Prospectus Supplement Oct. 8, 1999*
IDS Life Account SBS
S-6402 N (4/99)
SHAREHOLDER MEETINGS
At the recent regular meetings, shareholders of the American Express(R) Variable
Portfolio Funds (formerly the Retirement Annuity Mutual Funds and referred to in
this supplement as the "Funds," or individually as the "Fund") approved the
following proposals:
1. Change the Fund Name from IDS Life to AXP. Shareholders of all Funds approved
the name change from IDS Life to AXP. AXP is an abbreviated form of the name of
the funds' investment manager, American Express Financial Corporation (AEFC).
The Funds also added the words "Variable Portfolio" to their name. For example,
IDS Life Capital Resource Fund changed to AXP Variable Portfolio - Capital
Resource Fund. In addition, some Funds changed their names to reflect
similarities with the retail funds with the same investment objectives, as shown
in the following table.
<TABLE>
<CAPTION>
Fund Names
- ------------------------------------------------------- -----------------------------------------------------
Current Name Proposed Name
- ------------------------------------------------------- -----------------------------------------------------
<S> <C>
- ------------------------------------------------------- -----------------------------------------------------
IDS Life Investment Series, Inc. AXPsm Variable Portfolio - Investment Series, Inc.
-IDS Life Aggressive Growth Fund -AXPsm Variable Portfolio - Strategy Aggressive
Fund
-IDS Life Capital Resource Fund -AXPsm Variable Portfolio - Capital Resource
Fund
-IDS Life Growth Dimensions Fund -AXPsm Variable Portfolio - New Dimensions Fund
-AXPsm Variable Portfolio - International Fund
-IDS Life International Equity Fund
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
IDS Life Managed Fund, Inc. AXPsm Variable Portfolio - Managed Series, Inc.
-IDS Life Managed Fund -AXPsm Variable Portfolio - Managed Fund
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
IDS Life Moneyshare Fund, Inc. AXPsm Variable Portfolio - Money Market Series, Inc.
-AXPsm Variable Portfolio - Cash Management Fund
-IDS Life Moneyshare Fund
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
IDS Life Special Income Fund, Inc. AXPsm Variable Portfolio - Income Series, Inc.
-IDS Life Global Yield Fund -AXPsm Variable Portfolio - Global Bond Fund
-IDS Life Income Advantage Fund -AXPsm Variable Portfolio - Extra Income Fund
-IDS Life Special Income Fund -AXPsm Variable Portfolio - Bond Fund
- ------------------------------------------------------- -----------------------------------------------------
</TABLE>
Where the Fund has changed its name, the Fund will have certain characteristics
of the retail fund. After a transition period, which will vary by Fund, the Fund
will have substantially the same investment policies, goals and objectives as
the retail fund. In addition, the Fund will be managed by the same portfolio
manager and will have substantially similar strategies, techniques and
characteristics as the retail fund. However, the Fund is not the same as the
retail fund. The Fund will have its own portfolio holdings and its own fees and
operating expenses. Therefore, the performance of the Fund will likely greater
or less than the performance of the retail fund.
2. New Distribution Plan. Fund shareholders approved a new distribution plan
(also known as a 12b-1 plan) of 0.125% of average daily net assets that
will provide additional services and education. The Board of Directors of
the Fund approved this 12b-1 plan. It will be implemented on September 21,
1999. The following tables reflect this new 12b-1 fee and replaces the
tables in your prospectus for the IDS Life funds:
<PAGE>
Annual operating expenses of the funds
(as a percentage of average daily net assets):
- ------------ ------- ---------- ----------
AXP AXP VP AXP VP
VP Capital Managed
Bond Resource
- ------------ ------- ---------- ----------
- ------------ ------- ---------- ----------
Management .60% .59% .59%
fees
- ------------ ------- ---------- ----------
- ------------ ------- ---------- ----------
12b-1 fees .13% .13% .13%
- ------------ ------- ---------- ----------
- ------------ ------- ---------- ----------
Other .07% .07% .04%
expenses
- ------------ ------- ---------- ----------
- ------------ ------- ---------- ----------
Total1 .80% .79% .76%
- ------------ ------- ---------- ----------
1Annualized operating expenses of the underlying mutual funds at Dec. 31, 1998
Example:*
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return and full surrender at the end of each time period.
- ------------ --------- ---------- -----------
AXP VP AXP VP AXP VP
Bond Capital Managed
Resource
- ------------ --------- ---------- -----------
- ------------ --------- ---------- -----------
1 Year $83.99 $83.88 $83.58
- ------------ --------- ---------- -----------
- ------------ --------- ---------- -----------
3 Years $113.84 $113.54 $112.61
- ------------ --------- ---------- -----------
- ------------ --------- ---------- -----------
5 Years $146.33 $145.82 $144.27
- ------------ --------- ---------- -----------
- ------------ --------- ---------- -----------
10 Years $269.97 $268.94 $265.85
- ------------ --------- ---------- -----------
You would pay the following expenses on the same investment assuming no
surrender or selection of an annuity payout plan at the end of each time period:
- ------------ --------- ---------- -----------
AXP VP AXP VP AXP VP
Bond Capital Managed
Resource
- ------------ --------- ---------- -----------
- ------------ --------- ---------- -----------
1 Year $23.99 $23.88 $23.58
- ------------ --------- ---------- -----------
- ------------ --------- ---------- -----------
3 Years $73.84 $73.54 $72.61
- ------------ --------- ---------- -----------
- ------------ --------- ---------- -----------
5 Years $126.33 $125.82 $124.27
- ------------ --------- ---------- -----------
- ------------ --------- ---------- -----------
10 Years $269.97 $268.94 $265.85
- ------------ --------- ---------- -----------
*In this example, the $30 contract administrative charge is approximated as a
0.045% charge based on our average contract size. Premium taxes imposed by some
state and local governments are not reflected in this table.
You should not consider this example as a representation of past or future
expenses. Actual expenses may be more or less than those shown.
S-6402-31 A (10/99)
*Destroy - next prospectus update
