years.................................................... 5,864.0 5,666.5
Mortgage-backed securities............................................. 2,554.4 2,469.1
------------ ------------
Total.................................................................. $ 19,087.2 $ 18,347.6
============ ============
</TABLE>
Corporate bonds held to maturity with an amortized cost and estimated fair
value of $133.2 million are due in one year or less.
Bonds not due at a single maturity date have been included in the above
table in the year of final maturity. Actual maturities will differ from
contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties.
The Insurance Group's fixed maturity investment portfolio includes
corporate high yield securities consisting of public high yield bonds,
redeemable preferred stocks and directly negotiated debt in leveraged
buyout transactions. The Insurance Group seeks to minimize the higher than
normal credit risks associated with such securities by monitoring
concentrations in any single issuer or a particular industry group. Certain
of these corporate high yield securities are classified as other than
investment grade by the various rating agencies, i.e., a rating below Baa
or National Association of Insurance Commissioners ("NAIC") designation of
3 (medium grade), 4 or 5 (below investment grade) or 6 (in or near
default). At December 31, 1999, approximately 14.9% of the $18,344.3
million aggregate amortized cost of bonds held by the Company was
considered to be other than investment grade.
In addition, the Insurance Group is an equity investor in limited
partnership interests which primarily invest in securities considered to be
other than investment grade. The carrying values at December 31, 1999 and
1998 were $647.9 million and $562.6 million, respectively.
Investment valuation allowances and changes thereto are shown below:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Balances, beginning of year........................ $ 230.6 $ 384.5 $ 137.1
Additions charged to income........................ 68.2 86.2 334.6
Deductions for writedowns and
asset dispositions............................... (150.2) (240.1) (87.2)
------------- ------------ ------------
Balances, End of Year.............................. $ 148.6 $ 230.6 $ 384.5
============= ============ ============
Balances, end of year comprise:
Mortgage loans on real estate.................... $ 27.5 $ 34.3 $ 55.8
Equity real estate............................... 121.1 196.3 328.7
------------- ------------ ------------
Total.............................................. $ 148.6 $ 230.6 $ 384.5
============= ============ ============
</TABLE>
F-14
<PAGE>
At December 31, 1999, the carrying value of fixed maturities which are
non-income producing for the twelve months preceding the consolidated
balance sheet date was $152.1 million.
The payment terms of mortgage loans on real estate may from time to time be
restructured or modified. The investment in restructured mortgage loans on
real estate, based on amortized cost, amounted to $106.0 million and $115.1
million at December 31, 1999 and 1998, respectively. Gross interest income
on restructured mortgage loans on real estate that would have been recorded
in accordance with the original terms of such loans amounted to $9.5
million, $10.3 million and $17.2 million in 1999, 1998 and 1997,
respectively. Gross interest income on these loans included in net
investment income aggregated $8.2 million, $8.3 million and $12.7 million
in 1999, 1998 and 1997, respectively.
Impaired mortgage loans along with the related provision for losses were as
follows:
<TABLE>
<CAPTION>
DECEMBER 31,
-----------------------------------
1999 1998
-------------- --------------
(IN MILLIONS)
<S> <C> <C>
Impaired mortgage loans with provision for losses.................. $ 142.4 $ 125.4
Impaired mortgage loans without provision for losses............... 2.2 8.6
-------------- --------------
Recorded investment in impaired mortgage loans..................... 144.6 134.0
Provision for losses............................................... (23.0) (29.0)
-------------- --------------
Net Impaired Mortgage Loans........................................ $ 121.6 $ 105.0
============== ==============
</TABLE>
Impaired mortgage loans without provision for losses are loans where the
fair value of the collateral or the net present value of the expected
future cash flows related to the loan equals or exceeds the recorded
investment. Interest income earned on loans where the collateral value is
used to measure impairment is recorded on a cash basis. Interest income on
loans where the present value method is used to measure impairment is
accrued on the net carrying value amount of the loan at the interest rate
used to discount the cash flows. Changes in the present value attributable
to changes in the amount or timing of expected cash flows are reported as
investment gains or losses.
During 1999, 1998 and 1997, respectively, the Company's average recorded
investment in impaired mortgage loans was $141.7 million, $161.3 million
and $246.9 million. Interest income recognized on these impaired mortgage
loans totaled $12.0 million, $12.3 million and $15.2 million ($0.0 million,
$.9 million and $2.3 million recognized on a cash basis) for 1999, 1998 and
1997, respectively.
The Insurance Group's investment in equity real estate is through direct
ownership and through investments in real estate joint ventures. At
December 31, 1999 and 1998, the carrying value of equity real estate held
for sale amounted to $382.2 million and $836.2 million, respectively. For
1999, 1998 and 1997, respectively, real estate of $20.5 million, $7.1
million and $152.0 million was acquired in satisfaction of debt. At
December 31, 1999 and 1998, the Company owned $443.9 million and $552.3
million, respectively, of real estate acquired in satisfaction of debt.
Depreciation of real estate held for production of income is computed using
the straight-line method over the estimated useful lives of the properties,
which generally range from 40 to 50 years. Accumulated depreciation on real
estate was $251.6 million and $374.8 million at December 31, 1999 and 1998,
respectively. Depreciation expense on real estate totaled $21.8 million,
$30.5 million and $74.9 million for 1999, 1998 and 1997, respectively.
F-15
<PAGE>
4) JOINT VENTURES AND PARTNERSHIPS
Summarized combined financial information for real estate joint ventures
(25 individual ventures at both December 31, 1999 and 1998) and for limited
partnership interests accounted for under the equity method, in which the
Company has an investment of $10.0 million or greater and an equity
interest of 10% or greater, follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------
1999 1998
------------- -------------
(IN MILLIONS)
<S> <C> <C>
BALANCE SHEETS
Investments in real estate, at depreciated cost........................ $ 861.1 $ 913.7
Investments in securities, generally at estimated fair value........... 678.4 636.9
Cash and cash equivalents.............................................. 68.4 85.9
Other assets........................................................... 239.3 279.8
------------- -------------
Total Assets........................................................... $ 1,847.2 $ 1,916.3
============= =============
Borrowed funds - third party........................................... $ 354.2 $ 367.1
Borrowed funds - AXA Financial......................................... 28.9 30.1
Other liabilities...................................................... 313.9 197.2
------------- -------------
Total liabilities...................................................... 697.0 594.4
------------- -------------
Partners' capital...................................................... 1,150.2 1,321.9
------------- -------------
Total Liabilities and Partners' Capital................................ $ 1,847.2 $ 1,916.3
============= =============
Equity in partners' capital included above............................. $ 316.5 $ 365.6
Equity in limited partnership interests not included above and other... 524.1 390.1
------------- -------------
Carrying Value......................................................... $ 840.6 $ 755.7
============= =============
</TABLE>
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Revenues of real estate joint ventures............. $ 180.5 $ 246.1 $ 310.5
Revenues of other limited partnership interests.... 455.1 128.9 506.3
Interest expense - third party..................... (39.8) (33.3) (91.8)
Interest expense - AXA Financial................... (2.5) (2.6) (7.2)
Other expenses..................................... (139.0) (197.0) (263.6)
------------- ------------ ------------
Net Earnings....................................... $ 454.3 $ 142.1 $ 454.2
============= ============ ============
Equity in net earnings included above.............. $ 10.5 $ 44.4 $ 76.7
Equity in net earnings of limited partnership
interests not included above..................... 76.0 37.9 69.5
Other.............................................. - - (.9)
------------- ------------ ------------
Total Equity in Net Earnings....................... $ 86.5 $ 82.3 $ 145.3
============= ============ ============
</TABLE>
F-16
<PAGE>
5) NET INVESTMENT INCOME AND INVESTMENT GAINS (LOSSES)
The sources of net investment income follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities................................... $ 1,499.8 $ 1,489.0 $ 1,459.4
Mortgage loans on real estate...................... 253.4 235.4 260.8
Equity real estate................................. 250.2 356.1 390.4
Other equity investments........................... 165.1 83.8 156.9
Policy loans....................................... 143.8 144.9 177.0
Other investment income............................ 161.3 185.7 181.7
------------- ------------ ------------
Gross investment income.......................... 2,473.6 2,494.9 2,626.2
Investment expenses.............................. (232.7) (266.8) (343.4)
------------- ------------ ------------
Net Investment Income.............................. $ 2,240.9 $ 2,228.1 $ 2,282.8
============= ============ ============
</TABLE>
Investment (losses) gains, net, including changes in the valuation
allowances, follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities................................... $ (290.9) $ (24.3) $ 88.1
Mortgage loans on real estate...................... (3.3) (10.9) (11.2)
Equity real estate................................. (2.4) 74.5 (391.3)
Other equity investments........................... 88.1 29.9 14.1
Sale of subsidiaries............................... - (2.6) 252.1
Issuance and sales of Alliance Units............... 5.5 19.8 -
Issuance and sales of DLJ common stock............. 106.0 18.2 3.0
Other.............................................. .1 (4.4) -
------------- ------------ ------------
Investment (Losses) Gains, Net..................... $ (96.9) $ 100.2 $ (45.2)
============= ============ ============
</TABLE>
Writedowns of fixed maturities amounted to $223.2 million, $101.6 million
and $11.7 million for 1999, 1998 and 1997, respectively, and writedowns of
equity real estate amounted to $136.4 million for 1997. In fourth quarter
1997, the Company reclassified $1,095.4 million depreciated cost of equity
real estate from real estate held for the production of income to real
estate held for sale. Additions to valuation allowances of $227.6 million
were recorded upon these transfers. Additionally, in fourth quarter 1997,
$132.3 million of writedowns on real estate held for production of income
were recorded.
For 1999, 1998 and 1997, respectively, proceeds received on sales of fixed
maturities classified as available for sale amounted to $7,138.6 million,
$15,961.0 million and $9,789.7 million. Gross gains of $74.7 million,
$149.3 million and $166.0 million and gross losses of $214.3 million, $95.1
million and $108.8 million, respectively, were realized on these sales. The
change in unrealized investment (losses) gains related to fixed maturities
classified as available for sale for 1999, 1998 and 1997 amounted to
$(1,313.8) million, $(331.7) million and $513.4 million, respectively.
On January 1, 1999, investments in publicly-traded common equity securities
in the General Account portfolio within other equity investments amounting
to $102.3 million were transferred from available for sale securities to
trading securities. As a result of this transfer, unrealized investment
gains of $83.3 million ($43.2 million net of related DAC and Federal income
taxes) were recognized as realized investment gains in the consolidated
statements of earnings. Net unrealized holding gains of $7.0 million were
included in net investment income in the consolidated statements of
earnings for 1999. These trading securities had a carrying value of $14.1
million and costs of $7.2 million at December 31, 1999.
F-17
<PAGE>
During 1999, DLJ completed its offering of a new class of its Common Stock
to track the financial performance of DLJdirect, its online brokerage
business. As a result of this offering, the Company recorded a non-cash
pre-tax realized gain of $95.8 million.
For 1999, 1998 and 1997, investment results passed through to certain
participating group annuity contracts as interest credited to
policyholders' account balances amounted to $131.5 million, $136.9 million
and $137.5 million, respectively.
In 1997, Equitable Life sold EREIM (other than its interest in Column
Financial, Inc.) ("ERE") to Lend Lease Corporation Limited ("Lend Lease"),
for $400.0 million and recognized an investment gain of $162.4 million, net
of Federal income tax of $87.4 million. Equitable Life entered into
long-term advisory agreements whereby ERE continues to provide
substantially the same services to Equitable Life's General Account and
Separate Accounts, for substantially the same fees, as provided prior to
the sale. Through June 10, 1997, the businesses sold reported combined
revenues of $91.6 million and combined net earnings of $10.7 million.
On June 30, 1997, Alliance reduced the recorded value of goodwill and
contracts associated with Alliance's 1996 acquisition of Cursitor Holdings
L.P. and Cursitor Holdings Limited (collectively, "Cursitor") by $120.9
million since Cursitor's business fundamentals no longer supported the
carrying value of its investment. The Company's earnings from continuing
operations for 1997 included a charge of $59.5 million, net of a Federal
income tax benefit of $10.0 million and minority interest of $51.4 million.
The remaining balance of intangible assets is being amortized over its
estimated useful life of 20 years.
Net unrealized investment gains (losses), included in the consolidated
balance sheets as a component of accumulated comprehensive income and the
changes for the corresponding years, follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year......................... $ 384.1 $ 533.6 $ 189.9
Changes in unrealized investment (losses) gains.... (1,486.6) (242.4) 543.3
Changes in unrealized investment losses
(gains) attributable to:
Participating group annuity contracts.......... 24.7 (5.7) 53.2
DAC............................................ 208.6 13.2 (89.0)
Deferred Federal income taxes.................. 476.4 85.4 (163.8)
------------- ------------ ------------
Balance, End of Year............................... $ (392.8) $ 384.1 $ 533.6
============= ============ ============
Balance, end of year comprises:
Unrealized investment (losses) gains on:
Fixed maturities............................... $ (773.9) $ 539.9 $ 871.2
Other equity investments....................... (16.3) 92.4 33.7
Other, principally Closed Block................ 46.8 111.1 80.9
------------- ------------ ------------
Total........................................ (743.4) 743.4 985.8
Amounts of unrealized investment gains
attributable to:
Participating group annuity contracts........ - (24.7) (19.0)
DAC.......................................... 80.8 (127.8) (141.0)
Deferred Federal income taxes................ 269.8 (206.8) (292.2)
------------- ------------ ------------
Total.............................................. $ (392.8) $ 384.1 $ 533.6
============= ============ ============
</TABLE>
Changes in unrealized gains (losses) reflect changes in fair value of only
those fixed maturities and equity securities classified as available for
sale and do not reflect any changes in fair value of policyholders' account
balances and future policy benefits.
F-18
<PAGE>
6) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Accumulated other comprehensive income (loss) represents cumulative gains
and losses on items that are not reflected in earnings. The balances for
the past three years follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Unrealized (losses) gains on investments........... $ (392.8) $ 384.1 $ 533.6
Minimum pension liability.......................... (.1) (28.3) (17.3)
------------- ------------ ------------
Total Accumulated Other
Comprehensive (Loss) Income...................... $ (392.9) $ 355.8 $ 516.3
============= ============ ============
</TABLE>
The components of other comprehensive income (loss) for the past three
years follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Net unrealized (losses) gains on investment
securities:
Net unrealized (losses) gains arising during
the period..................................... $ (1,682.3) $ (186.1) $ 564.0
Adjustment to reclassify losses (gains)
included in net earnings during the period..... 195.7 (56.3) (20.7)
------------- ------------ ------------
Net unrealized (losses) gains on investment
securities..................................... (1,486.6) (242.4) 543.3
Adjustments for policyholder liabilities,
DAC and deferred Federal income taxes.......... 709.7 92.9 (199.6)
------------- ------------ ------------
Change in unrealized losses (gains), net of
adjustments.................................... (776.9) (149.5) 343.7
Change in minimum pension liability................ 28.2 (11.0) (4.4)
------------- ------------ ------------
Total Other Comprehensive (Loss) Income............ $ (748.7) $ (160.5) $ 339.3
============= ============ ============
</TABLE>
F-19
<PAGE>
7) CLOSED BLOCK
Summarized financial information for the Closed Block follows:
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C
BALANCE SHEETS
Fixed Maturities:
Available for sale, at estimated fair value (amortized cost,
$4,144.8 and $4,149.0)........................................... $ 4,014.0 $ 4,373.2
Mortgage loans on real estate........................................ 1,704.2 1,633.4
Policy loans......................................................... 1,593.9 1,641.2
Cash and other invested assets....................................... 194.4 86.5
DAC.................................................................. 895.5 676.5
Other assets......................................................... 205.3 221.6
------------ ------------
Total Assets......................................................... $ 8,607.3 $ 8,632.4
============ ============
Future policy benefits and policyholders' account balances........... $ 9,011.7 $ 9,013.1
Other liabilities.................................................... 13.3 63.9
------------ ------------
Total Liabilities.................................................... $ 9,025.0 $ 9,077.0
============ ============
</TABLE>
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Premiums and other revenue......................... $ 619.1 $ 661.7 $ 687.1
Investment income (net of investment
expenses of $15.8, $15.5 and $27.0).............. 574.2 569.7 574.9
Investment (losses) gains, net..................... (11.3) .5 (42.4)
------------- ------------ ------------
Total revenues............................... 1,182.0 1,231.9 1,219.6
------------- ------------ ------------
Policyholders' benefits and dividends.............. 1,024.7 1,082.0 1,066.7
Other operating costs and expenses................. 70.9 62.8 50.4
------------- ------------ ------------
Total benefits and other deductions.......... 1,095.6 1,144.8 1,117.1
------------- ------------ ------------
Contribution from the Closed Block................. $ 86.4 $ 87.1 $ 102.5
============= ============ ============
</TABLE>
Impaired mortgage loans along with the related provision for losses
follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------
1999 1998
------------- -------------
(IN MILLIONS)
<S> <C> <C>
Impaired mortgage loans with provision for losses...................... $ 26.8 $ 55.5
Impaired mortgage loans without provision for losses................... 4.5 7.6
------------- -------------
Recorded investment in impaired mortgages.............................. 31.3 63.1
Provision for losses................................................... (4.1) (10.1)
------------- -------------
Net Impaired Mortgage Loans............................................ $ 27.2 $ 53.0
============= =============
</TABLE>
During 1999, 1998 and 1997, the Closed Block's average recorded investment
in impaired mortgage loans was $37.0 million, $85.5 million and $110.2
million, respectively. Interest income recognized on these impaired
mortgage loans totaled $3.3 million, $4.7 million and $9.4 million ($.3
million, $1.5 million and $4.1 million recognized on a cash basis) for
1999, 1998 and 1997, respectively.
F-20
<PAGE>
Valuation allowances amounted to $4.6 million and $11.1 million on mortgage
loans on real estate and $24.7 million and $15.4 million on equity real
estate at December 31, 1999 and 1998, respectively. Writedowns of fixed
maturities amounted to $3.5 million for 1997. Writedowns of equity real
estate amounted to $28.8 million for 1997.
In fourth quarter 1997, $72.9 million depreciated cost of equity real
estate held for production of income was reclassified to equity real estate
held for sale. Additions to valuation allowances of $15.4 million were
recorded upon these transfers. Also in fourth quarter 1997, $28.8 million
of writedowns on real estate held for production of income were recorded.
Many expenses related to Closed Block operations are charged to operations
outside of the Closed Block; accordingly, the contribution from the Closed
Block does not represent the actual profitability of the Closed Block
operations. Operating costs and expenses outside of the Closed Block are,
therefore, disproportionate to the business outside of the Closed Block.
F-21
<PAGE>
8) DISCONTINUED OPERATIONS
Summarized financial information for discontinued operations follows:
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
BALANCE SHEETS
Mortgage loans on real estate........................................ $ 454.6 $ 553.9
Equity real estate................................................... 426.6 611.0
Other equity investments............................................. 55.8 115.1
Other invested assets................................................ 87.1 24.9
------------ ------------
Total investments.................................................. 1,024.1 1,304.9
Cash and cash equivalents............................................ 164.5 34.7
Other assets......................................................... 213.0 219.0
------------ ------------
Total Assets......................................................... $ 1,401.6 $ 1,558.6
============ ============
Policyholders' liabilities........................................... $ 993.3 $ 1,021.7
Allowance for future losses.......................................... 242.2 305.1
Other liabilities.................................................... 166.1 231.8
------------ ------------
Total Liabilities.................................................... $ 1,401.6 $ 1,558.6
============ ============
</TABLE>
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Investment income (net of investment
expenses of $49.3, $63.3 and $97.3).............. $ 98.7 $ 160.4 $ 188.6
Investment (losses) gains, net..................... (13.4) 35.7 (173.7)
Policy fees, premiums and other income............. .2 (4.3) .2
------------- ------------ ------------
Total revenues..................................... 85.5 191.8 15.1
Benefits and other deductions...................... 104.8 141.5 169.5
(Losses charged) earnings credited to allowance
for future losses................................ (19.3) 50.3 (154.4)
------------- ------------ ------------
Pre-tax loss from operations....................... - - -
Pre-tax earnings from releasing (loss from
strengthening) the allowance for future
losses........................................... 43.3 4.2 (134.1)
Federal income tax (expense) benefit............... (15.2) (1.5) 46.9
------------- ------------ ------------
Earnings (Loss) from Discontinued Operations....... $ 28.1 $ 2.7 $ (87.2)
============= ============ ============
</TABLE>
The Company's quarterly process for evaluating the allowance for future
losses applies the current period's results of the discontinued operations
against the allowance, re-estimates future losses and adjusts the
allowance, if appropriate. Additionally, as part of the Company's annual
planning process which takes place in the fourth quarter of each year,
investment and benefit cash flow projections are prepared. These updated
assumptions and estimates resulted in a release of allowance in 1999 and
1998 and strengthening of allowance in 1997.
In fourth quarter 1997, $329.9 million depreciated cost of equity real
estate was reclassified from equity real estate held for production of
income to real estate held for sale. Additions to valuation allowances of
$79.8 million were recognized upon these transfers. Also in fourth quarter
1997, $92.5 million of writedowns on real estate held for production of
income were recognized.
F-22
<PAGE>
Benefits and other deductions includes $26.6 million and $53.3 million of
interest expense related to amounts borrowed from continuing operations in
1998 and 1997, respectively.
Valuation allowances of $1.9 million and $3.0 million on mortgage loans on
real estate and $54.8 million and $34.8 million on equity real estate were
held at December 31, 1999 and 1998, respectively. Writedowns of equity real
estate were $95.7 million in 1997.
During 1999, 1998 and 1997, discontinued operations' average recorded
investment in impaired mortgage loans was $13.8 million, $73.3 million and
$89.2 million, respectively. Interest income recognized on these impaired
mortgage loans totaled $1.7 million, $4.7 million and $6.6 million ($.0
million, $3.4 million and $5.3 million recognized on a cash basis) for
1999, 1998 and 1997, respectively.
At December 31, 1999 and 1998, discontinued operations had real estate
acquired in satisfaction of debt with carrying values of $24.1 million and
$50.0 million, respectively.
9) SHORT-TERM AND LONG-TERM DEBT
Short-term and long-term debt consists of the following:
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Short-term debt...................................................... $ 557.0 $ 179.3
------------ ------------
Long-term debt:
Equitable Life:
Surplus notes, 6.95% due 2005...................................... 399.5 399.4
Surplus notes, 7.70% due 2015...................................... 199.7 199.7
Other.............................................................. .4 .3
------------ ------------
Total Equitable Life........................................... 599.6 599.4
------------ ------------
Wholly Owned and Joint Venture Real Estate:
Mortgage notes, 5.43% - 9.5%, due through 2017..................... 251.3 392.2
------------ ------------
Alliance:
Other.............................................................. - 10.8
------------ ------------
Total long-term debt................................................. 850.9 1,002.4
------------ ------------
Total Short-term and Long-term Debt.................................. $ 1,407.9 $ 1,181.7
============ ============
</TABLE>
Short-term Debt
---------------
Equitable Life has a $700.0 million bank credit facility available to fund
short-term working capital needs and to facilitate the securities
settlement process. The credit facility consists of two types of borrowing
options with varying interest rates and expires in September 2000. The
interest rates are based on external indices dependent on the type of
borrowing and at December 31, 1999 range from 5.76% to 8.5%. There were no
borrowings outstanding under this bank credit facility at December 31,
1999.
Equitable Life has a commercial paper program with an issue limit of $1.0
billion. This program is available for general corporate purposes used to
support Equitable Life's liquidity needs and is supported by Equitable
Life's existing $700.0 million bank credit facility. At December 31, 1999,
there were $166.9 million outstanding under this program.
Alliance has a $425.0 million five-year revolving credit facility with a
group of commercial banks. Under the facility, the interest rate, at the
option of Alliance, is a floating rate generally based upon a defined prime
rate, a rate related to the London Interbank Offered Rate ("LIBOR") or the
Federal Funds Rate. A facility fee is payable on the total facility. During
July 1999, Alliance increased the size of its commercial paper program by
$200.0 million from $425.0 million for a total available limit of $625.0
million. Borrowings from the revolving credit facility and the original
commercial paper program may not exceed $425.0 million in the aggregate.
The revolving credit facility provides backup liquidity for commercial
paper issued under
F-23
<PAGE>
Alliance's commercial paper program and can be used as a direct source of
borrowing. The revolving credit facility contains covenants that require
Alliance to, among other things, meet certain financial ratios. At December
31, 1999, Alliance had commercial paper outstanding totaling $384.7 million
at an effective interest rate of 5.9%; there were no borrowings outstanding
under Alliance's revolving credit facility.
In December 1999, Alliance established a $100.0 million extendible
commercial notes ("ECN") program to supplement its commercial paper
program. ECN's are short-term debt instruments that do not require any
back-up liquidity support.
Long-term Debt
--------------
Several of the long-term debt agreements have restrictive covenants related
to the total amount of debt, net tangible assets and other matters. At
December 31, 1999, the Company is in compliance with all debt covenants.
The Company has pledged real estate, mortgage loans, cash and securities
amounting to $323.6 million and $640.2 million at December 31, 1999 and
1998, respectively, as collateral for certain short-term and long-term
debt.
At December 31, 1999, aggregate maturities of the long-term debt based on
required principal payments at maturity was $3.0 million for 2000 and
$848.7 million for 2005 and thereafter.
10) FEDERAL INCOME TAXES
A summary of the Federal income tax expense in the consolidated statements
of earnings follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Federal income tax expense (benefit):
Current.......................................... $ 174.0 $ 283.3 $ 186.5
Deferred......................................... 158.0 69.8 (95.0)
------------- ------------ ------------
Total.............................................. $ 332.0 $ 353.1 $ 91.5
============= ============ ============
</TABLE>
F-24
<PAGE>
The Federal income taxes attributable to consolidated operations are
different from the amounts determined by multiplying the earnings before
Federal income taxes and minority interest by the expected Federal income
tax rate of 35%. The sources of the difference and their tax effects
follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Expected Federal income tax expense................ $ 458.4 $ 414.3 $ 234.7
Non-taxable minority interest...................... (47.8) (33.2) (38.0)
Non-taxable subsidiary gains....................... (37.1) (6.4) -
Adjustment of tax audit reserves................... 27.8 16.0 (81.7)
Equity in unconsolidated subsidiaries.............. (64.0) (39.3) (45.1)
Other.............................................. (5.3) 1.7 21.6
------------- ------------ ------------
Federal Income Tax Expense......................... $ 332.0 $ 353.1 $ 91.5
============= ============ ============
</TABLE>
The components of the net deferred Federal income taxes are as follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1999 December 31, 1998
----------------------------- -----------------------------
ASSETS LIABILITIES Assets Liabilities
----------- ------------ ------------ -----------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Compensation and related benefits...... $ - $ 37.7 $ 235.3 $ -
Other.................................. - 20.6 27.8 -
DAC, reserves and reinsurance.......... - 329.7 - 231.4
Investments............................ 115.1 - - 364.4
----------- ------------ ------------ -----------
Total.................................. $ 115.1 $ 388.0 $ 263.1 $ 595.8
=========== ============ ============ ===========
</TABLE>
At December 31, 1999, in conjunction with the non-qualified employee
benefit plans, $236.8 million in deferred tax asset was transferred to the
Holding Company. See Note 12 for discussion of the benefit plans
transferred.
The deferred Federal income taxes impacting operations reflect the net tax
effects of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for
income tax purposes. The sources of these temporary differences and their
tax effects follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
DAC, reserves and reinsurance...................... $ 83.2 $ (7.7) $ 46.2
Investments........................................ 3.2 46.8 (113.8)
Compensation and related benefits.................. 21.0 28.6 3.7
Other.............................................. 50.6 2.1 (31.1)
------------- ------------ ------------
Deferred Federal Income Tax
Expense (Benefit)................................ $ 158.0 $ 69.8 $ (95.0)
============= ============ ============
</TABLE>
The Internal Revenue Service (the "IRS") is in the process of examining the
Holding Company's consolidated Federal income tax returns for the years
1992 through 1996. Management believes these audits will have no material
adverse effect on the Company's results of operations.
F-25
<PAGE>
11) REINSURANCE AGREEMENTS
The Insurance Group assumes and cedes reinsurance with other insurance
companies. The Insurance Group evaluates the financial condition of its
reinsurers to minimize its exposure to significant losses from reinsurer
insolvencies. Ceded reinsurance does not relieve the originating insurer of
liability. The effect of reinsurance (excluding group life and health) is
summarized as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Direct premiums.................................... $ 420.6 $ 438.8 $ 448.6
Reinsurance assumed................................ 206.7 203.6 198.3
Reinsurance ceded.................................. (69.1) (54.3) (45.4)
------------- ------------ ------------
Premiums........................................... $ 558.2 $ 588.1 $ 601.5
============= ============ ============
Universal Life and Investment-type Product
Policy Fee Income Ceded.......................... $ 69.7 $ 75.7 $ 61.0
============= ============ ============
Policyholders' Benefits Ceded...................... $ 99.6 $ 85.9 $ 70.6
============= ============ ============
Interest Credited to Policyholders' Account
Balances Ceded................................... $ 38.5 $ 39.5 $ 36.4
============= ============ ============
</TABLE>
Since 1997, the Company reinsures on a yearly renewal term basis 90% of the
mortality risk on new issues of certain term, universal and variable life
products. The Company's retention limit on joint survivorship policies is
$15.0 million. All in force business above $5.0 million is reinsured. The
Insurance Group also reinsures the entire risk on certain substandard
underwriting risks and in certain other cases.
The Insurance Group cedes 100% of its group life and health business to a
third party insurer. Premiums ceded totaled $.1 million, $1.3 million and
$1.6 million for 1999, 1998 and 1997, respectively. Ceded death and
disability benefits totaled $44.7 million, $15.6 million and $4.3 million
for 1999, 1998 and 1997, respectively. Insurance liabilities ceded totaled
$510.5 million and $560.3 million at December 31, 1999 and 1998,
respectively.
F-26
<PAGE>
12) EMPLOYEE BENEFIT PLANS
The Company sponsors qualified and non-qualified defined benefit plans
covering substantially all employees (including certain qualified part-time
employees), managers and certain agents. The pension plans are
non-contributory. Equitable Life's benefits are based on a cash balance
formula or years of service and final average earnings, if greater, under
certain grandfathering rules in the plans. Alliance's benefits are based on
years of credited service, average final base salary and primary social
security benefits. The Company's funding policy is to make the minimum
contribution required by the Employee Retirement Income Security Act of
1974 ("ERISA").
Effective December 31, 1999, the Holding Company legally assumed primary
liability from Equitable Life for all current and future obligations of its
Excess Retirement Plan, Supplemental Executive Retirement Plan and certain
other employee benefit plans that provide participants with medical, life
insurance, and deferred compensation benefits; Equitable Life remains
secondarily liable. The amount of the liability associated with employee
benefits transferred was $676.5 million, including $183.0 million of
non-qualified pension benefit obligations and $394.1 million of
postretirement benefits obligations at December 31, 1999. This transfer was
recorded as a non-cash capital contribution to Equitable Life.
Components of net periodic pension (credit) cost for the qualified and
non-qualified plans follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 36.7 $ 33.2 $ 32.5
Interest cost on projected benefit obligations..... 131.6 129.2 128.2
Actual return on assets............................ (189.8) (175.6) (307.6)
Net amortization and deferrals..................... 7.5 6.1 166.6
------------- ------------ ------------
Net Periodic Pension Cost (Credit)................. $ (14.0) $ (7.1) $ 19.7
============= ============ ============
</TABLE>
The projected benefit obligations under the qualified and non-qualified
pension plans were comprised of:
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Benefit obligations, beginning of year................................. $ 1,933.4 $ 1,801.3
Service cost........................................................... 36.7 33.2
Interest cost.......................................................... 131.6 129.2
Actuarial (gains) losses............................................... (53.3) 108.4
Benefits paid.......................................................... (123.1) (138.7)
------------ ------------
Subtotal before transfer............................................... 1,925.3 1,933.4
Transfer of Non-qualified Pension Benefit Obligation
to the Holding Company............................................... (262.5) -
------------ ------------
Benefit Obligation, End of Year........................................ $ 1,662.8 $ 1,933.4
============ ============
</TABLE>
F-27
<PAGE>
The funded status of the qualified and non-qualified pension plans was as
follows:
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Plan assets at fair value, beginning of year........................... $ 2,083.1 $ 1,867.4
Actual return on plan assets........................................... 369.0 338.9
Contributions.......................................................... .1 -
Benefits paid and fees................................................. (108.5) (123.2)
------------ ------------
Plan assets at fair value, end of year................................. 2,343.7 2,083.1
Projected benefit obligations.......................................... 1,925.3 1,933.4
------------ ------------
Excess of plan assets over projected benefit obligations............... 418.4 149.7
Unrecognized prior service cost........................................ (5.2) (7.5)
Unrecognized net (gain) loss from past experience different
from that assumed.................................................... (197.3) 38.7
Unrecognized net asset at transition................................... (.1) 1.5
------------ ------------
Subtotal before transfer............................................... 215.8 182.4
Transfer of Accrued Non-qualified Pension Benefit Obligation
to the Holding Company............................................... 183.0 -
------------ ------------
Prepaid Pension Cost, Net.............................................. $ 398.8 $ 182.4
============ ============
</TABLE>
The prepaid pension cost for pension plans with assets in excess of
projected benefit obligations was $412.2 million and $363.9 million and the
accrued liability for pension plans with projected benefit obligations in
excess of plan assets was $13.5 million and $181.5 million at December 31,
1999 and 1998, respectively.
The pension plan assets include corporate and government debt securities,
equity securities, equity real estate and shares of group trusts managed by
Alliance. The discount rate and rate of increase in future compensation
levels used in determining the actuarial present value of projected benefit
obligations were 8.0% and 6.38%, respectively, at December 31, 1999 and
7.0% and 3.83%, respectively, at December 31, 1998. As of January 1, 1999
and 1998, the expected long-term rate of return on assets for the
retirement plan was 10.0% and 10.25%, respectively.
The Company recorded, as a reduction of shareholder's equity, an additional
minimum pension liability of $.1 million, $28.3 million and $17.3 million,
net of Federal income taxes, at December 31, 1999, 1998 and 1997,
respectively, primarily representing the excess of the accumulated benefit
obligation of the non-qualified pension plan over the accrued liability.
The aggregate accumulated benefit obligation and fair value of plan assets
for pension plans with accumulated benefit obligations in excess of plan
assets were $325.7 million and $36.3 million, respectively, at December 31,
1999 and $309.7 million and $34.5 million, respectively, at December 31,
1998.
Prior to 1987, the qualified plan funded participants' benefits through the
purchase of non-participating annuity contracts from Equitable Life.
Benefit payments under these contracts were approximately $30.2 million,
$31.8 million and $33.2 million for 1999, 1998 and 1997, respectively.
The Company provides certain medical and life insurance benefits
(collectively, "postretirement benefits") for qualifying employees,
managers and agents retiring from the Company (i) on or after attaining age
55 who have at least 10 years of service or (ii) on or after attaining age
65 or (iii) whose jobs have been abolished and who have attained age 50
with 20 years of service. The life insurance benefits are related to age
and salary at retirement. The costs of postretirement benefits are
recognized in accordance with the provisions of SFAS No. 106. The Company
continues to fund postretirement benefits costs on a pay-as-you-go basis
and, for 1999, 1998 and 1997, the Company made estimated postretirement
benefits payments of $29.5 million, $28.4 million and $18.7 million,
respectively.
F-28
<PAGE>
The following table sets forth the postretirement benefits plan's status,
reconciled to amounts recognized in the Company's consolidated financial
statements:
<TABLE>
<CAPTION>
1999 1998 1997
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 4.7 $ 4.6 $ 4.5
Interest cost on accumulated postretirement
benefits obligation.............................. 34.4 33.6 34.7
Unrecognized prior service costs................... (7.0) - -
Net amortization and deferrals..................... 8.4 .5 1.9
----------------- ---------------- -----------------
Net Periodic Postretirement Benefits Costs......... $ 40.5 $ 38.7 $ 41.1
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Accumulated postretirement benefits obligation, beginning
of year.............................................................. $ 490.4 $ 490.8
Service cost........................................................... 4.7 4.6
Interest cost.......................................................... 34.4 33.6
Contributions and benefits paid........................................ (29.5) (28.4)
Actuarial gains........................................................ (29.0) (10.2)
------------ ------------
Accumulated postretirement benefits obligation, end of year............ 471.0 490.4
Unrecognized prior service cost........................................ 26.9 31.8
Unrecognized net loss from past experience different
from that assumed and from changes in assumptions.................... (86.0) (121.2)
------------ ------------
Subtotal before transfer............................................... 411.9 401.0
Transfer to the Holding Company........................................ (394.1) -
------------ ------------
Accrued Postretirement Benefits Cost................................... $ 17.8 $ 401.0
============ ============
</TABLE>
Since January 1, 1994, costs to the Company for providing these medical
benefits available to retirees under age 65 are the same as those offered
to active employees and medical benefits will be limited to 200% of 1993
costs for all participants.
The assumed health care cost trend rate used in measuring the accumulated
postretirement benefits obligation was 7.5% in 1999, gradually declining to
4.75% in the year 2010, and in 1998 was 8.0%, gradually declining to 2.5%
in the year 2009. The discount rate used in determining the accumulated
postretirement benefits obligation was 8.0% and 7.0% at December 31, 1999
and 1998, respectively.
If the health care cost trend rate assumptions were increased by 1%, the
accumulated postretirement benefits obligation as of December 31, 1999
would be increased 3.55%. The effect of this change on the sum of the
service cost and interest cost would be an increase of 3.91%. If the health
care cost trend rate assumptions were decreased by 1% the accumulated
postretirement benefits obligation as of December 31, 1999 would be
decreased by 4.38%. The effect of this change on the sum of the service
cost and interest cost would be a decrease of 4.96%.
F-29
<PAGE>
13) DERIVATIVES AND FAIR VALUE OF FINANCIAL INSTRUMENTS
Derivatives
-----------
The Insurance Group primarily uses derivatives for asset/liability risk
management and for hedging individual securities. Derivatives mainly are
utilized to reduce the Insurance Group's exposure to interest rate
fluctuations. Accounting for interest rate swap transactions is on an
accrual basis. Gains and losses related to interest rate swap transactions
are amortized as yield adjustments over the remaining life of the
underlying hedged security. Income and expense resulting from interest rate
swap activities are reflected in net investment income. The notional amount
of matched interest rate swaps outstanding at December 31, 1999 and 1998,
respectively, was $797.3 million and $880.9 million. The average unexpired
terms at December 31, 1999 ranged from two months to 5.0 years. At December
31, 1999, the cost of terminating swaps in a loss position was $1.8
million. Equitable Life maintains an interest rate cap program designed to
hedge crediting rates on interest-sensitive individual annuities contracts.
The outstanding notional amounts at December 31, 1999 of contracts
purchased and sold were $7,575.0 million and $875.0 million, respectively.
The net premium paid by Equitable Life on these contracts was $51.6 million
and is being amortized ratably over the contract periods ranging from 1 to
4 years. Income and expense resulting from this program are reflected as an
adjustment to interest credited to policyholders' account balances.
DLJ enters into certain contractual agreements referred to as derivatives
or off-balance-sheet financial instruments primarily for trading purposes
and to provide products for its clients. DLJ performs the following
activities: writing over-the-counter ("OTC") options to accommodate
customer needs; trading in forward contracts in U.S. government and agency
issued or guaranteed securities; trading in futures contracts on equity
based indices, interest rate instruments, and currencies; and issuing
structured products based on emerging market financial instruments and
indices. DLJ also enters into swap agreements, primarily equity, interest
rate and foreign currency swaps. DLJ is not significantly involved in
commodity derivative instruments.
Fair Value of Financial Instruments
-----------------------------------
The Company defines fair value as the quoted market prices for those
instruments that are actively traded in financial markets. In cases where
quoted market prices are not available, fair values are estimated using
present value or other valuation techniques. The fair value estimates are
made at a specific point in time, based on available market information and
judgments about the financial instrument, including estimates of the timing
and amount of expected future cash flows and the credit standing of
counterparties. Such estimates do not reflect any premium or discount that
could result from offering for sale at one time the Company's entire
holdings of a particular financial instrument, nor do they consider the tax
impact of the realization of unrealized gains or losses. In many cases, the
fair value estimates cannot be substantiated by comparison to independent
markets, nor can the disclosed value be realized in immediate settlement of
the instrument.
Certain financial instruments are excluded, particularly insurance
liabilities other than financial guarantees and investment contracts. Fair
market value of off-balance-sheet financial instruments of the Insurance
Group was not material at December 31, 1999 and 1998.
F-30
<PAGE>
Fair values for mortgage loans on real estate are estimated by discounting
future contractual cash flows using interest rates at which loans with
similar characteristics and credit quality would be made. Fair values for
foreclosed mortgage loans and problem mortgage loans are limited to the
estimated fair value of the underlying collateral if lower.
Fair values of policy loans are estimated by discounting the face value of
the loans from the time of the next interest rate review to the present, at
a rate equal to the excess of the current estimated market rates over the
current interest rate charged on the loan.
The estimated fair values for the Company's association plan contracts,
supplementary contracts not involving life contingencies ("SCNILC") and
annuities certain, which are included in policyholders' account balances,
and guaranteed interest contracts are estimated using projected cash flows
discounted at rates reflecting expected current offering rates.
The estimated fair values for variable deferred annuities and single
premium deferred annuities ("SPDA"), which are included in policyholders'
account balances, are estimated by discounting the account value back from
the time of the next crediting rate review to the present, at a rate equal
to the excess of current estimated market rates offered on new policies
over the current crediting rates.
Fair values for long-term debt are determined using published market
values, where available, or contractual cash flows discounted at market
interest rates. The estimated fair values for non-recourse mortgage debt
are determined by discounting contractual cash flows at a rate which takes
into account the level of current market interest rates and collateral
risk. The estimated fair values for recourse mortgage debt are determined
by discounting contractual cash flows at a rate based upon current interest
rates of other companies with credit ratings similar to the Company. The
Company's carrying value of short-term borrowings approximates their
estimated fair value.
The following table discloses carrying value and estimated fair value for
financial instruments not otherwise disclosed in Notes 3, 7 and 8:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------------------------------------
1999 1998
--------------------------------- ---------------------------------
CARRYING ESTIMATED Carrying Estimated
VALUE FAIR VALUE Value Fair Value
--------------- ---------------- --------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Consolidated Financial Instruments:
-----------------------------------
Mortgage loans on real estate.......... $ 3,270.0 $ 3,239.3 $ 2,809.9 $ 2,961.8
Other limited partnership interests.... 647.9 647.9 562.6 562.6
Policy loans........................... 2,257.3 2,359.5 2,086.7 2,370.7
Policyholders' account balances -
investment contracts................. 12,740.4 12,800.5 12,892.0 13,396.0
Long-term debt......................... 850.9 834.9 1,002.4 1,025.2
Closed Block Financial Instruments:
-----------------------------------
Mortgage loans on real estate.......... $ 1,704.2 $ 1,650.3 $ 1,633.4 $ 1,703.5
Other equity investments............... 36.3 36.3 56.4 56.4
Policy loans........................... 1,593.9 1,712.0 1,641.2 1,929.7
SCNILC liability....................... 22.8 22.5 25.0 25.0
Discontinued Operations Financial
---------------------------------
Instruments:
------------
Mortgage loans on real estate.......... $ 454.6 $ 467.0 $ 553.9 $ 599.9
Fixed maturities....................... 85.5 85.5 24.9 24.9
Other equity investments............... 55.8 55.8 115.1 115.1
Guaranteed interest contracts.......... 33.2 27.5 37.0 34.0
Long-term debt......................... 101.9 101.9 147.1 139.8
</TABLE>
F-31
<PAGE>
14) COMMITMENTS AND CONTINGENT LIABILITIES
The Company has provided, from time to time, certain guarantees or
commitments to affiliates, investors and others. These arrangements include
commitments by the Company, under certain conditions: to make capital
contributions of up to $59.4 million to affiliated real estate joint
ventures; and to provide equity financing to certain limited partnerships
of $373.8 million at December 31, 1999, under existing loan or loan
commitment agreements.
Equitable Life is the obligor under certain structured settlement
agreements which it had entered into with unaffiliated insurance companies
and beneficiaries. To satisfy its obligations under these agreements,
Equitable Life owns single premium annuities issued by previously wholly
owned life insurance subsidiaries. Equitable Life has directed payment
under these annuities to be made directly to the beneficiaries under the
structured settlement agreements. A contingent liability exists with
respect to these agreements should the previously wholly owned subsidiaries
be unable to meet their obligations. Management believes the satisfaction
of those obligations by Equitable Life is remote.
The Insurance Group had $24.9 million of letters of credit outstanding at
December 31, 1999.
15) LITIGATION
The Company
-----------
Life Insurance and Annuity Sales Cases
A number of lawsuits are pending as individual claims and purported class
actions against Equitable Life, its subsidiary insurance company and a
former insurance subsidiary. These actions involve, among other things,
sales of life and annuity products for varying periods from 1980 to the
present, and allege, among other things, sales practice misrepresentation
primarily involving: the number of premium payments required; the propriety
of a product as an investment vehicle; the propriety of a product as a
replacement of an existing policy; and failure to disclose a product as
life insurance. Some actions are in state courts and others are in U.S.
District Courts in different jurisdictions, and are in varying stages of
discovery and motions for class certification.
In general, the plaintiffs request an unspecified amount of damages,
punitive damages, enjoinment from the described practices, prohibition
against cancellation of policies for non-payment of premium or other
remedies, as well as attorneys' fees and expenses. Similar actions have
been filed against other life and health insurers and have resulted in the
award of substantial judgments, including material amounts of punitive
damages, or in substantial settlements. Although the outcome of litigation
cannot be predicted with certainty, particularly in the early stages of an
action, the Company's management believes that the ultimate resolution of
these cases should not have a material adverse effect on the financial
position of the Company. The Company's management cannot make an estimate
of loss, if any, or predict whether or not any such litigation will have a
material adverse effect on the Company's results of operations in any
particular period.
Discrimination Case
Equitable Life is a defendant in an action, certified as a class action in
September 1997, in the United States District Court for the Northern
District of Alabama, Southern Division, involving alleged discrimination on
the basis of race against African-American applicants and potential
applicants in hiring individuals as sales agents. Plaintiffs seek a
declaratory judgment and affirmative and negative injunctive relief,
including the payment of back-pay, pension and other compensation. Although
the outcome of litigation cannot be predicted with certainty, the Company's
management believes that the ultimate resolution of this matter should not
have a material adverse effect on the financial position of the Company.
The Company's management cannot make an estimate of loss, if any, or
predict whether or not such matter will have a material adverse effect on
the Company's results of operations in any particular period.
Agent Health Benefits Case
Equitable Life is a defendant in an action, certified as a class action in
March 1999, in the United States District Court for the Northern District
of California, alleging, among other things, that Equitable Life violated
ERISA by eliminating certain alternatives pursuant to which agents of
Equitable Life could qualify for health care coverage. The class consists
of "[a]ll current, former and retired Equitable agents, who while
F-32
<PAGE>
associated with Equitable satisfied [certain alternatives] to qualify for
health coverage or contributions thereto under applicable plans."
Plaintiffs allege various causes of action under ERISA, including claims
for enforcement of alleged promises contained in plan documents and for
enforcement of agent bulletins, breach of unilateral contract, breach of
fiduciary duty and promissory estoppel. The parties are currently engaged
in discovery. Although the outcome of any litigation cannot be predicted
with certainty, the Company's management believes that the ultimate
resolution of this matter should not have a material adverse effect on the
financial position of the Company. The Company's management cannot make an
estimate of loss, if any, or predict whether or not such matter will have a
material adverse effect on the Company's results of operations in any
particular period.
Prime Property Fund Case
In January 2000, the California Supreme Court denied the Company's petition
for review of an October 1999 decision by the California Court of Appeal.
Such decision reversed the dismissal by the Supreme Court of Orange County,
California of an action which was commenced in 1995 by a real estate
developer in connection with a limited partnership formed in 1991 with the
Company on behalf of Prime Property Fund ("PPF"). The Company serves as
investment manager for PPF, an open-end, commingled real estate separate
account of the Company for pension clients. Plaintiff alleges breach of
fiduciary duty and other claims principally in connection with PPF's 1995
purchase and subsequent foreclosure of the loan which financed the
partnership's property. Plaintiff seeks compensatory and punitive damages.
The case has been remanded to the Superior Court for further proceedings.
Although the outcome of litigation cannot be predicted with certainty, the
Company's management believes that the ultimate resolution of this matter
should not have a material adverse effect on the financial position of the
Company. The Company's management cannot make an estimate of loss, if any,
or predict whether or not this matter will have a material adverse effect
on the Company's results of operations in any particular period.
Alliance Capital
----------------
In July 1995, a class action complaint was filed against Alliance North
American Government Income Trust, Inc. (the "Fund"), Alliance Holding and
certain other defendants affiliated with Alliance, including the Holding
Company, alleging violations of Federal securities laws, fraud and breach
of fiduciary duty in connection with the Fund's investments in Mexican and
Argentine securities. The original complaint was dismissed in 1996; on
appeal, the dismissal was affirmed. In October 1996, plaintiffs filed a
motion for leave to file an amended complaint, alleging the Fund failed to
hedge against currency risk despite representations that it would do so,
the Fund did not properly disclose that it planned to invest in
mortgage-backed derivative securities and two Fund advertisements
misrepresented the risks of investing in the Fund. In October 1998, the
U.S. Court of Appeals for the Second Circuit issued an order granting
plaintiffs' motion to file an amended complaint alleging that the Fund
misrepresented its ability to hedge against currency risk and denying
plaintiffs' motion to file an amended complaint containing the other
allegations. In December 1999, the United States District Court for the
Southern District of New York granted the defendants' motion for summary
judgment on all claims against all defendants. Later in December 1999, the
plaintiffs filed motions for reconsideration of the Court's ruling. These
motions are currently pending with the Court.
In connection with the Reorganization; Alliance assumed any liabilities
which Alliance Holding may have with respect to this action. Alliance and
Alliance Holding believe that the allegations in the amended complaint are
without merit and intend to vigorously defend against these claims. While
the ultimate outcome of this matter cannot be determined at this time,
management of Alliance Holding and Alliance do not expect that it will have
a material adverse effect on Alliance Holding's or Alliance's results of
operations or financial condition.
DLJSC
-----
Donaldson, Lufkin & Jenrette Securities Corporation ("DLJSC") is a
defendant along with certain other parties in a class action complaint
involving the underwriting of units, consisting of notes and warrants to
purchase common shares, of Rickel Home Centers, Inc. ("Rickel"), which
filed a voluntary petition for reorganization pursuant to Chapter 11 of the
Bankruptcy Code. The complaint seeks unspecified compensatory and punitive
damages from DLJSC, as an underwriter and as an owner of 7.3% of the common
stock, for alleged violation of Federal securities laws and common law
fraud for alleged misstatements and omissions contained in the prospectus
and registration statement used in the offering of the units. In April
1999, the complaint against DLJSC and the other defendants was dismissed.
The plaintiffs have appealed. DLJSC intends to defend itself vigorously
against all the allegations contained in the complaint.
DLJSC is a defendant in a purported class action filed in a Texas State
Court on behalf of the holders of $550 million principal amount of
subordinated redeemable discount debentures of National Gypsum Corporation
("NGC"). The debentures were canceled in connection with a Chapter 11 plan
of reorganization for NGC consummated in July 1993. The litigation seeks
compensatory and punitive damages for DLJSC's activities as financial
advisor to NGC in the course of NGC's Chapter 11 proceedings. In March
1999, the Court granted motions for summary judgment filed by DLJSC and the
other defendants. The plaintiffs have appealed. DLJSC intends to defend
itself vigorously against all the allegations contained in the complaint.
In November 1998, three purported class actions were filed in the U.S.
District Court for the Southern District of New York against more than 25
underwriters of initial public offering securities, including DLJSC. The
complaints allege that defendants conspired to fix the "fee" paid for
underwriting initial public offering securities by setting the
underwriters' discount or "spread" at 7%, in violation of the Federal
antitrust laws. The complaints seek treble damages in an unspecified amount
and injunctive relief as well as attorneys' fees and costs. In March 1999,
the plaintiffs filed a consolidated amended complaint. A motion by all
defendants
F-33
<PAGE>
to dismiss the complaints on several grounds is pending. Separately, the
U.S. Department of Justice has issued a Civil Investigative Demand to
several investment banking firms, including DLJSC, seeking documents and
information relating to "alleged" price-fixing with respect to underwriting
spreads in initial public offerings. The Justice Department has not made
any charges against DLJSC or the other investment banking firms. DLJSC is
cooperating with the Justice Department in providing the requested
information and believes that no violation of law by DLJSC has occurred.
Although there can be no assurance, DLJ's management does not believe that
the ultimate resolution of the litigations described above to which DLJSC
is a party will have a material adverse effect on DLJ's consolidated
financial condition. Based upon the information currently available to it,
DLJ's management cannot predict whether or not such litigations will have a
material adverse effect on DLJ's results of operations in any particular
period.
Other Matters
In addition to the matters described above, the Holding Company and its
subsidiaries are involved in various legal actions and proceedings in
connection with their businesses. Some of the actions and proceedings have
been brought on behalf of various alleged classes of claimants and certain
of these claimants seek damages of unspecified amounts. While the ultimate
outcome of such matters cannot be predicted with certainty, in the opinion
of management no such matter is likely to have a material adverse effect on
the Company's consolidated financial position or results of operations.
16) LEASES
The Company has entered into operating leases for office space and certain
other assets, principally information technology equipment and office
furniture and equipment. Future minimum payments under noncancelable leases
for 2000 and the four successive years are $111.2 million, $93.3 million,
$78.3 million, $71.9 million, $66.5 million and $523.7 million thereafter.
Minimum future sublease rental income on these noncancelable leases for
2000 and the four successive years is $5.2 million, $4.1 million, $2.8
million, $2.8 million, $2.8 million and $23.8 million thereafter.
At December 31, 1999, the minimum future rental income on noncancelable
operating leases for wholly owned investments in real estate for 2000 and
the four successive years is $120.7 million, $113.5 million, $96.0 million,
$79.7 million, $74.1 million and $354.6 million thereafter.
17) OTHER OPERATING COSTS AND EXPENSES
Other operating costs and expenses consisted of the following:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Compensation costs................................. $ 1,010.6 $ 772.0 $ 721.5
Commissions........................................ 549.5 478.1 409.6
Short-term debt interest expense................... 16.7 26.1 31.7
Long-term debt interest expense.................... 76.3 84.6 121.2
Amortization of policy acquisition costs........... 314.5 292.7 287.3
Capitalization of policy acquisition costs......... (709.9) (609.1) (508.0)
Writedown of policy acquisition costs.............. 131.7 - -
Rent expense, net of sublease income............... 113.9 100.0 101.8
Cursitor intangible assets writedown............... - - 120.9
Other.............................................. 1,294.0 1,056.8 917.9
------------- ------------ ------------
Total.............................................. $ 2,797.3 $ 2,201.2 $ 2,203.9
================= ================ =================
</TABLE>
F-34
<PAGE>
During 1997, the Company restructured certain operations in connection with
cost reduction programs and recorded a pre-tax provision of $42.4 million.
The amount paid during 1999 associated with cost reduction programs totaled
$15.6 million. At December 31, 1999, the remaining liabilities associated
with cost reduction programs was $8.8 million. The 1997 cost reduction
program included costs related to employee termination and exit costs.
18) INSURANCE GROUP STATUTORY FINANCIAL INFORMATION
Equitable Life is restricted as to the amounts it may pay as shareholder
dividends. Under the New York Insurance Law, the Superintendent has broad
discretion to determine whether the financial condition of a stock life
insurance company would support the payment of dividends to its
shareholders. For 1999, 1998 and 1997, statutory net income (loss) totaled
$547.0 million, $384.4 million and ($351.7) million, respectively.
Statutory surplus, capital stock and Asset Valuation Reserve ("AVR")
totaled $5,570.6 million and $4,728.0 million at December 31, 1999 and
1998, respectively. In September 1999, $150.0 million in dividends were
paid to the Holding Company by Equitable Life, the first such payment since
Equitable Life's demutualization in 1992.
At December 31, 1999, the Insurance Group, in accordance with various
government and state regulations, had $26.8 million of securities deposited
with such government or state agencies.
The differences between statutory surplus and capital stock determined in
accordance with Statutory Accounting Principles ("SAP") and total
shareholder's equity under GAAP are primarily: (a) the inclusion in SAP of
an AVR intended to stabilize surplus from fluctuations in the value of the
investment portfolio; (b) future policy benefits and policyholders' account
balances under SAP differ from GAAP due to differences between actuarial
assumptions and reserving methodologies; (c) certain policy acquisition
costs are expensed under SAP but deferred under GAAP and amortized over
future periods to achieve a matching of revenues and expenses; (d) external
and certain internal costs incurred to obtain or develop internal use
computer software during the application development stage is capitalized
under GAAP but expensed under SAP; (e) Federal income taxes are generally
accrued under SAP based upon revenues and expenses in the Federal income
tax return while under GAAP deferred taxes provide for timing differences
between recognition of revenues and expenses for financial reporting and
income tax purposes; (f) the valuation of assets under SAP and GAAP differ
due to different investment valuation and depreciation methodologies, as
well as the deferral of interest-related realized capital gains and losses
on fixed income investments; and (g) differences in the accrual
methodologies for post-employment and retirement benefit plans.
F-35
<PAGE>
19) BUSINESS SEGMENT INFORMATION
The Company's operations consist of Insurance and Investment Services. The
Company's management evaluates the performance of each of these segments
independently and allocates resources based on current and future
requirements of each segment. Management evaluates the performance of each
segment based upon operating results adjusted to exclude the effect of
unusual or non-recurring events and transactions and certain revenue and
expense categories not related to the base operations of the particular
business net of minority interest. Information for all periods is presented
on a comparable basis.
Intersegment investment advisory and other fees of approximately $75.6
million, $61.8 million and $84.1 million for 1999, 1998 and 1997,
respectively, are included in total revenues of the Investment Services
segment. These fees, excluding amounts related to discontinued operations
of $.5 million, $.5 million and $4.2 million for 1999, 1998 and 1997,
respectively, are eliminated in consolidation.
The following tables reconcile each segment's revenues and operating
earnings to total revenues and earnings from continuing operations before
Federal income taxes and cumulative effect of accounting change as reported
on the consolidated statements of earnings and the segments' assets to
total assets on the consolidated balance sheets, respectively.
<TABLE>
<CAPTION>
INVESTMENT
INSURANCE SERVICES ELIMINATION TOTAL
------------- ------------ ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
1999
----
Segment revenues..................... $ 4,283.0 $ 2,052.7 $ (23.8) $ 6,311.9
Investment (losses) gains............ (199.4) 111.5 - (87.9)
------------- ------------ ------------ ------------
Total Revenues....................... $ 4,083.6 $ 2,164.2 $ (23.8) $ 6,224.0
============= ============ ============ ============
Pre-tax operating earnings........... $ 895.7 $ 427.0 $ - $ 1,322.7
Investment (losses) gains , net of
DAC and other charges.............. (208.4) 110.5 - (97.9)
Non-recurring DAC adjustments........ (131.7) - - (131.7)
Pre-tax minority interest............ - 216.8 - 216.8
------------- ------------ ------------ ------------
Earnings from Continuing
Operations......................... $ 555.6 $ 754.3 $ - $ 1,309.9
============= ============ ============ ============
Total Assets......................... $ 86,842.7 $ 12,961.7 $ (8.9) $ 99,795.5
============= ============ ============ ============
1998
----
Segment revenues..................... $ 4,029.8 $ 1,438.4 $ (5.7) $ 5,462.5
Investment gains..................... 64.8 35.4 - 100.2
------------- ------------ ------------ ------------
Total Revenues....................... $ 4,094.6 $ 1,473.8 $ (5.7) $ 5,562.7
============= ============ ============ ============
Pre-tax operating earnings........... $ 688.6 $ 284.3 $ - $ 972.9
Investment gains, net of
DAC and other charges.............. 41.7 27.7 - 69.4
Pre-tax minority interest............ - 141.5 - 141.5
------------- ------------ ------------ ------------
Earnings from Continuing
Operations......................... 730.3 453.5 - 1,183.8
============= ============ ============ ============
Total Assets......................... $ 75,626.0 $ 12,379.2 $ (64.4) $ 87,940.8
============= ============ ============ ============
</TABLE>
F-36
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT
INSURANCE SERVICES ELIMINATION TOTAL
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
1997
----
Segment revenues..................... $ 3,990.8 $ 1,200.0 $ (7.7) $ 5,183.1
Investment (losses) gains............ (318.8) 255.1 - (63.7)
------------- ------------ ------------ ------------
Total Revenues....................... $ 3,672.0 $ 1,455.1 $ (7.7) $ 5,119.4
============= ============ ============ ============
Pre-tax operating earnings........... $ 507.0 $ 258.3 $ - $ 765.3
Investment (losses) gains, net of
DAC and other charges.............. (292.5) 252.7 - (39.8)
Non-recurring costs and expenses..... (41.7) (121.6) - (163.3)
Pre-tax minority interest............ - 108.5 - 108.5
------------- ------------ ------------ ------------
Earnings from Continuing
Operations......................... $ 172.8 $ 497.9 $ - $ 670.7
============= ============ ============ ============
Total Assets......................... $ 67,762.4 $ 13,691.4 $ (96.1) $ 81,357.7
============= ============ ============ ============
</TABLE>
20) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The quarterly results of operations for 1999 and 1998 are summarized below:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------------------------------------------------------------
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
------------- ------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
1999
----
Total Revenues................ $ 1,484.3 $ 1,620.3 $ 1,512.1 $ 1,607.3
============= ============= ============ ============
Earnings from Continuing
Operations.................. $ 187.3 $ 222.6 $ 186.5 $ 182.1
============= ============= ============ ============
Net Earnings.................. $ 182.0 $ 221.3 $ 183.1 $ 220.2
============= ============= ============ ============
1998
----
Total Revenues................ $ 1,470.2 $ 1,422.9 $ 1,297.6 $ 1,372.0
============= ============= ============ ============
Earnings from Continuing
Operations.................. $ 212.8 $ 197.0 $ 136.8 $ 158.9
============= ============= ============ ============
Net Earnings.................. $ 213.3 $ 198.3 $ 137.5 $ 159.1
============= ============= ============ ============
</TABLE>
F-37
<PAGE>
21) INVESTMENT IN DLJ
At December 31, 1999, the Company's ownership of DLJ interest was
approximately 31.71%. The Company's ownership interest in DLJ will continue
to be reduced upon the exercise of options granted to certain DLJ employees
and the vesting of forfeitable restricted stock units acquired by DLJ
employees. DLJ restricted stock units represent forfeitable rights to
receive approximately 5.2 million shares of DLJ common stock through
February 2000.
The results of operations of DLJ are accounted for on the equity basis and
are included in commissions, fees and other income in the consolidated
statements of earnings. The Company's carrying value of DLJ is included in
investment in and loans to affiliates in the consolidated balance sheets.
Summarized balance sheets information for DLJ, reconciled to the Company's
carrying value of DLJ, are as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Assets:
Trading account securities, at market value............................ $ 27,982.4 $ 13,195.1
Securities purchased under resale agreements........................... 29,538.1 20,063.3
Broker-dealer related receivables...................................... 44,998.1 34,264.5
Other assets........................................................... 6,493.5 4,759.3
------------ ------------
Total Assets........................................................... $ 109,012.1 $ 72,282.2
============ ============
Liabilities:
Securities sold under repurchase agreements............................ $ 56,474.4 $ 35,775.6
Broker-dealer related payables......................................... 37,207.4 26,161.5
Short-term and long-term debt.......................................... 6,518.6 3,997.6
Other liabilities...................................................... 4,704.5 3,219.8
------------ ------------
Total liabilities...................................................... 104,904.9 69,154.5
DLJ's company-obligated mandatorily redeemed preferred
securities of subsidiary trust holding solely debentures of DLJ...... 200.0 200.0
Total shareholders' equity............................................. 3,907.2 2,927.7
------------ ------------
Total Liabilities, Cumulative Exchangeable Preferred Stock and
Shareholders' Equity................................................. $ 109,012.1 $ 72,282.2
============ ============
DLJ's equity as reported............................................... $ 3,907.2 $ 2,927.7
Unamortized cost in excess of net assets acquired in 1985
and other adjustments................................................ 22.9 23.7
The Holding Company's equity ownership in DLJ.......................... (1,341.4) (1,002.4)
Minority interest in DLJ............................................... (1,479.3) (1,118.2)
------------ ------------
The Company's Carrying Value of DLJ.................................... $ 1,109.4 $ 830.8
============ ============
</TABLE>
F-38
<PAGE>
Summarized statements of earnings information for DLJ reconciled to the
Company's equity in earnings of DLJ is as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------ ------------ -------------
(IN MILLIONS)
<S> <C> <C> <C>
Commission, fees and other income..................... $ 4,145.1 $ 3,150.5 $ 2,430.7
Net investment income................................. 2,175.3 2,189.1 1,652.1
Principal Transactions, net........................... 825.9 67.4 557.7
------------ ------------ -------------
Total revenues........................................ 7,146.3 5,407.0 4,640.5
Total expenses including income taxes................. 6,545.6 5,036.2 4,232.2
------------ ------------ -------------
Net earnings.......................................... 600.7 370.8 408.3
Dividends on preferred stock.......................... 21.2 21.3 12.2
------------ ------------ -------------
Earnings Applicable to Common Shares.................. $ 579.5 $ 349.5 $ 396.1
============ ============ =============
DLJ's earnings applicable to common shares as
reported............................................ $ 579.5 $ 349.5 $ 396.1
Amortization of cost in excess of net assets
acquired in 1985.................................... (.9) (.8) (1.3)
The Holding Company's equity in DLJ's earnings........ (222.7) (136.8) (156.8)
Minority interest in DLJ.............................. (172.9) (99.5) (109.1)
------------ ------------ -------------
The Company's Equity in DLJ's Earnings................ $ 183.0 $ 112.4 $ 128.9
============ ============ =============
</TABLE>
22) ACCOUNTING FOR STOCK-BASED COMPENSATION
The Holding Company sponsors a stock incentive plan for employees of
Equitable Life. DLJ and Alliance each sponsor their own stock option plans
for certain employees. The Company has elected to continue to account for
stock-based compensation using the intrinsic value method prescribed in APB
No. 25. Had compensation expense for the Holding Company, DLJ and Alliance
Stock Option Incentive Plan options been determined based on SFAS No. 123's
fair value based method, the Company's pro forma net earnings for 1999,
1998 and 1997 would have been $757.1 million, $678.4 million and $426.3
million, respectively.
The fair values of options granted after December 31, 1994, used as a basis
for the pro forma disclosures above, were estimated as of the grant dates
using the Black-Scholes option pricing model. The option pricing
assumptions for 1999, 1998 and 1997 follow:
<TABLE>
<CAPTION>
HOLDING COMPANY DLJ ALLIANCE
------------------------------ ------------------------------- ----------------------------------
1999 1998 1997 1999 1998 1997 1999 1998 1997
--------- ---------- --------- ---------- --------- ---------- --------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dividend yield...... 0.31% 0.32% 0.48% 0.56% 0.69% 0.86% 8.70% 6.50% 8.00%
Expected volatility. 28% 28% 20% 36% 40% 33% 29% 29% 26%
Risk-free interest
rate.............. 5.46% 5.48% 5.99% 5.06% 5.53% 5.96% 5.70 4.40% 5.70%
Expected life
in years.......... 5 5 5 5 5 5 7 7.2 7.2
Weighted average
fair value per
option at
grant-date........ $10.78 $11.32 $6.13 $17.19 $16.27 $10.81 $3.88 $3.86 $2.18
</TABLE>
F-39
<PAGE>
A summary of the Holding Company, DLJ and Alliance's option plans follows:
<TABLE>
<CAPTION>
HOLDING COMPANY DLJ ALLIANCE
----------------------------- ----------------------------- -----------------------------
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Price of Price of Price of
Shares Options Shares Options Units Options
(In Millions) Outstanding (In Millions) Outstanding (In Millions) Outstanding
--------------- ------------- --------------- ------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance as of
January 1, 1997........ 13.4 $10.40 22.2 $14.03 10.0 $ 9.54
Granted................ 6.4 $20.93 6.4 $30.54 2.2 $18.28
Exercised.............. (3.2) $10.13 (.2) $16.01 (1.2) $ 8.06
Forfeited.............. (.8) $11.72 (.2) $13.79 (.4) $10.64
--------------- ------------- ---------------
Balance as of
December 31, 1997...... 15.8 $14.53 28.2 $17.78 10.6 $11.41
Granted................ 8.6 $33.13 1.5 $38.59 2.8 $26.28
Exercised.............. (2.2) $10.59 (1.4) $14.91 (.9) $ 8.91
Forfeited.............. (.8) $23.51 (.1) $17.31 (.2) $13.14
--------------- ------------- ---------------
Balance as of
December 31, 1998...... 21.4 $22.00 28.2 $19.04 12.3 $14.92
Granted................ 4.3 $31.70 4.8 $45.23 2.0 $30.18
Exercised.............. (2.4) $13.26 (2.2) $34.61 (1.5) $ 9.51
Forfeited.............. (.6) $24.29 (.1) $15.85 (.3) $17.79
--------------- ------------- ---------------
Balance as of
December 31, 1999...... 22.7 $24.60 30.7 $23.30 12.5 $17.95
=============== ============= ===============
</TABLE>
F-40
<PAGE>
Information about options outstanding and exercisable at December 31, 1999
follows:
<TABLE>
<CAPTION>
Options Outstanding Options Exercisable
--------------------------------------------------- -------------------------------------
Weighted
Average Weighted Weighted
Range of Number Remaining Average Number Average
Exercise Outstanding Contractual Exercise Exercisable Exercise
Prices (In Millions) Life (Years) Price (In Millions) Price
- -------------------- ------------------ ---------------- --------------- ------------------ ----------------
Holding
Company
- --------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9.06 -$13.88 5.6 4.2 $10.50 10.9 $18.98
$14.25 -$22.63 5.2 7.7 $20.95 - -
$25.32 -$34.59 8.2 8.7 $29.08 - -
$40.97 -$41.28 3.7 8.6 $41.28 - -
----------------- ------------------
$ 9.06 -$41.28 22.7 7.3 $24.60 10.9 $18.98
================= ================ =============== ================== ================
DLJ
- --------------------
$13.50 -$25.99 20.2 8.4 $14.61 20.6 $16.62
$26.00 -$38.99 4.9 7.8 $33.99 - -
$39.00 -$52.875 4.8 9.0 $43.28 - -
$53.00 -$76.875 .8 9.7 $57.09 - -
----------------- ------------------
$13.50 -$76.875 30.7 8.4 $23.30 20.6 $16.62
================= ================ =============== ================== ================
Alliance
- --------------------
$ 3.66 -$ 9.81 2.6 3.8 $ 8.31 2.2 $ 8.12
$ 9.88 -$12.56 3.3 5.6 $11.16 2.6 $10.92
$13.75 -$18.47 1.8 7.9 $18.34 .7 $18.34
$18.78 -$26.31 2.8 8.9 $26.16 .6 $26.06
$27.31 -$30.94 2.0 9.9 $30.24 - -
----------------- ------------------
$ 3.66 -$30.94 12.5 7.0 $17.95 6.1 $12.12
================= ================ =============== ================== ================
</TABLE>
F-41
<PAGE>
PART C
OTHER INFORMATION
-----------------
Item 28. Financial Statements and Exhibits
---------------------------------
(a) Financial Statements included in Part B.
1. Separate Account Nos. 3 (Pooled), 4 (Pooled), 10 (Pooled) and
13 (Pooled) (The Aggressive Equity, Common Stock, Balanced and
Bond Funds):
- Report of Independent Accountants - PricewaterhouseCoopers
LLP
2. Separate Account No. 3 (Pooled):
- Statements of Assets and Liabilities, December 31, 1999
- Statements of Operations and Changes in Net Assets for the
Year Ended December 31, 1999
- Portfolio of Investments, December 31, 1999
3. Separate Account No. 4 (Pooled):
- Statements of Assets and Liabilities, December 31, 1999
- Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1999 and 1998
- Portfolio of Investments, December 31, 1999
4. Separate Account No. 10 (Pooled):
- Statement of Assets and Liabilities December 31, 1999
- Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1999 and 1998
- Portfolio of Investments, December 31, 1999
5. Separate Account No. 13 (Pooled):
- Statements of Assets and Liabilities, December 31, 1999
- Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1999 and 1998
- Portfolio of Investments, December 31, 1999
6. Separate Account No. 51 (Pooled)
--------------------------------
- Report of Independent Accountants - PricewaterhouseCoopers
LLP
- Statement of Assets and Liabilities, December 31, 1999
- Statements of Operations and Changes in Net Assets for the
Years Ended December 31, 1999 and 1998
7. Separate Account No. 66:
------------------------
- Report of Independent Accountants - PricewaterhouseCoopers
LLP
- Statement of Assets and Liabilities, December 31, 1999
- Statements of Operations for the Year Ended December 31,
1999
- Statement of Changes in Net Assets for the Years Ended
December 31, 1999 and 1998
8. Separate Account Nos. 3 (Pooled), 4 (Pooled), 10 (Pooled),
13 (Pooled) and 51 (Pooled): Notes to Financial Statements
9. The Equitable Life Assurance Society of the United States:
----------------------------------------------------------
- Report of Independent Accountants - PricewaterhouseCoopers
LLP
- Consolidated Balance Sheets, as of December 31, 1999 and 1998
- Consolidated Statements of Earnings for the Years Ended
December 31, 1999, 1998 and 1997
C-1
<PAGE>
- Consolidated Statements of Shareholder's Equity for the Years
Ended December 31, 1998, 1997 and 1996
- Consolidated Statements of Cash Flows for the Years Ended
December 31, 1998, 1997 and 1996
- Notes to Consolidated Financial Statements
(b) Exhibits.
The following Exhibits are filed herewith:
1. Resolutions of the Board of Directors of The Equitable Life
Assurance Society of the United States ("Equitable")
authorizing the establishment of Separate Account Nos. 3, 4 and
10 and additional similar separate accounts, incorporated by
reference to Registration No. 2-91983 on Form N-3 of
Registrant, filed April 14, 1986.
2. Not Applicable.
3. Not Applicable.
4. (a) Investment Advisory Agreement between Equitable and
Equitable Investment Management Corporation dated
October 31, 1983, incorporated by reference to
Registration No. 2-91983 on Form N-3 of Registrant
filed on April 14, 1986.
(b) Investment Advisory and Management Agreement by and
between Alliance Capital Management L.P., Alliance
Corporate Finance Group Incorporated, an indirect
wholly owned subsidiary of Alliance, and The Equitable
Life Assurance Society of the United States,
previously filed with this Registration Statement No.
33-76028 on March 3, 1994.
(c) Particpation Agreement among EQ Advisors Trust, The
Equitable Life Assurance Society of the United States,
Equitable Distributors, Inc. and EQ Financial
Consultants, Inc. (now AXA Advisors, LLC), dated as of
the 14th day of April 1997, incorporated by reference to
the Registration Statement of EQ Advisors Trust (File
No. 333-17217) on Form N-1A, filed August 28, 1997.
(d) Sales Agreement, dated as of January 1, 1996, by and
among Equico Securities, Inc., Equitable, and Separate
Account A, Separate Account No. 301 and Separate
Account No. 51, previously filed with this
Registration Statement No. 33-76028 on April 24, 1996.
5. Not Applicable.
6. (a)1 Group Annuity Contract AC 5000 - 83T (No. 15,740)
between Equitable and United States Trust Company of
New York as Trustee under Retirement Investment
Account Master Retirement Trust, incorporated by
reference to Registration No. 2-91983 on Form N-3 of
Registrant filed April 14, 1986.
C-2
<PAGE>
(a)2 Riders 1, 2, 3, 4, 5, 6 and 7 to Group Annuity
Contract AC 5000 - 83T (No. 15,740) between Equitable
and United States Trust Company of New York as Trustee
under Retirement Investment Account Master Retirement
Trust, as executed, incorporated by reference to
Registration No. 2-91983 on Form N-3 of Registrant
filed April 28, 1988.
(a)3 Form of Rider 8 to Group Annuity Contract AC 5000 -
83T (No. 15,740) between Equitable and United States
Trust Company of New York as Trustee under Retirement
Investment Account Master Retirement Trust,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed February 25, 1992.
(a)4 Form of Rider 9 to Group Annuity Contract AC 5000 -
83T between Equitable and United States Trust Company
of New York as Trustee under Retirement Investment
Account Master Retirement Trust, previously filed with
this Registration Statement No. 33-76028 on March 3,
1994.
(b)1 Group Annuity Contract AC 5000 - 83E (No. 15,739)
between Equitable and United States Trust Company of
New York as Trustee under Retirement Investment
Account Retirement Trust, incorporated by reference to
Registration No. 2-91983 on Form N-3 of Registrant
filed April 14, 1986.
(b)2 Riders l, 2, 3, 4, 5, 6 and 7 to Group Annuity
Contract AC 5000 - 83E (No. 15,739) between Equitable
and United States Trust Company of New York as Trustee
under Retirement Investment Account Retirement Trust,
as executed, incorporated by reference to Registration
No. 2-91983 on Form N-3 of Registrant filed April 14,
1986.
(b)3 Form of Rider 8 to Group Annuity Contract AC 5000 -
83E (No. 15,739) between Equitable and United States
Trust Company of New York, as Trustee under Retirement
Investment Account Master Retirement Trust,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed February 25, 1992.
(b)4 Form of Rider 9 to Group Annuity Contract AC 5000 -
83E between Equitable and United States Trust Company
of New York, as Trustee under Retirement Investment
Account Master Retirement Trust, previously filed with
this Registration Statement No. 33-76028 on March 3,
1994.
(c)1 Retirement Investment Account Master Retirement Trust
effective as of January 1, 1979, incorporated by
reference to Registration No. 2-91983 on Form N-3 of
Registrant filed April 14, 1986.
(c)2 Amendment to the Retirement Investment Account Master
Retirement Trust effective July 1, 1984,incorporated
by
C-3
<PAGE>
reference to Registration No. 2-91983 on Form N-3 of
Registrant filed April 14, 1986.
(c)3 Revised Retirement Investment Account Master
Retirement Trust effective as of March 1, 1990,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed April 27, 1990.
(c)4 Form of Restated Retirement Investment Account Master
Retirement Trust as submitted to the Internal Revenue
Service, incorporated by reference to Registration No.
2-91983 on Form N-3 of Registrant filed February 25,
1992.
7. (a) Retirement Investment Account Enrollment Forms -
Including Participation and Enrollment Agreements,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed April 14, 1986.
(b)(1) Supplementary Agreement to Master Retirement Trust
Participation Agreement, incorporated by reference to
Registration No. 2-91983 on Form N-3 of Registrant
filed April 14, 1986.
(b)(2) Supplementary Agreement B to Master Retirement Trust
Participation Agreement (RIA Loans), incorporated by
reference to Registration No. 2-91983 on Form N-3 of
Registrant filed April 28, 1988.
(b)(3) Form of Supplementary Agreement A to Master
Retirement Trust Participation Agreement (RIA Partial
Funding), as amended, incorporated by reference to
Registration No. 2-91983 on Form N-3 of Registrant
filed April 30, 1991.
(b)(4) Form of Supplementary Agreement to Master Retirement
Trust Participation Agreement (The Bond Account),
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed February 25, 1992.
(c) Basic Installation Information Form, dated May, 1989,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed April 24, 1992.
(d) RIA Installation Agreement, dated May, 1989,
incorporated by reference to Registration No. 2-91983
on Form N-3 of Registrant filed April 24, 1992.
C-4
<PAGE>
8 (a) Copy of the Restated Charter of Equitable, as amended
January 1, 1997, previously filed with this Registration
Statement No. 333-23019 on March 7, 1997.
(b) By-Laws of Equitable, as amended November 21, 1996,
previously filed with this Registration Statement No.
333-23019 on March 7, 1997.
9. Not Applicable.
10. Not Applicable.
11. Not Applicable.
12. (a) Opinion and consent of Hope E. Rosenbaum-Werner, Vice
President and Counsel of Equitable, previously filed
with this Registration Statement No. 333-23019 on March
7, 1997.
13. (a) Consent of PricewaterhouseCoopers LLP.
(b) Powers of Attorney.
27. Financial Data Schedule
C-5
<PAGE>
Item 29: Directors and Officers of Equitable.
Set forth below is information regarding the directors and principal
officers of Equitable. Equitable's address is 1290 Avenue of the Americas,
New York, New York 10104. The business address of the persons whose names are
preceded by an asterisk is that of Equitable.
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
- ------------------------------------ -------------------------- ----------------------------------------------------
<S> <C> <C>
DIRECTORS
- -----------
Francoise Colloc'h Director Senior Executive Vice President, Human Resources and
AXA Communications, AXA and various positions with
23, Avenue Matignon AXA affiliated companies. (Director, AXA Financial,
75008 Paris, France Inc.).
Henri de Castries Director Senior Executive Vice President, Financial Services
AXA and Life Insurance Activities of AXA and various
23, Avenue Matignon positions with AXA affiliated companies; (Director
75008 Paris, France and Chairman, AXA Financial, Inc. (April 1998 to
present), and prior thereto, Director and Vice
Chairman (February 1996 to April 1998));
</TABLE>
C-6
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
- ------------------------------------ -------------------------- ----------------------------------------------------
<S> <C> <C>
Joseph L. Dionne Director Chairman and former Chief Executive Officer (until
The McGraw-Hill Companies April 1998) (Director, AXA Financial, Inc., Harris
1221 Avenue of the Americas Corporation, and Ryder System, Inc.))
New York, NY 10020
Denis Duverne Director Executive Vice President--International (US-UK-Benelux),
AXA AXA and member of AXA Executive Board (since January
23, Avenue Matignon 2000); (Director, Alliance (since February 1996) and DLJ
75008 Paris, France (since February 1997)).
Jean-Rene Fourtou Director Vice Chairman of the Management Board of Aventis (since
Rhone-Poulenc, S.A. December 1999). Chairman and Chief Executive Officer
25, Quai Paul Doumer Rhone-Poulenc, S.A. (1986 to December 1999); (Director,
92408 Courvbevoie Cedex, AXA Financial, Inc., Societe Generale, Schneider S.A.
France and Groupe Pernod-Ricard (July 1997 to present); Member,
Supervisory Board, AXA, European Advisory Board of
Bankers Trust Company and Consulting Council of Banque
de France).
Norman C. Francis Director President, Xavier University of Louisiana (Chairman,
Xavier University of Louisiana Liberty Bank and Trust, New Orleans, LA; (Director,
7325 Palmetto Street First National Bank of Commerce, New Orleans, LA,
New Orleans, LA 70125 Piccadilly Cafeterias, Inc., and Entergy Corporation).
</TABLE>
C-7
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
- ------------------------------------ -------------------------- ----------------------------------------------------
<S> <C> <C>
Donald J. Greene Director Of Counsel, LeBoeuf, Lamb, Greene & MacRae, LLP.;
LeBoeuf, Lamb, Greene & MacRae Prior thereto, Partner of the firm (1965-1999).
125 West 55th Street (Director, AXA Financial, Inc. (since May 1992)).
New York, NY 10019-4513
John T. Hartley Director Retired Chairman and Chief Executive Officer, the
Harris Corporation Harris Corporation and the McGraw-Hill Companies
1025 NASA Boulevard Director, AXA Financial, Inc. (since May 1992),
Melbourne, FL 32919 Harris Corporation and The McGraw-Hill Companies)).
John H.F. Haskell, Jr. Director Director, AXA Financial, Inc. (since July 1992); Director
Warburg Dillon Read LLC and Senior Advisor, Warburg Dillon Read LLC (since
535 Madison Avenue 1999); prior thereto, Managing Director and member of
New York, NY 10028 its Board of Directors (1975-1999); Chairman,
Supervisory Board, Dillon Read (France) Gestion (until
1998); Director, Dillon Read Limited; (Director, Pall
Corporation (November 1998 to present) and Kaydon
Corporation (until March 1998)).
Mary R. (Nina) Henderson Director President, Bestfoods Grocery; Corporate Vice President,
Bestfoods Grocery Core Business Development of BESTFOODS (since June
BESTFOODS 1999). Prior thereto, President, Bestfood's Grocery and
International Plaza Vice President, Bestfoods (formerly CPC International,
700 Sylvan Avenue Inc.); (Director, Hunt Corporation PACTIV Corporation
Englewood Cliffs, NJ 07632-9976 and AXA Financial, Inc. (since December 1996)).
W. Edwin Jarmain Director President, Jarmain Group, Inc. (since 1979) and an
Jarmain Group, Inc. officer or director of several affiliated companies;
121 King Street West Chairman, FCA International, Ltd. (until May 1998);
Suite 2525 (Director, DLJ (since October 1992), Anglo Canada General
Toronto, Ontario M5H 3T9, Insurance Company, AXA Insurance (Canada), AXA Pacific
Canada Insurance Company and Alternate Director, AXA Asia
Pacific Holdings Limited. Chairman (non-executive) and
Director, FCA International Ltd. (January 1994 to May
1998). Director, AXA Financial, Inc. (since July 1992)).
</TABLE>
C-8
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
- ------------------------------------ -------------------------- ----------------------------------------------------
<S> <C> <C>
George T. Lowy Director Counselor-at-Law; Partner, Cravath, Swaine & Moore.
Cravath, Swaine & Moore (Director, Eramet).
825 Eighth Avenue
New York, NY 10019
Didier Pineau-Valencienne Director Vice Chairman, Credit Suisse First Boston (since March 1999).
Schneider S.A. Chairman and Chief Executive Officer, Schneider S.A. (1981
64/70 Avenue Jean-Baptiste Clement to February 1999); Chairman and Chief Executive Officer,
92646 Boulogne-Billancourt Cedex Square D; (Director, AXA Financial, Inc. (since February
France 1996); Member, Supervisory Board, AXA and Lagardere ERE,
Director, CGIP, Sema Group plc (UK), and Aventis (formerly
Rhone-Poulenc, S.A.), Soft Computing and Swiss Helvetic Fund;
Member of Advisory Board of Booz Allen & Hamilton).
George J. Sella, Jr. Director Director, AXA Financial, Inc. (since May 1992) (Director,
P.O. Box 397 Coulter Pharmaceutical (May 1987 to present).
Newton, NJ 07860
Peter J. Tobin Director Dean, Peter J. Tobin College of Business Administration, St.
St. John's University John's University (August 1998 to present).
8,000 Utopia Parkway
Jamaica, NY 11439
Dave H. Williams Director Senior Executive Vice President of AXA (since January 1997).
Alliance Capital Management Chairman and former Chief Executive Officer (until January
Corporation 1999), Alliance, and Chairman and Director of numerous
1345 Avenue of the Americas subsidiary and affiliated companies of Alliance; (Director,
New York, NY 10105 AXA Financial, Inc. (since May 1992)).
</TABLE>
C-9
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
- ------------------------------------ -------------------------- ----------------------------------------------------
<S> <C> <C>
OFFICERS AND DIRECTORS
- ----------------------
*Michael Hegarty Director and President See Column 2; Director (Since January 1998); Senior Vice Chairman
(since January 1998) (since November 1999); Vice Chairman (since April 1998); Chief
and Chief Operating Operating Officer (since January 1998) and Senior Executive
Officer (since February Vice President, AXA Financial, Inc. (January 1998 to April
1998) 1998); Director ACMC, Inc. (since March 1998), Director,
Equitable Capital Management Corporation("ECMC") (since
March 1998), Alliance (since May 1998) and DLJ(since May
1998). Director, President and Chief Operating Officer,
Equitable of Colorado (since December 1999), AXA Client
Solutions, LLC and Equitable Distribution Holding Corp. (since
September 1999).
*Edward D. Miller Director (since August See Column 2; Director, President and Chief Executive Officer,
1997), Chairman of the AXA Financial, Inc. (since August 1997); Member of the Management
Board (since January Board, AXA (since January 2000); (Director, Alliance (since August
1998) and Chief Executive 1997), DLJ (since November 1997), ECMC (since March 1998), ACMC,
Officer (since August Inc. (since March 1998), and AXA Canada (since September 1998),
1997) and KeySpan Energy). Director, Chairman of the Board and Chief
Executive Officer, Equitable of Colorado (since December 1999),
AXA Client Solutions, LLC and Equitable Distribution Holding Corp.
(since September 1999)
*Stanley B. Tulin Director and Vice See Column 2; Vice Chairman of the Board (since November 1999)
Chairman of the Board and Chief Financial Officer (since May 1997); prior
(since February 1998) thereto, Senior Executive Vice President (February 1998 to
and Chief Financial November 1999), AXA Financial, Inc.; Director, Vice Chairman and
Officer (since May Chief Financial Officer (since December 1999), Equitable of
1996) Colorado, AXA Client Solutions, LLC and Equitable Distributions
Holding Corp. (since September 1999). (Director, Alliance (since
July 1997) and DLJ (since June 1997)).
</TABLE>
C-10
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
- ------------------------------------ -------------------------- ----------------------------------------------------
<S> <C> <C>
OTHER OFFICERS
*Leon B. Billis Executive Vice President See Column 2; prior thereto, Senior Vice President
(since February 1998) (until February 1998) and Chief Information Officer;
and Chief Information Director, J.M.R. Realty Services, Inc.
Officer (since November
1994)
*Derry E Bishop Executive Vice President See Column 2; Director and Executive Vice President,
(since September 1998), AXA Advisors LLC and Executive Vice President, Chief
Chief Agency Officer Agency Officer, AXA Client Solutions, LLC (all since
(since December 1997) September 1999). Director (since 1995) and Executive
and Senior Vice President Vice President (since 1994) of AXA Advisors,LLC
(January 1995 to September (formerly EQF).
1998)
</TABLE>
C-11
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
- ------------------------------------ -------------------------- ----------------------------------------------------
<S> <C> <C>
*Harvey Blitz Senior Vice President See Column 2; Senior Vice President, AXA Financial,
Inc.; Director, The Equitable of Colorado, Inc.;
Director and Chairman, Frontier Trust Company
("Frontier"); Executive Vice President and Director,
AXA Advisors LLC (since September 1999) (formerly,
"EQF" (until September 1999)); Senior Vice President
and Director, AXA Network, LLC (formerly EquiSource);
Director and Officer of various Equitable Life affiliates.
*Kevin R. Byrne Senior Vice President and See Column 2; Senior Vice President and Treasurer, AXA
Treasurer Financial, Inc. Senior Vice President and Treasurer, AXA
Client Solutions, LLC and Equitable Distributors, Inc.
(since September 1999) and Equitable of Colorado, Inc.
(since December 1999). Treasurer, Frontier (since 1990)
and AXA Network, LLC (since 1999). President and Chief
Executive Officer (since September 1997), Vice President
and Treasurer (since March 1997), EQ ADVISORS TRUST.
Director, Chairman, President and Chief Executive Officer,
Equitable JV Holdings (since August 1997). Director (since
July 1997), and Senior Vice President and Chief Financial
Officer (since April 1998), ACMC and ECMC. Previously held
other officerships with Equitable Life and its affiliates.
</TABLE>
C-12
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
- ------------------------------------ -------------------------- ----------------------------------------------------
<S> <C> <C>
*John A. Caroselli Executive Vice President See Column 2; Senior Vice President (February 1998
(since September 1998) to September 1998).
*Judy A. Faucett Senior Vice President See Column 2;
(since September 1996)
and Actuary (September
1996 to December 1998).
*Alvin H. Fenichel Senior Vice President and See Column 2; Senior Vice President and Controller,
Controller AXA Financial, Inc. and The Equitable of Colorado, LLC
Inc. (since December 1999). Previously held other
officerships with Equitable Life and its affiliates.
</TABLE>
C-13
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
- ------------------------------------ -------------------------- ----------------------------------------------------
<S> <C> <C>
*Paul J. Flora Senior Vice President and See Column 2; Vice President and Auditor, AXA
Auditor Financial, Inc.
*Robert E. Garber Executive Vice President See Column 2; Executive Vice President and General
and Chief Legal Officer Counsel, AXA Financial, Inc. Prior thereto, Executive
(since November 1999) Vice President and General Counsel, Equitable Life. Previously
held other officerships with Equitable Life and its affiliates.
*Donald R. Kaplan Senior Vice President See Column 2; Previously held other officerships with
(since September 1999) Equitable Life and its affiliates.
and Chief Compliance
Officer and Associate
General Counsel
*Michael S. Martin Executive Vice President See Column 2; Prior thereto, Senior Vice President and
(September 1998 to Chief Marketing Officer. Chairman and Chief Executive
present) and Chief Officer, AXA Advisors LLC (since September 1999). Vice
Marketing Officer President, EQ ADVISORS TRUST (until April 1998), Director
(since December 1997) Equitable Underwriting and Sales Agency (Bahamas), Ltd.
and AXA Network LLC; President (since February 2000);
Executive Vice President (since December 1998), Colorado;
prior thereto, Director and Senior Vice President (since
December 1998). Previously held other officerships with
Equitable Life and its affiliates.
*Richard J. Matteis Executive Vice President Director, AXA Advisors LLC (October 1998 to May 1999).
(since May 1998)
*Peter D. Noris Executive Vice President See Column 2; Executive Vice President (since May 1995)
and Chief Investment and Chief Investment Officer (since July 1995), AXA Financial.
Officer Chairman, President and Trustee (since March 1997),
EQ ADVISORS TRUST. Executive Vice President and Chief
Investment Officer, Equitable of Colorado (since
December 1999), Executive Vice President, AXA Client
Solutions, LLC (since September 1999). Executive Vice President,
EQF, (November 1996 to September 1999). Director, EREIM
Managers Corp. (since July 1997), and EREIM LP Corp. (since
October 1997).
*Brian S O'Neil Executive Vice President See Column 2; Executive Vice President, AXA Financial, Inc. and
(since June 1998) AXA Client Solutions, LLC (since September 1999). Director of
Investment, AXA Investment Management (January 1998 to June
1998); Chief Investment Officer, AXA Investment Management
(July 1995 to January 1998). Trustee (since September 1999),
EQ ADVISORS TRUST.
</TABLE>
C-14
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
NAME AND PRINCIPAL POSITIONS AND OFFICES (AND OTHER POSITIONS)
BUSINESS ADDRESS WITH EQUITABLE WITHIN PAST 2 YEARS
- ------------------------------------ -------------------------- ----------------------------------------------------
<S> <C> <C>
*Anthony C. Pasquale Senior Vice President See Column 2; Senior Vice President, AXA Client
Solutions LLC (since September 1999). Director, Chairman
and Chief Operating Officer, Casualty, (since
September 1997). Previously held other officerships
with Equitable Life and its affiliates.
*Pauline Sherman Senior Vice President See Column 2, Prior thereto, Vice President, Secretary
(since February 1999) and Associate General Counsel. Associate General Counsel,
Secretary and Associate AXA Financial Inc. and AXA Client Solutions LLC (since
General Counsel (since November 1999). Senior Vice President and Secretary,
September 1995) Equitable of Colorado (since December 1999). Previously
held other officerships with Equitable Life.
*Samuel B. Shlesinger Senior Vice President See Column 2; Chairman, President and Chief Executive
Officer, Colorado; Vice President, HRT (until 1998);
Director, (December 1996 to March 1998).
*Richard V. Silver Senior Vice President and See Column 2; prior thereto, Deputy General
General Counsel Counsel (1996-1999). Senior Vice President and Associate
(since November 1999) General Counsel, AXA Financial, Inc. (since September 1996).
Senior Vice President and General Counsel, AXA Client
Solutions LLC (since November 1999). Vice President and
General Counsel, Equitable of Colorado, Inc. (since December
1999). Director, AXA Advisors LLC. Senior Vice President and
General Counsel, EIC (June 1997 to March 1998).
Previously held other officerships with Equitable Life
and its affiliates.
*Jose Suquet Senior Executive Vice See Column 2; prior thereto, Executive Vice President
President (February 1998 and Chief Agency Officer (until December 1997); Executive
to present) and Chief Vice President, AXA Financial, Inc.; Vice President, HRT
Distribution Officer (March 1998 to present).
(December 1997 to present)
*Maureen K. Wolfson Vice President See Column 2.
*Gregory C. Wilcox Executive Vice President See Column 2; Executive Vice President (since November 1999),
(since September 1998), AXA Financial, Inc.; prior thereto, Senior Vice President.
Senior Vice President
(May 1992 to September
1998)
*R. Lee Wilson Executive Vice President See Column 2; Executive Vice President, AXA Client Solutions
(since May 1998) and LLC (since September 1999). Prior thereto, Executive Vice
Deputy Chief Financial President, Chase Manhattan Bank.
Officer (September 1998
to July 1999)
</TABLE>
C-15
<PAGE>
Item 30. Persons Controlled by or Under Common Control with the Insurance
----------------------------------------------------------------
Company or Registrant
---------------------
Separate Account Nos. 3, 4, 10, 13, 51 and 66 of The Equitable
Life Assurance Society of the United States (the "Separate Accounts") are
separate accounts of Equitable. Equitable, a New York stock life insurance
company is a wholly owned subsidiary of AXA Financial, Inc. (the "Holding
Company"), (formerly The Equitable Companies Incorporated), a publicly
traded company.
The largest stockholder of the Holding Company is AXA. As of
December 31, 1999, AXA beneficially owned approximately 58.0% of the Holding
Company's outstanding common stock plus convertible preferred stock. Under its
investment arrangements with Equitable Life and the Holding Company, AXA is
able to exercise significant influence over the operations and capital structure
of the Holding Company and its subsidiaries, including Equitable life. AXA,
a French company, is the holding company for an international group of insurance
and related financial services companies.
C-16
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
AXA Financial, Inc. (formerly the Equitable Companies, Incorporated) (1991)
(Delaware)
Donaldson Lufkin & Jenrette, Inc. (1933) (Delaware) (38.31%)
(See Addendum B(1) for subsidiaries)
AXA Client Solutions, LLC (1999) (Delaware)
AXA Distribution Holding Corporation (1999) (Delaware)
AXA Advisors, LLC (formerly EQ Financial Consultants, Inc. (1971)
Delaware)(a)(b)
The Equitable Life Assurance Society of the United States (1989)
(New York)(a)(b)
The Equitable of Colorado, Inc. (l983) (Colorado)
EVLICO East Ridge, Inc. (1995) (California)
GP/EQ Southwest, Inc. (1995) (Texas)
Franconom, Inc. (1985) (Pennsylvania) (50.00%)
Frontier Trust Company (1987) (North Dakota)
Gateway Center Buildings, Garage, and Apartment Hotel, Inc.
(inactive) (pre-l970) (Pennsylvania)
Equitable Deal Flow Fund, L.P.
Equitable Managed Assets (Delaware)
Real Estate Partnership Equities (various)
EREIM LP Associates (99%)
EML Associates, L.P. (19.8%)
Alliance Capital Management L.P. (2.7% limited partnership
interest)
ACMC, Inc. (1991) (Delaware)(s) (Note 5)
Alliance Capital Management L.P. (1988) (Delaware)
(38.6% limited partnership interest)
EVSA, Inc. (1992) (Pennsylvania)
Prime Property Funding, Inc. (1993) (Delaware)
Wil Gro, Inc. (1992) (Pennsylvania)
Equitable Underwriting and Sales Agency (Bahamas) Limited (1993)
(Bahamas)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
i
<PAGE>
AXA Financial, Inc. (cont.)
Donaldson Lufkin & Jenrette, Inc. (cont.)
AXA Client Solutions, LLC (cont.)
AXA Distribution Holding Corp. (cont.)
Equitable Life Assurance Society of the United States (cont.)
Fox Run, Inc. (1994) (Massachusetts)
STCS, Inc. (1992) (Delaware)
CCMI Corporation (1994) (Maryland)
HVM Corporation (199 ) (Maryland)
EVSA Incorporated ( ) (Delaware)
FTM Corporation (1994) (Maryland)
Equitable BJVS, Inc. (1992) (California)
Equitable Rowes Wharf, Inc. (1995) (Massachusetts)
ELAS Realty, Inc. (1996) (Delaware)
ELAS Realty, Inc. (Georgia)
Equitable Structured Settlement Corporation (1996) (Delaware)
Prime Property Funding II, Inc. (1997) (Delaware)
Sarasota Prime Hotels, Inc. (1997) (Florida)
ECLL, Inc. (1997) (Michigan)
Equitable Holdings LLC (1997) (New York) (into which Equitable
Holding Corporation was merged in 1997)
ELAS Securities Acquisition Corp. (l980) (Delaware)
100 Federal Street Realty Corporation ( ) (Massachusetts)
100 Federal Street Funding Corporation (Massachusetts)
EquiSource of New York, Inc. (1986) (New York) (See
Addendum A for subsidiaries)
Equitable Casualty Insurance Company (l986) (Vermont)
EREIM LP Corp. (1986) (Delaware)
EREIM LP Associates (L.P.) (1%)
EML Associates (L.P.) (.02%)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
ii
<PAGE>
AXA Financial, Inc. (cont.)
Donaldson Lufkin & Jenrette, Inc. (cont.)
AXA Client Solutions, LLC (cont.)
AXA Distribution Holding Corp. (cont.)
The Equitable Life Assurance Society of the United States (cont.)
Equitable Holdings, LLC (cont.)
Equitable JVS, Inc. (1988) (Delaware)
Astor/Broadway Acquisition Corp. (1990) (New York)
Astor Times Square Corp. (1990) (New York)
PC Landmark, Inc. (1990) (Texas)
Equitable JVS II, Inc. (1994) (Maryland)
EJSVS, Inc. (1995) (New Jersey)
Donaldson, Lufkin & Jenrette, Inc. (1985 by EIC; 1993 by EQ and
EHC) (Delaware) (31.47%) (See Addendum B(1) for
subsidiaries)
JMR Realty Services, Inc. (1994) (Delaware)
Equitable Investment Corporation (l97l) (New York)
Stelas North Carolina Limited Partnership (50% limited
partnership interest) (l984)
Equitable JV Holding Corporation (1989) (Delaware)
Alliance Capital Management Corporation (l991) (Delaware) (b)
(See Addendum B(2) for subsidiaries)
Equitable Capital Management Corporation (l985)
(Delaware) (b)
Equitable Capital Private Income and Equity
Partnership II, L.P. (Delaware)
EQ Services, Inc. (1992) (Delaware)
EREIM Managers Corp. (1986) (Delaware)
ML/EQ Real Estate Portfolio, L.P. (Delaware)
EML Associates, L.P. (New York)
(a) Registered Broker/Dealer (b) Registered Investment
Advisor
iii
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM A - SUBSIDIARY
OF EQUITABLE HOLDINGS, LLC
HAVING MORE THAN FIVE SUBSIDIARIES
-------------------------------------------------------
EquiSource of New York, Inc. (formerly Traditional Equinet Business Corporation
of New York) has the following subsidiaries that are brokerage companies to
make available to Equitable Agents within each state traditional (non-equity)
products and services not manufactured by Equitable:
EquiSource of Alabama, Inc. (1986) (Alabama)
EquiSource of Arizona, Inc. (1986) (Arizona)
EquiSource of Arkansas, Inc. (1987) (Arkansas)
EquiSource Insurance Agency of California, Inc. (1987) (California)
EquiSource of Colorado, Inc. (1986) (Colorado)
EquiSource of Delaware, Inc. (1986) (Delaware)
EquiSource of Hawaii, Inc. (1987) (Hawaii)
EquiSource of Maine, Inc. (1987) (Maine)
EquiSource Insurance Agency of Massachusetts, Inc. (1988)
(Massachusetts)
EquiSource of Montana, Inc. (1986) (Montana)
EquiSource of Nevada, Inc. (1986) (Nevada)
EquiSource of New Mexico, Inc. (1987) (New Mexico)
EquiSource of Pennsylvania, Inc. (1986) (Pennsylvania)
EquiSource of Puerto Rico, Inc. (1997) (Puerto Rico)
EquiSource Insurance Agency of Utah, Inc. (1986) (Utah)
EquiSource of Washington, Inc. (1987) (Washington)
EquiSource of Wyoming, Inc. (1986) (Wyoming)
iv
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM B - INVESTMENT SUBSIDIARIES
HAVING MORE THAN FIVE SUBSIDIARIES
------------------------------------
Donaldson, Lufkin & Jenrette, Inc. has the following subsidiaries, and
approximately 150 other subsidiaries, most of which are special
purpose\subsidiaries (the number fluctuates according to business needs):
Donaldson, Lufkin & Jenrette, Securities Corporation (1985)
(Delaware) (a) (b)
Wood, Struthers & Winthrop Management Corp. (1985)
(Delaware) (b)
Autranet, Inc. (1985) (Delaware) (a)
DLJ Real Estate, Inc.
DLJ Capital Corporation (b)
DLJ Mortgage Capital, Inc. (1988) (Delaware)
Alliance Capital Management Corporation (as general partner) (b) has the
following subsidiaries:
Alliance Capital Management L.P. (1988) (Delaware) (b)
Albion Alliance LLC (Delaware) (37.6%)
Cursitor Alliance LLC (Delaware) (93%)
Cursitor Alliance Holdings Ltd. (U.K.)
Draycott Partners, Ltd (MA)
Cursitor Alliance Services Ltd. (U.K.)
Cursitor Management Co. S.A. (Lux.)
Alliance Asset Allocation Ltd. (U.K.)
Cursitor Eaton Asset Allocation Management Co. (NY) (50%)
Alliance Cecogest S.A. (France) (75%)
Cursitor Courtage SARL (France)
Cursitor Gestion S.A. (France)
Alliance Capital Management Corporation of Delaware (Delaware) (100%)
Alliance Fund Services, Inc. (Delaware) (a)
Alliance Fund Distributors, Inc. (Delaware) (a)
Alliance Capital Oceanic Corp. (Delaware)
Alliance Capital Management (Brazil) Ltd. (Brazil) (99%)
Alliance Capital Management Australia Limited (Australia)
Meiji - Alliance Capital Corp. (Delaware) (50%)
Alliance Capital (Luxembourg) S.A. (Lux.) (99%)
Alliance Barra Research Institute, Inc. (Delaware)
Alliance Capital Management Canada, Inc. (Delaware)
Alliance Capital Global Derivatives Corp. (Delaware)
ACM Fund Services, S.A. (Lux.) (99%)
ACM Fund Services (Espana) S.L. (Spain)
Alliance Capital Management (Singapore) Ltd. (Singapore)
ACM CIIC Investment Management Ltd. (Cayman Islands) (54%)
ACM Software Services Ltd. (Delaware)
East Fund Managementberatung GmbH. (Australia) (51%)
Albion Alliance EFM (Czech) (49%)
East Fund Management (Cyprus) Ltd. (Cyprus) (99%)
EFM Consultanta Financiara Bucuresti SRL (Romania)
Alliance Capital (Mauritius) Private Ltd. (Mauritius)
Alliance Capital Asset Management (India) Private Ltd.
(India) (75%)
ACSYS Software India Private Ltd. (India) (51%)
ACAM Trust Company Private Ltd. (India)
Alliance Eastern Europe, Inc. (Delaware)
Alliance Capital Management (Asia) Ltd. (Delware)
Alliance Capital Management (Turkey) Ltd. (Turkey)
Alliance Capital Mangement (Japan) Inc. 1261 (Delaware)
Alliance Capital Invest Tr. Mgmt. K.K. (Japan)
Alliance Capital Limited (U.K)
Alliance Capital Services Ltd. (U.K.)
Dimentional Trust Management Ltd. (U.K)
Alliance Corporate Finance Group Inc. (Delaware)
BCN Alliance Capital Management SA (Brazil) (50%)
Przymierze Trust Fund Co. (Poland) (49%)
Alliance SBS-AGRO Captial Management Co. (Russia) (49%)
Pekao/Alliance PTE S.A. (Poland) (49%)
Whittingdale Holdings Ltd. (U.K.)
Alliance Capital Whittingdale Ltd. (U.K)
ACM Investments Ltd. (U.K.)
Whittingdale Nominees Ltd. (U.K.)
Hanwha Investment Trust Mgmt. Co., Ltd. (South Korea) (20%)
New Alliance Asset Mangement (Asia) Ltd. (H.K.) (50%)
ACM New-Alliance (Luxemborg) S.A. (Lux.)
Alliance Odyssey Capital Mgmt. (Porprietary) Ltd. (South Africa) (80%)
Alliance-MBCA Capital (Private) Ltd. (Zimbabwe) (50%)
Alliance Odyssey Capital Mgmt. (Nambia) (Proprietary) Ltd. (Nambia)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
v
<PAGE>
AXA GROUP CHART
The information listed below is dated as of January 1, 2000; percentages
shown represent voting power. The name of the owner is noted when AXA
indirectly controls the company.
AXA INSURANCE AND REINSURANCE
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Assurances IARD France 100% by AXA France Assurance
AXA Assurances Vie France 6.48% by AXA Assurances IARD,
82.40% by AXA France Assurance
and 11.13% by AXA Collectives
AXA Courtage IARD France 99.77% by AXA France Assurance
AXA Conseil Vie France 100% by AXA France Assurance
AXA Conseil IARD France 100% by AXA France Assurance
Direct Assurances Vie France 100% by AXA Direct
Juridica France 7.81% by AXA Assurance IARD,
89.27% by AXA France Assurance
1.44% by AXA Courtage IARD
AXA Assistance France 100% by AXA
AXA Collectives France 94.47% by AXA France Assurance,
3.69% by AXA Assurances IARD
and 1.25% by AXA Courtage IARD
NSM Vie France 40.64% by AXA France Assurance
AXA Global Risks France 98.49% by AXA France
Assurance
Argovie France 94.03% by AXA Collectives
S.P.S. Re France 69.03% by AXA Reassurance
vi
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Direct Assurance France 100% by AXA Direct
Natio Assurances France 50% by AXA Assurances IARD
AXA Assistance France 100% by AXA
AXA Reassurance France 86.33% by AXA, 8.25% by AXA
Assurances IARD, 5.07% by
AXA Global Risks, 0.13% by
AXA France Assurances and
0.02% by AXA Collectives
AXA Re Finance France 79% owned by AXA Reassurance
AXA Cessions France 100% by AXA
UAB Belgium 100% by AXA Holdings Belgium
Ardenne Prevoyante Belgium 99.99% by AXA Holdings Belgium
and 0.01% by AXA Royale Belge
Assurance Courtraisienne Belgium 100% by AXA Holdings Belgium
AXA Royale Belge Belgium 99.57% by AXA Holdings Belgium
and 0.43% by UAB
Assurances de la Poste Belgium 50% by AXA Holdings Belgium
Assurances de la Poste Vie Belgium 50% by AXA Holdings Belgium
C.G.R.M. Monte Carlo France 99.99% by AXA Reassurance
AXA Assurance Vie Luxembourg Luxembourg 100% by AXA Luxembourg S.A.
Paneurore Luxembourg 5% by AXA Portugal Companhia de
Seguros, 20% by AXA Colonia
Versicherungs, 5% by AXA
Assicurazioni, 10% by Aurora
Iberica SA de Seguros y Reas,
20% by AXA Insurance IK,
20% by Royale Belge
Investissement and
20% by Saint George Re
Crealux Luxembourg 100% by AXA Holdings Belgium
Futur Re Luxembourg 100% by AXA Global Risks
AXA Assurances Luxembourg Luxembourg 100% by AXA Luxembourg SA
Hilo Direct Seguros y Reaseguros Spain 71.43% by AXA Aurora
Ayuda Legal SA de Seguros y Spain 88% by AXA Aurora Iberica SA de
Reaseguros Seguros y Reaseguros and 12% by
AXA Seguros de Seguros
Reaseguros
Aurora Iberica SA de Spain 99.82% by AXA Aurora
Seguros y Reaseguros
AXA Seguros de Seguros y Spain 1.45% by AXA and 97.06% by
Reasegiros Aurora Iberica SA de Seguros y
Reas
Eurovita Italy 30% owned by AXA Assicurazioni
UAP Vita Italy 62.21% by AXA, 18.70% by AXA
Conseil Vie, and 19.08% by AXA
Collectives
AXA Interlife Italy 100% by AXA
AXA Assicurazioni Italy 84.10% by AXA, 11.70% by
Grupo UAP Italiana, 2.11% by
AXA Conseil Vie and 2.07%%
by AXA Collectives
AXA Equity & Law Plc U.K. 100% by AXA Sun Life
Assurance Society
AXA Global Risks (U.K) Ltd U.K. 100% by AXA Global Risks
(France)
English & Scottish U.K. 100% by AXA UK
AXA UK U.K. 100% by AXA
AXA Sun Life U.K. 100% by Sun Life and Provincial
Holdings Plc
AXA UK Holding Ltd. U.K. 100% by AXA Reassurance
Guardian Insurance Ltd. U.K. 100% by Guardian Royal Exchange
Plc
GREA Assurance U.K. 100% by Guardian Royal
Exchange Plc
PPP Group Plc. U.K. 100% by Guardian Royal
Exchange Plc
PPP Healthcare Ltd. U.K. 100% by Guardian Royal
Exchange Plc
PPP Lifetimecare U.K. 100% by Guardian Royal
Exchange Plc
AXA Insurance UK U.K. 100% by Guardian Royal
Exxchange Plc
AXA Reinsurance UK Plc. U.K. 100% by AXA UK Holding Ltd.
AXA Sun Life Holdings Plc. U.K. 100% by SLPH
AXA Nederland BV The Nether- 51.31% AXA Royal Belge, 38.94%
lands by Gelderland and 4.11% by
AXA Holdings Belgium
AXA Schade The Nether- 100% by AXA Verzekeringen
lands
AXA Zorg NV The Nether- 100% by UAP Verzekeringen
lands
Vinci BV The Nether- 100% by AXA
lands
AXA Leven NV The Nether- 100% by AXA Verzekeringen
lands
UAP Niew Rotterdam Beheer The Nether- 100% by AXA Nederland BV
lands
AXA Zorg NV The Nether- 100% by AXA Verzekeringen
lands
AXA Portugal Companhia de Portugal 9.63% by AXA Global Risk, 2.28%
Serguros by AXA Portugal Seguros
Vida, 5.71% by AXA Conseil Vie
and 81.93% by AXA
Participations
AXA Portugal Seguros Vida Portugal 87.63% by AXA Conseil Vie and
7.46% by AXA Participations
AXA Compagnie d' Assurances Switzerland 99.95% AXA Participations
AXA Compagnie d' Assurances Switzerland 94.99% by AXA Participations
sur la Vie and 5.01% by AXA Compagnie
d'Assurance.
AXA Al Amane Assurances Morocco 99.99% by AXA Ona
Epargne Croissance Morocco 99.59% by AXA Al Amane
Assurances
Compagnie Africaine Morocco 100% by AXA Al Almane
d'Assurance Assurances
AXA Canada Canada 100% by AXA
AXA Canada ADP Canada 100% by AXA Canada
AXA Colonia Krankenversicherung Germany 51% by AXA Colonia Konzern AG
and 48.36% by AXA Colonia Leben
Colonia Nordstern Versicherungs Germany 100% by AXA Colonia Konzern AG
Sicher Direct Germany 50% by AXA Colonia Konzern AG
and 50% by AXA Direct
Albingia Versicherung Germany 98.98% by GRE Continental
Europe Holding Gmbh
Albingia Lebenversicherung Germany 100% by Albingia Versicherung
AXA Colonia Leben Germany 50% by AXA Colonia Konzern AG
and 50% by AXA Colonia
Versicherung
AXA Colonia Versicherung Germany 100% by AXA Colonia Konzern AG
AXA Norstern Art Germany 100% by AXA Colonia Konzern AG
Tellit Vie Germany 100% by AXA-Colonia Konzern
AG
National Mutual Financial Australia 100% by National Mutual
Services Holdings
AXA Oyak Hayat Sigorta Turkey 100% by AXA Oyak Holding AS
AXA Oyak Sigorta Turkey 0.70% by AXA Oyak Hayat
Sigorta and 70.32% by AXA
Oyak Holding AS
AXA Minmerals Assurance Co. Ltd. China 51% by AXA China
vii
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Non Life Insurance Co. Ltd. Japan 100% by AXA Direct
AXA Life Insurance Japan 100% by AXA
Dongbu AXA Life South Korea 100% by AXA
AXA Insurance Investment Singapore 100% by AXA
Holdings
AXA Insurance Singapore Singapore 100% by AXA Insurance
Investment Holding
AXA Life Singapore Singapore 100% by National Mutual
International
GRE Singapore Branch Singapore 100% by AXA
AXA Life Hong Kong Singapore 100% by AXA
AXA Insurance Hong Kong Hong Kong 82.5% by AXA Insurance
Investment Holdings Pte Ltd
and 17.5% by AXA
National Mutual Asia Ltd. Hong Kong 53.8% by National Mutual
Holdings, Ltd and 20% by Detura
AXA China Region Ltd. Hong Kong 73.55% by National Mutual
Holdings
Guardian Insurance Ltd. Hong Kong 100% by AXA
Hong Kong
The Equitable Life Assurance U.S.A. 100% by AXA Financial Inc.
Society of the United States
(ELAS)
AXA Reinsurance U.S.A. 100% by AXA America
AXA America U.S.A. 100% by AXA Reassurance
AXA Global Risks US U.S.A. 96.39% by AXA Global Risks and
3.61% by Colonia Nordstern
Versicherungs AG
AXA Re Life Insurance Company U.S.A. 100% by AXA America
National Mutual Holdings Australia 42.1% by AXA and 8.9% by
AXA Equity & Law Life
Assurance Society
National Mutual International Australia 100% by National Mutual
Holdings Ltd
Australian Casualty Insurance Australia 100% by National Mutual
Property Ltd Holdings
National Mutual Health Australia 100% by National Mutual
Insurance Pty Ltd Holdings Ltd
Guardian Dublin Docks Ireland 100% by Guardian PMPA Group
Ltd.
Guardian PMPA Group Ltd. Ireland 100 by Guardian Royal
Exchange Plc
Detura Hong Kong 75% by National Mutual Holdings
AXA Insurance Singapore Singapore 100% by AXA Insurance
Investment Holdings
AXA Reinsurance Asia Singapore 100% by AXA Reassurance
viii
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Reinsurance U.K. Plc. U.K. 100% owned by AXA U.K.
Holding Ltd.
Nordstern Colonia Versicherung Austria 89.95% by AXA Colonia
Versicherungs
and 10.05% by Colonia Leben
ix
<PAGE>
FINANCIAL SERVICES AND REAL ESTATE
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Compagnie Financiere de Paris France 96.89% by AXa 0.27% by AXA
(C.F.P.) Assurance IARD and 0.01% by
Societe Beaujon
AXA Banque France 98.7% by Compagnie
Financiere de Paris
AXA Credit France 65% by Compagnie
Financiere de Paris
Sofapi France 100% by Compagnie
Financiere de Paris
Holding Soffim France 100% by Compagnie
Financiere de Paris
Sofinad France 100% by Compagnie
Financiere de Paris
Banque des Tuileries France 100% by Compagnie
Financiere de Paris
Banque de Marches et d'Arbitrage France 19.51% by AXA and 8.2% by AXA
Courtage IARD
AXA Investment Managers France 5.28% by AXA Royale Belge,
56.48 BY AXA, 1.02% by AXA
Reassurance, 19.46% by AXA
Assurance IARD, 5.12% by AXA
Colonia Konzern and 0.25% By
Direct Assurances, 2.63% by
AXA Leven NV, 5.10% by National
Fund Management, 2.03% by AXA
Courtege IARD
Banque Worms France 1.91% by AXA France Assurance,
5.32% by AXA Collectives, 6.30%
by AXA Courtage IARD, 3.06% by
AXA Conseil Vie, 10.72% by AXA
Assurances IARD, 21.63% by AXA
Assurance Vie, 49.56% by
Compagnie Financiere de Paris
Investment Managers Paris France 100% by AXA Investment Managers
Transaxim France 100% by Compagnie Financiere
de Participations
AXA Millesimes 10.10% by AXA Reassurance,
11.95% by AXA Reassurance,
7.26% by Societe Beaujon,
6.87% by Jour Finance
AXA Colonia Asset Management Germany 51% by AXA Investment
Managers and 49% by AXA
Colonia Konzern AG
AXA Colonia KAG Germany 51% by AXA Investment
Managers and 26.50% by AXA
Colonia Konzern AG
AXA Colonia Bausparkasse AG Germany 66.67% by AXA Colonia
Konzern AG and 32.99% by
AXA Colonia Leben
Banque IPPA Belgium 100% by AXA Holdings Belgium
Royal Belge Investissement Belgium 100% by AXA Royale Belge
AXA IM Bruxelles Belgium 100% by AXA Investment
Managers
AXA Banque Belgium Belgium 100% by AXA Holdings Belgium
Royale Belge Investissement Belgium 100% by AXA Royale Belge
Sun Life Asset Management U.K. 66.67% by Sun Life and
Provincial Holdings Plc and
33.33% by AXA Asset Management
Ltd.
x
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Alliance Capital Management Corp. U.S.A. 100% held by The Equitable
Life Assurance Society
Donaldson Lufkin & Jenrette U.S.A. 0.13% by AXA, 31.44% by
the ELAS, 38.27% by AXA
Financial Inc. and 1.31%
by AXA Participations Belgium
AXA IM Holdings Inc. U.S.A. 100% by AXA Investment
Managers
AXA IM Rose U.S.A. 90% by AXA Investment
Managers and 10% by AXA IM
Holdings Inc.
AXA Rosenberg LLC U.S.A. 50% by AXA IM Rose
National Mutual Funds Australia 100% owned by National
Management Mutual Holdings
AXA Investment Managers Japan 100% by AXA Investment
Tokyo Managers
AXA Investment Managers The Nether- 100% by AXA Investment
Den Haag lands Managers
AXA IM HK SAR Hong Kong 100% by AXA Investment
Managers
AXA Investment Managers Hong Kong 100% by AXA Investment
Hong Kong Managers
xi
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
S.G.C.I. France 100% by AXA
Compagnie Parisienne de France 100% by Sofinad
Participations (C.P.P.)
Monte Scopeto France 99.99% by Compagnie
Parisienne de Participations
Colisee Jeuneurs France 99.82% by Colisee Suresnes and
0.17% by Compagnie Parislenne
de Participation
Colisee Delcasse France 99.98% by Colisee Suresnes
Colisee Victoire France 99.74% by S.G.C.I.
Colisee Suresnes France 21.19% by AXA Assurance IARD,
0.92% by Societe Beaujon,
51.07% by Compagnie Financiere
de Paris, 20.63% by Jour
Finance and 2.53% by AXA
Courtage IARD
Colisee 21 Matignon France 99.44% by S.G.C.I. and 0.55% by
AXA
xii
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Colisee Saint Georges SA France 100% by SGCI
xiii
<PAGE>
HOLDINGS AND MISCELLANEOUS BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Direct France 100% by AXA
Societe Beaujon France 100% by AXA
Lor Finance France 99.87% by AXA
Jour Finance France 60.47% by AXA Conseil Vie,
39.53% by AXA Assurance IARD
Financiere 45 France 100% by AXA
Mofipar France 99.92% by AXA
AXA Participations France 53.15% by AXA, 21.90% by AXA
Global Risks and 24.95% by AXA
Courtage IARD
Colisee Excellence France 100% by Financiere Mermoz
Financiere Mermoz France 100% by AXA
AXA France Assurance France 100% by AXA
AXA China France 49% by AXA Region Limited
and 51% by AXA
AXA Participations Belgium Belgium 17.65% by AXA Global Risks,
75% by AXA, 1.82% by AXA
Conseil IARD and 5.53% by AXA
Courtage IARD
Finaxa Belgium Belgium 99.99% by AXA
AXA Holdings Belgium Belgium 43.75% by AXA, 3.02% by AXA
Global Risks, 49.10% by AXA
Participations Belgium and
4.11% by Vinci BV
GRE Continental Europe Germany 100% by AXA Cononia Konzern AG
Holding Gmbh
AXA-Colonia Konzern AG Germany 39.73% by Vinci BV, 25.63% by
Kolnische Verwaltungs and
21.62% by AXA
Kolnische Verwaltungs Germany 67.72% by Vinci BV, 22.99% by
AXA Colonia Konzern AG and
8.83% by AXA
AXA Luxembourg SA Luxembourg 100% by AXA Holdings Belgium
AXA Ona Morocco 51% by AXA Participations
Gelderland The Nether- 100% by AXA Holdings Belgium
lands
AXA Oyak Holdings AS Turkey 50% by AXA
AXA Financial Inc. U.S.A. 4.12% by AXA Equity & Law
Life Assurance Society, 43.01
by AXA, 2.97% by AXA
Reassurance, 0.03% by AXA
America, 0.44% by Societe
Beaujon, 3.21% by Fianciere 45
and 6.46% by LOR Finance
AXA Aurora Spain 30% owned by AXA and 40% by
AXA Participations
AXA Equity & Law Plc U.K. 99.94 by AXA Life
Sun Life and Provincial U.K. 34.52% by AXA and 21.81% by
Holdings (SLPH) AXA Equity & Law Plc
xiv
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
NOTES
-----
1. The year of formation or acquisition and state or country of incorporation
of each affiliate is shown.
2. The chart omits certain relatively inactive special purpose real estate
subsidiaries, partnerships, and joint ventures formed to operate or
develop a single real estate property or a group of related properties,
and certain inactive name-holding corporations.
3. All ownership interests on the chart are 100% common stock ownership
except: (a) AXA Financial, Inc.'s 38.6% interest in Donaldson, Lufkin &
Jenrette, Inc., and Equitable Holdings, LLC's 31.7% interest in same; (b)
as noted for certain partnership interests; (c) Equitable Life's ACMC,
Inc.'s and Equitable Capital Management Corporation's limited partnership
interests in Alliance Capital Management L.P.; and (d) as noted for certain
subsidiaries of Alliance Capital Management Corp. of Delaware, Inc.
4. The following entities are not included in this chart because, while they
have an affiliation with The Equitable, their relationship is not the
ongoing equity-based form of control and ownership that is characteristic
of the affiliations on the chart, and, in the case of the first entity, it
is under the direction of at least a majority of "outside" trustees:
EQ Advisors Trust
Separate Accounts
5. This chart was last revised on January 1, 2000.
xv
<PAGE>
Item 31. Number of Contractowners
------------------------
As of March 31, 2000 there were _____ owners of qualified and
non-qualified RIA Contracts offered by the registrant.
Item 32. Indemnification
---------------
(a) Indemnification of Directors and Officers
The By-Laws of The Equitable Life Assurance Society of the United
States ("Equitable Life") provide, in Article VII, as follows:
7.4 Indemnification of Directors, Officers and Employees. (a) To the
extent permitted by the law of the State of New York and subject
to all applicable requirements thereof:
(i) any person made or threatened to be made a party to any
action or proceeding, whether civil or criminal, by reason
of the fact that he or she, or his or her testator or
intestate, is or was a director, officer or employee of
the Company shall be indemnified by the Company;
(ii) any person made or threatened to be made a party to any
action or proceeding, whether civil or criminal, by reason
of the fact that he or she, or his or her testator or
intestate serves or served any other organization in any
capacity at the request of the Company may be indemnified
by the Company; and
(iii) the related expenses of any such person in any of said
categories may be advanced by the Company.
(b) To the extent permitted by the law of the State of New
York, the Company may provide for further
indemnification or advancement of expenses by
resolution of shareholders of the Company or the Board
of Directors, by amendment of these By-Laws, or by
agreement. (Business Corporation Law ss. 721-726;
Insurance Law ss. 1216)
The directors and officers of Equitable Life are insured under
policies issued by Lloyd's of London, X.L. Insurance Company and ACE Insurance
Company. The annual limit on such policies is $100 million, and the policies
insure that officers and directors against certain liabilities arising out of
their conduct in such capacities.
(b) Indemnification of Principal Underwriter
To the extent permitted by law of the State of New York and subject to
all applicable requirements thereof, AXA Advisors, LLC has undertaken to
indemnify each of its directors and officers who is made or threatened to be
made a party to any action or proceeding, whether civil or criminal, by reason
of the fact the director or officer, or his or her testator or intestate, is or
was a director or officer of AXA Advisors, LLC.
(c) Undertaking
Insofar as indemnification for liability arising under the Securities
Act of 1933 ("Act") may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise,
the registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
Item 33. Business and Other Connections of Investment Adviser
----------------------------------------------------
The Equitable Life Assurance Society of the United States
("Equitable Life") acts as the investment manager for Separate Account Nos. 3,
4, 10 and 13. In providing these services to the Separate Accounts,
Equitable Life uses the personnel and facilities of Alliance Capital Management
L.P. ("Alliance"), a publicly-traded limited partnership, that is indirectly
majority-owned by Equitable Life, to provide personnel and facilities for
portfolio selection and transaction services. Alliance recommends the securities
investments to be purchased and sold for Separate Account Nos. 3, 4, 10 and 13
and arranges for the execution of portfolio transactions. Alliance
coordinates related accounting and bookkeeping functions with Equitable Life.
Both Equitable Life and Alliance are registered investment advisers under the
Investment Advisers Act of 1940.
Information regarding the directors and principal officers of
Equitable is provided in Item 29 of this Part C and is incorporated herein by
reference.
C-32
<PAGE>
Set forth below is certain information regarding the directors and
principal officers of Alliance Capital Management Corporation. The business
address of the Alliance persons whose names are preceded by an asterisk is 1345
Avenue of the Americas, New York, New York 10105.
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ---------------- -------- -------------------
<S> <C> <C>
Directors
*Dave H. Willams Director and Chairman See Column 2; Chief
of the Board Executive Officer (until
January 1999); Director-
The Equitable Life
Assurance Society of the
United States ("Equitable
Life") and AXA Financial,
Inc. Senior Executive
Vice President and Member
of Executive Committee -
AXA (January 1997 to
present).
Luis Javier Bastida Director Chief Financial Officer
Banco Bilbao Vizcaya and Member of the
Po, castella, 81-25o Executive Committee -
28046 Madrid, Spain Banco Bilbao Vizcaya,
S.A.
</TABLE>
C-33
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ---------------- -------- -------------------
<S> <C> <C>
Donald H. Brydon Director Chairman and Chief
AXA Asset Management Europe Executive Officer -
60 Grace Church Street AXA Investment Managers
London EC3V 0HN England S.A.
*Bruce W. Calvert Director, Vice See Column 2; Chief
Chairman and Chief Investment Officer (until
Executive Officer January 1999)
(January 1999 to
present)
</TABLE>
C-34
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ---------------- -------- -------------------
<S> <C> <C>
*John D. Carifa Director, President and See Column 2.
Chief Operating Officer
Henri de Castries Director Senior Executive Vice
AXA President, Financial
23, Avenue Matignon Services and Life
75008, Paris, France Insurance Activities -
AXA and various
positions with AXA
affiliated companies;
Director and Chairman
(April 1998 to present) -
AXA Financial, Inc.;
Director - Donaldson
Lufkin & Jenrette, Inc.
("DLJ"), and Equitable
Life.
Kevin C. Dolan Director Senior Vice President -
AXA Asset Management AXA; Chief Executive
Europe Officer - AXA Investment
60 Grace Church Street Managers Paris;
London EC3V 0HN England Director, Alliance
Capital Management, L.P.
Denis Duverne Director Senior Vice President
AXA International (US-UK-
23, Avenue Matignon Benelux) - AXA; Director
75008, Paris, France -Equitable Life (February
1988 to present) and DLJ.
Alfred Harrison Director, Vice Chairman See Column 2.
Alliance Capital
Management L.P.
601 Second Avenue South
Suite 5000
Minneapolis, MN 55402
Herve Hatt Director Senior Vice President,
23 AXA AXA.
23 Ave. Matignon
75008, Paris, France
Michael Hegarty Director President and Director
The Equitable Life (January 1998 to Present);
Assurance Society of the Chief Operating Officer
United States (February 1998 to Present),
1290 Avenue of the Americas Equitable Life,
New York, NY 10104 prior thereto, formerly
Vice Chairman Chase
Manhattan Corporation
(1996-1997).
</TABLE>
C-35
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ---------------- -------- -------------------
<S> <C> <C>
Benjamin D. Holloway Director Consultant to
Continental Companies Tishman/Speyer, Edward
3250 Mary Street Debartolo and The
Miami, Florida 33133 Continental Companies.
Director - Rockefeller
Center Properties, Inc.;
Chairman - Duke
University Management
Corporation.
Edward D. Miller Director Chairman (January 1998
The Edward Life Assurance to present) and Chief
Society of the United States Executive Officer
1290 Avenue of the Americas (August 1997 to present) -
New York, NY 10104 Equitable Life;
Director, President and
Chief Executive Officer -
AXA Financial, Inc.
(all August 1997 to
present); Senior
Executive Vice President
and Member of Executive
Committee - AXA
(September 1997 to
present); Director - DLJ
(November 1997 to
present), AXA Canada
(September 1998, to
present), ACMC, Inc.
(March 1998 to present,
Equitable Capital
Management Corporation
("ECMC") (March 1998 to
present); Chairman,
President and Chief
Executive Officer,
Equitable Investment
Corporation ("EIC")
(March 1998 to present);
Director - KeySpan Energy.
</TABLE>
C-36
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ---------------- -------- -------------------
<S> <C> <C>
Peter D. Noris Director Executive Vice President
The Equitable Life and Chief Investment
Assurance Society Officer - Equitable
of the United States Life and AXA Financial,
1290 Avenue of the Americas Inc.; Director -EREIM
New York, NY 10104 Managers Corp. (July 1997
to present), and EREIM LP
Corp. (October 1997 to
present).
</TABLE>
C-37
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ---------------- -------- -------------------
<S> <C> <C>
*Frank Savage Director Chairman - Alliance
Capital Management
International;
Director - ACFG; Vice-
Chairman - ECMC;
Director - Lockheed
Martin Corporation, and
ARCO Chemical
Corporation and Qualcomm
Incorporated.
</TABLE>
C-38
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND PRINCIPAL OCCUPATION
NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS)
BUSINESS ADDRESS ALLIANCE WITHIN PAST 2 YEARS
- ---------------- -------- -------------------
<S> <C> <C>
Stanley B. Tulin Director Director and Vice
The Equitable Life Chairman (both February
Assurance Society of 1998 to present) and
the United States Chief Financial Officer
1290 Avenue of the Americas (May 1996 to present) -
New York, NY 10104 Equitable Life; Executive
Vice President (May 1996
to present) and Chief
Financial Officer (May
1997 to present) - AXA
Financial, Inc.;
Director - DLJ (June
1997 to present);
Director, Chairman,
President and Chief
Executive Officer (July
1997 to present) - ACMC,
Inc.; Director, Chairman,
President and Chief
Executive Officer (July
1997 to present) - ECMC;
Director, Executive Vice
President and Chief
Financial Officer (June
1997 to present) - EIC.
*Reba White Williams Director Director of Special
Projects.
Robert B. Zoellick Director President and Chief
Center for Strategic and Executive Officer (April
International Studies 1998 to July, 1998) CSIS;
Washington, DC 20036 Professor - The U.S.
Naval Academy (December
The German Marshall Fund 1997 to present).
of the United States
11 Dupont Circle, N.W.
Suite 750
Washington DC 20036
OFFICERS
*David R. Brewer, Jr. Senior Vice President
and General Counsel
and Secretary
*Robert H. Joseph, Jr. Senior Vice President & See Column 2.
Chief Financial Officer
</TABLE>
Item 34. Principal Underwriters
(a) AXA Advisors, LLC (formerly EQ Financial Consultants, Inc.), an
affiliate of Equitable, is the principal underwriter and depositor for
its Separate Account A, Separate Account No. 301, Separate Account No.
45, Separate Account I and Separate Account FP and EQ Advisors Trust,
AXA Advisors, LLC's principal business address is 1290 Avenue of the
Americas, New York, NY 10104.
(b) See Item 29 of this Part C, which is incorporated herein by
reference.
(c) Not applicable.
Item 35. Location of Accounts and Records
The Equitable Life Assurance Society of the United States
135 West 50th Street
New York, New York 10020
1290 Avenue of the Americas
New York, New York 10104
200 Plaza Drive
Secaucus, New Jersey 07094
Item 36. Management Services
Not applicable.
C-39
<PAGE>
Item 37. Undertakings
------------
Although this is not an initial registration statement requiring
the undertakings pursuant to Item 37, the Registrant hereby undertakes the
following:
(a) to file a post-effective amendment to this registration
statement as frequently as is necessary to ensure that the
audited financial statements in the registration statement
are never more than sixteen months old for so long as
payments under the variable annuity contracts may be
accepted;
(b) to include (1) as part of its applications to purchase any
contract offered by the prospectus, a space that an
applicant can check to request a Statement of Additional
Information, or (2) a postcard or similar written
communication affixed to or included in the prospectus that
the applicant can remove to send for a Statement of
Additional Information; and
(c) to deliver any Statement of Additional Information and any
financial statements required to be made available under
this form promptly upon written or oral request.
C-40
<PAGE>
SIGNATURES
As required by the Securities Act of 1933, the Registrant certifies
that it meets the requirements of Securities Act Rule 485(b) for effectiveness
of this amendment to the Registration Statement and has caused this amendment to
the Registration Statement to be signed on its behalf, in the City and State of
New York, on the 24th day of April, 2000.
THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
(Depositor)
By: /s/ Maureen K. Wolfson
---------------------------
Maureen K. Wolfson
Vice President
As required by the Securities Act of 1933, this amendment to the
Registration Statement has been signed by the following persons in the
capacities and on the date indicated:
PRINCIPAL EXECUTIVE OFFICERS:
*Edward D. Miller Chairman of the Board, Chief Executive
Officer and Director
*Michael Hegarty President, Chief Operating Officer
and Director
PRINCIPAL FINANCIAL OFFICER:
*Stanley B. Tulin Chairman of the Board, Chief Financial
Officer and Director
PRINCIPAL ACCOUNTING OFFICER:
*Alvin H. Fenichel Senior Vice President and Controller
*DIRECTORS:
Francoise Colloc'h Donald J. Greene George T. Lowy
Henri de Castries John T. Hartley Edward D. Miller
Joseph L. Dionne John H.F. Haskell, Jr. Didier Pineau-Valencienne
Denis Duverne Michael Hegarty George J. Sella, Jr.
Jean-Rene Fourtou Mary R. (Nina) Henderson Peter J. Tobin
Norman C. Francis W. Edwin Jarmain Stanley B. Tulin
Dave H. Williams
*By: /s/ Maureen K. Wolfson
--------------------------
Maureen K. Wolfson
Attorney-in-Fact
April 24, 1999
C-41
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
EXHIBIT NO. TAG VALUE
- ----------- ---------
<S> <C> <C> <C>
13 (a) Consent of PricewaterhouseCoopers, LLP. EX-99.13a
13 (b) Powers of Attorney. EX-99.13b
27 Financial Data Schedule EX-27
</TABLE>
C-42
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 3 to the Registration
Statement No. 333-23019 on Form N-3 (the "Registration Statement") of (1) our
reports dated February 1, 2000 relating to the financial statements of Separate
Account Nos. 13, 10, 4, 3, 51 and 66 of The Equitable Life Assurance Society of
the United States for the year ended December 31, 1999, and (2) our report dated
February 1, 2000 relating to the consolidated financial statements of The
Equitable Life Assurance Society of the United States for the year ended
December 31, 1998, which reports appear in such Statement of Additional
Information, and to the incorporation by reference of our reports into the
Prospectus which constitutes part of this Registration Statement. We also
consent to the references to us under the headings "Condensed Financial
Information" and "About Our Independent Accountants" in the Prospectus.
/s/PricewaterhouseCoopers LLP
- ------------------------------
PricewaterhouseCoopers LLP
New York, New York
April 24, 2000
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Francoise Colloc'h
----------------------------------
Francoise Colloc'h
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Norman C. Francis
----------------------------------
Norman C. Francis
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Michael Hegarty
----------------------------------
Michael Hegarty
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Edward Miller
----------------------------------
Edward Miller
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Denis Duverne
----------------------------------
Denis Duverne
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Donald J. Greene
----------------------------------
Donald J. Greene
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ George T. Lowy
----------------------------------
George T. Lowy
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Peter J. Tobin
----------------------------------
Peter J. Tobin
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Joseph L. Dionne
----------------------------------
Joseph L. Dionne
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ John T. Hartley
----------------------------------
John T. Hartley
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ John H.F. Haskell, Jr.
----------------------------------
John H.F. Haskell, Jr.
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
5th day of April, 2000.
/s/ Dave H. Williams
----------------------------------
Dave H. Williams
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Mary B. (Nina) Henderson
----------------------------------
Mary B. (Nina) Henderson
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
4th day of April, 2000.
/s/ George J. Sella, Jr.
----------------------------------
George J. Sella, Jr.
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ W. Edwin Jarmain
----------------------------------
W. Edwin Jarmain
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
13th day of April, 2000.
/s/ Alvin H. Fenichel
----------------------------------
Alvin H. Fenichel
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
13th day of April, 2000.
/s/ Jean-Rene Fourtou
----------------------------------
Jean-Rene Fourtou
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
23rd day of March, 2000.
/s/ Stanley B. Tulin
----------------------------------
Stanley B. Tulin
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
4th day of April, 2000.
/s/ Henri de Castries
----------------------------------
Henri de Castries
Rev. 2/2000
122055
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner and each of them (with full power to each of them to act alone),
his or her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or her
name, place and stead, to execute and file any of the documents referred to
below relating to registrations under the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 with respect to any
insurance or annuity contracts or other agreements providing for allocation of
amounts to Separate Accounts of the Company, and related units or interests in
Separate Accounts: registration statements on any form or forms under the
Securities Act of 1933 and the Investment Company Act of 1940 and annual reports
on any form or forms under the Securities Exchange Act of 1934, and any and all
amendments and supplements thereto, with all exhibits and all instruments
necessary or appropriate in connection therewith, each of said attorneys-in-fact
and agents and his, her or their substitutes being empowered to act with or
without the others, and to have full power and authority to do or cause to be
done in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
10th day of April, 2000.
/s/ Didier Pineau Valencienne
----------------------------------
Didier Pineau Valencienne
Rev. 2/2000
122055
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<CIK> 0000727920
<NAME> Sep Acct. No. 10 (RIA)
<SERIES>
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<NAME> The Alliance Balanced Fund
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<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> Dec-31-1999
<PERIOD-START> Jan-01-1999
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<DIVIDEND-INCOME> 1,043,948
<INTEREST-INCOME> 4,751,668
<OTHER-INCOME> 0
<EXPENSES-NET> (2,570,588)
<NET-INVESTMENT-INCOME> 3,225,028
<REALIZED-GAINS-CURRENT> 26,193,319
<APPREC-INCREASE-CURRENT> (8,283,953)
<NET-CHANGE-FROM-OPS> 21,134,394
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000727920
<NAME> Sep Acct. No. 4 (RIA)
<SERIES>
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<NAME> The Alliance Common Stock Fund
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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