<PAGE> 1
REGISTRATION NOS. 33-20453
811-5166
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
PRE-EFFECTIVE AMENDMENT NO.
POST-EFFECTIVE AMENDMENT NO. 24 [X]
REGISTRATION STATEMENT
UNDER THE
INVESTMENT COMPANY ACT OF 1940 [X]
AMENDMENT NO. 24
(CHECK APPROPRIATE BOX OR BOXES.)
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MONY AMERICA VARIABLE ACCOUNT A
(EXACT NAME OF REGISTRANT)
MONY LIFE INSURANCE COMPANY
OF AMERICA
(NAME OF DEPOSITOR)
1740 BROADWAY
NEW YORK, NEW YORK 10019
(ADDRESS OF DEPOSITOR'S PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
DEPOSITOR'S TELEPHONE NUMBER, INCLUDING AREA CODE (212) 708-2000
FREDERICK C. TEDESCHI
VICE PRESIDENT AND CHIEF COUNSEL -- OPERATIONS
MONY LIFE INSURANCE COMPANY
1740 BROADWAY
NEW YORK, NEW YORK 10019
(NAME AND ADDRESS OF AGENT FOR SERVICE)
------------------------
APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: It is proposed that this
filing will become effective on May 1, 2000 pursuant to paragraph (a) of Rule
485.
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STATEMENT PURSUANT TO RULE 24f-2
The Registrant registers an indefinite number or amount of its flexible
payment variable annuity contracts under the Securities Act of 1933 pursuant to
Rule 24f-2 under the Investment Company Act of 1940. The Rule 24f-2 notice for
Registrant's fiscal year ending December 31, 1999 will be filed on or before
March 31, 2000.
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<PAGE> 2
CROSS REFERENCE SHEET
(REQUIRED BY RULE 495)
<TABLE>
PART A
ITEM NO. LOCATION
--- ------------------------------------------
<C> <S> <C>
1. Cover Page...................................... Cover Page
2. Definitions..................................... Definitions
3. Synopsis........................................ Summary of the Contract
4. Condensed Financial Information................. Condensed Financial Information
5. General Description of Registrant, Depositor,
and Portfolio Companies......................... MONY Life Insurance Company of America;
MONY America Variable Account A; The
Funds; Charges and Deductions
6. Deductions and Expenses......................... Charges and Deductions
7. General Description of Variable Annuity
Contracts....................................... Payment and Allocation of Purchase
Payments; Other Provisions
8. Annuity Period.................................. Annuity Provisions
9. Death Benefit................................... Death Benefit; Annuity Provisions
10. Purchases and Contract Value.................... Payment and Allocation of Purchase
Payments
11. Redemptions..................................... Surrenders
12. Taxes........................................... Federal Tax Status
13. Legal Proceedings............................... Legal Proceedings
14. Table of Contents of Statement of Additional
Information..................................... Table of Contents of Statement of
Additional Information
PART B
15. Cover Page...................................... Cover Page
16. Table of Contents............................... Table of Contents
17. General Information and History................. MONY Life Insurance Company of America
18. Services........................................ Not Applicable
19. Purchases of Securities Being Offered........... Not Applicable
20. Underwriters.................................... Prospectus -- MONY Life Insurance Company
of America
21. Calculation of Performance Data................. Performance Data
22. Annuity Payments................................ Not Applicable
23. Financial Statements............................ Financial Statements
PART C
Information related to the following Items is set forth under the appropriate Item, so numbered,
in Part C to this Registration Statement.
24. Financial Statements and Exhibits
25. Directors and Officers of the Depositor
26. Persons Controlled by or Under Common Control with the Depositor or Registrant
27. Number of Contractowners
28. Indemnification
29. Principal Underwriters
30. Location of Accounts and Records
31. Management Services
32. Undertakings
</TABLE>
<PAGE> 3
PROSPECTUS
Dated May 1, 2000
Individual Flexible Payment Variable Annuity Contracts
Issued By
MONY America Variable Account A
MONY Life Insurance Company of America
MONY Life Insurance Company of America (the "Company") issues the flexible
payment variable annuity contract described in this prospectus. Among the
contract's many terms are:
Allocation of Purchase Payments and Surrender Value
- - You can tell us what to do with your purchase payments. You can also tell us
what to do with the Cash Value your contract may create for you resulting from
those purchase payments.
- You can tell us to place them into a separate account. That separate
account is called MONY America Variable Account A.
- If you do, you can also tell us to place your purchase payments and
Cash Values into any or all of 9 different subaccounts. Each of these
subaccounts seeks to achieve a different investment objective. The
subaccounts invest in shares of the following portfolios of the MONY
Series Fund, Inc. and Enterprise Accumulation Trust.
- MONY Series Fund, Inc.
- Money Market Portfolio, Government Securities Portfolio, Long Term Bond
Portfolio and Intermediate Term Bond Portfolio
- The Enterprise Accumulation Trust
- Equity Income Portfolio, Managed Portfolio, Small Company Growth
Portfolio, Small Company Value Portfolio, International Growth Portfolio
and High Yield Bond Portfolio
- You can also tell us to place some or all of your purchase payments and
Cash Values into our Guaranteed Interest Account. Our account will pay you
a guaranteed interest rate annually, and we will guarantee that those
purchase payments and Cash Values will not lose any value, so long as you
leave the purchase payments and Cash Values in the Account. Purchase
payments and Cash Values you place into the Guaranteed Interest Account
become part of our assets.
Living Benefits
- Annuity Benefits
- This contract is designed to pay to you the Cash Value in periodic
installments.
- Cash Value Benefits
- You may ask for some or all of the contract's Cash Value at any time.
If you do, we may deduct a surrender charge.
Death Benefit
- - We will pay a death benefit to your beneficiary upon the death of the person
you name as annuitant before the annuity commencement date.
Fees and Charges
- - The contract allows us to deduct certain charges from the surrender value.
These charges are detailed in this prospectus.
STATEMENT OF ADDITIONAL INFORMATION
A Statement of Additional Information dated May 1, 2000 containing additional
information about the Contracts is incorporated herein by reference. It has been
filed with the Securities and Exchange Commission and is available from the
Company without charge upon written request to the address shown on the request
form on page 42 of this prospectus or by telephoning 1-800-487-6669. The Table
of Contents of the Statement of Additional Information can be found on page 42
of this prospectus.
This prospectus is not an offer to sell or a solicitation of an offer to buy the
Contracts in any jurisdiction where such may not be lawfully made.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or passed upon the
adequacy or accuracy of the prospectus. Any representation to the contrary is a
criminal offense. This prospectus contains basic information that you should
know before investing. It comes with prospectuses for the MONY Series Fund,
Inc., Enterprise Accumulation Trust, the Guaranteed Interest Account and MONY
Life Insurance Company of America. You should read these prospectuses carefully
and keep them for future reference.
MONY Life Insurance Company of America
1740 Broadway, New York, New York 10019
1-800-487-6669
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[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 5
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
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<S> <C>
Summary of the Contract..................................... 1
Purpose of the Contract................................... 1
Purchase Payments and Cash Values......................... 1
MONY America Variable Account A........................... 2
Guaranteed Interest Account............................... 2
Minimum Purchase Payments................................. 2
Transfer of Cash Values................................... 2
Surrender................................................. 3
Charges and Deductions.................................... 3
Right to Return Contract Provision........................ 3
Death Benefit............................................. 3
Detailed Information About the Company
and MONY America Variable Account A....................... 9
MONY Life Insurance Company of America.................... 9
Year 2000 Issue........................................... 9
MONY America Variable Account A........................... 11
The Funds................................................... 13
MONY Series Fund Inc. .................................... 14
Enterprise Accumulation Trust............................. 14
Purchase of Portfolio Shares by MONY America Variable
Account A.............................................. 16
Guaranteed Interest Account............................... 17
Detailed Information About the Policy....................... 17
Payment and Allocation of Purchase Payments............... 17
Surrenders.................................................. 23
Death Benefit............................................... 25
Death Benefit Provided by the Contract.................... 25
Election and Contract Date of Election.................... 25
Payment of Death Benefit.................................. 25
Charges and Deductions...................................... 26
Deductions from Purchase Payments......................... 26
Charges Against Cash Value................................ 26
Annuity Provisions.......................................... 30
Annuity Payments.......................................... 30
Election and Change of Settlement Option.................. 31
Settlement Options........................................ 31
Frequency of Annuity Payments............................. 32
Additional Provisions..................................... 32
Other Provisions............................................ 32
Ownership................................................. 32
Provision Required by Section 72(s) of the Code........... 33
Provision Required by Section 401(a)(9) of the Code....... 34
Contingent Annuitant...................................... 34
Assignment................................................ 35
Change of Beneficiary..................................... 35
Substitution of Securities................................ 35
</TABLE>
i
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<TABLE>
<CAPTION>
PAGE
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<S> <C>
Modification of the Contracts............................. 36
Change in Operation of MONY America Variable Account A.... 36
Voting Rights............................................... 36
Distribution of the Contracts............................... 37
Federal Tax Status.......................................... 38
Introduction.............................................. 38
Tax Treatment of the Company.............................. 38
Taxation of Annuities in General.......................... 38
Annuity Contracts Governed by Section 403(b) of the
Code................................................... 39
Retirement Plans.......................................... 40
Special Exchange Offer...................................... 40
Performance Data............................................ 40
Additional Information...................................... 41
Legal Proceedings........................................... 42
Financial Statements........................................ 42
</TABLE>
ii
<PAGE> 7
SUMMARY OF THE CONTRACT
This summary provides you with a brief overview of the more important
aspects of your Contract. It is not intended to be complete. More detailed
information is contained in this prospectus on the pages following this Summary
and in your contract. This summary and the entire prospectus will describe the
part of the contract involving MONY America Variable Account A. The prospectus
also briefly will describe the Guaranteed Interest Account And the portfolios
offered by MONY Series Fund, Inc. and Enterprise Accumulation Trust. More
detailed information about the Guaranteed Interest Account is contained in the
prospectus attached to this prospectus and in your contract. More detailed
information about the portfolios offered by MONY Series Fund, Inc. and
Enterprise Accumulation Trust is contained in the prospectus attached to this
prospects.
DEFINITIONS
THIS PROSPECTUS CONTAINS SOME SPECIALIZED TERMS. WE HAVE DEFINED SPECIALIZED
TERMS ON THE PAGE WHERE THEY FIRST APPEAR. THE DEFINITIONS WILL APPEAR ON THE
PAGE IN A BOX LIKE THIS ONE.
PURPOSE OF THE CONTRACT
The Contract is an Individual Flexible Payment Variable Annuity Contract
(the "Contract" or "Contracts").
The Contract is designed to allow an Contractholder to make purchase
payments to the Company under the Contract. Those purchase payments are
allocated at the Contractholder's choice among the subaccounts of MONY America
Variable Account A and the Guaranteed Interest Account. Those purchase payments
can accumulate for a period of time and create Cash Values for the
Contractholder. The Contractholder can chose the length of time that such
purchase payments may accumulate. The Contractholder may chose at some point in
the future to receive annuity benefits based upon those accumulated Cash Values.
An Contractholder may use the Contract's design to accumulate Cash Values
for various purposes including retirement or to supplement other retirement
programs. Some of these retirement programs (the "Qualified Plans") may qualify
for federal income tax advantages available under Sections 401, 403, 408, and
457 of the Internal Revenue Code (the "Code").
QUALIFIED PLANS -- Retirement plans that receive favorable tax treatment under
Section 401, 403, 408 or 457 of the Internal Revenue Code.
QUALIFIED CONTRACTS -- Contracts issued under Qualified Plans.
The Contract is also designed to allow the Contractholder to request
payments of part or all of the accumulated Cash Values before the Contractholder
begins to receive annuity benefits. This payment may result in the imposition of
a surrender charge. It may also be subject to income and other taxes.
"An endorsement is available on or after June 1, 2000 for all contracts
issued in the State of Florida which will amend this Contract to provide
benefits, features, charges and major provisions as described in the current
MONY Custom Master prospectus and any amendments to it."
PURCHASE PAYMENTS AND CASH VALUES
The purchase payments you make for the Contract are received by the
Company. Currently those purchase payments are not subject to taxes imposed by
the United States Government or any state or local government.
1
<PAGE> 8
You may allocate your purchase payments to one or more of the subaccounts
of MONY America Variable Account A that are available under the Contract and/or
to the Guaranteed Interest Account. The purchase payments you allocate among the
various subaccounts of MONY America Variable Account A may increase or decrease
in value on any day depending on the investment experience of the subaccounts
you select. There is no guarantee that the value of the purchase payments you
allocate to any of the subaccounts of MONY America Variable Account A will
increase or that the purchase payments you make will not lose value.
Purchase payments you allocate to the Guaranteed Interest Account will be
credited with interest at a rate determined by the Company. That rate will not
be less than 3.5%.
MONY AMERICA VARIABLE ACCOUNT A
MONY America Variable Account A is a separate investment account of MONY
Life Insurance Company of America (the "Company"). MONY America Variable Account
A's assets are owned by the Company, but are not chargeable with liabilities
arising from any other business the Company conducts.
The subaccounts of MONY America Variable Account A invest in shares of MONY
Series Fund, Inc. and The Enterprise Accumulation Trust (collectively called the
"Funds") at their net asset value. (See "The Funds" at page 13). Contractholder
bear the entire investment risk for all amounts allocated to MONY America
Variable Account A subaccounts.
CONTRACTHOLDERS -- The person so designated in the application. If a Contract
has been absolutely assigned, the assignee becomes the Contractholder. A
collateral assignee is not the Contractholder.
PURCHASE PAYMENT (PAYMENT) -- An amount paid to the Company by the
Contractholder or on the Contractholder's behalf as consideration for the
benefits provided by the Contract.
GUARANTEED INTEREST ACCOUNT
The Guaranteed Interest Account is part of the Company's general account.
It consists of all the Company's assets other than assets allocated to
segregated investment accounts of the Company. Net Purchase Payments allocated
to the Guaranteed Interest Account will be credited with interest at rates
guaranteed by the Company for specified periods. (See "Guaranteed Interest
Account" at page 16.)
CASH VALUE -- The dollar value as of any Valuation Date of all amounts
accumulated under the Contract.
VALUATION DATE -- Each day that the New York Stock Exchange is open for trading.
MINIMUM PURCHASE PAYMENTS
The minimum purchase payment for individuals varies depending upon the
purchaser of the contract and the method of paying the purchase payments. See
"Payment and Allocation of Payment" on page 17.
Additional purchase payments of at least $100 may be made at any time.
However, for certain automatic payment plans, the smallest additional payment is
$50. (See "Issuance of the Contract" at page 17.) The Company may change any of
these requirements in the future.
TRANSFER OF CASH VALUES
You may transfer Cash Value among the subaccounts and to or from the
Guaranteed Interest Account. Transfers may be made by telephone if the proper
form has been completed, signed, and received by the
2
<PAGE> 9
Company at its Operations Center located at 1 MONY Plaza, Syracuse, New York
13202. See "Transfers", page 21.
SURRENDER
You may surrender all or part of the Contract at any time and receive its
surrender value while the annuitant is alive prior to the annuity commencement
date. We may impose a surrender charge. The amounts you receive upon surrender
may be subject to income taxes. (See "Federal Tax Status" at page 37.)
CHARGES AND DEDUCTIONS
The Contract provides for the deduction of various charges and expenses
from the Cash Value of the Contract. These deductions are summarized in the
table on pages 25 and discussed in greater detail beginning on page 26.
NON-QUALIFIED CONTRACTS -- Contracts issued under Non-Qualified Plans.
NON-QUALIFIED PLANS -- Retirement Plans that do not receive favorable tax
treatment under Sections 401, 403, 408, or 457 of the Internal Revenue Code.
RIGHT TO RETURN CONTRACT PROVISION
You have the right to examine the Contract when you receive it. You may
return the Contract for any reason within ten days from the day you receive it.
You will receive a full refund of the purchase payments received by the Company.
During the Free Look Period, purchase payments will be retained in the Money
Market Subaccount of Variable Account A.
DEATH BENEFIT
If the Annuitant (and the Contingent Annuitant, if any) dies before the
date the annuity payments start, the Company will pay a death benefit to the
Beneficiary. Under certain circumstances, an Enhanced Death Benefit may be
payable. If the Annuitant dies after annuity payments start, no death benefit is
payable except as may be payable under the settlement option selected. (See
"Death Benefit" at page 24.)
ANNUITANT -- The person upon whose continuation of life any annuity payment
depends.
CONTINGENT ANNUITANT -- The party designated by the Contractholder to become the
Annuitant, subject to certain conditions, on the death of the Annuitant.
BENEFICIARY -- The party entitled to receive benefits payable at the death of
the Annuitant or (if applicable) the Contingent Annuitant.
3
<PAGE> 10
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY AMERICA VARIABLE ACCOUNT A
TABLE OF FEES FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
CONTRACTHOLDER TRANSACTION EXPENSES:
Maximum Deferred Sales Load (Surrender Charge)
(as a percentage of amount surrendered)................... 7%*
MAXIMUM ANNUAL CONTRACT CHARGE.............................. $ 30**
MAXIMUM TRANSFER CHARGE..................................... $ 25**
SEPARATE ACCOUNT ANNUAL EXPENSES:
Maximum Mortality and Expense Risk Fees..................... 1.25%***
Total Separate Account Annual Expenses...................... 1.25%***
</TABLE>
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* The Surrender Charge percentage, which reduces to zero as shown in the table
on page 28, is determined by the number of Contract Anniversaries since a
purchase payment was received. The Surrender Charge may be reduced under
certain circumstances which include reduction in order to guarantee that
certain amounts may be received free of surrender charge. See "Charges
against Cash Value -- Guaranteed Free Surrender Amount" at page 29.
** For Non-Qualified Contracts the Annual Contract Charge is currently $30. For
Qualified Contracts (other than those issued for IRA and SEP-IRA) the Annual
Contract Charge is $15 per contract year. However, the Company may in the
future change the amount of the charge to an amount not exceeding $50 per
contract year. See "Charges Against Cash Value -- Annual Contract Charge",
at page 26. The Transfer Charge currently is $0. However, the Company has
reserved the right to impose a charge for each transfer, which will not
exceed $25. See "Charges Against Cash Value -- Transfer Charge" at page 27.
*** The Mortality and Expense Risk charge is deducted daily equivalent to a
current annual rate of 1.25 percent from the value of the net assets of the
Separate Account.
ANNUAL EXPENSES OF MONY SERIES FUND, INC. AND THE ENTERPRISE ACCUMULATION TRUST:
MONY SERIES FUND, INC.
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1999
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
GOVERNMENT
INTERMEDIATE TERM LONG TERM SECURITIES MONEY MARKET
BOND PORTFOLIO BOND PORTFOLIO PORTFOLIO PORTFOLIO
----------------- -------------- ---------- ------------
<S> <C> <C> <C> <C>
Expenses...................................... 0.07% 0.05% 0.08% 0.04%
Management Fees............................... 0.50% 0.50% 0.50% 0.40%
Total Annual Expenses......................... 0.57% 0.55% 0.58%(1) 0.44%
</TABLE>
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(1) Expenses do not include custodial credits. With custodial credits, expenses
would have been 0.57%.
ENTERPRISE ACCUMULATION TRUST
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1999
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
SMALL HIGH
COMPANY INTERNATIONAL YIELD
EQUITY VALUE MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C>
Expenses..................................... 0.04% 0.04% 0.04% 0.16% 0.09%
Management Fees.............................. 0.78% 0.80% 0.72% 0.85% 0.60%
Total Accumulation Trust Annual Expenses..... 0.82% 0.84% 0.76% 1.01% 0.69%
</TABLE>
4
<PAGE> 11
The purpose of the Table of Fees beginning on page 5 is to assist the
Contractholder in understanding the various costs and expenses that the
Contractholder will bear, directly or indirectly. The table reflects the
expenses of the separate account as well as of MONY Series Fund, Inc. and
Enterprise Accumulation Trust. MONY Series Fund, Inc. and the Enterprise
Accumulation Trust have provided information relating to their respective
operations. The expenses borne by the Separate Account are explained under the
caption "Charges and Deductions" at page 25 of this Prospectus. The expenses
borne by the MONY Series Fund, Inc. are explained under the caption "Management
of the Fund" at page 15 of the accompanying prospectus for MONY Series Fund,
Inc.. The expenses borne by the Enterprise Accumulation Trust assume that the
expense reimbursements in effect on and after May 1, 1990 for the Equity, Small
Company Value, and Managed Portfolios which limit the total annual expenses to
1.00% of average net assets and expense reimbursements which, on and after
November 16, 1994 (commencement of operations), limit the total annual expenses
of the International Growth Portfolio to 1.55% of average net assets and the
High Yield Bond Portfolio to .85% of average net assets, will continue
throughout the period shown and are explained under the caption "Portfolio
Management" at page 19 of the accompanying prospectus for the Accumulation
Trust. Effective on and after May 1, 1996 and at least through April 1, 1999, as
a part of the increase in investment advisory fees, the investment adviser has
agreed to reimburse the Accumulation Trust for expenses which exceed .95% of the
average daily net assets of the Equity, Small Company Value, and Managed
Portfolios of the Trust. The table does not reflect income taxes or penalty
taxes which may become payable under the Internal Revenue Code or premium or
other taxes which may be imposed under state or local laws.
EXAMPLE
If you surrender your Contract at the end of the time periods shown below,
you would pay the following expenses on a $1,000 investment, assuming 5% annual
return on assets:
<TABLE>
<CAPTION>
AFTER AFTER AFTER AFTER
SUBACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
MONY Money Market........................................... $81 $109 $140 $207
MONY Intermediate Bond...................................... $82 $113 $147 $221
MONY Long Term Bond......................................... $82 $112 $145 $219
MONY Government Securities.................................. $82 $113 $147 $222
Enterprise Equity........................................... $85 $120 $159 $247
Enterprise Small Company Value.............................. $85 $121 $160 $249
Enterprise Managed.......................................... $84 $119 $156 $241
Enterprise International Growth............................. $86 $126 $169 $267
Enterprise High Yield....................................... $83 $116 $152 $234
</TABLE>
If you annuitize at the end of the time periods shown below, you would pay
the following expenses on a $1,000 investment, assuming 5% annual return on
assets:
<TABLE>
<CAPTION>
AFTER AFTER AFTER AFTER
SUBACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
MONY Money Market........................................... $81 $109 $ 95 $207
MONY Intermediate Bond...................................... $82 $113 $102 $221
MONY Long Term Bond......................................... $82 $112 $101 $219
MONY Government Securities.................................. $82 $113 $103 $222
Enterprise Equity........................................... $85 $120 $115 $247
Enterprise Small Company Value.............................. $85 $121 $116 $249
Enterprise Managed.......................................... $84 $119 $112 $241
Enterprise International Growth............................. $86 $126 $125 $267
Enterprise High Yield....................................... $83 $116 $108 $234
</TABLE>
5
<PAGE> 12
If you do not surrender your Contract at the end of the time periods shown
below, you would pay the following expenses on a $1,000 investment, assuming 5%
annual return on assets:
<TABLE>
<CAPTION>
AFTER AFTER AFTER AFTER
SUBACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
MONY Money Market........................................... $18 $55 $ 95 $207
MONY Intermediate Bond...................................... $19 $59 $102 $221
MONY Long Term Bond......................................... $19 $59 $101 $219
MONY Government Securities.................................. $19 $60 $103 $222
Enterprise Equity........................................... $22 $67 $115 $247
Enterprise Small Company Value.............................. $22 $68 $116 $249
Enterprise Managed.......................................... $21 $65 $112 $241
Enterprise International Growth............................. $24 $73 $125 $267
Enterprise High Yield....................................... $20 $63 $108 $234
</TABLE>
The examples above should not be considered a representation of past or
future expenses, and actual expenses may be greater or lesser than those shown.
All Variable Account expenses as well as portfolio company (the Funds) expenses,
are reflected in the examples. Expense reimbursements are reflected only in
years where there is a contractual obligation in effect. Not reflected in the
examples which assume surrender at the, end of each time period are income taxes
and penalty taxes which may become payable under the Internal Revenue Code or
premium or other taxes which may be imposed under state or local laws.
6
<PAGE> 13
CONDENSED FINANCIAL INFORMATION
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY AMERICA VARIABLE ACCOUNT A
ACCUMULATION UNIT VALUES
<TABLE>
<CAPTION>
UNIT VALUE
---------------------
DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31,
SUBACCOUNT INCEPTION* 1990 1991 1992 1993 1994 1995 1996
---------- ---------- --------- --------- --------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Equity....................... $10.00 $11.87 $15.40 $17.94 $19.11 $19.60 $26.82 $33.18
Small Company Value.......... 10.00 10.61 15.53 18.64 22.01 21.73 24.11 26.49
Intermediate Term Bond....... 10.00 11.99 13.66 14.43 15.37 14.95 16.95 17.36
Long Term Bond............... 10.00 12.32 14.32 15.39 17.36 16.09 20.68 20.36
Managed...................... 10.00 12.96 18.71 21.93 23.91 24.22 35.17 42.90
Money Market................. 10.00 12.10 12.64 12.91 13.11 13.45 14.03 14.57
Government Securities........ 10.00 -- -- -- -- 10.04 11.00 11.25
International Growth......... 10.00 -- -- -- -- 9.91 11.22 12.48
High Yield Bond.............. 10.00 -- -- -- -- 10.05 11.54 12.88
<CAPTION>
DEC. 31, DEC. 31, DEC. 31,
SUBACCOUNT 1997 1998 1999
---------- ---------- ---------- ---------
<S> <C> <C> <C>
Equity....................... $41.22 $44.74
Small Company Value.......... 37.77 40.90
Intermediate Term Bond....... 18.47 19.60
Long Term Bond............... 22.81 24.81
Managed...................... 52.75 56.24
Money Market................. 15.15 15.75
Government Securities........ 11.91 12.57
International Growth......... 12.98 14.72
High Yield Bond.............. 14.42 14.76
</TABLE>
<TABLE>
<CAPTION>
UNITS OUTSTANDING
---------------------------------
DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31,
SUBACCOUNT 1990 1991 1992 1993 1994 1995 1996
---------- --------- --------- --------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Equity.................................... 724,942 932,249 1,556,288 2,956,822 3,865,965 5,426,511 8,212,227
Small Company Value....................... 205,615 549,782 1,476,360 4,249,653 5,924,266 6,055,472 6,346,453
Intermediate Term Bond.................... 224,861 335,862 673,719 1,673,790 1,753,781 1,806,518 1,916,050
Long Term Bond............................ 409,738 618,029 1,193,954 2,673,790 2,245,807 2,477,643 2,506,531
Managed................................... 2,732,585 4,291,015 9,199,182 18,964,250 24,924,610 31,540,233 39,371,381
Money Market.............................. 1,324,393 1,570,127 2,718,704 3,698,103 5,304,884 6,504,679 8,278,977
Government Securities..................... -- -- -- -- 17,347 679,711 1,269,214
International Growth...................... -- -- -- -- 208,202 1,456,982 3,610,923
High Yield Bond........................... -- -- -- -- 6,870 1,194,315 2,361,710
<CAPTION>
DEC. 31, DEC. 31, DEC. 31,
SUBACCOUNT 1997 1998 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C>
Equity.................................... 10,706,757 11,629,793
Small Company Value....................... 8,401,211 8,392,405
Intermediate Term Bond.................... 1,941,792 2,414,529
Long Term Bond............................ 2,645,732 4,000,596
Managed................................... 43,843,754 41,556,499
Money Market.............................. 8,585,010 18,280,159
Government Securities..................... 1,761,542 3,591,602
International Growth...................... 5,021,078 4,954,694
High Yield Bond........................... 4,081,656 5,868,866
</TABLE>
- ---------------
* MONY America Variable Account A commenced operations on November 25, 1987. The
Intermediate Term Bond, Long Term Bond, and Money Market Subaccounts became
available for allocation on that date, however, only the Money Market
Subaccount had operations in 1987. The Equity, Small Company Value, and
Managed Subaccounts became available for allocation on August 1, 1988. The
Government Securities, International Growth, and High Yield Bond Subaccounts
first became available for allocation on November 16, 1994.
7
<PAGE> 14
The following chart may help you understand how the contract works:
[MONY FLOW CHART]
8
<PAGE> 15
DETAILED INFORMATION ABOUT THE COMPANY
AND MONY AMERICA VARIABLE ACCOUNT A
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY Life Insurance Company of America issues the policy. In this
prospectus MONY Life Insurance Company of America is called the "Company". The
Company is a stock life insurance company organized in the State of Arizona. The
Company is currently licensed to sell life insurance and annuities in 49 states
(not including New York), the District of Columbia, Puerto Rico, and the U.S.
Virgin Islands.
The Company is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). The principal offices of both MONY and the Company are located at 1740
Broadway, New York, New York 10019. MONY was organized as a mutual life
insurance company under the laws of the State of New York in 1842 as The Mutual
Life Insurance Company of New York. In 1998, The Mutual Life Insurance Company
of New York converted to a stock company through demutualization and was renamed
MONY Life Insurance Company. The demutualization does not have any material
effect on the Company, MONY America Variable Account A, or the contract.
At August 16, 1999, the rating assigned to the Company by A.M. Best
Company, Inc., an independent insurance company rating organization, was A
(Excellent). This rating is based upon an analysis of financial condition and
operating performance. The A.M. Best rating of the Company should be considered
only as bearing on the ability of the Company to meet its obligations under the
policies.
YEAR 2000 ISSUE
State of Readiness
The Company has a service agreement with MONY whereby MONY provides
services and equipment including computer and information systems to the Company
to conduct its business.
In 1996, the Company in conjunction with MONY and affiliates (hereafter
collectively referred to as "MONY and its subsidiaries") initiated a formal Year
2000 Project (the "Project") to resolve the Year 2000 issue. The scope of the
Project was identified, and funding was established.
The scope of the Company's Project included: ensuring the compliance of all
applications, operating systems and hardware on mainframe, PC and local area
network ("LAN") platforms; ensuring the compliance of voice and data network
software and hardware; addressing issues related to non-IT systems in buildings,
facilities and equipment which may contain date logic in embedded chips; and
addressing the compliance of key vendors and other third parties. Each system is
tested using a standard testing methodology which includes unit testing,
baseline testing, and future date testing. Future date testing includes critical
dates near the end of 1999 and into the year 2000.
At December 31, 1999, all of MONY and its subsidiaries' existing
application systems had been remediated, current date tested and future date
tested. Newly acquired applications and new releases of software packages were
tested in 1999 as implemented.
In late 1998 and early 1999, the Company contracted with a consulting firm
to perform an Independent Validation and Verification ("IV&V") of the Year 2000
remediation of selected critical applications. The results of the IV&V indicated
that the Company's remediation and testing processes were highly effective and
had achieved a high level of compliance.
All of the operating systems, systems software, and hardware for mainframe,
PC and LAN platforms are deemed compliant based on information supplied by
vendors verbally, in writing, or on the vendor's Internet site. Essentially all
critical hardware and software were compliant and tested by December 31, 1998.
The few remaining items were resolved and tested prior to December 31, 1999. We
continue to monitor for Year 2000 compliance in 2000 as applications, systems
software and hardware are upgraded or replaced. All critical non-IT systems had
been remediated as of December 31, 1999, and ongoing monitoring for year 2000
compliance will continue in 2000.
9
<PAGE> 16
As part of the Project, we identified and contacted significant service and
information providers, external vendors, suppliers, and other third parties
(including telecommunication, electrical, security, and HVAC systems) that we
believe will be critical to business operations after January 1, 2000.
Procedures have been undertaken to ascertain with reasonable certainty their
current and reasonably anticipated states of Year 2000 readiness through
questionnaires, compliance letters, interviews, on-site visits, and other
available means. We will continue to monitor and evaluate the progress of our
suppliers and customers on this matter in 2000.
Costs
The total cost of the Year 2000 Project was $2.4 million. The total amount
expended on the Project during 1999, 1998, and 1997 were $0.6 million, $1.4
million, and $0.4 million, respectively. These amounts also include costs
associated with the development of contingency plans. The Company does not
expect to incur any future material costs on the Year 2000 Project.
Risks
The Company has not experienced any material (or significant) Year 2000
related problems post-December 31, 1999 with its operations or with any external
parties with which business is conducted. However, there is still the
possibility that future Year 2000 related failures in the Company's systems or
equipment and/or failure of external parties to achieve Year 2000 compliance
could affect the distribution and sale of the life insurance, annuity and
investment products and could have a material adverse effect on the Company's
consolidated financial position and results of its operations.
Contingency Plans
The Company retained outside consultants to assist in the development of
Business Continuity Plans ("BCP"), which include identification of third party
service providers, information systems, equipment, facilities and other items
which are mission-critical to the operation of the business. In conjunction with
this effort, the Company developed a Year 2000 Contingency Plan (the
"Contingency Plan") to address Y2K related failures of third parties, among
other factors that are critical to the ongoing operation of the business. The
Contingency Plan provides alternate means of processing critical work and
services, as well as a methodology for selection and retention of alternate
service providers, vendors, and suppliers, if necessary. Additional maintenance
and refinement of BCP will continue in 2000, as other critical Year 2000 dates
approach (such as February 29, 2000). The Company believes that due to the
pervasive and evolving nature of potential Year 2000 issues, the contingency
planning process is an ongoing one that will require further modifications as
the Company obtains additional information regarding the status of third party
Year 2000 readiness.
MONY AMERICA VARIABLE ACCOUNT A
MONY America Variable Account A is a separate investment account of the
Company. Presently, only purchase payments for individual flexible payment
variable annuity contracts are permitted to be allocated to MONY America
Variable Account A. The assets in MONY America Variable Account A are kept
separate from the general Account Assets and other separate accounts of the
Company.
The Company owns the assets in MONY America Variable Account A. The Company
is required to keep assets in MONY America Variable Account A that equal the
total market value of the contract liabilities funded by MONY America Variable
Account A. Realized or unrealized income gains or losses of MONY America
Variable Account A are credited or charged against MONY America Variable Account
A assets without regard to the other income, gains or losses of the Company.
Reserves and other liabilities under the contracts are assets of MONY America
Variable Account A. MONY America Variable Account A assets are not chargeable
with liabilities of the Company's other businesses. All obligations under the
contract are general corporate obligations of the Company. The Company may
accumulate in MONY America Variable Account A proceeds from various contract
charges applicable to those assets. From time to time, any such additional
assets may be transferred in cash to the Company's General Account.
10
<PAGE> 17
MONY America Variable Account A was authorized by the Board of Directors of
the Company and established under Arizona law on March 27, 1987. MONY America
Variable Account A is registered with the Securities and Exchange Commission
("SEC") under the Investment Company Act of 1940 (the "1940 Act") as a unit
investment trust. A unit investment trust is a type of investment company. This
does not involve any supervision by the SEC or the management or investment
policies or practices of MONY America Variable Account A. For state law
purposes, MONY America Variable Account A is treated as a part or division of
the Company.
MONY America Variable Account A is divided into subdivisions called
subaccounts. Each subaccount invests only in shares of a designated portfolio of
MONY Series Fund, Inc or the Enterprise Accumulation Trust. For example, the
Long Term Bond Subaccount invests solely in shares of the MONY Series Fund, Inc.
Long Term Bond Portfolio. These portfolios serve only as the underlying
investment for variable annuity and variable life insurance contracts issued
through separate accounts of the Company or other life insurance companies. The
portfolios may also be available to certain pension accounts. The portfolios are
not available directly to individual investors. In the future, the Company may
establish additional subaccounts of MONY America Variable Account A. Future
subaccounts may invest in other portfolios of the Funds or in other securities.
MONY Series Fund, Inc. has a total of seven portfolios. Only four of the seven
portfolios are available to you.
The following table lists the subaccounts of MONY America Variable Account
A that are available to you, their respective investment objectives, and which
Fund portfolio shares are purchased:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
THE MONEY MARKET SUBACCOUNT Seeks to maximize current income
consistent with preservation of capital
This subaccount purchases shares of the and maintenance of liquidity by investing
MONY Series Fund, Inc. Money Market primarily in high quality, short-term
Portfolio. money market instruments.
--------------------------------------------------------------------------------------------
THE GOVERNMENT SECURITIES SUBACCOUNT Seeks to maximize income and capital
appreciation by investing in bonds, notes
This subaccount purchases shares of the and other obligations either issued or
MONY Series Fund, Inc. Government guaranteed by the U.S. Government, its
Securities Portfolio. agencies or instrumentalities, together
having a dollar-weighted average maturity
between 4 to 8 years.
--------------------------------------------------------------------------------------------
THE INTERMEDIATE TERM BOND SUBACCOUNT Seeks to maximize income and capital
appreciation over the intermediate term by
This subaccount purchases shares of the investing in highly rated fixed income
MONY Series Fund, Inc. Intermediate Term securities issued by a diverse mix of
Bond Portfolio. corporations, the U.S. Government and its
agencies or instrumentalities, as well as
mortgage-backed and asset backed
securities, together having a
dollar-weighted average life of between 4
and 8 years.
--------------------------------------------------------------------------------------------
THE LONG TERM BOND SUBACCOUNT Seeks to maximize income and capital
appreciation over the longer term by
This subaccount purchases shares of the investing in highly-rated fixed income
MONY Series Fund, Inc. Long Term Bond securities issued by a diverse mix of
Portfolio. corporations, the U.S. Government and its
agencies or instrumentalities, as well as
mortgage-backed and asset backed
securities, together having a
dollar-weighted average life of more than
8 years.
--------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 18
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
THE EQUITY SUBACCOUNT Seeks long-term capital appreciation by
investing primarily in U.S. common stock
This subaccount purchases shares of the of companies that meet the portfolio
Enterprise Accumulation Trust Equity manager's criteria of high return on
Portfolio. investment capital, strong positions
within their industries, sound financial
fundamentals and management committed to
shareholder interests.
--------------------------------------------------------------------------------------------
THE MANAGED SUBACCOUNT Seeks growth of capital over time by
investing in a portfolio consisting of
This subaccount purchases shares of the common stocks, bonds and cash equivalents,
Enterprise Accumulation Trust Managed the percentage of which vary over time
Portfolio. based on the investment manager assessment
of economic and market trends and its
perception of the relative investment
values available from such types of
securities at any given time.
--------------------------------------------------------------------------------------------
THE SMALL COMPANY VALUE SUBACCOUNT Seeks maximum capital appreciation by
investing primarily in common stocks of
This subaccount purchases shares of the small capitalization companies that the
Enterprise Accumulation Trust Small portfolio manager believes are
Company Value Portfolio. undervalued -- that is the stock's market
price does not fully reflect the company's
value.
--------------------------------------------------------------------------------------------
THE INTERNATIONAL GROWTH SUBACCOUNT Seeks capital appreciation by investing
primarily in a diversified portfolio of
This subaccount purchases shares of the non-United States equity securities that
Enterprise Accumulation Trust the portfolio manager believes are
International Growth Portfolio. undervalued.
--------------------------------------------------------------------------------------------
THE HIGH YIELD BOND SUBACCOUNT Seeks maximum current income by primarily
investing in high yield, income-producing
This subaccount purchases shares of the U.S. corporate bonds rated B3 or better by
Enterprise Accumulation Trust High Yield Moody's Investor Service, Inc. or B- or
Bond Portfolio. better by Standard & Poor's Corporation.
These lower rated bonds are commonly
referred to as "Junk Bonds." Bonds of this
type are considered to be speculative with
regard to the payment of interest and
return of principal. Investment in these
types of securities has special risks and
therefore, may not be suitable for all
investors. Investors should carefully
assess the risks associated with
allocating payments to this subaccount.
--------------------------------------------------------------------------------------------
</TABLE>
THE FUNDS
Each available subaccount of MONY America Variable Account A will invest
only in the shares of the designated portfolio of MONY Series Fund, Inc. or The
Enterprise Accumulation Trust (collectively called the "Funds"). The Funds are
registered with the SEC under the 1940 Act as open-end diversified management
investment companies. These registrations do not involve supervision by the SEC
of the management or investment practices or policies of the Funds. The Funds,
or either of them, may withdraw from sale any or all the respective portfolios
as allowed by applicable law.
12
<PAGE> 19
MONY SERIES FUND, INC.
Only shares of four of the seven portfolios of MONY Series Fund, Inc. can
be purchased by a subaccount available to you. Each of the portfolios has
different investment objectives and policies. The Company is a registered
investment adviser under the Investment Advisers Act of 1940. The Company serves
as investment adviser to MONY Series Fund, Inc. It paid all expenses associated
with organizing MONY Series Fund, Inc. when the Fund was organized in 1985.
Those expenses included the costs of the initial registration of its securities.
The Company, as investment adviser, currently pays the compensation of the
Fund's directors, officers, and employees who are affiliated in some way with
the Company. MONY Series Fund, Inc. pays for all other expenses including, for
example, the calculation of the net asset value of the portfolios. To carry out
its duties as an investment adviser, the Company has entered into a Services
Agreement with MONY to provide personnel, equipment, facilities and other
services. As the investment adviser to MONY Series Fund, Inc., the Company
receives a daily investment advisory fee for each portfolio (see chart below).
Fees are deducted daily and paid to the Company monthly.
The following table describes the portfolios available and their respective
investment advisers and the investment advisory fees:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISORY FEE
- --------------------------------------------------------------------------------------------
<S> <C>
GOVERNMENT SECURITIES PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets.
- --------------------------------------------------------------------------------------------
LONG TERM BOND PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets.
- --------------------------------------------------------------------------------------------
INTERMEDIATE TERM BOND PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets.
- --------------------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO Annual rate of 0.40% of the first $400
million, 0.35% of the next $400 million, and
0.30% of assets in excess of $800 million of
the portfolio's aggregate average daily net
assets.
- --------------------------------------------------------------------------------------------
</TABLE>
ENTERPRISE ACCUMULATION TRUST
Enterprise Accumulation Trust has a number of portfolios, the shares of
some of which can be purchased by the subaccounts available to you. Enterprise
Capital Management, Inc. ("Enterprise Capital"), a wholly owned subsidiary of
MONY Life Insurance Company, is the investment adviser of Enterprise
Accumulation Trust. Enterprise Capital is responsible for the overall management
of the portfolios, including meeting the investment objectives and policies of
the portfolios. Enterprise Capital contracts with sub-investment advisers to
assist in managing the portfolios. For information about the sub-advisers for
each portfolio, see page 19 of the Enterprise Accumulation Trust prospectus
which accompanies this prospectus. Enterprise Accumulation Trust pays an
investment advisory fee to Enterprise Capital which in turn pays the
sub-investment advisers. Fees are deducted daily and paid to Enterprise Capital
on a monthly basis. The sub-investment adviser and
13
<PAGE> 20
daily investment advisory fees and sub-investment advisory fees for each
portfolio are shown in the table below:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EQUITY PORTFOLIO Annual rate of 0.80% of the Annual rate of 0.40% up to
first $400 million, 0.75% of $1 billion, and 0.30% in
TCW Investment Management Company the next $400 million and excess of $1 billion of the
is the sub-investment adviser. 0.70% in excess of $800 portfolio's average daily
million of the portfolio's net assets.
average daily net assets.
- ------------------------------------------------------------------------------------------------------
MANAGED PORTFOLIO Annual rate of 0.80% of the OpCap Advisors' fee for the
first $400 million, 0.75% of assets of the portfolio it
OpCap Advisors and Sanford C. the next $400 million and manages is an annual rate of
Bernstein & Co., Inc. are the 0.70% in excess of $800 0.40% up to $1 billion,
co-sub-investment advisers. million of the portfolio's 0.30% from $1 billion to $2
average daily net assets. billion, and 0.25% in excess
of $2 billion of the
portfolio's average daily
net assets. Sanford C.
Bernstein & Co., Inc.'s fee
for the assets of the
portfolio it manages is an
annual rate of 0.40% up to
$10 million, 0.30% from $10
million to $50 million,
0.20% from $50 million to
$100 million, and 0.10% in
excess of $100 million of
the portfolio's average
daily net assets.
- ------------------------------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO Annual rate of 0.80% of the Annual rate of 0.40% of the
first $400 million, 0.75% of first $1 billion and 0.30%
Gabelli Asset Management, Inc. is the next $400 million and in excess of $1 billion of
the sub-investment adviser. 0.70% in excess of $800 the portfolio's average
million of the portfolio's daily net assets.
average daily net assets.
- ------------------------------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO Annual rate of 0.60% of the Annual rate of 0.30% of the
portfolio's average daily first $100 million and 0.25%
Caywood Scholl Capital Corporation net assets. in excess of $100 million of
is the sub-investment adviser. the portfolio's average
daily net assets.
- ------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 21
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INTERNATIONAL GROWTH PORTFOLIO Annual rate of 0.85% of the Annual rate of 0.40% of the
portfolio's average daily first $100 million, 0.35% of
Vontobel USA Inc. is the net assets. $100 million to $200
sub-investment adviser. million, 0.30% of $200
million to $500 million and
0.25% in excess of $500
million of the portfolio's
average daily net assets.
- ------------------------------------------------------------------------------------------------------
</TABLE>
The investment objectives of each portfolio are fundamental and may not be
changed without the approval of the holders of a majority of the outstanding
shares of the portfolio affected. For each of the Funds a majority means the
lesser of:
(1) 67% of the portfolio shares represented at a meeting at which more
than 50% of the outstanding portfolio shares are represented, or
(2) More than 50% of the outstanding portfolio shares.
Each Contractholder should periodically review their allocation of purchase
payments and Surrender Values among the subaccounts and the guaranteed interest
account in light of their current objectives, the current market conditions, and
the risks of investing in each of the Funds' various portfolios. A full
description of the objectives, policies, restrictions, risks and expenses for
each of the Funds' portfolios can be found in the accompanying prospectus for
each of the Funds. The prospectus for each of the Funds should be read together
with this prospectus.
PURCHASE OF PORTFOLIO SHARES BY MONY AMERICA VARIABLE ACCOUNT A
MONY America Variable Account A will buy and redeem shares from the Funds
at net asset value. Shares will be redeemed when needed for the Company to:
- Collect charges under the Contracts.
- Pay Surrender Value on full surrenders of the Contracts.
- Fund partial surrenders.
- Provide benefits under the Contracts.
- Transfer assets from one subaccount to another or between one or more
subaccounts of MONY America Variable Account A and the Guaranteed
Interest Account as requested by Contractholders.
Any dividend or capital gain distribution received from a portfolio of a
Fund will be:
- Reinvested immediately at net asset value in shares of that portfolio.
- Kept as assets of the corresponding subaccount.
SURRENDER VALUE -- The Contract's Cash Value, less (1) any applicable Surrender
Charge, (2) and any applicable Annual Contract Charge.
The Board of Directors of MONY Series Fund, Inc. and the Board of Trustees
of The Enterprise Accumulation Trust monitor the respective Fund for the
existence of material irreconcilable conflict between the interests of variable
annuity Contractholders and variable life insurance Contractholders. The Boards
shall report any such conflict to the boards of the Company and its affiliates.
The Boards of Directors of the Company and its affiliates have agreed to be
responsible for reporting any potential or existing conflicts to the
15
<PAGE> 22
Directors and Trustees of each of the Funds. The Boards of Directors of the
Company and its affiliates will remedy any conflict at their own cost. The
remedy may include establishing a new registered management investment company
and segregating the assets underlying the variable annuity contracts and the
variable life insurance contracts.
GUARANTEED INTEREST ACCOUNT
The Guaranteed Interest Account is a part of the Company's General Account
and consists of all the Company's assets other than assets allocated to
segregated investment accounts of the Company, including MONY America Variable
Account A.
Crediting of Interest. Net purchase payments allocated by a Contractholder
to the Guaranteed Interest Account will be credited with interest at a rate
declared by us. We guarantee that the rate will not be less than 4% (0.010746%
compounded daily). For Contracts issued on and after May 1, 1994 (or on or after
such later date as approval required in certain states is obtained), the rate
declared by us is guaranteed not to be less than 3.5% (0.009426%, compounded
daily). Each interest rate we declare will apply to all net purchase payments
received or transfers from MONY America Variable Account A completed within the
period during which it is effective. Initial net purchase payments allocated to
the Guaranteed Interest Account will be credited with interest at the rate in
effect for the date on which, (1) the Contract is issued (and the funds
transferred into the Money Market Subaccount) and (2) from and after the date on
which the Free Look Privilege expires on all funds transferred from the Money
Market Subaccount to the Guaranteed Interest Account. Amounts may be withdrawn
from the Guaranteed Interest Account as a result of:
- Transfer
- Partial surrender
- Any charge imposed in accordance with the Contract
Such withdrawals will be considered to be withdrawals of amounts (and any
interest credited thereon) most recently credited to the Guaranteed Interest
Account.
Prior to the expiration of the period for which a particular interest rate
was guaranteed, we will declare a renewal interest rate. The renewal interest
rate will be effective for the succeeding period we determine.
The Guaranteed Interest Account is described in greater detail in a
separate prospectus attached to this prospectus for your convenience.
DETAILED INFORMATION ABOUT THE POLICY
The Cash Value in MONY America Variable Account A and in the Guaranteed
Interest Account provide many of the benefits of your Contract. The information
in this section describes the benefits, features, charges and major provisions
of the Contract and the extent to which those depend upon the Cash Value,
particularly the Cash Value in MONY America Variable Account A. Attached to this
prospectus is a prospectus describing the Guaranteed Interest Account and its
various features, charges and major provisions.
"An endorsement is available on or after June 1, 2000 for all contracts
issued in the State of Florida which will amend this Contract to provide
benefits, features, charges and major provisions as described in the current
MONY Custom Master prospectus and any amendments to it."
PAYMENT AND ALLOCATION OF PURCHASE PAYMENTS
Issuance of the Contract
Individuals who want to buy a Contract must:
(1) Complete an application.
(2) Personally deliver the application to:
(a) A licensed agent of the Company who is also a registered
representative of the principal underwriter for the Contracts, MONY
Securities Corporation ("MSC"), or
16
<PAGE> 23
(b) A registered representative of a broker dealer which had been
authorized by MSC to sell the Contract.
(3) Pay the minimum initial purchase payment.
The minimum purchase payment for individuals varies depending upon the use
of the Contract and the method of purchase. The chart below shows the minimum
purchase payment for each situation.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
USE OF CONTRACT OR
METHOD OF MAKING PURCHASE PAYMENT MINIMUM PURCHASE PAYMENT
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
Individual retirement accounts and annuities under $2,000
Section 408 of the Code (other than Simplified
Employee Pensions)
- -------------------------------------------------------------------------------------------------------
Non-Qualified Plans $2,000
- -------------------------------------------------------------------------------------------------------
H.R. 10 plans (self-employed individuals' retirement $600
plans under 401 or 403 (c) of the Code), certain
corporate or association retirement plans,
Simplified Employee Pensions under Section 408 of
the Code
- -------------------------------------------------------------------------------------------------------
Annuity purchase plans sponsored by certain $600
tax-exempt organizations, governmental entities, or
public school systems under Section 403(b) of the
Code, and deferred compensation plans under Section
457 of the Code
- -------------------------------------------------------------------------------------------------------
Payroll deduction and automatic checking account Annualized rate of $600 (i.e., $600 per year,
withdrawal plans $300 semiannually, $150 quarterly or $50 per
month)
- -------------------------------------------------------------------------------------------------------
Government Allotment Plans $50 per month
- -------------------------------------------------------------------------------------------------------
</TABLE>
Effective January 1, 1989, the Contracts offered by this Prospectus have
been withdrawn from sale in connections with Qualified Plans which intend to
qualify for federal income tax advantages available under Section 403(b) of the
Code.
GOVERNMENT ALLOTMENT PLANS -- Payroll deduction plans used for financial
products by government employees.
Additional purchase payments of at least $100 may be made at any time. However,
for certain automatic payment plans, the smallest additional payment is $50.
The Company reserves the right to revise its rules from time to time to
specify different minimum Purchase Payments. In addition, the prior approval of
the Company is needed before it will accept a Purchase Payment if, with that
Payment:
(1) Cumulative Purchase Payments made under any one or more Contracts
held by the Contract Contractholder, less
(2) The amount of any prior partial surrenders and their Surrender
Charges, exceed
(3) $1,500,000.
The Company reserves the right to reject an application for any reason
permitted by law.
CONTRACT DATE -- The date the contract begins as shown in the Contract.
Net Purchase Payments received before the Contract Date will be held in the
Company's General Account and will be credited with interest at not less than
3.5% per year if:
(1) The Contract is issued by the Company, and
17
<PAGE> 24
(2) The Contract is accepted by the Contractholder.
No interest will be paid if the Contract is not issued or if it is declined by
the Contractholder. Net Purchase Payments will be held in the Money Market
Subaccount of MONY America Variable Account A if:
(1) The application is approved,
(2) The Contract is issued, and
(3) The Contractholder accepts the Contract.
These amounts will be held in that Account pending end of the Free Look Period.
(See "Free Look Privilege" on page .) Interest will be credited on amounts
held in the General Account beginning on the date the amounts are received.
Amounts are received on the day of actual receipt at the Company's Operation
Center. The prospective buyer will be told the reasons for the delay, the
initial Purchase Payment will be returned in full and the application declined
if:
(1) The application is not complete when received, and
(2) The application is not completed within 5 days.
The application will not be declined if the prospective buyer consents to the
Company's keeping the Purchase Payment until the application is completed.
Free Look Privilege
The Contractholder may return the Contract within 10 days of the delivery
date. The Contract must be returned to the Company or any agent of the Company.
When the Company receives the Contract, it will be voided as if it were never in
effect. The amount to be refunded (except for contracts entered into in the
Commonwealth of Pennsylvania) is equal to the greater of:
(1) All purchase payments; and
(2) (a)Cash Value of the contract (as of the date received at the Home
Office or, if returned by mail, after being postmarked, properly addressed
and postage prepaid) plus (b) any deductions from purchase payments (i.e.
taxes for annuity considerations deducted, mortality and expense risk
charges deducted in determining Unit value of MONY America Variable Account
A, and asset charges deducted in determining the share value of the Funds).
The amount to be refunded for contracts entered into in the Commonwealth of
Pennsylvania is described in (2) above.
Allocation of Payments and Cash Value
Allocation of Payments. On the application, the Contractholder may
allocate Net Purchase Payments to the subaccount(s) of MONY America Variable
Account A or to the Guaranteed Interest Account. Net Purchase Payments (and any
interest thereon) are held in the Money Market Subaccount of MONY America
Variable Account A if they are received before the end of the Free Look Period.
The Net Purchase Payments will initially be allocated to the Money Market
Subaccount beginning on the later of:
(1) The Contract Date of the Contract, and
(2) The date the Payment is received at the Company's Operations
Center.
Net Purchase Payments will continue to be allocated to that subaccount
until the Free Look Period expires (See "Free Look Privilege" above.) After the
Free Look Period has expired and the correct and complete allocation
notification has been received, the Contract's Cash Value will automatically be
transferred to MONY America Variable Account A subaccount(s) or to the
Guaranteed Interest Account according to the Contractholder's percentage
allocation.
After the Free Look Period, under a non-automatic payment plan, if the
Contractholder does not:
18
<PAGE> 25
(1) Specify the amount to be allocated among subaccounts, or
(2) Specify the percentage to be allocated among subaccounts, or
(3) The amount or percentage specified is incorrect or incomplete,
the Net Purchase Payments will be allocated under the Contractholder's most
recent instructions on record with the Company. The amount specified must not be
less than $10.00 and the percentage specified must not be less than 10% of the
Payment. For automatic payment plans, Net Purchase Payments will be allocated
according to the Contractholder's most recent instructions on record.
The Contractholder may change the specified allocation formula for future
Net Purchase Payments at any time without charge by sending written notification
to the Company at the Operations Center. Prior allocation instructions may also
be changed by telephone subject to the rules of the Company and its right to
terminate telephone allocation. The Company reserves the right to deny any
telephone allocation request. If all telephone lines are busy (for example,
during periods of substantial market fluctuations), Contractholders may be
unable to request telephone allocation changes by telephone. In such cases, a
Contractholder would submit a written request. Any such change, whether made in
writing or by telephone, will be effective when recorded on the records of the
Company, in accordance with the requirements of state insurance departments and
the Investment Company Act of 1940. The Company has adopted rules relating to
changes of allocations by telephone which, among other things, outlines
procedures designed, and which the Company believes are reasonable, to prevent
unauthorized instructions. If these procedures are followed:
(1) The Company shall not be liable for any loss as a result of
following fraudulent telephone instructions, and
(2) The Contractholder will therefore bear the entire risk of loss due
to fraudulent telephone instructions.
A copy of the rules and the Company's form for electing telephone allocation
privileges is available from licensed agents of the Company who are registered
representatives of MSC or by calling 1-800-487-6669. The Company's form must be
signed and received at the Company's Operations Center before telephone
allocation instructions will be accepted.
Net Purchase Payments may be allocated in whole percentages to any number
of the available subaccounts and to the Guaranteed Interest Account. Allocations
must be in whole percentages, and no allocation may be for less than 10% of a
Net Purchase Payment. Allocation percentages must total 100%.
When allocated Purchase Payments are received they are credited to
subaccounts of MONY America Variable Account A in the form of Units. The number
of Units is determined by dividing the dollar amount allocated to a particular
subaccount by the unit value for that subaccount for the Valuation Date on which
the Purchase Payment is received.
Calculating Unit Values for Each Subaccount
The unit value of each subaccount on its first Valuation Date was set at
$10.00. The Company computes the unit value of a subaccount on any later
Valuation Date as follows:
(1) Calculate the value of the shares of the portfolio belonging to
the subaccount as of the close of business that Valuation Date. This
calculation is done before giving effect to any policy transactions for
that day, such as purchase payments or surrenders. For this purpose, the
net asset value per share reported to the Company by the managers of the
portfolio is used.
(2) Add the value of any dividends or capital gains distributions
declared and reinvested by the portfolio during the valuation period.
Subtract from this amount a charge for taxes, if any.
(3) Subtract a charge for the mortality and expense risk assumed by
the Company under the policy. If the previous day was not a Valuation Date,
then the charge is adjusted for the additional days between valuations.
19
<PAGE> 26
(4) Divide the resulting amount by the number of units held in the
subaccount on the Valuation Date before the purchase or redemption of any
units on that date.
The unit value of these subaccounts may increase, decrease or remain the
same from Valuation Date to Valuation Date. The Unit value depends on the
investment performance of the portfolio of the Fund in which the subaccount
invests and any expenses and charges deducted from MONY America Variable Account
A. The Contractholder bears the entire investment risk. Contractholders should
periodically review their allocations of payments and values in light of market
conditions and overall financial planning requirements.
Calculation of Guaranteed Interest Account Cash Value
Net Purchase Payments to be allocated to the Guaranteed Interest Account
will be credited to that account on:
(1) The date received at the Operations Center, or
(2) If the day Payments are received is not a Valuation Date, then on
the next Valuation Date.
Interest will be credited daily. That part of a Net Purchase Payments allocated
to the Guaranteed Interest Account that exceeds the $250,000 limit imposed by
the Company will be returned to the Contractholder.
Calculation of Cash Value
The Contract's Cash Value will reflect:
- The investment performance of the selected subaccount(s) of MONY America
Variable Account A.
- Amounts credited (including interest) to the Guaranteed Interest Account.
- Any Net Purchase Payments.
- Any Partial Surrenders.
- All Contract charges (including surrender charges) imposed.
There is no guaranteed minimum Cash Value, except to the extent Net Purchase
Payments have been allocated to the Guaranteed Interest Account. Because a
Contract's Cash Value at any future date will be dependent on a number of
variables, it cannot be predetermined.
The Cash Value will be computed first on the Contract Date and thereafter
on each Valuation Date. On the Contract Date, the Contract's Cash Value will be
the Net Purchase Payments received plus any interest credited on those Payments
during the period when Net Purchase Payments are held in the General Account.
(See "Issuance of the Contract" at page 17.)
After allocation of the amounts in the General Account to MONY America
Variable Account A or the Guaranteed Interest Account, on each Valuation Date,
the Contract's Cash Value will be computed as follows:
(1) Determine the aggregate of the Cash Values attributable to the
Contract in each of the subaccounts on the Valuation Date. This is done by
multiplying the subaccount's Unit value on that date by the number of
subaccount Units allocated to the Contract;
(2) Add any amount credited to the Guaranteed Interest Account. This
amount is the aggregate of all Net Purchase payments and:
- The addition of any interest credited.
- Addition or subtraction of any amounts transferred.
- Subtraction of any partial surrenders.
- Subtraction of any Contract charges, deductions.
20
<PAGE> 27
(3) Add any Net Purchase Payment received on that Valuation Date;
(4) Subtract any partial surrender amount and its Surrender Charge
made on that Valuation Date;
(5) Subtract any Annual Contract Charge deductible on that Valuation
Date.
In computing the Contract's Cash Value, the number of subaccount Units
allocated to the Contracts is determined after any transfers among subaccounts
or between one or more of the subaccounts and the Guaranteed Interest Account.
Any transfer charges are also deducted. However, the computation of the
Contract's Cash Value is done before any other Contract transactions on the
Valuation Date, such as:
- Receipt of Net Purchase Payments.
- Partial Surrenders.
If a transaction would ordinarily require that the Contract's Cash Value be
computed for a day that is not a Valuation Date, the next following Valuation
Date will be used.
Transfers. You may transfer the value of the Contract among the
subaccounts after the Free Look Period has expired by sending a proper written
request to the Company's Operations Center. Transfers may be made by telephone
if you have proper authorization. The same rules apply as those for allocation
of payments by telephone. We will effectuate transfers at Unit values, and
determine all Unit values in connection with such transfers:
- At the close of the day that the transfer request is received at the
Operations Center, or
- If the date of receipt of the transfer request is not a Valuation Date,
on the next Valuation Date.
Different provisions apply to transfers involving the Guaranteed Interest
Account. (See "Payment and Allocation of Purchase Payments -- Transfers
Involving the Guaranteed Interest Account" at page 22.) There is no minimum
amount that need be transferred. Currently, there are no limitations on the
number of transfers between subaccounts.
A transfer charge is not currently imposed on transfers. (See "Charges
Against Cash Value -- Transfer Charge" at page 27.) However, the Company
reserves the right to impose a charge for transfer in excess of four which will
not exceed $25 per transfer. If imposed the charge will be deducted from the
first subaccount(s) or the Guaranteed Interest Account from which the amounts
are transferred. This charge is in addition to the amount transferred. If there
is insufficient Cash Value in a subaccount or in the Guaranteed Interest Account
to provide for its proportionate share of the charge, then the entire charge
will be allocated in the same manner as the Annual Contract Charge. (See
"Charges Against Cash Value -- Annual Contract Charge" at page 26.) All
transfers in a single request are treated as one transfer transaction. A
transfer resulting from the first reallocation of Cash Value at the end of the
Free Look Period will not be subject to a transfer charge nor will it be counted
against the 4 transfers allowed in each Contract year without charge. Under
present law, transfers are not taxable transactions.
CONTRACT YEAR -- Any period of twelve (12) months commencing with the Contract
Date and each Contract Anniversary thereafter.
Transfers Involving the Guaranteed Interest Account. Transfers to or from
the Guaranteed Interest Account are subject to the following limitations.
- Prior approval of the Company if part of the transfer will cause amounts
credited to the Guaranteed Interest Account to exceed $250,000.
- The portion in excess of the $250,000 limitation will be allocated
back to the subaccounts designated in that transfer as the
subaccounts from which amounts were to be transferred. The
allocation back will be in the proportion that the amount requested
to be transferred from each subaccount bears to the total amount
transferred.
21
<PAGE> 28
- Transfers from the Guaranteed Interest Account to one or more subaccounts
may be made once during each Contract Year, and the amount which may be
transferred if limited to the greater of:
- 25% of the amounts credited to the Guaranteed Interest Account on
the date the transfer would take effect or
- $5,000.
- Transfers from the Guaranteed Interest Account to one or more subaccounts
will be effective only on an anniversary of the Contract Date or on a
Valuation Date not more than 30 days thereafter.
- Requests received not more than 10 days before the anniversary of the
Contract Date will be executed on the Valuation Date which coincides with
or next follows the date the request is received.
- Requests more than 10 days before or 30 days after the anniversary of the
Contract Date will be returned to the Contractholder.
TERMINATION OF THE CONTRACT
The Contract will remain in effect until the earlier of:
(1) The date the Contract is surrendered in full,
(2) The date annuity payments start,
(3) The Contract Anniversary on which, after deduction for any Annual
Contract Charge then due, no Cash Value remains in the Contract, and
(4) The date the Death Benefit is payable under the Contract.
CONTRACT ANNIVERSARY -- An anniversary of the Contract Date of the Contract.
CONTRACT DATE -- The date shown as the Contract Date of the Contract.
SURRENDERS
The Contractholder may elect to make a surrender of all or part of the
Contract's value provided it is:
- On or before the annuity payments start, and
- During the lifetime of the Annuitant.
Any such election shall specify the amount of the surrender. The surrender will
be effective on the date a proper written request is received by the Company at
its Operation Center.
The amount of the surrender may be equal to the Contract's Surrender Value,
which is its Cash Value less
(1) any applicable Surrender Charge, and
(2) (for a full surrender) any Annual Contract Charge.
The Surrender may also be for a lesser amount (a "partial surrender") of at
least $100. Requested partial surrenders that would leave a Cash Value of less
than $1,000 are treated and processed as a full surrender. In such case, the
entire Surrender Value will be paid to the Contractholder. For a partial
surrender, any Surrender Charge will be in addition to the amount requested by
the Contractholder.
A surrender will result in the cancellation of Units and the withdrawal of
amounts credited to the Guaranteed Interest Account in accordance with the
directions of the Contractholder. The aggregate value of the surrender will be
equal to the dollar amount of the surrender plus, if applicable, the Annual
Contract Charge and any Surrender Charge. For a partial surrender, the Company
will cancel Units of the particular subaccounts and withdraw amounts from the
Guaranteed Interest Account accumulation period under the
22
<PAGE> 29
allocation specified by the Contractholder. The Unit value will be calculated as
of the Valuation Date the surrender request is received. Allocations may be by
either amount or percentage. Allocations by percentage must be in whole
percentages (totaling 100%). At least 10% of the partial surrender must be
allocated to any subaccount designated by the Contractholder. Allocations by
amount require that at least $25 be allocated against the Guaranteed Interest
Account or any subaccount. The request will not be accepted if:
- There is insufficient Cash Value in the Guaranteed Interest Account or a
subaccount to provide for the requested allocation against it, or
- The Guaranteed Interest Account limitation is exceeded, or
- The request is incorrect.
If an allocation is not requested, then the entire amount of the partial
surrender will be allocated against the Guaranteed Interest Account and each
subaccount in the same proportion that the Contract's Cash Value held in said
accounts bears to the Contract's Cash Value.
Any surrender charge will be allocated against the Guaranteed Interest
Account and each subaccount in the same proportion that each allocation bears to
the total amount of the partial surrender. If (1) an allocation of the partial
surrender is not made, or (2) there is insufficient cash value in any of the
Contractholder's accounts to provide for any accounts proportionate share of the
Surrender Charge, then the entire amount will be allocated against each account
in the same proportion that the Cash Value in each account bears to the
Contract's Cash Value.
Any cash surrender amount will be paid in accordance with the requirements
of state insurance departments and the Investment Company Act of 1940. However,
the Company may be permitted to postpone such payment under the 1940 Act.
Postponement is currently permissible only for any period during which
(1) the New York Stock Exchange is closed other than customary weekend
and holiday closings, or
(2) trading on the New York Stock Exchange is restricted as determined
by the Securities and Exchange Commission, or
(3) an emergency exists as a result of which disposal of securities
held by the Fund is not reasonable practicable or it is not reasonably
practicable to determine the value of the net assets of the Fund, or
(4) for such other periods as the Securities and Exchange Commission
may by order permit for the protection of Contractholders.
Any cash surrender involving payment from amounts credited to the Guaranteed
Interest Account may be postponed, at the option of the Company, for up to 6
months from the date the request for a surrender or proof of death is received
by the Company. The Contractholder may elect to have the amount of a surrender
settled under one of the Settlement Options of the Contract. (See "Annuity
Provisions" at page 29.)
Contracts offered by this prospectus may be issued in connection with
retirement plans meeting the requirements of certain sections of the Internal
Revenue Code. Contractholders should refer to the terms of their particular
retirement plan for any limitations or restrictions on cash surrenders.
The tax results of a cash surrender should be carefully considered. (See
"Federal Tax Status" at page 37.)
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<PAGE> 30
DEATH BENEFIT
DEATH BENEFIT PROVIDED BY THE CONTRACT
The Company will pay a Death Benefit to the Beneficiary if:
- The Annuitant dies; and
- The death occurs before the annuity payments start.
The amount of the Death Benefit will be the greater of
(1) The Cash Value on the date of the Annuitant's death;
(2) The Purchase Payments paid, less any partial surrenders and their
Surrender Charges.
If the death of the Annuitant occurs on or after the annuity payments start, no
Death Benefit will be payable except as may be provided under the Settlement
Option elected.
ELECTION AND CONTRACT DATE OF ELECTION
The Contractholder may elect to have the Death Benefit of the Contract
applied under one or more Settlement Options to effect an annuity for the
Beneficiary as payee after the death of the Annuitant. The election must take
place:
- During the lifetime of the Annuitant, and
- Before the annuity payments start.
If no election of a Settlement Option for the Death Benefit is in effect on the
date when proceeds become payable, the Beneficiary may elect
(1) to receive the Death Benefit in the form of a cash payment; or
(2) to have the Death Benefit applied under one of the Settlement
Options.
(See "Settlement Options" at page 30.) If an election by the payee is not
received by the Company within 30 days following the date proceeds become
payable, the payee will be considered to have elected a cash payment. Either
election described above may be made by filing a written election with the
Company in such form as it may require. Any proper election of a method of
settlement of the Death Benefit by the Contractholder will become effective on
the date it is signed. However, any election will be subject to any payment made
or action taken by the Company before receipt of the notice at the Company's
Operation Center.
Settlement option availability may be restricted by the terms of any
applicable retirement plan and any applicable legislation for any limitations or
restrictions on the election of a method of settlement and payment of the Death
Benefit.
PAYMENT OF DEATH BENEFIT
If the Death Benefit is to be paid in cash to the Beneficiary, payment will
be made within seven (7) days of the date
- the election becomes effective, or
- the election is considered to become effective, and
- due proof of death is received.
The Company may be permitted to postpone such payment under the 1940 Act. If the
death benefit is to be paid in one sum to the Successor Beneficiary, or to the
estate of the deceased Annuitant, payment will be made within seven (7) days of
the date due proof of the death of the Annuitant and the Beneficiary is received
by the Company. Interest at a rate determined by us will be paid on any Death
Benefit paid in one sum, from
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<PAGE> 31
the date of the Annuitant's (or Contingent Annuitant's, if applicable) death to
the date of payment. The interest rate will not be less than 2 3/4% annually.
CHARGES AND DEDUCTIONS
The following table summarizes the charges and deductions under the
Contract:
- --------------------------------------------------------------------------------
DEDUCTIONS FROM PURCHASE PAYMENTS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Tax Charge State and local -- 0%-3.5% -- Company
currently assumes responsibility; current
charge to Contractholder 0%.
Federal -- Currently 0% (Company reserves
the right to charge in the future.)
</TABLE>
- --------------------------------------------------------------------------------
DAILY DEDUCTION FROM VARIABLE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Mortality & Expense Risk Charge Current daily rate -- 0.003425%
Annual Rate deducted daily from net assets Current Annual rate -- 1.25%
</TABLE>
- --------------------------------------------------------------------------------
DEDUCTIONS FROM CASH VALUE
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Annual Contract Charge Non-Qualified Contracts -- $30 (subject to
Current charges listed may be increased to increase up to $50)
as much as $50 ($30 in certain states) on IRA and SEP-IRA -- $30 (subject to increase
30 days written notice. up to $50)
Qualified Contracts -- $15 (subject to
increase up to $50)
Transaction and Other Charges $0
Transfer Charge (Company reserves the right to charge up to
$25)
Surrender Charge See below for grading schedule. See page
Grades from 7% to 0% of Cash Value "Charges and Deductions -- Charges Against
surrendered based on a schedule. Cash Value" for details of how it is
computed.
</TABLE>
- --------------------------------------------------------------------------------
The following provides additional details of the charges and deductions
under the Contract.
DEDUCTIONS FROM PURCHASE PAYMENTS
Deductions may be made from purchase payments for premium or similar taxes
prior to allocation of any net purchase payment among the subaccounts.
Currently, the Company makes no deduction, but may do so with respect to future
payments. The amount of the deduction will vary from locality to locality.
Deductions will generally range from 0% to 3.5% of purchase payments. Residents
of the Commonwealth of Pennsylvania should be aware that a tax on purchase
payments has been adopted. However, we are currently assuming responsibility for
payment of this tax. If the Company is going to make deductions for such tax
from future purchase payments, it will give notice to each affected
Contractholder.
CHARGES AGAINST CASH VALUE
Daily Deduction from MONY America Variable Account A
Mortality and Expense Risk Charge
The Company assumes mortality and expense risks. A charge for assuming such
risks is deducted daily from the net assets of MONY America Variable Account A.
This daily charge from MONY America Variable Account A is deducted at a current
daily rate of 0.003425 percent (equivalent to an annual rate of 1.25%) from the
value of the net assets of MONY America Variable Account A. Of the 1.25% charge,
.80% is for assuming mortality risks, and .45% is for assuming expense risks.
The charge is deducted from MONY America Variable Account A, and therefore the
subaccounts, on each Valuation Date. These charges will not be deducted from the
Guaranteed Interest Account. Where the previous day (or days) was not a
Valuation
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<PAGE> 32
Date, the deduction on the Valuation Date will be 0.003425% multiplied by the
number of days since the last Valuation Date.
The Company believes that this level of charge is within the range of
industry practice for comparable individual flexible payment variable annuity
contracts.
The mortality risk assumed by the Company is that Annuitants may live for a
longer time than projected. If that occurs, an aggregate amount of annuity
benefits greater than that projected will be payable. In making this projection,
the Company has used the mortality rates from the 1983 Table "a" (discrete
functions without projections for future mortality), with 3 1/2% interest. The
expense risk assumed is that expenses incurred in issuing and administering the
Contracts will exceed the administrative charges provided in the Contracts.
The Company does not expect to make a profit from the mortality and expense
risk charge. However, if the amount of the charge exceeds the amount needed, the
excess will be kept by the Company in its general account. If the amount of the
charge is inadequate, the Company will pay the difference out of its general
account.
Deductions from Surrender Value
Annual Contract Charge
The Company has primary responsibility for the administration of the
Contract and MONY America Variable Account A. An annual Contract charge helps to
reimburse the Company for administrative expenses related to the maintenance of
the Contract. Ordinary administrative expenses expected to be incurred include
premium collection, recordkeeping, processing death benefit claims and
surrenders, preparing and mailing reports, and overhead costs. In addition, the
Company expects to incur certain additional administrative expenses in
connection with the issuance of the Contract, including the review of
applications and the establishment of Contract records.
The Company intends to administer the Contract itself through an
arrangement whereby it may buy some administrative services from MONY and such
other sources as may be available.
An annual contract charge will be deducted from the Contract's Cash Value to
help cover administrative expenses. Currently, for Non-Qualified Contracts (and
contracts issued for IRA and SEP-IRA) the amount of the charge is $30. The
charge may be increased to as much as $50. For Qualified Contracts (other than
those issued for IRA and SEP-IRA) currently the amount of the charge is reduced
to $15. This charge may be increased to as much as $50, and will be increased to
$30 in the event the Contract is no longer a Qualified Contract. The
Contractholder will receive a written notice 30 days in advance of any change in
the charge.
The Annual Contract Charge is deducted from the Cash Value on the following
dates:
(1) Each Contract Anniversary before the date annuity payments start.
(2) On the day the annuity payments start.
The amount of the charge will be allocated against the Guaranteed Interest
Account and each subaccount of MONY America Variable Account A in the same
proportion that the Cash Value in those accounts bears to the Cash Value of the
Contract. The Company does not expect to make any profit from the administrative
cost deductions.
Transfer Charge
Contract value may be transferred among the subaccounts or to or from the
Guaranteed Interest Account and one or more of the subaccounts (including
transfers made by telephone, if permitted by the Company). The Company reserves
the right to impose a transfer charge for each transfer in excess of 4
instructed by the Contractholder in a Contract year. The transfer charge
compensates the Company for the costs of effecting the transfer. The transfer
charge will not exceed $25. The Company does not expect to make a profit from
the transfer charge. If imposed, the transfer charge will be deducted from the
Contract's Cash Value held in the subaccount(s) or from the Guaranteed Interest
Account from which the transfer is made. The transfer charge
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<PAGE> 33
will be allocated against these accounts in the same proportion as the amounts
transferred. If there is insufficient value in an account to provide for its
proportionate share of the charge, then the entire charge will be allocated in
the same manner as the Annual Contract Charge.
Surrender Charge
A contingent deferred sales charge (called a "Surrender Charge") will be
imposed when a full or partial surrender is requested or at the start of annuity
benefits if it is during the first eight years of the contract.
The Surrender Charge will never exceed 7% of total purchase payments. The
Surrender Charge is intended to reimburse the Company for expenses incurred in
distributing the Contract. To the extent such charge is insufficient to cover
all distribution costs, the Company will make up the difference. The Company
will use funds from its General Account, which may contain funds deducted from
MONY America Variable Account A to cover mortality and expense risks borne by
the Company. (See "Mortality and Expense Risk Charge" at page 26.)
A Surrender Charge will be computed when a surrender is made and will be
deducted from the Cash Value if:
(1) All or a part of the Contract's Surrender Value (See "Surrenders"
at page 23) is surrendered, or
(2) The Surrender Value is received at maturity when the annuity
payments start.
A Surrender Charge will not be imposed:
(1) Against Cash Value surrendered in a contract year up to an amount
equal to net purchase payments made by the Contractholder prior to
the contract year of the surrender and the preceding 7 contract
years.
(2) To the extent necessary to permit the Contractholder to obtain an
amount equal to the Guaranteed Free Surrender Amount (See
"Guaranteed Free Surrender Amount" at page 29.)
(3) If the Contract is surrendered after the third Contract Year and
the surrender proceeds are paid under either Settlement Option 3
or Settlement Option 3A (See "Settlement Options" at page 30.)
(4) If the surrender is a full surrender and the following conditions
are met:
(a) Annuitant is age 59 1/2 or older on the date of the full
surrender;
(b) the Contract has been in effect for at least 10 contract years;
and
(c) one or more purchase payments were remitted during each of at
least 7 of the 10 contract years immediately preceding the date
of the surrender.
In no event will the aggregate Surrender Charge exceed 7% of the Cash Value. The
amount deducted from the Cash Value to cover the surrender charge is not subject
to the surrender charge.
For a partial surrender, the Surrender Charge will be deducted from any
remaining Contract Value, if sufficient. If the Contract Value is not
sufficient, it will be deducted from the amount surrendered. Any Surrender
Charge will be allocated against the Guaranteed Interest Account and each
subaccount of MONY America Variable Account A in the same proportion that the
amount of the partial surrender allocated against those accounts bears to the
total amount of the partial surrender. If there is insufficient cash value in
the Guaranteed Interest Account or any subaccount to provide for its
proportionate share of the charge, then the entire charge will be allocated
against said accounts in the same proportion that the Cash Value held in said
accounts bears to the Cash Value in the Guaranteed Interest Account and all
subaccounts.
No Surrender Charge will be deducted from Death Benefits (See "Death
Benefit" at page 24.)
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<PAGE> 34
For purposes of determining the Surrender Charge, surrenders will be
attributed to payments on a first-in, first-out basis. Contractholders should
note that this is different from the allocation method that is used for
determining tax obligations. (See "Federal Tax Status" at page 37.)
Amount of Surrender Charge. The amount of the Surrender Charge is
determined as follows:
Step 1. Allocate purchase payments on a first-in, first-out basis to the
amount surrendered. (Any purchase payments previously allocated to calculate a
surrender charge are unavailable for allocation to calculate any future
surrender charges); and
Step 2. Multiply each allocated purchase payment by the appropriate
surrender charge percentage determined on the basis of the table below:
- --------------------------------------------------------------------------------
SURRENDER CHARGE PERCENTAGE TABLE
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
CONTRACT YEAR SURRENDER CHARGE PERCENTAGE
- ----------------------------------------------------------------------------------------------
0 7%
- ----------------------------------------------------------------------------------------------
1 7
- ----------------------------------------------------------------------------------------------
2 6
- ----------------------------------------------------------------------------------------------
3 6
- ----------------------------------------------------------------------------------------------
4 5
- ----------------------------------------------------------------------------------------------
5 4
- ----------------------------------------------------------------------------------------------
6 3
- ----------------------------------------------------------------------------------------------
7 2
- ----------------------------------------------------------------------------------------------
8 (or more) 0
- ----------------------------------------------------------------------------------------------
</TABLE>
Step 3. Add the products of each multiplication in Step 2 above.
Guaranteed Free Surrender Amount. The surrender charge may be reduced by
using the Guaranteed Free Surrender Amount provided for in the Contract. The
surrender charge will not be deducted in the following circumstances:
(1) For Qualified Contracts issued on or after May 1, 1994, (other
than Contracts issued for IRA and SEP-IRA) in certain states which
have granted approval, an amount up to the greater of:
(a) $10,000 (but not more than the Contract's Cash Value), or
(b) 10% of the Contract's Cash Value (at the time the first partial
surrender is request is received)
may be received in each Contract Year without a surrender charge.
(2) For Qualified Contracts issued before May 1, 1994 and for holders
of contracts in states where approval has not been granted, an
amount up to 10% of the Cash Value of the Contract (on the date
the partial surrender is request is received) in each Contract
Year.
(3) For Non-Qualified Contracts (and Contracts issued for IRA and
SEP-IRA) in certain states which have granted approval, an amount
up to 10% of the Cash Value of the Contract may be received in
each Contract Year without a surrender charge.
We reserve the right to limit the number of partial surrenders under the
Guaranteed Free Surrender Amount to 12 during any Contract Year. Since purchase
payments are allocated on a first-in, first-out basis, the free surrender amount
will not reduce surrender charges to the extent that any Cash Value in that
amount is equal
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to purchase payments received 8 or more contract anniversaries ago. For
illustrations of how the Surrender Charge is calculated, see Appendix A
beginning on page A-1 of this prospectus.
Taxes
Currently, no charge will be made against MONY America Variable Account A
for federal income taxes. However, the Company may make such a charge in the
future if income or gains within MONY America Variable Account A will incur any
federal income tax liability. Charges for other taxes, if any, attributable to
MONY America Variable Account A may also be made. (See "Federal Tax Status" at
page 37.)
Investment Advisory Fee
Because MONY America Variable Account A purchases shares of the Funds, the
net assets of MONY America Variable Account A will reflect the investment
advisory fee and other expenses incurred by the Funds. See "Table of Fees"
beginning at page 4 for a table which shows the fees and expenses incurred
during 1999 and "The Funds-MONY Series Fund, Inc." and "The Funds-Enterprise
Accumulation Trust" at page 4 for a table setting forth the investment advisory
fees.
ANNUITY PROVISIONS
ANNUITY PAYMENTS
Annuity payments under a Contract will begin on the date that is selected
by the Contractholder when the Contract is applied for. The date chosen for the
start of annuity payments may be:
(1) No earlier than the Contract Anniversary nearest the Annuitant's
10th birthday, and
(2) No later than the Contract Anniversary nearest the Annuitant's
95th birthday.
The minimum number of years from the Contract Date to the start of annuity
payments is 10. The date when annuity payments start may be:
(1) Advanced to a date that is not earlier than the 10th Contract
Anniversary.
(2) Deferred from time to time by the Contractholder by written notice
to the Company.
The date when annuity payments start will be advanced or deferred if:
(1) Notice of the advance or deferral is received by the Company prior
to the current date for the start of annuity payments.
(2) The new start date for annuity payments is a date which is not
later than the Contract Anniversary after the Annuitant's 95th
birthday.
A particular retirement plan may contain other restrictions.
When annuity payments start, the Contract's Surrender Value, less any state
taxes which may be imposed upon annuitization, will be applied to provide an
annuity or any other option previously chosen by the Contractholder and
permitted by the Company. A supplementary contract will be issued. That contract
will describe the terms of the settlement. No payments may be requested under
the Contract's surrender provisions after annuity payments start. No surrender
will be permitted except as may be available under the Settlement Option
elected.
For Contracts issued in connection with retirement plans, reference should
be made to the terms of the particular retirement plan for any limitations or
restrictions on when annuity payments start.
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ELECTION AND CHANGE OF SETTLEMENT OPTION
During the lifetime of the Annuitant and prior to the start of annuity
payments, the Contractholder may elect:
- One or more of the Settlement Options described below, or
- Another settlement option as may be agreed to by the Company.
The Contractholder may also change any election if written notice of the change
is received by the Company at its Operation Center prior to the start of annuity
payments. If no election is in effect when annuity payments start, Settlement
Option 3, for a Life Annuity with 10 years certain, based on the Annuitant's
life, will be considered to have been elected.
Settlement Options may also be elected by the Contractholder or the
Beneficiary as provided in the Death Benefit and Surrender sections of this
Prospectus. (See "Death Benefit" at page and "Surrenders" at page .)
Where applicable, reference should be made to the terms of a particular
retirement plan and any applicable legislation for any limitations or
restrictions on the options that may be elected.
SETTLEMENT OPTIONS
Proceeds settled under the Settlement Options listed below or otherwise
currently available will not participate in the investment experience of the
Variable Account.
Settlement Option 1 -- Interest Income: Interest on the proceeds at a rate
(not less than 2 3/4 percent per year) set by the Company each year.
Settlement Option 2 -- Income for Specified Period: Fixed monthly payments
for a specified period of time, as elected. The payments may, at the Company's
option, be increased by additional interest each year.
Settlement Option 3 -- Single Life Income: Payments for the life of the
payee and for a period certain. The period certain may be (a) 0 years, 10 years,
or 20 years, or (b) the period required for the total income payments to equal
the proceeds (refund period certain). The amount of the income will be
determined by the Company on the date the proceeds become payable.
Settlement Option 3A -- Joint Life Income: Payments during the joint
lifetime of the payee and one other person, and during the lifetime of the
survivor. The survivor's monthly income may be equal to either (a) the income
payable during the joint lifetime or (b) two-thirds of that income. If a person
for whom this option is chosen dies before the first monthly payment is made,
the survivor will receive proceeds instead under Settlement Option 3, with 10
years certain.
Settlement Option 4 -- Income of Specified Amount: Income, of an amount
chosen, for as long as the proceeds and interest last. The amount chosen to be
received as income in each year may not be less than 10 percent of the proceeds
settled. Interest will be credited annually on the amount remaining unpaid at a
rate determined annually by the Company. This rate will not be less than 2
percent per year.
The Contract contains annuity payment rates for Settlement Options 3 and 3A
described in this Prospectus. The rates show, for each $1,000 applied, the
dollar amount of the monthly fixed annuity payment, when this payment is based
on minimum guaranteed interest as described in the Contract.
The annuity payment rates may vary according to the Settlement Option
elected and the age of the payee. The mortality table used in determining the
annuity payment rates for Options 3 and 3A is the 1983 Table "a" (discrete
functions, without projections for future mortality), with 3 percent interest.
Under Settlement Option 3, if income based on the period certain elected is
the same as the income provided by another available period or periods certain,
the Company will consider the election to have been made of the longest period
certain.
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In Qualified Plans, settlement options available to Contractholders may be
restricted by the terms of the plans.
FREQUENCY OF ANNUITY PAYMENTS
At the time the Settlement Option is chosen, the payee may request that it
be paid:
- Quarterly
- Semiannually
- Annually
If the payee does not request a particular installment payment, the payments
will be made in monthly installments. However, if the net amount available to
apply under any Settlement Option is less than $1,000, the Company has the right
to pay such amount in one lump sum. In addition, if the payments provided for
would be less than $25, the Company shall have the right to change the frequency
of the payments to result in payments of at least $25.
ADDITIONAL PROVISIONS
The Company may require proof of the age of the Annuitant before making any
life annuity payment under the Contract. If the Annuitant's age has been
misstated, the amount payable will be the amount that would have been provided
under the Settlement Option at the correct age. Once life income payments begin,
any underpayments will be made up in one sum with the next annuity payment.
Overpayments will be deducted from the future annuity payments until the total
is repaid.
The Contract must be returned to the Company upon any settlement. Prior to
any settlement of a death claim, proof of the Annuitant's death must be
submitted to the Company.
Where any benefits under the Contract are contingent upon the recipient's
being alive on a given date, the Company require proof satisfactory to it that
such condition has been met.
The Contracts described in this Prospectus contain annuity payment rates
that distinguish between men and women. On July 6, 1983, the Supreme Court held
in Arizona Governing Committee v. Norris that optional annuity benefits provided
under an employer's deferred compensation plan could not, under Title VII of the
Civil Rights Act of 1964, vary between men and women on the basis of sex.
Because of this decision, the annuity payment rates that apply to Contracts
purchased under an employment-related insurance or benefit program may in some
cases not vary on the basis of the Annuitant's sex. Unisex rates to be provided
by the Company will apply for Qualified Plans.
Employers and employee organizations should consider, in consultation with
legal counsel, the impact of Norris, and Title VII, generally and any comparable
state laws that may apply, on any employment-related plan for which a Contract
may be purchased.
OTHER PROVISIONS
OWNERSHIP
The Contractholder has all rights and may receive all benefits under the
Contract. During the lifetime of the Annuitant (and Contingent Annuitant if one
has been named), the Contractholder is the person so designated in the
application, unless:
(1) A change in Contractholder is requested, or
(2) A Successor Contractholder becomes the Contractholder.
On and after the death of the Annuitant (and Contingent Annuitant, if
applicable), the Beneficiary shall be the Contractholder.
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The Contractholder may name a Successor Contractholder or a new
Contractholder at any time. If the Contractholder dies, the Successor
Contractholder, if living, becomes the Contractholder. Any request for change
must be:
(1) Made in writing; and
(2) Received at the Company.
The change will become effective as of the date the written request is signed. A
new choice of Contractholder or Successor Contractholder will apply to any
payment made or action taken by the Company after the request for the change is
received. Contractholders should consult a competent tax advisor prior to
changing Contractholders.
SUCCESSOR CONTRACTHOLDER -- The living person who, at the death of the
Contractholder, becomes the new Contractholder.
PROVISION REQUIRED BY SECTION 72(s) OF THE CODE
The Contract under a Non-Qualified Plan will be surrendered as of the date
of the Contractholder's death if:
- The Contractholder dies:
- Before the start of annuity payments, and
- While the Annuitant is living, and
- That Contractholder's spouse is not the Successor Contractholder as of
the date of the Contractholder's death.
- Satisfactory proof of death must be provided to the Company.
The surrender proceeds may be paid over the life of the Successor Contractholder
if:
- The Successor Contractholder is the Beneficiary, and
- The Successor Contractholder chooses that option.
Payments must begin no later than one year after the date of death. If the
Successor Contractholder is a surviving spouse, then the surviving spouse will
be treated as the new Contractholder of the Contract. Under such circumstances,
it is not necessary to surrender the Contract. The proceeds must be distributed
within 5 years after the date of death if:
- The spouse is not the Successor Contractholder, and
- There is no designated Beneficiary.
However, under the terms of the Contract, if the spouse is not the Successor
Contractholder,
- the Contract will be surrendered as of the date of death, and
- the proceeds will be paid to the Beneficiary.
This provision shall not extend the term of the Contract beyond the date when
death proceeds become payable.
If the Contractholder dies on or after annuity payments start, any
remaining portion of the proceeds will be distributed using a method that is at
least as quick as the one used as of the date of the Contractholder's death.
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PROVISION REQUIRED BY SECTION 401(a)(9) OF THE CODE
The entire interest of a Qualified Plan participant under the Contract will
be distributed to the Contractholder or his/her Designated Beneficiary.
Distribution will occur either by or beginning not later than April 1 of the
calendar year following the calendar year the Qualified Plan Participant attains
age 70 1/2. The interest is distributed:
- over the life of such Participant, or
- the lives of such Participant and Designated Beneficiary.
If (i) distributions have begun, and (ii) the Participant dies before the
Contractholder's entire interest has been distributed to him/her, the remaining
distributions will be made using a method that is at least as quick as that used
as of the date of the Participant's death. The Contract will be surrendered as
of the Participant's death if:
(1) The Participant dies before the start of such distributions, and
(2) There is no designated Beneficiary.
The surrender proceeds must be distributed within 5 years after the date of
death. But, the surrender proceeds may, be paid over the life of any Designated
Beneficiary at his/her option. In such case, distributions will begin not later
than one year after the Participant's death. If the Designated Beneficiary is
the surviving spouse of the Participant, distributions will begin not earlier
than the date on which the Participant would have attained age 70 1/2. If the
surviving spouse dies before distributions to him/her begin, the provisions of
this paragraph shall be applied as if the surviving spouse were the Participant.
If the Plan is an IRA under Section 408 of the Code, the surviving spouse may
elect to forgo distribution and treat the IRA as his/her own plan.
It is the Contractholder's responsibility to assure that distribution rules
imposed by the Code will be met. Qualified Plan Contracts include those
qualifying for special treatment under Sections 401, 403, and 408 of the Code.
CONTINGENT ANNUITANT
Except where the Contract is issued in connection with a Qualified Plan, a
Contingent Annuitant may be designated by the Contractholder. Such designation
may be made once before annuitization, either
(1) in the application for the Contract, or
(2) after the Contract is issued, by written notice to the Company at
its Operation Center.
The Contingent Annuitant may be deleted by written notice to the Company at its
Operation Center. A designation or deletion of a Contingent Annuitant will take
effect as of the date the written election was signed. The Company, however,
must first accept and record the change at its Operations Center. The change
will be subject to:
- any payment made by the Company, or
- action taken by the Company before the receipt of the notice at the
Company's Operation Center.
The Contingent Annuitant will be deleted from the Contract automatically by the
Company as of the Contract Anniversary following the Contingent Annuitant's 95th
birthday.
On the death of the Annuitant, the Contingent Annuitant will become the
Annuitant, under the following conditions:
(1) the death of the Annuitant must have occurred before annuity
payments start;
(2) the Contingent Annuitant is living on the date of the Annuitant's
death;
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(3) if the Annuitant was the Contractholder on the date of death, the
Successor Contractholder must have been the Annuitant's spouse;
and
(4) if the date annuity payments start is later than the Contract
Anniversary nearest the Contingent Annuitant's 95th birthday, the
date annuity payments start will be automatically advanced to that
Contract Anniversary.
Effect of Contingent Annuitant's Becoming the Annuitant. If the Contingent
Annuitant becomes the Annuitant, the Death Benefit proceeds will be paid to the
Beneficiary only on the death of the Contingent Annuitant. If the Contingent
Annuitant was the Beneficiary on the Annuitant's death, the Beneficiary will be
automatically changed to the person who was the Successor Beneficiary on the
date of death. If there was no Successor Beneficiary, then the Contingent
Annuitant's executors or administrators, unless the Contractholder directed
otherwise, will become the Beneficiary. All other rights and benefits under the
Contract will continue in effect during the lifetime of the Contingent Annuitant
as if the Contingent Annuitant were the Annuitant.
ASSIGNMENT
The Company will not be bound by any assignment until the assignment (or a
copy) is received by the Company at its Home Office. The Company is not
responsible for determining the validity or effect of any assignment. The
Company shall not be liable for any payment or other settlement made by the
Company before receipt of the assignment.
If the Contract is issued under certain retirement plans, then it may not
be assigned, pledged or otherwise transferred except under conditions allowed
under applicable law.
Because an assignment may be a taxable event, a Contractholder should
consult a competent tax advisor before assigning the Contract.
CHANGE OF BENEFICIARY
So long as the Contract is in effect, the Beneficiary or Successor
Beneficiary may be changed. A change is made by submitting a written request to
the Company at its Operation Center. The form of the request must be acceptable
to the Company. The Contract need not be returned unless requested by the
Company. The change will take effect as of the date the request is signed,
whether or not the Annuitant is living when the request is received by the
Company. The Company will not, however, be liable for any payment made or action
taken before receipt and acknowledgement of the request at its Operation Center.
SUBSTITUTION OF SECURITIES
The Company may substitute shares of another mutual fund for shares of the
Funds already purchased or to be purchased in the future by Contract Purchase
Payments if:
(1) the shares of any portfolio of the Funds is no longer available
for investment by MONY America Variable Account A or,
(2) in the judgment of the Company's Board of Directors, further
investment in shares of one or more of the portfolios of the Funds
is inappropriate based on the purposes of the Contract.
A substitution of securities in any subaccount will take place only with prior
approval of the Securities and Exchange Commission and under such requirements
as it may impose.
MODIFICATION OF THE CONTRACTS
Upon notice to the Contractholder, the Contract may be modified by the
Company, but only if such modification
(1) is necessary to make the Contract or MONY America Variable Account
A comply with any law or regulation issued by a governmental
agency to which the Company is subject or
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(2) is necessary to assure continued qualification of the Contract
under the Internal Revenue Code or other federal or state laws
relating to retirement annuities or annuity contracts or
(3) is necessary to reflect a change in the operation of MONY America
Variable Account A or the subaccounts or the Guaranteed Interest
Account or
(4) provides additional Settlement Options or fixed accumulation
options. In the event of any modification, the Company may make
appropriate endorsement in the Contract to reflect such
modification.
CHANGE IN OPERATION OF MONY AMERICA VARIABLE ACCOUNT A
MONY America Variable Account A may be operated as a management company
under the 1940 Act or it may be deregistered under the 1940 Act in the event the
registration is no longer required
- at the Company's election, and
- subject to any necessary vote by persons having the right to give voting
instructions for shares of the Funds held by the subaccounts.
Deregistration of MONY America Variable Account A requires an order by the
Securities and Exchange Commission. If there is a change in the operation of
MONY America Variable Account A under this provision, the Company may make
appropriate endorsement to the Contract to reflect the change and take such
other action as may be necessary and appropriate to effect the change.
VOTING RIGHTS
All of the assets held in the subaccounts of MONY America Variable Account
A will be invested in shares of the designated portfolios of the Funds. The
Company is the legal holder of these shares. As such, it has the right to vote
on the following matters:
(1) Election of the Board of Directors of MONY Series Fund, Inc. or
the Board of Trustees of The Enterprise Accumulation Trust.
(2) Certain matters that are required by the 1940 Act to be approved
or ratified by the shareholders of a mutual fund.
(3) Any other matter that may be voted upon at a shareholders'
meeting.
To the extent required by law, the Company will vote the shares of each of the
Funds held in MONY America Variable Account A (whether or not attributable to
Contractholders). The Company will vote at shareholder meetings of each of the
Funds according to the instructions received from Contractholders. The number of
votes will be determined as of the record date selected by the Board of
Directors or the Board of Trustees of the respective Fund. The Company will
furnish Contractholders with the proper forms to enable them to give it these
instructions. Currently, the Company may disregard voting instructions under the
circumstances described in the following paragraph.
The Company may, if required by state insurance officials, disregard voting
instructions if those instructions would require shares to be voted to
- Cause a change in the subclassification or investment objectives or
policies of one or more of the portfolios of either or both of the Funds.
- Approve or disapprove an investment adviser or principal underwriter for
either or both of the Funds.
In addition, the Company itself may disregard voting instructions that would
require the above changes if the Company reasonably disapproves those changes in
accordance with applicable federal regulations. If the Company does disregard
voting instructions, it will advise Contractholders of that action and its
reasons for the action in the next semiannual report to Contractholders.
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- - Each Contractholder will have the equivalent of one vote per $100 of value
attributable to the Contract held in each subaccount of MONY America Variable
Account A.
- - Each Contractholder will have fractional votes for amounts less than $100.
- - For voting purposes, this value attributable to the Contract is equal to the
Cash Value.
- - The votes are represented as votes per $100 of value in each subaccount of
MONY America Variable Account A. These votes are converted into a
proportionate number of votes in shares of the corresponding portfolio of each
of the Funds.
- - Shares for which timely voting instructions are not received from
Contractholders will be voted by the Company. The Company will vote the shares
in the same proportion as those shares in that subaccount for which
instructions are received.
- - Should applicable federal securities laws or regulations permit, the Company
may elect to vote shares of each of the Funds in its own right.
The number of corresponding shares of the portfolio for which the
Contractholder may give instructions is computed by:
(1) Determining the value attributable to the Contract held in that
subaccount.
(2) Dividing that value by the net asset value of one share in the
designated portfolio of the respective Fund.
Example: Contract value held in subaccount = $540
Net asset value of portfolio shares = $20 per share on the record date
May give instructions on 5.4 votes ($540 divided by $100)
Converts into instructions on 27 shares of the Fund ($540 divided by
$20)
Matters on which Contractholders may give voting instructions include
the following:
(1) approval of any change in the Investment Advisory Agreement and
Services Agreement, if any, for the portfolio(s) of the Fund(s)
corresponding to the Contractholder's selected subaccount(s);
(2) any change in the fundamental investment policies of the
portfolio(s) corresponding to the Contractholder's selected
subaccount(s); and
(3) any other matter requiring a vote of the shareholders of either of
the Funds.
Contractholders participating in a particular portfolio will vote separately on
the following matters pursuant to the requirements of Rule 18f-2 under the 1940
Act:
(1) approval of the Investment Advisory Agreement, or
(2) any change in a portfolio's fundamental investment policies,
DISTRIBUTION OF THE CONTRACTS
MONY Securities Corporation ("MSC"), a New York corporation organized on
September 26, 1969 which is a wholly-owned subsidiary of MONY, will act as the
principal underwriter of the Contracts, pursuant to an underwriting agreement
with the Company. MSC is a registered broker-dealer under the Securities
Exchange Act of 1934 and is a member of the National Association of Securities
Dealers. The Contracts are sold by individuals who are registered
representatives of MSC and who are licensed as life insurance agents for the
Company. The Contracts may also be sold through other broker-dealers authorized
by MSC and applicable law to do so. Commissions and other expenses directly
related to the sale of the Contract will not exceed 6.0% of Purchase Payments.
Additional compensation may be paid for persistency, sales quality, and contract
size and for other services not directly related to the sale of the Contract.
Such services include the training of personnel and the production of
promotional material.
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FEDERAL TAX STATUS
INTRODUCTION
The Contracts described in this prospectus are designed for use by retirement
plans that may or may not qualify for favorable tax treatment under the
provisions of Section 401, 403 (other than 403(b)), 408(b), and 457 of the Code.
The ultimate effect of federal income taxes on
- the value of the Contract's Cash Value,
- annuity payments, and
- economic benefit to the Contractholder, Annuitant, and the Beneficiary
may depend upon
- the type of retirement plan for which the Contract is purchased, and
- the tax and employment status of the individual concerned.
The following discussion of the treatment of Contracts and of the Company
under the federal income tax laws is general in nature. The discussion is based
on the Company's understanding of current federal income tax laws, and is not
intended as tax advice. Any person considering the purchase of a Contract should
consult a qualified tax adviser. A more detailed description of the treatment of
the Contract under federal income tax laws is contained in the Statement of
Additional Information. THE COMPANY DOES NOT MAKE ANY GUARANTEE REGARDING ANY
TAX STATUS, FEDERAL, STATE, OR LOCAL, OF ANY CONTRACT OR ANY TRANSACTION
INVOLVING THE CONTRACTS.
TAX TREATMENT OF THE COMPANY
Under existing federal income tax laws, the income of MONY America Variable
Account A, to the extent that it is applied to increase reserves under the
Contracts, is substantially nontaxable to the Company.
TAXATION OF ANNUITIES IN GENERAL
The Contracts offered by this prospectus are designed for use in connection
with Qualified Plans and Non-Qualified Plans. All or a portion of the
contributions to such plans will be used to make Purchase Payments under the
Contracts. In general, contributions to Qualified Plans and income earned on
contributions to all plans are tax-deferred until distributed to plan
participants or their beneficiaries. Such tax deferral is not, however,
available for Non-Qualified Plans if the Contractholder is other than a natural
person unless the contract is held as an agent for a natural person. Annuity
payments made as retirement distributions under a Contract are generally taxable
to the annuitant as ordinary income except to the extent of
- Participant contributions (in the case of Qualified Plans), or
- Contractholder contributions (in the case of Non-Qualified Plans).
Contractholders, Annuitants, and Beneficiaries should seek qualified advice
about the tax consequences of distributions, withdrawals, and payments under the
retirement plans in connection with which the Contracts are purchased.
The Company will withhold and remit to the United States Government and,
where applicable to state governments part of the taxable portion of each
distribution made under a Contract unless the Contractholder or Annuitant
- provides his or her taxpayer identification number to the Company, and
- notifies the Company that he or she chooses not to have amounts withheld.
The Technical and Miscellaneous Revenue Act of 1988 ("TAMRA") has
requirements for determining the amount includable in gross income with respect
to distributions not received as an annuity. Distributions include those
resulting from gratuitous transfers. When computing the distributions for any 12
month period, distributions from all annuity contracts issued by the same
company to the Contractholder (other than those issued to qualified retirement
plans) will be treated as one annuity contract. The IRS is given power to
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prescribe additional rules to prevent avoidance of this rule through serial
purchases of contracts or otherwise. None of these rules is expected to affect
tax-benefited plans.
Effective January 1, 1993, distributions of plan benefits from qualified
retirement plans, other than individual retirement arrangements ("IRAs"),
generally will be subject to mandatory federal income tax withholding unless
they either are:
1. Part of a series of substantially equal periodic payments (at least
annually) for
- the participant's life or life expectancy,
- the joint lives or life expectancies of the participant and his/her
beneficiary,
- or a period certain of not less than 10 years, or
2. Required by the Code upon the participant's attainment of age
70 1/2 or death.
Such withholding will apply even if the distribution is rolled over into
another qualified plan, including an IRA. The withholding can be avoided if the
participant's interest is directly transferred by the old plan to another
eligible qualified plan, including an IRA. A direct transfer to the new plan can
be made only in accordance with the terms of the old plan. If withholding is not
avoided, the amount withheld may be subject to income tax and excise tax
penalties.
Under the generation skipping transfer tax, the Company may be liable for
payment of this tax under certain circumstances. In the event that the Company
determines that such liability exists, an amount necessary to pay the generation
skipping transfer tax may be subtracted from the death benefit proceeds.
ANNUITY CONTRACTS GOVERNED BY SECTION 403(b) OF THE CODE
An annuity contract will not be treated as a Qualified Contract under
Section 403(b) of the Code unless distributions which are attributable to a
contribution made pursuant to a salary reduction agreement may be paid only:
(1) when the Contractholder attains age 59 1/2;
(2) when the Contractholder separates from the service of his employer;
(3) when the Contractholder dies;
(4) when the Contractholder becomes permanently disabled within the meaning
of Section 72(m)(7) of the Code; or
(5) in the case of hardship.
These restrictions generally apply to contributions made after December 31, 1988
and to any increase in Cash Value of the Contract after December 31, 1988.
Therefore, effective January 1, 1989 and thereafter, any contributions made, or
increase in Cash Value, on or after January 1, 1989 will be restricted from
withdrawal except upon the five sets of circumstances set forth above. Hardship
withdrawals are limited to the amount of the Contractholder's purchase payments.
However, any purchase payments that reflect employer contributions and the
earnings thereon will not be restricted unless specifically provided for by the
applicable employer's plan.
Effective January 1, 1989, the Contracts offered by this prospectus have
been withdrawn from sale in connection with Qualified Plans which intend to
qualify for federal income tax advantages under Section 403(b) of the Code.
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RETIREMENT PLANS
The Contracts described in this Prospectus currently are designed for use
with the following types of retirement plans:
(1) Pension and Profit Sharing Plans established by business employers
and certain associations, as permitted by Sections 401(a) and
401(k) of the Code, including those purchasers who would have been
covered under the rules governing H.R. 10 (Keogh) Plans;
(2) Individual Retirement Annuities permitted by Section 408(b) of the
Code, including Simplified Employee Pensions established by
employers pursuant to Section 408(k);
(3) Deferred compensation plans provided by certain governmental
entities under Section 457;
(4) Non-Qualified Plans; And
(5) Tax-Sheltered Annuity Plans established by certain educational and
tax-exempt organizations under Section 403(b) of the Code.
(Effective January 1, 1989, the Contracts offered by this
prospectus have been withdrawn from sale in all states in
connection with Qualified Plans which intend to qualify for
federal income tax advantages under Section 403(b) of the Code).
The tax rules applicable to participants in such retirement plans vary
according to the type of plan and its terms and conditions. Therefore, no
attempt is made here to provide more than general information about the use of
Contracts with the various types of retirement plans. Participants in such plans
as well as Contractholders, Annuitants, and Beneficiaries are cautioned that the
rights of any person to any benefits under these plans are subject to the terms
and conditions of the plans themselves, regardless of the terms and conditions
of the Contracts. The Company will provide purchasers of Contracts used in
connection with Individual Retirement Annuities with such supplementary
information as may be required by the Internal Revenue Service or other
appropriate agency. Any person contemplating the purchase of a Contract should
consult a qualified tax adviser.
SPECIAL EXCHANGE OFFER
Holders of flexible premium variable annuity contracts issued by us on and
after November 1, 1987 have a special right to exchange the contract which they
hold for a Contract. We will waive all charges imposed on the surrender of the
contract which they hold, provided that:
(1) an application for the Contract be submitted upon the exercise of this
special right, and
(2) the special right is exercised not later than the expiration of 60 days
from the later of:
(a) the date upon which the exchange program becomes effective, and
(b) the date the Contract becomes available in the state in which such
contractholder resides.
PERFORMANCE DATA
We may advertise the performance of the MONY America Variable Account A
subaccounts. We will also report performance to contract Contractholders and may
make performance information available to prospective purchasers. This
information will be presented in compliance with applicable law.
Performance information contained in these advertisements is based upon
historical earnings and is not indicative of future performance. The data for
each subaccount reflects the investment results of the designated portfolio of
the Fund and recurring charges and deductions borne by or imposed on the
portfolio and the subaccount. Set forth below for each subaccount is the manner
in which the data contained in such advertisements will be calculated.
Money Market Subaccount. The performance data for this subaccount will
reflect the "yield" and "effective yield". The "yield" of the subaccount refers
to the income generated by an investment in the
39
<PAGE> 46
Subaccount over the seven day period stated in the advertisement. This income is
"annualized", that is, the amount of income generated by the investment during
that week is assumed to be generated each week over a 52 week period and is
shown as a percentage of the investment. The "effective yield" is calculated
similarly, but, when annualized, the income earned by an investment in the
subaccount is assumed to be reinvested. The "effective yield" will be slightly
higher than the "yield" because of the compounding effect of this assumed
reinvestment.
Subaccounts other than the Money Market Subaccount. The performance data
for these subaccounts will reflect the "yield" and "total return". The "yield"
of each of these subaccounts refers to the income generated by an investment in
that subaccount over the 30 day period stated in the advertisement and is the
result of dividing that income by the value of the subaccount. The value of each
subaccount is the average daily number of Units outstanding multiplied by the
Unit Value on the last day of the period. The "yield" reflects deductions for
all charges, expenses, and fees of both the Funds and the Variable Account other
than the Surrender Charge. "Total return" for each of these subaccounts refers
to the return a Contractholder would receive during the period indicated if a
$1,000 Purchase Payment was made the indicated number of years ago. It reflects
historical investment results less charges and deductions of both the Funds and
MONY America Variable Account A, including any Surrender Charge imposed as a
result of the full Surrender, with the distribution being made in cash rather
than in the form of one of the settlement options, at the close of the period
for which the "total return" data is given. Total return data may also be shown
assuming that the Contract continues in force (i.e., was not surrendered) beyond
the close of the periods indicated, in which case that data would reflect all
charges and deductions of both the Funds and the Variable Account other than the
Surrender Charge. Returns for periods exceeding one year reflect the average
annual total return for such period. In addition to the total return data
described above based upon a $1,000 investment, comparable data may also be
shown for an investment equal to the amount of the average purchase payment made
by a purchaser of a Contract during the prior year.
Non-Standardized Performance Data. From time to time, average annual total
return or other performance data may also be advertised in non-standardized
formats. Non-standard performance data will be accompanied by standard
performance data, and the period covered or other non-standard features will be
disclosed.
Performance information for MONY America Variable Account A may be compared
in advertisements, sales literature, and reports to contract Contractholders to
various indices, including, without limitation, the Standard & Poor's 500
Indices and the Lehman Brothers, Shearson, CDA/Wiesenberger, Russell, Merrill
Lynch, and Wilshire indices, and to various ranking services, including, without
limitation, the Lipper Annuity and Closed End Survey compiled by Lipper
Analytical Services and the VARDS report compiled by Variable Annuity Research
and Data Service and to the Consumer Price Index (a measure for inflation)in
order to provide the reader a basis for comparison of performance. Reports and
promotional literature may also contain the Company's rating or a rating of the
Company's claims paying ability as determined by firms that analyze and rate
insurance companies and by nationally recognized statistical rating
organization.
ADDITIONAL INFORMATION
This Prospectus does not contain all the information set forth in the
registration statement, certain portions of which have been omitted pursuant to
the rules and regulations of the Securities and Exchange Commission. The omitted
information may be obtained from the Commission's principal office in
Washington, D.C., upon payment of the fees prescribed by the Commission.
For further information with respect to the Company and the Contracts
offered by this Prospectus, including the Statement of Additional Information
(which includes financial statements relating to the Company), Contractholders
and prospective investors may also contact the Company at its address or phone
number set forth on the cover of this Prospectus for requesting such statement.
The Statement of Additional Information is available from the Company without
charge.
40
<PAGE> 47
LEGAL PROCEEDINGS
There are no legal proceedings to which MONY America Variable Account A is
a party. The Company and the principal underwriter are engaged in various kinds
of routine litigation which, in the opinions of the Company and the principal
underwriter, are not of material importance in relation to the total capital and
surplus of the Company or the principal underwriter.
FINANCIAL STATEMENTS
The financial statements for the Company should be distinguished from the
financial statements of MONY America Variable Account A and should be considered
only as bearing on the ability of the Company to meet its obligations under the
Contracts. The financial statements of the Company should not be considered as
bearing on the investment performance of the assets held in MONY America
Variable Account A. The financial statements of the Company and MONY America
Variable Account A are included in the Statement of Additional Information.
41
<PAGE> 48
TABLE OF CONTENTS
OF
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 2000
<TABLE>
<CAPTION>
ITEM PAGE
- ---- ----
<S> <C>
MONY Life Insurance Company of America...................... 1
Legal Opinion............................................... 1
Independent Accountants..................................... 1
Federal Tax Status.......................................... 2
Performance Data............................................ 5
Financial Statements........................................ F-1
</TABLE>
If you would like to receive a copy of the MONY America Variable Account A
Statement of Additional Information, please return this request to:
MONY Life Insurance Company of America
Mail Drop 8-27
1740 Broadway
New York, New York 10019
Your name ______________________________________
Address _________________________________________
City ____________ State ____________ Zip _______
Please send me a copy of the MONY America Variable Account A Statement of
Additional Information.
Policy B2-88/B4-88
FORM NO. 13454 (5/99) 33-20453
42
<PAGE> 49
APPENDIX A
CALCULATION OF SURRENDER CHARGE
ILLUSTRATION 1
Suppose an initial Purchase Payment of $15,000 is the only payment made,
and no taxes are deducted from this payment. At the beginning of the third
Contract Year, the Cash Value of the Contract has grown to $18,000 and the
Contractholder requests a partial surrender of $2,000.
The Surrender Charge is determined as follows:
Step 1: Purchase Payments are allocated to the surrender amount, as
follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACT
ANNIVERSARIES SINCE AMOUNT AMOUNT AVAILABLE
PURCHASE PAYMENT CONTRACT YEAR ALLOCATED FOR ALLOCATION TO
RECEIVED BY US PAYMENT RECEIVED TO SURRENDER FUTURE SURRENDERS
------------------- ---------------- ------------ -----------------
<S> <C> <C> <C>
0............................... 3 $ 0 $ 0
1............................... 2 0 0
2............................... 1 2,000 13,000
</TABLE>
IF THE CONTRACT IS A NON-QUALIFIED CONTRACT --
Step 2: The Guaranteed Free Surrender Amount is calculated as 10% of the
Cash Value ($1,800). Reduce the resulting amount allocated to surrender ($2,000)
by the Guaranteed Free Surrender Amount ($1,800), and apply the Surrender Charge
Percentages as follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACT AMOUNT OF
ANNIVERSARIES SINCE AMOUNT SURRENDER SURRENDER
PURCHASE PAYMENT CONTRACT YEAR ALLOCATED CHARGE CHARGE
RECEIVED BY US PAYMENT RECEIVED TO SURRENDER PERCENTAGE (AMT X PCT)
------------------- ---------------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
0..................... 3 $ 0 7% $ 0
1..................... 2 0 7 0
2..................... 1 200 6 12
</TABLE>
Step 3: Summing the resulting Amounts of Surrender Charge produces a total
Surrender Charge of $12.
The Surrender Charge, plus the amount of the surrender is then deducted
from the remaining Cash Value of the Non-Qualified Contract, for a total
withdrawal of $2,012.
IF THE CONTRACT IS A QUALIFIED CONTRACT --
Step 2: The Guaranteed Free Surrender Amount is calculated as up to the
greater of 10% of the Cash Value ($1,800) of the Qualified Contract or up to
$10,000. Since the partial surrender requested is less than $10,000 (although it
is greater than 10 percent), there is no Surrender Charge.
Since there is no Surrender Charge, the entire amount requested is
available under the Guaranteed Free Surrender Amount provision of the Qualified
Contract.
Assuming that in the middle of the tenth Contract Year, a full surrender is
requested. The Cash Value at the time of full surrender is $28,000. Since this
is a full surrender, the Annual Contract Charge (currently $30) is deducted from
the Cash Value, leaving a remaining Cash Value balance of $27,970. For this
calculation, there is $13,000 of Purchase Payments made in the first Contract
Year.
A-1
<PAGE> 50
The Surrender Charge is determined as follows:
Step 1: Purchase Payments are allocated to the surrender amount, as
follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACT
ANNIVERSARIES SINCE AMOUNT
PURCHASE PAYMENT CONTRACT YEAR ALLOCATED TO
RECEIVED BY US PAYMENT RECEIVED SURRENDER
------------------- ----------------- ------------
<S> <C> <C>
0................................................. 10 $ 0
1................................................. 9 0
2................................................. 8 0
3................................................. 7 0
4................................................. 6 0
5................................................. 5 0
6................................................. 4 0
7................................................. 3 0
8 or more......................................... 1 and 2 13,000
</TABLE>
IF THE CONTRACT IS A NON-QUALIFIED CONTRACT --
Step 2: The Guaranteed Free Surrender Amount is calculated as up to 10% of
the Cash Value ($2,800) of the Non-Qualified Contract. Reduce the resulting
amount allocated to surrender ($13,000) by the Guaranteed Free Surrender Amount
($2,800), and apply the Surrender Charge Percentages as follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACT AMOUNT OF
ANNIVERSARIES SINCE AMOUNT SURRENDER SURRENDER
PURCHASE PAYMENT CONTRACT YEAR ALLOCATED TO CHARGE CHARGE
RECEIVED BY US PAYMENT RECEIVED SURRENDER PERCENTAGE (AMT X PCT)
------------------- ---------------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
0............................ 10 $ 0 7% $0
1............................ 9 0 7 0
2............................ 8 0 6 0
3............................ 7 0 6 0
4............................ 6 0 5 0
5............................ 5 0 4 0
6............................ 4 0 3 0
7............................ 3 0 2 0
8 or more.................... 1 and 2 10,200 0 0
</TABLE>
Step 3: Summing the resulting Amounts of Surrender Charge produces a total
Surrender Charge of $0.
A-2
<PAGE> 51
IF THE CONTRACT IS A QUALIFIED CONTRACT --
Step 2: The Guaranteed Free Surrender Amount is calculated as up to the
greater of 10% of the Cash Value ($2,800) of the Qualified Contract or up to
$10,000. Reduce the resulting amount allocated to surrender ($13,000) by the
Guaranteed Free Surrender Amount ($10,000), and apply the Surrender Charge
Percentages as follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACT AMOUNT OF
ANNIVERSARIES SINCE AMOUNT SURRENDER SURRENDER
PURCHASE PAYMENT CONTRACT YEAR ALLOCATED TO CHARGE CHARGE
RECEIVED BY US PAYMENT RECEIVED SURRENDER PERCENTAGE (AMT X PCT)
------------------- ---------------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
0........................... 10 $ 0 7% $0
1........................... 9 0 7 0
2........................... 8 0 6 0
3........................... 7 0 6 0
4........................... 6 0 5 0
5........................... 5 0 4 0
6........................... 4 0 3 0
7........................... 3 0 2 0
8 or more................... 1 and 2 3,000 0 0
</TABLE>
Step 3: Summing the resulting Amounts of Surrender Charge produces a total
Surrender Charge of $0.
Since there are no Purchase Payments such that 7 or less policy
anniversaries had passed since they were received, no part of the surrender
proceeds are subject to a Surrender Charge. Hence, no Surrender Charge is
assessed on this full surrender.
ILLUSTRATION 2
Suppose Purchase Payments of $2,000 are made at the beginning of every
Contract Year. No taxes are deducted from these Payments. In the middle of the
third Contract Year, a partial surrender of $500 is requested. Suppose the Cash
Value has grown to $7,000 at the time of the partial surrender request.
The Surrender Charge is determined as follows:
Step 1: Purchase Payments are allocated to the surrender amount, as
follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACT
ANNIVERSARIES SINCE AMOUNT AVAILABLE FOR
PURCHASE PAYMENT CONTRACT YEAR ALLOCATED TO ALLOCATION TO
RECEIVED BY US PAYMENT RECEIVED SURRENDER FUTURE SURRENDERS
------------------- ---------------- ------------ -----------------
<S> <C> <C> <C>
0................................. 3 $ 0 $2,000
1................................. 2 0 2,000
2................................. 1 500 1,500
</TABLE>
IF THE CONTRACT IS A NON-QUALIFIED CONTRACT --
Step 2: The Guaranteed Free Surrender Amount is calculated as up to 10% of
the Cash Value ($700) of the Non-Qualified Contract. Reduce the resulting amount
allocated to surrender ($500) by the Guaranteed Free Surrender Amount ($700),
and apply the Surrender Charge Percentages as follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACT AMOUNT OF
ANNIVERSARIES SINCE AMOUNT SURRENDER SURRENDER
PURCHASE PAYMENT CONTRACT YEAR ALLOCATED TO CHARGE CHARGE
RECEIVED BY US PAYMENT RECEIVED SURRENDER PERCENTAGE (AMT X PCT)
------------------- ---------------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
0......................... 3 $0 7% $0
1......................... 2 0 7 0
2......................... 1 0 6 0
</TABLE>
A-3
<PAGE> 52
Step 3: Summing the resulting Amounts of Surrender Charge produces a total
Surrender Charge of $0.
The partial surrender will be allocated to $500 of payments made in the
first Contract Year. But since 10 percent of the Cash Value ($700) of the
Non-Qualified Contract could be surrendered under the Guaranteed Free Surrender
Amount Provision, the partial surrender of $500 could be withdrawn without a
surrender charge.
IF THE CONTRACT IS A QUALIFIED CONTRACT --
Step 2: The Guaranteed Free Surrender Amount is calculated as up to the
greater of 10% of the Cash Value ($700) of the Qualified Contract or up to
$10,000. Since the partial surrender requested is less than $10,000 and less
than 10% there is no surrender charge.
Since there is no Surrender Charge, the entire amount requested is
available under the Guaranteed Free Surrender Amount provision of the Qualified
Contract.
Assume that Purchase Payments of $2,000 have continually been made at the
beginning of each Contract Year, and that in the middle of the tenth Contract
Year, a partial surrender of $7,500 is requested. The Cash Value is $32,600 at
the time of the partial surrender request.
The Surrender Charge is determined as follows:
Step 1: Purchase Payments are allocated to the surrender amount, as
follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACT AMOUNT
ANNIVERSARIES SINCE AMOUNT AVAILABLE FOR
PURCHASE PAYMENT CONTRACT YEAR ALLOCATED TO ALLOCATION TO
RECEIVED BY US PAYMENT RECEIVED SURRENDER FUTURE SURRENDERS
------------------- ---------------- ------------ -----------------
<S> <C> <C> <C>
0................................. 10 $ 0 $2,000
1................................. 9 0 2,000
2................................. 8 0 2,000
3................................. 7 0 2,000
4................................. 6 0 2,000
5................................. 5 0 2,000
6................................. 4 2,000 0
7................................. 3 2,000 0
8 or more......................... 1 and 2 3,500 0
</TABLE>
IF THE CONTRACT IS A NON-QUALIFIED CONTRACT --
Step 2: The Guaranteed Free Surrender Amount is calculated as 10% of the
Cash Value ($3,260) of the Non-Qualified Contract. Reduce the resulting amount
allocated to surrender ($3,500) in Contract Years 1 and 2 by the Guaranteed Free
Surrender Amount ($3,260), and apply the Surrender Charge Percentages as
follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACT AMOUNT OF
ANNIVERSARIES SINCE AMOUNT SURRENDER SURRENDER
PURCHASE PAYMENT CONTRACT YEAR ALLOCATED TO CHARGE CHARGE
RECEIVED BY US PAYMENT RECEIVED SURRENDER PERCENTAGE (AMT X PCT)
------------------- ---------------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
6................................... 4 $2,000 3% $60
7................................... 3 2,000 2 40
8 or more........................... 1 and 2 240 0 0
</TABLE>
Step 3: Summing the resulting Amounts of Surrender Charge produces a total
Surrender Charge of $100.
The Surrender Charge, plus the amount of the surrender is then deducted
from the remaining Cash Value of the Non-Qualified Contract, for a total
withdrawal of $7,600.
A-4
<PAGE> 53
IF THE CONTRACT IS A QUALIFIED CONTRACT --
Step 2: The Guaranteed Free Surrender Amount is calculated as up to the
greater of 10% of the Cash Value ($3,260) of the Qualified Contract or up to
$10,000. Since the partial surrender requested is less than $10,000 (although it
is greater than 10 percent), there is no surrender charge.
Since there is no Surrender Charge, the entire amount requested is
available under the Guaranteed Free Surrender Amount provision of the Qualified
Contract.
Assuming that in the middle of the twelfth Contract Year, a full surrender
with the full proceeds being settled under Settlement Option 3, Single Life
Income for 10 years certain and during the balance of the annuitant's lifetime,
payments of $2,000 have continuously been made at the beginning of each contract
year. The Cash Value at the time of the full surrender is $26,000. Since this
example assumes a full surrender is being made, the Annual Contract Charge
(currently $30) is deducted from the Cash Value, leaving a remaining Cash Value
of $25,970.
Since the full proceeds are being applied to Settlement Option 3, the
Surrender Charge is $0. The entire remaining Cash Value of $25,970 is applied to
the settlement option.
A-5
<PAGE> 54
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 55
THE MONYMASTER
STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1999
INDIVIDUAL FLEXIBLE PAYMENT
VARIABLE ANNUITY CONTRACT
ISSUED BY
MONY AMERICA VARIABLE ACCOUNT A
AND
MONY LIFE INSURANCE COMPANY OF AMERICA
This Statement of Additional Information is not a prospectus, but it
relates to, and should be read in conjunction with, the prospectus dated May 1,
1999 for the Individual Flexible Payment Variable Annuity Contract ("Contract")
issued by MONY Life Insurance Company of America ("Company"). The prospectus is
available, at no charge, by writing the Company at 1740 Broadway, New York, New
York 10019, Mail Drop or by calling 1-800-487-6669.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
ITEM PAGE
---- ----
<S> <C>
MONY Life Insurance Company of America...................... 1
Legal Opinion............................................... 1
Independent Accountants..................................... 1
Federal Tax Status.......................................... 2
Performance Data............................................ 5
Financial Statements........................................ F-1
</TABLE>
Form No. 13454SL(5/99) 33-20453
<PAGE> 56
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY Life Insurance Company of America ("Company"), is a stock life
insurance company organized in the state of Arizona. The Company is the
corporate successor of Vico Credit Life Insurance Company, incorporated in
Arizona on March 6, 1969, re-named Vico Life Insurance Company on July 7, 1972,
and re-named Consumers National Life Insurance Company on December 22, 1977.
MONY Life Insurance Company ("MONY") purchased Consumers National Life Insurance
Company on December 10, 1981 and changed the corporate name to MONY Life
Insurance Company of America. The Company is currently licensed to sell life
insurance in 49 states (not including New York), the District of Columbia, the
U.S. Virgin Island, and Puerto Rico.
The Company is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). MONY was organized under the laws of the state of New York in 1842 as
a mutual life insurance company under the name The Mutual Life Insurance Company
of New York. MONY converted to a stock life insurance company in November 1998
through demutualization and assumed its present name at that time. In addition,
MONY became a wholly-owned subsidiary of The MONY Group Inc. The principal
offices of both MONY and the Company are at 1740 Broadway, New York, New York
10019. MONY had consolidated assets at the end of 1999 of approximately $
billion. As of December 31, 1999, MONY had approximately $ million invested
in the Company to support its insurance operations. MONY intends from time to
time to make additional capital contributions to the Company as needed to enable
it to meet its reserve requirements and expenses in connection with its
business. Generally, MONY is under no obligation to make such contributions, and
its assets do not back the benefits payable under the Contracts.
At August 16, 1999, the rating assigned to the Company by A.M. Best
Company, Inc., an independent insurance company rating organization, was A
(Excellent) based upon an analysis of financial condition and operating
performance. At the same date, MONY was rated A on the same basis. The A.M. Best
rating of the Company should be considered only as bearing on the ability of the
Company to meet its obligations under the Contracts.
The Company has a service agreement with MONY whereby MONY provides the
Company with such personnel, facilities, etc., as are reasonably necessary for
the conduct of the Company's business. These services are provided on a cost
reimbursement basis. The Company intends to administer the Contract itself
utilizing the services provided by MONY as a part of the Service Agreement.
During 1999, the Company paid MONY $ for all services provided under
the Service Agreement.
LEGAL OPINION
Legal matters relating to federal securities laws applicable to the issue
and sale of the Contract and all matters of Arizona law pertaining to the
Contract, including the validity of the Contract and the Company's right to
issue the Contract, have been passed upon by Willard G. Eldred, Esq., then Vice
President and Deputy General Counsel, MONY.
INDEPENDENT ACCOUNTANTS
The audited financial statements of the Company and the Variable Account
appearing on the following pages have been audited by PricewaterhouseCoopers
LLP, independent accountants, and are included herein in reliance on the reports
of said firm given on the authority of that firm as experts in accounting and
auditing. PricewaterhouseCoopers LLP's office is located at 1177 Avenue of the
Americas, New York, New York 10036.
(1)
<PAGE> 57
FEDERAL TAX STATUS
INTRODUCTION
The Contract is designed for use to fund retirement plans which may or may
not be Qualified Plans under the provisions of the Internal Revenue Code (the
"Code"). The ultimate effect of federal income taxes on the Contract value, on
annuity payments, and on the economic benefit to the Contractholder, Annuitant,
or Beneficiary depends on the type of retirement plan for which the Contract is
purchased and upon the tax and employment status of the individual concerned.
The discussion contained herein is general in nature and is not intended as tax
advice.
Each person concerned should consult a competent tax adviser. No attempt is
made to consider any applicable state or other tax laws. Moreover, the
discussion herein is based upon the Company's understanding of current federal
income tax laws as they are currently interpreted. No representation is made
regarding the likelihood of continuation of those current federal income tax
laws or of the current interpretations by the Internal Revenue Service.
TAXATION OF ANNUITIES IN GENERAL
Section 72 of the Code governs taxation of annuities in general. Except in
the case of certain corporate and other nonindividual Contractholders, there are
no income taxes on increases in the value of a Contract until a distribution
occurs, in the form of a full surrender, a partial surrender, a death benefit,
an assignment or gift of the Contract, or as annuity payments.
SURRENDERS, DEATH BENEFITS, ASSIGNMENTS AND GIFTS
A Contractholder who fully surrenders his or her Contract is taxed on the
portion of the payment that exceeds his or her cost basis in the Contract. For
Non-Qualified Contracts, the cost basis is generally the amount of the Purchase
Payments made for the Contract, and the taxable portion of the surrender payment
is taxed as ordinary income. For Qualified Contracts, the cost basis is
generally zero, except to the extent of non-deductible employee contributions,
and the taxable portion of the surrender payment is generally taxed as ordinary
income subject to special elective 5-year (and, for certain eligible persons,
10-year) income averaging in the case of certain Qualified Contracts. A
Beneficiary entitled to receive a lump sum death benefit upon the death of the
Annuitant is taxed on the portion of the amount that exceeds the
Contractholder's cost basis in the Contract. If the Beneficiary elects to
receive annuity payments within 60 days of the Annuitant's death, different tax
rules apply. (See "Annuity Payments" below.)
Partial surrenders received under Non-Qualified Contracts prior to
annuitization are first included in gross income to the extent Surrender Value
exceeds Purchase Payments less prior non-taxable distributions, and the balance
is treated as a non-taxable return of principal to the Contractholder. For
partial surrenders under a Qualified Contract, payments are generally prorated
between taxable income and non-taxable return of investment.
There are special rules for Qualified Plans or contracts involving 85
percent or more employee contributions. Since the cost basis of Qualified
Contracts is generally zero, however, partial surrender amounts will generally
be fully taxed as ordinary income.
A Contractholder who assigns or pledges a Non-Qualified Contract is treated
as if he or she had received the amount assigned or pledged and thus is subject
to taxation under the rules applicable to surrenders. A Contractholder who gives
away the Contract (i.e., transfers it without full and adequate consideration)
to anyone other than his or her spouse is treated for income tax purposes as if
he or she had fully surrendered the Contract.
ANNUITY PAYMENTS
The non-taxable portion of each annuity payment is determined by an
"exclusion ratio" formula which establishes the ratio that the cost basis of the
Contract bears to the total expected value of annuity payments
(2)
<PAGE> 58
for the term of the annuity. The remaining portion of each payment is taxable.
Such taxable portion is taxed at ordinary income rates. For Qualified Contracts,
the cost basis is generally zero. With annuity payments based on life
contingencies, the payments will become fully taxable once the Annuitant lives
longer than the life expectancy used to calculate the non-taxable portion of the
prior payments. Conversely, a tax deduction in the Annuitant's last taxable
year, equal to the unrecovered cost basis, is available if the Annuitant does
not live to life expectancy.
PENALTY TAX
Payments received by Contractholders, Annuitants, and Beneficiaries under
both Qualified and Non-Qualified Contracts may be subject to both ordinary
income taxes and a penalty tax equal to 10 percent of the amount received that
is includable in income. The penalty is not imposed on amounts received: (a)
after the taxpayer attains age 59 1/2; (b) in a series of substantially equal
payments made for life or life expectancy following separation from service; (c)
after the death of the Contractholder (or, where the Contractholder is not a
human being, the death of the Annuitant); (d) if the taxpayer is totally
disabled; (e) upon early retirement under the plan after the taxpayer's
attainment of age 55; or (f) which are used for certain medical care expenses.
Exceptions (e) and (f) do not apply to Individual Retirement Accounts and
Annuities and Non-Qualified Contracts. An additional exception for Non-Qualified
Contracts is amounts received as an immediate annuity.
INCOME TAX WITHHOLDING
The Company is required to withhold federal, and, where applicable, state,
income taxes on taxable amounts paid under the Contract unless the recipient
elects not to have withholding apply. The Company will notify recipients of
their right to elect not to have withholding apply.
Effective January 1, 1993, distributions of plan benefits from qualified
retirement plans, other than individual retirement arrangements ("IRAs"),
generally will be subject to mandatory federal income tax withholding unless
they either are:
1. Part of a series of substantially equal periodic payments (at least
annually) for the participant's life or life expectancy, the joint lives or
life expectancies of the participant and his/ her beneficiary, or a period
certain of not less than 10 years, or
2. Required by the Code upon the participant's attainment of age
70 1/2 or death.
Such withholding will apply even if the distribution is rolled over into
another qualified plan, including an IRA. The withholding can be avoided if the
participant's interest is directly transferred by the old plan to another
eligible qualified plan, including an IRA. A direct transfer to the new plan can
be made only in accordance with the terms of the old plan. If withholding is not
avoided, the amount withheld may be subject to income tax and excise tax
penalties.
DIVERSIFICATION STANDARDS
The United States Secretary of the Treasury has the authority to set
standards for diversification of the investments underlying variable annuity
contracts (other than pension plan contracts). The Secretary of the Treasury has
issued certain regulations. Further regulations may be issued. The Funds are
designed to be managed to meet the diversification requirements for the Contract
as those requirements may change from time to time. The Company intends to
satisfy those requirements so that the Contract will be treated as an annuity
contract.
The Secretary of the Treasury has announced that he expects to issue
regulations or Revenue Rulings that will prescribe the circumstances in which a
Contractholder's control of the investments of a segregated asset account may
cause the Contractholder, rather than the insurance company, to be treated as
the owner of the assets of the account. The regulations or Revenue Rulings could
impose requirements that are not reflected in the Contract. The Company,
however, has reserved certain rights to alter the Contract and investment
alternatives so as to comply with such regulations or Revenue Rulings. Since the
regulations or
(3)
<PAGE> 59
Revenue Rulings have not been issued, there can be no assurance as to the
content of such regulations or Revenue Rulings or even whether application of
the regulations or Revenue Rulings will be prospective. For these reasons,
Contractholders are urged to consult with their own tax advisers.
QUALIFIED PLANS
The Contract is designed for use with several types of Qualified Plans. The
tax rules applicable to participants in such Qualified Plans vary according to
the type of plan and the terms and conditions of the plan itself. Moreover, many
of these tax rules were changed by the Tax Reform Act of 1986. Therefore, no
attempt is made herein to provide more than general information about the use of
the Contract with the various types of Qualified Plans. Participants under such
Qualified Plans as well as Contractholders, Annuitants, and Beneficiaries are
cautioned that the rights of any person to any benefits under such Qualified
Plans may be subject to the terms and conditions of the plans themselves,
regardless of the terms and conditions of the Contract issued in connection
therewith. Following are brief descriptions of the various types of Qualified
Plans and of the use of the Contract in connection therewith. Purchasers of the
Contract should seek competent advice concerning the terms and conditions of the
particular Qualified Plan and use of the Contract with that plan.
TAX-SHELTERED ANNUITIES
Section 403(b) of the Code permits public school employees and employees of
certain types of charitable organizations specified in Section 501(c)(3) of the
Code and certain educational organizations to purchase annuity contracts and,
subject to certain contribution limitations, exclude the amount of Purchase
Payments from gross income for tax purposes. However, such Purchase Payments may
be subject to Social Security (FICA) taxes. These annuity contracts are commonly
referred to as "Tax-Sheltered Annuities." Effective January 1, 1989, the
Contracts have been withdrawn from sale to Qualified Plans which intend to
qualify for federal income tax advantages available under Section 403(b).
H.R. 10 PLANS
The Self-Employed Individuals Tax Retirement Act of 1962, as amended, which
is commonly referred to as "H.R. 10," permits self-employed individuals to
establish Qualified Plans for themselves and their employees. The tax
consequences to participants under such plans depend upon the plan itself. In
addition, such plans are limited by law to maximum permissible contributions,
distribution dates, and tax rates applicable to distributions. In order to
establish such a plan, a plan document, usually in prototype form pre-approved
by the Internal Revenue Service, is adopted and implemented by the employer.
INDIVIDUAL RETIREMENT ACCOUNTS AND ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to
individual retirement programs known as "Individual Retirement Accounts" and
"Individual Retirement Annuities." These Individual Retirement Accounts and
Annuities are subject to limitations on the amounts which may be contributed,
the persons who may be eligible, and on the time when distributions may
commence. In addition, distributions from certain types of Qualified Plans may
be placed on a tax-deferred basis into an Individual Retirement Account or
Annuity.
CORPORATE PENSION AND PROFIT-SHARING PLANS
Sections 401(a) and 403(a) of the Code permit corporate employers to
establish various types of retirement plans for employees. Such retirement plans
may permit the purchase of the Contract to provide benefits under the plans.
CERTAIN GOVERNMENTAL ENTITIES
Section 457 of the Code permits certain governmental entities to establish
deferred contribution plans. Such deferred contribution plans may permit the
purchase of the Contract to provide benefits under the plans.
(4)
<PAGE> 60
PERFORMANCE DATA
MONEY MARKET SUBACCOUNT
For the seven-day period ended December 31, 1999, the yield was % and
the effective yield was %.
The yield is calculated by dividing the result of subtracting the value of
one Unit at the end of the seven day period ("Seventh Day Value") from the value
of one Unit at the beginning of the seven day period ("First Day Value") by the
First Day Value (the resulting quotient being the "Base Period Return") and
multiplying the Base Period Return by 365 divided by 7 to obtain the annualized
yield.
The effective yield was calculated by compounding the Base Period Return
calculated in accordance with the preceding paragraph, adding 1 to the Base
Period Return, raising that sum to a power equal to 365 divided by 7 and
subtracting 1 from the result.
As the Money Market Subaccount invests only in shares of the Money Market
Portfolio of the Fund, the First Day Value reflects the per share net asset
value of the Money Market Portfolio (which will normally be $1.00) and the
number of shares of the Money Market Portfolio of the Fund held in the Money
Market Subaccount. The Seventh Day Value reflects increases or decreases in the
number of shares of the Money Market Portfolio of the Fund held in the Money
Market Subaccount due to the declaration of dividends (in the form of shares and
including dividends (in the form of shares) on shares received as dividends) of
the net investment income and the daily charges and deductions from the
Subaccount for mortality and expense risks and a deduction for the Annual
Contract Charge imposed on each Contract Anniversary which has been pro-rated to
reflect the shortened 7-day period and allocated to the Money Market Subaccount
in the proportion that the total value of the Money Market Subaccount bore to
the total value of the Variable Account at the end of the period indicated. Net
investment income reflects earnings on investments less expenses of the Fund
including the Investment Advisory Fee (which for calculating the yield and
effective yield quoted above is assumed to be .40 percent, the fee which would
be charged based upon the amount of assets under management on the last day of
the period for which the quoted yield is stated). Not reflected in either the
yield or effective yield are surrender charges, which will not exceed 7% of
total Purchase Payments made in the Contract Year of surrender and the preceding
7 Contract Years.
(5)
<PAGE> 61
SUBACCOUNTS OTHER THAN MONEY MARKET SUBACCOUNT
TOTAL RETURN:
The average annual total return for the Subaccounts other than the Money
Market Subaccount, assuming full surrender of the Contract for cash at the end
of the period, for the periods indicated is shown in the table below. This table
does not reflect the impact of the tax laws, if any, on total return as a result
of the surrender.
MONY AMERICA VARIABLE ACCOUNT A
TOTAL RETURN
(ASSUMING $1,000 PAYMENT AT BEGINNING OF
PERIOD AND SURRENDER AT END OF PERIOD)
<TABLE>
<CAPTION>
FOR THE
FOR THE FOR THE FOR THE PERIOD SINCE
1 YEAR ENDED 5 YEARS ENDED 10 YEARS ENDED INCEPTION THROUGH
SUBACCOUNT DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
- ---------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Enterprise Equity........... 7.20% 20.26% 14.80% 15.00%
Enterprise Small Company
Value..................... 15.68% 17.24% 15.02% 14.93%
Enterprise Managed.......... -0.19% 18.66% 15.03% 16.32%
Enterprise International
Growth.................... 33.94% 15.02% N/A 14.45%
Enterprise High Yield....... -4.17% 7.53% N/A 7.51%
MONY Government Securities.. -7.48% 3.19% N/A 3.25%
MONY Intermediate Bond...... -7.75% 4.26% 5.18% 5.41%
MONY Long Term Bond......... -15.59% 6.03% 6.46% 6.80%
</TABLE>
- ---------------
MONY America Variable Account A commenced operations on November 25, 1987. Total
return for the period since inception reflects the average annual total return
since the inception (commencement of operations) of each of the Subaccounts,
which is August 1988 for the Equity and Managed Subaccounts, September 1988 for
the Small Company Value Subaccount, January 1988 for the Intermediate Term Bond
Subaccount, February 1988 for the Long Term Bond Subaccount, November 1994 for
the Government Securities Subaccount, and November 1994 for the International
Growth, and for the High Yield Bond Subaccounts. Total return is not indicative
of future performance.
The table above assumes that a $1,000 payment was made to each Subaccount
at the beginning of the period shown, that no further payments were made, that
any distributions from the corresponding Portfolio of the Funds were reinvested,
and that the Contractholder surrendered the Contract for cash, rather than
electing commencement of annuity benefits in the form of one of the Settlement
Options available, at the end of the period shown. The average annual total
return percentages shown in the table reflect the historical rates of return,
deductions for all charges, expenses, and fees of both the Funds (including the
Investment Advisory Fees described in the Prospectus (see "Investment Advisory
Fee" at page 23) and the Variable Account which would be imposed on the payment
assumed, including a contingent deferred sales (Surrender) charge imposed as a
result of the full surrender and a deduction for the Annual Contract Charge
imposed on each Contract Anniversary and upon full surrender and allocated to
each Subaccount in the proportion that the total value of that Subaccount bore
to the total value of the Variable Account at the end of the period indicated.
(6)
<PAGE> 62
The average annual total return for the Subaccounts other than the Money
Market Subaccount, assuming that the Contracts remain in force throughout the
periods indicated, is shown in the table below.
MONY AMERICA VARIABLE ACCOUNT A
TOTAL RETURN
(ASSUMING $1,000 PAYMENT AT BEGINNING OF
PERIOD AND CONTRACT CONTINUES IN FORCE)
<TABLE>
<CAPTION>
FOR THE
FOR THE FOR THE FOR THE PERIOD SINCE
1 YEAR ENDED 5 YEARS ENDED 10 YEARS ENDED INCEPTION THROUGH
SUBACCOUNT DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
---------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Enterprise Equity........... 13.40% 20.61% 14.80% 15.00%
Enterprise Small Company
Value..................... 21.83% 17.65% 15.02% 14.93%
Enterprise Managed.......... 6.07% 19.04% 15.03% 16.32%
Enterprise International
Growth.................... 39.96% 15.48% N/A 14.86%
Enterprise High Yield....... 2.12% 8.16% N/A 8.06%
MONY Government Securities.. -1.18% 3.95% N/A 3.95%
MONY Intermediate Bond...... -1.44% 4.98% 5.18% 5.41%
MONY Long Term Bond......... -9.23% 6.70% 6.46% 6.80%
</TABLE>
- ---------------
MONY America Variable Account A commenced operations on November 25, 1987. Total
return for the period since inception reflects the average annual total return
since the inception (commencement of operations) of each of the Subaccounts,
which is August 1988 for the Equity and Managed Subaccounts, September 1988 for
the Small Company Value Subaccount, January 1988 for the Intermediate Term Bond
Subaccount, February 1988 for the Long Term Bond Subaccount, November 1994 for
the Government Securities Subaccount, and November 1994 for the International
Growth and for the High Yield Bond Subaccounts. Total return is not indicative
of future performance.
The table above reflects the same assumptions and results as the table
appearing on page 6, except that no contingent deferred sales (surrender) charge
has been deducted. The data reflected in the table above reflects the average
annual total return a Contractholder would have received during that period if
he did not surrender his Contract.
In addition to the average annual total returns shown above, average annual
total returns may also be shown for the average purchase payment made by a
purchaser of the Contract. For 1997, this amount was $25,000. The following
tables show average annual total returns calculated on the same basis as the two
tables above, except that the purchase payment is $25,000.
(7)
<PAGE> 63
MONY AMERICA VARIABLE ACCOUNT A
TOTAL RETURN
(ASSUMING $25,000 PAYMENT AT BEGINNING OF
PERIOD AND SURRENDER AT END OF PERIOD)
<TABLE>
<CAPTION>
FOR THE
FOR THE FOR THE FOR THE PERIOD SINCE
1 YEAR ENDED 5 YEARS ENDED 10 YEARS ENDED INCEPTION THROUGH
SUBACCOUNT DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
---------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Equity......................
Small Company Value.........
Managed.....................
International Growth........
High Yield Bond.............
Intermediate Term Bond......
Long Term Bond..............
Government Securities.......
</TABLE>
- ---------------
MONY America Variable Account A commenced operations on November 25, 1987. Total
return for the period since inception reflects the average annual total return
since the inception (commencement of operations) of each of the Subaccounts,
which is August 1988 for the Equity and Managed Subaccounts, September 1988 for
the Small Company Value Subaccount, January 1988 for the Intermediate Term Bond
Subaccount, February 1988 for the Long Term Bond Subaccount, November 1994 for
the Government Securities Subaccount, and November 1994 for the International
Growth and for the High Yield Bond Subaccounts. Total return is not indicative
of future performance.
MONY AMERICA VARIABLE ACCOUNT A
TOTAL RETURN
(ASSUMING $25,000 PAYMENT AT BEGINNING OF
PERIOD AND CONTRACT CONTINUES IN FORCE)
<TABLE>
<CAPTION>
FOR THE
FOR THE FOR THE FOR THE PERIOD SINCE
1 YEAR ENDED 5 YEARS ENDED 10 YEARS ENDED INCEPTION THROUGH
SUBACCOUNT DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
---------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Equity......................
Small Company Value.........
Managed.....................
International Growth........
High Yield Bond.............
Intermediate Term Bond......
Long Term Bond..............
Government Securities.......
</TABLE>
- ---------------
MONY America Variable Account A commenced operations on November 25, 1987. Total
return for the period since inception reflects the average annual total return
since the inception (commencement of operations) of each of the Subaccounts,
which is August 1988 for the Equity and Managed Subaccounts, September 1988 for
the Small Company Value Subaccount, January 1988 for the Intermediate Term Bond
Subaccount, February 1988 for the Long Term Bond Subaccount, November 1994 for
the Government Securities Subaccount, and November 1994 for the International
Growth and for the High Yield Bond Subaccounts. Total return is not indicative
of future performance.
(8)
<PAGE> 64
30-DAY YIELD:
The yield for the Intermediate Term Bond, Long Term Bond, Government
Securities and High Yield Bond Subaccounts is shown in the table below.
MONY AMERICA VARIABLE ACCOUNT A
YIELD FOR 30-DAY PERIOD
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM GOVERNMENT HIGH YIELD
YIELD FOR 30 DAYS ENDED TERM BOND BOND SECURITIES BOND
----------------------- ------------ --------- ---------- ----------
<S> <C> <C> <C> <C>
December 31, 1999.................................. 5.09% 5.30% 4.98% 8.10%
</TABLE>
- ---------------
The 30-day yield is not indicative of future results.
For the Intermediate Term Bond, and Long Term Bond, Government Securities,
and High Yield Bond Portfolios, net investment income is the net of interest
earned on the obligation held by the Portfolio and expenses accrued for the
period. Interest earned on the obligation is determined by (i) computing the
yield to maturity based on the market value of each obligation held in the
corresponding Portfolio at the close of business on the thirtieth day of the
period (or as to obligations purchased during that 30-day period, based on the
purchase price plus accrued interest); (ii) dividing the yield to maturity for
each obligation by 360; (iii) multiplying that quotient by the market value of
each obligation (including actual accrued interest) for each day of the
subsequent 30-day month that the obligation is in the Portfolio; and (iv)
totaling the interest on each obligation. Discount or premium amortization is
recomputed at the beginning of each 30-day period and with respect to discount
and premium on mortgage or other receivables-backed obligations subject to
monthly payment of principal and interest, discount and premium is amortized on
the remaining security, based on the cost of the security, to the weighted
average maturity date, if available, or to the remaining term of the security,
if the weighted average maturity date is not available. Gain or loss
attributable to actual monthly paydowns is reflected as an increase or decrease
in interest income during that period.
The yield shown reflects deductions for all charges, expenses, and fees of
both the Funds and the Variable Account other than the contingent deferred sales
(surrender) charge. The surrender charge will not exceed 7% of total Purchase
Payments made in the Contract Year of surrender and the preceding 7 Contract
Years.
Net investment income of the corresponding Portfolio less all charges and
expenses imposed by the Variable Account is divided by the product of the
average daily number of Units outstanding and the value of one Unit on the last
day of the period. The sum of the quotient and 1 is raised to the 6th power, 1
is subtracted from the result, and then multiplied by 2.
(9)
<PAGE> 65
PERIOD TO DATE TOTAL RETURN:
The tables below show total returns for the period to date (January 1, 2000
to February 11, 2000) which have not been annualized and which assume,
respectively, a $1,000 and a $25,000 payment made at the beginning of the period
and reflecting the same assumptions and results as the table appearing on page
5, except, in the case of the column headed "Contract Continues In Force", no
contingent deferred sales (surrender) charge or annual contract charge has been
deducted:
MONY AMERICA VARIABLE ACCOUNT A
PERIOD TO DATE TOTAL RETURN
JANUARY 1 TO FEBRUARY 11, 2000
(ASSUMING $1,000 PAYMENT AT BEGINNING OF PERIOD AND CONTRACT CONTINUES IN FORCE)
<TABLE>
<CAPTION>
NO SURRENDER
SURRENDER AT CONTRACT CONTINUES
SUBACCOUNT END OF PERIOD IN FORCE
---------- ------------- ------------------
<S> <C> <C>
Enterprise Equity........................................ -5.54% 1.54%
Enterprise Small Company Value........................... -7.89% -0.91%
Enterprise Managed....................................... -14.44% -6.29%
Enterprise International Growth.......................... -8.72% -1.97%
Enterprise High Yield.................................... -7.68% -0.91%
MONY Government Securities............................... -7.40% -0.51%
MONY Intermediate Bond................................... -7.25% -0.51%
MONY Long Term Bond...................................... -5.60% 1.16%
</TABLE>
MONY AMERICA VARIABLE ACCOUNT A
YEAR TO DATE TOTAL RETURN
JANUARY 1 TO FEBRUARY 11, 2000
(ASSUMING $25,000 PAYMENT AT BEGINNING OF PERIOD)
<TABLE>
<CAPTION>
SURRENDER AT CONTRACT CONTINUES
SUBACCOUNT END OF PERIOD IN FORCE
---------- ------------- ------------------
<S> <C> <C>
Equity...................................................
Managed..................................................
Small Company Value......................................
International Growth.....................................
High Yield Bond..........................................
Intermediate Term Bond...................................
Long Term Bond...........................................
Government Securities....................................
</TABLE>
OTHER NON-STANDARDIZED PERFORMANCE DATA:
From time to time, average annual total return or other performance data
may also be advertised in non-standardized formats. Non-standard performance
data will be accompanied by standard performance data, and the period covered or
other non-standard features will be disclosed.
FINANCIAL STATEMENTS
The financial statements of the Company should be distinguished from the
financial statements of the Variable Account. The financial statements of the
Company should be considered only as bearing upon the ability of the Company to
meet its obligations under the Contracts and should not be considered as bearing
on the investment performance of the assets held in the Variable Account.
(10)
<PAGE> 66
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
With respect to MONY America Variable Account A
Report of Independent Accountants......................... F-2
Statements of assets and liabilities as of December 31,
1999................................................... F-3
Statements of operations for the year ended December 31,
1999................................................... F-6
Statements of changes in net assets for the years ended
December 31, 1999 and 1998............................. F-9
Notes to financial statements............................. F-13
With respect to MONY Life Insurance Company of America:
Report of Independent Accountants......................... F-
Balance sheets as of December 31, 1999 and 1998........... F-
Statements of income and comprehensive income for the
years ended December 31, 1999, 1998 and 1997........... F-
Statements of changes in shareholder's equity for the
years ended December 31, 1999, 1998 and 1997........... F-
Statements of cash flows for the years ended December 31,
1999, 1998 and 1997.................................... F-
Notes to financial statements............................. F-
</TABLE>
F-1
<PAGE> 67
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account A -- MONYMaster and
ValueMaster:
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the MONYMaster's and
ValueMaster's Subaccounts of MONY America Variable Account A at December 31,
1999, the results of each of their operations for the year then ended and the
changes in each of their net assets for each of the two years in the period then
ended, in conformity with accounting principles generally accepted in the United
States. These financial statements are the responsibility of the MONY Life
Insurance Company of America'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, 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 fund transfer agents, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 11, 2000
F-2
<PAGE> 68
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONYMASTER VALUEMASTER
----------------------------------------------------------------------------------------------- -----------
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in
respective Funds... 25,357 44,463 3,205,968 4,418,761 64,796 188,185,762 2,947,331 1,366,609
========== ========== =========== =========== ========== ============ =========== ==========
Investments at
cost............... $ 973,007 $1,057,483 $35,453,853 $60,699,894 $1,208,296 $188,185,762 $32,639,962 $1,366,609
========== ========== =========== =========== ========== ============ =========== ==========
Investments in
respective Funds,
at net asset
value.............. $1,233,638 $1,041,319 $34,688,573 $54,439,134 $1,485,782 $188,185,762 $32,155,384 $1,366,609
Amount due from MONY
America............ 0 0 1,678 1,580 0 635 74 0
Amount due from
respective Funds... 7 0 5,997 9,201 23 140,996 54 0
---------- ---------- ----------- ----------- ---------- ------------ ----------- ----------
Total assets......... 1,233,645 1,041,319 34,696,248 54,449,915 1,485,805 188,327,393 32,155,512 1,366,609
---------- ---------- ----------- ----------- ---------- ------------ ----------- ----------
LIABILITIES
Amount due to MONY
America............ 668 561 25,298 39,550 819 244,590 17,825 748
Amount due to
respective Funds... 0 0 1,678 1,580 0 635 74 0
---------- ---------- ----------- ----------- ---------- ------------ ----------- ----------
Total liabilities.... 668 561 26,976 41,130 819 245,225 17,899 748
---------- ---------- ----------- ----------- ---------- ------------ ----------- ----------
Net assets........... $1,232,977 $1,040,758 $34,669,272 $54,408,785 $1,484,986 $188,082,168 $32,137,613 $1,365,861
========== ========== =========== =========== ========== ============ =========== ==========
Net assets consist
of:
Contractholders'
net payments..... $(742,208) $(568,648) $25,054,724 $38,405,868 $ (936,075) $155,852,231 $29,298,759 $ 880,402
Undistributed net
investment
income........... 559,894 896,287 9,131,160 17,725,913 1,230,313 32,229,937 1,857,971 485,459
Accumulated net
realized gain on
investments...... 1,154,660 729,283 1,248,668 4,537,764 913,262 0 1,465,461 0
Net unrealized
appreciation
(depreciation) of
investments...... 260,631 (16,164) (765,280) (6,260,760) 277,486 0 (484,578) 0
---------- ---------- ----------- ----------- ---------- ------------ ----------- ----------
Net assets........... $1,232,977 $1,040,758 $34,669,272 $54,408,785 $1,484,986 $188,082,168 $32,137,613 $1,365,861
========== ========== =========== =========== ========== ============ =========== ==========
Number of units
outstanding*....... 18,277 22,870 1,787,011 2,404,096 31,223 11,514,180 2,571,506 91,553
---------- ---------- ----------- ----------- ---------- ------------ ----------- ----------
Net asset value
per unit
outstanding*....... $ 67.46 $ 45.51 $ 19.40 $ 22.63 $ 47.56 $ 16.33 $ 12.50 $ 14.92
========== ========== =========== =========== ========== ============ =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-3
<PAGE> 69
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
VALUEMASTER
------------------------------------------------------
OCC ACCUMULATION TRUST
------------------------------------------------------
US GOVERNMENT
INCOME EQUITY SMALL CAP MANAGED
SUBACCOUNT** SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds.................... 74,827 44,918 86,888 552,782
========== ========== ========== ============
Investments at cost................................ $ 797,668 $1,542,758 $1,969,943 $ 20,370,585
========== ========== ========== ============
Investments in respective Funds, at net asset
value............................................ $ 748,275 $1,687,103 $1,956,719 $ 24,128,930
---------- ---------- ---------- ------------
Total assets............................. 748,275 1,687,103 1,956,719 24,128,930
---------- ---------- ---------- ------------
LIABILITIES
Amount due to MONY America......................... 411 914 1,031 13,607
---------- ---------- ---------- ------------
Total liabilities........................ 411 914 1,031 13,607
---------- ---------- ---------- ------------
Net Assets......................................... $ 747,864 $1,686,189 $1,955,688 $ 24,115,323
========== ========== ========== ============
Net assets consist of:
Contractholders' net payments.................... $ (660,107) $ (701,032) $ 791,466 $(10,711,206)
Undistributed net investment income.............. 1,384,526 336,754 278,077 3,990,006
Accumulated net realized gain on investments..... 72,838 1,906,122 899,369 27,078,178
Net unrealized appreciation (depreciation) of
investments................................... (49,393) 144,345 (13,224) 3,758,345
---------- ---------- ---------- ------------
Net assets......................................... $ 747,864 $1,686,189 $1,955,688 $ 24,115,323
========== ========== ========== ============
Number of units outstanding*....................... 42,106 36,767 64,751 430,299
---------- ---------- ---------- ------------
Net asset value per unit outstanding*.............. $ 17.76 $ 45.86 $ 30.20 $ 56.04
========== ========== ========== ============
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
** Formerly Bond subaccount
See notes to financial statements.
F-4
<PAGE> 70
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONYMASTER
---------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE** MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- -------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds... 11,089,816 10,102,881 47,693,628 8,974,686 11,423,224
============ ============ ============== =========== ===========
Investments at cost............... $401,527,495 $283,492,902 $1,893,658,624 $63,041,146 $62,107,608
============ ============ ============== =========== ===========
Investments in respective Funds,
at net asset value.............. $428,288,683 $317,735,622 $1,731,278,678 $83,374,829 $57,801,515
Amount due from MONY America...... 11,047 10,248 36,155 6,988 2,047
Amount due from respective
Funds........................... 119,335 69,902 1,022,390 142,666 70,046
------------ ------------ -------------- ----------- -----------
Total assets............ 428,419,065 317,815,772 1,732,337,223 83,524,483 57,873,608
------------ ------------ -------------- ----------- -----------
LIABILITIES
Amount due to MONY America........ 349,370 240,970 1,971,203 185,935 102,344
Amount due to respective Funds.... 11,047 10,248 36,155 6,988 2,047
------------ ------------ -------------- ----------- -----------
Total liabilities....... 360,417 251,218 2,007,358 192,923 104,391
------------ ------------ -------------- ----------- -----------
Net assets........................ $428,058,648 $317,564,554 $1,730,329,865 $83,331,560 $57,769,217
============ ============ ============== =========== ===========
Net assets consist of:
Contractholders' net payments... $176,294,785 $108,608,588 $ 398,738,885 $44,178,413 $46,128,214
Undistributed net investment
income....................... 70,084,287 76,001,551 635,530,723 5,412,573 18,488,495
Accumulated net realized gain
(loss) on investments........ 154,918,388 98,711,695 858,440,203 13,406,891 (2,541,399)
Net unrealized appreciation
(depreciation) of
investments.................. 26,761,188 34,242,720 (162,379,946) 20,333,683 (4,306,093)
------------ ------------ -------------- ----------- -----------
Net assets........................ $428,058,648 $317,564,554 $1,730,329,865 $83,331,560 $57,769,217
============ ============ ============== =========== ===========
Number of units outstanding*...... 8,378,174 6,338,206 28,518,300 4,031,563 3,816,497
------------ ------------ -------------- ----------- -----------
Net asset value per unit
outstanding*.................... $ 51.09 $ 50.10 $ 60.67 $ 20.67 $ 15.14
============ ============ ============== =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
** Formerly Small Cap Subaccount.
See notes to financial statements.
F-5
<PAGE> 71
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONYMASTER
---------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.............. $124,351 $ 205,455 $ 2,160,506 $ 5,049,948 $197,329 $10,654,175
Mortality and expense risk
charges.................... (18,110) (14,933) (535,651) (982,859) (20,203) (2,745,193)
-------- --------- ----------- ------------ -------- -----------
Net investment income........ 106,241 190,522 1,624,855 4,067,089 177,126 7,908,982
-------- --------- ----------- ------------ -------- -----------
Realized and unrealized gain
(loss) on investments:
Net realized gain on
investments.............. 547,933 201,622 520,414 270,896 238,935 0
Net change in unrealized
appreciation
(depreciation) of
investments.............. (220,215) (309,904) (2,618,836) (12,003,509) (18,426) 0
-------- --------- ----------- ------------ -------- -----------
Net realized and unrealized
gain (loss) on
investments................ 327,718 (108,282) (2,098,422) (11,732,613) 220,509 0
-------- --------- ----------- ------------ -------- -----------
Net increase (decrease) in
net assets resulting from
operations................. $433,959 $ 82,240 $ (473,567) $ (7,665,524) $397,635 $ 7,908,982
======== ========= =========== ============ ======== ===========
<CAPTION>
MONYMASTER VALUEMASTER
----------- -----------
MONY SERIES FUND, INC.
-------------------------
GOVERNMENT MONEY
SECURITIES MARKET
SUBACCOUNT SUBACCOUNT
----------- -----------
<S> <C> <C>
Dividend income.............. $ 1,378,515 $109,700
Mortality and expense risk
charges.................... (522,551) (28,426)
----------- --------
Net investment income........ 855,964 81,274
----------- --------
Realized and unrealized gain
(loss) on investments:
Net realized gain on
investments.............. 413,946 0
Net change in unrealized
appreciation
(depreciation) of
investments.............. (1,567,230) 0
----------- --------
Net realized and unrealized
gain (loss) on
investments................ (1,153,284) 0
----------- --------
Net increase (decrease) in
net assets resulting from
operations................. $ (297,320) $ 81,274
=========== ========
</TABLE>
See notes to financial statements.
F-6
<PAGE> 72
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
VALUEMASTER
-----------------------------------------------------
OCC ACCUMULATION TRUST
-----------------------------------------------------
US GOVERNMENT
INCOME EQUITY SMALL CAP MANAGED
SUBACCOUNT* SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Dividend income....................................... $ 40,938 $138,601 $ 16,419 $ 1,770,170
Mortality and expense risk charges.................... (10,740) (28,829) (30,574) (402,054)
-------- -------- --------- -----------
Net investment income (loss).......................... 30,198 109,772 (14,155) 1,368,116
-------- -------- --------- -----------
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) on investments............. (16,280) 773,134 155,055 7,422,893
Net change in unrealized appreciation (depreciation)
of investments................................... (39,941) (815,026) (244,817) (7,399,886)
-------- -------- --------- -----------
Net realized and unrealized gain (loss) on
investments......................................... (56,221) (41,892) (89,762) 23,007
-------- -------- --------- -----------
Net increase (decrease) in net assets resulting from
operations.......................................... $(26,023) $ 67,880 $(103,917) $ 1,391,123
======== ======== ========= ===========
</TABLE>
- ---------------
* Formerly Bond subaccount
See notes to financial statements.
F-7
<PAGE> 73
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONYMASTER
--------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT * SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Dividend income.................... $ 39,768,599 $23,788,443 $ 342,664,482 $ 2,011,358 $ 7,554,585
Mortality and expense risk
charges.......................... (6,061,633) (4,244,974) (26,357,448) (891,028) (986,199)
------------ ----------- ------------- ----------- -----------
Net investment income.............. 33,706,966 19,543,469 316,307,034 1,120,330 6,568,386
------------ ----------- ------------- ----------- -----------
Realized and unrealized gain (loss)
on investments:
Net realized gain (loss) on
investments................... 39,802,012 30,282,041 172,825,057 5,948,548 (3,941,526)
Net change in unrealized
appreciation (depreciation) of
investments................... (17,505,186) 17,822,716 (339,034,818) 17,836,014 (821,866)
------------ ----------- ------------- ----------- -----------
Net realized and unrealized gain
(loss) on investments............ 22,296,826 48,104,757 (166,209,761) 23,784,562 (4,763,392)
------------ ----------- ------------- ----------- -----------
Net increase in net assets
resulting from operations........ $ 56,003,792 $67,648,226 $ 150,097,273 $24,904,892 $ 1,804,994
============ =========== ============= =========== ===========
</TABLE>
- ---------------
* Formerly Small Cap Subaccount.
See notes to financial statements.
F-8
<PAGE> 74
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYMASTER
-------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------
EQUITY GROWTH EQUITY INCOME
SUBACCOUNT SUBACCOUNT
----------------------- -----------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
From operations:
Net investment income................................ $ 106,241 $ 225,073 $ 190,522 $ 186,231
Net realized gain on investments..................... 547,933 131,932 201,622 154,874
Net change in unrealized appreciation (depreciation)
of investments..................................... (220,215) (34,914) (309,904) (198,816)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets resulting
from operations...................................... 433,959 322,091 82,240 142,289
---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of units.............. 113,679 29,672 23,855 33,985
Net asset value of units redeemed or used to meet
contract obligations............................... (890,715) (276,074) (349,667) (329,978)
---------- ---------- ---------- ----------
Net increase (decrease) from unit transactions......... (777,036) (246,402) (325,812) (295,993)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets.................. (343,077) 75,689 (243,572) (153,704)
Net assets beginning of year........................... 1,576,054 1,500,365 1,284,330 1,438,034
---------- ---------- ---------- ----------
Net assets end of year*................................ $1,232,977 $1,576,054 $1,040,758 $1,284,330
========== ========== ========== ==========
Unit transactions:
Units outstanding beginning of year.................... 31,847 37,580 30,115 37,519
Units issued during the year........................... 1,784 679 425 802
Units redeemed during the year......................... (15,354) (6,412) (7,670) (8,206)
---------- ---------- ---------- ----------
Units outstanding end of year.......................... 18,277 31,847 22,870 30,115
========== ========== ========== ==========
- ---------------
* Includes undistributed net investment income of: $ 559,894 $ 453,653 $ 896,287 $ 705,765
========== ========== ========== ==========
<CAPTION>
MONYMASTER
--------------------------------------------------------
MONY SERIES FUND, INC.
--------------------------------------------------------
INTERMEDIATE TERM BOND LONG TERM BOND
SUBACCOUNT SUBACCOUNT
-------------------------- ---------------------------
1999 1998 1999 1998
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
From operations:
Net investment income................................ $ 1,624,855 $ 1,494,311 $ 4,067,089 $ 2,645,761
Net realized gain on investments..................... 520,414 888,198 270,896 3,237,119
Net change in unrealized appreciation (depreciation)
of investments..................................... (2,618,836) 76,556 (12,003,509) 71,611
------------ ----------- ------------ ------------
Net increase (decrease) in net assets resulting
from operations...................................... (473,567) 2,459,065 (7,665,524) 5,954,491
------------ ----------- ------------ ------------
From unit transactions:
Net proceeds from the issuance of units.............. 6,953,515 20,238,046 13,318,859 60,292,920
Net asset value of units redeemed or used to meet
contract obligations............................... (19,132,505) (11,236,483) (50,488,659) (27,360,952)
------------ ----------- ------------ ------------
Net increase (decrease) from unit transactions......... (12,178,990) 9,001,563 (37,169,800) 32,931,968
------------ ----------- ------------ ------------
Net increase (decrease) in net assets.................. (12,652,557) 11,460,628 (44,835,324) 38,886,459
Net assets beginning of year........................... 47,321,829 35,861,201 99,244,109 60,357,650
------------ ----------- ------------ ------------
Net assets end of year*................................ $ 34,669,272 $47,321,829 $ 54,408,785 $ 99,244,109
============ =========== ============ ============
Unit transactions:
Units outstanding beginning of year.................... 2,414,529 1,941,792 4,000,596 2,645,732
Units issued during the year........................... 357,020 1,055,742 552,831 2,492,768
Units redeemed during the year......................... (984,538) (583,005) (2,149,331) (1,137,904)
------------ ----------- ------------ ------------
Units outstanding end of year.......................... 1,787,011 2,414,529 2,404,096 4,000,596
============ =========== ============ ============
- ---------------
* Includes undistributed net investment income of: $ 9,131,160 $ 7,506,305 $ 17,725,913 $ 13,658,824
============ =========== ============ ============
</TABLE>
See notes to financial statements.
F-9
<PAGE> 75
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYMASTER
----------------------------------------------------------------------
MONY SERIES FUND, INC.
----------------------------------------------------------------------
GOVERNMENT
DIVERSIFIED MONEY MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- ----------------------------- ------------
1999 1998 1999 1998 1999
---------- ---------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income............................ $ 177,126 $ 322,270 $ 7,908,982 $ 8,309,890 $ 855,964
Net realized gain on investments................. 238,935 156,896 0 0 413,946
Net change in unrealized appreciation
(depreciation) of investments.................. (18,426) (192,414) 0 0 (1,567,230)
---------- ---------- ------------- ------------- ------------
Net increase (decrease) in net assets resulting
from operations.................................. 397,635 286,752 7,908,982 8,309,890 (297,320)
---------- ---------- ------------- ------------- ------------
From unit transactions:
Net proceeds from the issuance of units.......... 39,174 71,356 257,074,463 1,105,652,600 13,125,878
Net asset value of units redeemed or used to meet
contract obligations........................... (522,189) (461,042) (364,870,852) (956,073,355) (25,844,182)
---------- ---------- ------------- ------------- ------------
Net increase (decrease) from unit transactions..... (483,015) (389,686) (107,796,389) 149,579,245 (12,718,304)
---------- ---------- ------------- ------------- ------------
Net increase (decrease) in net assets.............. (85,380) (102,934) (99,887,407) 157,889,135 (13,015,624)
Net assets beginning of year....................... 1,570,366 1,673,300 287,969,575 130,080,440 45,153,237
---------- ---------- ------------- ------------- ------------
Net assets end of year*............................ $1,484,986 $1,570,366 $ 188,082,168 $ 287,969,575 $ 32,137,613
========== ========== ============= ============= ============
Unit transactions:
Units outstanding beginning of year................ 42,575 55,440 18,280,159 8,585,010 3,591,602
Units issued during the year....................... 738 2,111 16,060,294 71,354,491 1,047,600
Units redeemed during the year..................... (12,090) (14,976) (22,826,273) (61,659,342) (2,067,696)
---------- ---------- ------------- ------------- ------------
Units outstanding end of year...................... 31,223 42,575 11,514,180 18,280,159 2,571,506
========== ========== ============= ============= ============
- ---------------
* Includes undistributed net investment income of: $1,230,313 $1,053,187 $ 32,229,937 $ 24,320,955 $ 1,857,971
========== ========== ============= ============= ============
<CAPTION>
MONYMASTER VALUEMASTER
----------- -------------------------
MONY SERIES FUND, INC.
---------------------------------------
GOVERNMENT MONEY
SECURITIES MARKET
SUBACCOUNT SUBACCOUNT
----------- -------------------------
1998 1999 1998
----------- ----------- -----------
<S> <C> <C> <C>
From operations:
Net investment income............................ $ 549,166 $ 81,274 $ 77,747
Net realized gain on investments................. 773,944 0 0
Net change in unrealized appreciation
(depreciation) of investments.................. 207,004 0 0
----------- ----------- -----------
Net increase (decrease) in net assets resulting
from operations.................................. 1,530,114 81,274 77,747
----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units.......... 34,260,541 1,362,402 4,927,649
Net asset value of units redeemed or used to meet
contract obligations........................... (11,620,889) (2,037,957) (4,747,240)
----------- ----------- -----------
Net increase (decrease) from unit transactions..... 22,639,652 (675,555) 180,409
----------- ----------- -----------
Net increase (decrease) in net assets.............. 24,169,766 (594,281) 258,156
Net assets beginning of year....................... 20,983,471 1,960,142 1,701,986
----------- ----------- -----------
Net assets end of year*............................ $45,153,237 $ 1,365,861 $ 1,960,142
=========== =========== ===========
Unit transactions:
Units outstanding beginning of year................ 1,761,542 136,239 122,178
Units issued during the year....................... 2,769,576 93,939 347,333
Units redeemed during the year..................... (939,516) (138,625) (333,272)
----------- ----------- -----------
Units outstanding end of year...................... 3,591,602 91,553 136,239
=========== =========== ===========
- ---------------
* Includes undistributed net investment income of: $ 1,002,007 $ 485,459 $ 404,185
=========== =========== ===========
</TABLE>
See notes to financial statements.
F-10
<PAGE> 76
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VALUEMASTER
---------------------------------------------------
OCC ACCUMULATION TRUST
---------------------------------------------------
US GOVERNMENT INCOME
SUBACCOUNT** EQUITY SUBACCOUNT
------------------------ ------------------------
1999 1998 1999 1998
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)........................ $ 30,198 $ 55,137 $ 109,772 $ 130,385
Net realized gain (loss) on investments............. (16,280) 60,866 773,134 527,393
Net change in unrealized appreciation (depreciation)
of investments.................................... (39,941) (42,129) (815,026) (370,869)
---------- ----------- ---------- -----------
Net increase (decrease) in net assets resulting from
operations.......................................... (26,023) 73,874 67,880 286,909
---------- ----------- ---------- -----------
From unit transactions:
Net proceeds from the issuance of units............. 199,355 1,261,119 606,029 181,362
Net asset value of units redeemed or used to meet
contract obligations.............................. (401,861) (1,645,115) (1,481,168) (1,024,747)
---------- ----------- ---------- -----------
Net decrease from unit transactions................... (202,506) (383,996) (875,139) (843,385)
---------- ----------- ---------- -----------
Net decrease in net assets............................ (228,529) (310,122) (807,259) (556,476)
Net assets beginning of year.......................... 976,393 1,286,515 2,493,448 3,049,924
---------- ----------- ---------- -----------
Net assets end of year*............................... $ 747,864 $ 976,393 $1,686,189 $ 2,493,448
========== =========== ========== ===========
Unit transactions:
Units outstanding beginning of year................... 53,421 75,192 55,058 74,411
Units issued during the year.......................... 11,079 70,341 13,204 3,895
Units redeemed during the year........................ (22,394) (92,112) (31,495) (23,248)
---------- ----------- ---------- -----------
Units outstanding end of year......................... 42,106 53,421 36,767 55,058
========== =========== ========== ===========
- ---------------
* Includes undistributed net investment income of: $1,384,526 $ 408,838 $ 336,754 $ 226,982
========== =========== ========== ===========
** Formerly Bond subaccount
<CAPTION>
VALUEMASTER
-------------------------------------------------------
OCC ACCUMULATION TRUST
-------------------------------------------------------
SMALL CAP SUBACCOUNT MANAGED SUBACCOUNT
------------------------- ---------------------------
1999 1998 1999 1998
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)........................ $ (14,155) $ 120,856 $ 1,368,116 $ 1,220,397
Net realized gain (loss) on investments............. 155,055 460,748 7,422,893 8,304,096
Net change in unrealized appreciation (depreciation)
of investments.................................... (244,817) (935,652) (7,399,886) (6,813,165)
----------- ----------- ------------ ------------
Net increase (decrease) in net assets resulting from
operations.......................................... (103,917) (354,048) 1,391,123 2,711,328
----------- ----------- ------------ ------------
From unit transactions:
Net proceeds from the issuance of units............. 105,807 644,248 416,811 2,807,780
Net asset value of units redeemed or used to meet
contract obligations.............................. (792,055) (1,633,006) (14,753,151) (16,067,125)
----------- ----------- ------------ ------------
Net decrease from unit transactions................... (686,248) (988,758) (14,336,340) (13,259,345)
----------- ----------- ------------ ------------
Net decrease in net assets............................ (790,165) (1,342,806) (12,945,217) (10,548,017)
Net assets beginning of year.......................... 2,745,853 4,088,659 37,060,540 47,608,557
----------- ----------- ------------ ------------
Net assets end of year*............................... $ 1,955,688 $ 2,745,853 $ 24,115,323 $ 37,060,540
=========== =========== ============ ============
Unit transactions:
Units outstanding beginning of year................... 88,120 117,879 685,762 932,054
Units issued during the year.......................... 3,562 18,913 7,816 54,133
Units redeemed during the year........................ (26,931) (48,672) (263,279) (300,425)
----------- ----------- ------------ ------------
Units outstanding end of year......................... 64,751 88,120 430,299 685,762
=========== =========== ============ ============
- ---------------
* Includes undistributed net investment income of: $ 278,077 $ 292,232 $ 3,990,006 $ 2,621,890
=========== =========== ============ ============
** Formerly Bond subaccount
</TABLE>
See notes to financial statements.
F-11
<PAGE> 77
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYMASTER
-------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------
SMALL COMPANY VALUE
EQUITY SUBACCOUNT SUBACCOUNT**
----------------------------- -----------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
From operations:
Net investment income....................... $ 33,706,966 $ 17,035,596 $ 19,543,469 $ 17,214,203
Net realized gain (loss) on investments..... 39,802,012 60,301,202 30,282,041 49,018,291
Net change in unrealized appreciation
(depreciation) of investments............. (17,505,186) (43,212,812) 17,822,716 (45,383,177)
------------- ------------- ------------- -------------
Net increase in net assets resulting from
operations.................................. 56,003,792 34,123,986 67,648,226 20,849,317
------------- ------------- ------------- -------------
From unit transactions:
Net proceeds from the issuance of units..... 84,192,658 208,152,834 73,161,442 143,928,984
Net asset value of units redeemed or used to
meet contract obligations................. (232,468,208) (163,245,612) (166,467,855) (138,895,329)
------------- ------------- ------------- -------------
Net increase (decrease) from unit
transactions................................ (148,275,550) 44,907,222 (93,306,413) 5,033,655
------------- ------------- ------------- -------------
Net increase (decrease) in net assets........ (92,271,758) 79,031,208 (25,658,187) 25,882,972
Net assets beginning of year................. 520,330,406 441,299,198 343,222,741 317,339,769
------------- ------------- ------------- -------------
Net assets end of year*...................... $ 428,058,648 $ 520,330,406 $ 317,564,554 $ 343,222,741
============= ============= ============= =============
Unit transactions:
Units outstanding beginning of year.......... 11,629,793 10,706,757 8,392,405 8,401,211
Units issued during the year................. 1,853,219 4,840,471 1,644,304 3,677,232
Units redeemed during the year............... (5,104,838) (3,917,435) (3,698,503) (3,686,038)
------------- ------------- ------------- -------------
Units outstanding end of year................ 8,378,174 11,629,793 6,338,206 8,392,405
============= ============= ============= =============
- ---------------
* Includes undistributed net investment
income of: $ 70,084,287 $ 36,377,321 $ 76,001,551 $ 56,458,082
** Formerly Small Cap Subaccount
============= ============= ============= =============
<CAPTION>
MONYMASTER
-------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------
INTERNATIONAL GROWTH
MANAGED SUBACCOUNT SUBACCOUNT
------------------------------- ---------------------------
1999 1998 1999 1998
-------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
From operations:
Net investment income....................... $ 316,307,034 $ 155,340,057 $ 1,120,330 $ 2,664,002
Net realized gain (loss) on investments..... 172,825,057 334,350,165 5,948,548 3,212,062
Net change in unrealized appreciation
(depreciation) of investments............. (339,034,818) (358,930,321) 17,836,014 1,983,502
-------------- -------------- ------------ ------------
Net increase in net assets resulting from
operations.................................. 150,097,273 130,759,901 24,904,892 7,859,566
-------------- -------------- ------------ ------------
From unit transactions:
Net proceeds from the issuance of units..... 175,383,802 669,500,974 33,822,209 24,902,914
Net asset value of units redeemed or used to
meet contract obligations................. (932,478,561) (775,855,076) (48,335,830) (24,998,725)
-------------- -------------- ------------ ------------
Net increase (decrease) from unit
transactions................................ (757,094,759) (106,354,102) (14,513,621) (95,811)
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets........ (606,997,486) 24,405,799 10,391,271 7,763,755
Net assets beginning of year................. 2,337,327,351 2,312,921,552 72,940,289 65,176,534
-------------- -------------- ------------ ------------
Net assets end of year*...................... $1,730,329,865 $2,337,327,351 $ 83,331,560 $ 72,940,289
============== ============== ============ ============
Unit transactions:
Units outstanding beginning of year.......... 41,556,499 43,843,754 4,954,694 5,021,078
Units issued during the year................. 3,038,862 12,310,620 2,110,074 1,790,119
Units redeemed during the year............... (16,077,061) (14,597,875) (3,033,205) (1,856,503)
-------------- -------------- ------------ ------------
Units outstanding end of year................ 28,518,300 41,556,499 4,031,563 4,954,694
============== ============== ============ ============
- ---------------
* Includes undistributed net investment
income of: $ 635,530,723 $ 319,223,689 $ 5,412,573 $ 4,292,243
** Formerly Small Cap Subaccount
============== ============== ============ ============
<CAPTION>
MONYMASTER
---------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------
HIGH YIELD BOND
SUBACCOUNT
---------------------------
1999 1998
------------ ------------
<S> <C> <C>
From operations:
Net investment income....................... $ 6,568,386 $ 6,340,249
Net realized gain (loss) on investments..... (3,941,526) 686,650
Net change in unrealized appreciation
(depreciation) of investments............. (821,866) (5,646,150)
------------ ------------
Net increase in net assets resulting from
operations.................................. 1,804,994 1,380,749
------------ ------------
From unit transactions:
Net proceeds from the issuance of units..... 12,468,897 44,173,041
Net asset value of units redeemed or used to
meet contract obligations................. (43,104,802) (17,825,323)
------------ ------------
Net increase (decrease) from unit
transactions................................ (30,635,905) 26,347,718
------------ ------------
Net increase (decrease) in net assets........ (28,830,911) 27,728,467
Net assets beginning of year................. 86,600,128 58,871,661
------------ ------------
Net assets end of year*...................... $ 57,769,217 $ 86,600,128
============ ============
Unit transactions:
Units outstanding beginning of year.......... 5,868,866 4,081,656
Units issued during the year................. 832,940 3,012,678
Units redeemed during the year............... (2,885,309) (1,225,468)
------------ ------------
Units outstanding end of year................ 3,816,497 5,868,866
============ ============
- ---------------
* Includes undistributed net investment
income of: $ 18,488,495 $ 11,920,109
** Formerly Small Cap Subaccount
============ ============
</TABLE>
See notes to financial statements.
F-12
<PAGE> 78
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS:
MONY America Variable Account A (the "Variable Account") is a separate
investment account established on March 27, 1987 by MONY Life Insurance Company
of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used only to support Flexible Payment Variable Annuity policies
(MONYMaster, ValueMaster and MONY Custom Master). These policies are issued by
MONY America, which is a wholly owned subsidiary of MONY Life Insurance Company
("MONY"). For presentation purposes, the information related only to the
MONYMaster and the ValueMaster insurance policies is presented here.
There are currently twelve MONYMaster subaccounts and five ValueMaster
subaccounts within the Variable Account, and each invests only in a
corresponding portfolio of the MONY Series Fund, Inc. (the "Fund"), the
Enterprise Accumulation Trust ("Enterprise") or the OCC Accumulation Trust
("OCC") (collectively, the "Funds"). The subaccounts of MONYMaster commenced
operation from 1988 to 1994 and the subaccounts of ValueMaster commenced
operation in 1994. The Funds are registered under the 1940 Act as open end,
diversified, management investment companies. The Fund and Enterprise are
affiliated with MONY.
On December 21, 1998, the Variable Account effected a substitution by
redeeming shares of the OCC Accumulation Trust Money Market Portfolio and using
the redemption proceeds to purchase shares of the MONY Series Fund, Inc. Money
Market Portfolio. The substitution was effected through a redemption of assets
in kind for the Variable Account and OCC.
A full presentation of the related financial statements and footnotes of
the Fund, Enterprise and OCC are contained on pages hereinafter and should be
read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES:
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
Investments:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of the
Funds. For the money market portfolios, the net asset value is based on the
amortized cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost basis. Dividend income is recorded
on ex-dividend date. Dividend income includes distributions of net investment
income and net realized capital gains received from the respective portfolios of
the Funds. Dividend income received is reinvested in additional shares of the
respective portfolios of the Funds.
F-13
<PAGE> 79
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based upon current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS:
MONY America is the legal owner of the assets of the Variable Account.
Purchase payments received from MONY America by the Variable Account
represent gross purchase payments recorded by MONY America less deductions
retained as compensation for any premium taxes.
A periodic deduction is made from the cash value of the contract for the
Annual Contract Charge. A surrender charge may be imposed by MONY America when a
full or partial surrender is requested by the policyholders. These deductions
are treated by the Variable Account as contractholder redemptions. For the year
ended December 31, 1999, the amounts deducted for all MONYMaster subaccounts was
$2,443,708 and for ValueMaster subaccounts was $14,650.
MONY America receives from the Variable Account, the amounts deducted for
mortality and expense risks at an annual rate of 1.25% of average daily net
assets of each of the respective subaccounts. As investment adviser to the Fund,
it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly owned subsidiary of MONY,
acts as investment adviser to the portfolios of Enterprise and it receives
amounts paid by Enterprise for those services.
4. INVESTMENT TRANSACTIONS:
Cost of shares acquired and proceeds from shares redeemed by each
subaccount during the year ended December 31, 1999 were as follows:
<TABLE>
<CAPTION>
COST OF SHARES PROCEEDS FROM SHARES
MONYMASTER SUBACCOUNTS ACQUIRED REDEEMED
- ---------------------- --------------- --------------------
<S> <C> <C>
MONY Series Fund, Inc.
Equity Growth Portfolio........................... $ 501,047 $ 1,295,532
Equity Income Portfolio........................... 193,682 533,866
Intermediate Term Bond Portfolio.................. 7,395,183 20,090,523
Long Term Bond Portfolio.......................... 16,342,222 54,464,533
Diversified Portfolio............................. 219,459 721,880
Money Market Portfolio............................ 281,074,963 391,512,951
Government Securities Portfolio................... 13,981,294 27,204,378
Enterprise Accumulation Trust
Equity Portfolio.................................. 88,423,312 242,530,461
Small Company Value Portfolio..................... 78,469,353 175,849,672
Managed Portfolio................................. 192,719,069 975,222,463
International Growth Portfolio.................... 34,992,837 50,354,217
High Yield Bond Portfolio......................... 13,519,629 45,109,436
</TABLE>
F-14
<PAGE> 80
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENT TRANSACTIONS: (CONTINUED)
<TABLE>
<CAPTION>
COST OF SHARES PROCEEDS FROM SHARES
VALUEMASTER SUBACCOUNTS ACQUIRED REDEEMED
- ----------------------- --------------- --------------------
<S> <C> <C>
OCC Accumulation Trust
US Government Bond Portfolio...................... $ 199,383 $ 412,218
Equity Portfolio.................................. 606,879 1,509,933
Small Cap Portfolio............................... 109,504 825,295
Managed Portfolio................................. 639,401 15,364,188
MONY Series Fund, Inc.
Money Market Portfolio............................ 1,393,075 2,096,307
</TABLE>
F-15
<PAGE> 81
Registrant hereby incorporates herein by reference the Prospectus and
Statement of Additional Information included in Post-Effective Amendment No. 23
to Registration Statement on Form N-4 (Registration No. 33-20453).
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) The following Financial Statements are included in this Registration
Statement:
(1) With respect to MONY America Variable Account A:
(a) Report of Independent Accountants;
(b) Statements of assets and liabilities as of December 31, 1999;
(c) Statements of operations for the year ended December 31, 1999;
(d) Statements of changes in net assets for the years ended
December 31, 1999 and 1998;
(e) Notes to financial statements.
(2) With respect to MONY Life Insurance Company of America:
(a) Report of Independent Accountants.
(b) Balance sheets as of December 31, 1999 and 1998.
(c) Statements of income and comprehensive income for the years
ended December 31, 1999, 1998, and 1997.
(d) Statements of changes in shareholder's equity for the years
ended December 31, 1999, 1998, and 1997.
(e) Statements of cash flows for the years ended December 31, 1999,
1998, and 1997;
(f) Notes to financial statements.
(b) EXHIBITS
(1) Resolutions of Board of Directors of MONY Life Insurance Company
of America ("Company") authorizing the establishment of MONY America
Variable Account A ("Variable Account"), adopted March 27, 1987, filed as
Exhibit 1 of Registration Statement Nos. 33-14362 and 811-5166, dated May
18, 1987, is incorporated herein by reference.
(2) Not applicable.
(3)(a) Distribution Agreement among MONY Life Insurance Company of
America, MONY Securities Corporation, and MONY Series Fund, Inc., filed as
Exhibit 3(a) of Post-Effective Amendment No. 3, dated February 28, 1991, to
Registration Statement No. 33-20453, is incorporated herein by reference.
(b) Specimen Agreement with Registered Representatives, filed as
Exhibit 3(b) of Pre-Effective Amendment No. 1, dated December 17, 1990, to
Registration Statement Nos. 33-37722 and 811-6216, is incorporated herein
by reference.
(c) Specimen Agreement (Career Contract) between the Company and
selling agents (with Commission Schedule), filed as Exhibit 3(c) of
Pre-Effective Amendment No. 1, dated October 26, 1987, to Registration
Statement Nos. 33-14362 and 811-5166, is incorporated herein by reference.
(4) Proposed forms of Flexible Payment Variable Annuity Contracts,
filed as Exhibit 4 of Registration Statement No. 33-20453, is incorporated
herein by reference.
(5) Proposed form of Application for Flexible Payment Variable Annuity
Contract, filed as Exhibit 4 of Registration Statement No. 33-20453, is
incorporated herein by reference.
(6) Articles of Incorporation and By-Laws of the Company, filed as
Exhibits 6(a) and 6(b), respectively, of Registration Statement No.
33-13183, dated April 6, 1987, is incorporated herein by reference.
(7) Not applicable.
II-1
<PAGE> 82
(8) Not applicable.
(9) Opinion and Consent of Willard G. Eldred, Esq., as to the legality
of the securities being registered, filed as Exhibit 9 of Pre-Effective
Amendment No. 1, dated July 13, 1988, to Registration Statement No.
33-20453, is incorporated herein by reference.
(10) Consent of PricewaterhouseCoopers LLP, Independent Accountants
for MONY America Variable Account A and MONY Life Insurance Company of
America filed herewith as Exhibit 10.
(11) Not applicable.
(12) Not applicable.
(13) Calculation of Performance Data.
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
---- ---------------------------------------------
<S> <C>
Michael I. Roth.............................. Director, Chairman and Chief Executive
Officer
Samuel J. Foti............................... Director, President and Chief Operating
Officer
Richard E. Connors........................... Director
Sam Chiodo................................... Vice President
Larry Cohen.................................. Assistant Treasurer
Richard Daddario............................. Director, Vice President, and Controller
Philip Eisenberg............................. Director, Vice President and Actuary
Margaret G. Gale............................. Director and Vice President
William D. Goodwin........................... Vice President
Stephen J. Hall.............................. Director
Charles P. Leone............................. Director, Vice President and Chief Compliance
Officer
Kenneth M. Levine............................ Director and Executive Vice President
Evelyn L. Peos............................... Vice President
Jacob Poleyeff............................... Vice President -- Agency Operations
Michael Slipowitz............................ Vice President
David S. Waldman............................. Secretary
David V. Weigel.............................. Treasurer
</TABLE>
The business address for all officers and directors of MONY America is 1740
Broadway, New York, New York 10019.
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
No person is directly or indirectly controlled by the Registrant. The
Registrant is a separate account of MONY Life Insurance Company of America, a
wholly-owned subsidiary of MONY Life Insurance Company ("MONY").
The following is a diagram showing all corporations directly or indirectly
controlled by or under common control with MONY Life Insurance Company of
America, showing the state or other sovereign power under the laws of which each
is organized and the percentage ownership of voting securities giving rise to
the control relationship. (See diagram on following page.) Omitted from the
diagram are subsidiaries of MONY that, considered in the aggregate, would not
constitute a "significant subsidiary" (as that term is defined in Rule 8b-2
under Section 8 of the Investment Company Act of 1940) of MONY.
II-2
<PAGE> 83
[MONY ORGANIZATIONAL CHART]
II-3
<PAGE> 84
ITEM 27. NUMBER OF CONTRACT OWNERS:
As of December 31, 1999 MONY America Variable Account A had 82,805 owners
of Contracts.
ITEM 28. INDEMNIFICATION
The By-Laws of MONY Life Insurance Company of America provide, in Article
VI as follows:
SECTION 1. The Corporation shall indemnify any existing or former
director, officer, employee or agent of the Corporation against all expenses
incurred by them and each of them which may arise or be incurred, rendered or
levied in any legal action brought or threatened against any of them for or on
account of any action or omission alleged to have been committed while acting
within the scope of employment as director, officer, employee or agent of the
Corporation, whether or not any action is or has been filed against them and
whether or not any settlement or compromise is approved by a court, all subject
and pursuant to the provisions of the Articles of Incorporation of this
Corporation.
SECTION 2. The indemnification provided in this By-Law shall not be deemed
exclusive of any other rights to which those seeking indemnification may be
entitled under By-Law, agreement, vote of stockholders or disinterested
directors or otherwise, both as to action in his official capacity and as to
action in another capacity while holding office, and shall continue as to a
person who has ceased to be a director, officer, employee or agent and shall
inure to the benefit of the heirs, executors and administrators of such a
person.
Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification for such
liabilities (other than the payment by the Registrant of expense 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 29. PRINCIPAL UNDERWRITERS
(a) MONY Securities Corporation ("MSC") is the principal underwriter of the
Registrant and the Fund. MONY Life Insurance Company ("MONY") also acts as
sub-investment adviser to the Fund through a services agreement.
(b) The names, titles, and principal business addresses of the officers of
MONY and MSC are listed on Schedules A and D of the respective Forms ADV for
MONY (Registration No. 801-13564), as filed with the Commission on December 20,
1977 and as amended, and on Schedule A of Form BD for MSC (Registration No.
8-15289) as filed with the Commission on November 23, 1969 and as amended and on
the individual officer's Form U-4, the texts of which are hereby incorporated by
reference.
II-4
<PAGE> 85
(c) The following table sets forth commissions and other compensation
received by each principal underwriter, directly or indirectly, from MONY
America Variable Account A during fiscal year 1999:
<TABLE>
<CAPTION>
NET
UNDERWRITING
DISCOUNTS AND COMPENSATION BROKERAGE OTHER
NAME OF COMMISSIONS ON REDEMPTION COMMISSIONS COMPENSATION
PRINCIPAL ------------- ------------- ----------- ------------
UNDERWRITER 1999 1999 1999 1999
----------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
MONY Securities Corporation............ 0 0 0 0
</TABLE>
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
Accounts, books, and other documents required to be maintained by Section
31(a) of the Investment Company Act of 1940 and the Rules promulgated thereunder
are maintained by MONY Life Insurance Company of America, in whole or in part,
at its principal offices at 1740 Broadway, New York, New York 10019 or at its
Operations Center at 1 MONY Plaza, Syracuse, New York 13202.
ITEM 31. MANAGEMENT SERVICES
Not applicable.
ITEM 32. UNDERTAKINGS
(a) Registrant hereby undertakes to file post-effective amendments to the
Registration Statement as frequently as is necessary to ensure that the audited
financial statements in the Registration Statement are never more than 16 months
old for so long as payments under the variable annuity contracts may be
accepted;
(b) Registrant hereby undertakes to include either (1) as part of any
application to purchase a contract offered by the prospectus, a space that an
applicant can check to request a Statement of Additional Information, or (2) a
post card or similar written communication affixed to or included in the
prospectus that the applicant can remove to send for a Statement of Additional
Information;
(c) Registrant hereby undertakes 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.
REPRESENTATIONS RELATING TO SECTION 26 OF
THE INVESTMENT COMPANY ACT OF 1940
Registrant and MONY Life Insurance Company of America represent that the
fees and charges deducted under the Contract, in the aggregate, are reasonable
in relation to the services rendered, the expenses expected to be incurred, and
the risks assumed by MONY Life Insurance Company of America.
II-5
<PAGE> 86
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, MONY America Variable Account A,
has duly caused this Post-Effective Amendment No. 24 to this Registration
Statement to be signed on its behalf by the undersigned thereunto duly
authorized, in the City of New York and the State of New York, on this 29th day
of February, 2000 and Registrant hereby certifies that the requirements of Rule
485(a) have been met.
MONY America Variable Account A
(Registrant)
MONY Life Insurance Company of America
(Depositor)
By: /s/ MICHAEL I. ROTH
------------------------------------
Michael I. Roth, Director
Chairman and Chief Executive
Officer
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 24 to this Registration Statement has been signed
below by the following persons in the capacities and on the date indicated.
<TABLE>
<CAPTION>
SIGNATURE DATE
--------- ----
<C> <S> <C>
/s/ MICHAEL I. ROTH February 29, 2000
- --------------------------------------------------------
Michael I. Roth
Director, Chairman of the Board, and Chief
Executive Officer
/s/ SAMUEL J. FOTI February 29, 2000
- --------------------------------------------------------
Samuel J. Foti
Director, President, and Chief
Operating Officer
/s/ RICHARD DADDARIO February 29, 2000
- --------------------------------------------------------
Richard Daddario
Director, Vice President, and Controller
(Principal, Financial, and Accounting Officer)
/s/ CHARLES P. LEONE February 29, 2000
- --------------------------------------------------------
Charles P. Leone
Director, Vice President, and Chief
Compliance Officer
/s/ KENNETH M. LEVINE February 29, 2000
- --------------------------------------------------------
Kenneth M. Levine
Director and Executive Vice President
</TABLE>
II-6
<PAGE> 87
<TABLE>
<CAPTION>
SIGNATURE DATE
--------- ----
<C> <S> <C>
/s/ MARGARET G. GALE February 29, 2000
- --------------------------------------------------------
Margaret G. Gale
Director and Vice President
/s/ RICHARD E. CONNORS February 29, 2000
- --------------------------------------------------------
Richard E. Connors
Director
/s/ STEPHEN J. HALL February 29, 2000
- --------------------------------------------------------
Stephen J. Hall
Director
</TABLE>
II-7
<PAGE> 88
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<C> <S>
Consent of PricewaterhouseCoopers LLP, Independent
(10) Accountants
</TABLE>
<PAGE> 1
EXHIBIT 10
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in this Registration Statement on Form N-4
(Registration No. 33-20453 and Post-Effective Amendment Number 24) of our report
dated February 11, 2000 relating to the financial statements of MONY America
Variable Account A -- MONY Master which appear in such Registration Statement.
We also consent to the reference to us under the headings "Independent
Accountants" in such Registration Statement.
PricewaterhouseCoopers LLP
New York, New York
February 28, 2000
