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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
Pre-Effective Amendment No.
Post-Effective Amendment No. 4 (File No. 33-45776)
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940 X
Amendment No. 5 (File No. 811-6560)
IDS LIFE OF NEW YORK ACCOUNT SBS
(formerly IDS Life of New York Account SLB)
(Exact Name of Registrant)
IDS Life Insurance Company of New York
(Name of Depositor)
20 Madison Avenue Extension, Albany, New York 12203
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-3678
Mary Ellyn Minenko, IDS Tower 10, Minneapolis, MN 55440-0010
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check
appropriate space)
immediately upon filing pursuant to paragraph (b) of Rule 486
X on April 29, 1994 pursuant to paragraph (b) of Rule 486
60 days after filing pursuant to paragraph (a) of Rule 486
on (date) pursuant to paragraph (a) of Rule 486
The Registrant has registered an indefinite number or amount of
securities under The Securities Act of 1933 pursuant to Section
24-f of the Investment Company Act of 1940. Registrant's Rule
24f-2 Notice for its most recent fiscal year was filed on or about
February 25, 1994.
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CROSS REFERENCE SHEET
Cross reference sheet showing location in the prospectus of the
information called for by the items enumerated in Part A and B of
Form N-4.
Negative answers omitted from prospectus are so indicated.
<TABLE><CAPTION>
PART A PART B
Page Number(s) in
Page Number(s) Statement of
Item No. in Prospectus Item No. Additional Information
<S> <C> <C> <C>
1 3 15 39
2 4-5 16 40
3(a) 10-11 17(a) NA
(b) 5-11 (b) NA
(c) 5*,15*
4(a) 12
(b) 13-14 18(a) NA
(c) 13-14 (b) NA
(c) 44
5(a) 3,5,15 (d) NA
(b) 5,6,15-16 (e) NA
(c) 17-19 (f) NA
(d) 3,19
(e) 10,35 19(a) 5*,15*
(f) NA (b) 23-25*
6(a) 7-8,10-11,22-25 20(a) NA
(b) 5,23-25 (b) NA
(c) 25 (c) 44
(d) NA (d) NA
(e) 19
(f) NA 21(a) 41
(b) 41-42
7(a) 4,5-5,19-20
(b) 5,7,15-17,21-22 22 NA
(c) 16
(d) 3 23(a) 45-55
(b) 56-71
8(a) 9,30
(b) 5,20
(c) 30-31
(d) 9,30
(e) 31
(f) NA
9(a) 8,28-29
(b) 8,28-29
10(a) 6,19-21,29-30,34-35
(b) 29-30, 34-35
(c) 34-35
(d) 15
11(a) 8,25-28
(b) NA
(c) 27-28
(d) NA
(e) 15
12(a) 9, 32-34
(b) 6
(c) NA
13 NA
14 38
*Designates page number in the prospectus, which is hereby
incorporated by reference in this Statement of Additional
Information./TABLE
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PAGE 3
Symphony Annuity
Prospectus/April 29, 1994
This prospectus describes interests in a master group flexible
premium deferred annuity (Annuity) and related certificates
(Certificates) offered by IDS Life Insurance Company of New York
(IDS Life of New York). Individuals eligible to participate in the
Annuity include members of the general public. Participation in
the Annuity will be accounted for separately by the issuance of a
Certificate showing your interest in the Annuity. The Annuity is a
deferred group annuity in which purchase payments are accumulated
on a fixed and/or variable basis and which pays retirement benefits
to the Certificate owner. The Annuity and related Certificates are
available for qualified and non-qualified retirement plans.
IDS Life of New York Account SBS
Group Flexible Premium Deferred Combination Fixed and Variable
Annuity
Sold by:
IDS Life Insurance Company of New York
20 Madison Avenue Extension
P.O. Box 5144
Albany, NY 12203
Telephone: 800-724-0705
THIS PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED OR PRECEDED BY THE
PROSPECTUS OF SMITH BARNEY SHEARSON SERIES FUND (THE FUND). BOTH
PROSPECTUSES SHOULD BE RETAINED FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
IDS LIFE OF NEW YORK IS NOT A BANK, AND THE SECURITIES IT OFFERS
ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY
ANY BANK NOR ARE THEY INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
A Statement of Additional Information (SAI) dated April 29, 1994,
as amended and supplemented from time to time and incorporated
herein by reference, has been filed with the Securities and
Exchange Commission (SEC) and is available without charge by
contacting IDS Life of New York at the telephone number or address
shown above.
The Table of Contents of the SAI appears on page 24 of this
prospectus.
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PAGE 4
Definitions
Some terms used in this prospectus:
Accumulation Unit -- A measure of the value of your investment in
each of the subaccounts. Prior to the retirement date, these units
are used to calculate the value of your Certificate.
Annuitant -- The person on whose life annuity payments depend.
Calculation of annuity retirement payments depends on the
annuitant's age.
Certificate Value -- The total value of your Certificate before any
applicable surrender charge and any certificate charge have been
deducted.
Certificate Year -- A period of 12 months, starting on the
effective date of your Certificate and on each anniversary of the
effective date.
Fixed Account -- An additional account into which you may choose to
allocate purchase payments and which is included in your
certificate value. Purchase payments allocated to the Fixed
Account will earn interest at a rate guaranteed by IDS Life of New
York which will change from time to time.
Owner (You, Your) -- The person or party owning the Certificate.
Payment Year -- Each certificate year in which you make a purchase
payment and each succeeding year measured from the end of the
certificate year during which you made such a payment. For
example, if you make an initial purchase payment of $15,000 and
then make a subsequent purchase payment of $10,000 during the
fourth certificate year, the sixth certificate year will be the
sixth payment year with respect to your initial purchase payment
and the third payment year with respect to your subsequent purchase
payment.
Portfolios -- The Money Market Portfolio, Intermediate High Grade
Portfolio, Diversified Strategic Income Portfolio, Equity Income
Portfolio, Equity Index Portfolio, Growth & Income Portfolio,
Appreciation Portfolio, Total Return Portfolio, International
Equity Portfolio and Emerging Growth Portfolio.
You may choose to allocate your purchase payments to one or more of
the subaccounts investing in shares of one of these Portfolios,
each of which is a series of an open-end investment company
registered under the Investment Company Act of 1940, as amended
(1940 Act).
Purchase Payments -- Payments made to IDS Life of New York for
purchase of a Certificate.
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PAGE 5
Retirement Date -- The date on which retirement payments begin.
Surrender Charge -- A deferred sales charge that may be applied if
you surrender your Certificate.
Surrender Value -- The total value of your Certificate after any
applicable surrender charge and any certificate charge have been
deducted.
Valuation Date -- Any normal business day, Monday through Friday,
except for the following holidays: New Year's Day, Presidents'
Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day.
Variable Account -- IDS Life of New York Account SBS, a separate
account of IDS Life of New York. Pursuant to the laws of the state
of New York, assets attributable to the Variable Account are held
by IDS Life of New York in one or more subaccounts. Each
subaccount invests in a corresponding Portfolio of the Fund. The
New York Money Market subaccount invests in shares of the Money
Market Portfolio; the New York Intermediate High Grade subaccount
invests in shares of the Intermediate High Grade Portfolio; the New
York Diversified Strategic Income subaccount invests in shares of
the Diversified Strategic Income Portfolio; the New York Equity
Income subaccount invests in shares of the Equity Income Portfolio;
the New York Equity Index subaccount invests in shares of the
Equity Index Portfolio; the New York Growth & Income subaccount
invests in shares of the Growth & Income Portfolio; the New York
Appreciation subaccount invests in shares of the Appreciation
Portfolio; the New York Total Return subaccount invests in shares
of the Total Return Portfolio; the New York International Equity
subaccount invests in shares of the International Equity Portfolio;
and the New York Emerging Growth subaccount invests in shares of
the Emerging Growth Portfolio.
Summary of Contents
About the Annuity
Purpose of the Annuity -- The Annuity allows you to invest in any
or all of the ten subaccounts of the Variable Account as well as in
the Fixed Account. Retirement payments are paid on a fixed basis
(page 9).
An Annuity or Certificate may be returned within 20 days after its
delivery for a full refund of the purchase payment (page 9).
Who Issues the Annuity -- IDS Life of New York, a subsidiary of IDS
Life Insurance Company (IDS Life), issues the Annuity (page 9).
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About the Variable Account and the Portfolios
Subaccounts Available for Investment -- There are ten separate
subaccounts of the Variable Account available for investment in
addition to the Fixed Account (page 10).
The Variable Account is registered as a single unit investment
trust under the 1940 Act (page 10).
Investment Goals and Policies of the Portfolios -- Each Portfolio
has a different investment goal. The Money Market Portfolio
invests in high quality short-term money market instruments. The
Intermediate High Grade Portfolio invests in high-quality
intermediate-term U.S. government securities and corporate bonds of
U.S. issuers. The Diversified Strategic Income Portfolio invests
primarily in three types of fixed-income securities -- U.S.
government and mortgage securities, foreign government bonds and
corporate bonds rated below investment grade. The Equity Income
Portfolio invests primarily in dividend-paying common stocks,
concentrating in securities of companies in the utility industry.
The Equity Index Portfolio invests in the common stocks of the
companies represented in Standard & Poor's 500 Composite Stock
Price Index (S&P 500). The Growth & Income Portfolio invests in
dividend-paying equity securities meeting certain specified
investment criteria. The Appreciation Portfolio invests primarily
in equity securities. The Total Return Portfolio invests primarily
in a diversified portfolio of dividend-paying common stocks. The
International Equity Portfolio invests at least 65 percent of its
assets in a diversified portfolio of equity securities of
established non-U.S. issuers. The Emerging Growth Portfolio
invests at least 65 percent of its total assets in common stocks of
small- and medium-sized companies, both domestic and foreign, in
the early stages of their life cycle (page 10).
Using the Annuity and Certificates
Buying the Certificate -- You may obtain an application for a
Certificate from your Smith Barney Shearson Financial Consultant.
Applications are subject to acceptance at IDS Life of New York's
home office in Albany (page 12).
IRAs and Other Qualified Plans -- Certificates may be issued in
connection with IRAs, Tax-sheltered Annuities (TSAs) under 403(b)
plans, 401(k) plans and other qualified plans as well as in
connection with non-qualified retirement plans (page 12).
Purchase Payments -- You must make an initial lump sum purchase
payment for the Certificate and you may make additional purchase
payments. The initial purchase payment must be at least $5,000 for
non-qualified Certificates and at least $500 for qualified
Certificates. After making the initial purchase payment, you may
make additional payments of at least $500 for non-qualified <PAGE>
PAGE 7
Certificates and at least $50 for qualified Certificates.
Additional purchase payments can be mailed directly to IDS Life of
New York. The maximum total purchase payments for your Certificate
is $1,000,000. IDS Life of New York reserves the right to increase
this maximum amount on a uniform basis for all Certificate owners
in a class (page 13).
Your purchase payments will be allocated to the Fixed Account
and/or to the subaccount(s) you choose. For non-qualified
Certificates, the minimum value of your investment in a subaccount
or in the Fixed Account is $500. This $500 minimum value does not
apply to qualified Certificates (page 13).
Transferring Your Money Between Accounts -- Until the retirement
date, you can give us written or telephone instructions to
redistribute your investment among the ten subaccounts of the
Variable Account. There are some restrictions on transferring to
or from the Fixed Account. Transfers must be for at least $500 or,
if less, your entire balance in the subaccount unless you establish
automated transfers of certificate values (page 13).
You may establish automated transfers of certificate values between
the subaccounts and/or the Fixed Account. The minimum automated
transfer amount is $100. This service is subject to restrictions
(page 13).
Certificate Charges and Charges Against the Variable Account -- IDS
Life of New York charges your Certificate $30 per year for
administrative services (page 14). IDS Life of New York charges
the subaccounts of the Variable Account a daily asset charge at an
effective annual rate of 0.25 percent of the daily net asset value
of the subaccounts for administrative and operating expenses
related to the subaccounts (page 14).
IDS Life of New York charges the subaccounts of the Variable
Account a daily mortality and expense risk fee at an effective
annual rate of 1.25 percent of the daily net asset value of the
subaccounts (page 14).
A surrender charge applies if you make a full or partial surrender
of your certificate value during the first six payment years
following a purchase payment. The surrender charge starts at 6
percent of a purchase payment in the first payment year and is
reduced by 1 percent each payment year thereafter. There is no
surrender charge after six payment years. In addition, there is no
surrender charge when certificate values are applied to a
retirement payment plan or for a death benefit. After the first
certificate year, each year you may surrender up to 10 percent of
your certificate value on your prior certificate anniversary
without incurring a surrender charge. There also is no surrender
charge after the first certificate year on certificate earnings, as
defined herein (page 14).
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PAGE 8
The above charges will not increase during the term of the
Certificate. For some sales, certain administrative and surrender
charges may be reduced or eliminated altogether (page 16).
Surrendering Your Certificate -- You may surrender all or part of
your Certificate's value at any time before the retirement date.
You will pay income tax on the taxable part of your surrender and a
10 percent IRS penalty tax may apply. In addition, income tax
withholding at the rate of 20 percent may be imposed on surrenders
from Certificates purchased under certain qualified plans
(page 16).
The Internal Revenue Code of 1986, as amended (the Code) imposes
restrictions on your right to receive a distribution from a TSA
(page 16).
You may establish systematic withdrawals of up to 10 percent of the
certificate value at the beginning of the certificate year.
Systematic withdrawals may be made in one of three ways (page 16).
A partial surrender must be for at least $500. You cannot make a
surrender that would reduce the value of your investment in a
subaccount or in the Fixed Account to less than $500 unless the
value of your investment in a subaccount or in the Fixed Account is
fully withdrawn (page 17).
IDS Life of New York may ask you to return the Certificate if you
make a complete surrender (page 17).
Payment usually will be mailed within seven days after IDS Life of
New York receives your surrender request (page 17).
Payment in Case of Death before Retirement Payments Begin -- Prior
to the retirement date, if you or the annuitant die before the
initial fifth certificate anniversary, the beneficiary will be paid
the greater of: 1) the certificate value; or 2) the amount of
purchase payments (minus any surrenders). On or after the initial
fifth certificate anniversary, and each subsequent fifth
certificate anniversary, the beneficiary will be paid the greater
of: 1) the certificate value; or 2) a minimum guaranteed death
benefit which equals: a) the death benefit calculated as of the
previous fifth certificate anniversary; plus b) any purchase
payments made since the previous fifth certificate anniversary;
minus c) any surrenders since the previous fifth certificate
anniversary (page 17).
In most cases, your spouse may keep the Certificate in force
(page 18).
Beneficiaries will receive payment in a single lump sum or may
request that payments be made under one of the retirement payment
plans IDS Life of New York offers (page 18).
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Settlement Value of Your Certificate -- The amount available on the
retirement date to apply to a retirement payment plan equals the
then current certificate value (page 18).
IDS Life of New York calculates retirement payments due based on
the certificate value on the retirement date. Payments are made on
a fixed basis (page 19).
Payout Options at Retirement -- At retirement, you may choose one
of five payment plans or make other arrangements. If you do not
choose one of the five payment plans, IDS Life of New York will
make payments under Plan B with 120 monthly payments guaranteed
(page 19).
If you purchased your Certificate in connection with a qualified
plan, the payment schedule must meet the requirements of that plan
(page 19).
If monthly payments would be less than $50, IDS Life of New York
reserves the right to reduce the frequency of the retirement
payments or to pay the certificate value in one lump sum payment
(page 20).
If you or the annuitant die after retirement payments begin, any
amount payable will be as provided in the retirement payment plan
in effect (page 20).
Changing Ownership -- You may change ownership of your Certificate
by filing a change of ownership form with IDS Life of New York.
Certain restrictions apply concerning transfer of ownership of a
qualified Certificate, and certain transfers of non-qualified
Certificates may have adverse federal income tax consequences
(page 20).
Federal Tax Information -- According to current interpretations of
federal income tax law, there is no federal income tax on any
increase in the Certificate's value until payments are made.
Consult your tax adviser (page 20).
If you surrender your Certificate or if retirement payments begin,
you will be taxed on the amount that exceeds your investment in the
Certificate. Under certain circumstances, if you surrender all or
part of your Certificate or if retirement payments begin before you
reach age 59-1/2, a 10 percent IRS penalty tax may apply. In
addition, 20 percent income tax withholding may be imposed on
distributions from Certificates purchased to fund qualified plans
including 401(k) plans and TSAs (but not IRAs) (page 21).
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Additional Information about the Annuity and Certificates
Accumulation Units -- When your purchase payments are allocated to
a subaccount, they will be converted into accumulation units. The
accumulation unit value increases or decreases with the performance
of the relevant Portfolio (page 22).
About the Portfolios -- As Certificate owner, you have voting
rights in the Fund and the Portfolios. IDS Life of New York may,
in its discretion, substitute investments in shares of the
Portfolios with shares of other registered investment companies
under certain conditions (page 22).
Information on the Fixed Account of the Annuity -- The Annuity also
allows you to allocate purchase payments to a Fixed Account where
they will earn interest at a rate guaranteed by IDS Life of New
York, which will change from time to time. Subject to
restrictions, you may transfer certificate values from the Fixed
Account to the subaccounts and you may establish automated
transfers of certificate values between the Fixed Account and the
subaccounts. Automated transfers from the Fixed Account may not
exceed an amount that, if continued, would deplete the Fixed
Account within 12 months. This prospectus applies only to the
variable features of the Annuity. Information about the Fixed
Account is found on page 23.
Annuity and Certificate Expenses
The following information is presented to help you understand the
various costs and expenses that you bear directly or indirectly as
the owner of a Certificate. The information shows the expenses of
the Variable Account as well as the expenses of the underlying
Portfolios. For more information about surrender charges, see
page 14.
Annual Certificate Charges
__________________________________________________
Payment
Surrender Charge Year Percentage
(Contingent Deferred 1 6%
Sales Charge as a 2 5
percentage of purchase 3 4
payments) 4 3
5 2
6 1
7 and later 0
Annual Certificate Administrative Charge $30
Annual Variable Account Charges
__________________________________________________________
Variable Account Administrative Charge
(as a percentage of daily net asset value).......... 0.25%
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Mortality and Expense Risk Fee
(as a percentage of daily net asset value).......... 1.25%
__________________________________________________________
Total Variable Account Annual Expenses.............. 1.50%
Annual Operating Expenses of the Portfolios
(as a percentage of average daily net assets)<TABLE><CAPTION>
______________________________________________________________________________________________________________________________
Intermedi- Diversified
Money ate High Strategic Equity Equity Growth Total International Emerging
Market Grade Income Income Index & Income Appreciation Return Equity Growth
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees .50% .60% .65% .65% .60% .65% .75% .75% 1.05% .95%
Other Expenses .25 .25 .35 .35 .40 .35 .25 .25** .25** .25**
______________________________________________________________________________________________________________________________
Total Operating
Expenses of
Portfolios .75 .85 1.00 1.00 1.00 1.00 1.00 1.00 1.30 1.20
Example***
You would pay the following expenses on a $1,000 investment, assuming (1) 5-percent annual return and (2) surrender at the end
of each time period:
1 year $ 83.69 $ 84.71 $ 86.23 $ 86.23 $ 86.23 $ 86.23 $ 86.23 $ 86.23 $ 89.28 $ 88.26
3 years $113.22 $116.35 $121.06 $121.06 $121.06 $121.06 $121.06 $121.06 $130.47 $127.33
5 years $145.76 $151.18 $159.27 $159.27 $159.27 $159.27 $159.27 $159.27 $175.46 $170.07
10 years $271.64 $283.27 $300.73 $300.73 $300.73 $300.73 $300.73 $300.73 $323.52 $323.88
You would pay the following expenses on the same investment assuming no surrender:
1 year $ 23.69 $ 24.71 $ 26.23 $ 26.23 $ 26.23 $ 26.23 $ 26.23 $ 26.23 $ 29.28 $ 28.26
3 years $ 73.22 $ 76.35 $ 81.06 $ 81.06 $ 81.06 $ 81.06 $ 81.06 $ 81.06 $ 90.47 $ 87.33
5 years $125.76 $131.18 $139.27 $139.27 $139.27 $139.27 $139.27 $139.27 $155.46 $150.07
10 years $271.64 $283.27 $300.73 $300.73 $300.73 $300.73 $300.73 $300.73 $323.52 $323.88
This example should not be considered a representation of past or future expenses. Actual expenses may be more or less than
those shown.
**Other expenses are based on estimated amounts expected to be charged to the Portfolio for the current fiscal year.
***In this example, the $30 annual certificate administrative charge is approximated as a .086 percent charge based on the
expected average Certificate size.
</TABLE>
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Condensed Financial Information (Unaudited)
The tables below give per-unit information about the financial
history of each subaccount.
<TABLE><CAPTION> Period from
Mar. 15 to
Dec. 31, 1993
<S> <C>
Subaccount BMO (Investing in shares of Money Market Portfolio)*
Accumulation unit value at beginning of period............................ $1.00
Accumulation unit value at end of period.................................. $1.01
Number of accumulation units outstanding at end of period (000 omitted)... 450
Ratio of operating expense to average net assets.......................... 1.50%
Simple yield.............................................................. 0.70%
Compound yield............................................................ 0.70%
Subaccount BIH (Investing in shares of Intermediate High Grade Portfolio)*
Accumulation unit value at beginning of period............................ $1.00
Accumulation unit value at end of period.................................. $1.03
Number of accumulation units outstanding at end of period (000 omitted)... 733
Ratio of operating expense to average net assets.......................... 1.50%
Subaccount BDS (Investing in shares of Diversified Strategic Income Portfolio)*
Accumulation unit value at beginning of period............................ $1.00
Accumulation unit value at end of period.................................. $1.06
Number of accumulation units outstanding at end of period (000 omitted)... 2,055
Ratio of operating expense to average net assets.......................... 1.50%
Subaccount BEM (Investing in shares of Equity Income Portfolio)*
Accumulation unit value at beginning of period............................ $1.00
Accumulation unit value at end of period.................................. $1.02
Number of accumulation units outstanding at end of period (000 omitted)... 1,561
Ratio of operating expense to average net assets.......................... 1.50%
Subaccount BEX (Investing in shares of Equity Index Portfolio)*
Accumulation unit value at beginning of period............................ $1.00
Accumulation unit value at end of period.................................. $1.03
Number of accumulation units outstanding at end of period (000 omitted)... 1,128
Ratio of operating expense to average net assets.......................... 1.50%
Subaccount BGI (Investing in shares of Growth & Income Portfolio)*
Accumulation unit value at beginning of period............................ $1.00
Accumulation unit value at end of period.................................. $1.05
Number of accumulation units outstanding at end of period (000 omitted)... 1,335
Ratio of operating expense to average net assets.......................... 1.50%
Subaccount BAP (Investing in shares of Appreciation Portfolio)*
Accumulation unit value at beginning of period............................ $1.00
Accumulation unit value at end of period.................................. $1.03
Number of accumulation units outstanding at end of period (000 omitted)... 2,093
Ratio of operating expense to average net assets.......................... 1.50%
Subaccount BTR (Investing in shares of Total Return Portfolio)**
Accumulation unit value at beginning of period............................ $1.00
Accumulation unit value at end of period.................................. $1.03
Number of accumulation units outstanding at end of period (000 omitted)... 211
Ratio of operating expense to average net assets.......................... 1.50%
Subaccount BIE (Investing in shares of International Equity Portfolio)**
Accumulation unit value at beginning of period............................ $1.00
Accumulation unit value at end of period.................................. $1.00
Number of accumulation units outstanding at end of period (000 omitted)... 315
Ratio of operating expense to average net assets.......................... 1.50%
Subaccount BEG (Investing in shares of Emerging Growth Portfolio)**
Accumulation unit value at beginning of period............................ $1.00
Accumulation unit value at end of period.................................. $1.04
Number of accumulation units outstanding at end of period (000 omitted)... 148
Ratio of operating expense to average net assets.......................... 1.50%
*Operations commenced on Mar. 15, 1993.
**Operations commenced on Dec. 2, 1993.
/TABLE
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PAGE 13
Financial Statements
Complete financial statements of the Variable Account (comprising,
respectively, the BMO, BIH, BDS, BEM, BEX, BGI, BAP, BTR, BEG and
BIE subaccounts) including audited individual and combined
statements of net assets as of Dec. 31, 1993, and the related
statements of operations, and changes in net assets for the period
from March 15, 1993 (commencement of operations) to December 31,
1993, except for BTR, BEG and BIE subaccounts which are for the
period December 2, 1993 (commencement of operations) to December
31, 1993, are presented in the SAI dated April 29, 1994. The
audited consolidated financial statements of IDS Life Insurance
Company of New York including audited consolidated balance sheets
as of Dec. 31, 1993, and 1992, and audited related consolidated
statements of income and cash flows for each of the three years in
the period ended Dec. 31, 1993 also are presented in the SAI.
Performance Information
Yield
Performance information for the subaccounts of the Variable
Account, including the simple yield and effective yield for the New
York Money Market subaccount, and yield and average annual total
return for the remaining subaccounts, may appear from time to time
in advertisements or sales literature.
The simple yield of the New York Money Market subaccount is based
on income received by a hypothetical investment over a given
seven-day period (less expenses accrued during the period); and
then "annualized" by assuming that the seven-day yield would be
received for 52 weeks and is stated in terms of an annual
percentage return on the investment. The effective yield of the
New York Money Market subaccount is calculated in a manner similar
to that used to calculate simple yield. However, when annualized,
the income earned by the investment is assumed to be reinvested.
The effective yield will be slightly higher than the simple yield
due to the compounding effect of this assumed reinvestment.
Yield quotations for the remaining subaccounts will be based on all
investment income per accumulation unit earned during a given
30-day period, less expenses accrued during the period (net
investment income). Yield quotations are computed by dividing this
net investment income by the value of an accumulation unit on the
last day of the period.
Total Return
Average annual total return quotations will be expressed in terms
of the average annual compounded rate of return of a hypothetical
investment in a Certificate over a period of one, five and 10 years
(or, if less, up to the life of the subaccount). The total return
quotations will reflect the deduction of all applicable charges
including the certificate administrative charge, the Variable <PAGE>
PAGE 14
Account administrative charge and the mortality and expense risk
fee. Total return quotations will be made that reflect the
deduction of the applicable surrender charge (assuming a surrender
at the end of the illustrated period). A subaccount also may use
aggregate total return figures for various periods, representing
the cumulative change in the value of an investment in the
subaccount for the specific period (again reflecting changes in a
subaccount's accumulation unit value and assuming reinvestment of
investment earnings). Aggregate total returns may be shown by
means of schedules, charts or graphs. Additional total return
quotations may be made that do not reflect a surrender charge
deduction (assuming no surrender at the end of the illustrated
period).
Performance information reflects only the performance of a
hypothetical investment in the subaccount during the particular
time period on which the calculations are based. Performance
information should be considered in light of the investment
objectives and policies, characteristics and quality of the
Portfolio of the Fund in which the subaccount invests, and the
market conditions during the given time period and is not intended
to indicate future performance. Advertised yields and total return
figures for the subaccounts include all charges attributable to the
Certificate which have the effect of decreasing the advertised
performance of a subaccount. For this reason, performance
information for a subaccount should not be compared to that for
mutual funds that sell their shares directly to the public. See
the SAI for a description of the methods used to determine yield
and total return information for the subaccounts.
About the Annuity
Purpose of the Annuity
The goal of the Annuity is to allow you, the Certificate owner, to
build up funds for retirement. You do this by investing in any one
or more of ten subaccounts of the Variable Account or in the Fixed
Account. Each subaccount invests only in shares of a single
Portfolio. You can direct payments to go to anyone, but you will
still be taxed on the income as owner. You can choose from a
variety of retirement payment plans.
The Annuity is a variable annuity. A variable annuity differs from
a fixed annuity in that during the accumulation period, the
certificate value may vary from day to day. You assume the risk of
gain or loss according to the performance of your investment.
There is no guarantee that your Certificate's value at the
retirement date will equal or exceed the total of your purchase
payments. Read this prospectus carefully to decide if a variable
annuity will help meet your retirement goals. You also must read
the accompanying separate prospectus for the Fund describing the
Portfolios to help you decide on the best investments for your
needs. Keep these prospectuses for future reference.
<PAGE>
PAGE 15
An Annuity or Certificate may be returned within 20 days after its
delivery for a full refund of the purchase payment. Return it to
your Smith Barney Shearson Financial Consultant or mail it to IDS
Life of New York's home office at the address on the cover page of
this prospectus. No fees or charges will be deducted.
Who Issues the Annuity
IDS Life Insurance Company of New York issues the Annuity. IDS
Life of New York is a wholly owned subsidiary of IDS Life, which
itself is a wholly owned subsidiary of IDS Financial Corporation
(IDS). IDS is a wholly owned subsidiary of the American Express
Company (American Express). American Express is a financial
services company principally engaged through subsidiaries (in
addition to IDS) in travel related services, international banking
services, financial services and portfolio management advice.
IDS Life of New York is a stock life insurance company organized in
1972 under the laws of the State of New York. Its home office is
at 20 Madison Avenue Extension, Albany, New York and its mailing
address is P.O. Box 5144, Albany, NY 12205. IDS Life of New York
is licensed in New York and North Dakota and it conducts a
conventional life insurance business in the State of New York.
Smith Barney Shearson Inc., a Delaware corporation, is the
principal underwriter of the Variable Account. Its home office is
388 Greenwich Street, New York, New York 10013. Smith Barney
Shearson Inc. is a wholly owned subsidiary of Smith Barney Shearson
Holdings Inc. (Holdings) and an indirect wholly-owned subsidiary of
The Travelers Inc. The Travelers Inc. is a diversified financial
services holding company principally engaged in the business of
providing investment, consumer finances and insurance services.
About the Variable Account and the Portfolios
Subaccounts Available for Investment
You may choose to invest your purchase payments in any or all of
ten subaccounts or in the Fixed Account. Each of the subaccounts
invests only in a single Portfolio:
o The New York Money Market subaccount invests in shares of the
Money Market Portfolio;
o The New York Intermediate High Grade subaccount invests in shares
of the Intermediate High Grade Portfolio;
o The New York Diversified Strategic Income subaccount invests in
shares of the Diversified Strategic Income Portfolio;
o The New York Equity Income subaccount invests in shares of the
Equity Income Portfolio;
<PAGE>
PAGE 16
o The New York Equity Index subaccount invests in shares of the
Equity Index Portfolio;
o The New York Growth & Income subaccount invests in shares of the
Growth & Income Portfolio;
o The New York Appreciation subaccount invests in shares of the
Appreciation Portfolio;
o The New York Total Return subaccount invests in shares of the
Total Return Portfolio;
o The New York International Equity subaccount invests in shares of
the International Equity Portfolio; and
o The New York Emerging Growth subaccount invests in the shares of
the Emerging Growth Portfolio.
Income, capital gains and capital losses of each subaccount are
credited or charged to that subaccount alone. No subaccount will
be charged with liabilities or expenses of any other subaccount or
of IDS Life of New York's general business.
The Variable Account was established on October 8, 1991 under New
York law. On Oct. 14, 1993 the name of the Variable Account was
changed from IDS Life of New York Account SLB to IDS Life of New
York Account SBS. The Variable Account is registered as a single
unit investment trust under the 1940 Act. The Variable Account
meets the definition of a separate account under the federal
securities laws. This registration does not involve any
supervision by the SEC of IDS Life of New York's management or
investment practices and policies.
The Internal Revenue Service (IRS) has issued final regulations
relating to the diversification requirements under section 817(h)
of the Code. Each Portfolio intends to comply with those
diversification requirements. See the Fund's prospectus for
further tax information regarding the Portfolios.
The U.S. Treasury and the IRS have been developing a revenue ruling
concerning investment control. The ruling may address the number
of subaccounts offered under an annuity and the number of exchanges
among the subaccounts that would be allowed before an annuity or
certificate owner would be considered to have investment control
and thus would be currently taxed on the income earned on the
underlying portfolio assets. This issue is still being studied by
the IRS and the timing of further action is unknown. IDS Life of
New York reserves the right to modify the Annuity and related
Certificates, as necessary, to prevent the Annuity or Certificate
owner from being currently taxed as the owner of the underlying
assets of the Variable Account for federal income tax purposes.
<PAGE>
PAGE 17
IDS Life of New York intends to comply with all U.S. Treasury
guidance to insure that the Annuity continues to qualify as an
annuity for federal income tax purposes.
Investment Goals and Policies of the Portfolios
There is one money market Portfolio, two fixed-income Portfolios
and seven equity Portfolios. The investment goals of the
Portfolios are as follows:
The Money Market Portfolio's goal is maximum current income to the
extent consistent with the preservation of capital and the
maintenance of liquidity. In seeking to achieve its goal, the
Portfolio will invest in short-term money market instruments deemed
to present minimal credit risks and considered to be "Eligible
Securities" as defined by the SEC.
The Intermediate High Grade Portfolio's goal is to provide as high
a level of current income as is consistent with the protection of
capital. In seeking to achieve its goal, the Portfolio will
invest, under normal market conditions, substantially all, but not
less than 65 percent, of its assets in U.S. government securities
and in high grade corporate bonds of U.S. issuers (i.e., bonds
rated within the two highest rating categories by Moody's Investors
Service, Inc. or Standard & Poor's Corporation or, if not rated,
bonds believed to be of comparable quality).
The Diversified Strategic Income Portfolio's goal is high current
income. In seeking to achieve its goal, the Portfolio will
allocate and reallocate its assets primarily among three types of
fixed-income securities -- U.S. government and mortgage related
securities, foreign government bonds and corporate bonds rated
below investment grade (commonly known as junk bonds). See the
section of the Fund's prospectus entitled "Medium-, Lower- and
Unrated Securities" for further information on these bonds.
The Equity Income Portfolio's primary goal is current income.
Long-term capital appreciation is a secondary goal. In seeking to
achieve its goals, the Portfolio will invest principally in
dividend-paying common stocks of companies whose prospects for
dividend growth and capital appreciation are considered favorable,
concentrating its investments in the utility industry.
The Equity Index Portfolio's goal is to provide investment results
that, before deduction of operating expenses, match the price and
yield performance of U.S. publicly traded common stocks, as
measured by the S&P 500. Once the Portfolio reaches a sufficient
asset size, it will seek to achieve its goal by owning all 500
stocks in the S&P 500 in proportion to their actual market
capitalization weightings.
<PAGE>
PAGE 18
The Growth & Income Portfolio's goal is income and long-term
capital growth. In seeking to achieve its goal, the Portfolio will
invest in income-producing equity securities, including dividend
paying common stocks, securities that are convertible into common
stocks and warrants meeting certain specified investment criteria.
The Appreciation Portfolio's goal is long-term appreciation of
capital. In seeking to achieve its goal, the Portfolio will invest
primarily in equity and equity-related securities that are believed
to afford attractive opportunities for appreciation.
The Total Return Portfolio's goal is to provide shareholders with
total return, consisting of long-term capital appreciation and
income. In seeking to achieve its goal, the Portfolio will
primarily invest in a diversified portfolio of dividend-paying
common stocks.
The International Equity Portfolio's goal is to provide a total
return on its assets from growth of capital and income. In seeking
to achieve its goal, under normal market conditions the Portfolio
will invest at least 65% of its assets in a diversified portfolio
of equity securities of established non-United States issuers.
The Emerging Growth Portfolio's goal is to provide capital
appreciation. In seeking to achieve its goal, the Portfolio will
invest at least 65% of its total assets in common stocks of small-
and medium-sized companies, both domestic and foreign, in the early
stages of their life cycle, that its investment adviser believes
have the potential to become major enterprises.
IDS Life of New York does not guarantee that the Portfolios will
meet their investment goals. Whether they achieve their goals
depends on a number of factors including their managements' ability
to manage the risks of changing economic conditions.
The organizations that perform services for the Portfolios are
listed below:
Name Service
PanAgora Asset Management, Inc. Investment Adviser to the Equity
Index Portfolio
Smith, Barney Advisers, Inc. Investment Adviser to the
International Equity Portfolio
Smith Barney Shearson Asset Investment Adviser to the
Management Division of Smith, Appreciation Portfolio and
Barney Advisers, Inc. and the Total Return Portfolio
<PAGE>
PAGE 19
Greenwich Street Advisors Investment Adviser to the Money
Market Portfolio, the
Intermediate High Grade
Portfolio, the Diversified
Strategic Income Portfolio, the
Equity Income Portfolio and the
Growth & Income Portfolio
American Capital Asset Investment Adviser to the
Management, Inc. Emerging Growth Portfolio
Smith Barney Global Capital Sub-Investment Adviser to the
Management, Inc. Diversified Strategic Income
Portfolio
The Boston Company Advisors, Inc. Administrator to each Portfolio
Smith Barney Shearson, Inc. Distributor
Boston Safe Deposit and Trust Custodian
Company
The Shareholder Services Group, Transfer and Dividend Paying
Inc., a subsidiary of First Data Agent
Corporation
Detailed information about each Portfolio, including the risks
related to investing in each Portfolio, is in the separate
prospectus for the Fund. Be sure to read it carefully. There are
deductions from, and fees and expenses paid out of, the assets of
the Fund that are described in its prospectus.
Using the Annuity and Certificate
Buying the Certificate
Your Smith Barney Shearson Financial Consultant will help you
prepare your application, which will be sent with your purchase
payment to IDS Life of New York's home office in Albany. If your
application is complete, IDS Life of New York will apply your
payment as of the next close of business after it is received. If
IDS Life of New York cannot accept your application within five
days, it will be declined and your payment will be returned to you.
When IDS Life of New York accepts your application, a Certificate
will be sent to you.
When you apply for the Certificate, you can select the Fixed
Account and/or the subaccount(s) in which you wish to invest and
the amounts to be allocated to each. You also select how you wish
to make purchase payments. Your purchase payments will be
allocated to the Fixed Account and/or the subaccount(s) according
to your election as of the next close of business after your
payment is received.
<PAGE>
PAGE 20
IDS Life of New York reserves the right to impose a maximum issue
age for non-qualified Certificates of age 75 and a maximum issue
age for qualified Certificates of age 65.
Ownership -- As owner, you have all rights and may receive all
benefits under the Certificate. The Certificate can be owned in
joint tenancy only in spousal situations.
Retirement Date -- A retirement date is established when you apply
for the Certificate. If you need to change it, send written
instructions to IDS Life of New York's home office at least 30 days
before you wish the change to become effective.
For non-qualified Certificates, the retirement date cannot be later
than the annuitant's 85th birthday or 10 years after issue,
whichever is later.
If you are buying this Certificate to fund a Section 401(k) plan,
custodial or trusteed plan, IRA or TSA plan, to avoid penalty
taxes, retirement payments generally must not begin earlier than
the date the annuitant turns 59-1/2 or later than April 1 of the
year following the calendar year in which he or she reaches age
70-1/2. However, in no case can the retirement date be later than
the annuitant's 85th birthday or 10 years after issue, whichever is
later.
Naming a Beneficiary -- You may name a beneficiary under your
Certificate. If the annuitant dies before the retirement date and
there is no beneficiary, then you will be the beneficiary. If you
die before the retirement date and there is no beneficiary, then
your estate will be the beneficiary.
IRAs and Other Qualified Plans
The Certificate may be bought in connection with a retirement plan
qualified under Sections 401, 403 or 408 of the Code. These plans
include:
o IRAs and Simplified Employee Pension plans (SEPs);
o Custodial and trusteed pension and profit sharing plans;
o Section 401(k) plans; and
o Section 403(b) plans (TSAs).
Your purchase of the Certificate in connection with a qualified
plan will be subject to applicable federal law and any rules of the
plan itself.
<PAGE>
PAGE 21
Purchase Payments
Amount of Purchase Payments -- You must make an initial lump sum
purchase payment for the Certificate and you may make additional
purchase payments for the Certificate. The initial purchase
payment must be at least $5,000 for non-qualified Certificates and
at least $500 for qualified Certificates. After making the initial
purchase payment, you may make additional payments of at least $500
for non-qualified Certificates and at least $50 for qualified
Certificates. Additional purchase payments can be mailed directly
to IDS Life of New York. The maximum total purchase payments for
your Certificate in the first and later years is $1,000,000. IDS
Life of New York reserves the right to increase this maximum amount
on a uniform basis for all Certificate owners in a class.
Qualified Plans -- If you invest in the Certificate in connection
with a qualified plan, that plan's limits on annual contributions
also will apply.
Allocating your Purchase Payments -- Your purchase payment(s) will
be allocated to the Fixed Account and/or the subaccount(s) you have
selected as of IDS Life of New York's next close of business
currently the same as the close of the New York Stock Exchange
(NYSE) after IDS Life of New York receives your payment. For
non-qualified Certificates, the minimum value of your investment in
a subaccount or in the Fixed Account is $500. This $500 minimum
does not apply to qualified Certificates.
Transferring Your Money Between Accounts
Prior to retirement, you may make unlimited transfers of your money
from one subaccount to another by making a written request. There
are some restrictions on transferring to or from the Fixed Account
as discussed in the section called "Information on the Fixed
Account of the Annuity." IDS Life of New York will make the
transfer at its next close of business. There is no charge for
transfers. However, unless the transfer is an automated transfer
described below, IDS Life of New York does require that your
transfer be for:
o at least $500; or
o your entire balance in that subaccount, if less.
Automated Transfers -- You may establish automated transfers of
certificate values between the subaccounts and/or the Fixed Account
through a one-time written request or other method acceptable to
IDS Life of New York. The minimum automated transfer amount is
$100. Such transfers may be made on a monthly, quarterly,
semi-annual or annual basis. You may start or stop this service at
any time, but you must give IDS Life of New York 30 days' notice to
<PAGE>
PAGE 22
change any automated transfer instructions that are currently in
place. Automated transfers are subject to all of the other Annuity
provisions and terms, including provisions relating to the transfer
of money between subaccounts.
For information on restrictions on automated transfers of
certificate values between the Fixed Account and the subaccounts
see the section called "Information on the Fixed Account of the
Annuity."
Before transferring any part of your certificate value, you should
consider the risks involved in switching investments. IDS Life of
New York may, in its sole discretion and subject to regulatory
approval, suspend or modify these transfer privileges at any time.
Telephone Transfers -- You also may request a transfer by
telephone. IDS Life of New York has the authority to honor any
telephone requests believed to be authentic and will use reasonable
procedures to confirm that they are. This includes asking
identifying questions and tape recording calls. As long as the
procedures are followed, neither IDS Life of New York nor its
affiliates will be liable for any loss resulting from fraudulent
requests. If IDS Life of New York receives your transfer request
before its close of business (normally 4 p.m. Eastern time), it
will be processed that day. Calls received after its close of
business will be processed the next business day. At times when
the volume of telephone requests is unusually high, IDS Life of New
York will take special measures to seek to ensure that your call is
answered as promptly as possible. A telephone transfer request
will not be allowed within 30 days of a phoned-in address change.
You may request that telephone transfers not be authorized from
your account by writing IDS Life of New York.
Certificate Charges and Charges Against the Variable Account
Certificate Administrative Charge -- IDS Life of New York charges
your Certificate an administrative fee of $30 each year. This
charge is for establishing and maintaining your records. IDS Life
of New York deducts it from the certificate value on each
certificate anniversary. If you fully surrender your Certificate,
IDS Life of New York will deduct a reduced certificate
administrative charge that is prorated based on the number of days
from your last certificate anniversary to the date of full
surrender. The certificate administrative charge cannot be
increased and does not apply after a retirement payment plan
begins. IDS Life of New York does not expect to profit from the
certificate administrative charge.
Variable Account Administrative Charge -- This charge is deducted
daily from the subaccounts of the Variable Account. The charge
equals an effective annual rate of 0.25 percent of the daily net
asset value of the subaccounts and is paid to IDS Life of New York.
<PAGE>
PAGE 23
It covers certain administrative and operating expenses of the
subaccounts incurred by IDS Life of New York such as accounting,
legal and data processing fees, and expenses involved in the
preparation and distribution of reports and prospectuses. The
Variable Account administrative charge cannot be increased and does
not apply after a retirement payment plan begins. IDS Life of New
York does not expect to profit from the Variable Account
administrative charge.
Mortality and Expense Risk Fee -- This charge is deducted daily
from the subaccounts of the Variable Account. The charge equals an
effective annual rate of 1.25 percent of the daily net asset value
of the subaccounts and is paid to IDS Life of New York. It covers
IDS Life of New York's annuity mortality risk and expense risk.
IDS Life of New York estimates that approximately two-thirds of
this fee is for assumption of the mortality risk, and one-third is
for assumption of the expense risk.
The mortality risk arises from IDS Life of New York's guarantee to
make retirement payments according to the terms of the Certificate
no matter how long a specific annuitant lives and no matter how
long the entire group of IDS Life of New York annuitants live. If,
as a group, IDS Life of New York annuitants outlive the life
expectancy that has been assumed in the actuarial tables, IDS Life
of New York must take money from its general assets to meet its
obligations. If, as a group, IDS Life of New York annuitants do
not live as long as expected, IDS Life of New York could profit
from the mortality risk fee.
The expense risk is the risk that the certificate administrative
charge and Variable Account administrative charge, which cannot be
increased, will not cover IDS Life of New York's expenses. Any
deficit would have to be made up from IDS Life of New York's
general assets. IDS Life of New York could profit from the expense
risk fee if the annual administrative charges exceed expenses.
Although IDS Life of New York does not expect to profit from the
administrative charges, IDS Life of New York does expect to profit
from the mortality and expense risk fee. Any profit realized by
IDS Life of New York from this fee would be available to it for any
proper corporate purpose, including, among other things, payment of
distribution (selling) expenses. IDS Life of New York does not
expect that the surrender charge, which is discussed in the
following paragraphs, will cover sales and distribution expenses
incurred by IDS Life of New York in connection with the
Certificates.
Surrender Charges -- If you surrender part or all of your
Certificate, you may be subject to a surrender charge. A surrender
charge applies if all or part of the certificate value is
surrendered during the first six payment years following a purchase
<PAGE>
PAGE 24
payment. The surrender charge starts at 6 percent of a purchase
payment in the first payment year and is reduced by 1 percent each
payment year thereafter. This means that there is no surrender
charge after six payment years. In addition, there is no surrender
charge when certificate values are applied to a retirement payment
plan or for a death benefit. The surrender charge is used to help
defray expenses incurred in the sale of the Certificates including
commissions and other promotional or distribution expenses
associated with the printing and distribution of prospectuses and
sales material.
After the first certificate year, you may surrender up to 10
percent of your prior certificate anniversary value in one or more
surrenders each certificate year without incurring a surrender
charge. The 10 percent free withdrawal provision is subject to
other Annuity provisions and terms including those on partial
surrenders.
In addition, after the first certificate year there is no surrender
charge on certificate earnings, which equal:
1) the certificate value at the time of surrender; minus
2) the sum of all purchase payments received that have not been
previously surrendered; minus
3) the amount of the 10 percent free withdrawal, if applicable.
For purposes of determining the amount of any surrender charge,
surrenders will be deemed to be taken first from any applicable 10
percent free withdrawal amount; next, from certificate earnings (in
excess of any 10 percent free withdrawal amount); and finally from
purchase payments (on a first in-first out basis).
Surrender Charge Calculation -- The following example illustrates
how the surrender charge is calculated:
<TABLE><CAPTION>
Assumptions:
______________________________________________________________________________________________
<S> <C>
Initial purchase payment at Certificate issue date of April 29, 1994.................. $10,000
Subsequent purchase payment on July 1, 1997........................................... 20,000
Account value on Certificate anniversary on April 29, 1994............................ 40,000
Account value on October 12, 1997..................................................... 42,000
______________________________________________________________________________________________
Full Surrender on October 12, 1997:
Basis of Rate of Dollar Amount
Charge Surrender Charge of Charge Explanation of Charge
$ 4,000 None $ 0 10% of certificate value surrendered free
$ 8,000 None $ 0 No charge on certificate earnings
$10,000 2% $ 200 Payment made in certificate year 1; surrendered at payment year 5 rate
$20,000 5% $1,000 Payment made in certificate year 4; surrendered at payment year 2 rate
Total Surrender Charge: $1,200
<PAGE>
PAGE 25
Partial Surrender of $25,000 on October 12, 1997:
__________________________________________________________________________________________________________________________________
Basis of Rate of Dollar Amount of
Charge Surrender Charge Charge Explanation of Charge
$ 4,000 None $ 0 10% of certificate value surrendered free
$ 8,000 None $ 0 No charge on certificate earnings
$10,000 2% $ 200 Payment made in certificate year 1; surrendered at payment year 5 rate
$ 3,000 5% $ 150 Payment made in certificate year 4; surrendered at payment year 2 rate
Total Surrender Charge: $ 350
</TABLE>
Surrender Charge on Partial Surrender -- The surrender charge is
deducted from the certificate value remaining after the owner is
paid the partial surrender amount requested. For example, if the
owner requested a partial surrender net check amount of $1,000 and
the surrender charge rate that applied to that amount were 5
percent, the owner would receive the $1,000 requested and the
surrender charge amount would be $52.63 for a total withdrawal of
$1,052.63.
Possible Reduction in Charges -- In some cases, IDS Life of New
York may expect to incur lower sales and administrative expenses or
perform fewer services. In those cases, IDS Life of New York may,
in its discretion, reduce or eliminate certain administrative and
surrender charges. However, IDS Life of New York expects this to
occur infrequently, if at all.
Surrendering Your Certificate
As owner, you may surrender all or part of your Certificate's value
at any time before the retirement date by making a written request.
You may have to pay surrender charges as previously explained.
Also, if you fully surrender your Certificate, a prorated portion
of the certificate administrative charge based on the number of
days from your last certificate anniversary to the date of full
surrender will be deducted at the time of surrender. No surrenders
may be made after the retirement date.
You may have to pay a 10 percent IRS penalty tax for surrenders
made before you reach age 59-1/2. In addition, if you purchased
the Certificate in connection with a qualified plan such as a
401(k) plan or a TSA (but not an IRA) and amount surrendered is
paid to you instead of being directly rolled over to an IRA or
another eligible qualified plan, 20 percent income tax withholding
may be imposed. See the section called "Federal Tax Information."
Finally, certain restrictions may apply to participants in TSA
plans. See the section called "Tax-Sheltered Annuities."
Tax-Sheltered Annuities -- The Code imposes certain restrictions on
an owner's right to receive early distributions attributable to
salary reduction contributions from a Certificate purchased in
connection with a retirement plan qualified under Section 403(b) as
a TSA.
<PAGE>
PAGE 26
Distributions attributable to salary reduction contributions made
after Dec. 31, 1988, plus the earnings on them, or to transfers or
rollovers of such amounts from other contracts, may be made from
the TSA only if the owner has attained age 59-1/2, has become
disabled as defined in the Code, has separated from the service of
the employer that purchased the Certificate or has died.
Additionally, if the owner should encounter a financial hardship
(within the meaning of the Code), he or she may receive a
distribution of all certificate values attributable to salary
reduction contributions made after Dec. 31, 1988, but not of the
earnings on them. These restrictions do not apply to transfers or
exchanges of contract values within the Certificate or to another
registered variable annuity contract or investment vehicle
available through the employer.
Even though a distribution may be permitted under these rules
(e.g., for hardship or after separation from service), it may
nonetheless be subject to a 10 percent IRS penalty tax (in addition
to income tax) as a premature distribution and to 20 percent income
tax withholding. See the section called "Federal Tax Information."
In addition, for certain types of contributions under a Section
403(b) annuity to be excluded from taxable income, the employer
must comply with certain nondiscrimination requirements. You
should consult your employer to determine whether the
nondiscrimination rules apply to you.
Systematic Withdrawals - IDS Life of New York allows you to
establish systematic withdrawals of certificate values through a
one-time written request or other method acceptable to IDS Life of
New York. Amounts of up to 10 percent of the certificate value at
the beginning of the certificate year may be withdrawn. The
minimum systematic withdrawal amount from the certificate is $100,
and such withdrawals can be made on a monthly, quarterly,
semiannual or annual basis. You may designate systematic
withdrawals be made from the Annuity in one of the following ways:
o withdrawing a specific total dollar amount prorated from all
subaccounts and/or the Fixed Account in which you have a balance
(if no other choice is made, amounts will be withdrawn under this
method);
o withdrawing a specific total dollar amount and also specifying
which percentage of that total amount will be withdrawn from all
subaccounts and/or the Fixed Account in which you have a balance;
or
o withdrawing only the interest credited to the Fixed Account over
the systematic withdrawal period.
<PAGE>
PAGE 27
The minimum certificate value required to begin systematic
withdrawals is $5,000. You may start or stop this service at any
time, but must give IDS Life of New York 30 days' notice to change
any systematic withdrawal instructions that are currently in place.
IDS Life of New York will not deduct surrender charges for
first-year systematic withdrawals of amounts up to 10 percent of
the initial purchase payment.
Systematic withdrawals may result in income taxes, withholding
taxes and penalty taxes being applied to all or a portion of the
amount withdrawn. You should consult your tax adviser regarding
the tax consequences of systematic withdrawals.
Partial Surrenders -- The minimum amount you may surrender is $500.
You cannot make a partial surrender if it would reduce the value of
your investment in a subaccount or in the Fixed Account to less
than $500 unless the value of your investment in a subaccount or in
the Fixed Account is fully withdrawn.
If you have a balance in more than one subaccount and/or in the
Fixed Account and request a partial surrender, IDS Life of New York
will withdraw money from all the subaccounts and/or the Fixed
Account in the same proportion as your value in each subaccount or
in the Fixed Account bears to your total certificate value, unless
you request otherwise.
A partial surrender request not exceeding $40,000 may be made by
telephone. IDS Life of New York has the authority to honor any
telephone requests believed to be authentic and will use reasonable
procedures to confirm that they are. This includes asking
identifying questions and tape recording calls. As long as the
procedures are followed, neither IDS Life of New York nor its
affiliates will be liable for any loss resulting from fraudulent
requests. At times when the volume of telephone requests is
unusually high, IDS Life of New York will take special measures to
ensure that your call is answered as promptly as possible. A
telephone surrender request will not be allowed within 30 days of a
phoned-in address change.
You may request that telephone withdrawals not be authorized from
your account by writing IDS Life of New York.
Total Surrenders -- IDS Life of New York will compute the value of
your Certificate at the close of business, currently the same as
the close of the NYSE, after receipt of your request for a complete
surrender. IDS Life of New York may ask you to return the
Certificate.
Receiving Payment -- Payment will be mailed within seven days after
IDS Life of New York receives your request. However, IDS Life of
New York may postpone payment if:
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PAGE 28
o the surrender value includes a purchase payment check that has
not cleared;
o the NYSE is closed, except for normal holiday and weekend
closings;
o trading on the NYSE is restricted according to the rules of the
SEC;
o an emergency, as defined by the rules of the SEC, makes it
impracticable for the Portfolios to sell securities or to value the
Portfolios' net assets; or
o the SEC permits a delay in payment for the protection of owners.
Payment in Case of Death before Retirement Payments Begin
Prior to the retirement date, if you or the annuitant die before
the initial fifth certificate anniversary, IDS Life of New York
will pay the beneficiary the greater of:
1) the certificate value; or
2) the amount of purchase payments (minus any surrenders).
On or after the initial fifth certificate anniversary, and each
subsequent fifth certificate anniversary, IDS Life of New York will
pay the beneficiary the greater of:
1) the certificate value; or
2) a minimum guaranteed death benefit which equals:
a) the death benefit calculated as of the previous fifth
certificate anniversary; plus
b) any purchase payments made since the previous fifth
certificate anniversary; minus
c) any surrenders since the previous fifth certificate
anniversary.
Certificate value is determined as of the date IDS Life of New York
receives proof of death.
If Your Spouse is Sole Beneficiary -- If you, as owner of the
Certificate, die before the retirement date and your spouse is the
only beneficiary of the Certificate, your spouse may keep the
Certificate as owner and annuitant. To do this, within 60 days
after IDS Life of New York receives proof of death, it must receive
written instructions from your spouse to keep the Certificate in
force.
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Section 401(k) Plans, TSAs, Custodial and Trusteed Plans, and IRAs
- -- If you buy the Certificate in connection with a Section 401(k)
plan, custodial or trusteed plan or as an IRA or TSA, you die
before reaching age 70-1/2 and your spouse is the only beneficiary,
your spouse may keep the Certificate in force until the date on
which you would have reached age 70-1/2 or such other date as
provided in the Code. To do this, within 60 days after IDS Life of
New York receives proof of death, it must receive written
instructions from your spouse to keep the Certificate in force.
Paying the Beneficiary -- Unless you have given IDS Life of New
York other written instructions, IDS Life of New York will pay the
beneficiary in a single lump sum payment. The beneficiary may
elect to receive payment any time within 5 years after the date of
death. Payments made from a Certificate purchased to fund certain
qualified plans to a surviving spouse instead of being directly
rolled over into an IRA may be subject to 20 percent income tax
withholding. See the section called "Federal Tax Information."
IDS Life of New York may make payments under any retirement payment
plan available under this Annuity if:
o the beneficiary asks IDS Life of New York in writing within 60
days after IDS Life of New York receives proof of death;
o payments begin no later than one year after death; and
o the payment period does not extend beyond the beneficiary's life
or life expectancy in accordance with applicable provisions of the
Code.
When paying the certificate value to the beneficiary, IDS Life of
New York will determine the Certificate's value at the next close
of the NYSE after IDS Life of New York's death claim requirements
are fulfilled. Interest, if any, is paid at a rate no less than
that required by applicable law. IDS Life of New York will mail
payment to the beneficiary within seven days after all death claim
requirements are fulfilled.
Settlement Value of Your Certificate
The amount available on the retirement date to provide payments
under a retirement payment plan is the current value of your
investment, called the certificate value. Because Portfolio
investments (other than those in the Money Market Portfolio)
fluctuate in value each day, there can be no guarantee that the
certificate value will exceed, or even equal, the amount of your
purchase payments. You will receive quarterly statements showing
your certificate value and any other information required by
applicable law at least annually.
On your retirement date, the certificate value is applied to IDS
Life of New York's current fixed table of settlement rates, which
will be at least as favorable as that contained in the Certificate.
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PAGE 30
IDS Life of New York then calculates lifetime annuity payments
according to the retirement payment plan you choose.
A unisex table of settlement rates will apply, except when the
Certificate is used to fund an IRA or a non-qualified plan.
Payout Options at Retirement
As the owner of the Certificate, you have the right to decide how
retirement payments are to be made. You may select one of the
retirement payment plans outlined below, or you and IDS Life of New
York may mutually agree on other payment arrangements. Annuity
payments will be made on a fixed basis. A fixed annuity is one
with payments that are guaranteed by IDS Life of New York as to
dollar amount. Fixed annuity payments after the first payment will
never be more or less than the first payment.
Retirement Payment Plans -- You may choose any one of these payment
plans by giving IDS Life of New York written instructions at least
30 days before the retirement date:
o Plan A - Life Annuity - No Refund -- Monthly payments are made
until the annuitant's death. Payments end with the last monthly
payment before the annuitant's death; no further payments will be
made. You should understand that if the annuitant dies after only
the first monthly payment, no further payments will be made.
o Plan B - Life Annuity with 5, 10 or 15 Years Certain -- Monthly
payments are made until the annuitant's death. However, payments
are guaranteed for 5, 10 or 15 years. If the annuitant dies before
all guaranteed payments have been made, IDS Life of New York will
continue making those guaranteed payments to you, if living; if
not, to your beneficiary; or, if no beneficiary is named, to your
estate.
o Plan C - Life Annuity - Installment Refund -- Monthly payments
are made until the annuitant's death. However, payments are
guaranteed to continue for at least the number of months determined
by dividing the certificate value at the time of retirement by the
amount of the monthly payment. If the annuitant dies before all
guaranteed payments have been made, IDS Life of New York will
continue making those guaranteed payments to you, if living; if
not, to your beneficiary; or, if no beneficiary is named, to your
estate.
o Plan D - Joint and Last Survivor Life Annuity - No Refund --
Monthly payments are made while both the annuitant and a joint
annuitant are living. If either annuitant dies, monthly payments
continue at the full amount until the death of the surviving
annuitant. Payments end with the death of the second annuitant,
and no further payments will be made. You should understand that
if both the annuitant and the joint annuitant die after only the
first monthly payment, no further payments will be made.
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PAGE 31
o Plan E - Period Certain Annuity -- Monthly payments are made for
a period of years. The period of years may be no less than 10
years and no more than 30 years. Even if the annuitant lives
beyond the period of years selected, no further payments will be
made. However, if the annuitant dies before the end of the period
selected, IDS Life of New York will continue making monthly
payments to you, if living; if not, to your beneficiary; or, if no
beneficiary is named, to your estate.
Restrictions for Some Qualified Plans -- If your Certificate was
purchased in connection with a Section 401(k) plan, custodial or
trusteed plan, or as a TSA or an IRA, you must select a payment
plan (in accordance with the applicable provisions of the Code)
that provides for payments:
o over the life of the annuitant;
o over the joint lives of the annuitant and beneficiary;
o for a period not exceeding the life expectancy of the annuitant;
or
o for a period not exceeding the joint life expectancies of the
annuitant and beneficiary.
If IDS Life of New York Does Not Receive Instructions -- You must
give IDS Life of New York written instructions for paying
retirement benefits at least 30 days before the retirement date.
If you do not, IDS Life of New York will make payments under Plan
B, with 120 monthly payments guaranteed.
If Monthly Payments Would be Less than $50 -- IDS Life of New York
will calculate your certificate value at the retirement date. If
the calculations show that monthly payments would be less than $50,
IDS Life of New York reserves the right to change the frequency of
the retirement payments or to pay the certificate value in one lump
sum.
Death After Retirement Payments Begin -- If you or the annuitant
die after retirement payments begin, any amount payable, as
provided in the retirement payment plan in effect, will be
continued to the beneficiary, if living; if not, the owner, if
living; if not, the owner's estate.
Changing Ownership
You may change ownership of your Certificate at any time by filing
a change of ownership form with IDS Life of New York at its home
office. No change of ownership will be binding upon IDS Life of
New York until the change is received and recorded. IDS Life of
New York takes no responsibility for the validity of the change.
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PAGE 32
If you have a qualified plan, the Certificate may not be sold,
assigned, transferred, discounted or pledged as collateral for a
loan or as security for the performance of an obligation or for any
other purpose to any person other than IDS Life of New York.
However, if the owner is a trust or custodian, or an employer
acting in a similar capacity, ownership of a Certificate may be
transferred to the annuitant.
The value of any part of a non-qualified Certificate assigned or
pledged is taxed like a cash withdrawal to the extent allocable to
investment in the Certificate.
Transfer of a non-qualified Certificate to another person without
adequate consideration is considered a gift and the transfer may be
considered a surrender of the Certificate for federal income tax
purposes. The income on the Certificate will be taxed to the
transferor (original owner), who may be subject to a 10 percent IRS
penalty tax for early withdrawal. The transferee's (new owner's)
investment in the Certificate will be the value of the Certificate
at the time of the transfer. Consult with your tax adviser before
taking any action.
Federal Tax Information
Under current law, there is no liability for federal income tax on
any increase in the Certificate's value until payments are made,
except as discussed above in "Changing Ownership." However, since
federal tax consequences cannot always be anticipated, you should
consult a tax adviser if you have any questions about the taxation
of your Certificate.
You are not taxed on your investment in the Certificate. Your
investment generally includes purchase payments made into the
Certificate with after-tax dollars. If the investment in the
Certificate was made by you or on your behalf with pre-tax dollars
as part of a qualified retirement plan, such amounts are not
considered to be part of your investment in the Certificate and
will be taxed when paid to you.
If you surrender part or all of your Certificate before the date on
which retirement payments begin, you will be taxed on the payments
that you receive to the extent that the value of your Certificate
exceeds your investment. In addition, you may have to pay a 10
percent IRS penalty tax for early withdrawal and, for surrenders
from Certificates purchased to fund qualified plans and TSAs, 20
percent income tax withholding may be imposed.
If payments begin under a non-qualified Certificate, a portion of
each payment will be subject to tax and a portion of each payment
will be considered a return of part of your investment in the
Certificate and will not be taxed. All amounts received after your
<PAGE>
PAGE 33
investment is recovered will be subject to tax. If payments begin
under a qualified Certificate, for example an IRA, TSA, or Section
401(k) plan, all of the payments generally will be subject to
taxation except to the extent that the contributions were made with
after-tax dollars.
Unlike life insurance proceeds, the death benefit under your
Certificate is not tax exempt. The gain, if any, is taxable as
ordinary income to the beneficiary in the year(s) he or she
receives the payments.
Federal tax law requires that all non-qualified deferred contracts
issued by the same company to the same owner during a calendar year
be treated as a single, unified contract. The amount of income
included and taxed in a distribution (or a transaction deemed a
distribution under federal tax law) taken from any one of such
contracts is determined by aggregating all such contracts.
The income earned on a Certificate held by such entities as
corporations, partnerships or trusts generally will be treated as
ordinary income received during that year.
You may have to pay a 10 percent IRS penalty tax on any amount
includable in your ordinary income. This penalty will not apply to
any amount received:
o after you reach age 59-1/2;
o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal
periodic payments made at least annually, over your life or life
expectancy (or joint lives or life expectancies of you and your
designated beneficiary); or
o if it is allocable to an investment before Aug. 14, 1982 (except
for Certificates in qualified plans).
These are the major exceptions to the 10 percent IRS penalty tax.
Additional exceptions may apply depending upon whether your
Certificate is qualified. For qualified Certificates, other
penalties apply if you surrender a Certificate before the plan
specifies that payments can be made under the plan.
In general if you receive all or a portion of the value of a
Certificate you purchased to fund a qualified plan such as a 401(k)
plan or TSA (but not an IRA), mandatory 20 percent income tax
withholding will be imposed at the time the payment is made. In
addition, federal income tax and the 10 percent IRS penalty tax for
early withdrawals may apply to amounts properly includable in
income. This mandatory 20 percent income tax withholding will not
be imposed if:
<PAGE>
PAGE 34
o instead of receiving the payment, you elect to have the payment
rolled over directly to an IRA or another eligible qualified plan;
o the payment is one of a series of substantially equal periodic
payments made at least annually, over your life or life expectancy
(or joint lives or life expectancies of you and your designated
beneficiary) or made over a period of 10 years or more; or
o the payment is a minimum distribution required under the Code.
These are the major exceptions to the mandatory 20 percent income
tax withholding. Payments made to a surviving spouse instead of
being directly rolled over to an IRA may be subject to 20 percent
income tax withholding. For taxable distributions that are not
subject to the mandatory 20 percent withholding, federal income tax
will be withheld from the taxable part of your distribution unless
you elect otherwise. State withholding also may be imposed on
taxable distributions.
You will receive a tax statement for any year in which you receive
a taxable distribution from your Certificate.
Our discussion of federal tax laws is based on our understanding of
these laws as they are currently interpreted. Either federal tax
laws or current interpretations of them may change. You are urged
to consult your tax adviser regarding your specific circumstances.
Additional Information about the Annuity and Certificates
Accumulation Units
When your purchase payments are allocated to the subaccount(s) you
have chosen, they will be converted into accumulation units. The
number of accumulation units to be credited to your Certificate is
determined by dividing the purchase payment by the accumulation
unit value.
Accumulation Unit Value -- The accumulation unit value for each
subaccount was originally set at $1. IDS Life of New York
determines the current accumulation unit value by taking the last
accumulation unit value for that subaccount and multiplying it by
the current net investment factor.
Net Investment Factor -- The net investment factor is determined
by:
o adding the Portfolio's net asset value per share and the per
share amount of any current dividend or capital gain distribution
made by the Portfolio and held in the subaccount;
<PAGE>
PAGE 35
o dividing that sum by the last net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee and Variable Account administrative charge from
the result.
Because the net investment factor may be greater or less than one,
the accumulation unit value may increase or decrease. You bear
this investment risk.
About the Portfolios
Voting Rights -- As the Certificate owner, you have voting rights
in the Fund and the Portfolios, the shares of which are held by the
subaccounts in which you have invested. IDS Life of New York will
vote the shares of each Portfolio in which you have a beneficial
interest according to the instructions received from you. The
number of votes you have is determined by applying your percentage
interest in the subaccount to the total number of votes allowed to
the subaccount.
IDS Life of New York calculates votes separately for each
subaccount, and will do this not more than 60 days before a meeting
of beneficial owners of the Portfolios. Owners with an interest in
the matter or matters being considered will receive notice of these
meetings, proxy materials and a statement of the number of votes to
which they are entitled.
If you do not give IDS Life of New York voting instructions, it
will vote your shares in the same proportion as the votes for which
it has received instructions. IDS Life of New York also will vote
the shares for which it has voting rights in the same proportion as
the votes for which it has received instructions. See the
prospectus for the Fund for a detailed description of voting rights
in the Fund.
Substitution of Investments -- If shares of any Portfolio of the
Fund should not be available for purchase by the appropriate
subaccount or if, in the judgment of IDS Life of New York's
management, further investment in such shares is no longer
appropriate in view of the purposes of the subaccount, shares of
another registered, open-end management investment company may be
substituted for Portfolio shares held in the subaccounts. If
deemed by IDS Life of New York to be in the best interest of
persons having voting rights under the Annuity, the Variable
Account may be operated as a management company under the 1940 Act
or it may be deregistered under such Act in the event such
registration is no longer required. In the event of any such
substitution or change, IDS Life of New York, without the consent
or approval of the owners, may amend the Annuity and related
Certificates and take whatever action is necessary and appropriate.
However, no such substitution or change will be made without any
necessary approval of the SEC and state insurance department. IDS
Life of New York will notify owners of any substitution or change.
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PAGE 36
Information on the Fixed Account of the Annuity
In addition to the ten subaccounts of the Variable Account
described in this prospectus, the Annuity has a Fixed Account
available for allocation of purchase payments. Generally, the
information in the section called "Using the Annuity and
Certificate" applies in a like manner to the Fixed Account.
However, there are some differences.
The Fixed Account operates like a traditional annuity. Fixed
annuity cash values increase based on interest rates that may
change from time to time but are guaranteed by IDS Life of New
York. Interest is credited and compounded daily to yield an
effective annual interest rate. The minimum guaranteed interest
rate is 4 percent. Purchase payments and transfers to the Fixed
Account become part of the general account of IDS Life of New York.
In contrast, purchase payments and transfers to the subaccounts of
the Variable Account go into a segregated asset account; they are
not mingled with IDS Life of New York's main portfolio of
investments that support fixed annuity obligations. The gains
achieved or losses suffered by the segregated asset account have no
effect on the Fixed Account.
The Annuity allows you to transfer certificate values between the
Fixed Account and the subaccounts, but such transfers are
restricted as follows:
1. You may transfer certificate values from the Fixed Account to
the subaccount(s) or from the subaccount(s) to the Fixed Account up
to six times per certificate year, subject to restrictions #2 and
#3 below.
2. If a transfer is made from the Fixed Account to the
subaccount(s), no subsequent transfer from any subaccount back to
the Fixed Account may be made for six months from the last transfer
date from the Fixed Account.
3. Except for automated transfers of certificate values, transfers
must be for at least $500 or your entire balance in the Fixed
Account, if less.
IDS Life of New York may, in its sole discretion and subject to
regulatory approval, suspend or modify these transfer privileges at
any time.
The Annuity allows you to make automated transfers of certificate
values between the Fixed Account and the subaccounts, but such
transfers may not exceed an amount that, if continued, would
deplete the Fixed Account within 12 months. The minimum automated
transfer amount is $100. Such transfers may be made on a monthly,
quarterly, semiannual or annual basis. The limit on transfers
<PAGE>
PAGE 37
between the Fixed Account and subaccounts to six times per year may
be waived if the automated transfer of certificate values service
is in effect. You may start or stop this service at any time, but
you must give IDS Life of New York 30 days' notice to change any
automated transfer instructions that are currently in place.
Automated transfers are subject to all of the other Annuity
provisions and terms.
If you make any type of transfer from the Fixed Account, you may
not transfer certificate values from any subaccount back to the
Fixed Account for six months from the last transfer date from the
Fixed Account.
The mortality and expense risk charge and the Variable Account
administrative charge do not apply to values allocated to the Fixed
Account. However, the other charges described in this prospectus
do apply to the Fixed Account.
Because of exemptive and exclusionary provisions, interests in IDS
Life of New York's general account have not been registered under
the Securities Act of 1933, as amended (1933 Act), nor is the
general account registered as an investment company under the 1940
Act. Accordingly, neither the general account of IDS Life of New
York nor any interests therein are generally subject to the
provisions of the 1933 or 1940 Acts, and IDS Life of New York has
been advised that the staff of the SEC has not reviewed the
disclosures in this prospectus that relate to the Fixed Account.
Disclosures regarding the Fixed Account of the Annuity and the
general account of IDS Life of New York, however, may be subject to
certain generally applicable provisions of the federal securities
laws relating to the accuracy and completeness of statements made
in prospectuses.
<PAGE>
PAGE 38
Table of Contents of the SAI
Page
Performance Information...................................... 3
Rating Agencies.............................................. 5
Surrender Charges............................................ 6
Independent Auditors......................................... 6
Mortality and Expense Risk Fee............................... 6
Prospectus................................................... 6
Financial Statements
IDS Life of New York Account SBS....................... 7
IDS Life Insurance Company of New York................. 13
___________________________________________________________________
If you would like to receive a copy of the SAI for:
IDS Life of New York Account SBS
Group Flexible Premium Deferred
Combination Fixed and Variable Annuity
please return this request to:
IDS Life of New York Annuity Service
IDS Life Insurance Company of New York
P.O. Box 5144
Albany, New York 12205
Your name___________________________________________
Address_____________________________________________
City_________________________ State______ Zip_______
<PAGE>
PAGE 39
STATEMENT OF ADDITIONAL INFORMATION
for
SYMPHONY ANNUITY
IDS LIFE OF NEW YORK ACCOUNT SBS
April 29, 1994
IDS Life of New York Account SBS is a separate account established
and maintained by IDS Life Insurance Company of New York (IDS Life
of New York).
This Statement of Additional Information (SAI), dated April 29,
1994, is not a prospectus. It should be read together with the
Account's prospectus, dated April 29, 1994, which may be obtained
from your Smith Barney Shearson Financial Consultant, or by writing
or calling IDS Life of New York Annuity Service at the address or
telephone number below.
IDS Life of New York Annuity Service
20 Madison Avenue Extension
Albany, NY 12203
(518) 869-8613
<PAGE>
PAGE 40
TABLE OF CONTENTS
Performance Information........................................p. 3
Rating Agencies................................................p. 5
Surrender Charges..............................................p. 6
Independent Auditors...........................................p. 6
Mortality and Expense Risk Fee.................................p. 6
Prospectus.....................................................p. 6
Financial Statements
- IDS Life of New York Account SBS.......................p. 7
- IDS Life Insurance Company of New York.................p.13
<PAGE>
PAGE 41
PERFORMANCE INFORMATION
Calculation of Yield for the New York Money-Market Subaccount
Simple yield for the New York Money-Market subaccount will be based
on the: (a) change in the value of a hypothetical investment
(exclusive of capital changes) at the beginning of a seven-day
period for which yield is to be quoted; (b) subtracting a pro rata
share of subaccount expenses accrued over the seven-day period; (c)
dividing the difference by the value of the account at the
beginning of the period to obtain the base period return; and (d)
annualizing the results (i.e., multiplying the base period return
by 365/7). Calculation of effective yield begins with the same base
period return used in the calculation of yield, which is then
annualized to reflect compounding according to the following
formula:
365/7
Effective Yield =[(Base Period Return + 1) ]-1
On Dec. 31, 1993, the Account's simple yield was 0.70 percent and
its effective yield was 0.70 percent.
Calculation of Yield for other than the New York Money-Market
Subaccount
For a subaccount other than the New York Money-Market subaccount,
quotations of yield will be based on all investment income earned
during a particular 30-day period, less expenses accrued during the
period (net investment income) and will be computed by dividing net
investment income per accumulation unit by the value of an
accumulation unit on the last day of the period, according to the
following formula:
YIELD = 2[(a-b + 1)6 - 1]
cd
where: a = dividends and investment income earned during the
period.
b = expenses accrued for the period (net of
reimbursements).
c = the average daily number of accumulation units
outstanding during the period that were entitled to
receive dividends.
d = the maximum offering price per accumulation unit on
the last day of the period.
Yield on the subaccount is earned from the increase in the net
asset value of shares of the Fund in which the subaccount invests
and from dividends declared and paid by the Fund, which are
automatically invested in shares of the Fund.
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PAGE 42
Calculation of Average Annual Total Return
Quotations of average annual total return for any subaccount will
be expressed in terms of the average annual compounded rate of
return of a hypothetical investment in the Annuity contract over a
period of one, five and 10 years (or, if less, up to the life of
the subaccount), calculated according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000.
T = average annual total return.
n = number of years.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one-, five or
ten-year (or other) period at the end of the one-,
five- or ten-year (or other) period (or fractional
portion thereof).
Subaccount total return figures reflect the deduction of the
contract administrative charge, Variable Account administrative
charge and mortality and expense risk fee. Performance figures
will be shown with the deduction of the applicable surrender
charge; in addition, performance figures may be shown without the
deduction of a surrender charge. The Securities and Exchange
Commission (SEC) requires that an assumption be made that the
contract owner surrenders the entire contract at the end of the
one, five and ten year periods (or, if less, up to the life of the
subaccount) for which performance is required to be calculated.
Aggregate Total Return
Aggregate total return represents the cumulative change in the net
asset value of shares of the Fund in which the subaccount invests
over a specified period of time and is computed by the following
formula:
ERV - P
P
where: P = a hypothetical initial payment of $1,000.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one-, five-, or
ten-year (or other) period at the end of the one-,
five, or ten-year (or other) period (or fractional
portion thereof).
Performance of the subaccounts may be quoted or compared to
rankings, yields, or returns as published or prepared by
independent rating or statistical services or publishers or
publications such as Barron's, Business Week, Forbes, Fortune,
Institutional Investor, Investor's Daily, Kiplinger's Personal
Finance, Money, Morningstar Mutual Fund Values, Mutual Fund
Forecaster, The New York Times, Stranger's Investment Advisor, USA
Today, U.S. News & World Report and The Wall Street Journal. <PAGE>
PAGE 43
RATING AGENCIES
The following chart provides information on the relevance of
ratings* given to IDS Life of New York by independent rating
agencies that evaluate the financial soundness of insurance
companies.
Rating agency Rating Relevance of Rating
A.M. Best A+ Reflects A. M. Best's opinion
(Superior) regarding IDS Life of New York's strong
distribution network, favorable overall
balance sheet profile, consistently
improving profitability, adequate level of
capitalization and asset/liability
management expertise.
Duff & Phelps AAA Reflects Duff & Phelps' opinion
regarding IDS Life of New York's
consistently excellent profitability
record, stable operating leverage,
leadership position in chosen markets
and effective use of asset/liability
management techniques.
Moody's Aa2 Reflects Moody's opinion regarding IDS
Life of New York's leadership position in
financial planning, strong asset/liability
management and good capitalization. IDS
Life of New York has a strong market focus
and it greatly emphasizes quality service.
A.M. Best rates over 1,600 insurance companies on a 15 level scale
with letters ranging from A++ to F to "NA" ratings based on a
company's financial strength and claims-paying ability.
Duff & Phelps rates over 125 companies for claims-paying ability
with 19 rating categories from AAA to CCC-.
Moody's rates over 80 companies for financial strength with 19
rating categories ranging from Aaa to C.
* Ratings relate to IDS Life of New York's ability to fulfill its
obligations under its contracts and not to the management or
performance of the separate accounts.
<PAGE>
PAGE 44
SURRENDER CHARGES
Surrender charges received by IDS Life of New York for 1993 were
$151,536. Commissions paid by IDS Life of New York for 1993
aggregated $1,244,668. The surrender charges were applied toward
payment of commissions. The Account commenced operations on
March 15, 1993.
INDEPENDENT AUDITORS
The financial statements of IDS Life of New York Account SBS and of
IDS Life of New York appearing in this SAI have been audited by
Ernst & Young, independent auditors, to the extent indicated in
their reports thereon appearing elsewhere herein. Such financial
statements have been included herein in reliance upon such reports
given upon the authority of such firm as experts in accounting and
auditing.
MORTALITY AND EXPENSE RISK FEE
IDS Life of New York has represented to the SEC that:
IDS Life of New York has reviewed publicly available information
regarding products of other companies. Based upon this review, IDS
Life of New York has concluded that the mortality and expense risk
fee is within the range of charges determined by industry practice
and that the level of the mortality and expense risk charge is
reasonable in relation to the risks assumed by IDS Life of New York
under the Annuities. IDS Life of New York will maintain at its
principal office, and make available on request of the SEC or its
staff, a memorandum setting forth in detail the variable products
analyzed and the methodology, and results of, its comparative
review.
IDS Life of New York has concluded that there is a reasonable
likelihood that the proposed distribution financing arrangements
made with respect to the Annuities will benefit the Variable
Account and investors in the Annuities. The basis for such
conclusion is set forth in a memorandum which will be made
available to the Commission or its staff on request.
PROSPECTUS
The prospectus dated April 29, 1994, is hereby incorporated in this
SAI by reference. <PAGE>
PAGE 45
Annual Financial Information
___________________________________________________________________
Report of Independent Auditors
The Board of Directors IDS Life Insurance Company of New York
We have audited the accompanying individual and combined statements
of net assets of the segregated asset subaccounts of IDS Life of
New York Account SBS (comprising, respectively, the BMO, BIH, BDS,
BEM, BEX, BGI, BAP, BTR, BEG and BIE subaccounts) as of December
31, 1993, and the related statements of operations and changes in
net assets for the period from March 15, 1993 (commencement of
operations) to December 31, 1993, except for the BTR, BEG and BIE
subaccounts which are for the period December 2, 1993 (commencement
of operations) to December 31, 1993. These financial statements
are the responsibility of the management of IDS Life Insurance
Company of New York. Our responsibility is to express an opinion
on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards 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. Our
procedures included confirmation by the underlying affiliated
mutual fund of securities owned at December 31, 1993. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the individual and combined
financial position of the segregated asset subaccounts of IDS Life
of New York Account SBS at December 31, 1993 and the individual and
combined results of their operations and the changes in their net
assets for the periods described in the first paragraph in
conformity with generally accepted accounting principles.
ERNST & YOUNG
Minneapolis, Minnesota
March 18, 1994 <PAGE>
PAGE 46
<TABLE><CAPTION>
IDS Life of New York Account SBS
_______________________________________________________________________________________________________________________
Statements of Net Assets Dec. 31, 1993
____________________Segregated Asset Subaccounts________________________
Assets BMO BIH BDS BEM BEX BGI
_______________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C>
Investments in shares of mutual fund
portfolios, at market value:
Shearson Series Fund Money Market Portfolio -
452,598 shares at net asset value of
$1.00 per share (cost $452,598) $452,598 $ - $ - $ - $ - $ -
Shearson Series Fund Intermediate High Grade
Portfolio - 70,744 shares at net asset value of
$10.69 per share (cost $751,573) - 756,253 - - - -
Shearson Series Fund Diversified Strategic Income
Portfolio - 217,121 shares at net asset value
of $10.08 per share (cost $2,167,029) - - 2,188,578 - - -
Shearson Series Fund Equity Income Portfolio -
138,484 shares at net asset value of $11.55
per share (cost $1,624,922) - - - 1,599,486 - -
Shearson Series Fund Equity Index Portfolio -
97,926 shares at net asset value of $11.90
per share (cost $1,117,360) - - - - 1,165,316 -
Shearson Series Fund Growth & Income Portfolio -
123,497 shares at net asset value of $11.37
per share (cost $1,360,178) - - - - - 1,404,163
Shearson Series Fund Appreciation Portfolio -
183,124 shares at net asset value of $11.80
per share (cost $2,072,776) - - - - - -
Shearson Series Fund Total Return Portfolio -
21,142 shares at net asset value of $10.30
per share (cost $214,184) - - - - - -
Shearson Series Fund Emerging Growth Portfolio -
14,815 shares at net asset value of $10.41
per share (cost $148,982) - - - - - -
Shearson Series Fund International Equity Portfolio -
31,512 shares at net asset value of $10.05
per share (cost $314,888) - - - - - -
_______________________________________________________________________________________________________________________
452,598 756,253 2,188,578 1,599,486 1,165,316 1,404,163
_______________________________________________________________________________________________________________________
Dividends receivable 661 - - - - -
Accounts receivable from IDS Life of New York for contract
purchase payments - - - - - -
_______________________________________________________________________________________________________________________
Total assets 453,259 756,253 2,188,578 1,599,486 1,165,316 1,404,163
_______________________________________________________________________________________________________________________
<PAGE>
PAGE 47
IDS Life of New York Account SBS
__________________________________________________________________________________________________________
Statements of Net Assets Dec. 31, 1993
Combined
___________Segregated Asset Subaccounts_______ Variable
Assets BAP BTR BEG BIE Account
__________________________________________________________________________________________________________
Investments in shares of mutual fund
portfolios, at market value:
Shearson Series Fund Money Market Portfolio -
452,598 shares at net asset value of
$1.00 per share (cost $452,598) $ - $ - $ - $ - $ 452,598
Shearson Series Fund Intermediate High Grade
Portfolio - 70,744 shares at net asset value of
$10.69 per share (cost $751,573) - - - - 756,253
Shearson Series Fund Diversified Strategic Income
Portfolio - 217,121 shares at net asset value
of $10.08 per share (cost $2,167,029) - - - - 2,188,578
Shearson Series Fund Equity Income Portfolio -
138,484 shares at net asset value of $11.55
per share (cost $1,624,922) - - - - 1,599,486
Shearson Series Fund Equity Index Portfolio -
97,926 shares at net asset value of $11.90
per share (cost $1,117,360) - - - - 1,165,316
Shearson Series Fund Growth & Income Portfolio -
123,497 shares at net asset value of $11.37
per share (cost $1,360,178) - - - - 1,404,163
Shearson Series Fund Appreciation Portfolio -
183,124 shares at net asset value of $11.80
per share (cost $2,072,776) 2,160,860 - - - 2,160,860
Shearson Series Fund Total Return Portfolio -
21,142 shares at net asset value of $10.30
per share (cost $214,184) - 217,767 - - 217,767
Shearson Series Fund Emerging Growth Portfolio -
shares at net asset value of $10.41
per share (cost $148,982) - - 154,224 - 154,224
Shearson Series Fund International Equity Portfolio -
31,512 shares at net asset value of $10.05
per share (cost $314,888) - - - 316,696 316,696
__________________________________________________________________________________________________________
2,160,860 217,767 154,224 316,696 10,415,941
__________________________________________________________________________________________________________
Dividends receivable - - - - 661
Accounts receivable from IDS Life of New York for contract
purchase payments - - - 20,517 20,517
__________________________________________________________________________________________________________
Total assets 2,160,860 217,767 154,224 337,213 10,437,119
__________________________________________________________________________________________________________
<PAGE>
PAGE 48
Liabilities
______________________________________________________________________________________________________________________
Payable to IDS Life of New York for:
Mortality and expense risk fee 497 771 2,168 1,597 1,103 1,401
Administrative charge 99 154 434 319 221 280
Payable to mutual fund portfolios for investments
purchased - - - - - -
______________________________________________________________________________________________________________________
Total liabilities 596 925 2,602 1,916 1,324 1,681
______________________________________________________________________________________________________________________
Net assets applicable to contracts in accumulation
period $452,663 $755,328 $2,185,976 $1,597,570 $1,163,992 $1,402,482
______________________________________________________________________________________________________________________
Accumulation units outstanding 449,727 732,822 2,055,184 1,561,094 1,128,416 1,334,703
______________________________________________________________________________________________________________________
Net asset value per accumulation unit $ 1.01 $ 1.03 $ 1.06 $ 1.02 $ 1.03 $ 1.05
______________________________________________________________________________________________________________________
See accompanying notes to financial statements.
Liabilities
___________________________________________________________________________________________________________
Payable to IDS Life of New York for:
Mortality and expense risk fee 2,173 134 86 149 10,079
Administrative charge 435 27 17 30 2,016
Payable to mutual fund portfolios for investments
purchased - - - 20,517 20,517
___________________________________________________________________________________________________________
Total liabilities 2,608 161 103 20,696 32,612
___________________________________________________________________________________________________________
Net assets applicable to contracts in accumulation
period $2,158,252 $217,606 $154,121 $316,517 $10,404,507
___________________________________________________________________________________________________________
Accumulation units outstanding 2,092,599 211,477 148,221 315,305
___________________________________________________________________________________________________________
Net asset value per accumulation unit $ 1.03 $ 1.03 $ 1.04 $ 1.00
___________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 49
IDS Life of New York Account SBS
_________________________________________________________________________________________________________________
Statements of Operations For the period from March 15, 1993 (commencement of operations) to Dec. 31, 1993
____________________________________Segregated Asset Subaccounts___________________________
BMO BIH BDS BEM BEX BGI
_________________________________________________________________________________________________________________
Investment income (loss):
Dividend income from mutual fund portfolios $4,276 $15,808 $65,366 $31,487 $ 1,078 $18,753
_________________________________________________________________________________________________________________
Expenses:
Mortality and expense risk fee (Note 3) 2,236 5,096 11,538 9,285 6,789 7,303
Administrative charge (Note 4) 447 1,019 2,308 1,857 1,358 1,461
_________________________________________________________________________________________________________________
Total expenses 2,683 6,115 13,846 11,142 8,147 8,764
_________________________________________________________________________________________________________________
Investment income (loss) - net 1,593 9,693 51,520 20,345 (7,069) 9,989
_________________________________________________________________________________________________________________
Realized and Unrealized Gain (Loss) on Investments - net
_________________________________________________________________________________________________________________
Realized gain (loss) on sales of investments in
mutual fund portfolios:
Proceeds from sales 144,042 19,256 25,605 50,686 22,967 89,564
Cost of investments sold 144,042 19,063 25,517 50,949 22,847 87,596
_________________________________________________________________________________________________________________
Net realized gain (loss) on investments - 193 88 (263) 120 1,968
Net change in unrealized appreciation or
depreciation of investments - 4,680 21,549 (25,436) 47,956 43,985
_________________________________________________________________________________________________________________
Net gain (loss) on investments - 4,873 21,637 (25,699) 48,076 45,953
_________________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting
from operations $1,593 $14,566 $73,157 $ (5,354) $41,007 $55,942
_________________________________________________________________________________________________________________
* Commenced operations on Dec. 2, 1993.
See accompanying notes to financial statements.
<PAGE>
PAGE 50
IDS Life of New York Account SBS
_______________________________________________________________________________________________________
Statements of Operations For the period from March 15, 1993 (commencement of operations) to Dec. 31, 1993
Combined
____________________________Segregated Asset Subaccounts_____________ Variable
BAP BTR* BEG* BIE* Account
_______________________________________________________________________________________________________
Investment income (loss):
Dividend income from mutual fund portfolios $ 2,545 - - - $139,313
_______________________________________________________________________________________________________
Expenses:
Mortality and expense risk fee (Note 3) 12,231 134 86 149 54,847
Administrative charge (Note 4) 2,446 27 17 30 10,970
_______________________________________________________________________________________________________
Total expenses 14,677 161 103 179 65,817
_______________________________________________________________________________________________________
Investment income (loss) - net (12,132) (161) (103) (179) 73,496
_______________________________________________________________________________________________________
Realized and Unrealized Gain (Loss) on Investments - net
_______________________________________________________________________________________________________
Realized gain (loss) on sales of investments in
mutual fund portfolios:
Proceeds from sales 37,147 31,832 27,499 27,389 475,987
Cost of investments sold 36,252 31,251 27,499 27,595 472,611
_______________________________________________________________________________________________________
Net realized gain (loss) on investments 895 581 - (206) 3,376
Net change in unrealized appreciation or
depreciation of investments 88,084 3,583 5,242 1,808 191,451
_______________________________________________________________________________________________________
Net gain (loss) on investments 88,979 4,164 5,242 1,602 194,827
_______________________________________________________________________________________________________
Net increase (decrease) in net assets resulting
from operations $76,847 $4,003 $5,139 $1,423 $268,323
_______________________________________________________________________________________________________
* Commenced operations on Dec. 2, 1993.
See accompanying notes to financial statements.
<PAGE>
PAGE 51
IDS Life of New York Account SBS
_______________________________________________________________________________________________________________________
Statements of Changes in Net Assets For the period from March 15, 1993 (commencement of operations) to Dec. 31, 1993
____________________________________Segregated Asset Subaccounts_________________________________
Operations BMO BIH BDS BEM BEX BGI
_______________________________________________________________________________________________________________________
Investment income (loss) - net $1,593 $9,693 $51,520 $20,345 ($7,069) $9,989
Net realized gain (loss) on investments - 193 88 (263) 120 1,968
Net change in unrealized appreciation
or depreciation of investments - 4,680 21,549 (25,436) 47,956 43,985
_______________________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting
from operations 1,593 14,566 73,157 (5,354) 41,007 55,942
_______________________________________________________________________________________________________________________
Contract Transactions
_______________________________________________________________________________________________________________________
Variable annuity contract purchase payments 562,833 753,883 2,109,639 1,525,286 1,111,973 1,351,318
Net transfers* (108,550) - 7,807 118,799 11,012 8,558
Contract terminations:
Surrender benefits (3,213) (13,121) (4,627) (41,161) - (13,336)
_______________________________________________________________________________________________________________________
Increase from contract transactions 451,070 740,762 2,112,819 1,602,924 1,122,985 1,346,540
_______________________________________________________________________________________________________________________
Net assets at beginning of period - - - - - -
_______________________________________________________________________________________________________________________
Net assets at end of period $452,663 $755,328 $2,185,976 $1,597,570 $1,163,992 $1,402,482
_______________________________________________________________________________________________________________________
Accumulation Unit Activity
_______________________________________________________________________________________________________________________
Units outstanding at beginning of period - - - - - -
Contract purchase payments 560,849 745,580 2,052,140 1,487,108 1,117,604 1,339,170
Net transfers* (107,925) - 7,522 115,058 10,812 8,481
Contract terminations:
Surrender benefits (3,197) (12,758) (4,478) (41,072) - (12,948)
_______________________________________________________________________________________________________________________
Units outstanding at end of period 449,727 732,822 2,055,184 1,561,094 1,128,416 1,334,703
_______________________________________________________________________________________________________________________
*Includes transfer activity from (to) other subaccounts and transfers from (to) IDS Life of New York's Fixed Account.
**Commenced operations on Dec. 2, 1993.
See accompanying notes to financial statements.
<PAGE>
PAGE 52
IDS Life of New York Account SBS
____________________________________________________________________________________________________________
Statements of Changes in Net Assets For the period from March 15, 1993 (commencement of operations) to Dec. 31, 1993
Combined
________________Segregated Asset Subaccounts_____________________________ Variable
Operations BAP BTR** BEG** BIE** Account
____________________________________________________________________________________________________________
Investment income (loss) - net ($12,132) ($161) ($103) ($179) $73,496
Net realized gain (loss) on investments 895 581 - (206) 3,376
Net change in unrealized appreciation
or depreciation of investments 88,084 3,583 5,242 1,808 191,451
____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting
from operations 76,847 4,003 5,139 1,423 268,323
____________________________________________________________________________________________________________
Contract Transactions
____________________________________________________________________________________________________________
Variable annuity contract purchase payments 2,077,508 152,294 145,957 286,858 10,053,541
Net transfers* 24,145 61,309 3,025 28,236 154,341
Contract terminations:
Surrender benefits (20,248) - - - (71,698)
____________________________________________________________________________________________________________
Increase from contract transactions 2,081,405 213,603 148,982 315,094 10,136,184
____________________________________________________________________________________________________________
Net assets at beginning of period - - - - -
____________________________________________________________________________________________________________
Net assets at end of period $2,158,252 $217,606 $154,121 $316,517 $10,404,507
____________________________________________________________________________________________________________
Accumulation Unit Activity
____________________________________________________________________________________________________________
Units outstanding at beginning of period - - - -
Contract purchase payments 2,088,753 150,807 145,262 286,995
Net transfers* 23,773 60,670 2,959 28,310
Contract terminations:
Surrender benefits (19,927) - - -
____________________________________________________________________________________________________________
Units outstanding at end of period 2,092,599 211,477 148,221 315,305
____________________________________________________________________________________________________________
*Includes transfer activity from (to) other subaccounts and transfers from (to) IDS Life of New York's Fixed Account.
**Commenced operations on Dec. 2, 1993.
See accompanying notes to financial statements./TABLE
<PAGE>
PAGE 53
Notes to Financial Statements
___________________________________________________________________
1. Organization
IDS Life of New York Account SBS (the Variable Account) was
established on Oct. 8, 1991 as a single unit investment trust of
IDS Life Insurance Company of New York (IDS Life of New York) under
the Investment Company Act of 1940, as amended (the "1940 Act").
Operations of the Variable Account commenced on March 15, 1993.
The Variable Account is comprised of various subaccounts. Each
subaccount invests exclusively in shares of ten portfolios of the
Shearson Series Fund. The assets of each subaccount of the
Variable Account are not chargeable with liabilities arising out of
the business conducted by any other Subaccount, Account or by IDS
Life of New York. Purchase payments are allocated to any or all
ten subaccounts or in the Fixed Account. The purchase payments
allocated to the subaccounts are then invested in shares of the
specific portfolio(s) selected.
Smith Barney Shearson Series Fund (the mutual fund) is registered
under the 1940 Act as a diversified, open-end management investment
company. The mutual fund currently offers a selection of ten
Portfolios. Purchase payments allocated to the Money Market (BMO)
subaccount invest in shares of the Money Market Portfolio, the
Intermediate High Grade (BIH) subaccount invests in shares of the
Intermediate High Grade Portfolio; the Diversified Strategic Income
(BDS) subaccount invests in shares of the Diversified Strategic
Income Portfolio; the Equity Income (BEM) subaccount invests in
shares of the Equity Income Portfolio; the Equity Index (BEX)
subaccount invests in shares of the Equity Index Portfolio; the
Growth & Income (BGI) subaccount invests in shares of the Growth &
Income Portfolio; the Appreciation (BAP) subaccount invests in
shares of the Appreciation Portfolio; the Total Return (BTR)
subaccount invests in shares of the Total Return Portfolio; the
Emerging Growth (BEG) subaccount invests in shares of the Emerging
Growth Portfolio; and the International Equity (BIE) subaccount
invests in shares of the International Equity Portfolio.
IDS Life, parent company of IDS Life of New York, serves as manager
and investment adviser for the Variable Account. Smith Barney
Shearson serves as distributor for the Fund. Greenwich Street
Advisors serves as investment adviser to the Money Market
Portfolio, the Intermediate High Grade Portfolio, the Diversified
Strategic Income Portfolio, the Equity Income Portfolio and the
Growth & Income Portfolio. PanAgora Asset Management Inc. serves
as investment adviser to the Equity Index Portfolio. Smith Barney
Shearson Asset Management Division of Smith Barney Advisers, Inc.
serves as investment adviser to the Appreciation Portfolio and
Total Return Portfolio. Smith Barney Advisers, Inc. serves as
investment adviser to the International Equity Portfolio. American
Capital Asset Management, Inc. serves as investment adviser to the
Emerging Growth Portfolio. Smith Barney Global Capital Management,
Inc. serves as sub-investment adviser to the Diversified Strategic
Income Portfolio. The Boston Company Advisors, Inc. serves as
administrator to each Portfolio. Boston Safe Deposit and Trust
Company serves as the custodian for the Portfolios.
___________________________________________________________________
PAGE 54
2. Summary of Significant Accounting Policies
Investments in the Mutual Fund Investments in shares of the
Portfolio(s) of the Fund are stated at market value which is the
net asset value per share as determined by the respective
portfolio. Investment transactions are accounted for on the date
the shares are purchased and sold. The cost of investments sold
and redeemed is determined on the average cost method. Dividend
distributions received from the portfolios are reinvested, net of
any expense payable to IDS Life of New York, in additional shares
of the portfolios and are recorded as income by the subaccounts on
the ex-dividend date.
Unrealized appreciation or depreciation of investments in the
accompanying financial statements represents the subaccounts' share
of the portfolios' undistributed net investment income,
undistributed realized gain or loss and the unrealized appreciation
or depreciation on their investment securities.
Federal Income Taxes IDS Life of New York is taxed as a life
insurance company. The Variable Account is treated as part of IDS
Life of New York for federal income tax purposes. Under existing
federal income tax law, no income taxes are payable with respect to
any investment income of the Variable Account.
___________________________________________________________________
3. Mortality and Expense Risk Fee
IDS Life of New York makes guarantees to the Variable Account
thatpossible future adverse changes in administrative expenses
andmortality experience of the annuitants will not affect the
Variable Account. The mortality and expense risk fee paid to IDS
Life of New York is deducted daily and is equal, on an annual
basis, to 1.25 percent of the daily net asset value of each
subaccount.
___________________________________________________________________
4. Variable Account Administrative Charge
IDS Life of New York deducts a daily charge equal, on an annual
basis, to 0.25 percent of the daily net asset value of each
subaccount. It covers certain administrative and operating
expenses of the subaccounts incurred by IDS Life of New York such
as accounting, legal and data processing fees, and expenses
involved in the preparation and distribution of reports and
prospectuses.
___________________________________________________________________
5. Certificate Administrative Charge
IDS Life of New York deducts an administrative charge of $30 per
year on each certificate anniversary. This charge reimburses IDS
Life of New York for expenses incurred in establishing and
maintaining the Annuity records. This charge cannot be increased
and does not apply after a retirement payment plan begins. IDS
Life of New York does not expect to profit from this charge.
___________________________________________________________________
6. Surrender Charge
IDS Life of New York will use a surrender charge to help it recover
certain expenses relating to the sale of the Annuity. The
surrender charge will be deducted for surrenders during the first<PAGE>
PAGE 55
six payment years following a purchase payment. Charges by IDS
Life of New York for surrenders are not available on an individual
segregated asset account basis. Charges for all segregated asset
accounts amount to $151,536 in 1993. Such charges are not an
expense of the subaccounts or Variable Account. They are deducted
from contract surrender benefits paid by IDS Life of New York.
___________________________________________________________________
7. Investment Transactions
The subaccounts' purchases of portfolio shares (net of charges),
including reinvestment of dividend distributions, were as follows:
<TABLE> <CAPTION>
For the period from March 15, 1993
(commencement of operations) to
Subaccount Investment Dec. 31, 1993
_____________________________________________________________________
<S> <C> <C>
BMO Money Market Portfolio $ 596,640
BIH Intermediate High Grade Portfolio 770,636
BDS Diversified Strategic Income Portfolio 2,192,546
BEM Equity Income Portfolio 1,675,871
BEX Equity Index Portfolio 1,140,208
BGI Growth & Income Portfolio 1,447,774
BAP Appreciation Portfolio 2,109,028
*BTR Total Return Portfolio 245,435
*BEG Emerging Growth Portfolio 176,481
*BIE International Equity Portfolio 342,483
_____________________________________________________________________
$10,697,102
_____________________________________________________________________
</TABLE>
*Commenced operations on Dec. 2, 1993. <PAGE>
PAGE 56
IDS Life of New York Financial Information
___________________________________________________________________
The financial statements shown below are those of the insurance
company and not those of IDS Life of New York Account SBS. They are
included in the prospectus for the purpose of informing investors
as to the financial condition of the insurance company and its
ability to carry out its obligations under the variable life
insurance contracts.
<TABLE><CAPTION>
IDS Life Insurance Company of New York
______________________________________________________________________________________________________________________________
Balance Sheets Dec. 31, 1993 Dec. 31, 1992
Assets (Thousands)
______________________________________________________________________________________________________________________________
<S> <C> <C>
Investments:
Fixed maturities (Fair value: 1993, $1,240,593; 1992, $1,172,029) $1,171,023 $1,127,809
Mortgage loans on real estate (Fair value: 1993, $124,030; 1992, $64,693) 123,337 62,008
Policy loans 12,952 10,845
Other investments 2,239 2,895
______________________________________________________________________________________________________________________________
Total investments 1,309,551 1,203,557
______________________________________________________________________________________________________________________________
Cash and cash equivalents - 3,248
Accrued investment income 21,342 19,866
Deferred policy acquisition costs 87,891 77,269
Other assets 2,270 1,446
Assets held in segregated asset accounts, primarily common stocks at market 380,796 214,593
______________________________________________________________________________________________________________________________
Total assets $1,801,850 $1,519,979
______________________________________________________________________________________________________________________________
Liabilities and Stockholder's Equity
______________________________________________________________________________________________________________________________
Liabilities:
Fixed annuities - future policy benefits $1,059,005 $ 966,645
Universal life-type insurance - future policy benefits 120,917 114,286
Traditional life, disability income and long-term care insurance - future policy benefits 40,045 40,984
Policy claims and other policyholders' funds 2,347 2,065
Deferred federal income taxes 13,018 13,480
Amounts due to brokers 4,952 15,400
Other liabilities 20,311 15,963
Liabilities related to segregated asset accounts 380,796 214,593
______________________________________________________________________________________________________________________________
Total liabilities 1,641,391 1,383,416
______________________________________________________________________________________________________________________________
Stockholder's equity:
Capital stock, $10 par value per share; 200,000 shares authorized, issued and outstanding 2,000 2,000
Additional paid-in capital 49,000 49,000
Net unrealized appreciation on equity securities 24 12
Retained earnings 109,435 85,551
______________________________________________________________________________________________________________________________
Total stockholder's equity 160,459 136,563
______________________________________________________________________________________________________________________________
Total liabilities and stockholder's equity $1,801,850 $1,519,979
Commitments and contingencies (Note 7)
______________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 57<TABLE><CAPTION>
______________________________________________________________________________________________________________________________
Statements of Income Years ended Dec. 31,
1993 1992 1991
(Thousands)
______________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Revenues:
Traditional life, disability income and long-term care insurance premiums $ 7,110 $ 6,282 $ 5,289
Policyholder and contractholder charges 9,634 8,359 7,356
Mortality and expense risk fees 2,904 1,696 1,081
Net investment income 110,147 102,071 94,630
Net gain (loss) on investments 1,334 2,478 (3,598)
______________________________________________________________________________________________________________________________
Total revenues 131,129 120,886 104,758
______________________________________________________________________________________________________________________________
Benefits and expenses:
Death and other benefits - traditional life, disability income and
long-term care insurance 5,715 5,705 7,359
Death and other benefits - universal life-type insurance
and investment contracts 2,465 2,133 2,058
Decrease in liabilities for future policy benefits for traditional
life, disability income and long-term care insurance (1,343) (855) (2,494)
Interest credited on universal life-type insurance and investment contracts 68,987 68,487 65,232
Amortization of deferred policy acquisition costs 10,434 8,137 6,919
Other insurance and operating expenses 7,652 6,403 4,919
______________________________________________________________________________________________________________________________
Total benefits and expenses 93,910 90,010 83,993
______________________________________________________________________________________________________________________________
Income before income taxes 37,219 30,876 20,765
______________________________________________________________________________________________________________________________
Income taxes 13,335 10,914 6,908
______________________________________________________________________________________________________________________________
Net income $ 23,884 $ 19,962 $ 13,857
______________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 58
<TABLE><CAPTION>
______________________________________________________________________________________________________________________________
Statements of Cash Flows Years ended Dec. 31,
1993 1992 1991
(Thousands)
______________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Cash flows from operating activities:
Net income $ 23,884 $ 19,962 $ 13,857
Adjustments to reconcile net income to net cash provided by operating activities:
Issuance - policy loans, excluding universal life-type insurance (1,044) (635) (290)
Repayment - policy loans, excluding universal life-type insurance 455 327 200
Change in accrued investment income (1,476) (1,797) (812)
Change in deferred policy acquisition costs, net (10,622) (10,974) (8,487)
Change in liabilities for future policy benefits for traditional life, disability
income and long-term care insurance (939) (855) (2,494)
Change in policy claims and other policyholders' funds 282 592 (92)
Change in deferred federal income taxes (449) 1,302 (749)
Change in other liabilities 4,348 466 (276)
Accretion of discount, net (1,598) (1,410) (954)
Net (gain) loss on investments (1,334) (2,478) 3,598
Premiums related to universal life-type insurance 15,141 13,919 14,978
Surrenders and death benefits related to universal life-type insurance (9,785) (5,976) (5,920)
Interest credited to account balances related to universal life-type insurance 6,892 7,168 7,021
Policyholder and contractholder charges, non-cash (5,663) (5,452) (5,129)
Other, net (780) 700 (1,051)
______________________________________________________________________________________________________________________________
Net cash provided by operating activities $ 17,312 $ 14,859 $ 13,400
______________________________________________________________________________________________________________________________
Cash flows from investing activities:
Acquisition of investments, excluding policy loans $(397,102) $(440,037) $(247,841)
Maturities, sinking fund payments and calls of investments, excluding policy loans 264,994 210,179 60,250
Sale of investments, excluding policy loans 31,152 68,537 84,794
Change in amounts due to brokers (10,448) 12,249 (1,193)
______________________________________________________________________________________________________________________________
Net cash used in investing activities (111,404) (149,072) (103,990)
______________________________________________________________________________________________________________________________
Cash flows from financing activities:
Considerations received related to investment contracts 149,269 159,913 111,553
Surrenders and death benefits related to investment contracts (119,158) (80,632) (75,878)
Interest credited to account balances related to investment contracts 62,250 61,319 58,211
Issuance - universal life-type insurance policy loans (3,403) (3,668) (3,061)
Repayment - universal life-type insurance policy loans 1,886 1,548 1,663
Cash dividend to parent - (6,000) -
______________________________________________________________________________________________________________________________
Net cash provided by financing activities 90,844 132,480 92,488
______________________________________________________________________________________________________________________________
Net increase (decrease) in cash and cash equivalents (3,248) (1,733) 1,898
Cash and cash equivalents at beginning of year 3,248 4,981 3,083
______________________________________________________________________________________________________________________________
Cash and cash equivalents at end of year $ - $ 3,248 $ 4,981
______________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 59
Notes to Financial Statements ($ Thousands)
Dec. 31, 1993, 1992 and 1991
1. Summary of significant accounting policies
Nature of business
IDS Life Insurance Company of New York (the Company) is engaged in
the insurance and annuity business in the state of New York and
sells various forms of fixed and variable individual life
insurance, individual disability income and long-term care
insurance, and single and installment premium fixed and variable
annuities.
Basis of presentation
The Company is a wholly owned subsidiary of IDS Life Insurance
Company (IDS Life), which is a wholly owned subsidiary of IDS
Financial Corporation (IDS), which is a wholly owned subsidiary of
American Express Company. The accompanying financial statements
have been prepared in conformity with generally accepted accounting
principles which vary in certain respects from reporting practices
prescribed or permitted by state insurance regulatory authority as
reconciled in Note 9. Also, the accompanying financial statements
are presented on a historical cost basis without adjustment of the
net assets attributable to the 1984 acquisition of IDS by American
Express Company.
Investments
Investments in fixed maturities are carried at cost, adjusted where
appropriate for amortization of premiums and accretion of
discounts. Mortgage loans on real estate are carried principally
at the unpaid principal balances of the related loans. Policy
loans are carried at the aggregate of the unpaid loan balances
which do not exceed the cash surrender values of the related
policies. Other investments include interest rate caps and equity
securities. When evidence indicates a decline, which is other than
temporary, in the underlying value or earning power of individual
investments, such investments are written down to the estimated
realizable value by a charge to income. Equity securities are
carried at market value and the related net unrealized appreciation
or depreciation is reported as a credit or charge to stockholder's
equity.
The Company has the ability and the intent to recover the costs of
these investments by holding them for the forseeable future. The
ability to hold investments to scheduled maturity dates is
dependent on, among other things, annuity contract owners
maintaining their annuity contracts in force.
The Company will implement, effective January 1, 1994, Statement of
Financial Accounting Standards No. 115, "Accounting for Certain
Investments in Debt and Equity Securities." Under the new rules,
debt securities that the Company has both the positive intent and
ability to hold to maturity will be carried at amortized cost.
Debt securities that the Company does not have the positive intent
and ability to hold to maturity and all marketable equity
securities will be classified as available-for-sale and carried at
fair value. Unrealized gains and losses on securites classified as
<PAGE>
PAGE 60
1. Summary of significant accounting policies (continued)
available-for-sale will be carried as a separate component of
stockholder's equity. The effect of the new rules will be to
increase stockholder's equity by approximately $12 million, net of
taxes, as of January 1, 1994, but the new rules will have no
material impact on the Company's results of operations.
Realized investment gain or loss is determined on an identified
cost basis.
Interest rate cap contracts are purchased to reduce the Company's
exposure to rising interest rates which would increase the cost of
future policy benefits for interest sensitive products. Costs are
amortized over the lives of the agreements and benefits are
recognized when realized.
Prepayments are anticipated on certain investments in
mortgage-backed securities in determining the constant effective
yield used to recognize interest income. Prepayment estimates are
based on information received from brokers who deal in
mortgage-backed securities.
Statement of cash flows
The Company considers investments with a maturity at the date of
their acquisition of three months or less to be cash equivalents.
These securities are carried principally at amortized cost which
approximates fair value.
Supplementary information to the statement of cash flows for the
years ended Dec. 31 is summarized as follows:
1993 1992 1991
___________________________________________________________________
Cash paid during the year for:
Income taxes $14,138 $9,193 $7,093
Interest on borrowings 235 132 41
___________________________________________________________________
Recognition of profits on annuity contracts and insurance policies
The Company issues single premium deferred annuity contracts that
provide for a service fee (surrender charge) at annually decreasing
rates upon withdrawal of the annuity accumulation value by the
contract owner. No sales fee is deducted from the contract
considerations received on these contracts ("no load" annuities).
Single premium deferred annuities issued prior to 1980 had a sales
fee and no surrender charge. All of the Company's single premium
deferred annuity contracts provide for crediting the contract
owners' accumulations at specified rates of interest. Such rates
are revised by the Company from time to time based on changes in
the market investment yield rates for fixed-income securities.
Profits on single premium deferred annuities and installment
annuities are recognized by the Company over the lives of the
contracts and represent the excess of investment income earned
from investment of contract considerations over interest credited
to contract owners and other expenses.
<PAGE>
PAGE 61
1. Summary of significant accounting policies (continued)
The retrospective deposit method is used in accounting for
universal life-type insurance. This method recognizes profits over
the lives of the policies in proportion to the estimated gross
profits expected to be realized.
Premiums on traditional life, disability income and long-term care
insurance policies are recognized as revenue when collected or due,
and related benefits and expenses are associated with premium
revenue in a manner that results in recognition of profits over the
lives of the insurance policies. This association is accomplished
by means of the provision for future policy benefits and the
deferral and subsequent amortization of policy acquisition costs.
Deferred policy acquisition costs
The costs of acquiring new business, principally sales
compensation, policy issue costs, underwriting and certain sales
expenses, have been deferred on insurance and annuity contracts.
The deferred acquisition costs for single premium deferred
annuities and installment annuities are amortized based upon
surrender charge revenue and a portion of the excess of investment
income earned from investment of the contract considerations over
the interest credited to contract owners. The costs for universal
life-type insurance are amortized over the lives of the policies as
a percentage of the estimated gross profits expected to be realized
on the policies. For traditional life, disability income and
long-term care insurance policies, the costs are amortized over an
appropriate period in proportion to premium revenue.
Liabilities for future policy benefits
Liabilities for universal life-type insurance, single premium
deferred annuities and installment annuities are accumulation
values.
Liabilities for fixed annuities in a benefit status are based on
the Progressive Annuity Table with interest at 5 percent, the 1971
Individual Annuity Table with interest at 7 percent or 8.25
percent, or the 1983a Table with various interest rates ranging
from 5.5 percent to 9.5 percent, depending on year of issue.
Liabilities for future benefits on traditional life insurance have
been computed principally by the net level premium method, based on
anticipated rates of mortality (approximating the 1965-1970 Select
and Ultimate Basic Table for policies issued after 1980 and the
1955-1960 Select and Ultimate Basic Table for policies issued prior
to 1981), policy persistency derived from IDS Life's experience
data (first-year rates ranging from approximately 70 percent to 90
percent and increasing rates thereafter), and estimated future
investment yields of 4 percent for policies issued before 1974 and
5.25 percent for policies issued from 1974 to 1980. Cash value
plans issued in 1980 and later assume future investment rates that
grade from 9.5 percent to 5 percent over 20 years. Term insurance
issued from 1981 to 1984 assumes an 8 percent level investment
rate, and term insurance issued after 1984 assumes investment rates
that grade from 10 percent to 6 percent over 20 years.
<PAGE>
PAGE 62
1. Summary of significant accounting policies (continued)
Liabilities for future disability income policy benefits have been
computed principally by the net level premium method, based on the
1964 Commissioners Disability Table with the 1958 Commissioners
Standard Ordinary Mortality Table at 3 percent interest for 1980
and prior, 8 percent interest for persons disabled from 1981 to
1991 and 6 percent interest for persons disabled after 1991.
Liabilities for future benefits on long-term care insurance have
been computed principally by the net level premium method, using
morbidity rates based on the 1985 National Nursing Home Survey and
mortality rates based on the 1983a Table. The interest rate basis
is 9.5 percent grading to 7 percent over ten years for policies
issued from 1989 to 1992, 7.75 percent grading to 7 percent over
four years for policies issued after 1992, 8 percent for claims
incurred in 1989 to 1991 and 6 percent for claims incurred after
1991.
At Dec. 31, 1993 and 1992, the carrying amount and fair value of
fixed annuities future policy benefits, after excluding life
insurance-related contracts carried at $54,911 and $50,316, were
$1,004,095 and $916,329, and $970,169 and $884,021, respectively.
The fair value is net of policy loans of $1,085 and $488 at Dec.
31, 1993 and 1992, respectively. The fair value of these benefits
is based on the status of the annuities at Dec. 31, 1993 and 1992.
The fair value of deferred annuities is estimated as the carrying
amount less any surrender charges and related loans. The fair
value for annuities in non-life contingent payout status is
estimated as the present value of projected benefit payments at the
rate appropriate for contracts issued in 1993 and 1992,
respectively.
Reinsurance
The maximum amount of life insurance risk retained by the Company
on any one life is $750 of life and waiver of premium benefits plus
$50 of accidental death benefits. The maximum amount of disability
income risk retained by the Company on any one life is $6 of
monthly benefit for benefit periods longer than three years. The
excesses are reinsured with other life insurance companies on a
yearly renewable term basis.
In 1993 the Company adopted Statement of Financial Accounting
Standard (SFAS) No. 113, "Accounting and Reporting for Reinsurance
of Short-Duration and Long-Duration Contracts." Under SFAS No.
113, amounts paid or deemed to have been paid for reinsurance
contracts are recorded as reinsurance receivables. These amounts
have been included in other assets on the balance sheet. Prior to
1993, these amounts were recorded as a reduction of the liability
for future insurance policy benefits. The cost of reinsurance is
accounted for over the period covered by the reinsurance contract.
Federal income taxes
The Company's taxable income is included in the consolidated
federal income tax return of American Express Company. The Company
provides for income taxes on a separate return basis, except that,
under an agreement between IDS and American Express Company, tax
<PAGE>
PAGE 63
1. Summary of significant accounting policies (continued)
benefit is recognized for losses to the extent they can be used on
the consolidated tax return. It is the policy of IDS and its
subsidiaries that IDS will reimburse a subsidiary for any tax
benefit.
Included in other liabilities at Dec. 31, 1993 and 1992 are $3,462
and $3,083, respectively, payable to IDS Life for federal income
taxes.
Segregated asset account business
The segregated asset account assets and liabilities represent funds
held for the exclusive benefit of the variable annuity and variable
life insurance contract owners. The Company receives a monthly
cost of insurance charge and receives a minimum death benefit
guarantee fee from variable life insurance segregated asset
accounts and a mortality and expense assurance fee from the
variable annuity and variable life insurance segregated asset
accounts.
The Company makes contractual mortality assurances to the variable
annuity contract owners that the net assets of the segregated asset
accounts will not be affected by future variations in the actual
life expectancy experience of the annuitants and the beneficiaries
from the mortality assumptions implicit in the annuity contracts.
The Company makes periodic fund transfers to, or withdrawals from,
the segregated asset accounts for such actuarial adjustments for
variable annuities that are in the benefit payment period. The
Company guarantees, for the variable life insurance policyholders,
the cost of the contractual insurance rate and that the death
benefit will never be less than the death benefit at the date of
issuance.
At Dec. 31, 1993 and 1992 the fair value of liabilities related to
segregated asset accounts was $339,122 and $190,300, respectively.
The fair value of these liabilities is estimated as the carrying
amount less variable insurance contracts carried at $23,620 and
$14,010, respectively, and surrender charges, if applicable.
Reclassification
Certain 1992 and 1991 amounts have been reclassified to conform to
the 1993 presentation.
2. Investments
Market values of investments in fixed maturities represent quoted
market prices and estimated fair values when quoted prices are not
available. Estimated fair values are determined by established
procedures involving, among other things, review of market indices,
price levels of current offerings of comparable issues, price
estimates and market data from independent brokers and financial
files.
Changes in net unrealized appreciation (depreciation) of fixed
maturities for the years ended Dec. 31, 1993, 1992 and 1991 were
$25,350, $(10,980) and $60,200, respectively.
<PAGE>
PAGE 64
2. Investments (continued)
Net gain (loss) on investments for the years ended Dec. 31 is
summarized as follows:
1993 1992 1991
__________________________________________________________________
Fixed maturities $1,809 $ 173 $ (694)
Other investments (37) 26 -
__________________________________________________________________
1,772 199 (694)
Net decrease (increase)
in allowance for losses (438) 2,279 (2,904)
__________________________________________________________________
$1,334 $2,478 $(3,598)
__________________________________________________________________
Fair values of and gross unrealized gains and losses on investments
in fixed maturities carried at amortized cost at Dec. 31 are as
follows:
<TABLE><CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
1993 Cost Gains Losses Value
_____________________________________________________________________________________________
<S> <C> <C> <C> <C>
U.S. Government agency obligations $ 400 $ 40 $ - $ 440
State and municipal obligations 105 15 - 120
Corporate bonds and obligations 747,474 60,482 3,510 804,446
Mortgage-backed securities 424,696 15,265 4,374 435,587
_____________________________________________________________________________________________
1,172,675 75,802 7,884 1,240,593
Less allowance for losses 1,652 - 1,652 -
_____________________________________________________________________________________________
$1,171,023 $75,802 $ 6,232 $1,240,593
_____________________________________________________________________________________________
Gross Gross
Amortized Unrealized Unrealized Fair
1992 Cost Gains Losses Value
_____________________________________________________________________________________________
U.S. Government agency obligations $ 417 $ 10 $ 4 $ 423
State and municipal obligations 276 7 - 283
Corporate bonds and obligations 634,225 33,634 7,526 660,333
Mortgage-backed securities 494,050 19,500 2,560 510,990
_____________________________________________________________________________________________
1,128,968 53,151 10,090 1,172,029
Less allowance for losses 1,159 - 1,159 -
_____________________________________________________________________________________________
$1,127,809 $53,151 $ 8,931 $1,172,029
_____________________________________________________________________________________________
</TABLE>
The amortized cost and fair value of investments in fixed
maturities at Dec. 31, 1993 by contractual maturity are shown
below. Expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay
obligations with or without call or prepayment penalties.
Amortized Fair
Cost Value
Due in one year or less $ 7,915 $ 8,069
Due from one to five years 124,638 134,461
Due from five to ten years 411,729 444,134
Due in more than ten years 203,697 218,342
Mortgage-backed securities 424,696 435,587
$1,172,675 $1,240,593
<PAGE>
PAGE 65
2. Investments (continued)
Proceeds from sales of investments in fixed maturities during 1993
and 1992 were $26,710 and $67,133, respectively. During 1993 and
1992, gross gains of $4,022 and $6,251, respectively, and gross
losses of $2,213 and $6,078, respectively, were realized on those
sales.
At Dec. 31, 1993, gross and net unrealized appreciation on equity
securities amounted to $18. At Dec. 31, 1992 the amount of net
unrealized appreciation on equity securities included $19 of gross
unrealized appreciation, $1 of gross unrealized depreciation and
deferred taxes of $6. The fair value of equity securities was $190
and $184 at Dec. 31, 1993 and 1992, respectively.
Included in other investments at Dec. 31, 1993 are interest rate
caps at amortized cost of $2,050 with a fair value of $385. These
interest rate caps carry a notional amount of $200,000 and expire
on various dates in 1996 and 1997.
At Dec. 31, 1993, bonds carried at $266 were on deposit with the
state of New York as required by law.
Net investment income for the years ended Dec. 31 is summarized as
follows:
<TABLE><CAPTION>
1993 1992 1991
_______________________________________________________________________
<S> <C> <C> <C>
Interest on fixed maturities $100,940 $ 96,452 $90,935
Interest on mortgage loans 8,424 4,908 3,124
Other investment income 1,220 841 538
Interest on cash equivalents 63 378 389
_______________________________________________________________________
110,647 102,579 94,986
Less investment expenses 500 508 356
_______________________________________________________________________
$110,147 $102,071 $94,630
_______________________________________________________________________
</TABLE>
At Dec. 31, 1993, investments in fixed maturities comprised 89
percent of the Company's total invested assets. Securities are
rated by Moody's and Standard & Poor's (S&P) except for
approximately $154 million which is rated by IDS internal analysts
using criteria similar to Moody's and S&P. A summary of
investments in fixed maturities by rating on Dec. 31 is as follows:
Dec. 31, Dec. 31,
Rating 1993 1992
___________________________________________________________________
Aaa/AAA $ 425,404 $ 492,098
Aa/AA 13,285 16,003
Aa/A 14,213 11,634
A/A 139,878 128,084
A/BBB 62,817 38,572
Baa/BBB 343,233 314,047
Baa/BB 55,812 39,444
Below investment grade 118,033 89,086
___________________________________________________________________
$1,172,675 $1,128,968
___________________________________________________________________
<PAGE>
PAGE 66
2. Investments (continued)
At Dec. 31, 1993, 99 percent of the securities rated Aaa/AAA are
GNMA, FNMA and FHLMC mortgage-backed securities. No holdings of
any other issuer are greater than 1.4 percent of the Company's
total investments in fixed maturities.
At Dec. 31, 1993, approximately 9.4 percent of the Company's
invested assets were mortgage loans on real estate. Summaries of
mortgage loans by region and by type of real estate are as follows:
<TABLE><CAPTION>
Dec. 31, 1993 Dec. 31, 1992
On Balance Commitments On Balance Commitments
Region Sheet to Purchase Sheet to Purchase
________________________________________________________________________________________
<S> <C> <C> <C> <C>
West North Central $ 27,349 $ 1,713 $25,305 $ -
East North Central 28,349 2,569 13,525 4,510
South Atlantic 26,423 8,279 10,669 5,261
Middle Atlantic 15,912 8,564 4,709 8,018
Pacific 12,224 - 4,527 3,508
Mountain 6,723 4,568 2,588 1,002
New England 4,858 2,855 1,185 1,754
East South Central 1,646 - - 1,002
West South Central 298 - - -
________________________________________________________________________________________
123,782 28,548 62,508 25,055
Less allowance for losses 445 - 500 -
________________________________________________________________________________________
$123,337 $28,548 $62,008 $25,055
________________________________________________________________________________________
Dec. 31, 1993 Dec. 31, 1992
On Balance Commitments On Balance Commitments
Property type Sheet to Purchase Sheet to Purchase
________________________________________________________________________________________
Apartments $ 47,178 $15,130 $18,710 $12,778
Department/retail stores 38,253 9,706 22,613 9,020
Office buildings 11,475 1,142 8,219 1,002
Industrial buildings 13,781 1,142 7,510 2,255
Medical buildings 5,229 1,428 3,256 -
Nursing/retirement 5,507 - - -
Other 2,061 - 2,081 -
Hotels/motels 298 - - -
Residential - - 119 -
________________________________________________________________________________________
123,782 28,548 62,508 25,055
Less allowance for losses 445 - 500 -
________________________________________________________________________________________
$123,337 $28,548 $62,008 $25,055
________________________________________________________________________________________
</TABLE>
Mortgage loan fundings are restricted by state insurance regulatory
authority to 80 percent or less of the market value of the real
estate at the time of origination of the loan. The Company holds
the mortgage document, which gives the right to take possession of
the property if the borrower fails to perform according to the
terms of the agreement. The fair value of the mortgage loans is
determined by a discounted cash flow analysis using mortgage
interest rates currently offered for mortgages of similar
maturities. Commitments to purchase mortgages are made in the
ordinary course of business. The fair value of the mortgage
commitments is $nil.
<PAGE>
PAGE 67
3. Income taxes
The Company qualifies as a life insurance company for federal
income tax purposes. As such, the Company is subject to the
Internal Revenue Code provisions applicable to life insurance
companies.
Income tax expense consists of the following:
1993 1992 1991
___________________________________________________________________
Federal income taxes:
Current $13,164 $ 9,037 $7,165
Deferred (449) 1,302 (749)
___________________________________________________________________
12,715 10,339 6,416
State income taxes-Current 620 575 492
___________________________________________________________________
Income tax expense $13,335 $10,914 $6,908
___________________________________________________________________
Increases (decreases) to the federal tax provision applicable to
pretax income based on the statutory rate are attributable to:
<TABLE><CAPTION>
1993 1992 1991
__________________________________________________________________________________________________________
Provision Rate Provision Rate Provision Rate
__________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
Federal income taxes based
on the statutory rate $13,026 35.0% $10,498 34.0% $7,060 34.0%
Increases (decreases) are attributable to:
Tax-excluded interest and dividend income (557) (1.5) (429) (1.4) (452) (2.2)
Other, net 246 0.7 270 0.9 (192) (0.9)
__________________________________________________________________________________________________________
Federal income taxes $12,715 34.2% $10,339 33.5% $6,416 30.9%
__________________________________________________________________________________________________________
</TABLE>
A portion of life insurance company income earned prior to 1984 was
not subject to current taxation but was accumulated, for tax
purposes, in a "policyholders' surplus account." At Dec. 31, 1993,
the Company had a policyholders' surplus account balance of $798.
The policyholders' surplus account is only taxable if dividends to
the stockholder exceed the stockholder's surplus account or if the
Company is liquidated. Deferred income taxes of $279 have not been
established because no distributions of such amounts are
contemplated.
<PAGE>
PAGE 68
3. Income taxes (continued)
Significant components of the Company's deferred tax assets and
liabilities as of Dec. 31 are as follows:
1993 1992
___________________________________________________________________
Deferred tax assets:
Policy reserves $ 15,683 $ 12,088
Other 1,543 893
___________________________________________________________________
Total deferred tax assets 17,226 12,981
___________________________________________________________________
Deferred tax liabilities:
Deferred policy acquisition costs 27,250 24,102
Investments 2,994 2,359
___________________________________________________________________
Total deferred tax liabilities 30,244 26,461
___________________________________________________________________
Net deferred tax liabilities $ 13,018 $ 13,480
___________________________________________________________________
4. Stockholder's equity
Retained earnings available for distribution as dividends to parent
are limited to the Company's surplus as determined in accordance
with accounting practices prescribed by state insurance regulatory
authority. Statutory unassigned surplus aggregated $52,642 as of
Dec. 31, 1993 and $26,468 as of Dec. 31, 1992 (see Note 3 with
respect to the income tax effect of certain distributions). In
addition, any dividend distributions in 1994 in excess of
approximately $5,264 would require approval of the New York
Insurance Department.
Dividends paid to parent were $nil in 1993, $6,000 in 1992 and $nil
in 1991.
The Company is required to maintain a minimum statutory capital
and surplus of $3,000.
5. Retirement plan and services
The Company participates in the retirement plan of IDS which covers
all permanent employees age 21 and over who have met certain
employment requirements. The benefits are based on the number of
years the employee participates in the plan, their final average
monthly salary, the level of social security benefits the employee
is eligible for and the level of vesting the employee has earned in
the plan. IDS' policy is to fund retirement plan costs accrued
subject to ERISA and federal income tax considerations.
The Company's share of the total net periodic pension cost was $nil
in 1993, 1992 and 1991.
The Company has a "Sales Benefit Plan" which is an unfunded,
noncontributory retirement plan for all eligible financial
planners. Total plan costs for 1993, 1992 and 1991, which are
<PAGE>
PAGE 69
5. Retirement plan and services (continued)
calculated on the basis of commission earnings of the individual
financial planners, were $1,042, $1,164 and $757, respectively.
Such costs are included in deferred policy acquisition costs.
The Company also participates in defined contribution pension plans
of IDS which cover all employees who have met certain employment
requirements. Company contributions to the plans are a percent of
either each employee's eligible compensation or basic
contributions. Costs of these plans charged to operations in 1993,
1992 and 1991 were $201, $144 and $146, respectively.
The Company participates in defined benefit health care plans of
IDS that provide health care and life insurance benefits to retired
employees and retired financial planners. The plans include
participant contributions and service-related eligibility
requirements. Upon retirement, such employees are considered to
have been employees of IDS. IDS expenses these benefits and
allocates the expenses to its subsidiaries. Accordingly, costs of
such benefits to the Company are included in employee compensation
and benefits and cannot be identified on a separate company basis.
Certain commission and marketing services expenses are allocated to
the Company by its affiliates. The expenses for 1993, 1992 and
1991 were $5,338, $4,967 and $3,914, respectively. Certain of the
costs assessed to the Company are included in deferred policy
acquisition costs.
6. Incentive plans and operating expenses
The Company maintains a "Persistency Payment Plan." Under the
terms of this plan, financial planners earn additional compensation
based on the volume and persistency of insurance sales. The total
costs for the plan for 1993, 1992 and 1991 were $1,387, $1,252 and
$963, respectively. Such costs are included in deferred policy
acquisition costs.
Charges by IDS Life and IDS for the use of joint facilities and
other services aggregated $7,421, $6,914 and $5,954 for 1993, 1992
and 1991, respectively. Certain of the costs assessed to the
Company are included in deferred policy acquisition costs.
7. Commitments and contingencies
At Dec. 31, 1993 and 1992, traditional life insurance and universal
life-type insurance in force aggregated $2,933,830 and $2,785,218,
respectively, of which $172,973 and $179,976 were reinsured at the
respective year ends.
In addition, the Company has a "stop loss" reinsurance agreement
with IDS Life covering ordinary life benefits. IDS Life agrees to
pay all death benefits incurred each year which exceed 125 percent
of normal claims, where "normal" claims are defined in the
agreement as .095 percent of the mean retained life insurance in
force. Premiums ceded to IDS Life amounted to $67, $60 and $135
for the years ended Dec. 31, 1993, 1992 and 1991, respectively.
Claim recoveries under the terms of this reinsurance agreement were
$nil in 1993, $534 in 1992 and $323 in 1991.<PAGE>
PAGE 70
7. Commitments and contingencies (continued)
Premiums ceded to reinsurers other than IDS Life amounted to $741,
$773 and $800 for the years ended Dec. 31, 1993, 1992 and 1991,
respectively. Reinsurance recovered from reinsurers other than IDS
Life amounted to $379, $186 and $(50) for the years ended Dec.
31, 1993, 1992 and 1991.
Reinsurance contracts do not relieve the Company from its primary
obligations to policyholders.
The Company has an agreement to assume a block of extended term
life insurance business. The amount of insurance in force related
to this agreement was $512,555 and $592,792 at Dec. 31, 1993 and
1992, respectively. The accompanying statement of income includes
premiums of $nil for the years ended Dec. 31, 1993, 1992 and 1991,
and decrease in liabilities for future policy benefits of $3,032,
$3,825 and $4,088 related to this agreement for the years ended
Dec. 31, 1993, 1992 and 1991, respectively.
8. Line of credit
The Company has an available line of credit with a bank aggregating
$20,000 at 80 basis points over the bank's cost of funds.
Outstanding borrowings under this agreement were $1,519 and $nil at
Dec. 31, 1993 and 1992, respectively.<PAGE>
PAGE 71
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the accompanying balance sheets of IDS Life
Insurance Company of New York (a wholly owned subsidiary of IDS
Life Insurance Company) as of December 31, 1993 and 1992, and the
related statements of income and cash flows for each of the three
years in the period ended December 31, 1993. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards 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. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Life Insurance Company of New York at December 31, 1993 and 1992,
and the results of its operations and its cash flows for each of
the three years in the period ended December 31, 1993, in
conformity with generally accepted accounting principles.
ERNST & YOUNG
February 3, 1994
Minneapolis, Minnesota
<PAGE>
PAGE 72
PART C
Item 24. Financial Statements and Exhibits
(a) Financial Statements included in Part B of this Registration
Statement:
IDS Life of New York Account SBS:
Report of Independent Auditors dated March 18, 1994.
Statements of Net Assets at Dec. 31, 1993.
Statements of Operations for the period from March 15,
1993 to Dec. 31, 1993.
Statements of Changes in Net Assets for the period from
March 15, 1993 to Dec. 31, 1993.
Notes to Financial Statements.
IDS Life of New York:
Balance Sheets at Dec. 31, 1993 and Dec. 31, 1992.
Statements of Income for the years ended Dec. 31, 1993,
1992 and 1991.
Statements of Cash Flows for the years ended Dec. 31,
1993, 1992 and 1991.
Notes to Financial Statements.
Report of Independent Auditors dated February 3, 1994.
Exhibits to Financial Statements included in Part C:
Financial Statement Schedules:
Report of Independent Auditors dated February 3, 1994.
Schedule I - Summary of Investments Other than
Investments in Related Parties
Schedule V - Supplementary Insurance Information
Schedule VI - Reinsurance
Schedule VIII - Valuation and Qualifying Accounts
Schedule IX - Short-Term Borrowings
All other schedules to the consolidated financial statements
required by Article 7 of Regulation S-X are not required under
the related instructions or are inapplicable and, therefore,
have been omitted.
(b) Exhibits:
1. Copy of Resolution of the Board of Directors of IDS Life
Insurance Company of New York establishing Account SLB on
October 8, 1991, is filed electronically herewith.
2. Not applicable.
<PAGE>
PAGE 73
3. Form of Distribution Agreement between IDS Life Insurance
Company of New York and Shearson Lehman Brothers Inc., the
principal underwriter, is filed electronically herewith.
4.1 Revised form of Group Flexible Premium Deferred Combination
Fixed and Variable Annuity Contract (No. 39377 GP), is filed
electronically herewith.
4.2 Copy of Group Deferred Variable Annuity Certificate (No.
39377), is filed electronically herewith.
5.1 Revised form of Group Deferred Variable Annuity Application
(No. 38614 GP), is filed electronically herewith.
5.2 Copy of Variable Annuity Group Enrollment Application (No.
38614), is filed electronically herewith.
6.1 Copy of the Revised Charter of IDS Life of New York, dated
April 1992, is filed electronically herewith.
6.2 Copy of the Amended By-Laws of IDS Life of New York, dated May
1992, is filed electronically herewith.
7. Not applicable.
8. Not applicable.
9. Opinion of Counsel and consent to its use as to the legality
of the securities being registered was filed with Registrant's
Rule 24f-2 Notice on or about February 25, 1994.
10. Consent of Independent Auditors, is filed electronically
herewith.
11. Financial Statement Schedules and Report of Independent
Auditors, is filed electronically herewith.
12. Not applicable.
13. Copy of schedule for computation of each performance quotation
provided in the Registration Statement in response to Item 24,
is filed electronically herewith.
14. Power of Attorney, dated April 18, 1994, is filed
electronically herewith.
<PAGE>
PAGE 74
<TABLE><CAPTION>
Item 25. Directors and Officers of the Depositor
Positions and
Name Principal Business Address Offices with Depositor
<S> <C> <C>
Mario Alaia 20 Madison Avenue Extension Claims Officer and
Albany, NY Assistant Secretary
Tracy A. Anderson IDS Tower 10 Treasurer and Chief Actuary
Minneapolis, MN 55440
Darrell C. Beckstrom Underwriting Officer
John C. Boeder 20 Madison Avenue Extension Director, President and
Albany, NY Chief Operating Officer
Michael B. Carlin General Counsel and
Secretary
Roger C. Corea 20 Madison Avenue Extension Director
Albany, NY
Charles A. Cuccinello 20 Madison Avenue Extension Director
Albany, NY
Milton R. Fenster 20 Madison Avenue Extension Director
Albany, NY
Margaret M. Grogan, M.D. Bethlehem Terrace Apts. Medical Director
Slingerland, NY
Lorraine R. Hart Investment Officer
David R. Hubers IDS Tower 10 Director
Minneapolis, MN 55440
Richard W. Kling IDS Tower 10 Director, Chairman of
Minneapolis, MN 55440 the Board and President
Edward Landes IDS Tower 10 Director
Minneapolis, MN 55440
<PAGE>
PAGE 75
Janis E. Miller Director and Executive
Vice President-
Variable Assets
Michael P. Monaco World Financial Center Director
New York, NY
Stephen P. Norman World Financial Center Director
New York, NY
Louise M. Parent World Financial Center Director
New York, NY
Carl Platore Director
Minneapolis, MN
Gordon H. Ritz Director
Minneapolis, MN
F. Dale Simmons IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant Treasurer
Dennis West Assistant Underwriting
Officer
Michael R. Woodward 20 Madison Avenue Extension Director
Albany, NY
/TABLE
<PAGE>
PAGE 76
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
IDS Life Insurance Company of New York is a wholly owned
subsidiary of IDS Life Insurance Company which is a
wholly owned subsidiary of IDS Financial Corporation.
IDS Financial Corporation is a wholly owned subsidiary of
American Express Company (American Express).
The following list includes the names of major
subsidiaries of American Express.
Jurisdiction
Name of Subsidiary of Incorporation
I. Travel Related Services
American Express Travel Related
Services Company, Inc. New York
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Investment Services
Lehman Brothers Inc. Delaware
IV. Companies engaged in Investors
Diversified Financial Services
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Minnesota Foundation Minnesota
American Express Service Corporation Delaware
American Partners Life Insurance Company Minnesota
IDS Advisory Group Inc. Minnesota
IDS Aircraft Services Corporation Minnesota
IDS Cable Corporation Minnesota
IDS Cable II Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
IDS Certificate Company Delaware
IDS Deposit Corp. Utah
IDS Financial Corporation Delaware
IDS Financial Services Inc. Delaware
IDS Fund Management Limited U.K.
IDS Futures Corporation Minnesota
IDS Futures III Corporation Minnesota
IDS Insurance Agency of Alabama Inc. Alabama
IDS Insurance Agency of Arkansas Inc. Arkansas
IDS Insurance Agency of Massachusetts Inc. Massachusetts
IDS Insurance Agency of Mississippi Inc. Mississippi
IDS Insurance Agency of Nevada Inc. Nevada
IDS Insurance Agency of New Mexico Inc. New Mexico
<PAGE>
PAGE 77
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
Jurisdiction
Name of Subsidiary of Incorporation
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Ohio Inc. Ohio
IDS Insurance Agency of Texas Inc. Texas
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS International, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
IDS Management Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Plan Services of California, Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Real Estate Services, Inc. Delaware
IDS Realty Corporation Minnesota
IDS Sales Support Inc. Minnesota
IDS Securities Corporation Delaware
IDS Trust Company Minnesota
Investors Syndicate Development Corp. Nevada
Item 27. Number of Contractowners
On March 31, 1994, there were 113 contract owners of
qualified contracts. There were 368 owners of non-
qualified contracts.
Item 28. Indemnification
The By-Laws of the depositor provide that it shall
indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that
he is or was a director, officer, employee or agent of
this Corporation, or is or was serving at the direction
of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture,
trust or other enterprise, to any threatened, pending or
completed action, suit or proceeding, wherever brought,
to the fullest extent permitted by the laws of the State
of Minnesota, as now existing or hereafter amended,
provided that this Article shall not indemnify or protect
any such director, officer, employee or agent against any
liability to the Corporation or its security holders to
which he would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless
disregard of his obligations and duties.
Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to director, 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 <PAGE>
PAGE 78
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Item 29. Principal Underwriters.
(a) Smith Barney Shearson Inc. currently acts as
principal underwriter for various investment companies
and various series of unit investment trusts.
Smith Barney Shearson Inc. is a wholly owned subsidiary
of Smith Barney Shearson Holdings Inc. ("Holdings") and
an indirect wholly-owned subsidiary of The Travelers Inc.
(b) The information required by this Item 29 with
respect to each director and officer of Smith Barney
Shearson Inc. is incorporated by reference to Schedule A
of Form BD filed by Smith Barney Shearson Inc. pursuant
to the Securities Exchange Act of 1934.
(c) Not applicable.
Item 30. Location of Accounts and Records
IDS Life Insurance Company of New York
20 Madison Avenue Extension
Albany, NY 12203
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a),(b)&(c) These undertakings were filed with Pre-
Effective Amendment No. 1 to Registration
Statement No. 33-45776/811-6560.
(d) Registrant represents that it is relying upon the
no-action assurance given to the American Council of
Life Insurance (pub. avail. Nov. 28, 1988).
Further, Registrant represents that it has complied
with the provisions of paragraphs (1) - (4) of that
no-action letter.
<PAGE>
PAGE 79
SIGNATURES
As required by the Securities Act of 1933 and the Investment
Company Act of 1940, IDS Life Insurance Company of New York, on
behalf of the Registrant, certifies that it meets the requirements
for effectiveness of this Amendment to its Registration Statement
pursuant to Rule 486(b) under the Securities Act of 1933 and has
duly caused this Registration Statement to be signed on its behalf
in the City of Minneapolis, and State of Minnesota, on the 27th day
of April, 1994.
IDS LIFE OF NEW YORK ACCOUNT SBS
(Registrant)
By IDS Life Insurance Company of New York
(Sponsor)
By /s/ Richard W. Kling*
Richard W. Kling
President
As required by the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the
capacities indicated on the 27th day of April, 1994.
Signature Title
/s/ Richard W. Kling* Director and President
Richard W. Kling
/s/ John C. Boeder* Director
John C. Boeder
/s/ Roger C. Corea* Director
Roger C. Corea
/s/ Charles A. Cuccinello* Director
Charles A. Cuccinello
/s/ Milton R. Fenster* Director
Milton R. Fenster
/s/ Edward Landes* Director
Edward Landes
/s/ Michael P. Monaco* Director
Michael P. Monaco
/s/ Stephen P. Norman* Director
Steven P. Norman
/s/ Louise M. Parent* Director
Louise M. Parent
/s/ Carl Platou* Director
Carl Platou
<PAGE>
PAGE 80
Signature Title
/s/ Gordon H. Ritz* Director
Gordon H. Ritz
/s/ Michael R. Woodward* Director
Michael R. Woodward
* Signed pursuant to Power of Attorney, dated April 18, 1994, filed
as Exhibit 14 to Post-Effective Amendment No. 4 to Registration
Statement No. 33-45776 by:
Mary Ellyn Minenko
<PAGE>
PAGE 81
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 4
This Registration Statement is comprised of the following papers
and documents:
The Cover Page.
Cross-reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Financial Statements.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
EXHIBIT INDEX
Exhibit (b)(1) Copy of Resolution of the Board of Directors of
IDS Life Insurance Company of New York
establishing Account SLB on October 8, 1991
Exhibit (b)(3) Form of Distribution Agreement between IDS Life
Insurance Company of New York and Shearson
Lehman Brothers Inc., the principal underwriter
Exhibit (b)(4.1) Revised form of Group Flexible Premium Deferred
Combination Fixed and Variable Annuity Contract
(No. 39337 GP)
Exhibit (b)(4.2) Copy of Group Deferred Variable Annuity
Contract (No. 39377)
Exhibit (b)(5.1) Revised form of Group Deferred Variable Annuity
Application (No. 38614 GP)
Exhibit (b)(5.2) Copy of Variable Annuity Group Enrollment
Application (No. 38614)
Exhibit (b)(6.1) Copy of the Revised Charter of IDS Life of New
York, dated April 1992
Exhibit (b)(6.2) Copy of the Amended By-Laws of IDS Life of New
York, dated May 1992
Exhibit (b)(10) Consent of Independent Auditors
Exhibit (b)(11) Financial Statement Schedules and Report of
Independent Auditors
Exhibit (b)(13) Copy of schedule for computation of each
performance quotation provided in the
Registration Statement in response to Item 24
Exhibit (b)(14) Power of Attorney, dated April 18, 1994
<PAGE>
<PAGE>
PAGE 1
CONSENT IN WRITING IN LIEU
OF MEETING OF BOARD OF DIRECTORS
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY OF NEW YORK
By this consent in writing in lieu of a meeting of the Board of
Directors of IDS Life Insurance Company of New York, a New York
corporation, we the Directors of said Corporation do hereby consent
to and authorize the adoption of the following resolution to be
effective immediately upon receipt by the Secretary of the
Corporation:
WHEREAS, This Board of Directors has determined that it is
desirable for the Corporation to develop a new flexible
premium deferred combination fixed and variable annuity
contract to be issued by the Corporation and sold through the
Shearson Lehman Brothers financial consultants, Now,
therefore, be it
RESOLVED, that IDS Life of New York Account SLB, comprised of
one or more subaccounts, is hereby established as a separate
account in accordance with Section 4240, New York Insurance
Law;
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed to establish such
subaccounts within such separate account as they determine to
be appropriate;
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed, as they may deem
appropriate from time to time and in accordance with
applicable laws and regulations to: establish further any
subaccounts; change the designation of the separate account to
another designation; and deregister the separate account;
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed to accomplish all filings
and registrations necessary to carry the foregoing into
effect.
/s/ Gary A. Beller /s/ Edward Landes
Gary A. Beller Edward Landes
/s/ John C. Boeder /s/ James A. Mitchell
John C. Boeder James A. Mitchell
/s/ Roger C. Corea /s/ M. P. Monaco
Roger C. Corea Michael P. Monaco
/s/ Charles A. Cuccinello /s/ Stephen P. Norman
Charles A. Cuccinello Stephen P. Norman
/s/ Milton R. Fenster
Milton R. Fenster Gordon H. Ritz
<PAGE>
PAGE 2
/s/ D. R. Hubers
David R. Hubers Michael F. Weinberg
/s/ R. W. Kling /s/ Michael R. Woodward
Richard W. Kling Michael R. Woodward
/s/ Francis W. Ellis
Received by the Secretary
October 8 , 1991
/s/ Michael B. Carlin
Michael B. Carlin
<PAGE>
<PAGE>
PAGE 1
VARIABLE ANNUITY CERTIFICATE DISTRIBUTION AGREEMENT
This Agreement entered into as of , 1992 is between
IDS Life Insurance Company of New York ("IDS Life of New York"), a
New York corporation, and Shearson Lehman Brothers Inc.
("Shearson")1, a Delaware corporation, and is entered into in
consideration of the promises and the mutual agreements herein
contained.
WITNESSETH THAT:
1. Appointment. IDS Life of New York hereby appoints
Shearson to solicit and procure applications for variable
annuity certificates to be issued by IDS Life of New York
to residents of the State of New York. As used herein,
the term "certificates" describes interests in a master
group flexible premium deferred variable annuity
(Symphony Variable Annuity) issued by IDS Life of New
York. This appointment is not exclusive, as IDS Life of
New York will continue to solicit business through its
own sales force. Similarly, Shearson will be under no
obligation to submit to IDS Life of New York applications
procured by it through its Financial Consultants for
variable annuities or certificates that are not governed
by this Agreement.
2. Payment of Commissions. IDS Life of New York will
compensate Shearson for its activities hereunder solely
on the basis of commissions, which will be determined in
accordance with the SCHEDULE OF COMMISSIONS attached as
Addendum 2 to this Agreement. This Schedule may be
changed from time to time by IDS Life of New York, but
only with respect to applications taken after the date of
such change. Shearson agrees that it will hold IDS Life
of New york harmless from any claim for commissions or
other sales compensation by any other person arising out
of the sale of any certificates under this Agreement. No
agreement that Shearson makes with any of its Financial
Consultants will create any liability on the part of IDS
Life of New York. Commissions on certificate sales will
become payable upon the acceptance of an application and
the issuance of a certificate. Except for certificates
which are to be issued in an exchange under Section 1035
of the Internal Revenue Code of 1986, as amended
("Code"), Shearson will be authorized to deduct from
certificate purchase payments payable to IDS Life of New
York the amount of any commission
1Including its subsidiaries and affiliates (please see Addendum 1)
<PAGE>
PAGE 2
accruing to Shearson when and if a certificate is issued.
Commissions on any certificate issued pursuant to an
exchange under Code Section 1035 will be paid monthly to
Shearson by IDS Life of New York. If IDS Life of New
York declines to issue a certificate, it will return the
purchase payment to the client, will reverse commissions
payable to Shearson, and will deduct the reversed
commissions from any amount thereafter becoming due to
Shearson. If any certificate owner exercises a right
under a "free look" option and cancels the certificate,
IDS Life of New York will deduct any commission already
paid with respect to such certificate from any amounts
thereafter becoming due to Shearson.
3. Certificate Application and Issuance. Each certificate
application taken by a Shearson Financial Consultant will
be promptly forwarded to Shearson, together with the
purchase payment and any required forms. Shearson will
conduct a review to determine the suitability of the sale
and that the sale follows established IDS Life of New
York procedures regarding forms, applications and other
such matters of administration which have been submitted
in writing by IDS Life of New York to Shearson prior to
appointing Shearson Financial Consultants to solicit
applications. After Shearson has conducted its review,
it will forward all relevant material to IDS Life of New
York's home office, whereupon IDS Life of New York will
conduct its own review of the application. IDS Life of
New York will be under no obligation to accept any
application which, in its sole discretion with or without
reason, it determines to be unacceptable to it. Upon
issuance, each certificate sold through Shearson will be
mailed directly from IDS Life of New York to Shearson for
personal delivery to the certificate owner by the
Shearson Financial Consultant.
4. Representations. Shearson agrees that its Financial
Consultants will fully explain the terms and conditions
of the variable annuity and related certificates and will
not make untrue statements, interpretations or
misrepresentations, nor omit or evade material facts
concerning the variable annuity and certificates which
prospects should
<PAGE>
PAGE 3
know. Shearson is not authorized and is expressly
forbidden to incur any indebtedness or liability or make,
alter or discharge any certificate, waive any forfeiture
or make any guarantee on behalf of IDS Life of New York.
Shearson will not use any sales literature or other
written materials unless they have been approved in
writing by IDS Life of New York. IDS Life of New York
will furnish to Shearson reasonable supplies of sales
literature which it has developed after consultation with
Shearson.
IDS Life of New York certifies that all advertising,
certificates, brochures and other materials developed by
it and delivered to Shearson:
i) have been read and approved by or on behalf of
IDS Life of New York;
ii) are in conformity with the terms and conditions
of the variable annuity and related certificates;
iii) shall meet the requirements of all federal,
state and appropriate regulatory authorities; and
iv) IDS Life of New York undertakes responsibility
for same.
5. Licensing and Indemnification. No person associated with
Shearson will offer or sell and IDS Life of New York
certificate unless that person is duly licensed as a
variable annuity agent for IDS Life of New York under
applicable state law. Qualification and licensing will
be the sole responsibility of Shearson, but IDS Life of
New York will make such appointments as requested by
Shearson and otherwise fully cooperate with Shearson.
Shearson assumes full responsibility for the supervision
of its associated persons and all of their activities
relating to the IDS Life of New York variable annuity and
related certificates. Shearson shall not bear any
liability for solicitation of applications and the
results therefrom in any jurisdiction if IDS Life of New
York shall not have provided appropriate notification,
prior to any such solicitation, of any lack of corporate
authority, policy approval or limitation of availability.
IDS Life of New York shall indemnify and hold Shearson
harmless from and against any and all claims, liabilities
and <PAGE>
PAGE 4
expenses arising therefrom. Further, Shearson agrees to
indemnify and hold IDS Life of New York, its officers,
directors, employees or agents harmless from any and all
costs, expenses, causes of actions, loss or damages or
liabilities resulting from negligent, fraudulent, or
unauthorized acts or omissions by Shearson, its
employees, contractors or agents. IDS Life of New York
shall indemnify and hold Shearson, its officers,
directors, employees and agents, harmless from any and
all costs, expenses, causes of action, loss or damages or
liabilities resulting from negligent, fraudulent, or
unauthorized acts of omissions by IDS Life of New York,
its employees, contractors or agents, including without
limitation, the term of the variable annuity and related
certificates, breach of the terms of any certificate sold
hereunder, any failure of the variable annuity and
related certificates to conform with any written
description furnished by IDS Life of New York to
Shearson's agents, applicants or prospective applicants,
or from any change in applicable law or regulations
retroactively affecting the issued variable annuity and
certificates or rendering any such written description
incomplete or misleading, or from any failure of IDS Life
of New York to notify Shearson in writing immediately of
changes in existing government insurance regulations.
Shearson and IDS Life of New York agree to notify the
other party if any legal action is brought against either
party hereto, or both parties jointly, by reason of any
alleged act, fault or failure of either Shearson or IDS
Life of New York under this Agreement.
6. In-force Certificates. Shearson will use its best
efforts, both while this Agreement is in effect and
following its termination, to continue in force all IDS
Life of New York certificates placed in force through
Shearson while this Agreement was in effect; provided,
however, that in any given case a Shearson Financial
Consultant will be free to recommend a contract exchange
to his or her client if it is determined in good faith
that the exchange would clearly be in the best interests
of the client.
7. Termination of Agreement. This Agreement may be
terminated at any time by mutual agreement of the parties
hereto, or by thirty (30) days' written notice given by
either party to the other.
<PAGE>
PAGE 5
8. Advertising or Publicity. No party hereunder shall use
the name of any other party hereunder in any advertising
or publicity release without securing the prior written
approval of the applicable party.
9. Confidential Information. During the term of this
Agreement and for a period ten (10) years from the date
of its termination, IDS Life of New York will regard and
preserve as confidential all information related to the
business of Shearson, its parent company and its
subsidiaries and affiliated companies and its or their
clients that may be obtained from any source as a result
of this Agreement. IDS Life of New York will not,
without obtaining Shearson's written consent, disclose to
any person, firm or enterprise, or use for its benefit,
any information relating to the pricing, methods,
processes, financial data, lists, apparatus, statistics,
programs, research, development or related information of
Shearson, its parent company or its subsidiaries or
affiliated companies or its or their clients, concerning
past, present or future business activities of said
entities.
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the day of , 1992.
SHEARSON LEHMAN BROTHERS INC.
By:
Its:
IDS LIFE INSURANCE COMPANY OF NEW YORK
By:
Its:
<PAGE>
<PAGE>
PAGE 1
GROUP DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments
- - Optional fixed dollar or variable accumulation values
- - Fixed dollar annuity payments
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
Contractholder: ABC Trust Company
Contract Number: 39377GP-1
Contract Date: November 1, 1991
IDS Life Insurance Company of New York, herein called the Company,
will pay the benefits provided by this contract in accordance with
and subject to all provisions of this contract.
We issue this contract in consideration of the application of the
contractholder.
Signed for and issued by IDS Life Insurance Company of New York,
Albany, New York, as of the contract date shown above.
ACCUMULATION VALUES, WHEN BASED ON THE INVESTMENT RESULTS OF THE
SEPARATE ACCOUNT, ARE VARIABLE AND NOT GUARANTEED AS TO FIXED
DOLLAR AMOUNT.
NOTICE OF CONTRACTHOLDER'S RIGHT TO EXAMINE CONTRACT FOR 20 DAYS
If for any reason the contractholder is not satisfied with this
contract, the contractholder may cancel it by returning it to us or
our agent within 20 days after receiving it. We will then cancel
the contract. We will refund all payments made. The contract will
be considered void from its start.
NOTICE OF CERTIFICATE OWNERS' RIGHT TO EXAMINE CERTIFICATES ISSUED
UNDER THIS CONTRACT FOR 20 DAYS
If for any reason an owner is not satisfied with a certificate
issued under this contract, the owner may cancel it by returning it
to us or our agent within 20 days after receiving the certificate.
We will then cancel the certificate. We will refund all payments
the owner has paid. The certificate will be considered void from
the start.
President SPECIMEN
Secretary SPECIMEN
<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions
Important words and meanings/Page 3
General Provisions
Entire contract; Contract modification; Incontestability; Benefits
based on incorrect data; State laws, Reports to owner; Evidence of
survival; Protection of proceeds; Payments by us; Voting
rights/Page 5
Group Contractholder, Owner and Beneficiary
Group contractholder, Owner rights; Change of ownership;
Beneficiary; Change of Beneficiary; Assignment/Page 7
Payments to Beneficiary
Describes options and amounts payable upon death/Page 8
Purchase Payments
Certificate purchase payments amounts; Payment limits; Allocations
of purchase payments/Page 10
Certificate Value
Describes the fixed and variable certificate values; Interest to be
credited; Certificate administrative charge; Premium taxes;
Transfers of certificate values/Page 12
Fixed and Variable Accounts
Describes the fixed account; Describes the variable subaccounts,
accumulation units and values; Net investment factor; Mortality and
expense risk charge; Variable account administrative charge/Page 14
Surrender Provisions
Surrender of the certificate for the cash surrender value; Rules
for surrender; TSA distribution restrictions; Premature
distribution penalty tax; Tax-qualified minimum distribution
requirements/Page 16
Annuity Provisions
When annuity payments begin; Different ways to receive annuity
payments; Determination of payment amounts/Page 20
Tables of Settlement Rates
Tables showing guaranteed fixed dollar annuity payments for the
various payment plans/Page 22
<PAGE>
PAGE 3
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
annuitant
The person on whose life monthly annuity payments depend.
owner
The owner of a certificate. The owner may be someone other than
the annuitant. The owner is shown in the enrollment application
unless the owner has been changed as provided in this contract.
we, us, our
IDS Life Insurance Company of New York.
accumulation unit
An accumulation unit is an accounting unit. It is used to
calculate the certificate value prior to settlement.
certificate date
It is the date from which certificate anniversaries, certificate
years, and certificate months are determined. The certificate date
is shown under Certificate Data, in the certificate.
certificate anniversary
The same day and month as the certificate date each year that the
certificate remains in force.
payment year
Each certificate year in which an owner makes a purchase payment
and each succeeding year measured from the end of the certificate
year during which such payment is made. For example, with an
initial purchase payment of $15,000 and an additional purchase
payment of $10,000 during the 4th certificate year, the 6th
certificate year will be:
- the 6th payment year with respect to the initial $15,000
purchase payment; and
- the 3rd payment year with respect to the additional
$10,000 purchase payment
certificate value
The sum of the: (1) Fixed Account Certificate Value; and the (2)
Variable Account Certificate Value.
retirement date
The date shown under Certificate Data, in the certificate, on which
annuity payments are to begin. This date may be changed as
provided in this contract.
settlement
The application of the accumulation value of a certificate to
provide fixed dollar annuity payments.
<PAGE>
PAGE 4
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
variable account
The variable account is a separate investment account of ours. It
consists of several subaccounts. Each subaccount is named under
Certificate Data, in the certificate.
fixed annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
written request
A request in writing signed by the owner and delivered to us at our
hone office.
Code
The Internal Revenue Code of 1986, as amended, and all related laws
and regulations which are in effect during the term of this
contract.
tax-qualified certificate
A certificate used in or under a retirement plan or program that is
intended to qualify under Section 401, 403 or 408 of the Code.
These include, but are not limited to, TSA certificates, IRA
certificates and SEP/IRA certificates defined below.
TSA certificate
A Tax-Sheltered Annuity as described in Section 403(b) of the Code.
A TSA is a tax-qualified certificate as defined above.
IRA certificate
A certificate used in or under a retirement plan or program that is
intended to qualify under Section 408(b) of the Code. An IRA
certificate is a tax-qualified certificate as defined above.
SEP/IRA certificate
A Simplified Employee Pension (SEP/IRA) certificate. It is used in
or under a retirement plan or program that is intended to qualify
under Section 408(k) of the Code. An SEP/IRA is an IRA with
special features and requirements. A SEP/IRA certificate is a tax-
qualified certificate as defined above.
non-qualified certificate
A certificate used mainly for retirement purposes under a plan or
program that is not intended to qualify under Section 401, 403 or
408 of the Code.<PAGE>
PAGE 5
GENERAL PROVISIONS
Entire Contract
The entire contract consists of: this group contract; the
application of the group contractholder, which is attached to the
group contract; and the enrollment applications.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under this contract.
Contract Modification
We will modify this contract if needed to:
1. qualify certificates issued under this contract as annuity
certificates under Section 72 of the Code and all related laws
and regulations which are in effect during the term of this
contract; and
2. if certificates issued under this contract are purchased as
tax-qualified certificates under the applicable Section 401,
403 or 408 of the Code and all related laws and regulations
which are in effect during the term of this contract.
We will obtain the approval of the State of New York and any other
regulatory authority for the modification. We will provide the
contractholder and the existing certificate owners with notice and
copy of any such modifications, approved for use in the state of
jurisdiction, and an explanation of their effect upon the contract.
An existing certificate owner may reject the modifications by
writing to us.
Incontestable
Certificates issued under this contract are incontestable from
their issue dates.
Are the certificates on a sex distinct or a unisex basis?
Nonqualified and IRA certificates are on a sex distinct basis.
SEP/IRA, TSA and other tax-qualified certificates are on a unisex
basis.
Benefits Based on Incorrect Data
For tax-qualified certificates, except for IRA certificates: If
the amount of benefits is determined by data as to a person's age
that is incorrect, benefits will be recalculated on the basis of
the correct data. Any underpayments made by us will immediately be
paid in a single sum with an interest credit of 6% per annum. Any
overpayments made by us will be subtracted from the future payments
together with an interest credit of 6% per annum.
<PAGE>
PAGE 6
For non-qualified certificates and IRA certificates: If the amount
of benefits is determined by data as to a person's age or sex that
is incorrect, benefits will be recalculated on the basis of the
correct data. Any underpayments made by us will immediately be
paid in a single sum with an interest credit of 6% per annum. Any
overpayments made by us will be subtracted from the future payments
together with an interest credit of 6% per annum.
State Laws
This contract is governed by the law of the state in which it is
delivered to the contractholder. The values and benefits of the
certificates are at least equal to those required by such state and
by the state in which the certificate is delivered to the
certificate owner. Any paid up annuity, cash surrender or death
benefit is not less than the minimum benefit required by any
statute of the state in which the contract is delivered and by any
statute of the state in which the certificate is delivered to the
certificate owner.
Reports to Owner
At least once a year we will send each owner a statement showing
the certificate value and the certificate cash surrender value.
The statement will be based on the laws and regulations of the
state in which the certificate is delivered to the certificate
owner and of any other applicable laws or regulations that apply to
certificates of this type.
Evidence of Survival
Where any payments under a certificate depend upon the recipient or
annuitant being alive on a certain date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making the payments.
Protection of Proceeds
Payments under any certificate are not assignable by any
beneficiary prior to the time they are due. To the extent allowed
by law, payments are not subject to the claims of creditors or
legal process.
Payments by Us
All sums payable by us are payable at our home office. Any payment
of a variable annuity or surrender based upon the variable
certificate value shall be payable only from the variable accounts.
Voting Rights
So long as federal law requires, the owner may have the right to
vote at meetings of the Variable Shareholders. If the owners have
voting rights we will send a notice to them telling the time and
place of a meeting. The notice will also explain matters to be
voted upon and how many votes the owner gets.
CONTRACTHOLDER, OWNER AND BENEFICIARY
Group Contractholder
The group contractholder is shown on the cover page of this
contract. The contract provides for a successor contractholder.
In the event the contractholder should merge with another
corporation, the new corporation would be the group contractholder.
<PAGE>
PAGE 7
Certificate Owner Rights
As long as the annuitant is living and unless otherwise provided in
this contract, the owner will have the sole and absolute power to
receive and enjoy all rights under the certificate. The owner's
entire interest is non-forfeitable.
For tax-qualified certificates owned by tax-qualified trusts or
tax-qualified custodial accounts, the trustees or custodian or
successor trustees or successor custodian properly named by the
trust or custodial agreement may exercise all rights and privileges
provided in this contract or allowed by us.
Change of Ownership
For tax-qualified certificates, the right to change the ownership
is restricted. The certificate may not be: sold; assigned;
transferred; discounted or pledged as collateral for a loan or as
security for the performance of an obligation; or for any other
purpose to any person other than as may be required or permitted
under Sections 401, 403 or 408 of the Code, or under any other
applicable section of the Code. However, if the certificate is
owned by a trustee of a tax-qualified trust or the custodial of a
tax-qualified custodial account, such trustee or custodian may
transfer ownership of the certificate to the annuitant or to a
qualified successor trustee or custodian.
Also, interests in IRA and SEP/IRA certificates may be transferred
to the owner's former spouse, if any, under a divorce decree or a
written instrument incidental to such divorce.
For non-qualified certificates, the owner may change the ownership.
Any change of ownership as provided above must be made by written
request on a form approved by us. The change must be made while
the annuitant is living. Once the change is received by us, it
will take effect as of the date of the request, subject to any
action or payment made by us before the receipt.
Beneficiary
Beneficiaries are those the owner has named in the enrollment
application or later changed as provided below, to receive the
benefits of the certificate if the owner or the annuitant dies
while the certificate is in force.
Only those beneficiaries who are living when death benefits become
payable may share in the benefits, if any. If no beneficiary is
then living, we will pay the benefits to the owner, if living;
otherwise to the owner's estate.
Change of Beneficiary
The owner may change the beneficiary anytime while the annuitant is
living. This must be done by satisfactory written request to us.
Once the change is received by us, it will take effect as of the
date of the owner's request, subject to any action taken or payment
made by us before the receipt.
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PAGE 8
Assignment
Tax-qualified certificates may not be assigned as collateral.
The owner may assign non-qualified certificates or any interest in
them. The annuitant must be living. The owner's interest and the
interest of any beneficiary is subject to the interest of the
assignee. An assignment is not a change of ownership and an
assignee is not an owner as these terms are used in this contract.
Any amounts payable to the assignee will be paid in a single sum.
A copy of any assignment must be submitted to us at our home
office. Any assignment is subject to any action taken or payment
made by us before the assignment was received at our home office.
We are not responsible for the validity of any assignment.
PAYMENTS TO BENEFICIARY
Death Benefits Before the Retirement Date
If the owner or the annuitant dies before the fifth certificate
anniversary while the certificate is in force, we will pay the
beneficiary the greater of the certificate value or the purchase
payments paid less any amounts surrendered.
On or after the initial fifth certificate anniversary, and each
subsequent fifth certificate anniversary thereafter, we will pay
the beneficiary the greater of the certificate value or a minimum
guaranteed death benefit which equals:
1. the death benefit calculated as of the previous fifth
certificate anniversary; plus
2. any purchase payments made since the previous fifth
certificate anniversary; minus
3. any surrenders since the previous fifth certificate
anniversary.
The above amount will be paid in a lump sum upon the receipt of due
proof of death of the owner or annuitant, whichever first occurs.
The beneficiary may elect to receive payment anytime within 5 years
after the date of death.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. The beneficiary elects the plan within 60 days after we
receive proof of death; and
2. The plan provides payments over a period which does not exceed
the life or life expectancy of the beneficiary; and
3. For non-qualified certificates:
Payments begin no later than one year after the date of death;
and
4. For tax qualified certificates;
(a) Payments begin no later than one year after the date of
death, in the case of a non-spouse beneficiary; or
<PAGE>
PAGE 9
(b) Payments begin no later than the date on which the
annuitant would have attained age 70 1/2 or one year
after the date of death, in the case of a spousal
beneficiary; and
(c) Amounts are calculated in accordance with the Code.
In this event, the reference to "annuitant" in the Annuity Payment
Plans section shall apply to the beneficiary.
Required Distribution at Annuitant's Death Prior to the Retirement
Date
The Code requires a distribution on the death of the annuitant if a
certificate is owned by a corporation or other non-individual. If
we receive due proof that the annuitant died while a certificate
was in force before settlement, we will pay to the beneficiary the
death benefit described in Death Benefits Before the Retirement
Date. The death benefit will be determined as of the date on which
due proof of death is received at our home office.
Refer to the other provisions of the Payments to Beneficiary
section. They explain the distribution methods and timing the
beneficiary may elect. A spouse beneficiary, if eligible as
explained in the provision below, may elect spousal continuation.
Spouse's Option to Continue Certificate
For non-qualified certificates: If the owner dies prior to the
retirement date, and the owner's spouse is the sole beneficiary of
the certificate, the spouse may forego receipt of the death benefit
and instead keep the certificate in force as its owner and
annuitant. The election by the spouse must be made within 60 days
after we receive due proof of death. Additional purchase payments
may be made to the annuity.
For IRA and SEP/IRA certificates: If the owner dies prior to the
retirement date, and the owner's spouse is the sole beneficiary of
the certificate, the spouse may forego receipt of the death benefit
and instead keep the certificate in force as its owner and
annuitant. The election by the spouse must be made within 60 days
after we receive due proof of death. Additional purchase payments
may be made to the IRA annuity. The spouse may defer beginning
annuity payments until the spouse attains age 70 1/2 or such other
date as provided in the Code. Any annuity payment plan later
elected must provide for amounts calculated in accordance with the
Code. The applicable IRA or SEP/IRA limitations of the original
certificate will continue to apply to the certificate with the
spousal owner and annuitant.
For tax-qualified certificates other than IRAs and SEP/IRAs:
If the owner dies prior to the retirement date, and the annuitant's
spouse is the sole beneficiary of the certificate, the spouse may
forego receipt of the death benefit and instead keep the
certificate in force as its owner and annuitant. If the owner is a
non-individual, such as a Section 401 retirement plan, if the
annuitant's spouse is the sole beneficiary of the certificate, the
<PAGE>
PAGE 10
spouse may forgo receipt of the death benefit and instead keep the
certificate in force as its owner and annuitant. The election by
the spouse must be made within 60 days after we receive due proof
of death. Additional purchase payments may not be made to the
annuity. The spouse may defer beginning annuity payments until the
annuitant would have attained age 70 1/2 or such other date as
provided in the Code. Any annuity payment plan later elected must
provide for amounts calculated in accordance with the Code. The
applicable tax-qualified limitations of the original certificate
will continue to apply to the certificate with the spousal owner
and annuitant.
Death After the Retirement Date
If annuity payments are being made under Plans B, C or E (see
Annuity Payment Plans), any remaining guaranteed payments will be
continued to the beneficiary, if living; if not, the owner's
estate.
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments an owner makes for a certificate
and the benefits it provides. Purchase payments for a certificate
consist of the initial purchase payment and any additional optional
purchase payments the owner makes. Purchase payments must be paid
to us at our home office or to an authorized agent. If requested,
we will give the owner a receipt for the purchase payment. Upon
payment to us, purchase payments become our property.
Net purchase payments are that part of the owner's purchase payment
applied to the certificate value. A net purchase payment is equal
to the purchase payment less any applicable premium tax charge.
Additional Purchase Payments
Additional purchase payments may be made to a certificate until the
earlier of:
1. the date the certificate terminates by surrender or otherwise;
or
2. the date on which annuity payments begin for a certificate.
Additional purchase payments are subject to the Payment Limits
Provision below.
Payment Limits Provision
Maximum Purchase Payments - The maximum total purchase payments for
a certificate in the first and later certificate years is
$1,000,000. We have the right to increase the maximums on a
uniform basis for all certificate holders in a class.
Additional Purchase Payments - The owner may make additional
purchase payments of at least $500 for nonqualified certificates
and at least $50 for tax-qualified certificates.
<PAGE>
PAGE 11
IRA certificate purchase payments must be:
o Active IRA contributions. Active IRA contributions are
described in Code Sections 408(b)(2) and 219 and generally may
not exceed $2,000 for any taxable year except for the
permissible $2,250 contribution of an individual with a non-
working spouse; or
o Rollover or transfer IRA contributions of accumulated past
active IRA contributions. Rollover IRA contributions are
described in Code Section 408(d)(3); or
o Rollover IRA contributions of distributions from the owner's
employer's tax-qualified retirement plan. Employer retirement
plan rollovers are described in Code Sections 402(a)(5),
402(a)(7), 403(a)(4) or 403(b)(8).
SEP/IRA certificate purchase payments must be:
o Current SEP/IRA contributions. SEP/IRA contributions are
described in Code Sections 408(k) and 219. SEP/IRA
contributions must be made by an employer from employer
monies. Generally employer SEP/IRA contributions for any
taxable year may not exceed the lesser of 15% of the owner's
compensation or $30,000 (as indexed); or
o Rollover or transfer SEP/IRA contributions of accumulated past
SEP/IRA contributions. Rollover contributions are described
in Code Section 408(d)(3).
TRA certificate purchase payments must be:
o Current TSA contributions. TSA contribution limits are
described in Code Sections 403(b)(2), 415(c) and 402(g). TSA
contributions must be made by an employer from employer
monies. Generally employer contributions to all defined
contribution plans, including TSAs, for any taxable year may
not exceed 25% of the owner's compensation or $30,000 (as
indexed). The employer and/or personal tax adviser should be
consulted for detailed TSA contribution limits; or
o Rollover or transfer TSA contributions of accumulated past TSA
contributions. TSA rollovers are described in Code Section
403(b)(8).
Tax-qualified certificate purchase payments must be:
o Current Section 401 retirement plan contributions.
Contribution limits are as described in the specific
retirement plan documents; or
o Transfers of accumulated past Section 401 retirement plan
contributions.
All purchase payments must be made in cash. If the owner dies
before the entire interest in the certificate has been distributed,
and the beneficiary is other than a surviving spouse, no additional
purchase payments will be accepted from the beneficiary for the
certificate.
<PAGE>
PAGE 12
Allocation of Purchase Payments
The owner instructs us on how to allocate purchase payments among
the fixed account and the variable subaccounts. The choice for the
fixed account and each variable subaccount may be made in any whole
percent from 0% to 100%. For nonqualified certificates, no
allocation may be made that would result in a fixed account value
or a variable subaccount value of less than $500. The owner's
allocation instructions as of the certificate date are shown under
Certificate Data, in the certificate.
By written request, or by another method agreed to by us, the owner
may change the choice of accounts or percentages.
The first net purchase payment will be allocated as of the date the
purchase payment is received at our home office. Net purchase
payments after the first will be allocated as of the end of the
valuation period during which we receive the payment at our home
office.
CERTIFICATE VALUE
Certificate Value
The certificate value of a certificate at any time is the sum of:
1. the Fixed Account Certificate Value; and
2. the Variable Account Certificate Value.
If:
1. part or all of the certificate value is surrendered; or
2. charges described herein are made against the certificate
value;
then a number of accumulation units from the variable subaccounts
and an amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed
account or variable subaccounts that the owner specifies.
Otherwise, the number of units from the variable subaccounts and
the amount from the fixed account will be deducted in the same
proportion that the owner's interest in each bears to the total
certificate value.
Fixed Account Certificate Value
The fixed account certificate value at any time will be:
1. the sum of all amounts credited to the fixed account under the
certificate; less
2. any amounts deducted for charges or surrenders.
Interest to be Credited
We will credit interest to the fixed account certificate value.
Interest will begin to accrue on the date the purchase payments are
received in our home office. Such interest will be credited at
rates we determine from time to time. However, we guarantee that
the rate will not be less than 4% per year compounded annually.
<PAGE>
PAGE 13
Variable Account Certificate Value
The variable account certificate value at any time will be:
1. the sum of the value of all variable subaccount accumulation
units under the certificate resulting from purchase payments
so allocated, or transfers among the variable and fixed
accounts; less
2. any units deducted for charges or surrenders.
Certificate Administrative Charge
We charge a fee for establishing and maintaining our records for
certificates. The charge is $30 per certificate per year and is
deducted from the certificate value at the end of each certificate
year. The charge deducted will be prorated among the variable
subaccounts and the fixed account in the same proportion the
owner's interest in each bears to the total certificate value.
If an owner fully surrenders a certificate, we deduct a certificate
administrative charge that is prorated based on the number of days
from the last certificate anniversary to the date of full
surrender. The charge does not apply after the settlement of a
certificate.
Premium Tax Charges
A charge will be made by us against the certificate value of a
certificate for any applicable premium taxes not previously
deducted.
Transfers of Certificate Values
Owners may make transfers of certificate values while certificates
are in force prior to the settlement dates as outlined below:
1. An owner may transfer all or a part of the values held in one
or more of the variable subaccounts to another one or more of
the variable subaccounts.
2. An owner may transfer all or a part of the values held in one
or more of the variable subaccounts to or from the fixed
account subject to these restrictions:
(a) Certificate values may be transferred from the fixed
account to a variable subaccount, or vice versa, up to
six times per certificate year subject to item (b) below.
(b) If a transfer is made from the fixed account to a
variable subaccount, no transfer from any variable
subaccount to the fixed account may be made for six
months from the transfer date.
The owner may make a transfer by written request. There is no fee
or charge for these transfers. However, the minimum transfer
amount is $500, or if less, the entire value in the subaccount or
in the fixed account from which the transfer is being made.
<PAGE>
PAGE 14
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all our
assets other than
1. those in the variable account; and
2. those in any other segregated asset account.
The Variable Account
The variable account is a separate investment account of ours. If
consists of several subaccounts. We have allocated a part of our
assets for this and certain other contracts to the variable
account. Such assets remain our property. However, they may not
be charged with the liabilities from any other business in which we
may take part.
Investments of the Variable Account
Certificate purchase payments applied to the variable account will
be allocated as specified by the owner. Each variable subaccount
will buy, at net asset value, shares of the Portfolio shown for
that subaccount under Certificate Data, in the certificate, or as
later added or changed.
Valuation of Assets
Portfolio shares in the variable subaccounts will be valued at
their net asset value.
Variable Account Accumulation Units
The number of accumulation units for each of the variable
subaccounts in a certificate is found by dividing
1. the net amount allocated to the certificate subaccount; by
2. the accumulation unit value for the subaccount for the
valuation period during which we received the certificate
purchase payment.
and subtracting the number of certificate accumulation units
resulting from:
1. transfers from the certificate subaccount; and
2. surrenders (including surrender charges) from the certificate
subaccount; and
3. certificate administrative charge deductions from the
certificate subaccount.
The number of accumulation units added or subtracted for each of
the above transactions is found by dividing:
1. the number allocated to or deducted from the certificate's
subaccount; by
2. the accumulation unit value for the certificate's subaccount
for the respective valuation period during which we received
the purchase payment or transfer value, or during which we
deducted transfers, surrenders, surrender charges or
certificate administrative charges.
<PAGE>
PAGE 15
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable
subaccounts was set at $1 when the first Portfolio shares were
bought. The value for any later valuation period is found as
follows:
The accumulation unit value for each variable subaccount for
the last prior valuation period is multiplied by the net
investment factor for the same subaccount for the next
following valuation period. The result is the accumulation
unit value. The value of an accumulation unit may increase or
decrease from one valuation period to the next.
The net investment factor is an index applied to measure the
investment performance of a variable subaccount from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such subaccount for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
and (4) from the result. This is done where:
1. is the sum of
a. the net asset value per share of the Portfolio held in
the variable subaccount determined at the end of the
current valuation period; plus
b. the per share amount of any dividend or capital gain
distribution made by the Portfolio held in the variable
subaccount, if the "ex-dividend" date occurs during the
current valuation period.
2. is the net asset value per share of the Portfolio held in the
variable subaccount, determined at the end of the last prior
valuation period.
3. is a factor representing the mortality and expense risk
charge.
4. is a factor representing the variable account administrative
charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable subaccounts equal, on an
annual basis, to 1.25% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under certificates of this type. The deduction will
be:
1. made from each variable subaccount; and
2. computed on a daily basis.
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PAGE 16
Variable Account Administrative Charge
In calculating accumulation unit values we will deduct a variable
account administrative charge from the variable subaccounts equal,
on an annual basis, to 0.25% of the daily net asset value. This
deduction is made to compensate us for certain administrative and
operating expenses for certificates of this type. The deduction
will be:
1. made from each variable subaccount; and
2. computed on a daily basis.
SURRENDER PROVISIONS
Surrender
By written request and subject to the roles below the owner may:
1. surrender the certificate for the total surrender value; or
2. partially surrender the certificate for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the certificate value;
2. minus the certificate administrative charge, prorated based on
the number of days from the last certificate anniversary to
the date of full surrender;
3. minus any surrender charge.
Surrender Charge
If the owner surrenders all or part of the certificate, there may
be a surrender charge. A surrender charge applies if all or part
of the certificate value is surrendered during the first six
payment years following a purchase payment. The surrender charge
schedule is:
Payment Year Surrender Charge
1 6% of purchase payment surrendered
2 5% of purchase payment surrendered
3 4% of purchase payment surrendered
4 3% of purchase payment surrendered
5 2% of purchase payment surrendered
6 1% of purchase payment surrendered
Thereafter 0% of purchase payment surrendered
After the first certificate year each year the owner may surrender
up to 10 percent of the certificate value on the prior certificate
anniversary without incurring a surrender charge. There is also no
surrender charge after the first certificate year on certificate
earnings defined as:
1. the certificate value at the time of surrender; minus
2. the sum of all purchase payments received that have not been
previously surrendered; minus
3. the amount of the 10% free withdrawal, if applicable.
<PAGE>
PAGE 17
For purposes of determining the surrender charge, surrenders will
be deemed to be taken:
1. First, from any applicable 10% free withdrawal amount.
There is no surrender charge on any applicable 10% free
withdrawal amount.
2. Next, from certificate earnings in excess of any applicable
10% free withdrawal amount.
There is no surrender charge on certificate earnings of any
applicable 10% free withdrawal amount.
3. Finally, from purchase payments on a first in -- first out
basis.
There is a surrender charge on purchase payments depending on
the payment year of the purchase payment.
Surrender Charge Calculation
The surrender charge is calculated by multiplying the amount(s)
representing purchase payments by the applicable payment year
surrender charge percentage.
For example, the surrender charge on a total surrender request for
a certificate with this hypothetical history:
1. a $10,000 purchase payment in payment year 5; and
2. a $20,000 purchase payment in payment year 2; and
3. a $40,000 prior anniversary value at time of surrender; and
4. a $42,000 certificate value when surrendered in certificate
year 5; and
5. no previous surrenders
is calculated this way:
Surrender Charge Explanation
$ 0 $4,000 (10% of $40,000 prior anniversary value
free withdrawal amount) without surrender
charge
$ 0 $8,000 (certificate earnings in excess of
applicable 10% free withdrawal amount) without
surrender charge
$ 200 $10,000 times 2% (payment year 5 surrender
charge percentage)
$1000 $20,000 times 5% (payment year 2 surrender
charge percentage)
$1200
Rules for Surrender
All surrenders will have the following conditions:
1. The owner must apply by written request or other method agreed
to by us:
(a) while the certificate is in force; and
(b) prior to the earlier of the retirement date or the death
of the annuitant.
<PAGE>
PAGE 18
2. The owner must surrender an amount equal to at least $500.
Each variable subaccount value and the fixed account value
after a partial surrender must be either $0 or at least $500.
3. The amount surrendered, less any charges, will normally be
paid to the owner within seven days of the receipt of the
written request and the certificate, if required. For
surrenders from the fixed account, we have the right to defer
payment for up to 6 months from the date we receive the
surrender request.
4. For partial surrenders, if the owner does not specify from
which account the surrender is to be made, the surrender will
be made from the variable subaccounts and the fixed account in
the same proportion as the owner's interest in each bears to
the certificate value.
Upon surrender for the full surrender value the certificate will
terminate. We may require that the owner return the certificate to
us before we pay the full surrender value.
TSA Distribution Restrictions
To meet the requirements of Section 403(b) of the Code, unless
otherwise provided in the Code, no amounts may be distributed from
TSA contracts or certificates unless the owner has:
1. attained age 59 1/2; or
2. separated from service; or
3. died; or
4. become disabled (as defined in Section 72(m)(7) of the Code);
quoted below:
'MEANING OF DISABLED - For purposes of this section, an
individual shall be considered to be disabled if he is unable
to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can
be expected to result in death or to be of long-continued and
indefinite duration. An individual shall not be considered to
be disabled unless he furnishes proof of the existence thereof
in such form and manner as the Secretary may require.'; or
5. encountered hardship (within the meaning of Section 403(b) of
the Code);
and then only such amounts as the Code may provide.
We will require satisfactory written proof of the event(s) in items
1 through 5 above prior to any distribution from a certificate.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable subaccounts for any period:
<PAGE>
PAGE 19
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is restricted; or
3. When an emergency exists as a result of which:
(a) disposal of securities held in the variable subaccounts
is not reasonably practical; or
(b) it is not reasonably practical to fairly determine the
value of the net assets of the variable subaccounts; or
4. During any other period when the Securities and Exchange
Commission, by order, so permits for the protection of
security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
Premature Distribution Penalty Tax
The owner may incur a federal 10% premature distribution penalty
tax. This may occur if the owner surrenders all or a portion of
the certificate or settles the certificate using an annuity payment
plan prior to the close of the tax year in which the owner attains
age 59 1/2.
What minimum distributions does the Code require from tax-qualified
plans to plan participants?
Once a plan participant reaches age 70 1/2, the Code requires the
participant receive certain minimum distributions from the tax-
qualified plan each year. IRAs, SEP/IRAs, TSAs and Code Section
401 retirement plans are subject to this minimum distribution
requirement. Generally, distributions must begin no later than
April 1 following the year in which the participant reaches age 70
1/2. Minimum distribution requirements may be satisfied by making
partial surrenders from time to time or by settlement of a
certificate using an annuity payment plan. Certificate owners
should consult their tax advisers to determine required minimum
distributions and the method of satisfying the minimum distribution
requirements which best meets the owners' objectives.
MINIMUM CERTIFICATE ACCUMULATION VALUES AND CASH SURRENDER VALUES
PRIOR TO SETTLEMENT PER $1,000 OF INITIAL PAYMENT*
Symphony Symphony
End of Minimum Minimum
Certificate Accumulation Surrender
Year Values Values
1 $1,037.00 $ 977.00
2 1,075.48 1,027.08
3 1,115.50 1,075.50
4 1,157.12 1,127.12
5 1,200.40 1,180.40
6 1,245.42 1,235.42
7 1,292.24 1,292.24
8 1,340.93 1,340.93
9 1,391.56 1,391.56
<PAGE>
PAGE 20
10 1,444.23 1,444.23
11 1,499.00 1,499.00
12 1,555.96 1,555.96
13 1,615.19 1,615.19
14 1,676.80 1,676.80
15 1,740.87 1,740.87
16 1,807.51 1,807.51
17 1,876.81 1,876.81
18 1,948.88 1,948.88
19 2,023.84 2,023.84
20 2,101.79 2,101.79
*Based on the minimum interest rate of 4% per year, compounded
annually. Assumptions:
1. There is a $10,000 initial purchase payment received and
allocated 100% to the fixed account; and
2. There are no additional payments; and
3. There are no premium tax charges; and
4. There are no surrenders.
If purchase payments are otherwise paid or allocated, or if there
are surrenders, or premium tax charges, the values above will be
changed in accordance with the provisions of the Group Contract.
ANNUITY PROVISIONS
Settlement
When certificate settlement occurs, the certificate value will be
applied to make fixed dollar annuity payments. The first payment
will be made as of the retirement date. This date is shown under
Certificate Data, in the certificate. Before payments begin we
will require satisfactory proof that the annuitant is alive. We
may also require that the owner exchange the certificate for a
supplemental contract or certificate which provides the annuity
payments.
Change of Retirement Date
The owner may change the retirement date shown in Certificate Data
for the certificate. The owner must tell us the new date by
written request. If the owner selects a new date, it must be at
least 30 days after we receive the written request at our home
office.
The retirement date on tax-qualified certificates cannot be later
than the later of:
1. the April 1 following the calendar year in which the annuitant
attains age 70 1/2; or
2. such other date which allows satisfaction of the minimum
distribution requirements under the Code, its regulations
and/or promulgations by the Internal Revenue Service; or
3. such other date which allows satisfaction of the tax qualified
plan's requirements.
<PAGE>
PAGE 21
Notwithstanding the above, and for all non-qualified certificates,
the retirement date may not be later than the later of:
1. the annuitant's 85th birthday; or
2. the tenth certificate anniversary.
Annuity Payment Plans
Annuity payments are made on a fixed dollar basis. The owner may
schedule receipt of annuity payments according to one of the Plans
A through E below or another plan agreed to by us.
If this is an IRA or tax-qualified certificate, any such plan will
be calculated in accordance with the Code and must be provided:
(a) in equal or substantially equal payments over a period no
longer than the life of the annuitant or over the life of the
annuitant and a joint annuitant; or
(b) in equal or substantially equal payments over a period which
does not exceed the life expectancy of the annuitant and a
joint annuitant; or
(c) any plan selected must also meet the incidental death benefit
requirements, if any, under the Code.
Plan A - This provides monthly annuity payments during the lifetime
of the annuitant. No payments will be made after the annuitant
dies.
Plan B - This provides monthly annuity payments during the lifetime
of the annuitant with a guarantee by us that payments will be made
for a period of at least five, ten or fifteen years. The owner
must select the guaranteed period.
Plan C - This provides monthly annuity payments during the lifetime
of the annuitant with a guarantee by us that payments will be made
for a certain number of months. We determine the number of months
by dividing the amount applied under this plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the lifetime of the
annuitant and joint annuitant. When either the annuitant or the
joint annuitant dies we will continue to make monthly payments
during the lifetime of the survivor. No payments will be made
after the death of both the annuitant and joint annuitant.
Plan E - This provides monthly fixed dollar annuity payments for a
period of years. The period of years may be no less than 10 nor
more than 30.
Plan Selection Requirements
The owner may select the plan by written request to us at least 30
days before the retirement date.
If at least 30 days before the retirement date we have not received
at our home office the owner's written request to select a plan, we
will make fixed dollar payments according to Plan B with payments
guaranteed for ten years.
<PAGE>
PAGE 22
If the owner selects a plan that has a payment amount that is the
same as another plan having a longer guarantee period, then the
plan with the longer guarantee period will be deemed to have been
chosen.
If the amount to be applied to a plan would not provide a monthly
payment of at least $50, we have the right to change the frequency
of the payment or to make a lump sum payment of the certificate
value.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
will never be less than the amount of the first payment. At
settlement the fixed account certificate value will be applied to
our fixed dollar Table of Settlement Rates then in effect.
This will be done in accordance with the payment plan chosen. The
minimum amount payable for each $1,000 so applied is shown in sex
distinct Table A (non-qualified and IRA certificates) and unisex
Table B (tax-qualified and SEP-IRA certificates) on pages 23 and
24.
TABLE OF SETTLEMENT RATES
The amount of the first and all subsequent monthly fixed dollar
annuity payments for each $1,000 of value applied under any payment
plan will be based on our fixed dollar Table of Settlement Rates in
effect on the settlement date. Such rates are guaranteed to be not
less than those shown in sex distinct Table A (non-qualified and
IRA certificates) on page 23 and unisex Table B (tax-qualified
certificates including SEP/IRA certificates but excluding IRA
certificates) on page 24.
In addition, the amount of such fixed annuity payment will not be
less than that which would be provided if a single premium
immediate annuity contract then offred by us to annuitants in the
same class were to be purchased with the greater of:
1. the cash surrender value of the certificate; or
2. 95% of the accumulation value of the certificate.
For non-qualified and IRA certificates, the amount of such fixed
annuity payments under Plans A, B and C will depend upon the sex
and the adjusted age of the annuitant on the date of settlement.
The amount of such annuity payments under Plan D will depend on the
sex and adjusted age of the annuitant and the joint annuitant on
the date of settlement.
For tax-qualified and SEP-IRA certificates, the amount of such
fixed annuity payments under Plans A, B and C will depend upon the
adjusted age of the annuitant on the date of settlement. The
amount of such annuity payments under Plan D will depend on the
adjusted age of the annuitant and the joint annuitant on the date
of settlement.
<PAGE>
PAGE 23
Adjusted age shall be equal to the age on the nearest birthday
minus an "adjustment" depending on the calendar year of birth of
the annuitant as follows:
Calendar Year of Annuitant's Birth Adjustment
Prior to 1920 0
1920 through 1924 1
1925 through 1929 2
1930 through 1934 3
1935 through 1939 4
1940 through 1944 5
1945 through 1949 6
1950 through 1959 7
1960 through 1969 8
1970 through 1979 9
1980 through 1989 10
After 1989 11
<PAGE>
PAGE 24
<TABLE><CAPTION>
TABLE A - TABLE OF FIXED DOLLAR SETTLEMENT RATES
NON-QUALIFIED AND IRA CERTIFICATES
Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Life 5 Years 10 Years 15 Years With
Adj. Income Certain Certain Certain Refund
Age* M F M F M F M F M F
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
45 4.53 4.24 4.52 4.23 4.50 4.23 4.46 4.21 4.42 4.19
46 4.59 4.28 4.58 4.28 4.55 4.27 4.51 4.25 4.47 4.23
47 4.65 4.33 4.64 4.33 4.61 4.32 4.56 4.30 4.52 4.27
48 4.72 4.38 4.71 4.38 4.67 4.37 4.62 4.34 4.58 4.32
49 4.79 4.44 4.77 4.43 4.74 4.42 4.68 4.39 4.63 4.36
50 4.86 4.50 4.85 4.49 4.81 4.47 4.74 4.45 4.69 4.41
51 4.94 4.56 4.92 4.55 4.88 4.53 4.80 4.50 4.76 4.47
52 5.02 4.62 5.00 4.61 4.95 4.59 4.87 4.56 4.82 4.52
53 5.10 4.69 5.08 4.68 5.03 4.66 4.94 4.62 4.90 4.58
54 5.19 4.76 5.17 4.75 5.11 4.72 5.01 4.68 4.97 4.64
55 5.29 4.84 5.26 4.83 5.20 4.80 5.09 4.74 5.05 4.71
56 5.39 4.92 5.36 4.91 5.29 4.87 5.17 4.81 5.13 4.77
57 5.49 5.00 5.47 4.99 5.38 4.95 5.25 4.88 5.21 4.85
58 5.61 5.09 5.58 5.08 5.48 5.03 5.33 4.96 5.30 4.92
59 5.73 5.19 5.70 5.17 5.59 5.12 5.42 5.04 5.40 5.00
60 5.86 5.29 5.82 5.27 5.70 5.22 5.51 5.12 5.50 5.09
61 6.00 5.40 5.96 5.38 5.82 5.32 5.60 5.21 5.60 5.18
62 6.16 5.52 6.10 5.50 5.95 5.42 5.69 5.30 5.72 5.27
63 6.32 5.65 6.26 5.62 6.08 5.53 5.79 5.39 5.83 5.37
64 6.49 5.78 6.42 5.75 6.21 5.65 5.89 5.49 5.96 5.48
65 6.68 5.92 6.60 5.89 6.35 5.77 5.98 5.58 6.09 5.59
66 6.88 6.08 6.78 6.03 6.50 5.90 6.08 5.69 6.23 5.71
67 7.09 6.24 6.98 6.19 6.65 6.04 6.18 5.79 6.38 5.83
68 7.31 6.42 7.18 6.36 6.81 6.19 6.28 5.90 6.53 5.97
69 7.56 6.61 7.40 6.54 6.97 6.34 6.37 6.01 6.69 6.11
70 7.82 6.81 7.64 6.74 7.14 6.50 6.47 6.12 6.86 6.26
71 8.09 7.04 7.88 6.95 7.31 6.67 6.55 6.22 7.04 6.42
72 8.39 7.28 8.14 7.17 7.48 6.84 6.64 6.33 7.23 6.59
73 8.71 7.54 8.41 7.41 7.65 7.02 6.72 6.44 7.43 6.77
74 9.05 7.83 8.70 7.67 7.83 7.21 6.80 6.54 7.64 6.97
75 9.41 8.14 9.00 7.95 8.00 7.40 6.87 6.64 7.86 7.17
/TABLE
<PAGE>
PAGE 25
<TABLE><CAPTION>
[Table A, cont'd]
Plan D - Joint and Survivor
Adj. Adjusted Age of Female Joint Annuitant
Male 10 Years 5 Years Same 5 Years 10 Years
Age* Younger Younger Age Older Older
<S> <C> <C> <C> <C> <C>
45 3.80 3.89 3.99 4.10 4.19
46 3.82 3.92 4.03 4.14 4.24
47 3.85 3.95 4.07 4.18 4.29
48 3.87 3.98 4.10 4.22 4.34
49 3.90 4.02 4.15 4.27 4.39
50 3.93 4.06 4.19 4.32 4.45
51 3.96 4.09 4.23 4.38 4.51
52 4.00 4.13 4.28 4.43 4.57
53 4.03 4.18 4.33 4.49 4.64
54 4.07 4.22 4.39 4.56 4.72
55 4.11 4.27 4.45 4.62 4.79
56 4.15 4.32 4.51 4.70 4.88
57 4.19 4.37 4.57 4.77 4.96
58 4.24 4.43 4.64 4.85 5.06
59 4.28 4.49 4.71 4.94 5.16
60 4.34 4.55 4.79 5.03 5.27
61 4.39 4.62 4.87 5.13 5.38
62 4.45 4.69 4.96 5.24 5.50
63 4.51 4.77 5.06 5.35 5.64
64 4.57 4.85 5.16 5.48 5.78
65 4.64 4.94 5.27 5.61 5.93
66 4.71 5.03 5.38 5.75 6.09
67 4.79 5.13 5.51 5.90 6.27
68 4.87 5.24 5.64 6.06 6.46
69 4.96 5.35 5.78 6.24 6.66
70 5.06 5.47 5.94 6.43 6.87
71 5.16 5.60 6.10 6.63 7.11
72 5.26 5.74 6.28 6.84 7.36
73 5.38 5.89 6.47 7.08 7.62
74 5.50 6.05 6.68 7.33 7.91
75 5.63 6.22 6.90 7.60 8.22
*Adjusted Age of annuitant. Refer to the explanation of adjusted age on page 22.
M = Male F = Female
The table above is based on the "1983 Individual Annuitant Mortality Table A" assuming an
interest rate of 4% per year compounded annually. Settlement rates for any age, or any
combination of age and sex not shown above, will be calculated on the same basis as those
rates shown in the table above. Such rates will be furnished by us upon request. Amounts
shown in the table below are based on an assumed interest rate of 4% per year compounded annually.
Plan E - Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
10 $10.06 17 $6.71 24 $5.35
11 9.31 18 6.44 25 5.22
12 8.69 19 6.21 26 5.10
13 8.17 20 6.00 27 5.00
14 7.72 21 5.81 28 4.90
15 7.34 22 5.64 29 4.80
16 7.00 23 5.49 30 4.72
/TABLE
<PAGE>
PAGE 26
<TABLE><CAPTION>
TABLE B - TABLE OF FIXED DOLLAR SETTLEMENT RATES
TAX-QUALIFIED CERTIFICATES (Includes SEP/IRA Certificates, Excludes IRA Certificates)
Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Plan A Plan B Plan C
Adj. Life 5 Years 10 Years 15 Years With
Age* Income Certain Certain Certain Refund
<S> <C> <C> <C> <C> <C>
45 4.24 4.23 4.21 4.21 4.19
46 4.28 4.28 4.27 4.25 4.23
47 4.33 4.33 4.32 4.30 4.27
48 4.38 4.38 4.37 4.34 4.32
49 4.44 4.43 4.42 4.39 4.36
50 4.50 4.49 4.47 4.45 4.41
51 4.56 4.55 4.53 4.50 4.47
52 4.62 4.61 4.59 4.56 4.52
53 4.69 4.68 4.66 4.62 4.58
54 4.76 4.75 4.72 4.68 4.64
55 4.84 4.83 4.80 4.74 4.71
56 4.92 4.91 4.87 4.71 4.77
57 5.00 4.99 4.95 4.88 4.85
58 5.09 5.08 5.03 4.96 4.92
59 5.19 5.17 5.12 5.04 5.00
60 5.29 5.27 5.22 5.12 5.09
61 5.40 5.38 5.32 5.21 5.18
62 5.52 5.50 5.42 5.30 5.27
63 5.65 5.62 5.53 5.39 5.37
64 5.78 5.75 5.65 5.49 5.48
65 5.92 5.89 5.77 5.58 5.59
66 6.08 6.03 5.90 5.69 5.71
67 6.24 6.19 6.04 5.79 5.83
68 6.42 6.36 6.19 5.90 5.97
69 6.61 6.54 6.34 6.01 6.11
70 6.81 6.74 6.50 6.12 6.26
71 7.04 6.95 6.67 6.22 6.42
72 7.28 7.17 6.84 6.33 6.59
73 7.54 7.41 7.02 6.44 6.77
74 7.83 7.67 7.21 6.54 6.97
75 8.14 7.95 7.40 6.64 7.17
[Table B, cont'd]
Plan D - Joint and Survivor
/TABLE
<PAGE>
PAGE 27<TABLE><CAPTION>
Adjusted Age of Joint Annuitant
Adj. 10 Years 5 Years Same 5 Years 10 Years
Age* Younger Younger Age Older Older
<S> <C> <C> <C> <C> <C>
45 3.77 3.85 3.93 4.00 4.07
46 3.79 3.88 3.96 4.04 4.10
47 3.82 3.91 3.99 4.08 4.15
48 3.84 3.94 4.03 4.12 4.19
49 3.87 3.97 4.07 4.16 4.24
50 3.90 4.00 4.11 4.20 4.28
51 3.93 4.04 4.15 4.25 4.34
52 3.96 4.08 4.19 4.30 4.39
53 3.99 4.12 4.24 4.35 4.45
54 4.03 4.16 4.29 4.41 4.51
55 4.07 4.20 4.34 4.47 4.58
56 4.10 4.25 4.40 4.53 4.65
57 4.15 4.30 4.45 4.60 4.72
58 4.19 4.35 4.52 4.67 4.80
59 4.24 4.41 4.58 4.75 4.89
60 4.28 4.47 4.65 4.83 4.98
61 4.34 4.53 4.73 4.92 5.07
62 4.39 4.60 4.81 5.01 5.18
63 4.45 4.67 4.90 5.11 5.29
64 4.51 4.75 4.99 5.21 5.41
65 4.58 4.83 5.09 5.33 5.53
66 4.65 4.92 5.19 5.45 5.67
67 4.72 5.01 5.30 5.58 5.81
68 4.80 5.11 5.42 5.72 5.97
69 4.89 5.21 5.55 5.88 6.14
70 4.98 5.33 5.69 6.04 6.33
71 5.07 5.45 5.85 6.22 6.52
72 5.18 5.58 6.01 6.41 6.74
73 5.29 5.72 6.19 6.62 6.97
74 5.41 5.88 6.38 6.84 7.22
75 5.53 5.53 6.58 7.09 7.49
*Adjusted Age of annuitant. Refer to
the explanation of adjusted age on page 22.
The table above is based on the "1983 Individual Female Annuitant Mortality Table A" assuming an interest rate of 4% per year
compounded annually. Settlement rates for any age not shown above will be calculated on the same basis as those rates shown in the
table above. Such rates will be furnished by us upon request. Amounts shown in the table below are based on an assumed interest
rate of 4% per year compounded annually.
Plan E - Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
10 $10.06 17 $6.71 24 $5.35
11 9.31 18 6.44 25 5.22
12 8.69 19 6.21 26 5.10
13 8.17 20 6.00 27 5.00
14 7.72 21 5.81 28 4.90
15 7.34 22 5.64 29 4.80
16 7.00 23 5.49 30 4.72
/TABLE
<PAGE>
<PAGE>
PAGE 1
GROUP DEFERRED ANNUITY CERTIFICATE
This annuity certificate summarizes the provisions of the Group
Deferred Annuity Contract specified on the enrollment application.
It does not amend or modify any of the provisions of the Group
Contract. All rights, privileges and benefits are governed by the
provisions of the Group Contract. The Group Contract may be
inspected by the certificate owner or annuitant at the
Contractholder's office during office hours.
If the annuitant is living on the Retirement Date, we will begin to
pay you monthly annuity payments. Any payments made by us are
subject to the Terms of the Group Contract. Any payments made by
us are subject to the Terms of the Group Contract. [sic]
We issue this ccertificate in consideration of your enrollment
application and the payment of the single purchase payment.
Signed for and issued by IDS Life Insurance Company of New York,
Albany, New York, as of the certificate date shown below.
ACCUMULATION VALUES, WHEN BASED ON THE INVESTMENT RESULTS OF THE
SEPARATE ACCOUNT, ARE VARIABLE AND NOT GUARANTEED AS TO FIXED
DOLLAR AMOUNT.
Group Deferred Annuity Certificate
- - Flexible purchase payments
- - Optional fixed dollar or variable accumulation values
- - Fixed dollar annuity payments
- - Annuity payments to begin on the retirement date
- - This certificate is nonparticipating. Dividends are not payable.
VARIABLE PROVISIONS ARE FOUND ON PAGE 9
NOTICE OF YOUR RIGHT TO EXAMINE THIS CERTIFICATE FOR 20 DAYS
If for any reason you are not satisfied with this certificate,
return it to us or our agent within 20 days after you receive it.
We will then cancel this certificate. We will refund all payments
made. This certificate will then be considered void from its
start.
President
\s\ James A. Mitchell
Secretary
\s\Michael B. Carlin<PAGE>
PAGE 2
GUIDE TO CERTIFICATE PROVISIONS
Definitions
Important words and meanings/Page 3
General Provisions
Entire contract; Contract modification; Incontestability; Benefits
based on incorrect data; State laws, Reports to owner; Evidence of
survival; Protection of proceeds; Payments by us; Voting
rights/Page 4
Ownership and Beneficiary
Owner rights; Change of ownership; Beneficiary; Change of
Beneficiary; Assignment/Page 5
Payments to Beneficiary
Describes options and amounts payable upon death/Page 6
Purchase Payments
Purchase payments amounts; Payment limits; Allocations of purchase
payments/Page 7
Certificate Value
Describes the fixed and variable account certificate values;
Interest to be credited; Certificate administrative charge; Premium
taxes; Transfers of Contract Values/Page 8
Fixed and Variable Accounts
Describes the fixed account; Describes the variable subaccounts,
accumulation units and values; Net investment factor; Mortality and
expense risk charge; Variable account administrative charge/Page 9
Surrender Provisions
Surrender of the certificate for its surrender value; Rules for
surrender; Premature distribution penalty tax/Page 11
Annuity Provisions
When annuity payments begin; Different ways to receive annuity
payments; Determination of payment amounts/Page 13
Table of Settlement Rates
Table showing the amount of the fixed dollar annuity payments for
the various payment plans/Page 14
THE CERTIFICATE PROVISIONS WILL CONTROL IN THE EVENT OF A CONFLICT
BETWEEN CERTIFICATE PROVISIONS AND CONTRACT PROVISIONS
CERTIFICATE DATA
Upon issuance of this certificate your initial purchase payment has
been applied to the fixed and variable accounts as shown below.
You may make additional payments and change the purchase payment
allocation as provided in the Group Contract. Refer to the
purchase payments provision on Page 7.
<PAGE>
PAGE 3
Purchase Payment
Variable Subaccounts Allocation Percentage
Money Market 10%
Intermediate High Grade 10%
Diversified Strategic Income 10%
Equity Income 10%
Equity Index 10%
Growth & Income 10%
Appreciation 10%
Fixed Account 30%
Surrender Charge: If you surrender all or a portion of this
certificate surrender charges may apply. A surrender charge
applies if all or part of the certificate value is surrendered
during the first six payment years following a purchase payment.
The surrender charge schedule is:
Payment Year Surrender Charge
1 6% of purchase payment surrendered
2 5% of purchase payment surrendered
3 4% of purchase payment surrendered
4 3% of purchase payment surrendered
5 2% of purchase payment surrendered
6 1% of purchase payment surrendered
Thereafter 0% of purchase payment surrendered
After the first certificate year, you may surrender up to 10
percent of your prior certificate anniversary certificate value
each certificate year without incurring a surrender charge. There
is also no surrender charge after the first certificate anniversary
on certificate earnings defined as:
1. the certificate value; minus
2. the sum of all purchase payments received that have not been
previously surrendered; minus
3. the amount of the 10% free withdrawal, if applicable.
Refer to the surrender charge provision on Page 10 for additional
surrender charge information.
Certificate Administrative Charge: See Page 8.
Maximum Total Purchase Payments in the first and later certificate
years are $1,000,000. We reserve the right to change this maximum
on a uniform basis for all certificateholders in a class.
CERTIFICATE DATA
Annuitant: John Doe
Certificate Number: 990-SAMPLE
Single Purchase Payment: $10,000.00
Certificate Type: Non-qualified
Certificate Owner: John Doe
Certificate Date: November 1, 1991
Retirement Date: November 1, 2021
<PAGE>
PAGE 4
Annuitant: John Doe Certificate Number: 990-SAMPLE
Fixed Account
Table of Guaranteed Minimum Certificate and Surrender Values
Guaranteed Interest Rate: 4% Per Year Compounded Annually
The following table shows the guaranteed minimum fixed account
certificate and surrender values based on these assumptions:
(1) $10,000 initial purchase payment received and allocated
100% to the fixed account;
(2) There are no additional payments;
(3) There are no premium tax charges.
(4) There are no surrenders.
If purchase payments are otherwise paid or allocated or if there
are surrenders, or premium tax charges, the values below will be
adjusted in accordance with the provisions of the Group Contract.
End of Guaranteed Guaranteed
Certificate Minimum Minimum
/Payment Fixed Account Fixed Account
Year Certificate Value Surrender Value
1 $10,370.00 $ 9,770.00
2 10,754.80 10,270.83
3 11,154.99 10,754.99
4 11,571.19 11,271.19
5 12,004.04 11,804.04
6 12,454.20 12,354.20
7 12,922.37 12,922.37
8 13,409.26 13,409.26
9 13,915.63 13,915.63
10 14,442.26 14,442.26
11 14,989.95 14,989.95
12 15,559.55 15,559.55
13 16,151.93 16,151.93
14 16,768.01 16,768.01
15 17,408.73 17,408.73
16 18,075.08 18,075.08
17 18,768,08 18,768.08
18 19,488.80 19,488.80
19 20,238.35 20,238.35
20 21,017.89 21,017.89
21 21,828.60 21,828.60
22 22,671.75 22,671.75
23 23,548.62 23,548.62
24 24,460.56 24,460.56
25 25,408.99 25,408.99
26 26,395.35 26,395.35
27 27,421.16 27,421.16
28 28,488.01 28,488.01
29 29,597.53 29.597.53
30 30,751.43 30,751.43
<PAGE>
PAGE 5
Variable account certificate and surrender values are not
guaranteed. Information concerning certificate and surrender
values will be provided to you at any time upon written request.
DEFINITIONS
The following words are used often in this certificate. When we
use these words, this is what we mean:
annuitant
The person on whose life monthly annuity payments depend.
you, your
The owner of this certificate. The owner may be someone other than
the annuitant. The owner is shown in the enrollment application
unless the owner has been changed as provided in this certificate.
we, us, our
IDS Life Insurance Company of New York
accumulation unit
An accumulation unit is an accounting unit. It is used to
calculate the certificate value prior to settlement.
certificate date
It is the date from which certificate anniversaries, certificate
years, and certificate months are determined. Your certificate
date is shown under Certificate Data.
certificate anniversary
The same day and month as the certificate date each year that the
certificate remains in force.
payment year
Each certificate year in which you make a purchase payment and each
succeeding year measured from the end of the certificate year
during which you made such a purchase payment. For example, if you
make an initial purchase payment of $15,000 and then make an
additional purchase payment of $10,000 during the 4th certificate
year, the 6th certificate year will be:
- the 6th payment year with respect to your initial $15,000
purchase payment; and
- the 3rd payment year with respect to your additional
$10,000 purchase payment
certificate value
The sum of the: (1) Fixed Account Certificate Value; and the (2)
Variable Account Certificate Value.
retirement date
The date shown under Certificate Data on which annuity payments are
to begin. This date may be changed as provided in this
certificate.
<PAGE>
PAGE 6
settlement
The application of the certificate value of this certificate to
provide fixed dollar annuity payments.
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
variable account
The variable account is a separate investment account of ours. It
consists of several subaccounts. Each subaccount is named under
Certificate Data, in the certificate.
fixed annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
written request
A request in writing signed by you and delivered to us at our home
office.
Code
The Internal Revenue Code of 1986, as amended, and all related laws
and regulations which are in effect during the term of this
certificate.
GENERAL PROVISIONS
Entire Contract
The entire contract consists of: the Group Contract; the
application of the Group Contractholder, which is attached to the
Group Contract; and the enrollment application.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under the contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under the contract.
Contract Modification
We will modify the Group Contract and certificates if needed to
qualify certificates issued under the contract as annuity
certificates under Section 72 of the Code and all related laws and
regulations which are in effect during the term of the contract.
<PAGE>
PAGE 7
We will obtain the approval of the State of New York and any other
regulatory authority for the modifications. We will provide you
with notice and copy of any such modifications, approved for use in
the state of jurisdiction, and an explanation of their effect upon
your certificate. You may reject the modifications by writing to
us.
Incontestable
This certificate is incontestable from its date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age or sex that is incorrect, benefits will be recalculated on the
basis of the correct data.
Any underpayments made by us will immediately be paid in a single
sum with an interest credit of 6% per annum.
Any overpayments made by us will be subtracted from the future
payments together with an interest credit of 6% per annum.
State Laws
This certificate is governed by the law of the state in which it is
delivered to the certificate owner. The values and benefits of
this certificate are at least equal to those required by such state
and by the state in which the Group Contract is delivered to the
Group Contractholder. Any paid up annuity, cash surrender or death
benefit is not less than the minimum benefit required by any
statute of such state.
Reports to Owner
At least once a year we will send you a statement showing the
certificate value and the certificate cash surrender value. The
statement will be based on the laws and regulations of the state in
which the certificate is delivered to the certificate owner and of
any other applicable laws or regulations that apply to the Group
Contract.
Evidence of Survival
Where any payments under this certificate depend upon the recipient
or annuitant being alive on a certain date, proof that such
condition has been met may be required by us. Such proof may be
required prior to making the payments.
Protection of Proceeds
Payments under this certificate are not assignable by any
beneficiary prior to the time they are due. To the extent allowed
by law, payments are not subject to the claims of creditors or
legal process.
Payments by Us
All sums payable by us are payable at our home office. Any payment
of a variable annuity or surrender based upon the variable
certificate value shall be payable only from the variable accounts.
<PAGE>
PAGE 8
Voting Rights
So long as federal law requires, you may have the right to vote at
the meetings of the Variable Shareholders. If you have voting
rights we will send a notice to you telling the time and place of a
meeting. The notice will also explain matters to be voted upon and
how many votes you get.
OWNERSHIP AND BENEFICIARY
Owner Rights
As long as the annuitant is living and unless otherwise provided in
this certificate, you may exercise all rights and privileges
provided in this certificate or allowed by us. Your entire
interest is non-forfeitable.
Change of Ownership
You may change the ownership of this certificate.
Any change of ownership must be made by written request on a form
approved by us. The change must be made while the annuitant is
living. Once the change is received by us, it will take effect as
of the date of your request, subject to any action taken or payment
made by us before the receipt.
Beneficiary
Beneficiaries are those you have named in the enrollment
application or later changed as provided below, to receive benefits
of this certificate if you or the annuitant die while this
certificate is in force.
Only those beneficiaries who are living when death benefits become
payable may share in the benefits, if any. If no beneficiary is
then living, we will pay the benefits to you, if living, otherwise
to your estate.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
received by us, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the
receipt.
Assignment
You can assign this certificate or any interest in it while the
annuitant is living. Your interest and the interest of any
beneficiary is subject to the interest of the assignee. An
assignment is not a change of ownership and an assignee is not an
owner as these terms are used in this certificate. Any amounts
payable to the assignee will be paid in a single sum.
A copy of any assignment must be submitted to us at our home
office. Any assignment is subject to any action taken or payment
made by us before the assignment was received at our home office.
We are not responsible for the validity of any assignment.
<PAGE>
PAGE 9
PAYMENTS TO BENEFICIARY
Death Benefits Before the Retirement Date
If you or the annuitant die before the fifth certificate
anniversary while the certificate is in force, we will pay the
beneficiary the greater of the certificate value or the purchase
payments paid less any amounts surrendered.
On or after the initial fifth certificate anniversary, and each
subsequent fifth certificate anniversary thereafter, we will pay
the beneficiary the greater of the certificate value or a minimum
guaranteed death benefit which equals:
1. the death benefit calculated as of the previous fifth
certificate anniversary; plus
2. any purchase payments made since the previous fifth certificate
anniversary; minus
3. any surrenders since the previous fifth certificate
anniversary.
The above amount will be paid in a lump sum upon the receipt of due
proof of death of you or the annuitant, whichever first occurs.
The beneficiary may elect to receive payment anytime within 5 years
after the date of death.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. The beneficiary elects the plan within 60 days after we receive
proof of death; and
2. The plan provides payments over a period which does not exceed
the life or life expectancy of the beneficiary; and
3. Payments must begin no later than one year after the date of
death.
In this event, the reference to "annuitant" in the Annuity Payment
Plans section shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the certificate value as of the valuation date on
or next following the date on which due proof of death is received
at our home office.
Required Distribution at Annuitant's Death Prior to the Retirement
Date
The Code requires a distribution on the death of the annuitant if a
certificate is owned by a corporation or other non-individual. If
we receive due proof that the annuitant died while this certificate
was in force before settlement, we will pay to the beneficiary the
death benefit described in Death Benefits Before the Retirement
Date. The death benefit will be determined as of the date on which
due proof of death is received at our home office.
<PAGE>
PAGE 10
Refer to the other provisions of this Payments to Beneficiary
section for an explanation of the distribution methods and
distribution timing the beneficiary may elect. A spouse
beneficiary, if eligible as explained in the provision below, may
elect spousal continuation.
Spouse's Option to Continue Certificate
If you die prior to the retirement date, and your spouse is the
sole beneficiary of the certificate, your spouse may forego receipt
of the death benefit and instead keep the certificate in force as
owner and may make additional purchase payments to the certificate.
The election by your spouse must be made within 60 days after we
receive due proof of death. Additional purchase payments may be
made to the annuity.
Death After the Retirement Date
If annuity payments are being made under Plans B, C or E (see
Annuity Provisions), any remaining guaranteed payments will be
continued to the beneficiary, if living; if not, your estate.
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments you make for this certificate
and the benefits it provides. Purchase payments consist of your
initial purchase payment and any additional optional purchase
payments you make. Purchase payments must be paid or mailed to us
at our home office or to an authorized agent. If requested, we
will give you a receipt for your purchase payments. Upon payment
to us, purchase payments become our property.
Net purchase payments are that part of your purchase payments
applied to the certificate value. A net purchase payment is equal
to the purchase payment less any applicable premium tax charge.
Additional Purchase Payments
Additional purchase payments may be made until the earlier of:
1. the date the certificate terminates by surrender or otherwise;
or
2. the date on which annuity payments begin.
Additional purchase payments are subject to the Payment Limits
Provision below.
Payment Limits Provision
Maximum Purchase Payments - The maximum total certificate purchase
payments may not exceed the amounts shown under Certificate Data.
We reserve the right to increase the maximums on a uniform basis
for all certificateholders in a class.
Additional Purchase Payments - You may make additional purchase
payments of at least $500.
<PAGE>
PAGE 11
Allocation of Purchase Payments
You instruct us on how you want your purchase payments allocated
among the fixed account and the variable subaccounts. Your choice
for the fixed account and each variable subaccount may be made in
any whole percent from 0% to 100%. No allocation may be made that
would result in a fixed account or variable subaccount value of
less than $500. Your allocation instructions as of the certificate
date are shown under Certificate Data.
By written request, or by another method agreed to by us, you may
change the choice of accounts or percentages. The first net
purchase payment will be allocated as of the date the purchase
payment is received at our home office. Net purchase payments
after the first will be allocated as of the end of the valuation
period during which we receive the payment at our home office.
CERTIFICATE VALUE
Certificate Value
The certificate value of a certificate at any time is the sum of:
1. the Fixed Account Certificate Value; and
2. the Variable Account Certificate Value.
If:
1. part or all of the certificate value is surrendered; or
2. charges described herein are made against the certificate
value;
then a number of accumulation units from the variable subaccounts
and an amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed
account or variable subaccounts that you specify. Otherwise, the
number of units from the variable subaccounts and the amount from
the fixed account will be deducted in the same proportion that your
interest in each bears to the total certificate value.
Fixed Account Certificate Value
The fixed account certificate value at any time will be:
1. the sum of all amounts credited to the fixed account under the
certificate; less
2. any amounts deducted for charges or surrenders.
Interest to be Credited
We will credit interest to the fixed account certificate value.
Interest will begin to accrue on the date the purchase payments are
received in our home office. Such interest will be credited at
rates that we determine from time to time. However, we guarantee
that the rate will not be less than the Guaranteed Interest Rate
shown under Certificate Data.
<PAGE>
PAGE 12
Variable Account Certificate Value
The variable account certificate value at any time will be:
1. the sum of the value of all variable subaccount accumulation
units under this certificate resulting from purchase payments
so allocated, or transfers among the variable and fixed
accounts; less
2. any units deducted for charges or surrenders.
Certificate Administrative Charge
We charge a fee for establishing and maintaining our records for
this certificate. The charge is $30 per year and is deducted from
the certificate value at the end of each certificate year. The
charge deducted will be prorated among the variable subaccounts and
the fixed account in the same proportion your interest in each
bears to the total certificate value.
If you fully surrender this certificate, we deduct a certificate
administrative charge that is prorated based on the number of days
from your last certificate anniversary to the date of full
surrender. The charge does not apply after settlement of this
certificate.
Premium Tax Charges
A charge will be made by us against the certificate value of this
certificate for any applicable premium taxes not previously
deducted.
Transfers of Certificate Values
While this certificate is in force prior to the settlement date,
transfers of certificate values may be made as outlined below:
1. You may transfer all or a part of the values held in one or
more of the variable subaccounts to another one or more of the
variable subaccounts.
2. You may transfer all or a part of the values held in one or
more of the variable subaccounts to or from the fixed account
subject to these restrictions:
(a) You may transfer certificate values from the fixed
account to a variable subaccount, or vice versa, up to
six times per certificate year subject to item (b)
below.
(b) If a transfer is made from the fixed account to a
variable subaccount, no transfer from any variable
subaccount to the fixed account may be made for six
months from the transfer date.
You may make a transfer by written request. There is no fee or
charge for these transfers. However, the minimum transfer amount
is $500, or if less, the entire value in the subaccount or in the
fixed account from which the transfer is being made, or such other
minimum amounts agreed to by us.
<PAGE>
PAGE 13
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all our
assets other than
1. those in the variable account; and
2. those in any other segregated asset account.
The Variable Account
The variable account is a separate investment account of ours. If
consists of several subaccounts which are named under Certificate
Data. We have allocated a part of our assets for this and certain
other certificates and contracts to the variable account. Such
assets remain our property. However, they may not be charged with
the liabilities from any other business in which we may take part.
Investments of the Variable Account
Purchase payments applied to the variable account will be allocated
as specified by the owner. Each variable subaccount will buy, at
net asset value, shares of the Portfolio shown for that subaccount
under Certificate Data or as later added or changed.
Valuation of Assets
Portfolio shares in the variable subaccounts will be valued at
their net asset value.
Variable Account Accumulation Units
The number of accumulation units for each of the variable
subaccounts is found by adding the number of accumulation units
resulting from:
1. purchase payments allocated to the subaccount; and
2. transfers to the subaccount;
and subtracting the number of certificate accumulation units
resulting from:
1. transfers from the subaccount; and
2. surrenders (including surrender charges) from the subaccount;
and
3. certificate administrative charge deductions from the
subaccount.
The number of accumulation units added or subtracted for each of
the above transactions is found by dividing:
1. the number allocated to or deducted from the subaccount; by
2. the accumulation unit value for the subaccount for the
respective valuation period during which we received the
purchase payment or transfer value, or during which we deducted
transfers, surrenders, surrender charges or certificate
administrative charges.
<PAGE>
PAGE 14
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable
subaccounts was set at $1 when the first Portfolio shares were
bought. The value for any later valuation period is found as
follows:
The accumulation unit value for each variable subaccount for the
last prior valuation period is multiplied by the net investment
factor for the same subaccount for the next following valuation
period. The result is the accumulation unit value. The value of
an accumulation unit may increase or decrease from one valuation
period to the next.
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable subaccount from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such subaccount for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
and (4) from the result. This is done where:
1. is the sum of
a. the net asset value per share of the Portfolio held in the
variable subaccount determined at the end of the current
valuation period; plus
b. the per share amount of any dividend or capital gain
distribution made by the Portfolio held in the variable
subaccount, if the "ex-dividend" date occurs during the
current valuation period.
2. is the net asset value per share of the Portfolio held in the
variable subaccount, determined at the end of the last prior
valuation period.
3. is a factor representing the mortality and expense risk charge.
4. is a factor representing the variable account administrative
charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable subaccounts equal, on an
annual basis, to 1.25% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under certificates of this type. The deduction will
be:
1. made from each variable subaccount; and
2. computed on a daily basis.
<PAGE>
PAGE 15
Variable Account Administrative Charge
In calculating accumulation unit values we will deduct a variable
account administrative charge from the variable subaccounts equal,
on an annual basis, to 0.25% of the daily net asset value. This
deduction is made to compensate us for certain administrative and
operating expenses for certificates of this type. The deduction
will be:
1. made from each variable subaccount; and
2. computed on a daily basis.
SURRENDER PROVISIONS
Surrender
By written request and subject to the rules below you may:
1. surrender this certificate for the total surrender value; or
2. partially surrender this certificate for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the certificate value;
2. minus the certificate administrative charge, prorated based on
the number of days from your last certificate anniversary to
the date of full surrender;
3. minus any surrender charge.
Surrender Charge
If you surrender all or part of the certificate, you may be subject
to a surrender charge. A surrender charge applies if all or part
of the certificate value is surrendered during the first six
payment years following a purchase payment. The surrender charge
schedule is:
Payment Year Surrender Charge
1 6% of purchase payment surrendered
2 5% of purchase payment surrendered
3 4% of purchase payment surrendered
4 3% of purchase payment surrendered
5 2% of purchase payment surrendered
6 1% of purchase payment surrendered
Thereafter 0% of purchase payment surrendered
After the first certificate year, each year you may surrender up to
10 percent of your certificate value on the prior certificate
anniversary without incurring a surrender charge. There is also no
surrender charge after the first certificate year on certificate
earnings defined as:
1. the certificate value at the time of surrender; minus
2. the sum of all purchase payments received that have not been
previously surrendered; minus
3. the amount of the 10% free withdrawal, if applicable.
<PAGE>
PAGE 16
For purposes of determining the surrender charge, surrenders will
be deemed to be taken:
1. First, from any applicable 10% free withdrawal amount. There
is no surrender charge on any applicable 10% free withdrawal
amount.
2. Next, from certificate earnings in excess of any applicable 10%
free withdrawal amount. There is no surrender charge on certif
icate earnings of any applicable 10% free withdrawal amount.
3. Finally, from purchase payments on a first in - first out
basis. There is a surrender charge on purchase payments
depending on the payment year of the purchase payment.
Surrender Charge Calculation
The surrender charge is calculated by multiplying the amount(s)
representing purchase payments by the applicable payment year
surrender charge percentage.
For example, the surrender charge on a total surrender request in
certificate year 5 for a certificate with this history:
1. a $10,000 purchase payment , which is now in payment year 5;
and
2. a $20,000 purchase payment, which is now in payment year 2; and
3. a $40,000 prior anniversary value at time of surrender; and
4. a $42,000 certificate value when surrendered in certificate
year 5; and
5. no previous surrenders
is calculated this way:
Surrender Charge Explanation
$ 0 $4,000 (10% of $40,000 prior anniversary
certificate value free withdrawal amount) without
surrender charge
$ 0 $8,000 (certificate earnings in excess of
applicable 10% free withdrawal amount) without
surrender charge
$ 200 $10,000 times 2% (payment year 5 surrender charge
percentage)
$1000 $20,000 times 5% (payment year 2 surrender charge
percentage)
$1200
Rules for Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method agreed to by
us:
(a) while this certificate is in force; and
(b) prior to the earlier of the retirement date or the death
of the annuitant.
<PAGE>
PAGE 17
2. You must surrender an amount equal to at least $500. Each
variable subaccount value and the fixed account value after a
partial surrender must be either $0 or at least $500.
3. The amount surrendered, less any charges, will normally be paid
to you within seven days of the receipt of your written request
and the certificate, if required. For surrenders from the
fixed account, we have the right to defer payment to you for up
to six months from the date we receive your request.
4. For partial surrenders, if you do not specify from which
account the surrender is to be made, the surrender will be made
from the variable subaccounts and the fixed account in the same
proportion as your interest in each bears to the certificate
value.
Upon surrender for the full surrender value this certificate will
terminate. We may require that you return the certificate to us
before we pay the full surrender value.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable subaccounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is restricted; or
3. When an emergency exists as a result of which:
(a) disposal of securities held in the variable subaccounts
is not reasonably practical; or
(b) it is not reasonably practical to fairly determine the
value of the net assets of the variable subaccounts; or
4. During any other period when the Securities and Exchange
Commission, by order, so permits for the protection of security
holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
Premature Distribution Penalty Tax
You may incur a federal 10% premature distribution penalty tax.
This may occur if you surrender all or a portion of the certificate
or settle the certificate using an annuity payment plan prior to
the close of the tax year in which you attain age 59 1/2.
ANNUITY PROVISIONS
Settlement
When settlement occurs, the certificate value will be applied to
make fixed dollar annuity payments. The first payment will be made
as of the retirement date. This date is shown under Certificate
Data. Before payments begin we will require satisfactory proof
that the annuitant is alive. We may also require that you exchange
the certificate for a supplemental contract or certificate which
provides the annuity payments.
<PAGE>
PAGE 18
Change of Retirement Date
You may change the retirement date shown in Certificate Data for
this certificate. Tell us the new date by written request. If you
select a new date, it must be at least 30 days after we receive the
written request at our home office.
The retirement date may not be later than the later of:
1. the annuitant's 85th birthday; or
2. the tenth certificate anniversary.
Annuity Payment Plans
You can schedule receipt of annuity payments according to one of
the Plans A through E below or another plan agreed to by us.
Plan A - This provides monthly annuity payments during the lifetime
of the annuitant. No payments will be made after the annuitant
dies.
Plan B - This provides monthly annuity payments during the lifetime
of the annuitant with a guarantee by us that payments will be made
for a period of at least five, ten or fifteen years. You must
select the guaranteed period.
Plan C - This provides monthly annuity payments during the lifetime
of the annuitant with a guarantee by us that payments will be made
for a certain number of months. We determine the number of months
by dividing the amount applied under this plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the lifetime of the
annuitant and joint annuitant. When either the annuitant or the
joint annuitant dies we will continue to make monthly payments
during the lifetime of the survivor. No payments will be made
after the death of both the annuitant and joint annuitant.
Plan E - This provides monthly fixed dollar annuity payments for a
period of years. The period of years may be no less than 10 nor
more than 30.
Plan Selection Requirements
You may select the plan by written request to us at least 30 days
before the retirement date. If at least 30 days before the
retirement date we have not received at our home office your
written request to select a plan, we will make fixed dollar
payments according to Plan B with payments guaranteed for ten
years.
If you select a plan that has a payment amount that is the same as
another plan having a longer guarantee period, then the plan with
the longer guarantee period will be deemed to have been chosen.
If the amount to be applied to a plan would not provide a monthly
payment of at least $50, we have the right to change the frequency
of the payment or to make a lump sum payment of the certificate
value.
<PAGE>
PAGE 19
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments remain the same.
At settlement the fixed account certificate value will be applied
to our fixed dollar Table of Settlement Rates then in effect. This
will be done in accordance with the payment plan chosen. The
minimum amount payable for each $1,000 so applied is shown in Table
A on page 15.
TABLE OF SETTLEMENT RATES
The amount of the first and all subsequent monthly fixed dollar
annuity payments for each $1,000 of value applied under any payment
plan will be based on our fixed dollar Table of Settlement Rates in
effect on the settlement date. Such rates are guaranteed to be not
less than those shown in Table A.
In addition, the amount of such fixed annuity payments will not be
less than that which would be provided if a single premium
immediate annuity certificate then offered by us to annuitants in
the same class were to be purchased with the greater of:
1. the cash surrender value of the certificate; or
2. 95% of the accumulation value of the certificate.
The amount of such fixed annuity payments under Plans A, B and C
will depend upon the sex and the adjusted age of the annuitant on
the date of settlement. The amount of such annuity payments under
Plan D will depend on the sex and adjusted age of the annuitant and
the joint annuitant on the date of settlement.
Adjusted age shall be equal to the age on the nearest birthday
minus an "adjustment" depending on the calendar year of birth of
the annuitant as follows:
Calendar Year of Annuitant's Birth Adjustment
Prior to 1920 0
1920 through 1924 1
1925 through 1929 2
1930 through 1934 3
1935 through 1939 4
1940 through 1944 5
1945 through 1949 6
1950 through 1959 7
1960 through 1969 8
1970 through 1979 9
1980 through 1989 10
After 1989 11
<PAGE>
PAGE 20<TABLE><CAPTION>
TABLE A - TABLE OF FIXED DOLLAR SETTLEMENT RATES
NON-QUALIFIED AND IRA CERTIFICATES
Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Life 5 Years 10 Years 15 Years With
Adj. Income Certain Certain Certain Refund
Age* M F M F M F M F M F
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
45 4.53 4.24 4.52 4.23 4.50 4.23 4.46 4.21 4.42 4.19
46 4.59 4.28 4.58 4.28 4.55 4.27 4.51 4.25 4.47 4.23
47 4.65 4.33 4.64 4.33 4.61 4.32 4.56 4.30 4.52 4.27
48 4.72 4.38 4.71 4.38 4.67 4.37 4.62 4.34 4.58 4.32
49 4.79 4.44 4.77 4.43 4.74 4.42 4.68 4.39 4.63 4.36
50 4.86 4.50 4.85 4.49 4.81 4.47 4.74 4.45 4.69 4.41
51 4.94 4.56 4.92 4.55 4.88 4.53 4.80 4.50 4.76 4.47
52 5.02 4.62 5.00 4.61 4.95 4.59 4.87 4.56 4.82 4.52
53 5.10 4.69 5.08 4.68 5.03 4.66 4.94 4.62 4.90 4.58
54 5.19 4.76 5.17 4.75 5.11 4.72 5.01 4.68 4.97 4.64
55 5.29 4.84 5.26 4.83 5.20 4.80 5.09 4.74 5.05 4.71
56 5.39 4.92 5.36 4.91 5.29 4.87 5.17 4.81 5.13 4.77
57 5.49 5.00 5.47 4.99 5.38 4.95 5.25 4.88 5.21 4.85
58 5.61 5.09 5.58 5.08 5.48 5.03 5.33 4.96 5.30 4.92
59 5.73 5.19 5.70 5.17 5.59 5.12 5.42 5.04 5.40 5.00
60 5.86 5.29 5.82 5.27 5.70 5.22 5.51 5.12 5.50 5.09
61 6.00 5.40 5.96 5.38 5.82 5.32 5.60 5.21 5.60 5.18
62 6.16 5.52 6.10 5.50 5.95 5.42 5.69 5.30 5.72 5.27
63 6.32 5.65 6.26 5.62 6.08 5.53 5.79 5.39 5.83 5.37
64 6.49 5.78 6.42 5.75 6.21 5.65 5.89 5.49 5.96 5.48
65 6.68 5.92 6.60 5.89 6.35 5.77 5.98 5.58 6.09 5.59
66 6.88 6.08 6.78 6.03 6.50 5.90 6.08 5.69 6.23 5.71
67 7.09 6.24 6.98 6.19 6.65 6.04 6.18 5.79 6.38 5.83
68 7.31 6.42 7.18 6.36 6.81 6.19 6.28 5.90 6.53 5.97
69 7.56 6.61 7.40 6.54 6.97 6.34 6.37 6.01 6.69 6.11
70 7.82 6.81 7.64 6.74 7.14 6.50 6.47 6.12 6.86 6.26
71 8.09 7.04 7.88 6.95 7.31 6.67 6.55 6.22 7.04 6.42
72 8.39 7.28 8.14 7.17 7.48 6.84 6.64 6.33 7.23 6.59
73 8.71 7.54 8.41 7.41 7.65 7.02 6.72 6.44 7.43 6.77
74 9.05 7.83 8.70 7.67 7.83 7.21 6.80 6.54 7.64 6.97
75 9.41 8.14 9.00 7.95 8.00 7.40 6.87 6.64 7.86 7.17
/TABLE
<PAGE>
PAGE 21<TABLE><CAPTION>
[Table A, cont'd]
Plan D - Joint and Survivor
Adj. Adjusted Age of Female Joint Annuitant
Male 10 Years 5 Years Same 5 Years 10 Years
Age* Younger Younger Age Older Older
<S> <C> <C> <C> <C> <C>
45 3.80 3.89 3.99 4.10 4.19
46 3.82 3.92 4.03 4.14 4.24
47 3.85 3.95 4.07 4.18 4.29
48 3.87 3.98 4.10 4.22 4.34
49 3.90 4.02 4.15 4.27 4.39
50 3.93 4.06 4.19 4.32 4.45
51 3.96 4.09 4.23 4.38 4.51
52 4.00 4.13 4.28 4.43 4.57
53 4.03 4.18 4.33 4.49 4.64
54 4.07 4.22 4.39 4.56 4.72
55 4.11 4.27 4.45 4.62 4.79
56 4.15 4.32 4.51 4.70 4.88
57 4.19 4.37 4.57 4.77 4.96
58 4.24 4.43 4.64 4.85 5.06
59 4.28 4.49 4.71 4.94 5.16
60 4.34 4.55 4.79 5.03 5.27
61 4.39 4.62 4.87 5.13 5.38
62 4.45 4.69 4.96 5.24 5.50
63 4.51 4.77 5.06 5.35 5.64
64 4.57 4.85 5.16 5.48 5.78
65 4.64 4.94 5.27 5.61 5.93
66 4.71 5.03 5.38 5.75 6.09
67 4.79 5.13 5.51 5.90 6.27
68 4.87 5.24 5.64 6.06 6.46
69 4.96 5.35 5.78 6.24 6.66
70 5.06 5.47 5.94 6.43 6.87
71 5.16 5.60 6.10 6.63 7.11
72 5.26 5.74 6.28 6.84 7.36
73 5.38 5.89 6.47 7.08 7.62
74 5.50 6.05 6.68 7.33 7.91
75 5.63 6.22 6.90 7.60 8.22
*Adjusted Age of annuitant. Refer to the explanation of adjusted age on page 22.
M = Male F = Female
The table above is based on the "1983 Individual Annuitant Mortality Table A" assuming an
interest rate of 4% per year compounded annually. Settlement rates for any age, or any
combination of age and sex not shown above, will be calculated on the same basis as those
rates shown in the table above. Such rates will be furnished by us upon request. Amounts
shown in the table below are based on an assumed interest rate of 4% per year compounded
annually.
Plan E - Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
10 $10.06 17 $6.71 24 $5.35
11 9.31 18 6.44 25 5.22
12 8.69 19 6.21 26 5.10
13 8.17 20 6.00 27 5.00
14 7.72 21 5.81 28 4.90
15 7.34 22 5.64 29 4.80
16 7.00 23 5.49 30 4.72
/TABLE
<PAGE>
<PAGE>
PAGE 1
Group Deferred Variable Annuity Application
1. Full legal name of applicant ABC Trust Company
[x] corporation
[ ]
Principal Office 456 Any street Anycity Anystate zzzzz
(Street) (City) (State) (Zip)
2. Nature of Business Trustee under Trust Agreement dated xx-xx-
xx by and between IDS Life Insurance
Company of New York and ABC Trust Company
3. If clients of subsidiary or affiliate companies (companies
under common control through stock ownership, contract, or
otherwise) are to be covered, list legal names and addresses
of such companies and the nature of this business.
4. Requested Effective Date: November 1, 1991
5. Eligibility Requirements: Clients of Shearson Lehman
Brothers, Inc.
6. Remarks:
I/we hereby acknowledge receipt of current prospectuses for the
variable annuity and any funds involved.
Dated at Anycity , State of Anystate ,
the 29th day of October , 1991.
Witness I.M. Witness Applicant ABC Trust Company
by I.M. Trust Officer
Title Trust Officer
<PAGE>
<PAGE>
PAGE 1
IDS Life Insurance Company
of New York
Box 5144
Albany, New York 12055
SYMPHONY Variable Annuity Group Enrollment Application
1. Full Name of Annuitant (First, Middle Initial, Last)
John Doe
2. Address (Street Address or P.O. Box, City, State, Zip)
123 Anystreet
Anycity, Anystate zzzzz
Phone Number
(111) 111-1111
3. Sex M F 4. Date of Birth 5. Social Security Number
x 10-1-56 111-11-1111
6. Beneficiary (Primary) Relationship
Mary Doe Spouse
Contingent Beneficiary (if any) Relationship
7. Full Name of Certificate Owner*
(If other than Annuitant or if Joint Spousal Ownership)
*For joint spousal owners, insert information about both owners
including both Social Security Numbers. Circle the Social Security
Number to be used for tax-reporting purposes.
Address (Street Address or P.O. Box, City, State, Zip)
Relationship to Annuitant
Social Security Number Date of Birth
8. Will the annuity applied for replace any existing insurance or
annuity? Yes X No
(If yes, send applicable replacement requirements)
9. Check the applicable plan:
X Non-Qualified Annuity
Individual Retirement Account (IRA)
Tax Qualified (list type)
If IRA:
Regular -- Amount for previous year $
-- Amount for current year $
Rollover IRA
Trustee to Trustee transfer from:
<PAGE>
10. Certificate Provisions:
Settlement Age 65
Single Purchase Payment $10,000
*Payment Allocation
10 % Money Market 10 % Equity Index
10 % Intermediate High Grade 10 % Growth and Income
10 % Diversified Strategic 10 % Appreciation
Income 30 % Fixed Account
10 % Equity Income % Other
% Other
*Must be whole numbers, and, for non-quaified annuities,
must result in at least $500 allocated to any variable
subaccount or to the fixed account.
11. Remarks, Explanations and Special Instructions
(Including special mailing instructions)
6A 393776P-1
It Is Agreed That:
1. All statements and answers given above are true and complete
to the best of my/our knowledge.
2. Only an officer of IDS Life Insurance Company of New York can
modify any annuity certificate or waive any requirement in
this application.
3. If joint spousal owners are named, ownership will be in joint
tenancy with right of survivorship unless specified otherwise
in Item 11 above.
4. I/we hereby acknowledge receipt of current prospectuses for
the variable annuity and any funds involved.
5. I/we understand that earnings and values, when based on the
investment experience of a variable fund, portfolio, account
or subaccount, are not guaranteed and may both increase and
decrease.
Signatures
AnyCity, AnyState John Doe
Location Signature of Signature of
City/State Proposed Annuitant Certificate Owner
(if other than
proposed annuitant)
October 31, 1991 I.M. Agent
Date Signature of Signature of
Licensed Agent Joint Certificate
Owner (if any
<PAGE>
<PAGE>
PAGE 1
REVISED CHARTER OF IDS LIFE INSURANCE COMPANY OF NEW YORK
Revised As Of April, 1992
WE, the undersigned, all being natural persons of full age,
and at least two-thirds of us citizens of the United States, and at
least three (3) of us being residents of the State of New York, do
hereby declare our intention to form a stock corporation for the
purpose of doing the kinds of insurance business authorized by
Paragraphs "1", "2", and "3", respectively, of Section 1113 of the
Insurance Law of the State of New York, and for that purpose do
hereby adopt the following charter:
CHARTER
ARTICLE I
The name of this Corporation shall be:
IDS LIFE INSURANCE COMPANY OF NEW YORK
ARTICLE II
The principal office of this Corporation shall be located in
the County of Albany in the State of New York.
ARTICLE III
SECTION 1. The kind or kinds of insurance to be transacted by
the Corporation are those kinds specified in Paragraphs "1", "2",
and "3", Section 1113, of Article IV of the Insurance Law of the
State of New York, as follows:
1. Life insurance," meaning every insurance upon the lives
of human beings and every insurance appertaining thereto. The
business of life insurance shall be deemed to include the granting
of endowments benefits; additional benefits in the event of death
by accident or accidental means; additional benefits operating to
safeguard the contract from lapse, or to provide a special
surrender value, in the event of total and permanent disability of
the insured; and optional modes of settlement of proceeds. Amounts
paid to the Corporation for life insurance and proceeds applied
under optional modes of settlement or under dividend options may be
allocated by the Corporation to one or more separate accounts
pursuant to Section 4240.
2. "Annuities," meaning all agreements to make periodical
payments where the making or continuance of all or of some of a
series of such payments, or the amount of any such payment, is
dependent upon the continuance of human life, except payments made
under the authority of paragraph one. Amounts paid to the
Corporation to provide annuities and proceeds applied under
optional modes of settlement or under dividend options may be
allocated by the Corporation to one or more separate accounts
pursuant to Section 4240.
<PAGE>
PAGE 2
3. "Accident and health insurance," meaning (a) insurance
against death or personal injury by accident or by any specified
kind or kinds of accident and insurance against sickness, ailment
or bodily injury, including insurance providing disability benefits
pursuant to article nine of the workmen's compensation law, except
as specified in subparagraph (b) following; and (b) Non-cancelable
disability insurance, meaning insurance against disability
resulting from sickness, ailment or bodily injury (but not
including insurance solely against accidental injury) under any
contract which does not give the insurer the option to cancel or
otherwise terminate the contract at or after one year from its
effective date or renewal date.
SECTION 2. The Corporation may also engage in the
reinsurance of the kinds of insurance business it is authorized to
do.
SECTION 3. The foregoing enumeration of specific kinds
of insurance shall not be held to limit or restrict the powers of
the Corporation to carry on any other business to the extent
necessarily or properly incidental to such kinds of insurance.
SECTION 4. The Corporation shall have full power and
authority to cede and assume reinsurance of any risks subject to
the Insurance Law and the rules and regulations of the Insurance
Department of the State of New York.
SECTION 5. The Corporation shall have and may exercise
such other powers as are conferred upon it by law.
ARTICLE IV
The mode and manner in which the corporate powers of the
Corporation shall be exercised is through a Board of Directors and
through such Committees of the Board of Directors, officers and
agents as such Board and the By-Laws of the Corporation shall
empower.
ARTICLE V
SECTION 1. The number of the directors of the
Corporation shall be not less than thirteen (13) nor more than
twenty-three (23) and shall be determined by the provisions of the
By-Laws. In no case shall the number of directors be less than
thirteen (13). In no case shall a decrease in the number of
directors shorten the term of any incumbent director.
SECTION 2. The directors shall be elected at each annual
meeting of the stockholders of the Corporation, and the directors
so elected shall hold office for one year and until their
respective successors shall have been elected and shall have
qualified. The directors shall be chosen and elected by a
plurality of the whole number of shares voted.
SECTION 3. Any director may be removed with or without
cause by the majority vote of the stockholders present in person or
by proxy at any meeting of stockholders. Not less than one-third
of the directors may call a Special Meeting for the purpose of
removing any director for cause and at such Special Meeting so
called, such director may be removed by the affirmative vote of
two-thirds of the remaining directors.
<PAGE>
PAGE 3
SECTION 4. Whenever any vacancy in the Board of
Directors shall occur by death, resignation, removal or otherwise,
and whenever the number of directors is increased, such vacancy may
be filled and such additional directors may be elected, for the
remainder of the term in which such event shall happen, by a
majority vote of the directors then in office in such manner as may
be prescribed by the By-Laws.
SECTION 5. If the directors shall not be elected in any
year at the annual meeting of stockholders as hereinabove provided,
or if, because of a vacancy or vacancies on the Board of Directors,
the Number of the Board shall be less than thirteen (13), the
Corporation shall not for that reason be dissolved, but every
director shall continue to hold office and discharge his duties
until his successor shall have been elected.
SECTION 6. At all times a majority of the directors
shall be citizens and residents of the State of New York or of
adjoining states, not less than three (3) thereof shall be
residents of the State of New York, and each director shall be at
least twenty-one (21) years of age.
ARTICLE VI
INDEMNIFICATION OF CORPORATION PERSONNEL
To the extent permitted and in the manner prescribed by law,
the Corporation shall indemnify any person made, or threatened to
be made, a party to any action, suit or proceeding, civil or
criminal, by reason of the fact that he, his testator or intestate,
is or was Director or Officer of the Corporation or of any other
corporation of any type or kind, domestic or foreign, which he
served in any capacity at the request of the Corporation, against
judgements, fines, amounts paid in settlement and reasonable
expenses (which the Corporation may advance), including attorneys'
fees, actually and necessarily incurred as a result of such action,
suit or proceeding, or any appeal therein. The foregoing right of
indemnification shall not be exclusive of any other right to which
any such person may be entitled. Neither the adoption of this
resolution nor any modification or repeal hereof, or of any
provision of any applicable law shall, unless otherwise required by
law, enlarge or diminish any right of indemnification of a Director
or Officer as it existed at the time of accrual of the alleged
cause of action asserted in the threatened or pending action, suit
or proceeding in which the expenses were incurred or other amount
was paid.
INDEMNIFICATION OF OTHER PERSONNEL
The Board, in its discretion, may authorize the Corporation to
indemnify any person, other than a Director or Officer, for
expenses incurred or other amounts paid in any civil or criminal
action, suit or proceeding, to which such person was, or was
threatened to be, made a party by reason of the fact that he, his
testator or intestate, is or was an employee or agent of the
<PAGE>
PAGE 4
Corporation or of any other corporation of any type or kind,
domestic or foreign, which he served in any capacity at the request
of the Corporation, against judgements, fines, amounts paid in
settlement and reasonable expenses (which the Corporation may
advance), including attorney's fees, actually and necessarily
incurred as a result of such action, suit or proceeding, or any
appeal therein.
ARTICLE VII
Except as otherwise provided by law, the presence in person or
by proxy at any meeting of stockholders of the holders of a
majority of shares of the capital stock of the Corporation issued
and outstanding and entitled to vote thereat shall constitute a
quorum. If, however, such majority shall not be represented at any
meeting of the stockholders, the holders of a majority of the
shares present or represented and entitled to vote thereat shall
have power to adjourn the meeting from time to time without notice
until the requisite amount of shares entitled to vote at such
meeting shall be represented. At such adjourned meeting at which
the requisite number of shares entitled to vote thereat shall be
represented, any business may be transacted which might have been
transacted at the meeting as originally notified.
ARTICLE VIII
The names and post office residence addresses of the
directors, who shall serve until the first annual meeting of the
Corporation, are as follows,
POST OFFICE RESIDENCE ADDRESSES
GARY A. BELLER 114 E. 72nd St., New York, New York 10021
JOHN C. BOEDER 9 Ridge Court, Saratoga Springs, New York
12866
ROGER C. COREA 42 Harwood Lane, East Rochester, New York
14445
CHARLES A. CUCCINELLO 25 Dogwood Drive, Scarsdale, New York
10583
FRANCIS M. ELLIS 90 Greene St., New York, New York
10012
MILTON R. FENSTER 1000 Park Avenue, New York, New York
10028
DAVID R. HUBERS 72 E. Golden Lake Rd., Circle Pines,
Minnesota 55014
RICHARD W. KLING 3790 Country Rd. #44, Minnetrista,
Minnesota 55364
EDWARD LANDES 5780 Schafer Rd., Edina, Minnesota
55436
<PAGE>
PAGE 5
JAMES A. MITCHELL 2685 North Shore Drive, Wayzata,
Minnesota 55391
MICHAEL P. MONACO 1735 York Avenue, New York, New York
10128
STEPHEN P. NORMAN 6 Highland Park Place, Rye, New York
10580
GORDON H. RITZ 560 Indian Mound, Apt. 4A, Wayzata,
Minnesota 55391
MICHAEL R. WOODWARD 2707 Lockport Rd., Oakfield, New York
14125
ARTICLE IX
The duration of the corporate existence of this Corporation
shall be perpetual.
ARTICLE IX
The holders of stock of the Corporation shall not have any
pre-emptive, preferential or other right to subscribe for or
purchase or acquire any shares of any class of stock or any other
securities of the Corporation, whether now or hereafter authorized,
and whether or not convertible into, or evidencing or carrying the
right to purchase, shares of stock of any class or any other
securities now or hereafter authorized and whether the same shall
be issued for cash, services or property, or by way of dividend, or
otherwise, other than such right, if any, as the Board of Directors
in its discretion from time to time may determine; but all such
shares of stock or other securities may be issued and disposed of
by the Board of Directors, to the extent permitted by law, in such
manner to such person or persons, on such terms, for such
consideration and for such corporate purposes as the Board of
Directors may deem advisable.
ARTICLE XI
The amount of the authorized capital of this Corporation shall
be TWO MILLION ($2,000,000) DOLLARS, to consist of TWO HUNDRED
THOUSAND (200,000) shares of stock of the par value of TEN ($10.00)
DOLLARS per share.
ARTICLE XII
The Corporation may establish, maintain and operate offices
and agencies and conduct business outside of the State of New York
and in other states, countries, territories, dependencies,
protectorates and in the District of Columbia, in such form and
manner as the Board of Directors may determine.
<PAGE>
PAGE 6
ARTICLE XIII
The Board of Directors shall adopt By-Laws for its own
regulation and that of the conduct of the business of the
Corporation, which By-Laws shall nor be inconsistent with this
Charter or with the laws of the State of New York, and which By-
Laws may be modified, rescinded or amended from time to time by
majority vote of the Board of Directors at any special meeting
called for that purpose, or at any regular meeting.
<PAGE>
<PAGE>
PAGE 1
AMENDED BY-LAWS AS OF MAY 1992
OF
IDS LIFE INSURANCE COMPANY OF NEW YORK
ARTICLE I
LOCATION
Section 1. The principal office of the Corporation shall be
in the County of Albany and State of New York. The Corporation
may, in addition to the principal office, establish and maintain
such other office or offices, whether in the State of New York or
otherwise, as the Board of Directors may from time to time
designate or the business of the Corporation may require.
ARTICLE II
CORPORATE SEAL
Section 1. The Corporation shall have a seal. The corporate
seal shall have inscribed thereon the name of the Corporation. The
corporate seal shall be in seal form and have inscribed thereon
such additional words and symbols as the Board of Directors may
from time to time prescribe. The seal may be used by causing it or
a facsimile thereof to be impressed or affixed or otherwise
reproduced.
ARTICLE III
MEETINGS OF SHAREHOLDERS
Section 1. Time and Place. All meetings of the shareholders
for the election of directors and all meetings of shareholders for
that or any other purpose may be held at such place within or
without the State of New York, and at such time as may be
designated in the notice of the meeting.
Section 2. Annual Meetings. The annual meeting of
shareholders shall be held on the Thursday following the first
Tuesday on or after the nineteenth day of April in each year, if
not a legal holiday, and if a legal holiday, then on the next
succeeding business day, at 10:30 o'clock a.m. or at such other day
or hour as may from time to time be designated by the Board of
Directors.
Section 3. Special Meetings. Except as otherwise provided by
statute, special meetings of shareholders may be called for any
purpose or purposes at any time by the Chairman of the Board of
Directors, the President, the Board of Directors, or by the
President or Secretary upon the written request of one or more
shareholders holding a majority in interest of the stock of the
Corporation issued and outstanding and entitled to vote at such
meeting. Any such request shall state the purpose or purposes of
the proposed meeting.
Section 4. Notice of Meetings. Notice of the time and place
of holding each annual and special meeting of the shareholders
shall be in writing and signed by the President or a Vice President
or the Secretary or an Assistant Secretary and a copy thereof shall
be served, either personally or by mail, upon each shareholder
entitled to vote at such meeting, not less than ten or more than
fifty days before the meeting, and if mailed, it shall be directed<PAGE>
PAGE 2
to such shareholder at his address as it appears on the books of
the Corporation a written request that notices intended for him be
mailed to some other address, in which case it shall be mailed to
the address designated in such request.
The notice of every special meeting, besides stating the time
and place of such meeting, shall state the purpose or purposes
thereof, and no business other than that specified in such notice
or germane thereto shall be transacted at the meeting.
Section 5. Waiver of Notice. Notice of meeting need not be
given (1) to any shareholder who submits a signed waiver of notice,
in person or by proxy, whether before or after the meeting, or (2)
to any shareholder who is in attendance at any meeting, in person
or by proxy, without protesting prior to the conclusion of the
meeting the lack of notice of such meeting.
Section 6. Quorum. At every meeting of the shareholders of
the Corporation, except as otherwise provided by law, the holders
of a majority of the issued and outstanding shares of capital stock
of the Corporation, present in person or by proxy and entitled to
vote thereat, shall constitute a quorum for the transaction of
business. In the absence of a quorum a majority in interest of the
shareholders so present or represented and entitled to vote thereat
may adjourn the meeting from time to time and place to place until
a quorum is obtained, and the meeting may be held as adjourned
without further notice. At any such adjourned meeting at which a
quorum is present any business maybe transacted which might have
been transacted at the meeting as originally called. The
shareholders present at a duly called or held meeting at which a
quorum is present may continue to transact business until a final
adjournment, notwithstanding the withdrawal of enough shareholders
to leave less than a quorum.
Section 7. Voting. At all meetings of shareholders every
shareholder entitled to vote thereat shall be entitled to one vote,
in person or by proxy, for each share of stock outstanding in his
name on the books of the Corporation on the date for the
determination of shareholders entitled to vote at such meetings.
Every proxy must be executed in writing by the shareholder or by
his duly authorized attorney and must be delivered to the secretary
of the meeting. No proxy shall be valid after the expiration of
eleven months from the date of its execution unless the shareholder
executing it shall have specified therein a longer duration. At
all meetings of the shareholders, a quorum being present, all
matters except as otherwise provided by law, or the Charter of the
Corporation, or these By-Laws shall be decided by a majority in
interest of the shareholders of the Corporation present in person
or by proxy and entitled to vote. All elections of directors may,
but need not be, held by ballot.
Section 8. Organization. Meetings of the shareholders shall
be presided over by the Chairman of the Board of Directors or, if
he is not present, by the President or, if none of the foregoing is
present, by a chairman to be chosen by a majority of the
shareholders entitled to vote who are present in person or by proxy
at the meeting. The Secretary of the Corporation, or in his
absence an Assistant Secretary, shall act as secretary of every
meeting, but if neither the Secretary nor an Assistant Secretary is
present, the meeting shall choose any person present to act as
secretary of the meeting.
<PAGE>
PAGE 3
Section 9. Consents. Whenever by any provision of law or of
the Charter of this Corporation, the vote of shareholders at a
meeting thereof is required or permitted to be taken in connection
with any corporate action, the meeting and vote of shareholders may
be dispensed with, if all the shareholders who would have been
entitled to vote upon the action if such meeting were held, shall
consent in writing to such action being taken. However, this
section shall not be construed to alter or modify any provision of
law or of the Charter under which the written consent of the
holders of less than all outstanding shares is sufficient for
corporate action.
ARTICLE IV
BOARD OF DIRECTORS
Section 1. Election and Qualification of Directors.
Directors shall be elected at the annual meeting of shareholders by
a plurality of the votes cast and shall hold office for one year
until their respective successors shall have been elected and shall
have qualified. All directors shall be of full age and at least a
majority shall be citizens and residents of the State of New York
or of adjoining states and not less than three (3) shall be
residents of the State of New York. Directors need not be
shareholders.
Section 2. Number of Directors. The number of directors
shall not be less than thirteen (13) nor more than twenty-three
(23) subject to change by action of the shareholders or by
resolution of the Board of Directors, the number of directors of
the Corporation shall be fourteen (14). Any change in the number
of directors made by resolution of the Board of Directors shall
require the affirmative cote of a majority of all directors then in
office but no decrease in the number of directors so made shall
shorten the term of any incumbent directors.
Section 3. Vacancies. A vacancy or vacancies in the Board
resulting from death, resignation or removal of any director or
from the increase in the number of directors, or for any other
cause, may be filled for the remainder of the term by majority vote
of the remaining directors at any regular meeting of the Board or
at any special meeting called for that purpose. A director so
elected shall not take office or exercise the duties thereof until
ten (10) days after written notice of his election shall have been
filed in the office of the Superintendent of Insurance of the State
of New York.
Section 4. Duties and Powers. The Board of Directors shall
have control and management of the affairs and property of the
Corporation and may adopt such rules and regulations for the
conduct of their meetings and the management of the Corporation as
they deem proper and not inconsistent with law or with the Charter
of the Corporation or with these By-Laws.
Section 5. Meetings. Meetings of the Board of Directors
shall be held at such place within or without the State of New York
as may from time to time be fixed by resolution of the Board of
Directors, or as may be specified in the notice of the meeting.
Regular meetings of the Board of Directors shall be held at such <PAGE>
PAGE 4
times as may from time to time be fixed by resolution of the Board
of Directors, and special meetings may be held at any time upon the
call of the Chairman of the Board of Directors, the President or
any Vice President or the Secretary or an Assistant Secretary or
any two directors by oral, telegraphic or written notice duly
served on or sent or mailed to each director not less than two days
before such meeting. A meeting of the Board of Directors may be
held without notice immediately after the annual meeting of
shareholders. Notice need not be given of regular meetings of the
Board of Directors. Meetings may be held at any time without
notice if all the directors are present, or if at any time before
or after the meeting those not present waive notice of the meeting
in writing.
Section 6. Quorum. A majority of the Board of Directors then
in office at a meeting duly assembled shall be necessary to
constitute a quorum for the transaction of business. Except as
otherwise provided by law or by the Charter of the Corporation, the
act of a majority of directors present at such meeting shall be the
act of the Board.
Section 7. Resignations. Any director of the Corporation may
resign at any time by giving written notice to the Board or to the
President or to the Secretary of the Corporation. Such resignation
shall take effect at the time specified therein; and unless
otherwise specified therein the acceptance of such resignation
shall not be necessary to make it effective.
Section 8. Removal. Any one or more of the directors may be
removed either with or without cause at any time by a vote of a
majority of the shares issued and outstanding and entitled to vote.
Not less than one-third of the directors may call a special meeting
for the purpose of removing for cause any other director and at
such special meeting so called, such director may be removed by the
affirmative vote of a majority of the remaining directors present
at such meeting. Immediately following each vote by which a
director is removed the Board of Directors shall declare the office
of the removed director to be vacant.
Section 9. Compensation of Directors. Directors may, by
resolution of the Board of Directors, be allowed a fixed sum for
serving as directors and expenses for attendance at regular or
special meetings of the Board of Directors; provided that nothing
herein contained shall be construed to preclude any director from
servicing the Corporation in any other capacity and receiving
compensation therefor. Members of special or standing committees,
and others who attend pursuant to direction, may, by vote of the
Board of Directors, be allowed a fixed sum and expenses for
attending committee meetings.
ARTICLE V
COMMITTEES
Section 1. Executive Committee. The Board of Directors may,
by resolution adopted by a majority of the entire Board, designate
an Executive Committee from among its members consisting of five
(5) or more directors as it may, in its discretion, think proper
and shall so designate by resolution.
<PAGE>
PAGE 5
The Executive Committee shall have and may exercise, when the
Board is not in session, so far as may be permitted by law, all of
the rights and powers of the Board of Directors in the management
of the business and affairs of the Corporation, except to the
extent such powers of the Board are by resolution of the Board or
by these by-laws are reserved to the Board or to other committees
of the Board, and shall have power to authorize the seal of the
Corporation to be affixed to all papers which may require it; but
the Executive Committee shall not have power to fill vacancies in
any committee of the Board, or to make or amend the By-Laws of the
Corporation.
The Board shall have the power at any time to fill vacancies
in, to change the membership of, to change the number of members
of, to designate one or more alternate members of, or to dissolve,
the Executive Committee. The Executive Committee may make rules
for the conduct of its business and may appoint such committees and
assistants as it shall from time to time deem necessary.
The Committee shall keep a record of its proceedings and shall
adopt its own rules of procedure except that a quorum shall consist
of at least three (3) members, not more than two (2) of whom may be
officers or salaries employees of the Corporation. The Committee
shall submit copies of its minutes to the Board of Directors.
Section 2. Investment Committee. The investments of the
Corporation shall be managed and controlled by an Investment
Committee. The Investment Committee shall consist of at least five
(5) members who shall be appointed by the Board of Directors from
its own membership at the annual meeting of the Board of Directors
to serve until the next succeeding annual meeting and until their
successors on the Committee have been appointed. The Board shall
have the power at any time to fill vacancies in, to change the
membership of, to change the number of members of, to designate one
or more alternative members of, or to dissolve, the Investment
Committee.
The Investment Committee shall have and may exercise, when the
Board is not in session, all the rights and powers of the Board of
Directors to make, supervise, and control the investments of the
Corporation, inclusive of all real and personal property acquired
by the virtue of or incidental to any investment, to sell, assign,
exchange, lease or otherwise dispose of such investments and
property, and to do and perform all things deemed necessary and
proper in relation to such investments and property.
The Committee shall keep a record of its proceedings and shall
adopt its own rules of procedure except that a quorum shall consist
of at least three (3) members not more than two (2) of whom may be
officers or salaries employees of the Corporation. The Committee
shall submit copies of its minutes to the Board of Directors.
Section 3. Other Committees. The Board of Directors may from
time to time by resolution create such other committee or
committees of Directors, officers, employees or other persons
designated by the Board, to advise the Board, the Executive
Committee and the officers and employees of the Corporation in all
such matters as the Board shall deem advisable, and with such
functions and duties as the Board shall by resolution prescribe. A
majority of all members of any such committee may determine its
action and fix the time and place of its meetings, unless the Board
of Directors shall otherwise provide. The Board of Directors shall
have power to change the members of any such committee at any time,
and to discharge any such committee, either with or without cause
at any time.<PAGE>
PAGE 6
ARTICLE VI
OFFICERS
Section 1. Officers. The Board of Directors shall,
immediately after the organization of the Corporation, and
thereafter at their first meeting following the annual election of
directors, shall elect from their number a Chairman of the Board,
and shall also elect a President, Secretary and a Treasurer, who
need not be members of the Board of Directors. The Board may, at
any time, also elect one or more Vice Presidents and such Assistant
Treasurers or Assistant Secretaries, or other officers, as it may
deem proper. More than one office may be held by the same person,
except that the offices of President and Secretary may not be held
by the same person.
Section 2. Term. Each officer of the Corporation elected by
the Board of Directors shall hold office until his successor is
chosen and qualified, or until he shall have died or resigned or
shall have been removed as hereinafter provided. A vacancy in any
office arising from any cause may be filled by the Board of
Directors.
Section 3. Duties of the Chairman of the Board. The Chairman
of the Board shall preside at all meetings of the shareholders and
of the Board of Directors. He shall have such other powers and
perform such other duties as may be assigned to him by the Board of
Directors.
Section 4. Duties of the President. The President shall be
the Chief Executive Officer of the Corporation. He shall have
general and active supervision and direction over the business
offices of the Corporation, subject to the control of the Board of
Directors whose policies he shall execute. He shall see that all
orders and resolutions of the Board of Directors are carried into
effect and shall, in the absence of the Chairman of the Board,
preside at all meetings of shareholders and of the Board of
Directors. Except when inconsistent with the Corporation's
Charter, these By-Laws, or with the orders and resolutions of the
Board of Directors, he shall have the power to employ, fix the
duties, and discharge such employees as he may deem necessary and
proper. The President shall make such reports to the Board of
Directors as it may require.
Section 5. Duties of Vice President. Each Vice President
shall undertake such of the duties of the President, or such other
duties, as may be delegated to him from time to time by the
President or by the Board of Directors.
Section 6. Duties of Secretary. The Secretary shall attend
all meetings of the shareholders, of the Board of Directors, and of
the Executive Committee of the Board, and record their proceedings
in a book kept for that purpose. He shall perform other duties
incident to his office and such other duties as may be delegated to
him by the Board of Directors or the President. He shall see that
proper notice is given to all meetings of the shareholders of the
Corporation and of the Board of Directors, and he shall have charge
of the corporate seal, the minutes books, and such other Corporate
records as are not otherwise provided for. He shall affix the seal
to any instrument requiring the same. Any Assistant Secretary may
perform the duties of the Secretary in his absence and such of the
duties of the Secretary as may be delegated to him by that officer
or by the Board of Directors or the President.<PAGE>
PAGE 7
Section 7. Duties of Treasurer. The Treasurer shall be
charged with supervision of the keeping of the funds and books of
account of the Corporation and with their safekeeping shall carry
out such duties as are incident to his office and shall further
perform such other duties as may be delegated to him by the Board
of Directors or by the President. Any Assistant Treasurer may
perform the duties of the Treasurer in his absence, and such of the
duties of the Treasurer as may be delegated to him by that officer
or by the Board of Directors or the President.
Section 8. Removal. Any officer may be removed either with
or without cause at any time by a vote of a majority of the
Directors.
ARTICLE VII
SHARE CERTIFICATES
Section 1. Form of Certificates. The shares of the
Corporation shall be represented by certificates, in such form as
the Board of Directors may from time to time prescribe, signed by
the Chairman of the Board of Directors, the President or a Vice
President and the Secretary or an Assistant Secretary or the
Treasurer or an Assistant Treasurer, and sealed with the seal of
the Corporation. Such seal may be a facsimile, engraved or
printed. Where any such certificate is signed by a transfer agent
or transfer clerk and by a registrar, the signatures of any such
Chairman of the Board of Directors, President, Vice President,
Secretary, Assistant Secretary, Treasurer, or Assistant Treasurer
upon such certificates may be facsimiles, engraved or printed. In
case any such officer who has signed or whose facsimile signature
has been placed upon such certificate shall have ceased to be such
before such certificate is issued, it may be issued by the
Corporation with the same effect as if such officer had not ceased
to be such at the date of its issue.
Every certificate representing shares issued by the
Corporation shall plainly state upon the face thereof the number,
kind and class of shares which it represents.
Section 2. Transfers. Transfers of shares shall be made only
upon the books of the Corporation by the registered holders in
person or by power of attorney duly executed and acknowledged and
filed with the Secretary of the Corporation, or with a duly
appointed Transfer Agent acting for and on behalf of the Secretary,
and upon the surrender of the certificate or certificates for such
shares.
Section 3. Lost Certificates. If any certificate of shares
shall be lost, the holder thereof shall forthwith notify the
Corporation of the facts and the Board of Directors or the
Executive Committee may then authorize a new certificate to be
issued to him. The Board of Directors or the Executive Committee
may in its discretion require, as a condition precedent, deposit of
a bond in such amount and in such form and with surety or sureties
as the Board or the said Committee may direct.
Section 4. Closing Share Books. The Board of Directors or
the Executive Committee may by resolution prescribe a period not
less than ten (10) nor more than fifty (50) days prior to any
meeting of shareholders during which no transfer of shares on the
books of the Corporation may be made; or in lieu of prohibiting the
transfer of <PAGE>
PAGE 8
shares may fix a day and hour not less than ten (10) nor more than
fifty (50) days prior to the folding of any meeting of shareholders
as the time as of which shareholders entitled to notice of and to
vote at such meeting shall be determined or for the taking of a
dividend list. The share books may also be closed for the payment
of dividends for such like period, if any, as may be prescribed by
resolution of the Board of Directors or the Executive Committee.
Section 5. Transfer Agent and Registrar. The Board of
Directors may appoint one or more transfer clerks or one or more
transfer agents and one or more registrars, and may require all
certificates for shares to bear the signature or signatures of any
of them.
ARTICLE VIII
INDEMNIFICATION OF CORPORATE PERSONNEL
To the extent permitted and in the manner prescribed by law,
the Corporation shall indemnify any person made, or threatened to
be made, a party to any action, suit or proceeding, civil or
criminal, by reason of the fact that he, his testator or intestate,
is or was Director or Officer of the Corporation or of any other
corporation of any type or kind, domestic or foreign, which he
served in any capacity at the request of the Corporation, against
judgements, fines, amounts paid in settlement and reasonable
expenses (which the Corporation may advance), including attorneys'
fees, actually and necessarily incurred as a result of such action,
suit or proceeding, or any appeal therein.
The foregoing right of indemnification shall not be exclusive of
any other right to which any such person may be entitled. Neither
the adoption of this provision nor any modification or repeal
hereof, or of any provision of any applicable law shall, unless
otherwise required by law, enlarge or diminish any right of
indemnification of a Director or Officer as it existed at the time
of accrual of the alleged cause of action asserted in the
threatened or pending action, suit or proceeding in which the
expenses were incurred or other amount was paid.
INDEMNIFICATION OF OTHER PERSONNEL
The Board, in its discretion, may authorize the Corporation to
indemnify any person, other than a Director or Officer, for
expenses incurred or other amounts paid in any civil or criminal
action, suit or proceeding, to which such person was, or was
threatened to be, made a party by reason of the fact that he, is
testator or intestate, is or was an employee or agent of the
Corporation or of any other corporation of any type or kind,
domestic or foreign, which he served in any capacity at the request
of the Corporation, against judgements, fines, amounts paid in
settlement and reasonable expenses (which the Corporation may
advance), as a result of such action, suit or proceeding, or any
appeal therein.
<PAGE>
PAGE 9
ARTICLE IX
CONFLICT OF INTERESTS
No director or officer, of the Corporation shall receive, in
addition to his fixed salary of compensation, any money or valuable
things, either directly or indirectly, or through any substantial
interest in any other corporation or business unit, for
negotiating, procuring, recommending or aiding in any purchase or
sale of property, or loan, made by the Corporation or any affiliate
or subsidiary thereof; nor shall he be pecuniarily interested,
either as principal, co-principal, agent or beneficiary, either
directly or indirectly, or through any substantial interest in any
other corporation or business unit, in any such purchase, sale or
loan.
ARTICLE X
AMENDMENTS
Section 1. Power to Amend. These By-Laws may be altered,
repealed, or amended in whole or in part by the Board of Directors
at any regular meeting of the Board of Directors, or at a special
meeting called for that purpose, provided that notice of the
proposed change is incorporated in the notice of such special
meeting.
Section 2. Notice to Shareholders. If any By-Law regulating
an impending election of directors is adopted, amended or repealed
by the Board of Directors, there shall be set forth in the notice
of the next meeting of shareholders for the election of directors
the By-Law so adopted, amended or repealed, together with a concise
statement of the changes made.
<PAGE>
<PAGE>
PAGE 1
Consent of Independent Auditors
We consent to the reference to our firm under the caption
"Independent Auditors" and to the use of our reports dated
February 3, 1994 on the financial statements and financial
statement schedules of IDS Life Insurance Company of New York (a
wholly-owned subsidiary of IDS Life Insurance Company) and our
report dated March 18, 1994 on the financial statements of IDS Life
of New York Account SBS for Variable Annuities to be offered by IDS
Life Insurance Company of New York, in Post-Effective Amendment
No. 4 to the Registration Statement (Form N-4 No. 33-45776) being
filed under the Securities Act of 1933 and the Investment Company
Act of 1940.
Ernst & Young
Minneapolis, Minnesota
April 27, 1994
<PAGE>
<PAGE>
PAGE 1
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the financial statements of IDS Life Insurance
Company of New York (a wholly-owned subsidiary of IDS Life
Insurance Company) as of December 31, 1993 and 1992, and for each
of the three years in the period ended December 31, 1993, and have
issued our report thereon dated February 3, 1994 (included
elsewhere in this Registration Statement).
Our audits also included the financial statement schedules I, V,
VI, VIII and IX included elsewhere in this Registration Statement.
These schedules are the responsibility of the Company's management.
Our responsibility is to express an opinion based on our audits.
In our opinion, the financial statement schedules referred to
above, when considered in relation to the basic financial
statements taken as a whole, present fairly, in all material
respects, the information set forth therein.
Ernst & Young
Minneapolis, Minnesota
February 3, 1994
<PAGE>
PAGE 2
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE I - SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES ($ thousands)
AS OF DECEMBER 31, 1993
Column A Column B Column C Column D
Amount at which
Type of Investment Cost Value shown in the
balance sheet
<S> <C> <C> <C>
Fixed maturities:
Bonds:
United States Government and
government agencies and
authorities (a) $ 199,783 $ 204,423 $ 199,783
States, municipalities and
political subdivisions 105 120 105
All other corporate bonds 971,135 1,036,050 971,135
Total fixed maturities 1,171,023 $ 1,240,593 1,171,023
Mortgage loans on real estate 123,337 XXXXXXXXXX 123,337
Policy loans 12,952 XXXXXXXXXX 12,952
Other investments 2,239 2,239
Total investments $ 1,309,551 XXXXXXXXXX $ 1,309,551
(a) - Includes mortgage-backed securities with a cost and market value of $199,783 and $204,423,
/TABLE
<PAGE>
PAGE 3
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE V - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1991
Column A Column B Column C Column D Column E Column F
Segment Deferred Future Unearned Other policy Premium
policy policy premiums claims and revenue
acquisition benefits, benefits
cost losses, payable
claims and
loss
expenses
<S> <C> <C> <C> <C> <C>
Annuities $ 36,975 $ 826,045 $ - $ 437 $ -
Life, DI and
Long-term Care
Insurance 29,320 146,471 - 1,036 5,289
Total $ 66,295 $ 972,516 $ - $ 1,473 $5,289
</TABLE>
<TABLE>
<CAPTION>
Column A Column G Column H Column I Column J Column K
Segment Net Benefits, Amortization Other Premiums
investment claims, of deferred operating written
income losses and policy expenses
settlement acquisition
expenses costs
<S> <C> <C> <C> <C> <C>
Annuities $ 77,725 $ 109 $ 3,934 $ 2,602 N/A
Life, DI and
Long-term Care
Insurance 16,905 6,814 2,985 2,317 N/A
Total $ 94,630 $ 6,923 $ 6,919 $ 4,919 N/A
</TABLE>
<PAGE>
PAGE 4
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE V - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1992
Column A Column B Column C Column D Column E
Column F
Segment Deferred Future Unearned Other policy
Premium
policy policy premiums claims and
revenue
acquisition benefits, benefits
cost losses, payable
claims and
loss
expenses
<S> <C> <C> <C> <C>
<C>
Annuities $ 45,708 $ 966,645 $ - $ 1,130 $
- -
Life, DI and
Long-term Care
Insurance 31,561 155,270 - 935
6,282
Total $ 77,269 $1,121,915 $ - $ 2,065
$6,282
</TABLE>
<TABLE>
<CAPTION>
Column A Column G Column H Column I Column J
Column K
Segment Net Benefits, Amortization Other
Premiums
investment claims, of deferred operating
written
income losses and policy expenses
settlement acquisition
expenses costs
<S> <C> <C> <C> <C>
<C>
Annuities $ 85,375 $ 84 $ 4,551 $ 1,802
N/A
Life, DI and
Long-term Care
Insurance 16,696 6,899 3,586 4,601
N/A
Total $ 102,071 $ 6,983 $ 8,137 $ 6,403
N/A
</TABLE>
<PAGE>
PAGE 5
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE V - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1993
Column A Column B Column C Column D Column E Column F
Segment Deferred Future Unearned Other policy Premium
policy policy premiums claims and revenue
acquisition benefits, benefits
cost losses, payable
claims and
loss
expenses
<S> <C> <C> <C> <C> <C>
Annuities $ 53,300 $ 1,059 $ - $ 1,707 $ -
Life, DI and
Long-term Care
Insurance 34,591 161 - 640 7,110
Total $ 87,891 $ 1,220 $ - $ 2,347 $7,110
</TABLE>
<TABLE>
<CAPTION>
Column A Column G Column H Column I Column J Column K
Segment Net Benefits, Amortization Other Premiums
investment claims, of deferred operating written
income losses and policy expenses
settlement acquisition
expenses costs
<S> <C> <C> <C> <C> <C>
Annuities $ 93,943 $ 103 $ 7,707 $ 4,459 N/A
Life, DI and
Long-term Care
Insurance 16,204 6,733 2,727 3,193 N/A
Total $ 110,147 $ 6,836 $ 10,434 $ 7,652 N/A
</TABLE>
<PAGE>
PAGE 6
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE VI - REINSURANCE ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
Column A Column B Column C Column D Column E Column F
Gross amount Ceded to other Assumed from Net % of amount
companies other companies Amount assumed to net
<S> <C> <C> <C> <C> <C>
For the year ended
December 31, 1993
Life insurance
in force $ 2,933,830 $ 172,973 $ 512,555 $ 3,273,412 15.66%
Premiums:
Life insurance
& annuities $ 2,250 $ 187 $ -- $ 2,063 0.00%
DI &
long-term care
insurance 5,140 93 -- 5,047 0.00%
Total premiums $ 7,390 $ 280 $ 0 $ 7,110 0.00%
For the year ended
December 31, 1992
Life insurance
in force $ 2,192,426 $ 179,976 $ 592,792 $ 2,605,242 22.75%
Premiums:
Life insurance
& annuities $ 2,251 $ 208 $ -- $ 2,043 0.00%
DI &
long-term care
insurance 4,386 147 -- 4,239 0.00%
Total premiums $ 6,637 $ 355 $ 0 $ 6,282 0.00%
For the year ended
December 31, 1991
Life insurance
in force $ 1,961,086 $ 183,198 $ 704,500 $ 2,482,388 28.38%
Premiums:
Life insurance
& annuities $ 2,230 $ 320 $ -- $ 1,910 0.00%
DI &
long-term care
insurance 3,491 112 -- 3,379 0.00%
Total premiums $ 5,721 $ 432 $ 0 $ 5,289 0.00%
</TABLE>
<PAGE>
PAGE 7
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE VIII - VALUATION AND QUALIFYING ACCOUNTS ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
Column A Column B Column C Column D Column E
Additions
--------------
Balance at Charged to
Description Beginning Charged to Other Accounts- Deductions- Balance at End
of Period Costs & Expenses Describe Describe of Period
<S> <C> <C> <C> <C> <C>
For the year ended
December 31, 1993
- ------------------------------
Reserve for
Mortgage Loans $500 ($55) $0 $0 $445
Reserve for
Fixed Maturities $1,159 $493 $0 $0 $1,652
For the year ended
December 31, 1992
- ------------------------------
Reserve for
Mortgage Loans $200 $300 $0 $0 $500
Reserve for
Fixed Maturities $3,737 ($2,578) $0 $0 $1,159
For the year ended
December 31, 1991
- ------------------------------
Reserve for
Mortgage Loans $0 $200 $0 $0 $200
Reserve for
Fixed Maturities $1,033 $2,704 $0 $0 $3,737
</TABLE>
<PAGE>
PAGE 8
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE IX - SHORT-TERM BORROWINGS ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
Column A Column B Column C Column D Column E Column F
Maximum Average Weighted
Weighted amount amount average
Category of aggregate Balance average outstanding outstanding interest rate
short-term borrowing at end interest during the during the during the
of period rate period period period
<S> <C> <C> <C> <C> <C>
1993
Line of Credit $1,519 N/A $10,495 $ 638 3.92%
1992
Line of Credit $ 0 N/A $10,685 $ 434 6.05%
1991
Line of Credit $ 0 N/A $ 5,110 $ 506 8.39%
</TABLE>
<PAGE>
<PAGE>
PAGE 1
Performance Calculations
NON-MONEY MARKET SUBACCOUNTS
TOTAL RETURN
The total return is the percentage change between the initial
investment at the beginning of the period and the total value of
the investment at the end of the period.
Total Return = Ending Total Value - Initial Investment
Initial Investment
The ending total value includes income and capital gains
distributions treated as reinvested. It also reflects deductions
for the contract administrative charge, variable account
administrative charge and the mortality and expense risk charge.
AVERAGE ANNUAL TOTAL RETURN
The average annual total return of a subaccount reflects the
average annual compounded rate of return of a hypothetical
investment over a period of one, five and ten years (or, if less,
up to the life of the subaccount), calculated according to the
following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1000.
T = average annual total return.
n = number of years.
ERV = ending redeemable value of a hypothetical
$1,000 payment made at the beginning of
the one, five or ten year periods (or
fractional portion thereof).
The average annual total return without surrender charge reflects
the deduction of the contract administrative charge, variable
account administrative charge and mortality and expense risk
charge.
The average annual total return with surrender charge reflects the
above deductions and assumes the contract owner surrenders the
entire contract at the end of the one, five and ten year periods.
<PAGE>
<PAGE>
PAGE 1
IDS LIFE OF NEW YORK INSURANCE COMPANY
POWER OF ATTORNEY
City of Minneapolis
State of Minnesota
Each of the undersigned, as officers and/or directors of the
below listed unit investment trusts that previously have filed
registration statements and amendments thereto pursuant to the
requirements of the Securities Act of 1933 and the Investment
Company Act of 1940 with the Securities and Exchange Commission:
<TABLE><CAPTION>
1933 Act 1940 Act
Reg. Number Reg. Number
<S> <C> <C>
IDS Life of New York 4, 5, 6, 9, 10 and 11
IDS Life of New York Flexible Annuity 33-4174 811-3500
IDS Life of New York 4, 5, 6, 9, 10 and 11
IDS Life of New York Variable Retirement
and Combination Retirement Annuity 2-78194 811-3500
IDS Life of New York Account 8
Flexible Premium Variable Life Insurance Policy 33-15290 811-5213
IDS Life of New York Account SBS
IDS Life Symphony Annuity 33-45776 811-6560
IDS Life of New York Account 7
Single Premium Variable Life Insurance Policy 33-10334 811-4913
</TABLE>
hereby constitutes and appoints William A. Stoltzmann, Mary Ellyn
Minenko and Colleen Curran or either one of them, as her or his
attorney-in-fact and agent, to sign for her or him in her or his
name, place and stead any and all filings, applications (including
applications for exemptive relief), periodic reports, registration
statements (with all exhibits and other documents required or
desirable in connection therewith) other documents, and amendments
thereto and to file such filings, applications, periodic reports,
registration statements other documents, and amendments thereto
with the Securities and Exchange Commission, and any necessary
states, and grants to any or all of them the full power and
authority to do and perform each and every act required or
necessary in connection therewith.
Dated the 18th day of April, 1994.
/s/ Michael P. Monaco
Michael P. Monaco
/s/ John C. Boeder /s/ Stephen P. Norman
John C. Boeder Stephen P. Norman
/s/ Roger C. Corea /s/ Louise M. Parent
Roger C. Corea Louise M. Parent<PAGE>
PAGE 2
/s/ Charles A. Cuccinello /s/ Carl Platou
Charles A. Cuccinello Carl Platou
/s/ Milton R. Fenster /s/ Gordon H. Ritz
Milton R. Fenster Gordon H. Ritz
/s/ F. Dale Simmons
F. Dale Simmons
/s/ Richard W. Kling /s/ Michael R. Woodward
Richard W. Kling Michael R. Woodward
/s/ Edward Landes
Edward Landes
<PAGE>
