Registration No.33-47949
Registration No. 811-1705
- -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------------------
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 6 [X]
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [ ]
Amendment No. 55 [X]
(Check appropriate box or boxes)
-------------------------------
SEPARATE ACCOUNT A
of
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Exact Name of Registrant)
-------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Name of Depositor)
787 Seventh Avenue, New York, New York 10019
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code: (212) 714-4595
-------------------------
ANTHONY A. DREYSPOOL
VICE PRESIDENT AND SENIOR COUNSEL
The Equitable Life Assurance Society of the United States
787 Seventh Avenue, New York, New York 10019
(Names and Addresses of Agents for Service)
-------------------------------------------
Please send copies of all communications
to:
PETER E. PANARITES
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W., Suite 825
Washington, D.C. 20036
----------------------------------------
<PAGE>
Approximate Date of Proposed Public Offering: Continuous
It is proposed that this filing will become effective (check
appropriate box):
[ ] Immediately upon filing pursuant to paragraph (b) of Rule 485.
[X] On May 1, 1996 pursuant to paragraph (b) of Rule 485.
[ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485.
[ ] On (date) pursuant to paragraph (a)(1) of Rule 485.
[ ] 75 days after filing pursuant to paragraph (a)(2) of Rule 485.
[ ] On (date) pursuant to paragraph (a)(3) of Rule 485.
If appropriate, check the following box:
[ ] This post-effective amendment designates a new effective date for
previously filed post-effective amendment.
---------------------------------
The Registrant has registered an indefinite number of securities
under the Securities Act of 1933 pursuant to Rule 24f-2.
The Rule 24f-2 Notice of the Registrant for fiscal year 1994 was
filed on February 27, 1996.
<PAGE>
CROSS REFERENCE SHEET
SHOWING LOCATION OF INFORMATION IN PROSPECTUS
---------------------------------------------
Form N-4 Item Prospectus Caption
------------- ------------------
1. Cover Page Cover Page
2. Definitions General Terms
3. Synopsis Part 1: Summary
4. Condensed Financial Part 5: Accumulation Unit
Information Values
5. General Description of Part 1: Summary, Part 2:
Registrant, Depositor and Equitable's Separate Account
Portfolio Companies and its Investment Funds
6. Deductions and Expenses Part 6: Deductions and
Charges
7. General Description of Part 5: Provisions of the
Variable Annuity Contracts Momentum Contract and Services
We Provide
8. Annuity Period Part 5: Provisions of the
Momentum Contract and Services
We Provide
9. Death Benefit Part 5: Provisions of the
Momentum Contract and Services
We Provide - Death Benefit
10. Purchases and Contract Value Part 3: Investment
Performance, Part 5:
Provisions of the Momentum
Contract and Services We
Provide
11. Redemptions Part 5: Provisions of the
Momentum Contract and Services
We Provide, Part 6:
Deductions and Charges -
Contingent Withdrawal Charge
12. Taxes Part 8: Federal Tax and ERISA
Matters
13. Legal Proceedings Not Applicable
14. Table of Contents of the Statement of Additional
Statement of Additional Information Table of
Information Contents
<PAGE>
CROSS REFERENCE SHEET
SHOWING LOCATION OF INFORMATION
IN STATEMENT OF ADDITIONAL INFORMATION
--------------------------------------
Statement of Additional
Form N-4 Item Information Caption
------------- -------------------
15. Cover Page Cover Page
16. Table of Contents Table of Contents
17. General Information Part 3: The
and History Reorganization,
Prospectus -
Part 1: Summary
18. Services Not Applicable
19. Purchases of Part 9: Distribution
Securities Being
Offered
20. Underwriters Part 9: Distribution
21. Calculation of Part 4: Accumulation
Performance Data Unit Values, Part 5:
Annuity Unit Values, Part
10: Money Market Fund Yield
Information, Prospectus -
Part 3: Investment
Performance
22. Annuity Payments Part 5: Annuity Unit
Values
23. Financial Statements Part 12: Financial
Statements
<PAGE>
NOTE
The supplement dated May 1, 1996 to the Momentum prospectus dated May 1,
1995 contained in this Post-Effective Amendment No.6 and Amendment No.55
(together, the "Amendment") to Form N-4 Registration Statement Nos. 33-47949
and 811-1705 ("Registration Statement") under the Securities Act of 1933 and
Investment Company Act of 1940, respectively, is being filed by The Equitable
Life Assurance Society of the United States ("Equitable Life") for the
purpose of updating the financial information and other disclosures contained
in Equitable Life's Momentum prospectus dated May 1, 1995. The aforesaid
supplement will be used for continuing contributions under Equitable Life's
Momentum annuity contracts outstanding as of April 30, 1996. The Amendment
shall not otherwise be deemed to amend, delete or supersede the Momentum
prospectus dated May 1, 1995, previously filed as part of the Registration
Statement. Participants under the Momentum contracts outstanding on April 30,
1996 who request a statement of additional information will be provided with
the combined EQUI-VEST and Momentum statement of additional information dated
May 1, 1996, as contained in this Amendment to the Registration Statement.
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SUPPLEMENT DATED MAY 1, 1996
TO
MOMENTUM(Registered Trademark) PROSPECTUS
Dated May 1, 1995
This Supplement modifies certain information in the prospectus dated May 1,
1995 (the "Prospectus") for MOMENTUM deferred group variable annuity
contracts offered by Equitable Life. This Supplement is designed for
Employers and Participants under MOMENTUM contracts issued prior to May 1,
1996. Capitalized terms in this Supplement have the same meanings as in the
Prospectus. If you have misplaced your prospectus, you may obtain an
additional copy, free of charge, by writing to us at P.O. Box 2919, New York,
NY 10116, or by calling us toll-free at 1-800-528-0204.
As of May 1, 1996, for new contract offerings, the MOMENTUM prospectus has
been combined with the prospectus for EQUI-VEST, a family of Equitable Life
group and individual deferred variable annuity contracts which are available
to both individuals as well as to many types of trusteed and non-trusteed
employer-sponsored retirement programs. The combination of these two
prospectuses into one does not in itself change the terms or conditions for
either program.
Modifications and updates this supplement makes to the May 1, 1995 MOMENTUM
prospectus are described below (page references are to the May 1, 1995
prospectus):
EQUITABLE LIFE. The information about Equitable Life on page 6 is updated as
follows: Equitable Life is a wholly-owned subsidiary of The Equitable
Companies Incorporated (the Holding Company). The largest stockholder of the
Holding Company is AXA S.A. AXA beneficially owns 60.6% of the outstanding
shares of common stock of the Holding Company, plus convertible preferred
stock. AXA, a French company, is the holding company for an international
group of insurance and related financial services companies. Equitable Life,
the Holding Company and their subsidiaries managed approximately $195.3
billion in assets as of December 31, 1995.
THE TRUST'S INVESTMENT ADVISER. The information about Alliance Capital
Management L.P. (Alliance), the Trust's investment adviser on page 16, is
updated as follows. As of December 31, 1995, Alliance was managing
approximately $146.5 billion in assets. Alliance employs 162 investment
professionals, including 81 research analysts. Portfolio managers have
average investment experience of more than 16 years.
THE GUARANTEED INTEREST ACCOUNT. On page 24, the following replaces the third
paragraph of Part 4: The Guaranteed Interest Account: Interest is credited to
the Account every day. There are three levels of interest rates
simultaneously in effect in the Guaranteed Interest Account: the minimum
interest rate guaranteed over the life of the contract, the yearly guaranteed
interest rate for the calendar year, and the current interest rate. Your
money in the Guaranteed Interest Account will be credited with the highest
applicable rate of the three. Current interest rates are declared
periodically by Equitable Life, at its discretion, according to procedures
that Equitable Life reserves the right to change. All interest rates are
effective annual rates, but before deduction of applicable administrative or
contingent withdrawal charges.
The minimum interest rate for money invested in the Guaranteed Interest
Account under the MOMENTUM contract is 4% for 1997. The minimum rate for 1996
continues at 4%.
FEE TABLES AND EXAMPLES. On pages 12, 13 and 14, the fee table and examples
are updated as follows:
<TABLE>
<CAPTION>
<S> <C>
Description of Expenses
- --------------------------------------------
CONTRACT TRANSACTION EXPENSES
SALES LOAD ON PURCHASES .................... NONE
TRANSFER FEES .............................. NONE
MAXIMUM CONTINGENT WITHDRAWAL CHARGE (1) .. 6%
PLAN LOAN CHARGES (2) ....................... $25 WHEN LOAN IS MADE
+$6 PER QUARTER
ANNUAL ADMINISTRATIVE CHARGE (3) ............ $30 PER PARTICIPANT
ANNUAL BASIC RECORDKEEPING CHARGE (4) ...... $300 PER PLAN
</TABLE>
1
<PAGE>
MOMENTUM Prospectus Supplement (continued)
<TABLE>
<CAPTION>
INTERMEDIATE
MONEY GOVERNMENT QUALITY GROWTH & EQUITY
MARKET SECURITIES BOND HIGH YIELD INCOME INDEX
---------- -------------- --------- ------------ ---------- --------
<S> <C> <C> <C> <C> <C> <C>
MAXIMUM SEPARATE ACCOUNT AND
TRUST ANNUAL EXPENSES (5) 1.75% n/a n/a n/a n/a n/a
Separate Account Annual Expenses
(6)
Mortality and Expense
Risk Fees 0.65% 0.50% 0.50% 0.50% 0.50% 0.50%
Other Expenses 0.84% 0.84% 0.84% 0.84% 0.84% 0.84%
---------- ----------- --------- ------------ ---------- --------
TOTAL SEPARATE ACCOUNT
ANNUAL EXPENSES 1.49%(5) 1.34% 1.34% 1.34% 1.34% 1.34%
Hudson River Trust Annual
Expenses(6)
Investment Advisory Fee 0.40% 0.50% 0.55% 0.55% 0.55% 0.35%
Other Expenses 0.04% 0.07% 0.04% 0.05% 0.05% 0.13%
---------- ----------- --------- ------------ ---------- --------
TOTAL TRUST
ANNUAL EXPENSES(7) 0.44%(5) 0.57% 0.59% 0.60% 0.60% 0.48%
</TABLE>
<TABLE>
<CAPTION>
COMMON AGGRESSIVE CONSERVATIVE GROWTH
STOCK GLOBAL INTERNATIONAL STOCK INVESTORS BALANCED INVESTORS
---------- -------- --------------- ------------ -------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
MAXIMUM SEPARATE ACCOUNT
AND TRUST
ANNUAL EXPENSES (5) 1.75% n/a n/a 1.75% n/a 1.75% n/a
Separate Account Annual
Expenses (6)
Mortality and Expense
Risk Fees 0.65% 0.50% 0.50% 0.50% 0.50% 0.65% 0.50%
Other Expenses 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84%
---------- -------- --------- ------------ ----------- --------- -----------
TOTAL SEPARATE ACCOUNT
ANNUAL EXPENSES 1.49%(5) 1.34% 1.34% 1.34%(5) 1.34% 1.49%(5) 1.34%
Trust Annual
Expenses(6)
Investment Advisory Fee 0.35% 0.53% 0.90% 0.46% 0.55% 0.37% 0.52%
Other Expenses 0.03% 0.08% 0.13% 0.03% 0.04% 0.03% 0.04%
---------- -------- --------- ------------ ----------- --------- -----------
TOTAL TRUST
ANNUAL EXPENSES (7) 0.38% 0.61% 1.03% 0.49%(5) 0.59% 0.40%(5) 0.56%
</TABLE>
(footnotes on next page)
2
<PAGE>
MOMENTUM Prospectus Supplement (continued)
- ------------
Notes:
(1) The maximum contingent withdrawal charge is 6% of the lesser of the
amount withdrawn and the contributions made in the current and five prior
Participation Years. Important exceptions and limitations eliminate or
reduce the contingent withdrawal charge. See "Contingent Withdrawal Charge"
in Part 6.
(2) Your Employer may elect to pay these charges and we have reserved the
right to increase them.
(3) The administrative charge is deducted quarterly and is currently $7.50
or, if less, .50% of your Retirement Account Value plus the amount of any
Active Loan. Your Employer may elect to pay this charge. This charge is not
currently assessed for any calendar quarter in which the Retirement Account
Value plus any Active Loan is $25,000 or more on the last Business Day of
that calendar quarter. We have reserved the right to increase this charge.
See "Quarterly Administrative Charge" in Part 6.
(4) This charge will be billed directly to the Employer if the basic plan
recordkeeping option has been elected. We charge a fee of $25 per check
drawn if the Employer elects to have Equitable Life directly distribute plan
benefits and withdrawals. We reserve the right to increase these charges
upon 90 days written notice to the Employer or Plan Trustee. See "Charge
for Plan Recordkeeping Services" in Part 6.
(5) The amounts shown in the Table under "Separate Account Annual Expenses"
and "Trust Annual Expenses," when added together, are not permitted to
exceed a total annual rate of 1.75% of the value of the assets held in the
Money Market, Balanced, Common Stock and Aggressive Stock Funds. Without
this expense limitation, total Separate Account Annual Expenses plus Trust
Annual Expenses for 1995 would have been 1.93%, 1.89%, 1.87%, and 1.83% for
the Money Market, Balanced, Common Stock and Aggressive Stock Funds,
respectively. See "Limitation on Charges" and "Charges to Investment
Funds for Expenses" in Part 6.
(6) Separate Account and Trust expenses are shown as a percentage of each
Investment Fund's or Portfolio's average value. Separate Account Annual
Expenses are guaranteed not to exceed a total annual rate of 1.49% for the
Money Market, Balanced and Common Stock Funds and an annual rate of 1.34%
for all other Investment Funds. "Mortality and Expense Risks Fees" includes
death benefit charges. "Other Expenses" under "Separate Account Annual
Expenses" includes financial accounting expenses. See "Limitations on
Charges," "Charges to Investment Funds for Expenses" and "Hudson River Trust
Charges to Portfolios" in Part 6.
(7) Amounts shown for all Portfolios except the International Portfolio are
for the year ended December 31, 1995. The amount shown for the International
Portfolio, which was established on April 3, 1995 is annualized. The
investment advisory fee for each Portfolio may vary from year to year
depending upon the average daily net assets of the respective Portfolio of
The Trust. The maximum investment advisory fees, however, cannot be changed
without a vote of that Portfolio's shareholders. The other direct operating
expenses will also fluctuate from year to year depending on actual expenses.
The Trust expenses are shown as a percentage of each ortfolio's average
value. See "Hudson River Trust Charges to Portfolios" in Part 6.
3
<PAGE>
MOMENTUM Prospectus Supplement (continued)
EXAMPLES
The examples below show the expenses that a hypothetical Participant would
pay in the surrender and non-surrender situations noted below, assuming a
single contribution of $1,000 on the Participation Date invested in one of
the Investment Funds listed, a 5% annual return on assets and no waiver of
the contingent withdrawal charge.(1) For purposes of these examples, the
annual administrative charge is computed by reference to the actual
aggregate annual administrative charges as a percentage of the total assets
held under the contracts. These examples do not reflect the $300 annual
charge for basic recordkeeping services, which is billed directly to the
Employer.
These examples should not be considered a representation of past or future
expenses for each Investment Funds or Portfolio. Actual expenses may be
greater or less than those shown.(2) Similarly, the annual rate of return
assumed in the examples is not an estimate or guarantee of future
investment performance.
IF YOUR PARTICIPATION UNDER THE MOMENTUM CONTRACT TERMINATES AT THE END OF
EACH PERIOD SHOWN, THE MAXIMUM EXPENSE WOULD BE:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------- --------- --------- ----------
<S> <C> <C> <C> <C>
Money Market $75.72 $121.12 $166.70 $230.34
Intermediate Government
Securities 77.30 125.90 175.22 247.64
Quality Bond 77.50 126.50 176.28 249.78
High Yield 77.60 126.80 176.81 250.85
Growth & Income 77.60 126.80 176.81 250.85
Equity Index 76.41 123.21 170.43 237.94
Common Stock 75.72 121.12 166.70 230.34
Global 77.70 127.09 177.34 251.92
International 81.86 139.56 199.38 295.84
Aggressive Stock 75.72 121.12 166.70 230.34
Asset Allocation Series:
Conservative Investors 77.50 126.50 176.28 249.78
Balanced 75.72 121.12 166.70 230.34
Growth Investors 77.20 125.60 174.69 246.56
</TABLE>
IF YOUR PARTICIPATION UNDER THE MOMENTUM CONTRACT DOES NOT TERMINATE AT THE END
OF EACH PERIOD SHOWN, THE EXPENSE WOULD BE:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
-------- --------- --------- ----------
<S> <C> <C> <C> <C>
Money Market $20.10 $ 62.13 $106.70 $230.34
Intermediate Government
Securities 21.78 67.20 115.22 247.64
Quality Bond 21.99 67.83 116.28 249.78
High Yield 22.09 68.15 116.81 250.85
Growth & Income 22.09 68.15 116.81 250.85
Equity Index 20.84 64.35 110.43 237.94
Common Stock 20.10 62.13 106.70 230.34
Global 22.20 68.46 117.34 251.92
International 26.60 81.68 139.38 295.84
Aggressive Stock 20.10 62.13 106.70 230.34
Asset Allocation Series:
Conservative Investors 21.99 67.83 116.28 249.78
Balanced 20.10 62.13 106.70 230.34
Growth Investors 21.67 66.88 114.69 246.56
</TABLE>
- ------------
(1) The amount accumulated could not be paid to you in the form of an
annuity at the end of any of the periods shown in the examples. The
minimum amount applied to purchase an annuity must be $3,500. See
"Electing an Annuity Distribution Option" in Part 5. In some cases,
charges for state premium or other applicable state or local taxes will
be deducted from the amount applied, if applicable.
(2) Actual administrative charges may be less if you, as Employer, are
billed directly for the quarterly administrative charge or if the
charge does not apply to a Participant because the Retirement Account
Value plus the amount of any Active Loan is at least $25,000 on the
last Business Day of a calendar quarter.
4
<PAGE>
MOMENTUM Prospectus Supplement (continued)
INVESTMENT PERFORMANCE. In Part 3: Investment Performance, the benchmark for
the Aggressive Stock Fund on page 19 has been changed as follows:
AGGRESSIVE STOCK: May 1, 1984; 50% Russell 2000 Small Stock Index and 50% S&P
Mid-Cap Index (50% Russell 2000/50% S&P MidCap).
Also, the tables on pages 20 and 21 are replaced by the following:
MOMENTUM ANNUALIZED RATES OF RETURN FOR PERIODS ENDING DECEMBER 31, 1995:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS
------- --------- ---------
<S> <C> <C> <C>
MONEY MARKET 4.35% 2.85% 3.08%
Lipper Money Market 4.35 2.88 3.10
3-Month T-Bill 5.74 4.34 4.47
INTERMEDIATE GOVERNMENT
SECURITIES 11.81 4.80 --
Lipper U.S. Government 15.47 6.27 --
Lehman Intermediate Government 14.41 6.74 --
QUALITY BOND 15.46 -- --
Lipper Corporate Bond A-Rated 18.15 -- --
Lehman Aggregate 18.47 -- --
HIGH YIELD 18.32 11.30 13.41
Lipper High Yield 17.36 9.80 15.79
Master High Yield 19.91 11.57 17.17
GROWTH & INCOME 22.42 -- --
Lipper Growth & Income 31.18 -- --
75% S&P 500/25% Value Line
Conv. 34.93 -- --
EQUITY INDEX 34.66 -- --
Lipper S&P 500 Index Funds 35.31 -- --
S&P 500 37.54 -- --
COMMON STOCK 30.64 15.79 16.51
Lipper Growth 31.08 12.09 15.53
S&P 500 37.54 15.30 16.57
GLOBAL 17.23 16.63 14.94
Lipper Global 13.87 13.45 9.10
MSCI World 20.72 15.83 11.74
INTERNATIONAL* -- -- --
Lipper International -- -- --
MSCI EAFE -- -- --
AGGRESSIVE STOCK 29.97 12.48 20.23
Lipper Small Company Growth 28.19 15.26 25.72
50% Russell 2000/50% S&P MidCap 29.69 13.67 20.16
The Asset Allocation Series:
CONSERVATIVE INVESTORS 18.79 7.10 8.68
Lipper Income 21.25 9.65 11.99
70% Lehman Treas./30% S&P 500 24.11 10.41 11.73
BALANCED 18.13 5.90 9.77
Lipper Flexible Portfolio 21.58 9.32 11.43
50% S&P 500/50% Lehman Corp. 28.39 12.01 13.39
GROWTH INVESTORS 24.68 10.66 15.56
Lipper Flexible Portfolio 21.58 9.32 11.43
30% Lehman Corp./70% S&P 500 32.05 13.35 14.70
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
SINCE INCEPTION
10 YEARS 20 YEARS INCEPTION DATE
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
MONEY MARKET 4.63% -- 5.64% 5/11/82
Lipper Money Market 4.71 -- 5.91
3-Month T-Bill 5.77 -- 6.68
INTERMEDIATE GOVERNMENT
SECURITIES -- -- 6.19 4/1/91
Lipper U.S. Government -- -- 7.87
Lehman Intermediate Government -- -- 8.17
QUALITY BOND -- -- 3.14 10/1/93
Lipper Corporate Bond A-Rated -- -- 4.58
Lehman Aggregate -- -- 6.46
HIGH YIELD -- -- 8.73 1/2/87
Lipper High Yield -- -- 8.87
Master High Yield -- -- 11.28
GROWTH & INCOME -- -- 8.20 10/1/93
Lipper Growth & Income -- -- 12.76
75% S&P 500/25% Value Line
Conv. -- -- 15.45
EQUITY INDEX -- -- 17.58 3/1/94
Lipper S&P 500 Index Funds -- -- 17.62
S&P 500 -- -- 19.89
COMMON STOCK 13.67 13.75% 10.69 8/1/68
Lipper Growth 12.05 12.79 N/A
S&P 500 14.87 14.59 11.18
GLOBAL -- -- 9.88 8/27/87
Lipper Global -- -- 2.52
MSCI World -- -- 6.75
INTERNATIONAL* -- -- 9.60* 4/3/95
Lipper International -- -- 12.21*
MSCI EAFE -- -- 9.17*
AGGRESSIVE STOCK 16.42 -- 17.97 5/1/84
Lipper Small Company Growth 16.42 -- 18.71
50% Russell 2000/50% S&P MidCap 13.66 -- N/A
The Asset Allocation Series:
CONSERVATIVE INVESTORS -- -- 8.19 10/2/89
Lipper Income -- -- 9.79
70% Lehman Treas./30% S&P 500 -- -- 10.55
BALANCED 8.93 -- 10.16 5/1/84
Lipper Flexible Portfolio 10.13 -- 11.57
50% S&P 500/50% Lehman Corp. 12.53 -- 13.94
GROWTH INVESTORS -- -- 14.51 10/2/89
Lipper Flexible Portfolio -- -- 9.44
30% Lehman Corp./70% S&P 500 -- -- 11.97
</TABLE>
- ------------
* Unannualized
5
<PAGE>
MOMENTUM Prospectus Supplement (continued)
MOMENTUM Cumulative Rates of Return for Periods Ending December 31, 1995:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS
------- --------- ---------
<S> <C> <C> <C>
MONEY MARKET 4.35% 8.80% 16.40%
Lipper Money Market 4.35 8.87 16.48
3-Month T-Bill 5.74 13.58 24.45
INTERMEDIATE GOVERNMENT
SECURITIES 11.81 15.09 --
Lipper U.S. Government 15.47 20.05 --
Lehman Intermediate Government 14.41 21.60 --
QUALITY BOND 15.46 -- --
Lipper Corporate Bond A-Rated 18.15 -- --
Lehman Aggregate 18.47 -- --
HIGH YIELD 18.32 37.88 87.60
Lipper High Yield 17.36 32.45 108.96
Master High Yield 19.91 38.89 120.85
GROWTH & INCOME 22.42 -- --
Lipper Growth & Income 31.18 -- --
75% S&P 500/25% Value Line
Conv. 34.93 -- --
EQUITY INDEX 34.66 -- --
Lipper S&P 500 Index Funds 35.31 -- --
S&P 500 37.54 -- --
COMMON STOCK 30.64 55.23 114.65
Lipper Growth 31.08 41.29 107.30
S&P 500 37.54 53.30 115.25
GLOBAL 17.23 58.66 100.60
Lipper Global 13.87 46.36 55.44
MSCI World 20.72 55.39 74.20
INTERNATIONAL* -- -- --
Lipper International -- -- --
MSCI EAFE -- -- --
AGGRESSIVE STOCK 29.97 42.29 151.25
Lipper Small Company Growth 28.19 55.24 268.67
50% S&P 500/50% NASDAQ MidCap 29.69 46.89 150.49
The Asset Allocation Series:
CONSERVATIVE INVESTORS 18.79 22.83 51.59
Lipper Income 21.25 31.95 76.42
70% Lehman Treas./30% S&P 500 24.11 34.58 74.09
BALANCED 18.13 18.76 59.39
Lipper Flexible Portfolio 21.58 30.92 72.73
50% S&P 500/50% Lehman Corp. 28.39 40.53 87.43
GROWTH INVESTORS 24.68 35.49 106.08
Lipper Flexible Portfolio 21.58 30.92 72.73
30% Lehman Corp./70% S&P 500 32.05 45.64 98.56
</TABLE>
CAPITAL PRINTING SYSTEMS]
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
SINCE INCEPTION
10 YEARS 20 YEARS INCEPTION DATE
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
MONEY MARKET 57.24% -- 111.32% 5/11/82
Lipper Money Market 58.55 -- 119.52
3-Month T-Bill 75.23 -- 141.98
INTERMEDIATE GOVERNMENT
SECURITIES -- -- 33.03 4/1/91
Lipper U.S. Government -- -- 43.43
Lehman Intermediate Government -- -- 45.17
QUALITY BOND -- -- 7.20 10/1/93
Lipper Corporate Bond A-Rated -- -- 10.67
Lehman Aggregate -- -- 15.09
HIGH YIELD -- -- 112.31 1/2/87
Lipper High Yield -- -- 117.28
Master High Yield -- -- 161.50
GROWTH & INCOME -- -- 19.38 10/1/93
Lipper Growth & Income -- -- 31.42
75% S&P 500/25% Value Line
Conv. -- -- 38.14
EQUITY INDEX -- -- 34.60 3/1/94
Lipper S&P 500 Index Funds -- -- 34.65
S&P 500 -- -- 39.30
COMMON STOCK 260.01 1215.12% 1,519.31 8/1/68
Lipper Growth 215.4 1,036.49 N/A
S&P 500 300.11 692.18 1,728.76
GLOBAL -- -- 119.53 8/27/87
Lipper Global -- -- 23.09
MSCI World -- -- 72.38
INTERNATIONAL* -- -- 9.60* 4/3/95
Lipper International -- -- 12.21*
MSCI EAFE -- -- 9.17*
AGGRESSIVE STOCK 357.25 -- 587.30 5/1/84
Lipper Small Company Growth 357.25 -- 588.33
50% S&P 500/50% NASDAQ MidCap 259.88 -- 465.90
The Asset Allocation Series:
CONSERVATIVE INVESTORS -- -- 63.51 10/2/89
Lipper Income -- -- 79.42
70% Lehman Treas./30% S&P 500 -- -- 87.24
BALANCED 135.32 -- 209.23 5/1/84
Lipper Flexible Portfolio 163.91 -- 248.20
50% S&P 500/50% Lehman Corp. 225.59 -- 359.14
GROWTH INVESTORS -- -- 133.12 10/2/89
Lipper Flexible Portfolio -- -- 76.92
30% Lehman Corp./70% S&P 500 -- -- 102.72
</TABLE>
MOMENTUM Prospectus Supplement (continued)
YEAR-BY-YEAR RATES OF RETURN
<TABLE>
<CAPTION>
INTERMEDIATE
MONEY GOVERNMENT QUALITY HIGH GROWTH & EQUITY
MARKET SECURITIES BOND YIELD INCOME INDEX
-------- -------------- --------- -------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
1986 5.27 -- -- -- -- --
1987 5.27 -- -- 3.28* -- --
1988 5.94 -- -- 8.26 -- --
1989 7.72 -- -- 3.72 -- --
1990 6.82 -- -- (2.42) -- --
1991 4.69 10.94* -- 22.79 -- --
1992 2.19 4.18 -- 10.81 -- --
1993 1.59 9.10 (0.84) 21.50 (0.59)* --
1994 2.63 (5.65) (6.37) (4.09) (1.90) (0.04)*
1995 4.35 11.81 15.46 18.32 22.42 34.66
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
COMMON INTER- AGGRESSIVE CONSERVATIVE GROWTH
STOCK GLOBAL NATIONAL STOCK INVESTORS BALANCED INVESTORS
-------- ---------- ---------- ------------ -------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1986 15.49 -- -- 21.95 -- 11.77 --
1987 6.14 (13.67)* -- (1.00 -- (5.02) --
1988 21.55 9.39 -- (0.30 -- 13.27 --
1989 24.07 25.04 -- 42.95 2.75* 24.60 3.65*
1990 (9.27) (7.32) -- 5.76 4.98 (1.46) 9.13
1991 35.81 28.81 -- 84.65 18.24 40.02 46.92
1992 1.82 (1.85) -- (4.37) 4.37 (4.15) 3.53
1993 23.11 30.36 -- 15.28 9.28 10.81 13.72
1994 (3.48) 3.82 -- (5.03) (5.38) (9.27) (4.44)
1995 30.64 17.23 9.60* 29.97 18.79 18.13 24.68
</TABLE>
- ------------
* Unannualized
6
<PAGE>
MOMENTUM Prospectus Supplement (continued)
STANDARDIZED COMPUTATION OF PERFORMANCE.
The discussion and tables under this caption on page 22 are replaced by the
following:
The performance data in the following tables, which are prepared in a manner
prescribed by the SEC for use when we advertise the performance of the
Separate Account, illustrate the average annual total return of the
Investment Funds over the periods shown, assuming a single initial
contribution of $1,000 and termination of participation under the MOMENTUM
Contract at the end of each period under circumstances in which the
contingent withdrawal charge applies. The values shown are also net of all
other charges and expenses assessed against the Investment Funds. An
Investment Fund's average annual total return is the annual rate of growth of
the Investment Fund that would be necessary to achieve the ending value of a
contribution kept in the Investment Fund for the period specified.
For purposes of the tables below, deduction of a quarterly administrative
charge equal to $7.50 is assumed, even though this charge does not currently
apply if the Retirement Account Value plus the amount of any Active Loan is
at least $25,000 as of the end of the quarter. Each calculation further
assumes that the $1,000 contribution was allocated to only one Investment
Fund, no transfers or additional contributions were made, no loans, and no
amounts were allocated to any other Investment Fund and the Participant has
not taken any loans.
In order to calculate the standardized performance information, we divide the
termination value (defined below) as of December 31, 1995 by the $1,000
contribution made at the beginning of each period illustrated. The result of
that calculation is the total growth rate for the period. Then we annualize
that growth rate to obtain the average annual percentage increase (decrease)
during the period shown. When we "annualize," we assume that a single rate of
return applied each year during the period will produce the ending value,
taking into account the effect of compounding. "Termination value" means the
Retirement Account Value less the contingent withdrawal charge, the quarterly
administrative charge and all other charges and expenses which are applied
against Separate Account assets. The contingent withdrawal charge will never
be greater than 6%. See "Part 7: Deductions and Charges."
GROWTH OF $1,000 FOR PARTICIPANT TERMINATED ON DECEMBER 31, 1995
<TABLE>
<CAPTION>
LENGTH OF INVESTMENT PERIOD
----------------------------------------------------------------------
INVESTMENT FUND ONE YEAR THREE YEARS FIVE YEARS TEN YEARS SINCE INCEPTION*
- --------------------------------- ---------- ------------- ------------ ----------- ----------------
<S> <C> <C> <C> <C> <C>
Money Market $ 967.55 $ 969.19 $ 996.14 $1,286.74 --
Intermediate Government
Securities 1,036.77 1,025.22 -- -- $1,149.41
Quality Bond 1,071.69 -- -- -- 969.39
High Yield 1,099.67 1,238.27 1,640.09 -- 1,779.34
Growth & Income 1,139.87 -- -- -- 1,081.13
Equity Index 1,259.86 -- -- -- 1,233.08
Common Stock 1,220.48 1,401.72 1,890.59 3,057.26 --
Global 1,089.02 1,433.99 1,762.37 -- 1,860.98
International -- -- -- -- 1,021.40
Aggressive Stock 1,213.90 1,279.87 2,246.95 3,939.40 --
Asset Allocation Series:
Conservative Investors 1,104.37 1,096.63 1,311.33 -- 1,442.55
Balanced 1,097.82 1,058.25 1,381.82 1,951.87 --
Growth Investors 1,162.09 1,215.83 1,813.57 -- 2,079.88
</TABLE>
7
<PAGE>
MOMENTUM Prospectus Supplement (continued)
AVERAGE ANNUAL TOTAL RETURN FOR PARTICIPANT
TERMINATED ON DECEMBER 31, 1995
<TABLE>
<CAPTION>
LENGTH OF INVESTMENT PERIOD
----------------------------------------------------------------------
INVESTMENT FUND ONE YEAR THREE YEARS FIVE YEARS TEN YEARS SINCE INCEPTION*
- ---------------------------------- ---------- ------------- ------------ ----------- ----------------
<S> <C> <C> <C> <C> <C>
Money Market -3.25% -1.04% -0.08% 2.55% --
Intermediate Government Securities 3.68 0.83 -- -- 2.97%
Quality Bond 7.17 -- -- -- -1.37
High Yield 9.97 7.38 10.40 -- 6.62
Growth & Income 13.99 -- -- -- 3.53
Equity Index 25.99 -- -- -- 12.10
Common Stock 22.05 11.91 13.58 11.82 --
Global 8.90 12.77 12.00 -- 7.73
International -- -- -- -- 2.14
Aggressive Stock 21.39 8.57 17.58 14.69 --
Asset Allocation Series:
Conservative Investors 10.44 3.12 5.57 -- 6.04
Balanced 9.78 1.91 6.68 6.92 --
Growth Investors 16.21 6.73 12.64 -- 12.44
</TABLE>
- ------------------
* Inception dates are as follows: Money Market (May 11, 1982);
Intermediate Government Securities (April 1, 1991); Quality Bond (October 1,
1993); High Yield (January 2, 1987); Balanced (May 1, 1984); Growth & Income
(October 1, 1993); Equity Index (March 1, 1994); Common Stock (August 1,
1968); Global (August 27, 1987); International (April 3, 1995); Aggressive
Stock (May 1, 1984); Conservative Investors (October 2, 1989); and Growth
Investors (October 2, 1989). The "Since Inception" number for the
International Fund is unannualized.
AUTOMATIC MINIMUM WITHDRAWAL. On page 31, the first sentence of the second
paragraph of this section is replaced by the following: "We offer a payment
option which we call "Automatic Minimum Withdrawal," which is intended to
meet minimum distribution requirements."
VARIABLE INCOME ANNUITY. The variable annuity option discussed in the first
paragraph following the table on page 30 has been broadened to allow funding
of variable payments through your choice of the 13 Investment Funds of the
Hudson River Trust through the purchase of annuity units. Previously, only
the Common Stock Fund was available for variable payment funding.
TAX ASPECTS OF DISTRIBUTIONS FROM THE PLAN. Under the FEDERAL INCOME TAX
WITHHOLDING section on page 41, a final paragraph has been added: "Periodic
payments are generally subject to wage-bracket type withholding (as if such
payments were wages by an employer to an employee) unless the recipient
elects no withholding. If a recipient does not elect out of withholding or
does not specify the number of withholding exemptions, withholding will
generally be made as if the recipient is married and claiming three
withholding exemptions. There is an annual threshold of taxable income from
periodic payments which is exempt from withholding based on this assumption.
For 1996 a recipient of periodic payments (e.g., monthly or annual payments
which are not eligible rollover distributions) which total less than $14,075
taxable amount will generally be exempt from Federal income tax withholding,
unless the recipient specifies a different choice of withholding exemption."
In addition, on page 42, a new sub-section called OTHER WITHHOLDING has been
added: "In certain cases Equitable may be required to withhold, or
temporarily hold back, an amount of death benefit due to potential
application of state inheritance or estate tax rules or federal "generation
skipping tax," which is a form of estate tax. The potential application of
these rules varies depending on the amount of the death benefit, the
relationship of the beneficiaries to the deceased, and the residence of the
parties. You should consult with your tax or legal adviser concerning
potential application of these rules to your own personal situation."
CERTAIN RULES APPLICABLE TO PLAN LOANS. An additional bullet point has been
added to this section (pages 42-43): "For contracts which are subject to
ERISA, the trustee or sponsoring employer is responsible for insuring that
any loan meets applicable Department of Labor (DOL) requirements. It is the
responsibility of the plan administrator, the trustee of the qualified plan
and/or the employer, and not Equitable Life, to properly administer any loan
made to plan participants. With respect to specific loans made by the plan to
a plan participant, the plan administrator determines the interest rate, the
maximum term and all other terms and conditions of the loan."
8
<PAGE>
MOMENTUM Prospectus Supplement (continued)
DISTRIBUTION. Equico Securities Inc., the principal underwriter of the Trust
under a Distribution and Servicing Agreement, will change its name to EQ
FINANCIAL CONSULTANTS, INC. on or about May 1, 1996. For 1995, Equico was
paid a fee of $325,380 for its services under the Distribution and Servicing
Agreement.
STATEMENT OF ADDITIONAL INFORMATION. The statement of additional information
(SAI), dated May 1, 1996, which is part of the registration statement for the
Separate Account, is available free of charge upon request by writing to the
Processing Office or calling 1-800-528-0204, our toll-free number. The SAI
has been incorporated by reference into this Supplement. The Table of
Contents for the SAI appears below:
- -----------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
PART 1: ADDITIONAL INFORMATION ABOUT THE MOMENTUM PROGRAM PAGE 3
PART 2: HOW WE DEDUCT THE MOMENTUM QUARTERLY ADMINISTRATIVE PAGE 3
CHARGE
PART 3: DESCRIPTION OF CONTRIBUTION SOURCES FOR THE MOMENTUM PAGE 4
PROGRAM
PART 4: ADDITIONAL LOAN PROVISIONS PAGE 4
PART 5: TAX RULES: SPECIAL ASPECTS PAGE 7
PART 6: REQUIRED MINIMUM DISTRIBUTIONS OPTION/AUTOMATIC MINIMUM
WITHDRAWAL OPTION PAGE 9
PART 7: ACCUMULATION UNIT VALUES PAGE 10
PART 8: CALCULATION OF ANNUITY PAYMENTS PAGE 10
PART 9: THE REORGANIZATION PAGE 12
PART 10: MONEY MARKET FUND YIELD INFORMATION PAGE 12
PART 11: OTHER YIELD INFORMATION PAGE 13
PART 12: DISTRIBUTION PAGE 13
PART 13: KEY FACTORS IN RETIREMENT PLANNING PAGE 13
PART 14: LONG TERM MARKET TRENDS PAGE 18
PART 15: CUSTODIAN AND INDEPENDENT ACCOUNTANTS PAGE 20
PART 16: FINANCIAL STATEMENTS PAGE 20
</TABLE>
HOW TO OBTAIN THE MOMENTUM STATEMENT OF ADDITIONAL INFORMATION
Send this Form to:
- ------------------------------------------------------------------------------
Momentum Administrative Services
P.O. Box 2919
New York, NY 10116
Re: Statement of Additional Information
- ------------------------------------------------------------------------------
Please send me a statement of Additional Information dated May 1, 1996
- ------------------------------------------------------------------------------
Name
- ------------------------------------------------------------------------------
Address
- ------------------------------------------------------------------------------
City State Zip
9
<PAGE>
LOGO
- -----------------------------------------------------------------------------
RETIREMENT PLANNING FROM EQUITABLE LIFE
LOGO
<PAGE>
MOMENTUM
RETIREMENT PLANNING FROM EQUITABLE LIFE
GROUP VARIABLE ANNUITY CONTRACT FUNDED THROUGH THE
INVESTMENT FUNDS OF SEPARATE ACCOUNT A
Issued By:
The Equitable Life Assurance Society of the United States
This prospectus describes a group variable annuity contract (the MOMENTUM
CONTRACT) offered by The Equitable Life Assurance Society of the United
States (EQUITABLE LIFE). The Momentum Contract is designed to fund defined
contribution plans. Employers sponsoring such plans and trustees of such
plans (PLAN TRUSTEES) can participate in the Momentum Contract through the
Momentum Program. The Momentum Program consists of a defined contribution
master plan and trust sponsored by Equitable Life (the MASTER PLAN AND TRUST)
or, for Employers who prefer to use their own individually-designed or a
prototype defined contribution plan, a pooled trust (the POOLED TRUST).
The Momentum Contract offers the investment options (INVESTMENT OPTIONS)
listed below except in certain states where all options are not yet
available. These Investment Options include the Guaranteed Interest Account
which is part of Equitable Life's general account and pays interest at a
guaranteed fixed rate and thirteen variable investment funds (INVESTMENT
FUNDS) of Separate Account A (SEPARATE ACCOUNT), which include:
o Money Market
o Intermediate Government
Securities
o Quality Bond
o High Yield
o Growth & Income
o Equity Index
o Common Stock
o Global
o International
o Aggressive Stock
Asset Allocation Series:
o Conservative Investors
o Balanced
o Growth Investors
We invest each Investment Fund in shares of a corresponding portfolio
(PORTFOLIO) of The Hudson River Trust, a mutual fund whose shares are
purchased by the separate accounts of insurance companies. Amounts allocated
to the Investment Funds will increase or decrease with the investment
performance of the Portfolios. The prospectus for The Hudson River Trust,
directly following this prospectus, describes the investment objectives,
policies and risks of the Portfolios. Subject to state regulatory
requirements, the International Fund will be available on or about
September 1, 1995.
Participants may choose from a variety of payout options. If an annuity is
selected as the retirement payout option, variable annuities are funded only
through the Common Stock Fund and fixed annuities are funded through
Equitable Life's general account. Effective on or about September 1, 1995
variable payments will be funded through your choice among any of the
Investment Funds.
We provide Employers and Participants with services and reports relating to
the Momentum Contract. We also offer a variety of plan recordkeeping services
to plan administrators at an additional cost.
This prospectus provides information about the Momentum Contract that
prospective investors should know before investing. You should read it
carefully and retain it for future reference. The prospectus is not valid
unless it is attached to a current prospectus for The Hudson River Trust,
which investors should also read carefully.
A registration statement relating to the Separate Account has been filed with
the Securities and Exchange Commission (SEC). The statement of additional
information (SAI), dated May 1, 1995, which is part of that registration
statement, is available free of charge upon request by writing to the
Processing Office or calling 1-800-528-0204, our toll-free number. The SAI
has been incorporated by reference into this prospectus. The Table of
Contents for the SAI appears at the back of this prospectus.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
May 1, 1995 888-1096
Copyright 1995
The Equitable Life Assurance Society of the United States,
New York, New York, 10019.
All rights reserved.
<PAGE>
PROSPECTUS TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
GENERAL TERMS PAGE 4
PART 1: SUMMARY PAGE 6
Equitable Life 6
The Momentum Program 6
Adopting the Momentum Program 7
The Momentum Contract 7
Investment Options 8
Contributions 8
Transfers 8
Automatic Transfer Program (Investment Simplifier) 8
Services We Provide 8
Distribution Options and Death Benefit 9
Withdrawals and Termination 10
Withdrawals for Plan Loans 10
Taxes 10
Deductions and Charges 10
Fee Table 12
PART 2: EQUITABLE LIFE'S SEPARATE ACCOUNT AND ITS INVESTMENT FUNDS PAGE 15
Separate Account A 15
The Hudson River Trust 15
The Hudson River Trust's Investment Adviser 16
Investment Policies And Objectives of The Hudson River Trust's Portfolios 16
PART 3: INVESTMENT PERFORMANCE PAGE 18
How Performance Data Are Calculated 18
Benchmarks 18
Standardized Computation of Performance 22
Communicating Performance Data 22
PART 4: THE GUARANTEED INTEREST ACCOUNT PAGE 24
PART 5: PROVISIONS OF THE MOMENTUM CONTRACT AND SERVICES WE PROVIDE PAGE 25
Selecting Investment Options 25
Contributions 25
Retirement Account Value 26
Transfers 27
Investment Simplifier: Automatic Transfer Service 27
Withdrawals for Plan Loans 28
Withdrawals and Termination 29
Forfeitures 29
Distribution Options 29
Annuity Distribution Options 29
Electing an Annuity Distribution Option 30
Automatic Minimum Withdrawal (Over Age 70 1/2 ) 31
2
<PAGE>
Death Benefit 31
Payments of Proceeds 32
Plan Recordkeeping Services 32
PART 6: DEDUCTIONS AND CHARGES PAGE 33
Limitation on Charges 33
Charges to Investment Funds for Expenses 33
Hudson River Trust Charges to Portfolios 33
Quarterly Administrative Charge 34
Applicable State and Local Taxes 34
Charge for Plan Recordkeeping Services 34
Contingent Withdrawal Charge 34
Plan Loan Charges 35
Special Circumstances 36
PART 7: VOTING RIGHTS PAGE 37
Hudson River Trust Voting Rights 37
Separate Account Voting Rights 37
Voting Rights of Others 37
Changes in Applicable Law 37
PART 8: FEDERAL TAX AND ERISA MATTERS PAGE 38
Tax Aspects of Contributions to a Plan 38
Tax Aspects of Distributions from a Plan 39
Certain Rules Applicable to Plan Loans 42
Impact of Taxes to Equitable Life 43
Certain Rules Applicable to Plans Designed to Comply With Section 404(c) of ERISA 43
STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS PAGE 44
HOW TO OBTAIN THE MOMENTUM STATEMENT OF ADDITIONAL INFORMATION PAGE 44
</TABLE>
3
<PAGE>
GENERAL TERMS
In this prospectus, the terms "we," "our" and "us" mean The Equitable Life
Assurance Society of the United States (Equitable Life). The terms "you" and
"your" refer to either the Employer, Trustee or the Participant as indicated.
ACCUMULATION UNIT
Contributions that are invested in an Investment Fund purchase Accumulation
Units in that Fund. The "Accumulation Unit Value" is the dollar value of each
Accumulation Unit in an Investment Fund on a given date.
ACTIVE LOAN
The principal amount of any Participant plan loan that has neither been
repaid nor deemed distributed under Section 72(p) of the Code.
BUSINESS DAY
Our Business Day is generally any day on which Equitable Life is open and the
New York Stock Exchange is open for trading. We are closed on national
business holidays and also on Martin Luther King, Jr. Day and the Friday
after Thanksgiving. Additionally, we may choose to close on the day
immediately preceding or following a national business holiday or due to
emergency conditions. For the purpose of determining the Transaction Date,
our Business Day ends at 4:00 p.m. Eastern Time or the closing of the New
York Stock Exchange, if earlier.
CASH VALUE
The Retirement Account Value minus any applicable withdrawal charges.
CODE
The Internal Revenue Code of 1986, as amended.
DEFAULT OPTION
The Money Market Fund, if that Fund is selected by the Employer or Plan
Trustee as a funding option under the plan. Otherwise, the Guaranteed
Interest Account. For Old Certificates, the Guaranteed Interest Account is
the Default Option.
EMPLOYER
An employer who has sponsored a defined contribution plan that participates
in the Momentum Program through either the Master Plan and Trust or the
Pooled Trust.
ERISA
The Employee Retirement Income Security Act of 1974, as amended.
GUARANTEED INTEREST ACCOUNT
The Investment Option that is part of Equitable Life's general account.
INVESTMENT FUNDS
The thirteen variable investment divisions of the Separate Account.
Investment Funds are referred to as "Investment Divisions" in the Momentum
Contract.
INVESTMENT OPTIONS
The fourteen choices for investment of contributions: the thirteen Investment
Funds and the Guaranteed Interest Account.
MASTER PLAN AND TRUST
The Members Retirement Plan of The Equitable Life Assurance Society of the
United States and The Members Retirement Trust of The Equitable Life
Assurance Society of the United States, respectively, a defined contribution
master plan and trust sponsored by Equitable Life.
OLD CERTIFICATES
Certificates of Participants in an Employer plan issued in states where the
Intermediate Government Securities, Quality Bond, High Yield, Growth &
Income, Equity Index, Global, International, Conservative Investors and
Growth Investors Funds have not been approved. Also, Certificates of
Participants in an Employer plan under which the Employer has not elected to
add any of the above-listed Investment Funds as Investment Options. These
certificates:
o permit investment in only the Guaranteed Interest Account and the Money
Market, Balanced, Common Stock and Aggressive Stock Funds and
o prohibit transfers into the Money Market Fund under the terms of the
Momentum Contract.
PARTICIPANT
An individual who participates in an Employer's defined contribution plan and
is covered under the Momentum Contract.
PARTICIPATION DATE
The Business Day we receive your properly completed and signed enrollment
form at our Processing Office or the date we receive the first contribution
made on your behalf, if earlier. For Participants in plans that converted to
Momentum from our EQUI-VEST Corporate TRUSTEED Contract, the Partici-
4
<PAGE>
pation Date is the same Participation Date as in the EQUI-VEST Corporate
TRUSTEED certificate relating to that Participant. If more than one EQUI-
VEST Corporate TRUSTEED certificate is in force with respect to a
Participant, then the Participation Date will be the earliest Participation
Date.
PARTICIPATION YEAR
The 12-month period beginning on either your Participation Date or each
anniversary of that date.
PLAN TRUSTEE
A trustee or trustees for an Employer's individually- designed or prototype
defined contribution plan.
POOLED TRUST
The Pooled Trust for Members Retirement Plans of The Equitable Life Assurance
Society of the United States.
PORTFOLIOS
The portfolios of The Hudson River Trust that correspond to the Investment
Funds of the Separate Account.
PROCESSING OFFICE
The address to which all payments (e.g., contributions, loan payments, etc.),
written requests (e.g., transfers, withdrawals, etc.), or other
communications must be sent.
RETIREMENT ACCOUNT VALUE
The sum of the amounts that a Participant has in the Investment Options under
the Momentum Contract.
SEPARATE ACCOUNT
Equitable Life's Separate Account A.
SOURCE
The source of a contribution. There are six potential sources: (i) employer,
(ii) post-tax, (iii) prior plan, (iv) qualified non-elective and qualified
matching, (v) salary deferral, and (vi) matching contributions. A detailed
description of these Sources is contained in the SAI.
SAI
The Momentum Statement of Additional Information.
TRANSACTION DATE
The Business Day we receive a contribution or an acceptable written or
telephone transaction request at our Processing Office or the date specified
in the request, if later. If the contribution or request reaches our
Processing Office on a non-Business Day, or after the close of the Business
Day, the Transaction Date will be the following Business Day (unless a future
date certain is specified in the request.)
VALUATION PERIOD
Each Business Day together with any preceding non-Business Day.
5
<PAGE>
PART 1: SUMMARY
EQUITABLE LIFE
EQUITABLE LIFE is a New York stock life insurance company that has been in
business since 1859. For more than 100 years we have been among the largest
life insurance companies in the United States. Our Home Office is located at
787 Seventh Avenue, New York, New York 10019. Equitable Life and its
subsidiaries are authorized to sell life insurance and annuities in all fifty
states, the District of Columbia, Puerto Rico and the Virgin Islands. We
maintain local offices throughout the United States.
Equitable Life is a wholly-owned subsidiary of The Equitable Companies
Incorporated (the "Holding Company"). The largest stockholder of the Holding
Company is AXA, a French insurance holding company. AXA beneficially owns
60.5% of the outstanding shares of common stock of the Holding Company as
well as $392.2 million stated value of its issued and outstanding Series E
Convertible Preferred Stock. Under its investment arrangements with Equitable
Life and the Holding Company, AXA is able to exercise significant influence
over the operations and capital structure of the Holding Company and its
subsidiaries, including Equitable Life. AXA is the principal holding company
for most of the companies in one of the largest insurance groups in Europe.
The majority of AXA's stock is controlled by a group of five French mutual
insurance companies.
Equitable Life, the Holding Company and their subsidiaries managed assets of
approximately $174.5 billion as of December 31, 1994, including pension
assets of approximately $128 billion. We are one of the nation's leading
pension fund managers. These assets are primarily managed for retirement and
annuity programs for businesses, tax-exempt organizations and individuals.
This broad customer base includes nearly half the Fortune 100, more than
39,000 small businesses, state and local retirement funds in more than half
the 50 states, approximately 225,000 employees of educational and non-profit
institutions, as well as nearly 370,000 individuals. Millions of Americans
are covered by Equitable Life's annuity, life, health and pension contracts.
THE MOMENTUM PROGRAM
(EMPLOYERS AND PLAN TRUSTEES)
The Momentum Program offers, pursuant to the terms of either the Master Trust
or the Pooled Trust, a group variable annuity contract as a funding vehicle
for Employers who sponsor qualified defined contribution plans. A defined
contribution plan is a retirement plan which provides for an individual
account for each plan participant and for benefits based solely on the
amounts contributed to such account and any income, expenses, gains and
losses. A qualified defined contribution plan is a defined contribution plan
that meets the requirements of Section 401(a) of the Code and applicable
Treasury regulations.
The Employer or Plan Trustee, as applicable, is responsible for determining
whether the Momentum Contract is a suitable funding vehicle for its defined
contribution plan and should, therefore, carefully read this prospectus and
the Momentum Contract before entering into the Contract.
As an Employer, subject to Equitable Life's underwriting requirements, you
can use the Momentum Program to adopt the Master Plan and Trust, in which
case the Master Trust will be the sole funding vehicle for your plan. The
Master Trust is funded solely by the Momentum Contract.
The Master Plan and Trust consists of Internal Revenue Service approved
master defined contribution plans all of which use the same basic plan
document. They include:
o a standardized and nonstandardized profit sharing plan (both with an
optional qualified cash or deferred arrangement pursuant to Section
401(k) of the Code); and
o a standardized and a nonstandardized defined contribution pension plan.
An Employer may adopt one or more of these plans. The plans are all
participant-directed, that is, the plan participants choose which Investment
Options to use for the investment of their plan accounts. The plans are
designed to meet the requirements of ERISA Section 404(c). See "Certain Rules
Applicable to Plans Designed to Comply With Section 404(c) of ERISA" in Part
8.
If you, as an Employer, adopt a Master Plan and Trust, you will have elected
our full service plan recordkeeping option. A description of such services
may be found under "Plan Recordkeeping Services" in Part 5. More information
about the Master Plan and Trust may be found in the SAI.
6
<PAGE>
If you, as an Employer, want to use your own individually-designed or a
prototype qualified defined contribution plan, you may adopt the Pooled Trust
as a funding vehicle. The Pooled Trust is for investment only and may be used
as your plan's only funding vehicle or in addition to other funding vehicles.
The same group variable annuity contract (i.e., the Momentum Contract) is
used under the Pooled Trust and the Master Plan and Trust. The Pooled Trust
is available for qualified defined contribution plans with either
participant-directed or trustee-directed investments. If you adopt the Pooled
Trust you will have elected our basic plan recordkeeping option. We may offer
to perform additional plan record keeping services for an additional charge.
Such services will be provided pursuant to the terms of a written service
agreement between us and the Plan Trustee.
United States Trust Company of New York currently acts as the trustee under
both the Pooled Trust and the Master Plan and Trust. The sole responsibility
of the United States Trust Company of New York is to serve as a party to the
Momentum Contract. It has no responsibility for the administration of the
Momentum Program or for any distributions or duties under the Momentum
Contract. In certain states the Momentum Contract will only be issued
directly to the Employer or Plan Trustee and, accordingly, the Master Plan
and Trust and the Pooled Trust will not be available. As a consequence,
Employers in those states will not be able to use our full service plan
recordkeeping option.
EMPLOYER'S RESPONSIBILITIES. If you adopt the Master Plan and Trust or if we
otherwise agree to provide the full service recordkeeping option pursuant to
a written service agreement, you, as the Employer and plan administrator,
will have certain responsibilities relating to the administration and
qualification of your plan, including:
o Sending us contributions at the proper time;
o Determining the amount of all contributions for each Participant;
o Maintaining all personnel records necessary for administering your plan;
o Determining who is eligible to receive benefits;
o Forwarding to us all the forms that employees are required to submit;
o Arranging to have all reports distributed to employees and former
employees if you elect to have them sent to you;
o Arranging to have our prospectuses distributed;
o Filing an annual information return for your plan with the Internal
Revenue Service, if required;
o Providing us with the information needed for running special
non-discrimination tests, if you have a 401(k) plan or if your plan
accepts post-tax employee or employer matching contributions and making
any corrections if you do not pass the test;
o Selecting interest rates and monitoring default procedures, if you elect
to offer Participant loans in your plan; and
o Meeting the requirements of ERISA Section 404(c) if you, as Employer,
intend for your plan to comply with that section.
Other responsibilities of the Employer relating to the administration and
qualification of your plan are indicated in the plan recordkeeping services
agreement which is required for all plans that elect the full service plan
recordkeeping option.
We will give you guidance and assistance in the performance of your
responsibilities. The ultimate responsibility, however, rests with you.
If you, as an Employer, use an individually-designed or a prototype plan, you
already have most of these responsibilities, which generally will not be
increased in any way by your adoption of the Pooled Trust.
ADOPTING THE MOMENTUM PROGRAM
(EMPLOYERS AND PLAN TRUSTEES)
In addition to other installation forms and agreements, to adopt the Master
Plan and Trust, you, as the Employer, must complete a participation agreement
and have it executed on behalf of your company. To adopt the Pooled Trust, a
Plan Trustee must execute a Pooled Trust participation agreement. Return your
completed participation agreement to the address specified on the form. You
should keep copies of all completed forms for your own records. In addition,
either you, as Employer, or the Plan Trustee, as applicable, must complete a
contract application in order to participate in the Momentum Contract.
Your Equitable Life Agent can help you complete the participation agreement
and the application for the Momentum Contract. We recommend that the
participation agreement be reviewed by your tax or benefits advisor.
THE MOMENTUM CONTRACT
The Momentum Program is funded through the Momentum Contract, a combination
fixed and variable group annuity contract issued by Equitable
7
<PAGE>
Life. The Momentum Contract governs the Investment Options that are offered
under the Momentum Program.
INVESTMENT OPTIONS
There are fourteen Investment Options available for Employers to fund their
plans: The Guaranteed Interest Account and thirteen Investment Funds (Money
Market, Intermediate Government Securities, Quality Bond, High Yield, Growth
& Income, Equity Index, Common Stock, Global, International, Aggressive Stock
and the Asset Allocation Series: Conservative Investors, Balanced and Growth
Investors). Each Investment Fund invests in shares of a corresponding
Portfolio of a mutual fund called The Hudson River Trust. The Hudson River
Trust prospectus (found in the second part of this booklet) describes the
investment objectives and policies of the available Portfolios. Employers or
Plan Trustees may select the number of Investment Options that they wish to
use to fund their plans. However, for Participants in an Employer plan with
Old Certificates, allocations can only be made to the Guaranteed Interest
Account, the Money Market, Balanced, Common Stock and Aggressive Stock Funds.
If your Employer or Plan Trustee does not select all fourteen Investment
Options under the Contract, your choices will be limited to the Investment
Options selected. If the Plan is intended to comply with the requirements of
ERISA Section 404(c), the Employer or the Plan Trustee is responsible for
making sure that the Investment Options chosen constitute a broad range of
investment choices as required by the Department of Labor (DOL) Section
404(c) regulation. See "Certain Rules Applicable to Plans Designed to Comply
with ERISA Section 404(c)" in Part 8.
CONTRIBUTIONS
Contributions may be made at any time and may be made only by the Employer or
Plan Trustee by either wire transfer or check. Participants should not send
contributions directly to Equitable Life. There is no minimum contribution.
Employers and Plan Trustees should send all contributions to Equitable Life's
Processing Office. All contributions made by check must be drawn on a bank in
the United States, in United States dollars and made payable to Equitable
Life. All checks are accepted subject to collection.
Contributions are credited as of the Transaction Date, if they are
accompanied by properly completed forms. Failure to use the proper form, or
to complete the form properly, may result in a delay in crediting
contributions.
Based upon your Employer's plan, either you or the Plan Trustee, or both,
must instruct us to allocate contributions to one or several Investment
Options that are available under your Employer's plan. Allocation percentages
must be in whole numbers and the sum must equal 100.
TRANSFERS
Based upon your Employer's plan, either you or the Plan Trustee may direct us
to transfer funds among the Investment Options. There is no charge for these
transfers. Depending upon the Investment Funds selected to fund your
Employer's plan, certain restrictions may apply to transfers out of the
Guaranteed Interest Account. However, for Old Certificates, we do not permit
transfers into the Money Market Fund from any of the other Investment
Options. See "Provisions of the Momentum Contract and Services We Provide:
Transfers" in Part 5.
AUTOMATIC TRANSFER PROGRAM
(INVESTMENT SIMPLIFIER)
We offer two automatic transfer options: the Fixed Dollar Option and the
Interest Sweep.
Under the Fixed Dollar Option you may elect to have a fixed dollar amount
transferred out of the Guaranteed Interest Account and into the Investment
Funds of your choosing (except Money Market for Old Certificates) on a
monthly basis.
Under the Interest Sweep, an amount of interest is transferred each month
from the Guaranteed Interest Account to the Investment Funds of your choice
(except Money Market for Old Certificates).
Details about these automatic transfer options are described under
"Investment Simplifier: Automatic Transfer Service" in Part 5.
SERVICES WE PROVIDE
Your Equitable Life Agent can help with any questions you may have about the
Momentum Program. Materials and seminars of an educational nature to assist
retirement planning needs of Participants can be arranged through your
Equitable Life Agent. Your Equitable Life Agent can also schedule retirement
planning workshops to facilitate plan enrollment periods. In addition, the
Momentum Program includes a number of services designed to keep Participants
and Employers informed.
8
<PAGE>
REGULAR PARTICIPANT REPORTS
We currently provide written confirmation of every financial transaction and
two additional reports each plan year:
o Annual statement of retirement account; and
o Semi-annual statement of retirement account.
We reserve the right to change the frequency of these reports.
TELEPHONE OPERATED
PLAN SUPPORT (TOPS) SYSTEM
TOPS is designed to help Participants get up-to-date information about their
accounts via touch-tone telephone. TOPS is only available if your Employer
has elected this service under your plan.
You can use TOPS to obtain current Accumulation Unit Values for the
Investment Funds. In addition, once you have completed the form necessary to
obtain a special code number and we have processed it, TOPS can tell you:
o The current interest rate for the Guaranteed Interest Account;
o Your current Retirement Account Value;
o Your current allocation percentages; and
o The number of units your account holds in the Investment Funds.
You may then also use TOPS to change your allocation percentages and transfer
money among the Investment Options. Procedures have been established by
Equitable Life that are considered to be reasonable and are designed to
confirm that instructions communicated by telephone are genuine. Such
procedures include requiring certain personal identification information
prior to acting on telephone instructions and providing written confirmation
of instructions communicated by telephone. If Equitable Life does not employ
reasonable procedures to confirm that instructions communicated by telephone
are genuine, it may be liable for any losses arising out of any action on its
part or any failure or omission to act as a result of its own negligence,
lack of good faith, or willful misconduct. In light of the procedures
established, Equitable Life will not be liable for following telephone
instructions that it reasonably believes to be genuine.
Local TOPS telephone numbers appear on the statements of retirement account.
TOPS is also available via a toll-free number. See "Toll-Free Telephone
Services" below. Your TOPS subscriber number is 66644. However, for Old
Certificates, the TOPS subscriber number is 66633. TOPS is available between
the hours of 8:00 a.m. and 9:00 p.m. Eastern Time, every Business Day.
Transfers made after 4:00 p.m. Eastern Time are not processed until the
following Business Day.
TOLL-FREE TELEPHONE SERVICES
General information from one of our consultants is available between the
hours of 9:00 a.m. and 5:00 p.m. Eastern Time, every Business Day, by calling
1-800-528-0204. TOPS is available as described above, by calling
1-800-821-7777.
PROCESSING OFFICE
FOR PAYMENTS (E.G., CONTRIBUTIONS, LOAN
PAYMENTS, ETC.) SENT BY REGULAR MAIL:
Equitable Life
Momentum Administrative Services
P.O. Box 13629
Newark, NJ 07188-0629
FOR PAYMENTS SENT BY EXPRESS MAIL:
First Chicago National Processing Center
300 Harmon Meadow Boulevard, 3rd Floor
Attention: Momentum 13629
Secaucus, NJ 07096
ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS) SENT BY REGULAR MAIL:
Momentum Administrative Services
P.O. Box 2919
New York, NY 10116
ALL OTHER COMMUNICATIONS SENT BY EXPRESS MAIL:
Momentum Administrative Services
200 Plaza Drive
Harmon Meadow
Secaucus, NJ 07096
DISTRIBUTION OPTIONS AND DEATH
BENEFIT
The Momentum Contract provides several different types of retirement benefits
to Participants or their beneficiaries, including lump sum payments and fixed
or variable annuity benefits. The Momentum Contract is an annuity contract,
even though you may elect to receive your benefits in another form. Subject
to the terms of your Employer's plan, payout options include:
o Lump sum or partial withdrawals;
o Payments for as long as you live;
o Payments for as long as both you and your joint annuitant live; or
9
<PAGE>
o Payments for a specific length of time (not longer than your life
expectancy or the joint life expectancy of you and your designated
beneficiary).
You may also be eligible for our "Automatic Minimum Withdrawal" feature,
which is designed to help you satisfy the Code's "minimum distribution
requirements." See "Tax Aspects of Distributions from a Plan--Distribution
Requirements and Limits" in "Part 8: Federal Tax and ERISA Matters."
If you die before distributions begin, the Momentum Contract provides a death
benefit. Your beneficiary will be paid the greater of your Retirement Account
Value or the minimum death benefit.
See "Distribution Options," "Annuity Distribution Options", "Death Benefits"
and "Your Beneficiary" in Part 5 and "Tax Aspects of Distributions from a
Plan" in Part 8.
WITHDRAWALS AND TERMINATION
The Code gives qualified plans special tax status in order to encourage
long-term retirement savings. As a deterrent to premature withdrawals
(generally prior to age 59 1/2 ), the Code provides certain restrictions on
and penalties for early withdrawals. These rules are outlined in "Part 8:
Federal Tax and ERISA Matters."
The Momentum Contract permits funds to be withdrawn from a Retirement Account
Value at any time. However, qualified plans, including the Master Plan and
Trust, generally place restrictions on when and under what circumstances
withdrawals can be made.
Subject to any restrictions in your Employer's plan, you may request a
withdrawal by filing the proper form with your Employer. This form is
available from your Agent or from our Processing Office.
The Contract also permits you, as Employer or Plan Trustee, to terminate your
plan's participation under the Contract at any time. Equitable Life has also
reserved the right to terminate the Contract if we learn that the Employer's
plan fails to qualify under the Code or if the Employer fails to provide the
Participant information necessary to administer the Contract.
Withdrawals or termination may result in a contingent withdrawal charge,
explained under "Deductions and Charges" below. In addition, a portion of
your Retirement Account Value may be restricted from withdrawal if you have
an Active Loan. See "Loans" in Part 5.
WITHDRAWALS FOR PLAN LOANS
The Momentum Contract permits your Employer to withdraw funds from your
Retirement Account Value, without incurring a contingent withdrawal charge,
in order to make a loan to you under your Employer's plan. See "Deductions
and Charges" below and in Part 6 for a description of charges associated with
plan loans.
A plan loan will be in default if the amount of any scheduled repayment is
not received by us within 90 days of its due date, or if the Participant dies
or participation under the Momentum Contract is terminated. We will then
treat the outstanding loan principal as a withdrawal subject to the
contingent withdrawal charge.
TAXES
Any earnings attributable to your Retirement Account Value will not be
included in taxable income until distributions are made. See "Part 8: Federal
Tax and ERISA Matters."
We may deduct a charge for state premium taxes and other applicable state and
local taxes. See "Applicable State and Local Taxes" in Part 6.
DEDUCTIONS AND CHARGES
Keep in mind that the Momentum Contract is designed for retirement savings;
certain charges will apply only if you make early withdrawals.
QUARTERLY ADMINISTRATIVE CHARGE
An administrative charge which is currently equal to $7.50 or, if less, .50%
of the total of your Retirement Account Value plus the amount of any Active
Loan is deducted from your Retirement Account Value on the last Business Day
of each calendar quarter. There will be no charge if the Retirement Account
Value plus the amount of any Active Loan is $25,000 or greater on the last
Business Day of a calendar quarter. We reserve the right to increase this
charge if our administrative costs increase. You, as Employer, have the
option of being billed directly for this administrative charge.
INVESTMENT FUND FEES
O SEPARATE ACCOUNT CHARGE
For the Intermediate Government Securities, Quality Bond, High Yield,
Growth & Income, Equity Index, Global, International, Aggressive Stock,
Conservative Investors and Growth Investors Funds, we make a daily
charge at an effective annual rate of 1.34% to cover death benefits,
mortality risks, expenses and expense risks. Similarly, for the Money
Market, Balanced and Common Stock Funds, we make a daily charge at an
10
<PAGE>
effective annual rate of 1.49%. The daily Accumulation Unit Value is
quoted net of these charges. See "Charges to Investment Funds for
Expenses" in Part 6.
O HUDSON RIVER TRUST CHARGES
Investment advisory fees and other expenses of The Hudson River Trust
are charged daily against The Hudson River Trust's assets. These charges
are reflected in the Portfolio's daily share price and in the daily
Accumulation Unit Value for the Investment Funds. See "Hudson River
Trust Charges to Portfolios" in Part 6.
O LIMITATION ON CERTAIN INVESTMENT FUND FEES
For the Money Market, Balanced, Common Stock and Aggressive Stock Funds,
the Separate Account charge and The Hudson River Trust charges described
below will reduce the amounts you have in the Investment Funds by an
annual rate which will not exceed 1.75% of those amounts. This fee is a
guaranteed maximum.
CONTINGENT WITHDRAWAL CHARGE
If your participation under the Momentum Contract is terminated, a partial
withdrawal is made, or an Active Loan defaults, your Retirement Account Value
may be subject to a contingent withdrawal charge that will be used to cover
sales and promotional expenses relating to the Momentum Contract.
This charge will not exceed 6% of the lesser of the amount withdrawn and the
amount of contributions made in the current and five prior Participation
Years. The amount withdrawn includes the amount you request and the
withdrawal charge. There are certain important exceptions and limitations
which eliminate or reduce the contingent withdrawal charge. See "Contingent
Withdrawal Charge" in Part 6.
PLAN LOAN CHARGES
A $25 set-up fee will be deducted from your Retirement Account Value at the
time a plan loan is made. Also, we will deduct a loan recordkeeping fee of $6
from your Retirement Account Value on the last Business Day of each calendar
quarter if there is an Active Loan on that date. We reserve the right to
increase these administrative charges if our costs increase. Your Employer
may elect to pay these fees. See "Plan Loan Charges" in Part 6.
CHARGE FOR PLAN RECORDKEEPING SERVICES
Equitable Life offers two plan recordkeeping options, one of which must be
elected for each plan. The annual charge for basic recordkeeping is $300 per
plan and is billed directly to the Employer. The full service recordkeeping
option is available only for plans that satisfy Equitable Life's underwriting
requirements. Fees for the full service recordkeeping option are defined in
the plan recordkeeping services agreement which is required for all plans
that elect this option. We reserve the right to increase these charges. See
"Charge for Plan Recordkeeping Services" in Part 6.
11
<PAGE>
FEE TABLE
The purpose of this Table is to assist Employers and Participants in
understanding the various costs and expenses associated with the Momentum
Contract. The Table reflects expenses of both the Separate Account and The
Hudson River Trust for the year ended December 31, 1994.
As explained in Part 4, the Guaranteed Interest Account is part of our
general account and is not a part of the Separate Account. Therefore, the
only expenses shown in the Table which apply to the Guaranteed Interest
Account are the contingent withdrawal charge and the administrative charge.
See also "Electing an Annuity Distribution Option" in Part 5 for a
description of fixed annuity charges.
Certain expenses and fees shown in this Table may not apply. To determine
whether a particular item in the Table applies (and the actual amount, if
any) consult the portion of the prospectus indicated in the notes to the
Table.
<TABLE>
<CAPTION>
<S> <C>
DESCRIPTION OF EXPENSE
- ---------------------------------------------
Contract Transaction Expenses
Sales Load on Purchases ..................... None
Transfer Fees ............................... None
Maximum Contingent Withdrawal Charge (1) ... 6%
$25 when loan is made $6 per
Plan Loan Charges (2) ....................... quarter
Annual Administrative Charge (3) ............. $30 Per Participant
Annual Basic Recordkeeping Charge (4) ....... $300 Per Plan
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE
MONEY GOVERNMENT QUALITY GROWTH & COMMON
MARKET SECURITIES BOND HIGH YIELD INCOME STOCK
---------- -------------- --------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
MAXIMUM SEPARATE ACCOUNT
AND HUDSON RIVER TRUST
ANNUAL EXPENSES (5) ................. 1.75% n/a n/a n/a n/a 1.75%
Separate Account Annual Expenses (6)
Mortality and Expense
Risk Fees .......................... 0.65% 0.50% 0.50% 0.50% 0.50% 0.65%
Other Expenses ..................... 0.84% 0.84% 0.84% 0.84% 0.84% 0.84%
---- ---- ---- ---- ---- ----
TOTAL SEPARATE ACCOUNT ANNUAL
EXPENSES ............................ 1.49%(5) 1.34% 1.34% 1.34% 1.34% 1.49%(5)
Hudson River Trust Annual Expenses(6)
Investment Advisory Fee ............. 0.40% 0.50% 0.55% 0.55% 0.55% 0.36%
Other Expenses ...................... 0.02% 0.06% 0.04% 0.06% 0.23% 0.02%
---- ---- ---- ---- ---- ----
TOTAL HUDSON RIVER TRUST
ANNUAL EXPENSES (7) ............... 0.42%(5) 0.56% 0.59% 0.61% 0.78% 0.38%(5)
==== ==== ==== ==== ==== ====
</TABLE>
- ------------
Notes:
(1) The maximum contingent withdrawal charge is 6% of the lesser of the
amount withdrawn and the contributions made in the current and five
prior Participation Years. Important exceptions and limitations
eliminate or reduce the contingent withdrawal charge. See "Contingent
Withdrawal Charge" in Part 6.
(2) Your Employer may elect to pay these charges and we have reserved the
right to increase them.
(3) The administrative charge is deducted quarterly and is currently $7.50
or, if less, .50% of your Retirement Account Value plus the amount of
any Active Loan. Your Employer may elect to pay this charge. This
charge is not assessed for any calendar quarter in which the Retirement
Account Value plus any Active Loan is $25,000 or more on the last
Business Day of that calendar quarter. We have reserved the right to
increase this charge. See "Quarterly Administrative Charge" in Part 6.
(4) This charge will be billed directly to the Employer if the basic plan
recordkeeping option has been elected. We reserve the right to increase
this charge upon 90 days written notice to the Employer or Plan
Trustee. See "Charge for Plan Recordkeeping Services" in Part 6.
(5) The amounts shown in the Table under "Separate Account Annual Expenses"
and "Hudson River Trust Annual Expenses," when added together, are not
permitted to exceed a total annual rate of 1.75% of the value of the
assets held in the Money Market, Balanced, Common Stock and Aggressive
Stock Funds. Without this expense limitation, total Separate Account
Annual Expenses plus Trust Annual Expenses for 1994 would have been
1.91%, 1.88%, 1.87%, and 1.83% for the Money Market, Balanced, Common
Stock and Aggressive Stock Funds, respectively. See "Limitation on
Charges" and "Charges to Investment Funds for Expenses" in Part 6.
(6) Separate Account and Hudson River Trust expenses are shown as a
percentage of each Investment Fund's or Portfolio's average value.
Separate Account Annual Expenses are guaranteed not to exceed a total
annual rate of 1.49% for the Money Market, Balanced and Common Stock
Funds and an annual rate of 1.34% for all other Investment Funds.
"Mortality and Expense Risks Fees" includes death benefit charges.
"Other Expenses" under "Separate Account Annual Expenses" includes
financial accounting expenses. See "Limitation on Charges," "Charges to
Investment Funds for Expenses" and "Hudson River Trust Charges to
Portfolios" in Part 6.
(7) Amounts shown for all Portfolios are for the year ended December 31,
1994. The amount shown for the Equity Index Portfolio, which was
established on March 1, 1994, is annualized. The amount shown for the
International Portfolio, which was established on April 3, 1995 is an
estimate. The investment advisory fee for each Portfolio may vary from
year to year depending upon the average daily net assets of the
respective Portfolio of The Hudson River Trust. The maximum investment
advisory fees, however, cannot be changed without a vote of that
Portfolio's shareholders. The other direct operating expenses will also
fluctuate from year to year depending on actual expenses. The Hudson
River Trust expenses are shown as a percentage of each Portfolio's
average value. See "Hudson River Trust Charges to Portfolios" in
Part 6.
12
<PAGE>
FEE TABLE (Continued)
<TABLE>
<CAPTION>
EQUITY
INDEX GLOBAL INTERNATIONAL
<S> <C> <C> <C>
MAXIMUM SEPARATE ACCOUNT
AND HUDSON RIVER TRUST
ANNUAL EXPENSES (5) ...... n/a n/a n/a
Separate Account Annual
Expenses (6)
Mortality and Expense
Risk Fees ............... 0.50% 0.50% 0.50%
Other Expenses ........... 0.84% 0.84% 0.84%
-------- -------- -------
TOTAL SEPARATE ACCOUNT
ANNUAL EXPENSES ....... 1.34% 1.34% 1.34%
Hudson River Trust Annual
Expenses(6)
Investment Advisory Fee 0.35% 0.54% 0.90%
Other Expenses .......... 0.14% 0.15% 0.41%
TOTAL HUDSON RIVER TRUST
ANNUAL EXPENSES (7) . 0.49% 0.69% 1.31%
======== ======== ==========
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
AGGRESSIVE CONSERVATIVE GROWTH
STOCK INVESTORS BALANCED INVESTORS
<S> <C> <C> <C> <C>
MAXIMUM SEPARATE ACCOUNT
AND HUDSON RIVER TRUST
ANNUAL EXPENSES (5) ...... 1.75% n/a 1.75 n/a
Separate Account Annual
Expenses (6)
Mortality and Expense
Risk Fees ............... 0.50% 0.50% 0.65% 0.50%
Other Expenses ........... 0.84% 0.84% 0.84% 0.84%
------------ -------------- ---------- -----------
TOTAL SEPARATE ACCOUNT
ANNUAL EXPENSES ....... 1.34%(5) 1.34% 1.49%(5) 1.34%
Hudson River Trust Annual
Expenses(6)
Investment Advisory Fee 0.47% 0.55% 0.37% 0.54%
Other Expenses .......... 0.02% 0.04% 0.02% 0.05%
TOTAL HUDSON RIVER TRUST
ANNUAL EXPENSES (7) . 0.49%(5) 0.59% 0.39%(5) 0.59%
============ ============== ========== ===========
</TABLE>
- ------------
Notes:
(1) The maximum contingent withdrawal charge is 6% of the lesser of the
amount withdrawn and the contributions made in the current and five
prior Participation Years. Important exceptions and limitations
eliminate or reduce the contingent withdrawal charge. See "Contingent
Withdrawal Charge" in Part 6.
(2) Your Employer may elect to pay these charges and we have reserved the
right to increase them.
(3) The administrative charge is deducted quarterly and is currently $7.50
or, if less, .50% of your Retirement Account Value plus the amount of
any Active Loan. Your Employer may elect to pay this charge. This
charge is not assessed for any calendar quarter in which the Retirement
Account Value plus any Active Loan is $25,000 or more on the last
Business Day of that calendar quarter. We have reserved the right to
increase this charge. See "Quarterly Administrative Charge" in Part 6.
(4) This charge will be billed directly to the Employer if the basic plan
recordkeeping option has been elected. We reserve the right to increase
this charge upon 90 days written notice to the Employer or Plan
Trustee. See "Charge for Plan Recordkeeping Services" in Part 6.
(5) The amounts shown in the Table under "Separate Account Annual Expenses"
and "Hudson River Trust Annual Expenses," when added together, are not
permitted to exceed a total annual rate of 1.75% of the value of the
assets held in the Money Market, Balanced, Common Stock and Aggressive
Stock Funds. Without this expense limitation, total Separate Account
Annual Expenses plus Trust Annual Expenses for 1994 would have been
1.91%, 1.88%, 1.87%, and 1.83% for the Money Market, Balanced, Common
Stock and Aggressive Stock Funds, respectively. See "Limitation on
Charges" and "Charges to Investment Funds for Expenses" in Part 6.
(6) Separate Account and Hudson River Trust expenses are shown as a
percentage of each Investment Fund's or Portfolio's average value.
Separate Account Annual Expenses are guaranteed not to exceed a total
annual rate of 1.49% for the Money Market, Balanced and Common Stock
Funds and an annual rate of 1.34% for all other Investment Funds.
"Mortality and Expense Risks Fees" includes death benefit charges.
"Other Expenses" under "Separate Account Annual Expenses" includes
financial accounting expenses. See "Limitation on Charges," "Charges to
Investment Funds for Expenses" and "Hudson River Trust Charges to
Portfolios" in Part 6.
(7) Amounts shown for all Portfolios are for the year ended December 31,
1994. The amount shown for the Equity Index Portfolio, which was
established on March 1, 1994, is annualized. The amount shown for the
International Portfolio, which was established on April 3, 1995 is an
estimate. The investment advisory fee for each Portfolio may vary from
year to year depending upon the average daily net assets of the
respective Portfolio of The Hudson River Trust. The maximum investment
advisory fees, however, cannot be changed without a vote of that
Portfolio's shareholders. The other direct operating expenses will also
fluctuate from year to year depending on actual expenses. The Hudson
River Trust expenses are shown as a percentage of each Portfolio's
average value. See "Hudson River Trust Charges to Portfolios" in
Part 6.
13
<PAGE>
EXAMPLES
The examples below show the expenses that a hypothetical Participant would
pay in the two situations noted. The examples assume a single contribution of
$1,000 invested in one of the Investment Funds listed, a 5% annual return on
assets and that the contingent withdrawal charge is not waived.(1) For
purposes of these examples, the annual administrative charge is computed by
reference to the actual aggregate annual administrative charges as a
percentage of the total assets held under the contracts. These examples do
not reflect the $300 annual charge for basic recordkeeping services, which is
billed directly to the Employer.
These examples should not be considered a representation of past or future
expenses for each Investment Funds or Portfolio. Actual expenses may be
greater or less than those shown.(2)
If your participation under the Momentum Contract terminates at the end of
each period shown, the maximum expense would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------- --------- --------- ----------
<S> <C> <C> <C> <C>
Money Market 75.75 121.22 166.89 230.71
Intermediate Government
Securities 77.24 125.70 174.87 246.93
Quality Bond 77.54 126.60 176.46 250.15
High Yield 77.73 127.20 177.52 252.28
Growth & Income 79.42 132.26 186.49 270.28
Equity Index 76.54 123.61 171.15 239.39
Common Stock 75.75 121.22 166.89 230.71
Global 78.53 129.58 181.75 260.79
International 84.67 147.92 213.77 324.44
Aggressive Stock 75.75 121.22 166.89 230.71
Asset Allocation Series:
Conservative Investors 77.54 126.60 176.46 250.15
Balanced 75.75 121.22 166.89 230.71
Growth Investors 77.54 126.60 176.46 250.15
</TABLE>
If your participation under the Momentum Contract does not terminate at the
end of each period shown, the maximum expense would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------- --------- --------- ----------
<S> <C> <C> <C> <C>
Money Market 20.14 62.24 106.89 230.71
Intermediate Government
Securities 21.71 66.99 114.87 246.93
Quality Bond 22.02 67.94 116.46 250.15
High Yield 22.23 68.57 117.52 252.28
Growth & Income 24.02 73.94 126.49 270.28
Equity Index 20.98 64.77 111.15 239.39
Common Stock 20.14 62.24 106.89 230.71
Global 23.07 71.10 121.75 260.79
International 29.57 90.54 154.02 324.44
Aggressive Stock 20.14 62.24 106.89 230.71
Asset Allocation Series:
Conservative Investors 22.02 67.94 116.46 250.15
Balanced 20.14 62.24 106.89 230.71
Growth Investors 22.02 67.94 116.46 250.15
</TABLE>
- ------------
(1) The amount you have accumulated could not be paid to you in the form of
an annuity at the end of any of the periods shown in the examples. The
minimum amount applied to purchase an annuity must be $3,500. See
"Electing an Annuity Distribution Option" in Part 5. In some cases,
charges for state premium or other applicable state or local taxes will
be deducted from the amount applied, if applicable.
(2) Actual administrative charges may be less if you, as Employer, are
billed directly for the quarterly administrative charge or if the
charge does not apply to a Participant because the Retirement Account
Value plus the amount of any Active Loan is at least $25,000 on the
last Business Day of a calendar quarter.
14
<PAGE>
PART 2: EQUITABLE LIFE'S SEPARATE ACCOUNT AND
ITS INVESTMENT FUNDS
SEPARATE ACCOUNT A
Separate Account A is organized as a unit investment trust, a type of
investment company, and is registered with the SEC under the Investment
Company Act of 1940 (1940 ACT). This registration does not involve any
supervision by the SEC of the management or investment policies of the
Separate Account. The Separate Account has several Investment Funds, each of
which invests in shares of a corresponding Portfolio of The Hudson River
Trust. You may allocate some or all of your contributions among the available
Investment Funds. Because amounts allocated to the Investment Funds are
invested in a mutual fund, investment return and principal will fluctuate and
Accumulation Units may be worth more or less than the original cost when
redeemed.
As a separate account under the New York Insurance Law, the portion of the
Separate Account's assets equal to the reserves and other liabilities
relating to the Momentum Contract will not be chargeable with liabilities
arising out of any other business we may conduct. Accordingly, income, gains
or losses, whether or not realized, from assets of the Separate Account are
credited to or charged against the Separate Account without regard to our
other income, gains or losses. We are the issuer of the Momentum Contract,
and the obligations set forth in the Momentum Contract (other than those of
Employers or Plan Trustees) are our obligations.
In addition to contributions made under the Momentum Contract, we may
allocate to the Separate Account monies received under other annuity
contracts, certificates or agreements. Owners of all such certificates,
contracts or agreements will participate in the Separate Account in
proportion to the amounts they have in the Investment Funds that relate to
their contracts, certificates or agreements. We may retain in the Separate
Account assets that are in excess of the reserves and other liabilities
relating to the Momentum Contract or to other contracts, certificates or
agreements, or we may transfer them to our general account.
We reserve the right, subject to compliance with applicable law, including
approval of Participants and Plan Trustees if required, (1) to add new
Investment Funds (or sub-divisions of Investment Funds) to, or remove
Investment Funds (or sub-divisions of Investment Funds) from, the Separate
Account, (2) to combine any two or more Investment Funds or sub-divisions
thereof, (3) to transfer assets determined by us to be the proportionate
share of the class of contracts to which the Momentum Contract belongs from
any of the Investment Funds to another Investment Fund, (4) to operate the
Separate Account or any Investment Fund as a management investment company
under the 1940 Act (which may be directed by a committee which may be
composed of a majority of persons who are "interested persons" of Equitable
Life under the 1940 Act, which committee may be discharged by us at any time)
or in any other form permitted by law, including a form that allows us to
make direct investments, (5) to deregister the Separate Account under the
1940 Act, (6) to cause one or more Investment Funds to invest in a mutual
fund other than or in addition to The Hudson River Trust, (7) to terminate
any employer or plan trustee agreement pursuant to its terms and (8) to
restrict or eliminate any voting rights of Participants, Plan Trustees or
other people who have voting rights that affect the Separate Account.
If any changes are made that result in a material change in the underlying
investment policy of an Investment Fund, we will notify the appropriate
persons as required by law. We may make other changes that do not reduce any
Cash Value, annuity benefit, Retirement Account Value or other accrued rights
or benefits.
THE HUDSON RIVER TRUST
The Hudson River Trust is an open-end, diversified management investment
company, more commonly called a mutual fund. As a "series" type of mutual
fund, it issues several different series of stock, each of which relates to a
different Portfolio of The Hudson River Trust. The Hudson River Trust
commenced operations in January 1976 with a predecessor of its Common Stock
Portfolio. The Hudson River Trust does not impose a sales charge or "load"
for buying and selling its shares. All dividend distributions to The Hudson
River Trust are reinvested in full and fractional shares of the Portfolio to
which they relate.
More detailed information about The Hudson River Trust, its investment
objectives, policies, restric-
15
<PAGE>
tions, risks, expenses and other aspects of its operations, appears in its
prospectus which is attached, or in its statement of additional information.
THE HUDSON RIVER TRUST'S INVESTMENT ADVISER
The Hudson River Trust is advised by Alliance Capital Management LP
(Alliance), which is registered with the SEC as an investment adviser under
the Investment Advisers Act of 1940. Alliance, a publicly traded limited
partnership, is indirectly majority owned by Equitable. On December 31, 1994,
Alliance was managing over $121 billion in assets. Alliance acts as
investment adviser to various separate accounts and general accounts of
Equitable Life and other affiliated insurance companies. Alliance also
provides management and consulting services to mutual funds, endowments
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organization.
Alliance's record as an investment manager is based, in part, on its ability
to provide a diversity of investment services to domestic, international and
global markets. Alliance prides itself on its ability to attract and retain a
quality, professional work force. Alliance employs 179 investment
professionals, including 81 research analysts. Portfolio managers have
average investment experience of more than 16 years.
Alliance's main office is located at 1345 Avenue of the Americas, New York,
New York 10105.
INVESTMENT POLICIES AND OBJECTIVES OF THE HUDSON RIVER TRUST'S PORTFOLIOS
Each Portfolio has a different investment objective which it tries to achieve
by following separate investment policies. The policies and objectives of
each Portfolio will affect its return and its risks. There is no guarantee
that these objectives will be achieved.
The policies and objectives of The Hudson River Trust's Portfolios available
under the Momentum Contract are as follows:
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT POLICY OBJECTIVE
- -------------------- ---------------------------------------------- ---------------------------------------------
<S> <C> <C>
Money Market ........ Primarily high quality short-term money market High level of current income while preserving
instruments assets and maintaining liquidity
Intermediate .........Primarily debt Securities issued or guaranteed High current income consistent with relative
Government by the U.S. Government, its agencies and stability of principal
Securities instrumentalities. Each investment will have
a final maturity of not more than 10 years or
a duration not exceeding that of a 10-year
Treasury note
Quality Bond ........ Primarily investment grade fixed income High current income consistent with
securities preservation of capital
High Yield .......... Primarily a diversified mix of high yield, High return by maximizing current income and,
fixed-income securities involving greater to the extent consistent with that
volatility of price and risk of principal and objective, capital appreciation
income than high quality fixed-income
securities. The medium and lower quality debt
securities in which the Portfolio may invest
are known as "junk bonds"
Growth & Income...... Primarily income producing common stocks and High total return through a combination of
securities convertible into common stocks current income and capital appreciation
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT POLICY OBJECTIVE
- -------------------- ---------------------------------------------- ---------------------------------------------
<S> <C> <C>
Equity Index ........ Selected securities in the S&P 500 Index (the Total return performance (before trust
"Index") which the adviser believes will, in expenses) that approximates the investment
the aggregate, approximate the performance performance of the Index (including
results of the Index reinvestment of dividends) at risk level
consistent with that of the Index
Common Stock ........ Primarily common stock and other equity-type Long-term growth of capital and increasing
instruments income
Global .............. Primarily equity securities of non-United Long-term growth of capital
States as well as United States companies
International* ...... Primarily equity securities selected Long-term growth of capital
principally to permit participation in
non-United States companies with prospects
for growth
Aggressive Stock ... Primarily common stocks and other equity-type Long-term growth of capital
securities issued by medium and other smaller
size companies with strong growth potential
Asset Allocation Series:
Conservative ........ Diversified mix of publicly-traded, High total return without, in the adviser's
Investors fixed-income and equity securities; asset mix opinion, undue risk to principal
and security selection are primarily based
upon factors expected to reduce risk. The
Portfolio is generally expected to hold
approximately 70% of its assets in fixed
income securities and 30% in equity
securities.
Balanced ............ Primarily common stocks, publicly-traded debt High return through a combination of current
securities and high quality money market income and capital appreciation
instruments. The portfolio is generally
expected to hold 50% of its assets in equity
securities and 50% in fixed income
securities.
Growth............... Diversified mix of publicly-traded, High total return consistent with the
Investors fixed-income and equity securities; asset mix adviser's determination of reasonable risk
and security selection based upon factors
expected to increase possibilty of high
long-term return. The Portfolio is generally
expected to hold approximately 70% of its
assets in equity securities and 30% in fixed
income securities. <FN>
</TABLE>
- ------------
* The International Portfolio was established on April 3, 1995 and will
become available under the Momentum Program on or about September 1, 1995.
17
<PAGE>
PART 3: INVESTMENT PERFORMANCE
In order to help show how the performance of the Investment Funds can affect
Retirement Account Values, the following tables provide you with information
on the investment performance of the Investment Funds. See "Part 4: The
Guaranteed Interest Account" for information on the Guaranteed Interest
Account, which is part of Equitable Life's general account. The following
pages compare annualized rates of return for each Investment Fund along with
appropriate benchmarks.
HOW PERFORMANCE DATA ARE CALCULATED
The annualized rates of return are calculated in the same manner as the
average annual total returns described under "Standardized Computation of
Performance" which follows, except that the quarterly administrative charge
and the contingent withdrawal charge are not reflected in the following
performance tables. The plan recordkeeping fee is not reflected in either the
annualized rates of return or the annual total returns shown under
"Standardized Computation of Performance" because your Employer is billed
directly for this fee (although it may be deducted from Retirement Account
Values if your Employer does not pay it). These additional charges would
effectively reduce the rates of return presented.
Performance data of the Money Market, Balanced, Common Stock and Aggressive
Stock Funds shown in this section include periods prior to December 18, 1987,
when four open-end management separate accounts (the "predecessor separate
accounts") were reorganized into the Separate Account in unit investment
trust form. The "since inception" figures are based on the date of inception
of the predecessor separate accounts. For a discussion of the reorganization
of the predecessor separate accounts into the Separate Account, see "Part
3--The Reorganization" in the SAI. The performance data shown from December
18, 1987 through September 5, 1991 reflects the investment results of The
Equitable Trust, a mutual fund, which was replaced by The Hudson River Trust
on September 6, 1991. The investment objectives and policies of the
Portfolios are substantially similar to those of the corresponding portfolios
of The Equitable Trust. At all times, Equitable Life and/or one of its
subsidiaries has served as the investment adviser to the predecessor separate
accounts, The Equitable Trust and The Hudson River Trust. Performance data
for the remaining Investment Funds reflect (i) the investment results of the
corresponding Portfolios of the Trust from the date of inception of those
Portfolios, (ii) the actual investment advisory fee and direct operating
expenses of the relevant Portfolio and (iii) the Separate Account asset
charges of 1.34% relating to the Contracts.
Because amounts allocated to the Investment Funds are invested in a mutual
fund, investment return and principal will fluctuate and Accumulation Units
may be worth more or less than the original cost when redeemed. The results
shown are not an estimate or guarantee of future investment performance, and
do not reflect the actual experience of amounts invested by a particular
Participant.
BENCHMARKS
Market indices are not subject to any charges for investment advisory fees
typically associated with a managed portfolio. Comparisons with these
benchmarks, therefore, are of limited use. We include them because they are
widely known and may help you to understand the universe of securities from
which each Portfolio is likely to select its holdings.
FUND INCEPTION DATES AND COMPARATIVE
BENCHMARKS
MONEY MARKET: May 11, 1982; Salomon Brothers Three-Month T-Bill Index
(3-Month T-Bill).
INTERMEDIATE GOVERNMENT SECURITIES: April 1, 1991; Lehman Intermediate
Government Bond Index (Lehman Intermediate Government).
QUALITY BOND: October 1, 1993; Lehman Aggregate Bond Index (Lehman
Aggregate).
HIGH YIELD: January 2, 1987; Merrill Lynch High Yield Master Index (Master
High Yield).
GROWTH & INCOME: October 1, 1993; 75% Standard & Poor's 500 Index (including
reinvested dividends) (S&P 500) and 25% Value Line Convertible Index (75% S&P
500/25% Value Line Conv.).
EQUITY INDEX: March 1, 1994; S&P 500.
COMMON STOCK: August 1, 1968; S&P 500.
GLOBAL: August 31, 1987; Morgan Stanley Capital International World Index
(MSCI World).
INTERNATIONAL: April 3, 1995; Morgan Stanley Capital International Europe,
Australia, Far East Index
18
<PAGE>
(MSCI EAFE) to be offered under the Momentum Program on or about September 1,
1995.
AGGRESSIVE STOCK: May 1, 1984; 50% S&P 500 and 50% National Association of
Securities Dealers Automated Quotation System Composite (50% S&P 500/50%
NASDAQ).
CONSERVATIVE INVESTORS: October 2, 1989; 70% Lehman Treasury Bond Composite
Index and 30% S&P 500 (70% Lehman Treas./30% S&P 500).
BALANCED: May 1, 1984; 50% S&P 500 and 50% Lehman Government/Corporate Bond
Index (50% S&P 500/50% Lehman Corp.).
GROWTH INVESTORS: October 2, 1989; 30% Lehman Government/Corporate Bond Index
and 70% S&P 500 (30% Lehman Treas./70% S&P 500).
The Lipper Variable Insurance Products Performance Analysis Survey (Lipper)
records the performance of a large group of variable annuity and variable
life products, including managed separate accounts of insurance companies.
According to Lipper Analytical Services, Inc., the data are presented net of
investment management fees, direct operating and asset-based charges
applicable under insurance policies or annuity contracts. Lipper data provide
a more accurate picture than market indices of Momentum performance relative
to other annuity products.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends. Cumulative rates of
return reflect performance over a stated period of time. Annualized rates of
return represent the annual rate of growth that would have produced the same
cumulative return, if performance had been constant over the entire period.
19
<PAGE>
ANNUALIZED RATES OF RETURN FOR PERIODS ENDING DECEMBER 31, 1994:
<TABLE>
<CAPTION>
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION
-------- --------- --------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET 2.63% 2.14% 3.57% 4.87% --% 5.76%
Lipper VA Money Market 2.62 2.15 3.56 4.94 -- 5.94
3-Month T-Bill 4.22 3.63 4.90 5.98 -- 6.75
INTERMEDIATE GOVERNMENT
SECURITIES (5.65) 2.36 -- -- -- 4.74
Lipper VA U.S. Government (4.94) 2.87 -- -- -- 5.57
Lehman Intermediate Government (1.75) 4.36 -- -- -- 6.55
QUALITY BOND (6.37) -- -- -- -- (5.77)
Lipper VA Corporate Bond A-Rated (5.64) -- -- -- -- (4.82)
Lehman Aggregate (2.92) -- -- -- -- (2.30)
HIGH YIELD (4.09) 8.89 9.12 -- -- 7.59
Lipper VA High Yield (4.23) 9.45 10.59 -- -- 8.07
Master High Yield (1.16) 11.03 11.99 -- -- 10.24
GROWTH & INCOME (1.90) -- -- -- -- (1.99)
Lipper VA Growth & Income (1.62) -- -- -- -- 0.03
75% S&P 500/25% Value Line Conv. 0.01 -- -- -- -- 1.84
EQUITY INDEX* -- -- -- -- -- (0.04)
Lipper VA S&P Index Funds* -- -- -- -- -- (0.54)
S&P 500* -- -- -- -- -- 1.28
COMMON STOCK (3.48) 6.55 8.31 13.83 13.53 10.00
Lipper VA Growth (2.42) 5.10 7.90 11.81 N/A N/A
S&P 500 1.32 6.25 8.68 14.38 14.58 10.28
GLOBAL 3.82 9.93 9.66 -- -- 8.92
Lipper VA Global (2.40) 7.58 4.57 -- -- 3.52
MSCI World 5.08 6.85 3.67 -- -- 4.97
AGGRESSIVE STOCK (5.03) 1.54 15.38 17.55 -- 16.90
Lipper VA Small Company Growth (2.68) 20.63 12.56 17.55 -- 16.92
50% S&P 500/50% NASDAQ (0.94) 7.46 9.65 13.14 -- 12.71
THE ASSET ALLOCATION SERIES:
CONSERVATIVE INVESTORS (5.38) 2.57 6.02 -- -- 6.28
Lipper VA Income (3.13) 5.30 7.67 -- -- 7.77
70% Lehman Treas./30% S&P 500 (1.97) 5.14 7.85 -- -- 8.11
BALANCED (9.27) (1.23) 5.86 9.45 -- 9.44
Lipper VA Flexible Portfolio (3.65) 4.46 7.01 10.11 -- 9.97
50% S&P 500/50% Lehman Corp. (1.09) 5.55 8.20 12.31 -- 12.55
GROWTH INVESTORS (4.44) 4.01 12.52 -- -- 12.67
Lipper VA Flexible Portfolio (3.65) 4.46 7.01 -- -- 6.86
30% Lehman Corp./70% S&P 500 (0.13) 5.83 8.39 -- -- 8.49
<FN>
- ------------
* Unannualized
</TABLE>
20
<PAGE>
CUMULATIVE RATES OF RETURN FOR PERIODS ENDING DECEMBER 31, 1994:
<TABLE>
<CAPTION>
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION
-------- --------- --------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET 2.63% 6.55% 19.16% 60.85% --% 102.51%
Lipper Money Market 2.62 6.60 19.12 62.02 -- 107.76
3-Month T-Bill 4.22 11.29 26.99 78.68 -- 128.84
INTERMEDIATE GOVERNMENT
SECURITIES (5.65) 7.23 -- -- -- 18.97
Lipper U.S. Government (4.94) 8.85 -- -- -- 22.56
Lehman Intermediate Government (1.75) 13.65 -- -- -- 26.89
QUALITY BOND (6.37) -- -- -- -- (7.15)
Lipper Corporate Bond A-Rated (5.64) -- -- -- -- (5.99)
Lehman Aggregate (2.92) -- -- -- -- (2.86)
HIGH YIELD (4.09) 29.13 54.72 -- -- 79.44
Lipper High Yield (4.23) 31.12 65.43 -- -- 86.07
Master High Yield (1.16) 36.87 76.16 -- -- 118.08
GROWTH & INCOME (1.90) -- -- -- -- (2.48)
Lipper Growth & Income (1.62) -- -- -- -- 0.04
75% S&P 500/25% Value Line Conv. 0.01 -- -- -- -- 2.30
EQUITY INDEX -- -- -- -- -- (0.04)
Lipper VA S&P Index Funds -- -- -- -- -- (0.54)
S&P 500 -- -- -- -- -- 1.28
COMMON STOCK (3.48) 20.98 49.07 265.35 1,164.73 1,139.51
Lipper Growth (2.42) 16.11 46.28 205.37 961.72 N/A
S&P 500 1.32 19.95 51.64 283.20 1,421.23 1,229.62
GLOBAL 3.82 32.85 58.59 -- -- 87.27
Lipper Global (2.40) 24.49 25.04 -- -- 29.26
MSCI World 5.08 21.99 19.74 -- -- 42.79
AGGRESSIVE STOCK (5.03) 4.69 104.46 403.83 -- 428.81
Lipper Small Company Growth (2.68) 75.55 80.72 403.83 -- 429.61
50% S&P 500/50% NASDAQ (0.94) 24.10 58.49 243.61 -- 258.78
THE ASSET ALLOCATION SERIES:
CONSERVATIVE INVESTORS (5.38) 7.92 33.96 -- -- 37.64
Lipper Income (3.13) 16.75 44.72 -- -- 48.12
70% Lehman Treas./30% S&P 500 (1.97) 16.24 45.93 -- -- 50.68
BALANCED (9.27) (3.64) 32.96 146.79 -- 161.78
Lipper Flexible Portfolio (3.65) 14.00 40.35 162.01 -- 175.72
50% S&P 500/50% Lehman Corp. (1.09) 17.61 48.29 219.37 -- 253.31
GROWTH INVESTORS (4.44) 12.50 80.38 -- -- 86.97
Lipper Flexible Portfolio (3.65) 14.00 40.35 -- -- 41.66
30% Lehman Corp./70% S&P 500 (0.13) 18.54 49.63 -- -- 53.39
</TABLE>
YEAR-BY-YEAR RATES OF RETURN
<TABLE>
<CAPTION>
INTERMEDIATE
MONEY GOVERNMENT QUALITY
MARKET SECURITIES BOND
-------- -------------- ---------
<S> <C> <C> <C>
1984 9.47% --% --%
1985 6.74 -- --
1986 5.27 -- --
1987 5.27 -- --
1988 5.94 -- --
1989 7.72 -- --
1990 6.82 -- --
1991 4.69 10.94* --
1992 2.19 4.18 --
1993 1.59 9.10 -0.84*
1994 2.63 -5.65 -6.37
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
HIGH GROWTH & EQUITY COMMON AGGRESSIVE CONSERVATIVE GROWTH
YIELD INCOME INDEX STOCK GLOBAL STOCK INVESTORS BALANCED INVESTORS
------- ---------- -------- -------- --------- ------------ -------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1984 --% --% --% -3.34% --% 4.96%* --% 6.07%* --%
1985 -- -- -- 32.58 -- 43.21 -- 23.88 --
1986 -- -- -- 15.49 -- 21.95 -- 11.77 --
1987 3.28* -- -- 6.14 -13.67* -1.00 -- -5.02 --
1988 8.26 -- -- 21.55 9.39 -0.30 -- 13.27 --
1989 3.72 -- -- 24.07 25.04 42.95 2.75* 24.60 3.65*
1990 -2.42 -- -- -9.27 -7.32 5.76 4.98 -1.46 9.13
1991 22.79 -- -- 35.81 28.81 84.65 18.24 40.02 46.92
1992 10.81 -- -- 1.82 -1.85 -4.37 4.37 -4.15 3.53
1993 21.50 -0.59* -- 23.11 30.36 15.28 9.28 10.81 13.72
1994 -4.09 -1.90 -0.04* -3.48 3.82 -5.03 -5.38 -9.27 -4.44
<FN>
- ------------
* Unannualized
</TABLE>
21
<PAGE>
STANDARDIZED COMPUTATION OF
PERFORMANCE
The performance data in the following tables, which are prepared in a manner
prescribed by the SEC for use when we advertise the performance of the
Separate Account, illustrate the average annual total return of the
Investment Funds over the periods shown, assuming a single initial
contribution of $1,000 and termination of participation under the Momentum
Contract at the end of each period under circumstances in which the
contingent withdrawal charge applies. The values shown are also net of all
other charges and expenses assessed against the Investment Funds. An
Investment Fund's average annual total return is the annual rate of growth of
the Investment Fund that would be necessary to achieve the ending value of a
contribution kept in the Investment Fund for the period specified.
For purposes of the tables below, deduction of a quarterly administrative
charge equal to $7.50 is assumed, even though this charge does not apply if
the Retirement Account Value plus the amount of any Active Loan is at least
$25,000 as of the end of the quarter. Each calculation further assumes that
the $1,000 contribution was allocated to only one Investment Fund, no
transfers or additional contributions were made, no amounts were allocated to
any other Investment Fund and the Participant has not taken any loans.
In order to calculate the standardized performance information, we divide the
termination value (defined below) as of December 31, 1994 by the $1,000
contribution made at the beginning of each period illustrated. The result of
that calculation is the total growth rate for the period. Then we annualize
that growth rate to obtain the average annual percentage increase (decrease)
during the period shown. When we "annualize," we assume that a single rate of
return applied each year during the period will produce the ending value,
taking into account the effect of compounding. "Termination value" means the
Retirement Account Value less the contingent withdrawal charge, the quarterly
administrative charge and all other charges and expenses which are applied
against Separate Account assets. The contingent withdrawal charge will never
be greater than 6%. See "Part 6: Deductions and Charges".
<TABLE>
<CAPTION>
GROWTH OF $1,000 FOR PARTICIPANT TERMINATED ON DECEMBER 31, 1994
LENGTH OF INVESTMENT PERIOD
-------------------------------------------------------------
INVESTMENT THREE SINCE
FUND ONE YEAR YEARS FIVE YEARS TEN YEARS INCEPTION*
- -------------- --------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Money Market $951.64 $ 949.14 $1,019.75 $1,316.25 --
Intermediate
Government
Securities 874.82 955.21 -- -- $1,043.94
Quality Bond 868.19 -- -- -- 856.58
High Yield 889.34 1,155.88 1,339.61 -- 1,530.84
Growth &
Income 909.57 -- -- -- 899.69
Equity Index -- -- -- -- 926.80
Common Stock 894.94 1,079.19 1,288.48 3,164.95 --
Global 962.69 1,190.90 1,374.59 -- 1,614.96
Aggressive
Stock 880.57 932.57 1,810.42 4,434.81 --
Asset
Allocation
Series:
Conservative
Investors 877.34 961.33 1,151.84 -- 1,178.92
Balanced 841.22 858.37 1,142.76 2,071.55 --
Growth
Investors 886.05 1,002.15 1,579.97 -- 1,634.15
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN FOR PARTICIPANT TERMINATED ON DECEMBER 31, 1994
LENGTH OF INVESTMENT PERIOD
--------------------------------------------------
INVESTMENT THREE FIVE TEN SINCE
FUND ONE YEAR YEARS YEARS YEARS INCEPTION*
- -------------- -------- -------- ------- ------- ------------
<S> <C> <C> <C> <C> <C>
Money Market -4.84% -1.72% 0.39% 2.79% --
Intermediate
Government
Securities -12.52 -1.52 -- -- 1.15%
Quality Bond -13.18 -- -- -- -11.66
High Yield -11.07 4.95 6.02 -- 5.47
Growth &
Income -9.04 -- -- -- -8.12
Equity Index -- -- -- -- -7.32
Common Stock -10.51 2.57 5.20 12.21 --
Global -3.73 6.00 6.57 -- 6.74
Aggressive
Stock -11.94 -2.30 12.60 16.06 --
Asset
Allocation
Series:
Conservative
Investors -12.27 -1.31 2.87 -- 3.19
Balanced -15.88 -4.96 2.70 7.55 --
Growth
Investors -11.39 0.07 9.58 -- 9.81
<FN>
- ------------
* The Inception dates are as follows: Money Market (May 11, 1982);
Intermediate Government Securities (April 1, 1991); Quality Bond (October 1,
1993); High Yield (January 2, 1987); Balanced (May 1, 1984); Growth & Income
(October 1, 1993); Equity Index (March 1, 1994); Common Stock (August 1,
1968); Global (August 31, 1987); Aggressive Stock (May 1, 1984); Conservative
Investors (October 2, 1989); and Growth Investors (October 2, 1989). The
"Since Inception" number for the Equity Index Fund is unannualized.
</TABLE>
COMMUNICATING PERFORMANCE DATA
In reports or other communications or in advertising material, we may
describe general economic and market conditions affecting the Separate
Account and The Hudson River Trust and may compare the performance of the
Investment Funds with (1) that of other insurance company separate accounts
or mutual funds included in the rankings prepared by Lipper Analytical
Services, Inc., Morningstar, Inc., VARDS or similar investment services that
monitor
22
<PAGE>
the performance of insurance company separate accounts or mutual funds, (2)
other appropriate indices of investment securities and averages for peer
universes of funds which are described in the SAI, or (3) data developed by
us derived from such indices or averages. The Morningstar Variable
Annuity/Life Report consists of nearly 700 variable life and annuity funds,
all of which report their data net of investment management fees, direct
operating expenses and separate account charges. VARDS is a monthly reporting
service that monitors approximately 760 variable life and variable annuity
funds on performance and account information. Advertisements or other
communications furnished to present or prospective Participants may also
include evaluations of an Investment Fund or Portfolio by financial
publications that are nationally recognized such as Barron's, Morningstar's
Variable Annuity Source Book, Business Week, Chicago Tribune, Forbes,
Fortune, Institutional Investor, Investment Adviser, Investment Dealer's
Digest, Investment Management Weekly, Los Angeles Times, Money, Money
Management Letter, Kiplinger's Personal Finance, Financial Planning, National
Underwriter, Pension & Investments, USA Today, Investor's Daily, The New York
Times and The Wall Street Journal.
23
<PAGE>
PART 4: THE GUARANTEED INTEREST ACCOUNT
You may allocate some or all of your Retirement Account Value to the
Guaranteed Interest Account which is part of our general account. The general
account supports all of our insurance and annuity guarantees, as well as our
general obligations. We are subject to regulation and supervision with
respect to our general account by the Insurance Department of the State of
New York and to the insurance laws and regulations of all jurisdictions where
we are authorized to do business. Because of applicable exemptive and
exclusionary provisions, interests in the general account have not been
registered under the Securities Act of 1933 (1933 ACT), nor is the general
account an investment company under the 1940 Act. Accordingly, neither the
general account, the Guaranteed Interest Account nor any interests therein
are subject to regulation under the 1933 Act or the 1940 Act. We have been
advised that the staff of the SEC has not made a review of the disclosures
that are included in the prospectus for your information and that relate to
the general account and the Guaranteed Interest Account. These disclosures,
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.
The amount that a Participant has in the Guaranteed Interest Account at any
time is equal to the sum of all contributions, transfers and loan repayments
(including principal and interest) that have been allocated to the Account
plus interest, less the sum of all amounts that have been withdrawn,
borrowed, transferred or deducted.
Interest is credited to the Account every day. There are three levels of
interest rates simultaneously in effect in the Guaranteed Interest Account:
the current guaranteed interest rate for the calendar quarter, the yearly
guaranteed interest rate for the calendar year and the minimum guaranteed
interest rate over the life of the contract. The rates are expressed as
effective annual rates, reflecting daily compounding, but before deduction of
the quarterly administrative and contingent withdrawal charges if applicable.
We declare a yearly guaranteed interest rate which will remain in effect
throughout the next year. We are required by the Momentum Contract to declare
this annual rate, which applies to the entire amount you have in the Guaranteed
Interest Account. The guaranteed interest rate for 1995 is 4% for Participants
in plans that converted to Momentum from our EQUI-VEST Corporate TRUSTEED
Contract and 3% for all other Participants. The yearly guaranteed interest rate
will never be less than the minimum guaranteed interest rate of 3% (4% for
Participants in plans that converted to Momentum from our EQUI-VEST Corporate
TRUSTEED Contract). At least 15 days before the beginning of a calendar year,
we will notify you in writing of the yearly guaranteed interest rate for the
next year.
We refer to the quarterly rates as our "current" rates. The current rate
applies to the entire amount you have in the Guaranteed Interest Account
during the calendar quarter for which it is declared. The current guaranteed
interest rate will not be less than the yearly guaranteed interest rate.
Because the Momentum Contract does not require us to declare them, we can
discontinue our practice of declaring quarterly rates at our discretion.
Instead of declaring a quarterly current rate for all amounts in the
Guaranteed Interest Account, we reserve the right to credit rates that are
different for different portions of your Retirement Account Value in the
Guaranteed Interest Account, based upon the Transaction Date for the
transfer, contribution or other allocation to the Account. Information about
the current quarterly rate can be obtained from TOPS. See "Services We
Provide" in Part 1.
Equitable Life reserves the right to change the duration of future interest
guarantee periods, but no interest guarantee period will exceed one year.
Before changing any duration, we will notify each Participant in writing. We
reserve the right to assign different current and yearly guaranteed rates to
different plans based upon when the plan became enrolled in the Momentum
Program. Generally, all plans that become enrolled in the Momentum Program in
the same calendar year will be in the same class. A plan will be considered
enrolled in the Momentum Program as of the earliest Participation Date
applicable to a Participant in that plan. All Participants within the same
plan will be subject to the same interest rates. Plans that converted from
EQUI-VEST Corporate TRUSTEED to Momentum will be considered in the same
class, regardless of the date of the plan's enrollment under EQUI-VEST.
24
<PAGE>
PART 5: PROVISIONS OF THE MOMENTUM CONTRACT
AND SERVICES WE PROVIDE
Bear in mind that the provisions of your plan or applicable laws or
regulations may be more restrictive than the Momentum Contract. We reserve
the right to amend the Momentum Contract without the consent of any other
person in order to comply with applicable laws and regulations. Such right
includes, but is not limited to, the right to conform the Momentum Contract
to the Code, ERISA and applicable regulations.
SELECTING INVESTMENT OPTIONS
(EMPLOYERS AND PLAN TRUSTEES ONLY)
Subject to state regulatory approval, you, as Employer or Plan Trustee, can
elect to fund your plan with any number of the Investment Options available
under the Contract. This selection is made on the application. You may
request to change this selection subject to our rules then in effect. If you
elect to fund your plan with any one of the Intermediate Government
Securities, Quality Bond, High Yield or Conservative Investors Funds, you
must also select the Money Market Fund. If you select the above-listed Funds
and the Guaranteed Interest Account, certain restrictions will apply to
transfers out of the Guaranteed Interest Account. See "Transfers" in this
Section. Lastly, you, as Employer, must elect the Guaranteed Interest Account
as a funding option if you select only from among the Balanced, Growth &
Income, Equity Index, Common Stock, Global, International, Aggressive Stock
or Growth Investors Funds.
For Old Certificates, only the Guaranteed Interest Account and the Money
Market, Balanced, Common Stock and Aggressive Stock Funds are available and
we do not permit transfers into the Money Market Fund from any of the other
Investment Options.
CONTRIBUTIONS
Contributions may be made at any time and may be made only by the Employer or
Plan Trustee by either wire transfer or check. Participants should not send
contributions directly to Equitable Life. There is no minimum contribution.
All contributions made by check must be drawn on a bank in the U.S., in U.S.
dollars and made payable to Equitable Life. All checks are subject to
collection. Contributions are credited as of the Transaction Date, if they
are accompanied by properly completed forms. Failure to use the proper form,
or to complete the form properly, may result in a delay in crediting
contributions. Employers should send all contributions to Equitable Life at
the Processing Office.
We allocate contributions to the Investment Options according to the
allocation percentages on the Participant's enrollment form or as later
changed. Under participant-directed plans, you, as Participant, will provide
those allocation percentages. In trustee- directed plans, the Plan Trustee
will provide those percentages. Employee and Employer contributions may be
allocated in different percentages. Some plans may be participant-directed
only with respect to employee post-tax and salary-deferral contributions.
By signing the enrollment form you are providing us with instructions to
allocate your contributions to the Money Market Fund (if that Fund has been
selected as an available Investment Option under your Employer's plan and) if
your allocation instructions on the form are incomplete (e.g., do not add up
to 100%). If your instructions add up to less than 100%, only the portion of
the contribution for which we do not have instructions will be allocated to
the Money Market Fund. If your instructions add up to more than 100%, the
entire amount of the contribution will be allocated to the Money Market Fund.
We will then notify your Employer or Plan Trustee and request that corrected
instructions be forwarded to us. If we do not receive corrected instructions
after three notices have been sent, but in no event later than 105 days from
the date a contribution is first credited to the Money Market Fund, we will
return to the Employer or Plan Trustee, as applicable, all contributions for
which notices had been sent, plus earnings.
If however, the Money Market Fund is not an available Investment Option under
your Employer's plan, we will return the contribution to the Employer or Plan
Trustee in five Business Days, if we have not received the signed form or
corrected allocation instructions, unless we have obtained your permission to
continue to hold the contribution.
If we receive your initial contribution before we receive your signed
enrollment form, we will allocate the initial contribution to the Guaranteed
Interest
25
<PAGE>
Account for five Business Days. If we do not receive either the signed
enrollment form or your consent to hold the initial contribution pending
receipt of the form by the fifth Business Day, we will return the amount of
the initial contribution to your Employer or Plan Trustee, as applicable.
You should review your confirmation notices carefully to determine whether
your contributions have been allocated correctly. A certificate evidencing
your enrollment under the Momentum Contract will also be sent to you.
Unless restricted by your Employer's plan, allocation percentages can be
changed at any time. To change your allocation instruction, you can file a
change of investment allocation form with your Employer or Plan Trustee. In
addition, your Employer may have opted to use our Telephone Operated Plan
Support (TOPS) system to enable you to change your allocation percentages
over the phone. The change will be effective on the Transaction Date and will
remain in effect for future contributions unless another change is requested.
A contribution allocated to an Investment Fund purchases Accumulation Units
in that Investment Fund based on the Accumulation Unit Value for that
Investment Fund computed at the end of the Valuation Period in which we
receive the contribution at our Processing Office. Contributions allocated to
the Guaranteed Interest Account become part of our general account and begin
to accrue interest on the Transaction Date.
RETIREMENT ACCOUNT VALUE
The Retirement Account Value is the sum of the amounts that a Participant has
in the Guaranteed Interest Account and the Investment Funds. See "Part 4:
Guaranteed Interest Account".
The amount you have in an Investment Fund at any time is equal to the number
of Accumulation Units you have in that Investment Fund times the Accumulation
Unit Value for the Investment Fund for that date. The number of Accumulation
Units in an Investment Fund at any time is equal to the sum of Accumulation
Units purchased by contributions, transfers and loan repayments (including
principal and interest) less the sum of Accumulation Units redeemed for
withdrawals, transfers, loans or deductions for charges.
The number of Accumulation Units purchased or sold in any Investment Fund is
equal to the dollar amount of the transaction divided by the Accumulation
Unit Value for the Investment Fund for the applicable Valuation Period. The
number of Accumulation Units will not vary because of any later change in the
Accumulation Unit Value. The Accumulation Unit Value varies with the
investment performance of the corresponding Portfolios of The Hudson River
Trust, which in turn reflects the investment income and realized and
unrealized capital gains and losses of the Portfolios, as well as The Hudson
River Trust fees and expenses. The Accumulation Unit Value is also stated
after deduction of the Separate Account asset charges relating to the
Momentum Contract. A description of the computation of the Accumulation Unit
Value is found in the SAI.
- -----------------------------------------------------------------------------
ACCUMULATION UNIT VALUES:
- -----------------------------------------------------------------------------
The following table shows the Accumulation Unit Values, as of the last
Business Day for the periods shown, commencing with the initial offering of
each Fund under the Momentum Contract.
<TABLE>
<CAPTION>
MONEY INTERMEDIATE
LAST BUSINESS MARKET GOVERNMENT QUALITY
DAY OF FUND SECURITIES BOND
- --------------- -------- -------------- ---------
<S> <C> <C> <C>
December 1993 $25.41 -- --
December 1994 26.08 $ 98.19 $93.87
March 1995 26.37 101.47 97.14
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
LAST BUSINESS HIGH GROWTH & EQUITY COMMON AGGRESSIVE CONSERVATIVE GROWTH
DAY OF YIELD INCOME INDEX STOCK GLOBAL STOCK INVESTORS BALANCED INVESTORS
- --------------- -------- ---------- --------- --------- --------- ------------ -------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
December 1993 -- -- -- $128.80 -- $55.68 -- $28.85 --
December 1994 $95.88 $ 98.86 $100.95 124.32 $104.12 52.88 $95.10 26.18 $ 96.31
March 1995 99.85 103.92 110.22 131.77 103.96 55.93 98.89 27.07 100.79
</TABLE>
26
<PAGE>
TRANSFERS
Subject to certain restrictions, the Momentum Contract permits transfers of
all or a portion of your Retirement Account Value among the Investment
Options at any time. Your Employer's plan may, however, impose restrictions
on transfers. We also offer an automatic transfer service described under
"Investment Simplifier: Automatic Transfer Service" in this section. There is
no charge for transfers.
Participant transfer requests can be made by filing a written request to
transfer with your Employer or Plan Trustee. Transfers may also be arranged
through the TOPS service. Please contact your Equitable Life Agent or the
Processing Office to receive the form necessary to obtain a special code
number required for TOPS transfers.
A transfer request will be effective on the Transaction Date and the transfer
will be made at the Accumulation Unit Value for that Transaction Date. A
transfer request does not change your percentages for allocating current or
future contributions among the Investment Options. All transfers among the
Investment Options will be confirmed in writing.
If your Employer elects to fund your plan with the Guaranteed Interest
Account and any of the Money Market, Intermediate Government Securities,
Quality Bond, High Yield, or Conservative Investors Funds, certain
limitations will apply to funds transferred out of the Guaranteed Interest
Account. During a Transfer Period, the maximum amount that may be transferred
from the Guaranteed Interest Account to any other Fund is the greater of: (i)
25% of the amount you had in the Guaranteed Interest Account as of the last
Business Day of the calendar year immediately preceding the current calendar
quarter or (ii) the total of all amounts you transferred out of the
Guaranteed Interest Account during the same calendar year. A TRANSFER PERIOD
is the calendar quarter in which the transfer request is made and the
preceding three calendar quarters. Generally, this means that new
Participants will not be able to transfer funds out of the Guaranteed
Interest Account during the first calendar quarter of their participation
under the Contract.
Transfers out of the Guaranteed Interest Account that were made at a time
when no transfer limitation is in effect will not be counted for purposes of
determining the maximum transfer amount if the transfer limitation
subsequently goes into effect.
If assets have been transferred to the Momentum Contract from another funding
vehicle by the Employer or Plan Trustee, you may for the remainder of the
calendar year in which the assets have been transferred, transfer up to 25%
of the amount that is initially allocated to the Guaranteed Interest Account
on your behalf.
However, for Old Certificates, we do not permit transfers into the Money
Market Fund from any of the other Investment Options. No other transfer
limitations apply to Old Certificates.
INVESTMENT SIMPLIFIER: AUTOMATIC
TRANSFER SERVICE
Your Employer can elect to provide two automatic transfer options out of the
Guaranteed Interest Account: the Fixed-Dollar Option and the Interest Sweep.
Except for Old Certificates, the Fixed-Dollar Option is subject to the
Guaranteed Interest Account transfer limitation described in "Transfers" in
this Section.
Under the Fixed-Dollar Option you may elect to have a fixed dollar amount
transferred out of the Guaranteed Interest Account and into the Investment
Funds of your choosing (except Money Market for Old Certificates) on a
monthly basis. You can either specify the number of monthly transfers or
instruct us to continue to make monthly transfers until amounts in the
Guaranteed Interest Account are depleted. In order to elect this option you
must have a minimum amount of $5,000 in the Guaranteed Interest Account on
the date we receive your election form and you must elect to transfer at
least $50 per month.
Under the Interest Sweep Option, the amount transferred each month will equal
the amount of interest that has been credited to amounts you have in the
Guaranteed Interest Account from the last Business Day of the prior month to
the last Business Day of the current month. To be eligible for this option
you must have at least $7,500 in the Guaranteed Interest Account on the date
we receive your election and on the last Business Day of each month
thereafter.
You may elect either option by filing an election form with your Employer or
Plan Trustee. The first monthly transfer will occur on the last Business Day
of the month in which we receive your election form at our Processing Office.
Automatic transfers will terminate:
o Under the Fixed-Dollar Option, when either the number of designated
monthly transfers have been completed or the amount you have in the
Guaranteed Interest Account has been depleted, as applicable; or
o Under the Interest Sweep, when the amount you have in the Guaranteed
Interest Account falls below $7,500 (determined on the last Business Day of
the month) for two consecutive months; or
o Under either option, on the date we receive your written request to
terminate automatic transfers or on the date your participation under the
Momentum Contract terminates.
27
<PAGE>
WITHDRAWALS FOR PLAN LOANS
The Momentum Contract permits your Employer, or Plan Trustee, to withdraw
funds from your Retirement Account Value, without incurring a contingent
withdrawal charge, in order to make a loan to you under your Employer's plan.
Your Employer can tell you whether loans are available under your plan.
Employers who adopt the Master Plan and Trust may choose to offer its loan
feature. The availability of loans under an individually designed or
prototype plan depends on the terms of the plan.
If you are a partner who owns more than 10% of the business or a
shareholder-employee of an S Corporation who owns more than 5% of the
business, you presently may not borrow from your vested Retirement Account
Value without first obtaining a prohibited transaction exemption from the
Department of Labor (DOL). Consult with your attorney or tax advisor
regarding the advisability and procedures for obtaining such an exemption.
Participants should apply for a plan loan through their Employer or the Plan
Trustee, as applicable. Prior to the making of any plan loan, the Employer or
Plan Trustee, as applicable, and the Participant must first properly complete
and sign a loan agreement and application. Employers and Plan Trustees can
obtain loan application forms from their Equitable Life Agent, by writing to
our Processing Office or calling our toll-free number. Before taking a plan
loan, married Participants must generally obtain written spousal consent.
Only one outstanding plan loan will be permitted at any time; any number of
takeover loans will be permitted at any time. However, you may not have both
takeover loans and plan loans outstanding simultaneously. Under the Momentum
Contract, (1) the minimum amount of the loan is $1,000 and (2) the maximum
amount of the loan is 50% of the Participant's vested Retirement Account
Value. In no event may any plan loan be greater than $50,000 less the highest
outstanding loan balance in the preceding twelve calendar months. You may
specify from which Investment Options the plan loan is to be deducted when
you request the loan. The loan term must comply with applicable law. See
"Part 8: Federal Tax and ERISA Matters: Plan Loans."
While you have a plan loan outstanding, an amount equal to 10% of your loan
balance will be restricted, and may not be withdrawn from your Retirement
Account Value. Also, you should refer to "Plan Loan Charges" in Part 6 for a
description of charges associated with plan loans.
If there is a loan outstanding under an EQUI-VEST Corporate TRUSTEED
certificate and you convert it to the Momentum Contract, the Retirement
Account Value established for the Participant under the Momentum Contract
will be equal to the Annuity Account Value under the EQUI-VEST certificate,
less the principal amount of the loan outstanding on the effective date of
conversion. That is, the Annuity Account Value under the EQUI-VEST
certificate will be reduced by the principal amount of the loan. Amounts that
were in the EQUI-VEST loan reserve account in excess of the principal balance
of the loan will remain in the Guaranteed Interest Division, but may be
withdrawn or transferred, subject to any restrictions in the Momentum
Contract.
The interest rate applicable to your plan loan will be set by your Employer
or the Plan Trustee under the terms of your Employer's plan. It is the
responsibility of each Employer or Plan Trustee to determine the interest
rate applicable to each loan. All interest (as well as principal) that you
pay will be added to your Retirement Account Value. The interest paid in
repaying a loan may not be deductible, but amounts paid as interest on your
loan will be taxable on distribution.
Plan loan repayments covering interest and principal will be due in
accordance with the repayment schedule determined in accordance with the
terms of the Employer's plan. Participants should send plan loan repayments
to the plan administrator and not to Equitable Life. All plan loan payments
made by the plan administrator to us must be made by check or wire transfer.
Checks must be drawn on a bank in the U.S., in U.S. dollars, made payable to
Equitable Life and are subject to collection.
A plan loan may be prepaid in whole or in part at any time. Any payments we
receive will first be applied to interest, with the balance applied to
repayment of the loan. Plan loan repayments will be allocated to the
Investment Options in accordance with the same allocation instructions used
in making the loan. However, a Participant may elect, in writing, to override
these instructions and allocate all plan loan repayments to the Guaranteed
Interest Account.
A plan loan will be in default if the amount of any scheduled repayment is
not received by us within 90 days of its due date, or if the Participant dies
or participation under the Momentum Contract is terminated. We will then
treat the loan principal as a withdrawal subject to the contingent withdrawal
charge. See "Contingent Withdrawal Charge" in Part 6. See "Part 8: Federal
Tax and ERISA Matters: Certain Rules Applicable to Plan Loans", for the
consequences of defaulting a plan loan and other applicable tax matters.
28
<PAGE>
If you, as the Employer, are transferring plan assets to the Momentum
Program, outstanding plan loans may also be transferred to the Momentum
Contract. We refer to these loans as "takeover loans." There will be no
contingent withdrawal charge imposed if a takeover loan defaults. Nor will
such loans, if defaulted, be deemed withdrawals for purposes of calculating
the minimum death benefits. Repayments of takeover loans will be allocated to
the Guaranteed Interest Account. Loans converted from EQUI-VEST Corporate
TRUSTEED to Momentum are not takeover loans.
WITHDRAWALS AND TERMINATION
Subject to any restrictions in your Employer's plan, the Momentum Contract
allows your Employer or Plan Trustee, as applicable, to make a withdrawal
from a Retirement Account Value on behalf of a Participant by writing to our
Processing Office. Your request for withdrawal must be on the proper form
which is available from your Employer. If we have received the information we
require, the requested withdrawal will become effective on the Transaction
Date and proceeds will be mailed within seven days. Withdrawal proceeds will
be sent to your Employer or Plan Trustee, unless your Employer has elected
our full service plan recordkeeping option which provides for direct
distribution to Participants. If we receive only partially completed
information, we will return the request to the Employer or Plan Trustee for
completion prior to processing.
As a deterrent to premature withdrawal (generally prior to age 59 1/2 ) the
Code provides certain restrictions on and penalties for early withdrawals. In
addition, for payments made directly to Participants, we withhold income
taxes from the amount withdrawn unless an exception applies. See "Part 8:
Federal Tax and ERISA Matters."
The Employer or Plan Trustee may also terminate its entire participation
under the Momentum Contract by writing to our Processing Office. In addition,
if your plan is found not to qualify under the Code, or, if you fail to
provide us with the Participant data necessary to administer the Momentum
Contract, we may return the plan assets to the Employer or Plan Trustee.
Withdrawals or terminations may result in a contingent withdrawal charge,
explained fully in "Part 6: Deductions and Charges."
While you have a loan outstanding, an amount equal to 10% of your loan
balance will be restricted, and may not be withdrawn from your Retirement
Account Value.
FORFEITURES
Forfeitures can arise when a Participant who is not fully vested under a plan
terminates employment. Under the terms of the Master Plan and Trust and the
Pooled Trust, Equitable Life is directed under these circumstances to
withdraw the unvested portion of the Retirement Account Value and deposit
such amount in a Forfeiture Account, which is to be allocated to the Default
Option.
We will re-allocate amounts in the Forfeiture Account as contributions in
accordance with instructions received by the Employer or Plan Trustee, as
applicable. Special rules apply to the application of the contingent
withdrawal charge when forfeitures have occurred. See "Contingent Withdrawal
Charge" in Part 6.
DISTRIBUTION OPTIONS
The Momentum Contract is an annuity contract, even though you may elect to
receive your benefits in another form.
Subject to the terms of your Employer's plan, payout options under the
Momentum Contract include:
o Lump sum or partial withdrawals;
o Payments for as long as you live;
o Payments for as long as both you and your joint annuitant live; or
o Payments for a specific length of time (not longer than your life
expectancy or that of the joint life expectancy of you and your designated
beneficiary).
You may also be eligible for our "Automatic Minimum Withdrawal" feature,
which is designed to help you satisfy the Code's "minimum distribution
requirements." Qualified plans are subject to the Code's minimum distribution
requirements. Generally, such distributions must commence by April 1 of the
calendar year following the calendar year in which the Participant attains
age 70 1/2 . The plan administrator is responsible for complying with the
Code's minimum distribution requirements. For more information about the
minimum distribution requirements, see "Part 8: Federal Tax and ERISA
Matters."
Your choice may be subject to applicable withdrawal charges. See "Part 6:
Deductions and Charges."
ANNUITY DISTRIBUTION OPTIONS
The annuity distribution options available under the Momentum Contract
include:
o LIFE ANNUITY: An annuity which guarantees payments to you for the rest of
your life. Payments end with the last monthly payment before your
29
<PAGE>
death. Because there is no death benefit associated with this annuity form,
it provides the highest monthly payment of any of the life annuity
distribution options.
o LIFE ANNUITY-PERIOD CERTAIN: This annuity form also guarantees payments to
you for the rest of your life. In addition, if you die before a previously
selected minimum payment period (the "certain period") has ended, payments
will continue to your beneficiary for the balance of the period certain. The
minimum period is usually 5, 10, 15 or 20 years.
o LIFE ANNUITY-REFUND CERTAIN: This annuity form guarantees payments to you
for the rest of your life. In addition, if you die before the amount applied
to purchase this annuity option has been recovered, payments will continue to
your beneficiary until that amount has been recovered. This option is
available only as a fixed annuity.
o PERIOD CERTAIN ANNUITY: This annuity form guarantees payments to you for a
specific period of time, usually 5, 10, 15 or 20 years. If you die before the
period certain has ended, payments will continue to your beneficiary for the
balance of the period certain.
o QUALIFIED JOINT AND SURVIVOR LIFE ANNUITY: This annuity form guarantees
life income to you and, after your death, continuation of income to your
surviving spouse. Generally, unless married Participants elect otherwise with
the written consent of their spouse, this will be the normal form of annuity
payment for plans such as the Master Plan and Trust. See Part 8: "Federal Tax
and ERISA Matters."
We may offer other forms not outlined here. Your Equitable Life Agent can
provide details.
All of the life annuity distribution options outlined above (with the
exception of Qualified Joint and Survivor Life Annuity) are available as
either Single or Joint life annuities.
The Momentum Contract also offers both fixed and variable annuity
distribution options. Fixed annuity payments, funded through our general
account, do not change and will be based on the tables of guaranteed annuity
values in the Momentum Contract or on our current annuity rates, whichever is
more favorable for the Participant. For all Participants, our normal form of
annuity provides for fixed payments. Variable payments will be funded through
the Common Stock Fund through the purchase of Annuity Units. See "Annuity
Unit Values" in the SAI. On or about September 1, 1995, variable payments
will be funded through your choice among the Investment Funds.
The chart below shows the relative financial value of the different annuity
options, based on our guaranteed rates for fixed annuities. The example
assumes that at the time payments commence, both the annuitant and the joint
annuitant are 65, and the amount used to purchase the annuity is $100,000.
Certain legal requirements may limit the forms of annuity available to you.
Values do not reflect any state premium taxes or contingent withdrawal
charges.
<TABLE>
<CAPTION>
AMOUNT TO BE
APPLIED ON RATE PER MONTHLY
ANNUITY FORM $1.00 OF ANNUITY
ANNUITY FORM ELECTED ANNUITY PROVIDED
- ------------------------- -------------- --------- ----------
<S> <C> <C> <C>
Life ..................... $100,000 $207.42 $ 482.11
5 Year Certain Life ..... 100,000 208.32 480.04
10 Year Certain Life .... 100,000 211.15 473.60
15 Year Certain Life .... 100,000 216.29 462.34
20 Year Certain Life .... 100,000 224.23 445.98
100% Joint &
Survivor Life ........... 100,000 243.17 411.23
75% Joint & Survivor Life 100,000 234.24 426.92*
50% Joint & Survivor Life 100,000 225.30 443.86*
100% Joint & Survivor-5
Year Certain Life** .... 100,000 243.19 411.20
100% Joint & Survivor-10
Year Certain Life** .... 100,000 243.37 410.90
100% Joint & Survivor-15
Year Certain Life** .... 100,000 244.03 409.79
100% Joint & Survivor-20
Year Certain Life** .... 100,000 245.83 406.79
<FN>
- ------------
* Represents the amount payable to the primary annuitant. A surviving
joint annuitant would receive the applicable percentage of the amount paid to
the primary annuitant.
** You may also elect a Joint and Survivor Annuity-Period Certain with a
monthly benefit payable to the surviving joint annuitant in any percentage
between 50 and 100.
</TABLE>
We also offer the annuity distribution options outlined above in variable
form, unless otherwise indicated. Variable annuity payments will be funded
through the Common Stock Fund through the purchase of annuity units. The
amount of each variable annuity payment may fluctuate depending upon the
performance of the Common Stock Fund. See "Annuity Unit Values" in the SAI.
On or about September 1, 1995, variable payouts will be funded through your
choice among any of the Investment Funds.
We offer other forms not outlined here. Your Equitable Life Agent can provide
details.
ELECTING AN ANNUITY DISTRIBUTION
OPTION
In order to elect an annuity distribution option, a Retirement Account Value
must be at least $3,500.
The size of the payments will depend on the amount applied to purchase the
annuity, the type of annuity chosen and, in the case of a life contingency
annuity distribution option, the Participant's age (or the Participant's and
joint annuitant's ages).
30
<PAGE>
For those Participants who converted from our EQUI-VEST Corporate Trusteed
Certificates to Momentum, it is our current practice to increase the current
annuity rates for fixed life annuity distribution options by approximately 3%
for any amounts applied that are in excess of your contributions in the
current and five prior Participation Years.
Once you choose an annuity distribution option and payments have commenced,
no change can be made. Remember, as a deterrent to premature withdrawal
(generally prior to age 59 1/2) the Code provides certain restrictions on
and penalties for early withdrawals. See "Part 8: Federal Tax and ERISA
Matters."
AUTOMATIC MINIMUM WITHDRAWAL
(OVER AGE 70 1/2)
Under the Code, distributions from qualified plans must generally begin no
later than April 1st of the calendar year following the calendar year in
which the plan participant attains age 70 1/2 (the "required beginning
date"). Subsequent distributions must be made by December 31st of each
calendar year (including the calendar year of your required beginning date).
If the required minimum distribution is not paid, the plan participant may be
required to pay a penalty tax in an amount equal to 50% of the difference
between the amount required to be distributed and the amount actually
distributed. See "Part 8: Federal Tax and ERISA Matters" for a discussion of
various special rules concerning the minimum distribution requirements.
"Automatic Minimum Withdrawal" is our special minimum distribution option.
You may elect Automatic Minimum Withdrawal if you are at least age 70 1/2 and
have a Retirement Account Value of at least $3,500. You can elect Automatic
Minimum Withdrawal by filing the proper election form with your Employer. If
you elect Automatic Minimum Withdrawal, we will withdraw the amount which the
Code requires you to withdraw from your Retirement Account Value. We
calculate the Automatic Minimum Withdrawal amount based on the information
you give us, the various choices you make and certain assumptions. In
performing this calculation, we assume that the only funds subject to the
Code's minimum distribution requirements are those held under the Momentum
Contract. In addition, we rely on the information you provide to us, and we
will not be responsible for errors that result from inaccuracies in this
information. The choices you can make are described in the SAI.
Your Automatic Minimum Withdrawal election is revocable. Automatic Minimum
Withdrawal is not available to Participants who have an outstanding loan.
Electing this option does not restrict you from taking partial withdrawals or
subsequently electing an annuity distribution option.
The minimum check that will be sent is $300, or, if less, your Retirement
Account Value.
Any applicable withdrawal charges will be deducted from your Retirement
Account Value in addition to the amount of the Automatic Minimum Withdrawal.
See "Contingent Withdrawal Charge" in Part 6.
DEATH BENEFIT
In general, the death benefit is equal to the greater of: (i) the Retirement
Account Value and (ii) the "minimum death benefit."
The Master Plan and Trust and the Pooled Trust direct the automatic transfer
of a Retirement Account Value to the Default Option on the date Equitable
Life receives due proof of a Participant's death, unless the beneficiary
provides contrary instructions. All amounts are held in the default option
until your beneficiary requests a distribution or transfer.
The minimum death benefit equals all contributions made less withdrawals of
contributions (including loans that default upon death). For example, assume
that a $1,000 contribution is made, and that the contribution earns $1,000
(for a balance of $2,000). A $1,500 withdrawal is then made leaving a balance
of $500. Assume that a new $500 contribution is subsequently made. If the
participant subsequently dies, the minimum death benefit will be $500 because
there was a $500 contribution that had not been withdrawn, borrowed or
forfeited.
The law requires the distribution of benefits to be completed no more than
five years after the date of your death, unless payments of your benefit to a
designated beneficiary commence within one year after your death and are made
over the beneficiary's life or over a period not exceeding the beneficiary's
life expectancy. If the beneficiary is your surviving spouse, the spouse can
elect to begin distributions over the spouse's life or over a period not
exceeding the spouse's life expectancy at any time up to when you would have
attained age 70 1/2 . If you had already begun to receive benefits, your
beneficiary can continue to receive benefits based on the payment option you
selected. To designate a beneficiary or to change an earlier designation, you
should file a beneficiary designation with your plan administrator. Your
spouse must consent in writing to a designation of any non-spouse
beneficiary, as explained in "Spousal Requirements" in Part 8.
If the Participant dies while a loan is outstanding, the loan will
automatically default and be subject to
31
<PAGE>
federal income tax as a plan distribution and, unless an exception applies, a
10% penalty tax. This defaulted loan will also be treated as a withdrawal for
purposes of calculating the minimum death benefit. Defaulted takeover loans
will not, however, be considered withdrawals for this purpose.
The beneficiary may elect, subject to certain exceptions explained below,
Equitable Life's rules then in effect and any other applicable requirements
under the Code to: (a) receive the death benefit in a single sum, (b) apply
the death benefit to an annuity distribution option offered by Equitable
Life, (c) apply the death benefit to provide any other form of benefit
payment offered by Equitable Life, or (d) have the death benefit credited to
an account under the Momentum Contract maintained on behalf of the
beneficiary in accordance with the beneficiary's investment allocation
instructions. If the beneficiary elects (d) then (1) the beneficiary will be
entitled to delay distribution of his or her account as permitted under the
terms of the Employer's plan and the minimum distribution rules under the
Code; (2) the value of the beneficiary's account will be determined at the
time of distribution to the beneficiary and, depending upon investment gains
or losses, may be worth more or less than the value of the beneficiary's
initial account and (3) if the beneficiary dies prior to taking a
distribution of his or her entire account the beneficiary of the deceased
beneficiary will be entitled to a death benefit as though the deceased
beneficiary were a Participant, based on the deceased beneficiary's initial
account.
If you die before your entire vested benefit has been distributed to you, the
remainder of your benefits will be payable to your beneficiary.
Our consultants can explain these and other requirements affecting death
benefits if you call them at 1-800-528-0204.
PAYMENTS OF PROCEEDS
Payments of proceeds from the Investment Funds will be made within seven days
of the Transaction Date. Payments or applications of proceeds from the
Investment Funds can be deferred for any period during which (1) the New York
Stock Exchange has been closed or trading on it is restricted, (2) sales of
securities or determination of the fair market value of an Investment Fund's
assets is not reasonably practicable because of an emergency, or (3) the SEC,
by order, permits us to defer payment in order to protect persons with
interests in the Investment Funds.
We can defer payment of any portion of your Retirement Account Value in the
Guaranteed Interest Account for up to six months while you are living.
PLAN RECORDKEEPING SERVICES
Equitable offers two plan recordkeeping options, one of which must be elected
for each plan. Employers can elect our basic plan recordkeeping service
option, which includes:
o Accounting by Participant;
o Accounting by Source;
o Provision of annual 5500 series Schedule A report information for use in
making the plan's annual report to the Internal Revenue Service (IRS) and
DOL; and
o Plan loan processing, if applicable.
As an added service under our Basic Recordkeeping Service, after June, 1995,
Employers may enter into a written agreement with Equitable Life whereby
Equitable Life, based on information submitted by Employers, direct
distribution of plan benefits and withdrawals to participants, including tax
withholding and reporting to the IRS. The written agreement will specify the
fees for such service.
The Momentum Program also offers a full service plan recordkeeping option.
This option is only available to Employers who have adopted the Master Plan
and Trust. If this option is chosen, Equitable Life will provide the
following plan recordkeeping services in addition to the services described
above:
o Master Plan and Trust documents approved by the Internal Revenue Service
(IRS);
o Assistance in interpreting the Master Plan and Trust, including plan
installation and ongoing administrative support;
o Assistance in annual reporting with the IRS and DOL;
o Plan administration manual and forms (including withdrawal, transfer, loan
processing, and account allocation forms);
o Performance of vesting calculations;
o Performance of special non-discrimination tests applicable to Code Section
401(k) plans;
o Tracking of hardship withdrawal amounts in Code Section 401(k) plans; and
o Direct distribution of plan benefits and withdrawals to Participants,
including tax withholding and reporting to the IRS.
Any additional services that Equitable Life will provide are indicated in the
plan recordkeeping services agreement. This agreement is required for
Employers or Plan Trustees who elect the full service recordkeeping option
and specifies the fees for the services to be provided. See "Charge for Plan
Recordkeeping Services" in Part 6.
32
<PAGE>
PART 6: DEDUCTIONS AND CHARGES
LIMITATION ON CHARGES
Under the terms of the Momentum Contract for the Money Market, Balanced,
Common Stock and Aggressive Stock Funds, the aggregate amount of the Separate
Account charge made to those Funds, The Hudson River Trust charges for
investment advisory fees and the direct operating expenses of The Hudson
River Trust may not exceed a total annual rate of 1.75% of the value of the
assets held in those Funds for the Momentum Contract. These asset charges do
not apply to the Guaranteed Interest Account.
CHARGES TO INVESTMENT FUNDS FOR
EXPENSES
We make a daily charge against the assets held in each of the Separate
Accounts Investment Funds for expenses of the Momentum Contract. This charge
is reflected in the Accumulation Unit Values for the particular Investment
Fund and covers expenses, expense risks, mortality (for the annuity rate
guarantee), death benefits (for the minimum death benefit) and financial
accounting. For the Money Market, Balanced and Common Stock Funds, the charge
is made at an annual rate not to exceed 1.49% which consists of .60% for
expenses, .30% for expense risks, .30% for mortality risks, .05% for death
benefits and .24% for financial accounting. For all other Investment Funds,
the charge is made at an annual rate not to exceed 1.34% which consists of
.60% for expenses, .15% for expense risks, .30% for mortality risks, .05% for
death benefits and .24% for financial accounting.
The charge for expenses is designed to reimburse us for various research and
development costs and for administrative expenses that exceed the quarterly
administrative charge described below. The expense risk we assume is the risk
that, over time, our actual expense of administering the Momentum Contract
may exceed the amounts realized from the expense and the quarterly
administrative expense charges. The mortality risk we assume is that
annuitants, as a group, may live longer than anticipated under annuity
options that involve life contingencies. The charge for death benefits is
designed to assure that adequate proceeds will be available to pay the mini-
mum death benefit. The charge for financial accounting services is designed
to reimburse us for our costs in providing those services in connection with
the Momentum Contract, and, like the charge for expenses, is not designed to
include an element of profit.
Under the Momentum Contract, the total of these charges may be reallocated
among the categories of charges shown in the table above. However,
notwithstanding provisions of the Momentum Contract, we intend to limit any
possible reallocation to include only the charges for expense risks,
mortality risks and death benefits.
Part of the respective charges for expense risks, mortality risks and death
benefits may be considered to be an indirect reimbursement for certain sales
and promotional expenses relating to the Momentum Contract to the extent that
the charges are not needed to meet the actual expenses incurred.
HUDSON RIVER TRUST CHARGES TO
PORTFOLIOS
Investment advisory fees charged daily against assets of The Hudson River
Trust, direct operating expenses of The Hudson River Trust (such as trustees'
fees, expenses of independent auditors and legal counsel, bank and custodian
charges and liability insurance), and certain investment-related expenses of
The Hudson River Trust (such as brokerage commissions and other expenses
related to the purchase and sale of securities), are reflected in each
Portfolio's daily share price. The maximum investment advisory fees paid
annually by the Portfolios are listed below. They cannot be changed without a
vote by shareholders. See "Part 7: Voting Rights."
<TABLE>
<CAPTION>
DAILY AVERAGE NET ASSETS
-------------------------------------
FIRST $350 NEXT $400 OVER $750
MILLION MILLION MILLION
----------- ----------- -----------
<S> <C> <C> <C>
Common Stock,
Money Market
and Balanced ........... .400% .375% .350%
Aggressive Stock
and Intermediate
Government
Securities ............. .500% .475% .450%
High Yield, Global,
Conservative
Investors and
Growth Investors ....... .550% .525% .500%
FIRST $500 NEXT $500 OVER $1
MILLION MILLION BILLION
----------- ----------- -----------
Quality Bond and
Growth & Income ........ .550% .525% .500%
FIRST $750 NEXT $750 OVER $1.5
MILLION MILLION BILLION
----------- ----------- -----------
Equity Index ........... .350% .300% .250%
FIRST $500 NEXT $1 OVER $1.5
MILLION BILLION BILLION
----------- ----------- -----------
International .......... .900% .850% .800%
</TABLE>
33
<PAGE>
Investment advisory fees are established under the investment advisory
agreements between The Hudson River Trust and its investment adviser,
Alliance Capital. All of these fees and expenses are described more fully in
The Hudson River Trust prospectus.
QUARTERLY ADMINISTRATIVE CHARGE
Except as discussed below, on the last Business Day of each calendar quarter
we deduct from each Retirement Account Value an administrative charge which
is currently equal to $7.50 or, if less, .50% of the total of the Retirement
Account Value plus the amount of any Active Loan. This charge is deducted by
Source from each Investment Option in a specified order described under "How
We Deduct the Quarterly Administrative Charge" in the SAI.
Any portion of the charge deducted from an Investment Fund will reduce the
number of Accumulation Units you have in that Investment Fund. Any portion of
the charge deducted from the Guaranteed Interest Account is withdrawn in
dollars.
There is no charge for any calendar quarter in which the Retirement Account
Value plus any Active Loan is at least $25,000 as of the last Business Day of
that quarter. We reserve the right to increase this charge if our
administrative costs increase. We will give Employers or Plan Trustees 90
days written notice of any increase. We may also reduce this charge under
certain circumstances. See "Special Circumstances" in this Section.
You, as Employer, may choose to have this quarterly administrative charge
billed to you directly.
APPLICABLE STATE AND LOCAL TAXES
Currently, we deduct any applicable charges for state and local taxes from
the amount applied to provide an annuity benefit if a Participant elects to
annuitize. We reserve the right to deduct any such charge from each
contribution or from withdrawals or terminations with respect to a
Participant or beneficiaries. If we have deducted any applicable tax charges
from contributions we will not deduct charges for the same taxes at a later
time. If, however, a new tax is later imposed upon us when you make a
withdrawal from, terminate or annuitize the Retirement Account Value, we
reserve the right to deduct a charge at such time. The current premium tax
charge which might be imposed in your State ranges from 0% to 2.25%. However,
the rate is 1% in Puerto Rico and 5% in the Virgin Islands.
CHARGE FOR PLAN RECORDKEEPING
SERVICES
The annual charge for the basic plan recordkeeping option is $300 (pro-rated
in the first year). This charge will be billed directly to the Employer.
After June, 1995, Employers may enter into a written agreement with Equitable
Life for direct distribution of plan benefits and withdrawals to
Participants, including tax withholding and reporting to the IRS, a $25
checkwriting fee shall be charged by Equitable Life for each check drawn.
This fee may be paid separately to Equitable Life prior to the distribution
of plan benefits or as directed by the Employer or Plan Trustee deducted
first from the Retirement Account of the Participant before any distribution
is made. We reserve the right to increase these charges if our plan
recordkeeping costs increase. We will give Employers or Plan Trustees 90 days
written notice of any increase. This charge is not imposed on plans that
converted to the Momentum Contract from our EQUI-VEST Corporate TRUSTEED
Contract.
There are additional charges if the Employer or Plan Trustee elects to use
our full service plan recordkeeping option, which additional charges will
depend upon the service used. Employers will be required to execute an
agreement governing additional record- keeping services and related charges.
CONTINGENT WITHDRAWAL CHARGE
No sales charges are deducted from contributions. However, to assist us in
defraying the various sales and promotional expenses incurred in connection
with selling the Momentum Contract, we assess a sales charge on amounts
withdrawn from Retirement Account Values. Under certain conditions, the
contingent withdrawal charge will not apply to some or all of the amount
withdrawn.
FREE WITHDRAWAL AMOUNT (FREE CORRIDOR)
Subject to certain restrictions, no withdrawal charge will be applied during
any Participation Year in which the amount withdrawn does not exceed 10% of
the sum of the Retirement Account Value and any Active Loan at the time the
withdrawal is requested, minus any amount previously withdrawn during that
Participation Year (including any defaulted loan amounts and forfeited
amounts). This 10% portion is called the FREE CORRIDOR AMOUNT.
If you, as the Employer, have transferred your plan assets to the Momentum
Program from another qualified plan and we have not yet received from you the
allocation of values among Participants, we will treat the total amount we
hold as one Retirement Account Value. Withdrawals from this Retirement
Account Value will not have the benefit of a free corridor amount. However,
once the amount we hold is allocated among the various Participants,
withdrawals will have the benefit of the free corridor amount.
34
<PAGE>
HOW THE CONTINGENT WITHDRAWAL CHARGE IS
APPLIED
Partial withdrawals in excess of the free corridor amount will be subject to
a withdrawal charge of 6% of the lesser of (i) such excess or (ii) the amount
of the withdrawal attributable to contributions made by or on behalf of the
Participant during the current and five prior Participation Years.
In the case of a full withdrawal of a Retirement Account Value, the plan will
receive from us the greater of your Retirement Account Value after the
withdrawal charge of 6% has been imposed upon the amount of the contributions
made by or on behalf of a Participant during the current and five prior
Participation Years, or the free corridor amount plus 94% of the sum of the
remaining Retirement Account Value and any Active Loan, less the Active Loan.
This charge will also apply in the case of a termination of participation
under the Momentum Contract by the Employer or Plan Trustee.
The withdrawal charge described above is deducted from the Retirement Account
Value in addition to the amount of the requested withdrawal; the portion of
the amount withdrawn that is applied to pay the withdrawal charge is also
subject to the withdrawal charge.
For purposes of calculating the withdrawal charge, (1) the oldest
contributions will be treated as the first withdrawn and more recent
contributions next, (2) amounts withdrawn up to the free corridor amount will
not be considered a withdrawal of any contributions and (3) Active Loans do
not include takeover loans for this purpose.
If a portion of your Retirement Account Value is forfeited under the terms of
your plan, we will assess a withdrawal charge only against vested
contribution amounts. The balance of the withdrawal charge will be waived at
that time. However, if you, as the Employer or Plan Trustee, withdraw the
forfeited amount from the Momentum Contract before it is reallocated to other
Participants, you will incur the balance of the withdrawal charge at that
time.
No charge will be applied to any amount withdrawn, if:
o the amount withdrawn is applied to the election of a life annuity
distribution option;
o you die;
o you have been a Participant for at least five Participation Years and have
reached age 59 1/2;
o you have reached age 59 1/2 and have separated from service (regardless of
the number of Participation Years);
o the amount withdrawn is the result of a request for a refund of "excess
contributions" or "excess aggregate contributions" as such terms are defined
in Sections 401(k)(8)(B) and 401(m)(6)(B), respectively, of the Code,
including any gains or losses, and the withdrawal is made no later than the
end of the plan year following the plan year for which such contributions
were made;
o the amount withdrawn is a request for a refund of "excess deferrals" as
such term is defined in Section 402(g)(2) of the Code, including any gains or
losses, provided the withdrawal is made no later than April 15, following the
calendar year in which such excess deferrals were made;
o the amount withdrawn is a request for a refund of contributions made due
to mistake of fact made in good faith, provided the withdrawal is made within
12 months of the date such mistake of fact contributions were made and any
earnings attributable to such contributions are not included in such
withdrawal;
o the amount withdrawn is a request for a refund of contributions disallowed
as a deduction by the Employer for Federal income tax purposes, provided such
withdrawal is made within 12 months after the disallowance of the deduction
has occurred and no earnings attributable to such contributions are included
in such withdrawal; or
o the amount withdrawn is a withdrawal for disability as defined in Section
72(m) of the Code.
In addition, there will be no contingent withdrawal charge imposed on any
Annuity Account Value under an EQUI-VEST Corporate TRUSTEED certificate when
it is converted to a Momentum Contract. For purposes of calculating any
contingent withdrawal charge under the Momentum Contract, we will carry over
the history of the contributions made under a converted EQUI-VEST
certificate. For example, if an EQUI-VEST Corporate TRUSTEED certificate was
purchased on behalf of a Participant on June 1, 1987 with a single $5,000
contribution, we will continue to treat the $5,000 contribution as made on
June 1, 1987 under the Momentum Contract. This means that you will not lose
the benefit of "aging" contributions by converting EQUI-VEST certificates to
the Momentum Contract.
PLAN LOAN CHARGES
A $25 loan set-up charge will be deducted from your Retirement Account Value
at the time a plan loan is made. Also, we will deduct a recordkeeping charge
of $6 from your Retirement Account Value on the last Business Day of each
calendar quarter if there is an Active Loan on that date. The $6 per quarter
record-
35
<PAGE>
keeping charge, but not the $25 set-up charge, will be applicable to takeover
loans and to loans converted from EQUI-VEST Corporate TRUSTEED to Momentum.
Your employer may elect to pay these charges. These charges are intended to
reimburse us for the added administrative costs associated with processing
loans. We reserve the right to increase these administrative charges if our
costs increase. We will give Employers or Plan Trustees 90 days written
notice of any increase.
Any defaulted loan amount will incur a contingent withdrawal charge as
described above under "Contingent Withdrawal Charge."
SPECIAL CIRCUMSTANCES
Subject to any necessary governmental or regulatory approvals, the contingent
withdrawal charge, quarterly administrative charge, loan charges and basic
plan recordkeeping fee for a particular plan participating under the Contract
may be reduced or eliminated when sales are made in a manner that results in
savings of sales or administrative expenses. The entitlement to such a
reduction or elimination will be determined by us based on factors such as
the number of Participants, performance of sales or administrative functions
by the Employer or plan administrator, frequency of contributions or the use
of automated techniques in transmitting data.
36
<PAGE>
PART 7: VOTING RIGHTS
HUDSON RIVER TRUST VOTING RIGHTS
As explained previously, contributions allocated to the Investment Funds are
invested in shares of the corresponding Portfolios of The Hudson River Trust.
Since we own the assets of the Separate Account, we are the legal owner of
the shares and, as such, have the right to vote on certain matters. Among
other things, we may vote:
o to elect The Hudson River Trust's Board of Trustees,
o to ratify the selection of independent accountants for The Hudson River
Trust, and
o on any other matters described in The Hudson River Trust's current
prospectus or requiring a vote by shareholders under the 1940 Act.
Because The Hudson River Trust is a Massachusetts business trust, annual
meetings are not required. Whenever a shareholder vote is taken, we will give
Participants or Plan Trustees, as applicable, the opportunity to instruct us
how to vote the number of shares attributable to the Retirement Account
Values. If we do not receive instructions for all the shares, we will vote
the shares of a Portfolio for which no instructions have been received in the
same proportion as we vote shares of that Portfolio for which we have
received instructions. We will also vote any shares that we are entitled to
vote directly because of amounts we have in an Investment Fund in the same
proportions that all persons entitled with an interest in such shares vote.
Each share of The Hudson River Trust is entitled to one vote. Fractional
shares will be counted. Voting generally is on a Portfolio-by-Portfolio basis
except that shares will be voted on an aggregate basis when universal
matters, such as election of Trustees and ratification of independent
auditors, are voted upon. However, if the Trustees determine that
shareholders in a Portfolio are not affected by a particular matter, then
such shareholders generally would not be entitled to vote on that matter.
SEPARATE ACCOUNT VOTING RIGHTS
Under the 1940 Act, certain actions (such as some of those described under
"Changes in Applicable Law and Otherwise," below) may require Participant
approval. In that case, Participants will be entitled to one vote for each
Accumulation Unit they have in the Investment Funds. We will cast votes
attributable to any amounts we have in the Investment Funds in the same
proportion as votes cast by all persons who participate in the Separate
Account.
VOTING RIGHTS OF OTHERS
Currently, we control The Hudson River Trust. Shares of The Hudson River
Trust are held by other separate accounts of ours and by separate accounts of
insurance companies affiliated and unaffiliated with us. Shares held by these
separate accounts will probably be voted according to the instructions of the
owners of insurance policies and contracts issued by those insurance
companies. While this will dilute the effect of the voting instructions of
Participants and Plan Trustees, we currently do not foresee any disadvantages
arising out of this. The Hudson River Trust's Board of Trustees intends to
monitor events in order to identify any material irreconcilable conflicts
that possibly may arise and to determine what action, if any, should be taken
in response. If we believe that The Hudson River Trust's response to any of
those events insufficiently protects Participants, we will see to it that
appropriate action is taken to protect Participants.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
Federal securities laws. To the extent that those laws or the regulations
promulgated under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
37
<PAGE>
PART 8: FEDERAL TAX AND ERISA MATTERS
Employer retirement plans that may qualify for tax-favored treatment are
governed by the provisions of the Code and ERISA. The Code is administered by
the IRS. ERISA is administered primarily by the Department of Labor (DOL).
Provisions of the Code and ERISA include requirements for various features
including:
o participation, vesting and funding;
o nondiscrimination;
o limits on contributions and benefits;
o distributions;
o penalties;
o duties of fiduciaries;
o prohibited transactions; and
o withholding, reporting and disclosure.
IT IS THE RESPONSIBILITY OF THE EMPLOYER, PLAN TRUSTEE AND PLAN ADMINISTRATOR
TO SATISFY THE REQUIREMENTS OF THE CODE AND ERISA.
This prospectus does not provide detailed tax or ERISA information. The
following discussion briefly outlines the Code provisions relating to
contributions to and distributions from certain tax-qualified retirement
plans, although some information on other provisions is also provided.
Various tax disadvantages, including penalties, may result from actions that
conflict with requirements of the Code or ERISA, and regulations or other
interpretations thereof. In addition, Federal tax laws and ERISA are
continually under review by the Congress, and any changes in those laws, or
in the regulations pertaining to those laws, may affect the tax treatment of
amounts contributed to tax-qualified retirement plans or the legality of
fiduciary actions under ERISA.
Certain tax advantages of tax-qualified retirement plan may not be available
under certain state and local tax laws. This outline does not discuss the
effect of any state or local tax laws. It also does not discuss the effect of
federal estate and gift tax laws (or state and local estate, inheritance and
other similar tax laws). This outline assumes that the participant does not
participate in any other qualified retirement plan. Finally, it should be
noted that many tax consequences depend on the particular jurisdiction or
circumstances of a participant or beneficiary.
THE PROVISIONS OF THE CODE AND ERISA ARE HIGHLY COMPLEX. FOR COMPLETE
INFORMATION ON THESE PROVISIONS, AS WELL AS ALL OTHER FEDERAL, STATE, LOCAL
AND OTHER TAX CONSIDERATIONS, QUALIFIED LEGAL AND TAX ADVISERS SHOULD BE
CONSULTED.
TAX ASPECTS OF CONTRIBUTIONS TO A PLAN
Corporations, partnerships and self-employed individuals can establish
qualified plans for the working owners and their employees who participate in
the plan. The trustee or plan administrator may make contributions on behalf
of the plan participants which are deductible from the employer's Federal
gross income. Employer contributions which exceed the amount currently
deductible are subject to a 10% penalty tax. There are specific rules that
affect owner employees (i.e., a person who owns 100% of an unincorporated
trade or business or a person who owns more than 10% of either the capital or
profits of a partnership) who participate in a Keogh plan. In addition, there
are special rules for corporate plans and Keogh plans which are top heavy
plans (i.e., more than 60% of the contributions or benefits are allocated to
certain highly compensated employees otherwise known as key employees).
The limits on the amount of contributions that can be made and/or forfeitures
that may be allocated to each participant of defined contribution plans are
the lesser of $30,000 or 25% of the compensation or earned income for each
participant. For self- employed individuals, earned income is defined so as
to exclude deductible contributions made to all tax- qualified retirement
plans, including Keogh plans, and takes into account the deduction for
one-half the individual's self-employment tax. Deductions for aggregate
contributions to profit sharing plans may not exceed 15% of all participants'
compensation.
The employer may not consider compensation in excess of $150,000 in
calculating contributions to the plan. This amount may be adjusted for
inflation in future years. Special limits on contributions apply to anyone
who participates in more than one qualified plan or who controls another
trade or business. In
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<PAGE>
addition, there is an overall limit on the total amount of contributions and
benefits under all tax-qualified retirement plans in which an individual
participates.
A qualified plan may allow the participant to direct the employer to make
contributions which will not be included in the employee's income (elective
deferrals) by entering into a salary reduction agreement with the employer
under Section 401(k) of the Code. The 401(k) plan, otherwise known as a cash
or deferred arrangement, must not allow withdrawals of elective deferrals and
the earnings thereon prior to the earliest of the following events: (i)
attainment of age 59 1/2, (ii) death, (iii) disability, (iv) certain
business dispositions and plan terminations or (v) termination of employment.
In addition, in service withdrawals of elective deferrals (but not earnings
after 1988) may be made in the case of financial hardship.
A participant cannot elect to defer annually more than $7,000 ($9,240 as
indexed for inflation in 1995) under all salary reduction arrangements in
which the individual participates. If an individual's aggregate elective
deferrals under all such salary reduction arrangements exceeds the permitted
elective deferral limit in any taxable year, the individual will be taxed
twice on the excess deferral--once in the year of the deferral and again when
a distribution occurs. If the participant notifies the affected plan or plans
by March 1 of the following year and by April 15 of such year takes a
distribution of the excess deferral and related income, the excess deferral
will only be taxed once in the year of the distribution. The excess deferral
distribution will not be treated as an impermissible withdrawal or an
"eligible rollover distribution" and will not be subject to the 10% penalty
tax on premature distributions, discussed below.
A qualified plan must not discriminate in favor of highly compensated
employees. Two special nondiscrimination rules limit contributions and
benefits for highly compensated employees in the case of (1) a 401(k) plan
and (2) any defined contribution plan, whether or not a 401(k) plan, which
provides for employer matching contributions to employee post- tax
contributions or elective deferrals. In both cases the special
nondiscrimination tests compare the deferrals or the aggregate contributions,
as the case may be, made by the eligible highly compensated employees with
those made by the non-highly compensated employees. Coordination rules
between the two provisions are prescribed. Highly compensated participants
include five percent owners, employees earning more than $100,000 per year,
employees earning more than $66,000 per year and who are in the top 20% of
all employees based on compensation, and officers (or deemed officers)
earning more than $60,000 per year (in each case after indexing for inflation
in 1995).
If a 401(k) plan or defined contribution plan with an employer match makes
contributions to highly compensated employees exceeding applicable
nondiscrimination limits for any plan year, the plan may be disqualified
unless the excess amounts including earnings are distributed before the close
of the next plan year. In addition, the employer is subject to a 10% penalty
on any such excess contributions or excess aggregate contributions. The
employer may avoid the penalty by distributing the excess contributions or
excess aggregate contributions, plus income, within two and one-half months
after the close of the plan year. Except where the distribution is de minimis
(under $100), the participant receiving any such distribution is taxed on the
distribution and the related income for the year of the excess contribution
or excess aggregate contribution. Such a distribution is not treated as an
impermissible withdrawal by the employee or an eligible rollover distribution
and will not be subject to the 10% penalty tax on premature distributions.
Contributions to a 401(k) plan or a defined contribution plan as matching
contributions, within the meaning of section 401(m) of the Code, may not be
deductible by the employer for a particular taxable year if the plan
contributions are attributable to compensation earned by a participant after
the end of the taxable year.
TAX ASPECTS OF DISTRIBUTIONS FROM
A PLAN
Amounts held under qualified plans are generally not subject to Federal
income tax until benefits are distributed to the participant or other
recipient. In addition, there will not be any tax liability for transfers of
any part of the Retirement Account Value among the Investment Options.
The various types of benefit payments include withdrawals, annuity payments
and lump sum distributions. Each benefit payment made to the participant or
other recipient is generally fully taxable as ordinary income. An exception
to this general rule is made, however, to the extent a distribution is
treated as a recovery of post-tax contributions made by the participant.
In addition to income tax, the taxable portion of any distribution may be
subject to a 10% penalty tax. See "Penalty Tax on Premature Distributions"
below.
Income Taxation of Withdrawals
The amount of any distribution prior to the annuity starting date is treated
as ordinary income except to
39
<PAGE>
the extent the distribution is treated as a withdrawal of post-tax
contributions. Withdrawals from a qualified plan are normally treated as pro
rata withdrawals of post-tax contributions and earnings on those
contributions. If the plan allowed withdrawals prior to separation from
service as of May 5, 1986, however, all post-tax contributions made prior to
January 1, 1987 may be withdrawn tax-free prior to withdrawing any taxable
amounts.
As discussed below in "Certain Rules Applicable to Plan Loans," taking a loan
or failing to repay an outstanding loan as required may, in certain
situations, be treated as a taxable withdrawal.
Income Taxation of Annuity Payments
In the case of a distribution in the form of an annuity, the amount of each
annuity payment is treated as ordinary income except where the participant
has a cost basis in the annuity. The cost basis is equal to the amount of
post-tax contributions, plus any employer contributions that had to be
included in gross income in prior years. If the participant has a cost basis
in the annuity, a portion of each payment received will be excluded from
gross income to reflect the return of the cost basis. The remainder of each
payment will be includible in gross income as ordinary income.
The excludable portion is based on the ratio of the participant's cost basis
in the annuity on the annuity starting date to the expected return under the
annuity as of such date. Under an annuity with a life contingency, the
expected return is based on the annuitant's life expectancy, that is, the
number of annuity payments anticipated to be made during the annuitant's
lifetime. In the case of a joint and survivor annuity, the expected return is
based on the joint life expectancy, that is, the number of payments
anticipated to be made during both of their lifetimes. An adjustment will be
required in computing the expected return of the annuity with a life
contingency if payments are to be made for any certain period. If the
participant (and beneficiary under a joint and survivor annuity) live beyond
their life expectancies the full amount of the payments received after the
cost basis of the annuity is recovered is fully taxable. If the participant
(and beneficiary under a joint and survivor annuity) die prior to recovering
the full cost basis of the annuity, a deduction is allowed on the
participant's (or beneficiary's) final tax return. If there is a refund
feature under the annuity, the beneficiary of the refund may recover the
remaining cost basis as payments are made.
Income Taxation of Lump Sum Distributions
If benefits are paid in a lump sum, the payment may be eligible for the
special tax treatment accorded lump sum distributions. Under the five-year
averaging method (and in certain cases, favorable ten-year averaging and
long-term capital gain treatment), the tax on the distribution is calculated
separately from taxes on other income for that year. To qualify, the
participant must have participated in the plan for at least five years and
the distribution must consist of the entire balance to the credit of the
participant. The distribution must be made in one taxable year of the
recipient and must be made (i) after the participant has attained age 59 1/2
or (ii) on account of the participant's (a) death, (b) separation from
service (not applicable to self-employed individuals), or (c) disability
(applicable only to self- employed individuals).
Eligible Rollover Distributions
Many types of distributions from qualified plans are "eligible rollover
distributions" that can be rolled over directly to another qualified plan or
an individual retirement arrangement (IRA), or rolled over by the individual
to another plan or IRA within 60 days of receipt. Death benefits received by
a spousal beneficiary may only be rolled over into an IRA. To the extent a
distribution is rolled over, it remains tax deferred. Distributions not
rolled over directly are subject to 20% mandatory withholding. See "Federal
Income Tax Withholding" below.
The taxable portion of most distributions will generally be an "eligible
rollover distribution" unless the distribution is one of a series of
substantially equal periodic payments made (not less frequently than
annually) (1) for the life (or life expectancy) of the participant or the
joint lives (or joint life expectancies) of the participant and his or her
designated beneficiary, or (2) for a specified period of ten years or more.
Nondeductible voluntary contributions may not be rolled over.
In addition, none of the following is treated an eligible rollover
distribution:
o minimum distributions required under Section 401(a)(9) of the Code (see
"Distribution Requirements and Limits" below);
o certain corrective distributions in plans subject to Sections 401(k),
401(m) or 402(g) of the Code;
o certain loans that are treated as distributions under Section 72(p) of the
Code;
o P.S. 58 costs (incurred if the plan provides life insurance protection for
participants);
o dividends paid on employer securities as described in Section 404(k) of
the Code; and
o a distribution to a non-spousal beneficiary.
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<PAGE>
If a distribution is made to a participant's surviving spouse, or to a
current or former spouse under a qualified domestic relations order, the
distribution may be an eligible rollover distribution, subject to mandatory
20% withholding, unless one of the exceptions described above applies.
If distributions eligible for rollover are in fact rolled over, the favorable
averaging rules discussed above in "Income Taxation of Lump Sum
Distributions" will not be available for future distributions.
Penalty Tax on Premature Distributions
An additional 10% penalty tax is imposed on all taxable amounts distributed
to a participant who has not reached age 59 1/2 unless the distribution falls
within a specified exception or is rolled over into an IRA or other qualified
plan. The specified exceptions are for (a) distributions made on account of
the participant's death or disability, (b) distributions (which begin after
separation from service) in the form of a life annuity or substantially equal
periodic installments over the participant's life expectancy (or the joint
life expectancy of the participant and the beneficiary), (c) distributions
due to separation from active service after age 55 and (d) distributions used
to pay certain extraordinary medical expenses.
Federal Income Tax Withholding
Mandatory Federal income tax withholding at a 20% rate will apply to all
"eligible rollover distributions" unless the participant elects to have the
distribution directly rolled over to another qualified plan or IRA. See the
description above of "Eligible Rollover Distributions."
With respect to distributions that are not eligible rollover distributions,
Federal income tax must be withheld on the taxable portion of pension and
annuity payments, unless the recipient elects otherwise. The rate of
withholding will depend on the type of distribution and, in certain cases,
the amount of the distribution. Special rules may apply to foreign
recipients, or United States citizens residing outside the United States. If
a recipient does not have sufficient income tax withheld, or make sufficient
estimated income tax payments, the recipient may incur penalties under the
estimated income tax rules. Recipients should consult their tax advisers to
determine whether they should elect out of withholding.
Requests not to withhold Federal income tax must be made in writing prior to
receiving payments and submitted in accordance with the terms of the employer
plan. No election out of withholding is valid unless the recipient provides
the recipient's correct taxpayer identification number and a U.S. residence
address.
State Income Tax Withholding
Certain states have indicated that pension and annuity withholding will apply
to payments made to residents of such states. In some states a recipient may
elect out of state income tax withholding, even if Federal withholding
applies. It is not clear whether such states may require mandatory
withholding with respect to eligible rollover distributions that are not
rolled over (as described above under "Eligible Rollover Distributions").
Contact your tax adviser to see how state withholding may apply to your
payment.
Distribution Requirements and Limits
Distributions from qualified plans generally must commence no later than
April 1 of the calendar year following the calendar year in which the
participant attains age 70 1/2. Distributions can generally be made (1) in a
lump sum payment, (2) over the life of the participant, (3) over the joint
lives of the participant and his or her designated beneficiary, (4) over a
period not extending beyond the life expectancy of the participant or (5)
over a period not extending beyond the joint life expectancies of the
participant and his or her designated beneficiary. The minimum amount
required to be distributed in each year after age 70 1/2 is described in the
Code, Treasury Regulations and IRS guidelines. If a designated beneficiary is
other than a participant's spouse, certain minimum incidental benefit
requirements also apply.
If the participant dies after required distribution has begun, payment of the
remaining interest under the plan must be made at least as rapidly as under
the method used prior to the participant's death. If a participant dies
before required distribution has begun, payment of the entire interest under
the plan must be completed within five years after death, unless payments to
a designated beneficiary begin within one year of the participant's death and
are made over the beneficiary's life or over a period certain which does not
extend beyond the beneficiary's life expectancy. If the surviving spouse is
the designated beneficiary, the spouse may delay the commencement of such
payments up until the date that the participant would have attained age 70
1/2 . Distributions received by a beneficiary are generally given the same
tax treatment the participant would have received if distribution had been
made to the participant.
If there is an insufficient distribution in any year, a 50% tax may be
imposed on the amount by which the
41
<PAGE>
minimum required to be distributed exceeds the amount actually distributed.
Failure to have distributions made as the Code and Treasury Regulations
require may result in plan disqualification.
A 15% excise tax is imposed on a participant's aggregate excess distributions
from all tax-favored retirement plans. The excise tax is in addition to the
ordinary income tax due, but is reduced by the amount (if any) of the early
distribution penalty tax imposed by the Code. In addition, in certain cases
the estate tax imposed on a deceased participant's estate will be increased
if the accumulated value of the participant's interests in tax-favored
retirement plans is excessive. The aggregate distributions or accumulations
in any year will be subject to excise tax if they exceed applicable
prescribed limits, generally the greater of $150,000 or $112,500 indexed for
inflation ($150,000 in 1995).
Spousal Requirements
In the case of many corporate and Keogh plans, if a participant is married at
the time benefit payments become payable, unless the participant elects
otherwise with written consent of the spouse, the benefit must be paid in the
form of a qualified joint and survivor annuity (QJSA). A QJSA is an annuity
payable for the life of the participant with a survivor annuity for the life
of the spouse in an amount which is not less than one-half of the amount
payable to the participant during his or her lifetime. In addition, most
plans require that a married participant's beneficiary must be the spouse,
unless the spouse consents in writing to the designation of a different
beneficiary.
CERTAIN RULES APPLICABLE TO PLAN LOANS
The following are Federal tax and ERISA rules that apply to loan provisions
of all employer plans. Employer plans may have additional restrictions.
Employers and participants should review these matters with their own tax
advisers before requesting a loan. There will not generally be any tax
liability with respect to properly made loans in accordance with an employer
plan. A loan may be in violation of applicable provisions unles it complies
with the following conditions.
o With respect to specific loans made by the plan to a plan participant, the
plan administrator determines the interest rate, the maximum term and all
other terms and conditions of the loan.
o In general, the term of the loan cannot exceed five years unles the loan
is used to acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level
payments over the term of the loan, with payments being made at least
quarterly.
o The amount of a loan to a participant, when aggregated with all other
loans to the participant from all qualified plans of the employer, cannot
exceed the greater of $10,000 or 50% of the participant's non-forfeitable
accrued benefits, and cannot exceed $50,000 in any event. This $50,000 limit
is reduced by the excess (if any) of the highest outstanding loan balance
over the previous twelve months over the outstanding balance of plan loans on
the date the loan was made.
o For loans made prior to January 1, 1987 and not renewed, modified,
renegotiated or extended after December 31, 1986 the $50,000 maximum
aggregate loan balance is not required to be reduced, the quarterly
amortization requirement does not apply, and the term of a loan may exceed
five years if used to purchase the principal residence of the participant or
a member of his or her family, as defined in the Code.
o Only 50% of the participant's vested account balance may serve as security
for a loan. To the extent that a participant borrows an amount which should
be secured by more than 50% of the participant's vested account balance, it
is the responsibility of the trustee or plan administrator to obtain the
additional security.
o Loans must be available to all plan participants, former participants who
still have account balances under the plan, beneficiaries and alternate
payees on a reasonably equivalent basis.
o Each new or renewed loan must bear a reasonable rate of interest
commensurate with the interest rates charged by persons in the business of
lending money for loans that would be made under similar circumstances.
o Many plans provide that the participant's spouse must consent in writing
to the loan.
o Except to the extent permitted in accordance with the terms of a
prohibited transaction exemption issued by DOL, loans are not available (i)
in a Keogh (non-corporate) plan to an owner-employee or a partner who owns
more than 10% of a partnership or (ii) to 5% shareholders in an S
corporation.
o If the loan does not qualify under the conditions above, the participant
fails to repay the interest or principal when due, or in some instances, if
the participant separates from service or the plan is terminated, the amount
borrowed or not repaid may be treated as a distribution. The participant
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<PAGE>
may be required to include as ordinary income the unpaid amount due and a 10%
penalty tax on early distributions may apply. The plan should report the
amount of the unpaid loan balance to the IRS as a distribution. See "Tax
Aspects of Distributions From a Plan" above.
o The loan requirements and provisions of RIA shall apply regardless of the
plan administrator's guidelines.
IMPACT OF TAXES TO EQUITABLE LIFE
Under existing Federal income tax law, no taxes are payable on investment
income and capital gains of the Investment Funds that are applied to increase
the reserves under the Contracts. Accordingly, Equitable Life does not
anticipate that it will incur any Federal income tax liability attributable
to income allocated to the variable annuity contracts participating in the
Investment Funds and it does not currently impose a charge for Federal income
tax on this income when it computes Unit values for the Investment Funds. If
changes in Federal tax laws or interpretations thereof would result in
Equitable Life being taxed, then Equitable Life may impose a charge against
the Investment Funds (on some or all Contracts) to provide for payment of
such taxes.
CERTAIN RULES APPLICABLE TO PLANS
DESIGNED TO COMPLY WITH SECTION
404(C) OF ERISA.
Section 404(c) of ERISA, and the related DOL regulation, provide that if a
plan participant or beneficiary exercises control over the assets in his or
her plan account, plan fiduciaries will not be liable for any loss that is
the direct and necessary result of the plan participant's or beneficiary's
exercise of control. As a result, if the plan complies with Section 404(c)
and the DOL regulation thereunder, the plan participant can make and is
responsible for the results of his or her own investment decisions.
Section 404(c) plans must provide, among other things, that a broad range of
investment choices are available to plan participants and beneficiaries and
must provide such plan participants and beneficiaries with enough information
to make informed investment decisions. Compliance with the Section 404(c)
regulation is completely voluntary by the plan sponsor, and the plan sponsor
may choose not to comply with Section 404(c).
The RIA Program provides employer plans with the broad range of investment
choices and information needed in order to meet the requirements of the
Section 404(c) regulation. If the plan is intended to be a Section 404(c)
plan, it is, however, the plan sponsor's responsibility to see that the
requirements of the DOL regulation are met. Equitable Life and its Agents
shall not be responsible if a plan fails to meet the requirements of Section
404(c).
43
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C> <C>
Part 1: Additional Information About the Momentum Program Page 3
Part 2: Automatic Minimum Withdrawal Page 3
Part 3: The Reorganization Page 4
Part 4: Accumulation Unit Values Page 4
Part 5: Annuity Unit Values Page 5
Part 6: Description of Sources Page 6
Part 7: How We Deduct the Quarterly Administrative Charge Page 6
Part 8: Custodian and Independent Accountants Page 6
Part 9: Distribution Page 7
Part 10: Money Market Fund Yield Information Page 7
Part 11: Other Yield Information Page 8
Part 12: Long-Term Market Trends Page 8
Part 13: Financial Statements Page 10
</TABLE>
HOW TO OBTAIN THE MOMENTUM STATEMENT OF
ADDITIONAL INFORMATION
Send this request form to:
Momentum Administrative Service
P. O. Box 2919
New York, N.Y. 10116
Please send me a Momentum Statement of Additional Information
------------------------------------------------------------------
Name
------------------------------------------------------------------
Address
------------------------------------------------------------------
City State Zip
44
<PAGE>
EQUI-VEST(REGISTERED TRADEMARK) AND MOMENTUM
PERSONAL RETIREMENT PROGRAMS
AND EMPLOYER SPONSORED RETIREMENT PROGRAMS
STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1996
VARIABLE ANNUITY CONTRACTS FUNDED THROUGH THE
INVESTMENT FUNDS OF SEPARATE ACCOUNT A
O MONEY MARKET O GROWTH & INCOME ASSET ALLOCATION SERIES:
O INTERMEDIATE O EQUITY INDEX O CONSERVATIVE INVESTORS
GOVERNMENT O COMMON STOCK O BALANCED
SECURITIES O GLOBAL O GROWTH INVESTORS
O QUALITY BOND O INTERNATIONAL
O HIGH YIELD O AGGRESSIVE STOCK
ISSUED BY:
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
- -----------------------------------------------------------------------------
Home Office: 787 Seventh Avenue, New York, NY 10019
Processing Offices: The addresses for our Processing
Offices are in Part 1 of the prospectus
under the heading "Services We
Provide."
- -----------------------------------------------------------------------------
This statement of additional information (SAI) is not a prospectus. It should
be read in conjunction with the Separate Account A prospectus for
EQUI-VEST/MOMENTUM, dated May 1, 1996. Definitions of special terms used in
the SAI are found in the prospectus.
A copy of the prospectus is available free of charge by writing the
Processing Office, by calling toll-free, 1-800-628-6673 for EQUI-VEST or
1-800-528-0204 for MOMENTUM, or by contacting your Equitable Life Agent.
- -----------------------------------------------------------------------------
Copyright 1996 The Equitable Life Assurance Society of the United States, New
York, New York 10019
All rights reserved.
_________________
Cat. No. 126940
888-1110
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
- ----------- ------------------------------------------------------------ --------
<S> <C> <C>
Part 1 Additional Information about the MOMENTUM Program 3
- ----------- ------------------------------------------------------------ --------
Part 2 How We Deduct the MOMENTUM Quarterly Administrative Charge 3
- ----------- ------------------------------------------------------------ --------
Part 3 Description of Sources for the MOMENTUM Program 4
- ----------- ------------------------------------------------------------ --------
Part 4 Additional Loan Provisions 4
- ----------- ------------------------------------------------------------ --------
Part 5 Tax Rules: Special Aspects 7
- ----------- ------------------------------------------------------------ --------
Part 6 Required Minimum Distributions 9
- ----------- ------------------------------------------------------------ --------
Part 7 Accumulation Unit Values 10
- ----------- ------------------------------------------------------------ --------
Part 8 Calculation of Annuity Payments 10
- ----------- ------------------------------------------------------------ --------
Part 9 The Reorganization 12
- ----------- ------------------------------------------------------------ --------
Part 10 Money Market Fund Yield Information 12
- ----------- ------------------------------------------------------------ --------
Part 11 Other Yield Information 13
- ----------- ------------------------------------------------------------ --------
Part 12 Distribution 13
- ----------- ------------------------------------------------------------ --------
Part 13 Key Factors in Retirement Planning 13
- ----------- ------------------------------------------------------------ --------
Part 14 Long Term Market Trends 18
- ----------- ------------------------------------------------------------ --------
Part 15 Custodian and Independent Accountants 20
- ----------- ------------------------------------------------------------ --------
Part 16 Financial Statements 20
- ----------- ------------------------------------------------------------ --------
</TABLE>
2
<PAGE>
PART 1--ADDITIONAL INFORMATION ABOUT THE MOMENTUM PROGRAM
MASTER PLAN ELIGIBILITY REQUIREMENTS.
Under the Master Plan, the Employer specifies the eligibility requirements
for its plan in the participation agreement. The Employer may exclude any
employee who has not attained a specified age (not to exceed 21) and
completed a specified number of years (not to exceed two) in each of which he
completed 1,000 hours of service. No more than one year of eligibility
service may be required for a 401(k) plan.
VESTING UNDER THE MASTER PLAN.
Vesting refers to the nonforfeitable portion of a Participant's Retirement
Account Value and loans attributable to Employer and matching contributions,
under the Master Plan. The Participant's Retirement Account Value
attributable to salary-deferral contributions, post-tax employee
contributions, prior plan contributions, qualified non-elective and qualified
matching contributions is nonforfeitable at all times.
A Participant will become fully vested in all benefits if still employed at
death, disability, attainment of normal retirement age or upon termination of
the plan. If the Participant terminates employment before that time, any
benefits that have not yet become vested under the plan's vesting schedule
will be forfeited.
Except as described below in the case of certain non-top heavy plans,
benefits must vest in accordance with any of the schedules below or one at
least as favorable to Participants as Schedule B or C:
<TABLE>
<CAPTION>
SCHEDULE A SCHEDULE B SCHEDULE C
YEARS OF VESTED VESTED VESTED
SERVICE PERCENTAGE PERCENTAGE PERCENTAGE
- ---------- ------------ ------------ ------------
<S> <C> <C> <C>
1 0% 0% 0%
2 100 20 0
3 100 40 100
4 100 60 100
5 100 80 100
6 100 100 100
</TABLE>
If the plan requires more than one year of service for participation, it must
use Schedule A or one at least as favorable to Participants.
Provided the Employer plan is not "top-heavy" and does not require more than
one year of service for participation, an Employer may, in accordance with
provisions of the Master Plan instead elect one of the following vesting
schedules or one at least as favorable to Participants:
<TABLE>
<CAPTION>
SCHEDULE F SCHEDULE G
YEARS OF VESTED VESTED
SERVICE PERCENTAGE PERCENTAGE
- ------------- ------------ ------------
<S> <C> <C>
less than 3 0% 0%
3 20 0
4 40 0
5 60 100
6 80 100
7 100 100
</TABLE>
BENEFIT DISTRIBUTIONS.
In order for you to begin receiving benefits (including annuity payments)
under a Master Plan, your Employer must send us your properly completed
election of benefits form and, if applicable, beneficiary designation form.
If we receive your properly completed forms on or before the 15th of the
month, your benefits will commence as of the close of business on the first
Business Day of the next month; if your forms arrive after the 15th, your
benefits will commence as of the close of business on the first Business Day
of the second following month.
In order for you to begin receiving benefits (including annuity payments)
under an individually-designed or prototype defined contribution plan, your
Employer must send us a properly completed request for disbursement form. We
will send single sum payments to your Plan Trustee as of the close of
business on the Business Day we receive a properly completed form. If you
wish to receive annuity payments, your Plan Trustee may purchase an annuity
contract from us. The annuity contract will be purchased on the Business Day
we receive a properly completed form, and payments will commence on that
Business Day.
PART 2--HOW WE DEDUCT
THE MOMENTUM QUARTERLY ADMINISTRATIVE CHARGE
Each calendar quarter we currently deduct an administrative charge of $7.50
or, if less, .50% of the total of your Retirement Account Value
3
<PAGE>
plus the amount of any Active Loan from your Retirement Account Value. No
deduction is made, however, if your Retirement Account Value equals or
exceeds $25,000. We will deduct this charge in a specified order of Sources
and Investment Options. The order of Sources is: employer contributions,
matching contributions, qualified non-elective and qualified matching
contributions, prior plan contributions, elective contributions and post-tax
contributions. The order of Investment Options is: Guaranteed Interest
Account, Common Stock, Balanced, Aggressive Stock, Money Market, Intermediate
Government Securities, Growth Investors, Conservative Investors, High Yield,
Global, Growth & Income, Equity Index, Quality Bond and International Funds.
For example, on the last Business Day of a calendar quarter we will first
attempt to deduct the administrative charge from employer contributions
within the Guaranteed Interest Account. If there is no money in the
Guaranteed Interest Account, we will attempt to deduct the charge from the
Common Stock Fund, then Balanced, etc. If there are no employer contributions
in any of the Investment Options, we will go to the next Source, employer
matching contributions, and attempt to deduct the charge from the Investment
Options in the same order described above.
PART 3--DESCRIPTION OF CONTRIBUTION SOURCES
FOR THE MOMENTUM PROGRAM
There are six types of sources of contributions under qualified plans:
EMPLOYER CONTRIBUTIONS
These are contributions made to a plan for the benefit of Participants and
beneficiaries by the Employer not covered by the remaining sources.
MATCHING CONTRIBUTIONS
These are Employer Contributions which are allocated to a Participant's
account under a plan by reason of the Participant's post-tax contributions or
elective contributions to the plan.
POST-TAX CONTRIBUTIONS
These are after-tax contributions made by a Participant in accordance with
the terms of a plan.
SALARY-DEFERRAL CONTRIBUTIONS
These are contributions to a plan that are made pursuant to a cash or
deferred election (normally in accordance with the terms of a qualified cash
or deferred arrangement under Section 401(k) of the Code).
PRIOR PLAN CONTRIBUTIONS
These are contributions that are transferred or rolled over from another
qualified plan or a conduit IRA (as described in Section 408(d)(3)(A)(ii) of
the Code).
QUALIFIED NON-ELECTIVE AND QUALIFIED
MATCHING CONTRIBUTIONS
These are employer contributions made pursuant to the terms of a plan subject
to either or both of the special nondiscrimination tests applicable to plans
that are subject to Section 401(k) (qualified cash or deferred arrangements)
or Section 401(m) (applicable to plans that accept matching contributions
and/or post- tax contributions) of the Code. Such qualified non-elective and
qualified matching contributions are made by an Employer in order to meet the
requirements of either or both of the nondiscrimination tests set forth in
Section 401(k) and 401(m) of the Code. This Source is called the Employer
401(k) Account in the Master Plan.
PART 4--ADDITIONAL LOAN PROVISIONS
MOMENTUM
Under the MOMENTUM Contract, (1) the minimum amount of the loan is $1,000 and
(2) the maximum amount of the loan is 50% of the Participant's vested
Retirement Account Value. In no event may any plan loan be greater than
$50,000 less the highest outstanding loan balance in the preceding twelve
calendar months. You may specify from which Investment Options the plan loan
is to be deducted when you
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<PAGE>
request the loan. The loan term must comply with applicable law. See the
prospectus "Part 10: Federal Tax and ERISA Matters."
If there is a loan outstanding under an EQUI- VEST Corporate Trusteed
Contract and you convert it to the MOMENTUM Contract, the retirement Account
Value established for the Participant under the MOMENTUM Contract will be
equal to the Annuity Account Value under the EQUI-VEST Contract, less the
principal amount of the loan outstanding on the effective date of conversion.
That is, the annuity Account Value under the EQUI-VEST Contract will be
reduced by the principal amount of the loan. Amounts that were in the
EQUI-VEST loan reserve account in excess of the principal balance of the loan
may be withdrawn or transferred, subject to any restrictions in the MOMENTUM
Contract.
If you, as the employer, are transferring plan assets to the MOMENTUM
Program, outstanding plan loans may also be transferred to the MOMENTUM
Contract. We refer to these loans as "takeover loans." There will be no
contingent withdrawal charge imposed if a takeover loan defaults. Nor will
such loans, if defaulted, be deemed withdrawals for purposes of calculating
the minimum death benefits. Repayments of takeover loans will be allocated to
the Guaranteed Interest Account. Loans converted from EQUI-VEST Corporate
Trusteed to MOMENTUM are not takeover loans.
EQUI-VEST
The EQUI-VEST Corporate Trusteed and non- ERISA TSA Loans have the following
features in common:
The term of a TSA or Corporate Trusteed loan is five years unless the loan is
used to acquire the Participant's primary residence. Our contract limit for
loans used to purchase the Participant's primary residence is 10 years.
The loan term under Corporate Trusteed and TSA Contracts may not extend
beyond the earliest of: (1) election and commencement of annuity benefits,
(2) the date of termination of the Contract and (3) the date a death benefit
is paid.
Payment to us to cover loan interest and to amortize a loan will be due
beginning the first day of the third month following the effective date of
the loan and quarterly thereafter. All loan payments made by check must be
drawn on a bank in the U.S., in U.S. dollars and made payable to Equitable
Life. Loan payments received prior to the due date will be credited only on
the next payment due date. Any payments we receive will first be applied to
interest, with the balance applied to repayment of the loan.
Only one loan is permitted at any one time. At anytime after the loan has
been issued, a loan may be repaid in full and terminated earlier than
scheduled.
Many plans provide that the Participant's spouse must consent in writing to
the loan.
On the loan effective date, we will transfer to a loan reserve account an
amount equal to the loan plus 25% of the loaned amount. The additional 25% is
intended as a reserve to cover the contingencies including unpaid interest
and applicable withdrawal charges. Initially an amount equal to the loan
amount will be held in our general account and will earn interest at an
effective annual rate of 4% during the loan term, whereas the additional 25%
reserve will be held in the general account but will earn interest at the
Guaranteed Interest Account's current guaranteed interest rate applicable to
the contract.
You may specify from which Investment Options the loan and loan reserve are
to be deducted when you request the loan. If not specified, we will prorate
the amounts withdrawn from the Investment Options based on the amounts in
each Investment Option. No partial withdrawals or transfers from the loan
reserve account are permitted.
On the first day of the third month following the effective date of the loan
and quarterly thereafter (or on the first Business Day thereafter, if such
day is not a Business Day), the amount of interest earned at 4% annually
during the prior quarter will be transferred to the Guaranteed Interest
Account.
Any loan payment will result in a transfer of the amount of principal repaid
from the portion of the loan reserve account that earns 4% interest to the
Guaranteed Interest Account, and then may be withdrawn (if otherwise
permitted) or transferred to one or more Investment Funds.
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Upon full repayment of the loan, any amounts remaining in the loan reserve
account will be transferred to the Guaranteed Interest Account and may then
be withdrawn (if otherwise permitted) or transferred among the Investment
Funds.
EQUI-VEST Corporate Trusteed Loans
The EQUI-VEST Trusteed Loan Agreement and Application is entered into between
the Participant and the trustee. Equitable performs services specified in the
Agreement on behalf of the Trustee. The Trustee (or employer, or other plan
administrator and not Equitable) is responsible for monitoring compliance
with Code and ERISA requirements and the requirements of the particular plan.
The Trustee makes repayment to Equitable.
The trustee of a qualified plan purchasing a Corporate Trusteed Contract may
set any interest rate for a loan so long as it is not less than 6% nor more
than the maximum rate permitted by applicable law. The trustee (Contract
Owner) must bill the plan participant (Annuitant) for the difference, if any,
between 6% and the rate the trustee charges. Under the terms of the Code and
ERISA, if an unreasonably high or low rate of interest is charged for loans,
the plan may be disqualified and the amount of the loan may be treated as a
taxable distribution. In that case, the trustee would be required to report
the "deemed" distribution to the Internal Revenue Service (IRS).
For Corporate Trusteed Contracts, the "loan effective date" means either (1)
the first day of the month following the date the loan agreement, properly
completed and signed by the plan participant (Annuitant), is approved by the
trustee (Contract Owner) and received and accepted by us at our Processing
Office, if the loan agreement is received on or before the 15th day of the
month, or (2) the first day of the second month following the date the loan
agreement, properly completed and signed by the plan participant (Annuitant),
is approved by the trustee (Contract Owner) and received and accepted by us
at our Processing Office, if the loan agreement is received after the 15th
day of the month.
The loan amount is based on the Participant's vested interest in the Plan and
the Annuity Account Value of the EQUI-VEST Contract on the loan effective
date.
If loan interest (except interest due at the end of the loan term) or
required principal repayments are not received at our Processing Office
within fifteen days after the due date, or if any loan principal and accrued
interest are due at the end of the loan term, the loan is in default. We will
make a partial withdrawal from the additional loan reserve account in an
amount sufficient to pay the amount due plus any applicable withdrawal
charges and any required income tax withholding. Such a withdrawal could
result in a penalty tax or the disqualification of your Trusteed Contract or
the qualified plan.
The trustee is required to report to the IRS the amount of the default as a
deemed taxable distribution which may also be subject to penalty tax.
EQUI-VEST Non-ERISA TSA Loans
The EQUI-VEST TSA Loan Agreement permits only one loan outstanding under the
contract at any time. It further provides that the minimum loan amount is
$3,000 and the maximum is $50,000 (less the highest outstanding loan balance
in the preceding twelve calendar months). The maximum amount of the loan is
80% of the Annuity Account Value, if the amount of the Annuity Account Value
is at least $3,750 but less than $12,500; $10,000 if the amount of the
Annuity Account Value is at least $12,500 but less than $20,000; or 50% of
the Annuity Account Value if the amount of the Annuity Account Value is
$20,000 or more.
The Annuity Account Value is measured on the "Loan Effective Date" which is
the first day of the month following the date we approve a properly completed
loan agreement form.
If a required loan repayment on a TSA Contract is not made, we will treat the
amount equal to the interest and principal payment due as a default. We will
also deduct a default charge (as described below) and, if applicable, any
required income tax withholding. We will treat such amount (plus any required
income tax withholding) as a "deemed distribution." Such amount will be
taxable and also may be subject to a penalty tax.
The default charge on the amount of deemed distribution is equal to the
applicable withdrawal charge which would have applied if such amount had been
withdrawn from the Contract.
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Amounts in default will be in the loan reserve account in suspense until
Federal tax rules permit such amounts to be deducted from the TSA Contract to
repay your obligation to us.
Currently we default your loan missed- payment-by-missed-payment, but under
Federal proposed income tax regulations, we may be required to default the
entire unpaid loan balance and unpaid interest at the time of the default.
Under these proposed regulations, we could be required to treat the entire
remaining outstanding balance of the loan (including any unpaid interest) as
a deemed taxable distribution in the year of the default which is subject to
income tax reporting and early distribution tax penalty. See Part 10 of the
Prospectus. If your contract is subject to Federal income tax withdrawal
restrictions at the time you default, because of the interplay between
Federal income tax rules and State insurance law requisites, we may be
required to continue to charge interest and credit interest on the unpaid
loan balance until such defaulted payment liability can be satisfied by an
actual distribution. This may result in additional taxable income to you
without any additional offset. Interest credited on amounts in default could
result in additional taxable income in the amount of the interest credited
and could be subject to a penalty tax. See "Penalty Tax on Early
Distributions" and "Distributions from Qualified Plans and TSAs" in Part 10
of the Prospectus.
ERISA TSA Loans
(beginning on or about 7/96)
Loans under ERISA TSA plans are expected to be permitted beginning around
July 1996 in those states where approved. Interested Contract Owners will be
notified of the details of forms and other special rules at that time.
However, the rules will be governed by ERISA regulations and therefore are
expected to be similar to those described above for Corporate Trusteed loans.
Equitable will set a reasonable interest rate for plan loans as defined
below, unless the plan administrators notify us of their intent to set their
own rate. If we set the rate, it will be equal to the Prime Rate (the base
rate on corporate loans posted by at least 75% of the nation's 30 largest
banks) as published in the Wall Street Journal on the first Monday of the
last month of the calendar quarter prior to the effective date of the loan,
plus one percentage point (1.00%).
PART 5--TAX RULES:
SPECIAL ASPECTS
EQUI-VEST ONLY
DISTRIBUTIONS AFTER DEATH OF THE CONTRACT
OWNER OF A NON-QUALIFIED ANNUITY
If a Contract Owner dies after distributions in the form of an annuity have
begun but prior to the time the entire interest in the Contract has been
distributed, the remaining portion of that interest must be distributed at
least as rapidly as under the method of distribution in effect at the time of
the Contract Owner's death.
If the Contract Owner is not the Annuitant and dies prior to the annuity
starting date, the entire interest must be (1) distributed within five years
after the death of the Contract Owner, or (2) distributed as annuity payments
for the life of the Contract Owner's beneficiary (or over a period that does
not extend beyond the life expectancy of the Contract Owner's beneficiary),
provided distributions begin within one year of the Contract Owner's death.
An exception to this rule applies, however, if the Contract Owner's spouse is
the Contract Owner's designated beneficiary for this purpose. In such case
the spouse may continue the contract as the new Contract Owner.
If the Contract Owner and the Annuitant are the same and a Successor
Annuitant-Owner has not been elected, the death benefit provisions of the
contract discussed in the prospectus, will apply on the death of the Contract
Owner-Annuitant. Any optional mode of settlement selected under those
provisions must also satisfy the above distribution rules.
NON-QUALIFIED ANNUITY CONTRACT
AGGREGATION RULES
We are required to aggregate (link together and treat as one contract)
certain nonqualified annuity contracts. Aggregation is required only for the
purpose of calculating the taxable
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amount on any distribution, including surrenders, from one or more "linked"
contracts. For this reason, the amount subject to income tax withholding and
tax information reporting may indicate a different taxable amount than the
Contract Owner might otherwise anticipate.
Contracts purchased after October 21, 1988 must be aggregated if they are
purchased in the same calendar year. Contracts are required to be linked if
they are issued by the same insurance company or by a related affiliated
company (for example, Equitable Life and its wholly-owned subsidiary
Equitable Variable Life Insurance Company).
CERTAIN DISTRIBUTIONS FROM
TRUSTEED CONTRACTS
In the case of an EQUI-VEST Trusteed Contract, the trustee, as Contract
Owner, may transfer ownership of the Contract to the Annuitant in certain
circumstances. This transfer constitutes a distribution from a qualified
plan. Although the Annuitant will receive a tax information report on the
distribution from the plan administrator, this transaction is not a taxable
event to the Annuitant until any payments are made under the transferred
Contract. The transfer of ownership from the Trustee to the Annuitant is not
an IRA rollover. If they otherwise qualify as "eligible rollover
distributions," amounts distributed from the Contract, however, may
subsequently be directly rolled over into an individual retirement
arrangement.
SIMPLIFIED EMPLOYEE PENSION PLAN
(SEPS)
When an employer establishes a SEP for its employees, contributions for each
eligible employee can be made under a Contract issued as an IRA.
Employers with 25 or fewer eligible employees for the prior taxable year may
allow such employees to make salary reduction contributions to a SEP
(SARSEP). SARSEP arrangements can be offered only if at least 50% of the
eligible employees elect to participate in the SARSEP. Special
nondiscrimination rules apply to highly compensated employees in a SARSEP.
The percentage of compensation deferred by any eligible highly compensated
employee cannot exceed 125% of the average deferred compensation percentage
for all eligible non-highly compensated employees. In addition, rules similar
to those applicable to 401(k) programs and salary reduction TSAs apply to
distributions of excess elective deferrals and excess contributions.
Contributions. Due to statutory limits, in 1996 an employer's contribution to
a SEP for an employee, including any salary reduction contributions, cannot
exceed the lesser of $22,500 or 15% of the employee's compensation. The
employee's compensation is determined without taking into account the
employer's contribution to the SEP, and is statutorily limited to $150,000.
This figure may be adjusted for cost of living changes in future years.
The employer must make a contribution for each employee who has reached age
21 and has worked for the employer during at least three of the preceding
five years. Contributions are not required for employees who (1) earn less
than $300 as indexed for inflation ($400 in 1996) in a year, (2) are covered
by a collective bargaining agreement or (3) are non-resident aliens who
receive no earned income from the employer from sources within the United
States. Generally, SEP plans are maintained on a calendar year basis.
Employer contributions must be made under a written program which provides
that (i) withdrawals are permitted, (ii) contributions are made under an
allocation formula and (iii) bear a uniform relationship to compensation. As
noted above, compensation is limited to $150,000. Contributions cannot
discriminate in favor of highly compensated employees. Contributions to the
SEP may take employer-paid Social Security benefits into account, provided
the level of integration satisfies the limits contained in the Code.
Except as otherwise indicated in this section, all of the IRA rules discussed
in Part 10 of the prospectus, including those relating to revocation,
distributions and penalties for early, minimum and excess distributions,
apply to SEPs.
EQUI-VEST AND MOMENTUM
LIMITS ON DISTRIBUTIONS
A 15% excise tax applies to an individual's aggregate excess distributions
from all tax-
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favored retirement plans (not including EDC plans). The excise tax is in
addition to the ordinary income tax due but is reduced by the amount (if any)
of the early distribution penalty tax imposed by the Code. The aggregate
distributions in any year will be subject to excise tax if they exceed
$155,000 in 1996.
In addition, in certain cases the estate tax imposed on a deceased
individual's estate will be increased if the accumulated value of the
individual's interests in qualified annuities and tax favored retirement
plans is excessive. Whether a lump sum distribution is excessive for excise
tax purposes is separately calculated. The applicable limits are five times
the above limits.
PENALTIES FOR EXCESS DEFERRALS
If an individual's aggregate elective deferrals under 401(k) programs,
SARSEPs and TSAs exceed the permitted elective deferral limit in any taxable
year (generally $7,000 as indexed; $9,500 in 1996), the individual will be
taxed twice on the excess deferral--once in the year of the deferral and
again when a distribution occurs. If the individual notifies the affected
plan or plans and, by April 15 of the following year, receives a distribution
of the excess deferral and related income, the excess deferral will only be
taxed in the year of deferral. Any related income will be taxed in the year
of the distribution. The distribution of the excess deferral plus income is
not treated as a withdrawal of restricted funds, is not subject to the 10%
penalty tax on early retirement distributions and is not an eligible rollover
distribution subject to 20% mandatory federal income tax withholding. If
excess deferrals remain in the plan, the plan may be disqualified.
PENALTIES IMPOSED ON EMPLOYERS FOR
EXCESS CONTRIBUTIONS
A non-tax-exempt employer is subject to a 10% penalty tax for nondeductible
contributions to a qualified plan or SEP.
If a 401(k) program or defined contribution plan with an employer matching
feature receives employer contributions for highly compensated employees
which exceed applicable nondiscrimination limits for any plan year, the
employer is subject to a 10% penalty on any such excess contributions. The
employer may avoid the penalty if the plan distributes the excess, plus
income, within 2 1/2 months after the close of the plan year.
Unless the amount distributed is under $100, the recipient of the
distribution is taxed on the distribution and the related income in the year
the contribution was made. Such a distribution is not treated as a withdrawal
of restricted funds, is not subject to the 10% penalty tax on early
retirement distributions and is not an eligible rollover distribution subject
to 20% mandatory Federal income tax withholding.
PART 6--REQUIRED MINIMUM DISTRIBUTIONS OPTION/AUTOMATIC MINIMUM
WITHDRAWAL OPTION
If you elect this feature designed for Annuitants and Participants age 70 1/2
or older, described in the prospectus, each year we calculate your minimum
distribution amount by using the Annuity Account Value or Retirement Account
Value, as appropriate, as of December 31 of the prior calendar year and then
calculating the minimum distribution amount based on the various choices you
make.
You may choose whether the Required Minimum Distribution Option (EQUI-VEST)
or Automatic Minimum Withdrawal Option (MOMENTUM) will be calculated based on
your life expectancy alone, or based on the joint life expectancies of you
and your spouse. You may also choose (1) to have us recalculate your life
expectancy (or joint life expectancy) each year, or (2) not recalculate your
life expectancy. If you have chosen a joint-life expectancy method of
calculation with your spouse, you may choose to either have both lives
recalculated or not recalculated.
When we recalculate life expectancy, that means that each calendar year we
see what each individual's life expectancy is under Treasury Regulations. If
life expectancy is not recalculated, it means that it is determined once, for
the initial year, and in every subsequent year that number is reduced by one
more year.
If you do not specify a method, we will base a calculation on your life
expectancy alone, recal-
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culating it each year. If you do not specify that we should recalculate life
expectancy, you cannot later apply your Annuity Account Value/ Retirement
Account Value to an annuity payout.
The minimum distribution calculation takes into account partial withdrawals
made during the current calendar year but prior to the date we determine your
minimum distribution amount, except that when the Required Minimum
Distribution is elected in the year in which the Annuitant attains age 71 1/2,
no adjustment for partial withdrawals will be made for any withdrawals made
between January 1 and April 1 of the year in which the election is made.
Our Options should not be elected if the Annuitant continues to work beyond
age 70 1/2 and contributions continue to be made into the Contract. To do so
could result in an insufficient distribution. You must request the amount to
be separately calculated each year to ensure that you withdraw the correct
amount.
Note that our automated Options do not provide for all the flexibility
provided by Federal law. For example, Federal law permits you to recalculate
your life expectancy and not your spouse's and to choose the joint life
expectancy method with a beneficiary other than your spouse. See your tax
advisor.
PART 7--ACCUMULATION
UNIT VALUES
Accumulation Unit Values are determined at the end of each Valuation Period
for each of the Investment Funds. The Accumulation Unit Values for EQUI-VEST
and MOMENTUM may vary. The method of calculating Accumulation Unit Values is
set forth below.
The Accumulation Unit Value for an Investment Fund for any Valuation Period
is equal to the Accumulation Unit Value for the preceding Valuation Period
multiplied by the Net Investment Factor for that Investment Fund for that
Valuation Period. The NET INVESTMENT FACTOR is (a/b)- c where:
(a) is the value of the Investment Fund's shares of the corresponding
Portfolio at the end of the Valuation Period before giving effect to
any amounts allocated to or withdrawn from the Investment Fund for the
Valuation Period. For this purpose, we use the share value reported to
us by The Hudson River Trust. This share value is after deduction for
investment advisory fees and direct expenses of The Hudson River Trust.
(b) is the value of the Investment Fund's shares of the corresponding
Portfolio at the end of the preceding Valuation Period (after any
amounts allocated or withdrawn for that Valuation Period).
(c) is the daily Separate Account asset charge for the expenses of the
contracts times the number of calendar days in the Valuation Period,
plus any charge for taxes or amounts set aside as a reserve for taxes.
PART 8--CALCULATION OF ANNUITY PAYMENTS
The calculation of monthly annuity payment under a Contract takes into
account the number of annuity units of each Investment Fund credited under a
Contract, their respective annuity unit values, and a Net Investment Factor.
The annuity unit values used for EQUI- VEST and MOMENTUM may vary, although
the method of calculating annuity unit values set forth below applies to all.
Annuity unit values will also vary by Investment Fund.
For each Valuation Period, the adjusted Net Investment Factor is equal to the
Net Investment Factor for the Fund reduced for each day in the Valuation
Period by:
o .00013366 of the Net Investment Factor for a Contract with an assumed base
rate of net investment return of 5% a year; or
o .00009425 of the Net Investment Factor for a Contract with an assumed base
rate of net investment return of 3 1/2 %.
Because of this adjustment, the annuity unit value rises and falls depending
on whether the actual rate of net investment return (after charges) is higher
or lower than the assumed base rate.
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The assumed base rate will be 5%, except in states where that rate is not
permitted. Annuity payments based upon an assumed base rate of 3 1/2 % will
at first be smaller than those based upon a 5% assumed base rate. Payments
based upon a 3 1/2 % rate, however, will rise more rapidly when unit values
are rising, and payments will fall more slowly when unit values are falling
than those based upon a 5% rate.
The amounts of variable annuity payments are determined as follows:
Payments normally start on the Business Day specified on your election form,
or on such other future date as specified therein. The first three monthly
payments are the same. Each of the first three payments will be based on the
amount specified in the Tables Of Guaranteed Annuity Payments in the
applicable EQUI- VEST or MOMENTUM Contract.
The first three payments depend on the assumed base rate of net investment
return and the form of annuity chosen (and any fixed period). If the annuity
involves a life contingency, the risk class and the age of the Annuitants
will affect payments.
Payments after the first three will vary according to the investment
performance of the Investment Fund(s) selected to fund the variable payments.
After that, each monthly payment will be calculated by multiplying the number
of annuity units credited by the average annuity unit value for the selected
fund for the second calendar month immediately preceding the due date of the
payment. The number of units is calculated by dividing the first monthly
payment by the annuity unit value for the Valuation Period which includes the
due date of the first monthly payment. The average annuity unit value is the
average of the annuity unit values for the Valuation Periods ending in that
month.
Illustration of Calculation of Annuity Payments. To show how we determine
variable annuity payments, assume that the Annuity Account Value for an
EQUI-VEST Series 100 Contract on a retirement date is enough to fund an
annuity with a monthly payment of $100 and that the annuity unit value of the
selected Investment Fund for the Valuation Period that includes the due date
of the first annuity payment is $3.74. The number of annuity units credited
under the Contract would be 26.74 (100 divided by 3.74 = 26.74). Based on a
hypothetical average annuity unit value of $3.56 in October 1995, the annuity
payment due in December 1995 would be $95.19 (the number of units (26.74)
times $3.56).
The examples below show what the annuity payment would have been for December
31, 1995 for each base rate of net investment return, assuming that $100,000
was applied at the beginning of each period shown, for a female age 75, to
purchase a variable Life Annuity with 10 Years Period Certain, with initial
payment of $714.56 and $793.28, using assumed base rates of 3.5% and 5.0%
respectively:
<TABLE>
<CAPTION>
BASE THREE SINCE
RATE ONE YEAR YEARS FIVE YEARS TEN YEARS INCEPTION
------- -------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Money Market 3.50% 719.38 700.11 699.04 794.68 --
5.00% 789.41 746.10 724.04 765.62 --
Intermediate
Government
Securities 3.50% 759.92 730.08 -- -- 794.34
5.00% 834.01 778.23 -- -- 825.35
Quality Bond 3.50% 777.42 -- -- -- 691.37
5.00% 853.21 -- -- -- 745.08
High Yield 3.50% 795.57 865.32 1,098.83 -- 1,083.47
5.00% 873.13 922.39 1,137.58 -- 1,058.18
Growth & Income 3.50% 817.45 -- -- -- 763.55
5.00% 897.14 -- -- -- 822.87
Equity Index 3.50% 885.52 -- -- -- 859.98
5.00% 971.85 -- -- -- 932.40
Common Stock 3.50% 875.39 970.87 1,252.91 1,768.49 --
5.00% 960.92 1,035.81 1,299.97 1,709.63 --
Global 3.50% 791.20 999.48 1,179.34 -- 1,149.98
5.00% 868.34 1,065.40 1,220.94 -- 1,133.82
International 3.50% -- -- -- -- 740.62
5.00% -- -- -- -- 815.85
Aggressive
Stock 3.50% 857.12 875.87 1,443.36 2,210.63 --
5.00% 940.24 931.75 1,489.41 2,111.67 --
The Asset
Allocation
Series:
Conservative
Investors 3.50% 794.63 766.91 883.31 -- 912.69
5.00% 872.10 817.48 914.46 -- 927.86
Balanced 3.50% 793.46 744.55 932.60 1,158.75 --
5.00% 870.94 793.97 967.04 1,119.89 --
Growth
Investors 3.50% 835.74 847.68 1,203.30 -- 1,303.89
5.00% 917.23 903.59 1,245.75 -- 1,325.57
</TABLE>
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PART 9--THE REORGANIZATION
Equitable Life established Separate Account A as a stock account on August 1,
1968. It was one of four separate investment accounts used to fund retirement
benefits under variable annuity certificates issued by us. Each of these
separate accounts, which included the predecessors to the Money Market Fund,
the Balanced Fund, the Common Stock Fund and the Aggressive Stock Fund, was
organized as an open-end management investment company, with its own
investment objectives and policies. Collectively these separate accounts, as
well as two other separate accounts which had been used to fund retirement
benefits under certain other annuity contracts, are called the Predecessor
Separate Accounts.
On December 18, 1987, the Predecessor Separate Accounts were combined in part
and reorganized into the Money Market, Balanced, Common Stock and Aggressive
Stock Funds of the Separate Account. In connection with the Reorganization,
all of the assets and investment-related liabilities of the Predecessor
Separate Accounts were transferred to a corresponding portfolio of The
Equitable Trust in exchange for shares of the portfolios of The Equitable
Trust, which were issued to these corresponding Investment Funds of the
Separate Account. As described in "Part 3: Investment Performance" in the
prospectus, on September 6, 1991, all of the shares of The Equitable Trust
held by these Investment Funds were replaced by shares of Portfolios of The
Hudson River Trust corresponding to these Investment Funds of the Separate
Account.
PART 10--MONEY MARKET
FUND YIELD INFORMATION
The Money Market Fund calculates yield information for seven-day periods. To
determine the seven-day rate of return, the net change in an Accumulation
Unit Value is computed by subtracting the Accumulation Unit Value at the
beginning of the period from an Accumulation Unit Value, exclusive of capital
changes, at the end of the period.
The net change is then reduced by the average administrative charge factor
for your contract. This reduction is made to recognize the deduction of the
annual administrative charge, which is not reflected in the unit value. See
the applicable "Administrative Charge" section in Part 8 of the prospectus.
Accumulation Unit Values reflect all other accrued expenses of the Money
Market Fund.
The adjusted net change is divided by the Accumulation Unit Value at the
beginning of the period to obtain the adjusted base period rate of return.
This seven-day adjusted base period return is then multiplied by 365/7 to
produce an annualized seven-day current yield figure carried to the nearest
one-hundredth of one percent.
The actual dollar amount of the annual administrative charge for EQUI-VEST or
quarterly administrative charge for MOMENTUM that is deducted from the Money
Market Fund will vary for each contract and the percentage of the aggregate
Annuity Account Value allocated to the Money Market Fund. To determine the
effect of the annual administrative charge on the yield, we start with the
total dollar amount of the charges deducted from the Money Market Fund on the
last day of the prior year. This amount is multiplied by 7/365 to produce an
average administrative charge factor which is used in weekly yield
computations for the ensuing year. The average administrative charge is then
divided by the number of Money Market Fund Accumulation Units for the
MOMENTUM or EQUI-VEST Series Contract as of the end of the prior calendar
year, and the resulting quotient is deducted from the net change in
Accumulation Unit Value for the seven-day period.
The effective yield is obtained by modifying the current yield to give effect
to the compounding nature of the Money Market Fund's investments, as follows:
the unannualized adjusted base period return is compounded by adding one to
the adjusted base period return, raising the sum to a power equal to 365
divided by 7, and subtracting one from the result, i.e., effective yield =
(base period return +1) 365/7 -1. The Money Market Fund yields will fluctuate
daily. Accordingly, yields for any given period are not necessarily
representative of future results. In addition, the value of Accumulation
Units of the Money Market Fund will fluctuate and not remain constant.
12
<PAGE>
The Money Market Fund yields reflect charges that are not normally reflected
in the yields of other investments and therefore may be lower when compared
with yields of other investments. Money Market Fund yields should not be
compared to the return on fixed rate investments which guarantee rates of
interest for specified periods, such as the Guaranteed Interest Account or
bank deposits. The yield should not be compared to the yield of money market
funds made available to the general public because their yields usually are
calculated on the basis of a constant $1 price per share and they pay out
earnings in dividends which accrue on a daily basis.
While the Money Market Fund yields will vary among the different EQUI-VEST
Contracts and MOMENTUM, the same method of calculating Money Market Fund
yields applies. The seven- day current yield and effective yield figures set
forth below reflect the highest charges that are currently being assessed
under any EQUI- VEST Contract and the actual MOMENTUM charges and are for
illustrative purposes only.
The seven-day current yield for the Money Market Fund was 3.99% for EQUI-VEST
and 3.89% for MOMENTUM for the period ended December 31, 1995. The effective
yield for the Money Market Fund for that period was 4.00% for EQUI-VEST and
3.90% for MOMENTUM. Because these yields reflect the deduction of Separate
Account expenses, including the annual or quarterly administrative charge,
they are lower than the corresponding yield figures for the Money Market
Portfolio which reflect only the deduction of Trust-level expenses.
PART 11--OTHER YIELD
INFORMATION
Thirty-day yields may vary according to the series of your EQUI-VEST Contract
and from EQUI-VEST to MOMENTUM, although the same method of calculating Fund
yields applies. The yield figures set forth below reflect the highest charges
that are currently being assessed under any series of EQUI-VEST Contract.
MOMENTUM yields are separate.
The effective yield is obtained by giving effect to the compounding nature of
the Fund's investments, as follows: the sum of the 30-day adjusted return,
plus one, is raised to a power equal to 365 divided by 30, and subtracting
one from the result.
The 30-day yields for the period ended December 31, 1995 were 4.94% for
EQUI-VEST and 4.83% for MOMENTUM for the Intermediate Government Securities
Fund, 3.98% for EQUI- VEST and 3.86% for MOMENTUM for the Quality Bond Fund
and 9.15% for EQUI-VEST and 9.04% for MOMENTUM for the High Yield Fund.
Because these yields reflect the deduction of Separate Account expenses,
including the annual administrative charge, they are lower than the yield
figures for the corresponding Portfolios which reflect only the deduction of
Trust-level expenses.
PART 12--DISTRIBUTION
Equico Securities, Inc. (Equico), a wholly- owned subsidiary of Equitable
Life, performs all sales functions for the Separate Account and may be deemed
to be its principal underwriter under the 1940 Act. On or about May 1, 1996
Equico will change its name to EQ Financial Consultants Inc. Equico is also
the principal underwriter of The Hudson River Trust. Equico is registered
with the SEC as a broker- dealer under the Securities Exchange Act of 1934
(Exchange Act) and is a member of the National Association of Securities
Dealers, Inc. Equico's principal business address is 1755 Broadway, New York,
New York 10019. The EQUI-VEST and MOMENTUM Contracts are sold by Equitable
Agents who are registered representatives of Equico. For EQUI-VEST Series 400
IRA and NQ Contracts, broker-dealer compensation will not exceed 7% of total
contributions made under such Contracts.
PART 13: KEY FACTORS IN RETIREMENT PLANNING
INTRODUCTION
Equitable offers retirement programs that are available to help meet the
retirement needs of individuals and of employers, businesses, and certain
tax-exempt organizations. In assessing these retirement needs, some key
factors need to be addressed: (1) the impact of inflation on fixed retirement
incomes; (2) the importance of
13
<PAGE>
starting to plan early for retirement; (3) the benefits of tax-deferral; and
(4) the selection of an appropriate investment strategy. Each of these
factors is addressed below.
Unless otherwise noted, all of the following presentations use an assumed
annual rate of return of 7.5% compounded annually. This rate of return is for
illustrative purposes only and is not intended to represent an expected or
guaranteed rate of return for any investment vehicle. In addition, unless
otherwise noted, none of the illustrations reflect any charges that may be
applied under a particular investment vehicle. Such charges would effectively
reduce the actual return under any investment vehicle.
All earnings in these presentations are assumed to accumulate tax-deferred
unless otherwise noted. Most programs designed for retirement savings offer
tax-deferral. Amounts withdrawn generally are taxable and a 10% penalty tax
may apply to premature withdrawals. Certain retirement programs prohibit
early withdrawals. See "Part 10: Federal Tax and ERISA Matters." Where taxes
are taken into consideration in these presentations, a 28% tax rate is
assumed.
The source of the data used by us to compile the charts which appear in this
Part 13 (other than charts 1, 2, 3 and 4) is Ibbotson Associates, Inc.
Chicago. Stocks, Bonds, Bills and Inflation 1996 Yearbook (TM). All rights
reserved.
In reports or other communications or in advertising material we may make use
of these or other graphic or numerical illustrations that we prepare showing
the impact of inflation, planning early for retirements, tax-deferral,
diversification and other concepts important to retirement planning.
INFLATION
Inflation erodes purchasing power. This means that, in an inflationary
period, the dollar is worth less as time passes. Because many people live on
a fixed income during retirement, inflation is of particular concern to them.
The charts below illustrate the detrimental impact of inflation over an
extended period of time. Between 1965 and 1995, the average annual inflation
rate was 5.39%. As demonstrated in Chart 1, this 5.39% average annual rate of
inflation would cause the purchasing power of $35,000 to decrease to only
$7,246 after 30 years.
In Chart 2, the impact of inflation is examined from another perspective.
Specifically, the chart illustrates the additional income needed to maintain
the purchasing power of $35,000 over a thirty year period. Again, the
1965-1995 historical inflation rate of 5.39% is used. In this case, an
additional $134,064 would be required to maintain the purchasing power of
$35,000 after 30 years.
CHART 1
GRAPHIC OMITTED
CHART 2
GRAPHIC OMITTED
STARTING EARLY
The impact of inflation accentuates the need to begin a retirement program
early. The value of starting early is illustrated in the following charts. As
shown in Chart 3, if an individual
14
<PAGE>
makes annual contributions of $2,500 to his retirement program beginning at
age 30, he would accumulate $414,551 by age 65 under the assumptions
described earlier. If that individual waited until age 50, he would only
accumulate $70,193 by age 65 under the same assumptions.
CHART 3
GRAPHIC OMITTED
In Table 1, the impact of starting early is demonstrated in another format.
For example, if an individual invests $300 monthly, he would accumulate
$387,193 in thirty years under our assumptions. In contrast, if that
individual invested the same $300 per month for 15 years, he would accumulate
only $97,804 under our assumptions.
Table 1
<TABLE>
<CAPTION>
MONTHLY
CONTRI-
BUTION YEAR 10 YEAR 15 YEAR 20 YEAR 25 YEAR 30
- --------- -------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
$ 20 $ 3,532 $ 6,520 $ 10,811 $ 16,970 $ 25,813
50 8,829 16,301 27,027 42,425 64,532
100 17,659 32,601 54,053 84,851 129,064
200 35,317 65,202 108,107 169,701 258,129
300 52,976 97,804 162,160 254,552 387,193
</TABLE>
Chart 4 presents an additional way to demonstrate the significant impact of
starting to make contributions to a retirement program earlier rather than
later. It assumes that an individual had a goal to accumulate $250,000
(pre-tax) by age 65. If he starts at age 30, under our assumptions he could
reach the goal by making a monthly pre-tax contribution of $130 (equivalent
to $93 after taxes). The total net cost for the 30 year old in this
hypothetical example would be $39,265. If the individual in this hypothetical
example waited until age 50, he would have to make a monthly pre-tax
contribution of $747 (equivalent to $552 after taxes) to attain the goal,
illustrating the importance of starting early.
CHART 4
Goal: $250,000 by age 65
GRAPHIC OMITTED
TAX-DEFERRAL
Contributing to a retirement plan early is part of an effective strategy for
addressing the impact of inflation. Another part of such a strategy is to
carefully select the types of retirement programs in which to invest. In
deciding where to invest retirement contributions, there are three basic
types of programs.
The first type offers the most tax benefits, and therefore is potentially the
most beneficial for accumulating funds for retirement. Contributions are made
with pre-tax dollars or are tax-deductible and earnings grow income tax-
deferred. Examples of this type of program that permit individuals to make
contributions through personal savings or indirectly through employer-offered
salary deferrals are deductible Individual Retirement Annuities (IRAs);
15
<PAGE>
Tax-Sheltered Annuities (TSAs); Employee Deferred Compensation plans (EDCs);
401(k) plans; and Salary Reduction Simplified Employee Pensions (SARSEPs).
Of course, not every individual is eligible to take advantage of these
programs. Examples of this type of program which are employer funded are
qualified defined contribution plans, SEPs and HR-10 (Keogh) Plans.
The second type of program also provides for tax-deferred earnings growth,
however, contributions are made with after-tax dollars. Examples of this type
of program are non- deductible IRAs and non-qualified annuities.
The third approach to retirement savings is fully taxable. Contributions are
made with after-tax dollars and earnings are taxed each year. Examples of
this type of program include certificates of deposit, savings accounts, and
taxable stock, bond or mutual fund investments.
Consider an example. For the type of retirement program that offers both
pre-tax contributions and tax-deferral, assume that a $2,500 annual pre-tax
contribution is made for thirty years. In this example, the retirement funds
would be $199,607 after thirty years (assuming a 7.5% rate of return, no
withdrawals and assuming the deduction of a 1.75% Separate Account daily
asset and Trust annual expense charges and a $30 administrative charge--but
no contingent withdrawal charge) and such funds would be $277,886 without the
effect of any charges. Assuming a lump sum withdrawal was made in year thirty
and a 28% tax bracket, these amounts would be $143,717 and $200,078,
respectively.
For the type of program that offers only tax- deferral, assume an after-tax
annual contribution of $1,800 for thirty years and the same rate of return.
This after-tax contribution is derived by taxing the $2,500 pre-tax
contribution again assuming a 28% tax bracket. In this example, the
retirement funds would be $143,468 after thirty years assuming the deduction
of charges and no withdrawals, and $200,078 without the effect of charges.
Assuming a lump sum withdrawal in year thirty, the total after-tax amount
would be $118,417 with charges deducted and $159,176 without charges.
For the fully taxable investment, assume an after- tax contribution of $1,800
for thirty years. Earnings are taxed annually. After thirty years, the amount
of this fully taxable investment is $135,058. Keep in mind that taxable
investments have fees and charges too (investment advisory fees,
administrative charges, 12b-1 fees, sales loads, brokerage commissions, etc).
We have not attempted to apply these fees and charges to the fully taxable
amounts since this is intended merely as an example of tax deferral. Were
such charges applied, the amounts in the fully taxable example would be
lower.
Again, it must be emphasized that the assumed rate of return of 7.5%
compounded annually used in these examples is for illustrative purposes only
and is not intended to represent a guaranteed or expected rate of return on
any investment vehicle. Moreover, early withdrawals of tax-deferred
investments are generally subject to a 10% penalty tax.
INVESTMENT OPTIONS
Selecting an appropriate retirement program is clearly an important part of
an effective retirement planning strategy. Carefully choosing among
investment options is another essential component.
As demonstrated in Chart 5, during the 1965- 1995 period, common stock
average annual returns outperformed the average annual returns of fixed
investments such as long-term government bonds and Treasury Bills (T-Bills).
See "Notes" at the end of this section. Common stocks earned an average
annual return of 10.68% over this period, in contrast to 6.72% and 7.92% for
the other two investment categories. Significantly, common stock returns also
outpaced inflation which grew at 5.39% over this period.
16
<PAGE>
CHART 5
GRAPHIC OMITTED
While Chart 5 illustrates that investments in common stocks outperformed
fixed-income investments for the 1965-1995 period, many people prefer to
diversify their investments by selecting a mix of fixed income and growth
investments. In Chart 6, the growth of a $1,000 investment is shown given
various mixes of fixed income and growth investments. See "Notes" on the
following page.
CHART 6
GRAPHIC OMITTED
Although common stock returns have historically outpaced returns of fixed
investments, people often allocate a significant percentage of their
retirement funds to fixed return investments. Their primary concern is the
preservation of principal. Given this concern, Chart 7 illustrates the impact
of exposing only the interest generated by a fixed investment to the stock
market. In this illustration, the fixed investment is represented by a
Treasury Bill return and the stock investment is represented by the Standard
& Poor's 500 ("S&P 500").
The chart assumes that a $20,000 fixed investment was made on January 1,
1980. If the interest on that investment were to accumulate based upon the
return of the S&P 500, the total investment would have been worth $131,033 in
1995. Had the interest been reinvested in the fixed investment, the fixed
investment would have grown to $62,379. As illustrated in Chart 7,
significant opportunities for growth exist while preserving principal. See
"Notes" on the following page.
CHART 7
GRAPHIC OMITTED
Another variation of the example in Chart 7 is to gradually transfer
principal from a fixed investment into the stock market. Chart 8 assumes that
a $20,000 fixed investment was made on January 1, 1980. For the next two
years, $540 is transferred monthly into the stock market (represented by the
S&P 500). The total investment, given this strategy, would have grown to
$139,695 in 1995. In contrast, had the principal not been transferred, the
fixed investment would have grown to $62,379. See "Notes" on the following
page.
17
<PAGE>
CHART 8
GRAPHIC OMITTED
Notes
1. Common Stocks: Standard & Poor's (S&P) Composite Index is an unmanaged
weighted index of the stock performance of 500 industrial,
transportation, utility and financial companies. Results shown assume
reinvestment of dividends. Both market value and return on common stock
will vary.
2. U.S. Government Securities: Long-term Government Bonds are measured
using a one- bond portfolio constructed each year containing a bond with
approximately a 20-year maturity and a reasonably current coupon. U.S.
Treasury Bills are measured by rolling over each month a one-bill
portfolio containing, at the beginning of each month, the bill having
the shortest maturity not less than one month. U.S. Government
securities are guaranteed as to principal and interest, and if held to
maturity, offer a fixed rate of return.
However, market value and return on such securities will fluctuate prior to
maturity.
EQUI-VEST or MOMENTUM can be effective for diversifying ongoing investments
between various asset categories. In addition, for individuals investing a
lump sum, special features are offered which help address the risk associated
with timing the equity markets. Specifically, an interest sweep function is
offered whereby an individual can initially contribute a lump sum in the
Guaranteed Interest Account and then sweep the interest generated by the
investment into any of the growth-oriented options over a specified period of
time. In addition, a fixed dollar principal transfer function is offered
whereby an individual can initially contribute a lump sum in the Guaranteed
Interest Account and then transfer a fixed dollar amount of the principal
into the growth-oriented options over a specified period of time. Neither of
these features can guarantee a profit or assure against loss in a declining
market.
PART 14--LONG TERM
MARKET TRENDS
As a tool for understanding how different investment strategies may affect
long-term results, it may be useful to consider the historical returns on
different types of assets. The following charts present historical return
trends for various types of securities. The information presented, while not
directly related to the performance of the Investment Funds, helps to provide
a perspective on the potential returns of different asset classes over
different periods of time. By combining this information with your knowledge
of your own financial needs (e.g., the length of time until you retire, your
financial requirements at retirement), you may be able to better determine
how you wish to allocate plan contributions among the Investment Options
available under your plan.
Historically, the long-term investment performance of common stocks has
generally been superior to that of long or short-term debt securities. For
those investors who have many years until retirement, or whose primary focus
is on long-term growth potential and protection against inflation, there may
be advantages to allocating some or all of their Annuity or Retirement
Account Value to those Investment Funds that invest in stocks.
18
<PAGE>
Growth of $1 Invested on January 1, 1955
(Values are as of last business day)
GRAPHIC OMITTED
Over shorter periods of time, however, common stocks tend to be subject to
more dramatic changes in value than fixed income (debt) securities. Investors
who are nearing retirement age, or who have a need to limit short-term risk,
may find it preferable to allocate a smaller percentage of their Annuity or
Retirement Account Value to those Investment Funds that invest in common
stocks. The following graph illustrates the monthly fluctuations in value of
$1 based on monthly returns of the Standard & Poor's 500 during 1990, a year
that represents more typical volatility than 1995.
Growth of $1 invested on January 1, 1990
(Values are as of last business day).
GRAPHIC OMITTED
The following chart illustrates average annual rates of return over selected
time periods between December 31, 1926 and December 31, 1995 for different
types of securities: common stocks, long-term government bonds, long-term
corporate bonds, intermediate-term government bonds and U.S. Treasury Bills.
For comparison purposes, the Consumer Price Index is shown as a measure of
inflation. The average annual returns shown in the chart reflect capital
appreciation and assume the reinvestment of dividends and interest. No
investment management fees or expenses, and no charges typically associated
with deferred annuity products, are reflected. The information presented is
merely a summary of past experience for unmanaged groups of securities and is
neither an estimate nor guarantee of future performance. Any investment in
securities, whether equity or debt, involves varying degrees of potential
risk, in addition to offering varying degrees of potential reward.
The rates of return illustrated do not represent returns of the Separate
Account. In addition, there is no assurance that the performance of the
Investment Funds will correspond to rates of return such as those illustrated
in the chart.
For a comparative illustration of performance results of the Investment Funds
(which reflect The Hudson River Trust and Separate Account charges), see
"Investment Fund Performance" in Part 3 of the prospectus.
19
<PAGE>
MARKET TRENDS:
ILLUSTRATIVE ANNUAL RATES OF RETURN
<TABLE>
<CAPTION>
FOR THE FOLLOWING LONG-TERM INTERMEDIATE-
PERIODS COMMON LONG-TERM CORPORATE TERM GOVT. U.S. TREASURY CONSUMER
ENDING 12/31/95: STOCKS GOVT. BONDS BONDS BONDS BILLS PRICE INDEX
- ------------------------ -------- ------------- ----------- --------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
1 Year .................. 37.43 31.67 26.39 16.80 5.60 2.74
3 Years ................. 15.26 12.82 10.47 7.22 4.13 2.72
5 Years ................. 16.57 13.10 12.07 8.81 4.29 2.83
10 Years ................ 14.84 11.92 11.25 9.08 5.55 3.48
20 Years ................ 14.59 10.45 10.54 9.69 7.28 5.23
30 Years ................ 10.68 7.92 8.17 8.36 6.72 5.39
40 Years ................ 10.78 6.38 6.75 7.02 5.73 4.46
50 Years ................ 11.94 5.35 5.75 5.87 4.80 4.36
60 Years ................ 11.34 5.20 5.46 5.34 4.01 4.10
Since 1926 .............. 10.54 5.17 5.69 5.25 3.72 3.12
Inflation adjusted since
1926 ................... 7.20 1.99 2.49 2.07 0.58 0.00
</TABLE>
SOURCE: Ibbotson, Roger G., and Rex A. Sinquefield, Stocks, Bonds, Bills, and
Inflation (SBBI), 1982, updated in Stocks, Bonds, Bills and Inflation 1996
Yearbook, Ibbotson Associates, Inc., Chicago. All rights reserved.
COMMON STOCKS (S&P 500)--Standard and Poor's Composite Index, an unmanaged
weighted index of the stock performance of 500 industrial, transportation,
utility and financial companies.
LONG-TERM GOVERNMENT BONDS--Measured using a one-bond portfolio
constructed each year containing a bond with approximately a twenty year
maturity and a reasonably current coupon.
LONG-TERM CORPORATE BONDS--For the period 1969-1995, represented by the
Salomon Brothers Long-term, High-Grade Corporate Bond Index; for the period
1946-1968, the Salomon Brothers Index was backdated using Salomon Brothers
monthly yield data and a methodology similar to that used by Salomon Brothers
for 1969-1995; for the period 1927-1945, the Standard and Poor's monthly
High-Grade Corporate Composite yield data were used, assuming a 4 percent
coupon and a twenty year maturity.
INTERMEDIATE-TERM GOVERNMENT BONDS--Measured by a one-bond portfolio
constructed each year containing a bond with approximately a five year
maturity.
U.S. TREASURY BILLS--Measured by rolling over each month a one-bill
portfolio containing, at the beginning of each month, the bill having the
shortest maturity not less than one month.
INFLATION--Measured by the Consumer Price Index for all Urban Consumers
(CPI-U), not seasonally adjusted.
PART 15--CUSTODIAN AND INDEPENDENT ACCOUNTANTS
Equitable Life is the custodian for the shares of The Hudson River Trust
owned by the Separate Account.
The financial statements of the Separate Account and of Equitable Life
included in this SAI have been audited for the years-ended December 31, 1995,
December 31, 1994 and December 31, 1993 by Price Waterhouse LLP, as stated in
its reports. The financial statements of the Separate Account and of
Equitable Life for the years ended December 31, 1995 and December 31, 1994
included in this SAI have been so included in reliance on the reports of
Price Waterhouse LLP, independent accountants, given on the authority of such
firm as experts in accounting and auditing.
PART 16--FINANCIAL STATEMENTS
The consolidated financial statements of The Equitable Life Assurance Society
of the United States included herein should be considered only as bearing
upon the ability of Equitable Life to meet its obligations under the
Contracts.
20
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholder of
The Equitable Life Assurance Society of the United States
In our opinion, the accompanying consolidated balance sheets and the related
consolidated statements of earnings, of shareholder's equity and of cash flows
present fairly, in all material respects, the financial position of The
Equitable Life Assurance Society of the United States and its subsidiaries
("Equitable Life") at December 31, 1995 and 1994, and the results of their
operations and their cash flows for each of the three years in the period
ended December 31, 1995, in conformity with generally accepted accounting
principles. These financial statements are the responsibility of Equitable
Life's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
As discussed in Note 2 to the consolidated financial statements, Equitable
Life changed its methods of accounting for loan impairments in 1995, for
postemployment benefits in 1994 and for investment securities in 1993.
PRICE WATERHOUSE LLP
New York, New York
February 7, 1996
F-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturities:
Available for sale, at estimated fair value............................. $ 15,899.9 $ 7,586.0
Held to maturity, at amortized cost..................................... - 5,223.0
Mortgage loans on real estate............................................. 3,638.3 4,018.0
Equity real estate........................................................ 3,916.2 4,446.4
Policy loans.............................................................. 1,976.4 1,731.2
Other equity investments.................................................. 621.1 678.5
Investment in and loans to affiliates..................................... 636.6 560.2
Other invested assets..................................................... 706.1 489.3
----------------- -----------------
Total investments..................................................... 27,394.6 24,732.6
Cash and cash equivalents................................................... 774.7 693.6
Deferred policy acquisition costs........................................... 3,083.3 3,221.1
Amounts due from discontinued GIC Segment................................... 2,097.1 2,108.6
Other assets................................................................ 2,713.1 2,078.6
Closed Block assets......................................................... 8,612.8 8,105.5
Separate Accounts assets.................................................... 24,566.6 20,469.5
----------------- -----------------
TOTAL ASSETS................................................................ $ 69,242.2 $ 61,409.5
================= =================
LIABILITIES
Policyholders' account balances............................................. $ 21,752.6 $ 21,238.0
Future policy benefits and other policyholders' liabilities................. 4,171.8 3,840.8
Short-term and long-term debt............................................... 1,899.3 1,337.4
Other liabilities........................................................... 3,379.5 2,300.1
Closed Block liabilities.................................................... 9,507.2 9,069.5
Separate Accounts liabilities............................................... 24,531.0 20,429.3
----------------- -----------------
Total liabilities..................................................... 65,241.4 58,215.1
----------------- -----------------
Commitments and contingencies (Notes 10, 12, 13, 14 and 15)
SHAREHOLDER'S EQUITY
Common stock, $1.25 par value 2.0 million shares authorized, issued
and outstanding........................................................... 2.5 2.5
Capital in excess of par value.............................................. 2,913.6 2,913.6
Retained earnings........................................................... 781.6 484.0
Net unrealized investment gains (losses).................................... 338.2 (203.0)
Minimum pension liability................................................... (35.1) (2.7)
----------------- -----------------
Total shareholder's equity............................................ 4,000.8 3,194.4
----------------- -----------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY.................................. $ 69,242.2 $ 61,409.5
================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF EARNINGS
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
REVENUES
Universal life and investment-type product policy fee
income...................................................... $ 771.0 $ 715.0 $ 644.5
Premiums...................................................... 606.8 625.6 599.1
Net investment income......................................... 2,127.7 2,030.9 2,599.3
Investment gains, net......................................... 5.3 91.8 533.4
Commissions, fees and other income............................ 886.8 845.4 1,717.2
Contribution from the Closed Block............................ 124.4 151.0 128.3
----------------- ----------------- -----------------
Total revenues.......................................... 4,522.0 4,459.7 6,221.8
----------------- ----------------- -----------------
BENEFITS AND OTHER DEDUCTIONS
Interest credited to policyholders' account balances.......... 1,244.2 1,201.3 1,330.0
Policyholders' benefits....................................... 1,011.3 920.6 1,003.9
Other operating costs and expenses............................ 1,856.5 1,943.1 3,584.2
----------------- ----------------- -----------------
Total benefits and other deductions..................... 4,112.0 4,065.0 5,918.1
----------------- ----------------- -----------------
Earnings before Federal income taxes and cumulative
effect of accounting change................................. 410.0 394.7 303.7
Federal income taxes.......................................... 112.4 101.2 91.3
----------------- ----------------- -----------------
Earnings before cumulative effect of accounting change........ 297.6 293.5 212.4
Cumulative effect of accounting change, net of Federal
income taxes................................................ - (27.1) -
----------------- ----------------- -----------------
Net Earnings.................................................. $ 297.6 $ 266.4 $ 212.4
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Common stock, at par value, beginning of year................. $ 2.5 $ 2.5 $ 2.0
Increase in par value......................................... - - .5
----------------- ----------------- -----------------
Common stock, at par value, end of year....................... 2.5 2.5 2.5
----------------- ----------------- -----------------
Capital in excess of par value, beginning of year............. 2,913.6 2,613.6 2,273.9
Additional capital in excess of par value..................... - 300.0 340.2
Increase in par value......................................... - - (.5)
----------------- ----------------- -----------------
Capital in excess of par value, end of year................... 2,913.6 2,913.6 2,613.6
----------------- ----------------- -----------------
Retained earnings, beginning of year.......................... 484.0 217.6 5.2
Net earnings.................................................. 297.6 266.4 212.4
----------------- ----------------- -----------------
Retained earnings, end of year................................ 781.6 484.0 217.6
----------------- ----------------- -----------------
Net unrealized investment (losses) gains, beginning of year... (203.0) 131.9 78.8
Change in unrealized investment gains (losses)................ 541.2 (334.9) (9.5)
Effect of adopting new accounting standard.................... - - 62.6
----------------- ----------------- -----------------
Net unrealized investment gains (losses), end of year......... 338.2 (203.0) 131.9
----------------- ----------------- -----------------
Minimum pension liability, beginning of year.................. (2.7) (15.0) -
Change in minimum pension liability........................... (32.4) 12.3 (15.0)
----------------- ----------------- -----------------
Minimum pension liability, end of year........................ (35.1) (2.7) (15.0)
----------------- ----------------- -----------------
TOTAL SHAREHOLDER'S EQUITY, END OF YEAR....................... $ 4,000.8 $ 3,194.4 $ 2,950.6
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Net earnings.................................................. $ 297.6 $ 266.4 $ 212.4
Adjustments to reconcile net earnings to net cash
provided (used) by operating activities:
Net change in trading activities and broker-dealer
related receivables/payables.............................. - - (4,177.8)
Increase in matched resale agreements....................... - - (2,900.5)
Increase in matched repurchase agreements................... - - 2,900.5
Investment gains, net of dealer and trading gains........... (5.3) (91.8) (160.8)
Change in amounts due from discontinued GIC Segment......... - 57.3 47.8
General Account policy charges.............................. (769.7) (711.9) (623.4)
Interest credited to policyholders' account balances........ 1,244.2 1,201.3 1,330.0
Changes in Closed Block assets and liabilities, net......... (69.6) (95.1) (73.3)
Other, net.................................................. 627.1 7.8 (416.1)
----------------- ----------------- -----------------
Net cash provided (used) by operating activities.............. 1,324.3 634.0 (3,861.2)
----------------- ----------------- -----------------
Cash flows from investing activities:
Maturities and repayments................................... 1,863.1 2,319.7 3,479.6
Sales....................................................... 8,901.4 5,661.9 7,399.2
Return of capital from joint ventures and limited
partnerships.............................................. 65.2 39.0 119.5
Purchases................................................... (11,675.5) (7,417.6) (11,184.2)
Decrease (increase) in loans to discontinued GIC Segment.... 1,226.9 (40.0) (880.0)
Cash received on sale of 61% interest in DLJ................ - - 346.7
Other, net.................................................. (625.5) (371.1) (317.0)
----------------- ----------------- -----------------
Net cash (used) provided by investing activities.............. (244.4) 191.9 (1,036.2)
----------------- ----------------- -----------------
Cash flows from financing activities: Policyholders' account balances:
Deposits.................................................. 2,414.9 2,082.7 2,410.7
Withdrawals............................................... (2,692.7) (2,887.4) (2,433.5)
Net (decrease) increase in short-term financings............ (16.4) (173.0) 4,717.2
Additions to long-term debt................................. 599.7 51.8 97.7
Repayments of long-term debt................................ (40.7) (199.8) (64.4)
Proceeds from issuance of Alliance units.................... - 100.0 -
Payment of obligation to fund accumulated deficit of
discontinued GIC Segment.................................. (1,215.4) - -
Capital contribution from the Holding Company............... - 300.0 -
Other, net.................................................. (48.2) - -
----------------- ----------------- -----------------
Net cash (used) provided by financing activities.............. (998.8) (725.7) 4,727.7
----------------- ----------------- -----------------
Change in cash and cash equivalents........................... 81.1 100.2 (169.7)
Cash and cash equivalents, beginning of year.................. 693.6 593.4 763.1
----------------- ----------------- -----------------
Cash and Cash Equivalents, End of Year........................ $ 774.7 $ 693.6 $ 593.4
================= ================= =================
Supplemental cash flow information
Interest Paid............................................... $ 89.6 $ 34.9 $ 1,437.2
================= ================= =================
Income Taxes (Refunded) Paid................................ $ (82.7) $ 49.2 $ 41.0
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1) ORGANIZATION
The Equitable Life Assurance Society of the United States ("Equitable
Life") converted to a stock life insurance company on July 22, 1992
and became a wholly owned subsidiary of The Equitable Companies
Incorporated (the "Holding Company"). Equitable Life's insurance
business, which is comprised of an Individual Insurance and Annuities
segment and a Group Pension segment is conducted principally by
Equitable Life and its wholly owned life insurance subsidiary,
Equitable Variable Life Insurance Company ("EVLICO"). Equitable Life's
investment management business, which comprises the Investment
Services segment, is conducted principally by Alliance Capital
Management L.P. ("Alliance"), Equitable Real Estate Investment
Management, Inc. ("EREIM") and Donaldson, Lufkin and Jenrette, Inc.
("DLJ"), an investment banking and brokerage affiliate. AXA, a French
holding company for an international group of insurance and related
financial services companies is the Holding Company's largest
shareholder, owning approximately 60.6% at December 31, 1995 (63.5%
assuming conversion of Series E Convertible Preferred Stock held by
AXA and 54.2% if all securities convertible into, or options on,
common stock were to be converted or exercised).
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
-----------------------------------------------------
The accompanying consolidated financial statements are prepared in
conformity with generally accepted accounting principles ("GAAP").
The accompanying consolidated financial statements include the
accounts of Equitable Life and its wholly owned life insurance
subsidiaries (collectively, the "Insurance Group"); non-insurance
subsidiaries, principally Alliance, an investment advisory subsidiary
and EREIM, a real estate investment management subsidiary; and those
partnerships and joint ventures in which the Company has control and a
majority economic interest (collectively, including its consolidated
subsidiaries, the "Company"). The consolidated statement of earnings
and cash flow for the year ended December 31, 1993 include the results
of operations and cash flow of DLJ, an investment banking and
brokerage affiliate, on a consolidated basis through December 15, 1993
(see Note 20). Subsequent to that date, DLJ is accounted for on the
equity basis. The Closed Block assets and liabilities and results of
operations are presented in the consolidated financial statements as
single line items (see Note 6). Unless specifically stated, all
disclosures contained herein supporting the consolidated financial
statements exclude the Closed Block related amounts.
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those
estimates.
All significant intercompany transactions and balances have been
eliminated in consolidation other than intercompany transactions and
balances with the Closed Block and the discontinued Guaranteed
Interest Contract ("GIC") Segment (see Note 7).
Certain reclassifications have been made in the amounts presented for
prior periods to conform these periods with the 1995 presentation.
F-6
<PAGE>
Closed Block
------------
As of July 22, 1992, Equitable Life established the Closed Block for
the benefit of certain classes of individual participating policies
for which Equitable Life had a dividend scale payable in 1991 and
which were in force on that date. Assets were allocated to the Closed
Block in an amount which, together with anticipated revenues from
policies included in the Closed Block, was reasonably expected to be
sufficient to support such business, including provision for payment
of claims, certain expenses and taxes, and for continuation of
dividend scales payable in 1991, assuming the experience underlying
such scales continues.
Assets allocated to the Closed Block inure solely to the benefit of
the holders of policies included in the Closed Block and will not
revert to the benefit of the Holding Company. The plan of
demutualization prohibits the reallocation, transfer, borrowing or
lending of assets between the Closed Block and other portions of
Equitable Life's General Account, any of its Separate Accounts or to
any affiliate of Equitable Life without the approval of the New York
Superintendent of Insurance. Closed Block assets and liabilities are
carried on the same basis as similar assets and liabilities held in
the General Account.
The excess of Closed Block liabilities over Closed Block assets
represents the expected future post-tax contribution from the Closed
Block which would be recognized in income over the period the policies
and contracts in the Closed Block remain in force. If the actual
contribution from the Closed Block in any given period equals or
exceeds the expected contribution for such period as determined at the
establishment of the Closed Block, the expected contribution would be
recognized in income for that period. Any excess of the actual
contribution over the expected contribution would also be recognized
in income to the extent that the aggregate expected contribution for
all prior periods exceeded the aggregate actual contribution. Any
remaining excess of actual contribution over expected contributions
would be accrued in the Closed Block as a liability for future
dividends to be paid to the Closed Block policyholders. If, over the
period the policies and contracts in the Closed Block remain in force,
the actual contribution from the Closed Block is less than the
expected contribution from the Closed Block, only such actual
contribution would be recognized in income.
Discontinued Operations
-----------------------
In 1991, the Company's management adopted a plan to discontinue the
business operations of the GIC Segment, consisting of the Guaranteed
Interest Contract and Group Non-Participating Wind-Up Annuities lines
of business. The Company established a pre-tax provision for the
estimated future losses of the GIC line of business and a premium
deficiency reserve for the Group Non-Participating Wind-Up Annuities.
Subsequent losses incurred have been charged to the allowance for
future losses and the premium deficiency reserve. Total allowances are
based upon management's best judgment and there is no assurance that
the ultimate losses will not differ.
Accounting Changes
------------------
In the first quarter of 1995, the Company adopted Statement of
Financial Accounting Standards ("SFAS") No. 114, "Accounting by
Creditors for Impairment of a Loan". This statement applies to all
loans, including loans restructured in a troubled debt restructuring
involving a modification of terms. This statement addresses the
accounting for impairment of a loan by specifying how allowances for
credit losses should be determined. Impaired loans within the scope of
this statement are measured based on the present value of expected
future cash flows discounted at the loan's effective interest rate, at
the loan's observable market price or the fair value of the collateral
if the loan is collateral dependent. The Company provides for
impairment of loans through an allowance for possible losses. The
adoption of this statement did not have a material effect on the level
of these allowances or on the Company's consolidated statements of
earnings and shareholder's equity.
F-7
<PAGE>
In the fourth quarter of 1994 (effective as of January 1, 1994), the
Company adopted SFAS No. 112, "Employers' Accounting for
Postemployment Benefits," which required employers to recognize the
obligation to provide postemployment benefits. Implementation of this
statement resulted in a charge for the cumulative effect of accounting
change of $27.1 million, net of a Federal income tax benefit of $14.6
million.
At December 31, 1993, the Company adopted SFAS No. 115, "Accounting
for Certain Investments in Debt and Equity Securities," which expanded
the use of fair value accounting for those securities that a company
does not have positive intent and ability to hold to maturity.
Implementation of this statement increased consolidated shareholder's
equity by $62.6 million, net of deferred policy acquisition costs,
amounts attributable to participating group annuity contracts and
deferred Federal income tax. Beginning coincident with issuance of
SFAS No. 115 implementation guidance in November 1995, the Financial
Accounting Standards Board ("FASB") permitted companies a one-time
opportunity, through December 31, 1995, to reassess the
appropriateness of the classification of all securities held at that
time. On December 1, 1995, the Company transferred $4,794.9 million of
securities classified as held to maturity to the available for sale
portfolio. As a result consolidated shareholder's equity increased by
$126.2 million, net of deferred policy acquisition costs, amounts
attributable to participating group annuity contracts and deferred
Federal income tax.
New Accounting Pronouncements
-----------------------------
In January 1995, the FASB issued SFAS No. 120, "Accounting and
Reporting by Mutual Life Insurance Enterprises and by Insurance
Enterprises for Certain Long-Duration Participating Contracts," which
permits, but does not require, stock life insurance companies with
participating life contracts to account for those contracts in
accordance with Statement of Position No. 95-1, "Accounting for
Certain Insurance Activities of Mutual Life Insurance Enterprises".
The Company has decided to retain the existing methodology to account
for traditional participating policies and, therefore, will not adopt
this statement.
In March 1995, the FASB issued SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of," which requires that long-lived assets and certain
identifiable intangibles be reviewed for impairment whenever events or
changes in circumstances indicate the carrying amount of such assets
may not be recoverable. The Company will implement this statement as
of January 1, 1996. The cumulative effect of this accounting change
will be a charge of $23.4 million, net of a Federal income tax benefit
of $12.1 million, due to the writedown to fair value of building
improvements relating to facilities being vacated beginning in 1996.
The Company currently provides allowances for possible losses for
other assets under the scope of this statement. Management has not yet
determined the impact of this statement on assets to be held and used.
In May 1995, the FASB issued SFAS No. 122, "Accounting for Mortgage
Servicing Rights," which requires a mortgage banking enterprise to
recognize rights to service mortgage loans for others as separate
assets however those servicing rights are acquired. It further
requires capitalized mortgage servicing rights be assessed for
impairment based on the fair value of those rights. The Company will
implement this statement as of January 1, 1996. Implementation of this
statement will not have a material effect on the Company's
consolidated financial statements.
In October 1995, the FASB issued SFAS No. 123, "Accounting for
Stock-Based Compensation". This statement defines a fair value based
method of accounting for stock-based employee compensation plans while
continuing to allow an entity to measure compensation cost for such
plans using the intrinsic value based method of accounting. Management
has decided to retain the current compensation cost methodology
prescribed by Accounting Principles Board Opinion No. 25, "Accounting
for Stock Issued to Employees".
F-8
<PAGE>
Valuation of Investments
------------------------
Fixed maturities, which the Company has both the ability and the
intent to hold to maturity, are stated principally at amortized cost.
Fixed maturities identified as available for sale are reported at
estimated fair value. The amortized cost of fixed maturities is
adjusted for impairments in value deemed to be other than temporary.
Mortgage loans on real estate are stated at unpaid principal balances,
net of unamortized discounts and valuation allowances. Effective with
the adoption of SFAS No. 114 on January 1, 1995, the valuation
allowances are based on the present value of expected future cash
flows discounted at the loan's original effective interest rate or the
collateral value if the loan is collateral dependent. However, if
foreclosure is or becomes probable, the measurement method used is
collateral value. Prior to the adoption of SFAS No. 114, the valuation
allowances were based on losses expected by management to be realized
on transfers of mortgage loans to real estate (upon foreclosure or
in-substance foreclosure), on the disposition or settlement of
mortgage loans and on mortgage loans management believed may not be
collectible in full. In establishing valuation allowances, management
previously considered, among other things the estimated fair value of
the underlying collateral.
Real estate, including real estate acquired in satisfaction of debt,
is stated at depreciated cost less valuation allowances. At the date
of foreclosure (including in-substance foreclosure), real estate
acquired in satisfaction of debt is valued at estimated fair value.
Valuation allowances on real estate held for the production of income
are computed using the forecasted cash flows of the respective
properties discounted at a rate equal to the Company's cost of funds;
valuation allowances on real estate available for sale are computed
using the lower of current estimated fair value, net of disposition
costs, or depreciated cost.
Policy loans are stated at unpaid principal balances.
Partnerships and joint venture interests in which the Company does not
have control and a majority economic interest are reported on the
equity basis of accounting and are included either with equity real
estate or other equity investments, as appropriate.
Common stocks are carried at estimated fair value and are included in
other equity investments.
Short-term investments are stated at amortized cost which approximates
fair value and are included with other invested assets.
Cash and cash equivalents includes cash on hand, amounts due from
banks and highly liquid debt instruments purchased with an original
maturity of three months or less.
All securities are recorded in the consolidated financial statements
on a trade date basis.
Investment Results and Unrealized Investment Gains (Losses)
-----------------------------------------------------------
Net investment income and realized investment gains and losses
(collectively, "investment results") related to certain participating
group annuity contracts are passed through to the contractholders as
interest credited to policyholders' account balances.
Realized investment gains and losses are determined by specific
identification and are presented as a component of revenue. Valuation
allowances are netted against the asset categories to which they apply
and changes in the valuation allowances are included in investment
gains or losses.
Unrealized investment gains and losses on fixed maturities available
for sale and equity securities held by the Company are accounted for
as a separate component of shareholder's equity, net of related
deferred Federal income taxes, amounts attributable to the
discontinued GIC Segment, Closed Block, participating group annuity
contracts and deferred policy acquisition costs related to universal
life and investment-type products.
F-9
<PAGE>
Recognition of Insurance Income and Related Expenses
----------------------------------------------------
Premiums from universal life and investment-type contracts are
reported as deposits to policyholders' account balances. Revenues from
these contracts consist of amounts assessed during the period against
policyholders' account balances for mortality charges, policy
administration charges and surrender charges. Policy benefits and
claims that are charged to expense include benefit claims incurred in
the period in excess of related policyholders' account balances.
Premiums from traditional life and annuity policies with life
contingencies generally are recognized as income when due. Benefits
and expenses are matched with such income so as to result in the
recognition of profits over the life of the contracts. This match is
accomplished by means of the provision for liabilities for future
policy benefits and the deferral and subsequent amortization of policy
acquisition costs.
For contracts with a single premium or a limited number of premium
payments due over a significantly shorter period than the total period
over which benefits are provided, premiums are recorded as income when
due with any excess profit deferred and recognized in income in a
constant relationship to insurance in force or, for annuities, the
amount of expected future benefit payments.
Premiums from individual health contracts are recognized as income
over the period to which the premiums relate in proportion to the
amount of insurance protection provided.
Deferred Policy Acquisition Costs
---------------------------------
The costs of acquiring new business, principally commissions,
underwriting, agency and policy issue expenses, all of which vary with
and are primarily related to the production of new business, are
deferred. Deferred policy acquisition costs are subject to
recoverability testing at the time of policy issue and loss
recognition testing at the end of each accounting period.
For universal life products and investment-type products, deferred
policy acquisition costs are amortized over the expected average life
of the contracts (periods ranging from 15 to 35 years and 5 to 17
years, respectively) as a constant percentage of estimated gross
profits arising principally from investment results, mortality and
expense margins and surrender charges based on historical and
anticipated future experience, updated at the end of each accounting
period. The effect on the amortization of deferred policy acquisition
costs of revisions to estimated gross profits is reflected in earnings
in the period such estimated gross profits are revised. The effect on
the deferred policy acquisition cost asset that would result from
realization of unrealized gains (losses) is recognized with an offset
to unrealized gains (losses) in consolidated shareholder's equity as
of the balance sheet date.
For traditional life and annuity policies with life contingencies,
deferred policy acquisition costs are amortized in proportion to
anticipated premiums. Assumptions as to anticipated premiums are
estimated at the date of policy issue and are consistently applied
during the life of the contracts. Deviations from estimated experience
are reflected in earnings in the period such deviations occur. For
these contracts, the amortization periods generally are for the
estimated life of the policy.
For individual health benefit insurance, deferred policy acquisition
costs are amortized over the expected average life of the contracts
(10 years for major medical policies and 20 years for disability
income products) in proportion to anticipated premium revenue at time
of issue.
Policyholders' Account Balances and Future Policy Benefits
----------------------------------------------------------
Policyholders' account balances for universal life and investment-type
contracts are equal to the policy account values. The policy account
values represent an accumulation of gross premium payments plus
credited interest less expense and mortality charges and withdrawals.
F-10
<PAGE>
For traditional life insurance policies, future policy benefit and
dividend liabilities are estimated using a net level premium method on
the basis of actuarial assumptions as to mortality, persistency and
interest established at policy issue. Assumptions established at
policy issue as to mortality and persistency are based on the
Insurance Group's experience which, together with interest and expense
assumptions, provide a margin for adverse deviation. When the
liabilities for future policy benefits plus the present value of
expected future gross premiums for a product are insufficient to
provide for expected future policy benefits and expenses for that
product, deferred policy acquisition costs are written off and
thereafter, if required, a premium deficiency reserve is established
by a charge to earnings. Benefit liabilities for traditional annuities
during the accumulation period are equal to accumulated
contractholders' fund balances and after annuitization are equal to
the present value of expected future payments. Interest rates used in
establishing such liabilities range from 2.25% to 11.5% for life
insurance liabilities and from 2.25% to 13.5% for annuity liabilities.
Individual health benefit liabilities for active lives are estimated
using the net level premium method, and assumptions as to future
morbidity, withdrawals and interest which provide a margin for adverse
deviation. Benefit liabilities for disabled lives are estimated using
the present value of benefits method and experience assumptions as to
claim terminations, expenses and interest.
Claim reserves and associated liabilities for individual disability
income and major medical policies were $639.6 million, $570.6 million
at December 31, 1995 and 1994, respectively. Incurred benefits
(benefits paid plus changes in claim reserves) and benefits paid for
individual disability income and major medical policies are summarized
as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Incurred benefits related to current year.......... $ 176.0 $ 188.6 $ 193.1
Incurred benefits related to prior years........... 67.8 28.7 106.1
----------------- ---------------- -----------------
Total Incurred Benefits............................ $ 243.8 $ 217.3 $ 299.2
================= ================ =================
Benefits paid related to current year.............. $ 37.0 $ 43.7 $ 48.9
Benefits paid related to prior years............... 137.8 132.3 123.1
----------------- ---------------- -----------------
Total Benefits Paid................................ $ 174.8 $ 176.0 $ 172.0
================= ================ =================
</TABLE>
The amount of policyholders' dividends to be paid (including those on
policies included in the Closed Block) is determined annually by
Equitable Life's Board of Directors. The aggregate amount of
policyholders' dividends is related to actual interest, mortality,
morbidity and expense experience for the year and judgment as to the
appropriate level of statutory surplus to be retained by Equitable
Life.
Equitable Life is subject to limitations on the amount of statutory
profits which can be retained with respect to certain classes of
individual participating policies that were in force on July 22, 1992
which are not included in the Closed Block and with respect to
participating policies issued subsequent to July 22, 1992. Excess
statutory profits, if any, will be distributed over time to such
policyholders and will not be available to Equitable Life's
shareholder. Earnings in excess of limitations are accrued as
policyholders' dividends.
At December 31, 1995, participating policies including those in the
Closed Block represent approximately 27.2% ($58.4 billion) of directly
written life insurance in force, net of amounts ceded. Participating
policies represent primarily all of the premium income as reflected in
the consolidated statements of earnings and in the results of the
Closed Block.
F-11
<PAGE>
Federal Income Taxes
--------------------
Equitable Life and its life insurance and non-life insurance
subsidiaries file a consolidated Federal income tax return with the
Holding Company and its non-life insurance subsidiaries. Current
Federal income taxes are charged or credited to operations based upon
amounts estimated to be payable or recoverable as a result of taxable
operations for the current year. Deferred income tax assets and
liabilities are recognized based on the difference between financial
statement carrying amounts and income tax bases of assets and
liabilities using enacted income tax rates and laws.
Separate Accounts
-----------------
Separate Accounts are established in conformity with the New York
State Insurance Law and generally are not chargeable with liabilities
that arise from any other business of the Insurance Group. Separate
Accounts assets are subject to General Account claims only to the
extent the value of such assets exceeds the Separate Accounts
liabilities.
Assets and liabilities of the Separate Accounts, representing net
deposits and accumulated net investment earnings less fees, held
primarily for the benefit of contractholders, and for which the
Insurance Group does not bear the investment risk, are shown as
separate captions in the consolidated balance sheets. The Insurance
Group bears the investment risk on assets held in one Separate
Account, therefore, such assets are carried on the same basis as
similar assets held in the General Account portfolio. Assets held in
the other Separate Accounts are carried at quoted market values or,
where quoted values are not available, at estimated fair values as
determined by the Insurance Group.
The investment results of Separate Accounts on which the Insurance
Group does not bear the investment risk are reflected directly in
Separate Accounts liabilities. For the years ended December 31, 1995,
1994 and 1993, investment results of such Separate Accounts were
$1,956.3 million, $676.3 million and $1,676.5 million, respectively.
Deposits to all Separate Accounts are reported as increases in
Separate Accounts liabilities and are not reported in revenues.
Mortality, policy administration and surrender charges on all Separate
Accounts are included in revenues.
F-12
<PAGE>
3) INVESTMENTS
The following tables provide additional information relating to fixed
maturities and equity securities:
<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED ESTIMATED
COST GAINS LOSSES FAIR VALUE
----------------- ----------------- ---------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
DECEMBER 31, 1995 Fixed Maturities:
Available for Sale:
Corporate.......................... $ 10,910.7 $ 617.6 $ 118.1 $ 11,410.2
Mortgage-backed.................... 1,838.0 31.2 1.2 1,868.0
U.S. Treasury securities and
U.S. government and
agency securities................ 2,257.0 77.8 4.1 2,330.7
States and political subdivisions.. 45.7 5.2 - 50.9
Foreign governments................ 124.5 11.0 .2 135.3
Redeemable preferred stock......... 108.1 5.3 8.6 104.8
----------------- ----------------- ---------------- ---------------
Total Available for Sale............... $ 15,284.0 $ 748.1 $ 132.2 $ 15,899.9
================= ================= ================ ===============
Equity Securities:
Common stock......................... $ 97.3 $ 49.1 $ 18.0 $ 128.4
================= ================= ================ ===============
December 31, 1994
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 5,663.4 $ 34.6 $ 368.0 $ 5,330.0
Mortgage-backed.................... 686.0 2.9 44.8 644.1
U.S. Treasury securities and
U.S. government and
agency securities................ 1,519.3 6.7 71.9 1,454.1
States and political subdivisions.. 23.4 .1 .7 22.8
Foreign governments................ 43.8 .3 4.2 39.9
Redeemable preferred stock......... 108.4 .4 13.7 95.1
----------------- ----------------- ---------------- ---------------
Total Available for Sale............... $ 8,044.3 $ 45.0 $ 503.3 $ 7,586.0
================= ================= ================ ===============
Held to Maturity:
Corporate.......................... $ 4,661.0 $ 67.9 $ 233.8 $ 4,495.1
U.S. Treasury securities and
U.S. government and
agency securities................ 428.9 4.6 44.2 389.3
States and political subdivisions.. 63.4 .9 3.7 60.6
Foreign governments................ 69.7 4.2 2.0 71.9
================= ================= ================ ===============
Total Held to Maturity................. $ 5,223.0 $ 77.6 $ 283.7 $ 5,016.9
================= ================= ================ ===============
Equity Securities:
Common stock......................... $ 126.4 $ 31.2 $ 23.5 $ 134.1
================= ================= ================ ===============
</TABLE>
F-13
<PAGE>
For publicly traded fixed maturities and equity securities, estimated
fair value is determined using quoted market prices. For fixed
maturities without a readily ascertainable market value, the Company
has determined an estimated fair value using a discounted cash flow
approach, including provisions for credit risk, generally based upon
the assumption that such securities will be held to maturity.
Estimated fair value for equity securities, substantially all of which
do not have a readily ascertainable market value, has been determined
by the Company. Such estimated fair values do not necessarily
represent the values for which these securities could have been sold
at the dates of the consolidated balance sheets. At December 31, 1995
and 1994, securities without a readily ascertainable market value
having an amortized cost of $3,748.9 million and $3,980.4 million,
respectively, had estimated fair values of $3,981.8 million and
$3,858.7 million, respectively.
The contractual maturity of bonds at December 31, 1995 is shown below:
<TABLE>
<CAPTION>
AVAILABLE FOR SALE
------------------------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Due in one year or less................................................ $ 357.9 $ 360.0
Due in years two through five.......................................... 3,773.1 3,847.1
Due in years six through ten........................................... 4,709.8 4,821.8
Due after ten years.................................................... 4,497.1 4,898.2
Mortgage-backed securities............................................. 1,838.0 1,868.0
---------------- -----------------
Total.................................................................. $ 15,175.9 $ 15,795.1
================ =================
</TABLE>
Bonds not due at a single maturity date have been included in the
above table in the year of final maturity. Actual maturities will
differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without call or prepayment
penalties.
Investment valuation allowances and changes thereto are shown below:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Balances, beginning of year........................ $ 284.9 $ 355.6 $ 512.0
Additions charged to income........................ 136.0 51.0 92.8
Deductions for writedowns and asset dispositions... (95.6) (121.7) (249.2)
----------------- ---------------- -----------------
Balances, End of Year.............................. $ 325.3 $ 284.9 $ 355.6
================= ================ =================
Balances, end of year comprise:
Mortgage loans on real estate.................... $ 65.5 $ 64.2 $ 144.4
Equity real estate............................... 259.8 220.7 211.2
----------------- ---------------- -----------------
Total.............................................. $ 325.3 $ 284.9 $ 355.6
================= ================ =================
</TABLE>
Deductions for writedowns and asset dispositions for 1993 include an
$87.1 million writedown of fixed maturity investments at December 31,
1993 as a result of adopting a new accounting statement for the
valuation of these investments that requires specific writedowns
instead of valuation allowances.
At December 31, 1995, the carrying values of investments held for the
production of income which were non-income producing for the twelve
months preceding the consolidated balance sheet date were $37.2
million of fixed maturities and $84.7 million of mortgage loans on
real estate.
F-14
<PAGE>
The Insurance Group's fixed maturity investment portfolio includes
corporate high yield securities consisting of public high yield bonds,
redeemable preferred stocks and directly negotiated debt in leveraged
buyout transactions. The Insurance Group seeks to minimize the higher
than normal credit risks associated with such securities by monitoring
the total investments in any single issuer or total investment in a
particular industry group. Certain of these corporate high yield
securities are classified as other than investment grade by the
various rating agencies, i.e., a rating below Baa or National
Association of Insurance Commissioners ("NAIC") designation of 3
(medium grade), 4 or 5 (below investment grade) or 6 (in or near
default). At December 31, 1995, approximately 15.57% of the $15,139.9
million aggregate amortized cost of bonds held by the Insurance Group
were considered to be other than investment grade.
In addition to its holdings of corporate high yield securities, the
Insurance Group is an equity investor in limited partnership interests
which primarily invest in securities considered to be other than
investment grade.
The Company has restructured or modified the terms of certain fixed
maturity investments. The fixed maturity portfolio, based on amortized
cost, includes $15.9 million and $30.5 million at December 31, 1995
and 1994, respectively, of such restructured securities. These amounts
include fixed maturities which are in default as to principal and/or
interest payments, are to be restructured pursuant to commenced
negotiations or where the borrowers went into bankruptcy subsequent to
acquisition (collectively, "problem fixed maturities") of $1.6 million
and $9.7 million as of December 31, 1995 and 1994, respectively. Gross
interest income that would have been recorded in accordance with the
original terms of restructured fixed maturities amounted to $3.0
million, $7.5 million and $11.7 million in 1995, 1994 and 1993,
respectively. Gross interest income on these fixed maturities included
in net investment income aggregated $2.9 million, $6.8 million and
$9.7 million in 1995, 1994 and 1993, respectively.
At December 31, 1995 and 1994, mortgage loans on real estate with
scheduled payments 60 days (90 days for agricultural mortgages) or
more past due or in foreclosure (collectively, "problem mortgage loans
on real estate") had an amortized cost of $87.7 million (2.4% of total
mortgage loans on real estate) and $96.9 million (2.3% of total
mortgage loans on real estate), respectively.
The payment terms of mortgage loans on real estate may from time to
time be restructured or modified. The investment in restructured
mortgage loans on real estate, based on amortized cost, amounted to
$531.5 million and $447.9 million at December 31, 1995 and 1994,
respectively. These amounts include $3.8 million and $1.0 million of
problem mortgage loans on real estate at December 31, 1995 and 1994,
respectively. Gross interest income on restructured mortgage loans on
real estate that would have been recorded in accordance with the
original terms of such loans amounted to $52.1 million, $44.9 million
and $51.8 million in 1995, 1994 and 1993, respectively. Gross interest
income on these loans included in net investment income aggregated
$37.4 million, $32.8 million and $46.0 million in 1995, 1994 and 1993,
respectively.
Impaired mortgage loans (as defined under SFAS No. 114) along with the
related provision for losses were as follows:
<TABLE>
<CAPTION>
December 31, 1995
-------------------
(IN MILLIONS)
<S> <C>
Impaired mortgage loans with provision for losses....................................... $ 310.1
Impaired mortgage loans with no provision for losses.................................... 160.8
-------------------
Recorded investment in impaired mortgage loans.......................................... 470.9
Provision for losses.................................................................... 62.7
-------------------
Net Impaired Mortgage Loans............................................................. $ 408.2
===================
</TABLE>
F-15
<PAGE>
Impaired mortgage loans with no provision for losses are loans where
the fair value of the collateral or the net present value of the loan
equals or exceeds the recorded investment. Interest income earned on
loans where the collateral value is used to measure impairment is
recorded on a cash basis. Interest income on loans where the present
value method is used to measure impairment is accrued on the net
carrying value amount of the loan at the interest rate used to
discount the cash flows. Changes in the present value attributable to
changes in the amount or timing of expected cash flows are reported as
investment gains or losses.
During the year ended December 31, 1995, the Company's average
recorded investment in impaired mortgage loans was $429.0 million.
Interest income recognized on these impaired mortgage loans totaled
$27.9 million for the year ended December 31, 1995, including $13.4
million recognized on a cash basis.
At December 31, 1995, investments owned of any one issuer, including
its affiliates, for which the aggregate carrying values are 10% or
more of total shareholders' equity, were $508.3 million relating to
Trammell Crow and affiliates (including holdings of the Closed Block
and the discontinued GIC Segment). The amount includes restructured
mortgage loans on real estate with an amortized cost of $152.4
million. A $294.0 million commercial loan package which was in
bankruptcy at the beginning of the year was resolved in 1995, with
part of the package reclassified as restructured and the remainder
reclassified as equity real estate.
The Insurance Group's investment in equity real estate is through
direct ownership and through investments in real estate joint
ventures. At December 31, 1995 and 1994, the carrying value of equity
real estate available for sale amounted to $255.5 million and $447.8
million, respectively. For the years ended December 31, 1995, 1994 and
1993, respectively, real estate of $35.3 million, $189.8 million and
$261.8 million was acquired in satisfaction of debt. At December 31,
1995 and 1994, the Company owned $862.7 million and $1,086.9 million,
respectively, of real estate acquired in satisfaction of debt.
Depreciation of real estate is computed using the straight-line method
over the estimated useful lives of the properties, which generally
range from 40 to 50 years. Accumulated depreciation on real estate was
$662.4 million and $703.1 million at December 31, 1995 and 1994,
respectively. Depreciation expense on real estate totaled $121.7
million, $117.0 million and $115.3 million for the years ended
December 31, 1995, 1994 and 1993, respectively.
F-16
<PAGE>
4) JOINT VENTURES AND PARTNERSHIPS
Summarized combined financial information of real estate joint
ventures (38 and 47 individual ventures as of December 31, 1995 and
1994, respectively) and of limited partnership interests accounted for
under the equity method, in which the Company has an investment of
$10.0 million or greater and an equity interest of 10% or greater is
as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
FINANCIAL POSITION
Investments in real estate, at depreciated cost........................ $ 2,684.1 $ 2,786.7
Investments in securities, generally at estimated fair value........... 2,459.8 3,071.2
Cash and cash equivalents.............................................. 489.1 359.8
Other assets........................................................... 270.8 398.7
---------------- -----------------
Total assets........................................................... 5,903.8 6,616.4
---------------- -----------------
Borrowed funds - third party........................................... 1,782.3 1,759.6
Borrowed funds - the Company........................................... 220.5 238.0
Other liabilities...................................................... 593.9 987.7
---------------- -----------------
Total liabilities...................................................... 2,596.7 2,985.3
---------------- -----------------
Partners' Capital...................................................... $ 3,307.1 $ 3,631.1
================ =================
Equity in partners' capital included above............................. $ 902.2 $ 964.2
Equity in limited partnership interests not included above............. 212.8 224.6
Excess (deficit) of equity in partners' capital over investment cost
and equity earnings.................................................. 3.6 (1.8)
Notes receivable from joint venture.................................... 5.3 6.1
---------------- -----------------
Carrying Value......................................................... $ 1,123.9 $ 1,193.1
================ =================
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Revenues of real estate joint ventures............. $ 463.5 $ 537.7 $ 602.7
Revenues of other limited partnership interests.... 242.3 103.4 319.1
Interest expense - third party..................... (135.3) (114.9) (118.8)
Interest expense - the Company..................... (41.0) (36.9) (52.1)
Other expenses..................................... (397.7) (430.9) (531.7)
----------------- ---------------- -----------------
Net Earnings....................................... $ 131.8 $ 58.4 $ 219.2
================= ================ =================
Equity in net earnings included above.............. $ 49.1 $ 18.9 $ 71.6
Equity in net earnings of limited partnerships
interests not included above..................... 44.8 25.3 46.3
Excess of earnings in joint ventures over equity
ownership percentage and amortization of
differences in bases............................. .9 1.8 9.2
Interest on notes receivable....................... .1 - .5
----------------- ---------------- -----------------
Total Equity in Net Earnings....................... $ 94.9 $ 46.0 $ 127.6
================= ================ =================
</TABLE>
F-17
<PAGE>
5) NET INVESTMENT INCOME AND INVESTMENT GAINS (LOSSES)
The sources of net investment income are summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities................................... $ 1,151.0 $ 1,024.5 $ 981.7
Trading account securities......................... - - 709.3
Securities purchased under resale agreements....... - - 533.8
Mortgage loans on real estate...................... 329.0 384.3 457.4
Equity real estate................................. 560.4 561.8 539.1
Other equity investments........................... 76.9 35.7 110.4
Policy loans....................................... 144.4 122.7 117.0
Broker-dealer related receivables.................. - - 292.2
Other investment income............................ 279.7 336.3 304.9
----------------- ---------------- -----------------
Gross investment income.......................... 2,541.4 2,465.3 4,045.8
----------------- ---------------- -----------------
Interest expense to finance short-term trading
instruments...................................... - - 983.4
Other investment expenses.......................... 413.7 434.4 463.1
----------------- ---------------- -----------------
Investment expenses.............................. 413.7 434.4 1,446.5
----------------- ---------------- -----------------
Net Investment Income.............................. $ 2,127.7 $ 2,030.9 $ 2,599.3
================= ================ =================
</TABLE>
Investment gains (losses), net, including changes in the valuation
allowances, are summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities................................... $ 119.9 $ (14.1) $ 123.1
Mortgage loans on real estate...................... (40.2) (43.1) (65.1)
Equity real estate................................. (86.6) 20.6 (18.5)
Other equity investments........................... 12.8 76.0 119.5
Dealer and trading gains........................... - - 372.5
Sales of newly issued Alliance Units............... - 52.4 -
Other.............................................. (.6) - 1.9
----------------- ---------------- -----------------
Investment Gains, Net.............................. $ 5.3 $ 91.8 $ 533.4
================= ================ =================
</TABLE>
Writedowns of fixed maturities amounted to $46.7 million, $30.8
million and $5.4 million for the years ended December 31, 1995, 1994
and 1993, respectively.
For the years ended December 31, 1995 and 1994, respectively, proceeds
received on sales of fixed maturities classified as available for sale
amounted to $8,206.0 million and $5,253.9 million. Gross gains of
$211.4 million and $65.2 million and gross losses of $64.2 million and
$50.8 million, respectively, were realized on these sales. The change
in unrealized investment gains (losses) related to fixed maturities
classified as available for sale for the years ended December 31, 1995
and 1994 amounted to $1,077.2 million and $(742.2) million,
respectively.
Gross gains of $188.5 million and gross losses of $145.0 million were
realized on sales of investments in fixed maturities held for
investment and available for sale for the year ended December 31,
1993.
F-18
<PAGE>
During each of the years ended December 31, 1995 and 1994, one
security classified as held to maturity was sold and during the eleven
months ended November 30, 1995 and the year ended December 31, 1994,
respectively, twelve and six securities so classified were transferred
to the available for sale portfolio. All actions were taken as a
result of a significant deterioration in creditworthiness. The
aggregate amortized cost of the securities sold were $1.0 million and
$19.9 million with a related investment gain of $-0- million and $.8
million recognized in 1995 and 1994, respectively; the aggregate
amortized cost of the securities transferred was $116.0 million and
$42.8 million with gross unrealized investment losses of $3.2 million
and $3.1 million charged to consolidated shareholders' equity for the
eleven months ended November 30, 1995 and the year ended December 31,
1994, respectively. On December 1, 1995, the Company transferred
$4,794.9 million of securities classified as held to maturity to the
available for sale portfolio. As a result, unrealized gains on fixed
maturities increased $307.0 million, offset by deferred policy
acquisition costs of $73.7 million, amounts attributable to
participating group annuity contracts of $39.2 million and deferred
Federal income tax of $67.9 million.
Investment gains from other equity investments for the year ended
December 31, 1993, included $79.9 million generated by DLJ's
involvement in long-term corporate development investments.
For the years ended December 31, 1995, 1994 and 1993, investment
results passed through to certain participating group annuity
contracts as interest credited to policyholders' account balances
amounted to $131.2 million, $175.8 million and $243.2 million,
respectively.
During 1995, Alliance entered into an agreement to acquire the
business of Cursitor-Eaton Asset Management Company and Cursitor
Holdings Limited (collectively, "Cursitor") for approximately $141.5
million consisting of $84.9 million in cash, 1,764,115 of Alliance's
publicly traded units ("Alliance Units"), 6% notes aggregating $21.5
million payable ratably over four years, and substantial additional
consideration which will be determined at a later date. The
transaction, which is expected to be completed during the first
quarter of 1996, is subject to the receipt of consents, regulatory
approvals, and certain other closing conditions, including client
approval of the transfer of Cursitor accounts. Upon completion of this
transaction, the Company's ownership percentage of Alliance will be
reduced.
In 1994, Alliance sold 4.96 million newly issued Alliance Units to
third parties at prevailing market prices. The sales decreased the
Company's ownership of Alliance's Units from 63.2% to 59.2%. In
addition, the Company continues to hold its 1% general partnership
interest in Alliance. The Company recognized an investment gain of
$52.4 million as a result of these transactions.
The Company's ownership interest in Alliance will be further reduced
upon the exercise of options granted to certain Alliance employees. At
December 31, 1995, Alliance had options outstanding to purchase an
aggregate of 4.8 million Alliance Units at a price ranging from
$6.0625 to $22.25 per unit. Options are exercisable at a rate of 20%
on each of the first five anniversary dates from the date of grant.
Net unrealized investment gains (losses), included in the consolidated
balance sheets as a component of equity and the changes for the
corresponding years, are summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year......................... $ (203.0) $ 131.9 $ 78.8
Changes in unrealized investment (losses) gains.... 1,117.7 (823.8) (14.1)
Effect of adopting SFAS No. 115.................... - - 283.9
Changes in unrealized investment (gains) losses attributable to:
Participating group annuity contracts.......... (78.1) 40.8 (36.2)
Deferred policy acquisition costs.............. (208.4) 269.5 (150.5)
Deferred Federal income taxes.................. (290.0) 178.6 (30.0)
----------------- ---------------- -----------------
Balance, End of Year............................... $ 338.2 $ (203.0) $ 131.9
================= ================ =================
</TABLE>
F-19
<PAGE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Balance, end of year comprises:
Unrealized investment (losses) gains on:
Fixed maturities............................... $ 615.9 $ (461.3) $ 283.9
Other equity investments....................... 31.1 7.7 75.8
Other.......................................... 31.6 14.5 25.0
----------------- ---------------- -----------------
Total........................................ 678.6 (439.1) 384.7
Amounts of unrealized investment (gains)
losses attributable to:
Participating group annuity contracts........ (72.2) 5.9 (34.9)
Deferred policy acquisition costs............ (89.4) 119.0 (150.5)
Deferred Federal income taxes................ (178.8) 111.2 (67.4)
----------------- ---------------- -----------------
Total.............................................. $ 338.2 $ (203.0) $ 131.9
================= ================ =================
</TABLE>
6) CLOSED BLOCK
Summarized financial information of the Closed Block follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets
Fixed Maturities:
Available for sale, at estimated fair value (amortized cost,
$3,662.8 and $1,270.3)........................................... $ 3,896.2 $ 1,197.0
Held to maturity, at amortized cost (estimated fair value of
$1,785.0 in 1994)................................................ - 1,927.8
Mortgage loans on real estate........................................ 1,368.8 1,543.7
Policy loans......................................................... 1,797.2 1,827.9
Cash and other invested assets....................................... 440.9 442.5
Deferred policy acquisition costs.................................... 823.6 878.1
Other assets......................................................... 286.1 288.5
----------------- -----------------
Total Assets......................................................... $ 8,612.8 $ 8,105.5
================= =================
Liabilities
Future policy benefits and policyholders' account balances........... $ 9,346.7 $ 8,965.3
Other liabilities.................................................... 160.5 104.2
----------------- -----------------
Total Liabilities.................................................... $ 9,507.2 $ 9,069.5
================= =================
</TABLE>
F-20
<PAGE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Premiums and other revenue......................... $ 753.4 $ 798.1 $ 860.2
Investment income (net of investment
expenses of $26.7, $19.0 and $17.3).............. 538.9 523.0 526.5
Investment losses, net............................. (20.2) (24.0) (15.0)
----------------- ---------------- -----------------
Total revenues............................... 1,272.1 1,297.1 1,371.7
----------------- ---------------- -----------------
Benefits and Other Deductions
Policyholders' benefits and dividends.............. 1,085.1 1,075.6 1,141.4
Other operating costs and expenses................. 62.6 70.5 102.0
----------------- ---------------- -----------------
Total benefits and other deductions.......... 1,147.7 1,146.1 1,243.4
----------------- ---------------- -----------------
Contribution from the Closed Block................. $ 124.4 $ 151.0 $ 128.3
================= ================ =================
</TABLE>
The fixed maturity portfolio, based on amortized cost, includes $4.3
million and $23.8 million at December 31, 1995 and 1994, respectively,
of restructured securities which includes problem fixed maturities of
$1.9 million and $6.4 million, respectively.
During the eleven months ended November 30, 1995, one security
classified as held to maturity was sold and ten securities classified
as held to maturity were transferred to the available for sale
portfolio. All actions resulted from a significant deterioration in
creditworthiness. The amortized cost of the security sold was $4.2
million. The aggregate amortized cost of the securities transferred
was $81.3 million with gross unrealized investment losses of $.1
million transferred to equity. At December 1, 1995, $1,750.7 million
of securities classified as held to maturity were transferred to the
available for sale portfolio. As a result, unrealized gains of $88.5
million on fixed maturities were recognized and offset by an increase
to the deferred dividend liability. Implementation of SFAS No. 115 for
the valuation of fixed maturities at December 31, 1993 resulted in the
recognition of a deferred dividend liability of $49.6 million.
At December 31, 1995 and 1994, problem mortgage loans on real estate
had an amortized cost of $36.5 million and $27.6 million,
respectively, and mortgage loans on real estate for which the payment
terms have been restructured had an amortized cost of $137.7 million
and $179.2 million, respectively. At December 31, 1995 and 1994, the
restructured mortgage loans on real estate amount included $8.8
million and $.7 million, respectively, of problem mortgage loans on
real estate.
Valuation allowances amounted to $18.4 million and $46.2 million on
mortgage loans on real estate and $4.3 million and $2.6 million on
equity real estate at December 31, 1995 and 1994, respectively.
Writedowns of fixed maturities amounted to $16.8 million and $15.9
million and $1.7 million for the years ended December 31, 1995, 1994
and 1993, respectively.
Many expenses related to Closed Block operations are charged to
operations outside of the Closed Block; accordingly, the contribution
from the Closed Block does not represent the actual profitability of
the Closed Block operations. Operating costs and expenses outside of
the Closed Block are, therefore, disproportionate to the business
outside of the Closed Block.
F-21
<PAGE>
7) DISCONTINUED OPERATIONS
Summarized financial information of the GIC Segment follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets
Mortgage loans on real estate........................................ $ 1,485.8 $ 1,730.5
Equity real estate................................................... 1,122.1 1,194.8
Other invested assets................................................ 665.2 978.8
Other assets......................................................... 579.3 529.5
----------------- -----------------
Total Assets......................................................... $ 3,852.4 $ 4,433.6
================= =================
Liabilities
Policyholders' liabilities........................................... $ 1,399.8 $ 1,924.0
Allowance for future losses.......................................... 164.2 185.6
Amounts due to continuing operations................................. 2,097.1 2,108.6
Other liabilities.................................................... 191.3 215.4
----------------- -----------------
Total Liabilities.................................................... $ 3,852.4 $ 4,433.6
================= =================
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Investment income (net of investment expenses
of $143.8, $174.0 and $175.8).................... $ 325.1 $ 395.0 $ 535.1
Investment (losses) gains, net..................... (22.9) 26.8 (22.6)
Policy fees, premiums and other income............. .7 .3 8.7
----------------- ---------------- -----------------
Total revenues..................................... 302.9 422.1 521.2
Benefits and other deductions...................... 328.0 443.8 545.9
----------------- ---------------- -----------------
Losses Charged to Allowance for Future Losses...... $ (25.1) $ (21.7) $ (24.7)
================= ================ =================
</TABLE>
In 1991, the Company established a pre-tax provision of $396.7 million
for the estimated future losses of the GIC Segment. At December 31,
1993, implementation of SFAS No. 115 for the valuation of fixed
maturities resulted in a benefit of $13.1 million, offset by a
corresponding addition to the allowance for future losses.
The amounts due to continuing operations at December 31, 1994
consisted of $3,324.0 million borrowed by the GIC Segment from
continuing operations, offset by $1,215.4 million representing an
obligation of continuing operations to provide assets to fund the
accumulated deficit of the GIC Segment. In January 1995, continuing
operations transferred $1,215.4 million in cash to the GIC Segment in
settlement of its obligation. Subsequently, the GIC Segment remitted
$1,155.4 million in cash to continuing operations in partial repayment
of borrowings by the GIC Segment. No gains or losses were recognized
on these transactions. Amounts due to continuing operations at
December 31, 1995, consisted of $2,097.1 million borrowed by the
discontinued GIC Segment.
F-22
<PAGE>
Investment income included $88.2 million and $97.7 million of interest
income for the years ended December 31, 1994 and 1993, respectively,
on amounts due from continuing operations. Benefits and other
deductions includes $154.6 million, $219.7 million and $197.1 million
of interest expense related to amounts borrowed from continuing
operations in 1995, 1994 and 1993, respectively.
Valuation allowances amounted to $19.2 million and $50.2 million on
mortgage loans on real estate and $77.9 million and $74.7 million on
equity real estate at December 31, 1995 and 1994, respectively.
Writedowns of fixed maturities amounted to $8.1 million, $17.8 million
and $1.1 million for the years ended December 31, 1995, 1994 and 1993,
respectively.
The fixed maturity portfolio, based on amortized cost, includes $15.1
million and $43.3 million at December 31, 1995 and 1994, respectively,
of restructured securities. These amounts include problem fixed
maturities of $6.1 million and $9.7 million at December 31, 1995 and
1994, respectively.
At December 31, 1995 and 1994, problem mortgage loans on real estate
had amortized costs of $35.4 million and $14.9 million, respectively,
and mortgage loans on real estate for which the payment terms have
been restructured had amortized costs of $289.3 million and $371.2
million, respectively.
At December 31, 1995 and 1994, the GIC Segment had $310.9 million and
$312.2 million, respectively, of real estate acquired in satisfaction
of debt.
8) SHORT-TERM AND LONG-TERM DEBT
Short-term and long-term debt consists of the following:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1995 1994
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Short-term debt...................................................... $ - $ 20.0
----------------- -----------------
Long-term debt:
Equitable Life:
Surplus notes, 6.95%, scheduled to mature 2005..................... 399.3 -
Surplus notes, 7.70%, scheduled to mature 2015..................... 199.6 -
Eurodollar notes, 10.375% due 1995................................. - 34.6
Eurodollar notes, 10.5% due 1997................................... 76.2 76.2
Zero coupon note, 11.25% due 1997.................................. 120.1 107.8
Other.............................................................. 16.3 14.3
----------------- -----------------
Total Equitable Life........................................... 811.5 232.9
----------------- -----------------
Wholly Owned and Joint Venture Real Estate:
Mortgage notes, 4.98% - 12.75% due through 2019.................... 1,084.4 1,080.6
----------------- -----------------
Alliance:
Other.............................................................. 3.4 3.9
----------------- -----------------
Total long-term debt................................................. 1,899.3 1,317.4
----------------- -----------------
Total Short-term and Long-term Debt.................................. $ 1,899.3 $ 1,337.4
================= =================
</TABLE>
Short-term Debt
---------------
Equitable Life has a $350.0 million bank credit facility available to
fund short-term working capital needs and to facilitate the securities
settlement process. The credit facility consists of two types of
borrowing options with varying interest rates. The interest rates are
based on external indices dependent on the type of borrowing and at
December 31, 1995 range from 5.8% (the London Interbank Offering Rate
plus 22.5 basis points) to 8.5% (the prime rate). There were no
borrowings outstanding under this bank credit facility at December 31,
1995.
F-23
<PAGE>
Equitable Life has a commercial paper program with an issue limit of
$500.0 million. This program is available for general corporate
purposes used to support Equitable Life's liquidity needs and is
supported by Equitable Life's existing $350.0 million five-year bank
credit facility. There were no borrowings outstanding under this
program at December 31, 1995.
In 1994, Alliance established a $100.0 million revolving credit
facility with several banks. On March 31, 1997, the revolving credit
facility converts into a term loan payable in quarterly installments
through March 31, 1999. Outstanding borrowings generally bear interest
at the Eurodollar rate plus .875% per annum through March 31, 1997 and
at the Eurodollar rate plus 1.125% per annum after conversion through
March 31, 1999. In addition, a quarterly commitment fee of .25% per
annum is paid on the average daily unused amount. At December 31,
1995, there were no amounts outstanding under the facility.
In 1994, Alliance also established a $100.0 million commercial paper
program and entered into a three-year $100.0 million revolving credit
facility with a group of commercial banks to support commercial paper
to be issued under the program and for general corporate purposes.
Amounts outstanding under the facility bear interest at an annual rate
ranging from the Eurodollar rate plus .225% to the Eurodollar rate
plus .2875%. A fee of .125% per annum is paid quarterly on the entire
facility. At December 31, 1995, Alliance had not issued any commercial
paper and there were no amounts outstanding under the revolving credit
facility.
During 1994, EREIM established two bank lines of credit totaling $30.0
million of which $20.0 million was outstanding at December 31, 1994.
Long-term Debt
--------------
Several of the long-term debt agreements have restrictive covenants
related to the total amount of debt, net tangible assets and other
matters. The Company is in compliance with all debt covenants.
On December 18, 1995, Equitable Life issued, in accordance with
Section 1307 of the New York Insurance Law, $400.0 million of surplus
notes having an interest rate of 6.95% scheduled to mature in 2005 and
$200.0 million of surplus notes having an interest rate of 7.70%
scheduled to mature in 2015. Proceeds from the issuance of the surplus
notes were $596.6 million, net of related issuance costs. The
unamortized discount on the surplus notes was $1.1 million at December
31, 1995. Payments of interest on or principal of the surplus notes
are subject to prior approval by the New York Insurance Department.
The Company has pledged real estate, mortgage loans, cash and
securities amounting to $1,629.7 million and $1,744.4 million at
December 31, 1995 and 1994, respectively, as collateral for certain
long-term debt.
At December 31, 1995, aggregate maturities of the long-term debt based
on required principal payments at maturity for 1996 and the succeeding
four years are $124.0 million, $466.6 million, $309.5 million, $15.8
million, respectively, and $1,015.0 million thereafter.
9) FEDERAL INCOME TAXES
A summary of the Federal income tax expense (benefit) in the
consolidated statements of earnings is shown below:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Federal income tax expense (benefit):
Current.......................................... $ (11.7) $ 4.0 $ 115.8
Deferred......................................... 124.1 97.2 (24.5)
----------------- ---------------- -----------------
Total.............................................. $ 112.4 $ 101.2 $ 91.3
================= ================ =================
</TABLE>
F-24
<PAGE>
The Federal income taxes attributable to consolidated operations are
different from the amounts determined by multiplying the earnings
before Federal income taxes and cumulative effect of accounting change
by the expected Federal income tax rate of 35%. The sources of the
difference and the tax effects of each are as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Expected Federal income tax expense................ $ 143.5 $ 138.1 $ 106.3
Differential earnings amount....................... - (16.8) (23.2)
Adjustment of tax audit reserves................... 4.1 (4.6) 22.9
Tax rate adjustment................................ - - (5.0)
Other.............................................. (35.2) (15.5) (9.7)
----------------- --------------- -----------------
Federal Income Tax Expense......................... $ 112.4 $ 101.2 $ 91.3
================= ================ =================
</TABLE>
Prior to the date of demutualization, Equitable Life reduced its
deduction for policyholder dividends by the differential earnings
amount. This amount was computed, for each tax year, by multiplying
Equitable Life's average equity base, as determined for tax purposes,
by an estimate of the excess of an imputed earnings rate for stock
life insurance companies over the average mutual life insurance
companies' earnings rate. The differential earnings amount for each
tax year was subsequently recomputed when actual earnings rates were
published by the Internal Revenue Service. As a stock life insurance
company, Equitable Life is no longer required to reduce its
policyholder dividend deduction by the differential earnings amount,
but differential earnings amounts for pre-demutualization years were
still being recomputed in 1994 and 1993.
The components of the net deferred Federal income tax asset are as
follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1995 December 31, 1994
--------------------------------- ---------------------------------
ASSETS LIABILITIES Assets Liabilities
--------------- ---------------- --------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Deferred policy acquisition costs,
reserves and reinsurance............. $ - $ 303.2 $ - $ 220.3
Investments............................ - 326.9 - 18.7
Compensation and related benefits...... 293.0 - 307.3 -
Other.................................. - 32.3 - 5.8
--------------- ---------------- --------------- ---------------
Total.................................. $ 293.0 $ 662.4 $ 307.3 $ 244.8
=============== ================ =============== ===============
</TABLE>
The deferred Federal income tax expense (benefit) impacting operations
reflect the net tax effects of temporary differences between the
carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. The sources of
these temporary differences and the tax effects of each are as
follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Deferred policy acquisition costs, reserves
and reinsurance.................................. $ 55.1 $ 13.0 $ (46.7)
Investments........................................ 13.0 89.3 60.4
Compensation and related benefits.................. 30.8 10.0 (50.1)
Other.............................................. 25.2 (15.1) 11.9
----------------- ---------------- -----------------
Deferred Federal Income Tax Expense (Benefit)...... $ 124.1 $ 97.2 $ (24.5)
================= ================ =================
</TABLE>
F-25
<PAGE>
The Internal Revenue Service completed its audit of the Company's
Federal income tax returns for the years 1984 through 1988. There was
no material effect on the Company's consolidated results of
operations.
10) REINSURANCE AGREEMENTS
The Insurance Group assumes and cedes reinsurance with other insurance
companies. The Insurance Group evaluates the financial condition of
its reinsurers to minimize its exposure to significant losses from
reinsurer insolvencies. The effect of reinsurance (excluding group
life and health) is summarized as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Direct premiums.................................... $ 474.2 $ 476.7 $ 458.8
Reinsurance assumed................................ 171.3 180.5 169.9
Reinsurance ceded.................................. (38.7) (31.6) (29.6)
----------------- ---------------- -----------------
Premiums........................................... $ 606.8 $ 625.6 $ 599.1
================= ================ =================
Universal Life and Investment-type Product
Policy Fee Income Ceded.......................... $ 38.9 $ 27.5 $ 33.7
================= ================ =================
Policyholders' Benefits Ceded...................... $ 48.2 $ 20.7 $ 72.3
================= ================ =================
Interest Credited to Policyholders' Account
Balances Ceded................................... $ 28.5 $ 25.4 $ 24.1
================= ================ =================
</TABLE>
In February 1993, management established a practice limiting the risk
retention on new policies issued by the Insurance Group to a maximum
of $5.0 million. In addition, effective January 1, 1994, all in force
business above $5.0 million was reinsured. The Insurance Group also
reinsures the entire risk on certain substandard underwriting risks as
well as in certain other cases.
The Insurance Group cedes 100% of its group life and health business
to a third party insurance company. Premiums ceded totaled $260.6
million, $241.0 million and $895.1 million for the years ended
December 31, 1995, 1994 and 1993, respectively. Ceded death and
disability benefits totaled $188.1 million, $235.5 million and $787.8
million for the years ended December 31, 1995, 1994 and 1993,
respectively. Insurance liabilities ceded totaled $724.2 million and
$833.4 million at December 31, 1995 and 1994, respectively.
11) EMPLOYEE BENEFIT PLANS
The Company sponsors qualified and non-qualified defined benefit plans
covering substantially all employees (including certain qualified
part-time employees), managers and certain agents. The pension plans
are non-contributory and benefits are based on a cash balance formula
or years of service and final average earnings, if greater, under
certain grandfathering rules in the plans. The Company's funding
policy is to make the minimum contribution required by the Employee
Retirement Income Security Act of 1974.
Components of net periodic pension (credit) cost for the qualified and
non-qualified plans are as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 30.0 $ 30.3 $ 29.8
Interest cost on projected benefit obligations..... 122.0 111.0 108.0
Actual return on assets............................ (309.2) 24.4 (178.6)
Net amortization and deferrals..................... 155.6 (142.5) 55.3
----------------- ---------------- -----------------
Net Periodic Pension (Credit) Cost................. $ (1.6) $ 23.2 $ 14.5
================= ================ =================
</TABLE>
F-26
<PAGE>
The funded status of the qualified and non-qualified pension plans is as
follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Actuarial present value of obligations:
Vested............................................................... $ 1,642.4 $ 1,295.5
Non-vested........................................................... 10.9 8.7
--------------- -----------------
Accumulated Benefit Obligation......................................... $ 1,653.3 $ 1,304.2
================ =================
Plan assets at fair value.............................................. $ 1,503.8 $ 1,193.5
Projected benefit obligation........................................... 1,743.0 1,403.4
---------------- -----------------
Projected benefit obligation in excess of plan assets.................. (239.2) (209.9)
Unrecognized prior service cost........................................ (25.5) (33.2)
Unrecognized net loss from past experience different from that
assumed.............................................................. 368.2 298.9
Unrecognized net asset at transition................................... (7.3) (20.8)
Additional minimum liability........................................... (51.9) (37.8)
---------------- -----------------
Prepaid (Accrued) Pension Cost......................................... $ 44.3 $ (2.8)
================ =================
</TABLE>
The discount rate and rate of increase in future compensation levels
used in determining the actuarial present value of projected benefit
obligations were 7.25% and 4.50%, respectively, at December 31, 1995
and 8.75% and 4.88%, respectively, at December 31, 1994. As of January
1, 1995 and 1994, the expected long-term rate of return on assets for
the retirement plan was 11% and 10%, respectively.
The Company recorded, as a reduction of shareholder's equity, an
additional minimum pension liability of $35.1 million and $2.7
million, net of Federal income taxes, at December 31, 1995 and 1994,
respectively, representing the excess of the accumulated benefit
obligation over the fair value of plan assets and accrued pension
liability.
The pension plan's assets include corporate and government debt
securities, equity securities, equity real estate and shares of Group
Trusts managed by Alliance.
As of December 31, 1993, the Company changed the method of determining
the market-related value of plan assets from fair value to a
calculated value. This change in estimate had no material effect on
the Company's consolidated statements of earnings.
Prior to 1987, the qualified plan funded participants' benefits
through the purchase of non-participating annuity contracts from
Equitable Life. Benefit payments under these contracts were
approximately $36.4 million, $38.1 million and $39.9 million for the
years ended December 31, 1995, 1994 and 1993, respectively.
The Company provides certain medical and life insurance benefits
(collectively, "postretirement benefits") for qualifying employees,
managers and agents retiring from the Company on or after attaining
age 55 who have at least 10 years of service. The life insurance
benefits are related to age and salary at retirement. The costs of
postretirement benefits are recognized in accordance with the
provisions of SFAS No. 106. The Company continues to fund
postretirement benefits costs on a pay-as-you-go basis and, for the
years ended December 31, 1995, 1994 and 1993, the Company made
estimated postretirement benefits payments of $31.1 million, $29.8
million and $29.7 million, respectively.
F-27
<PAGE>
The following table sets forth the postretirement benefits plan's
status, reconciled to amounts recognized in the Company's consolidated
financial statements:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 4.0 $ 3.9 $ 5.3
Interest cost on accumulated postretirement
benefits obligation.............................. 34.7 28.6 29.2
Unrecognized prior service cost.................... (2.3) (3.9) (6.9)
Net amortization and deferrals..................... - - 1.5
----------------- ---------------- -----------------
Net Periodic Postretirement Benefits Costs......... $ 36.4 $ 28.6 $ 29.1
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Accumulated postretirement benefits obligation:
Retirees............................................................. $ 391.8 $ 300.4
Fully eligible active plan participants.............................. 50.4 33.0
Other active plan participants....................................... 64.2 44.0
---------------- -----------------
506.4 377.4
Unrecognized benefit of plan amendments................................ - 3.2
Unrecognized prior service cost........................................ 56.3 61.9
Unrecognized net loss from past experience different from that
assumed and from changes in assumptions.............................. (181.3) (64.7)
---------------- -----------------
Accrued Postretirement Benefits Cost................................... $ 381.4 $ 377.8
================ =================
</TABLE>
In 1993, the Company amended the cost sharing provisions of
postretirement medical benefits. At January 1, 1994, medical benefits
available to retirees under age 65 are the same as those offered to
active employees and medical benefits will be limited to 200% of 1993
costs for all participants.
The assumed health care cost trend rate used in measuring the
accumulated postretirement benefits obligation was 10% in 1995,
gradually declining to 3.5% in the year 2008 and in 1994 was 10%,
gradually declining to 5% in the year 2004. The discount rate used in
determining the accumulated postretirement benefits obligation was
7.25% and 8.75% at December 31, 1995 and 1994, respectively.
If the health care cost trend rate assumptions were increased by 1%,
the accumulated postretirement benefits obligation as of December 31,
1995 would be increased 6.5%. The effect of this change on the sum of
the service cost and interest cost would be an increase of 6.7%.
12) DERIVATIVES AND FAIR VALUE OF FINANCIAL INSTRUMENTS
Derivatives
-----------
The Insurance Group primarily uses derivatives for asset/liability
risk management and for hedging individual securities. Derivatives
mainly are utilized to reduce the Insurance Group's exposure to
interest rate fluctuations. Accounting for interest rate swap
transactions is on an accrual basis. Gains and losses related to
interest rate swap transactions are amortized as yield adjustments
over the remaining life of the underlying hedged security. Income and
expense resulting from interest rate swap activities are reflected in
net investment income except for hedging transactions related to
insurance liabilities. The notional amount of matched interest rate
swaps outstanding at December 31, 1995 was $1,120.8 million. The
average unexpired terms at December 31, 1995 range from 2.5 to 3.0
years. At December 31, 1995, the cost of terminating outstanding
matched swaps in a loss position was $15.9 million and the unrealized
gain on
F-28
<PAGE>
outstanding matched swaps in a gain position was $19.0 million. The
Company has no intention of terminating these contracts prior to
maturity. During 1995, 1994 and 1993, net gains (losses) of $1.4
million, $(.2) million and $-0- million, respectively, were recorded
in connection with interest rate swap activity. Equitable Life has
implemented an interest rate cap program designed to hedge crediting
rates on interest-sensitive individual annuities contracts. The
outstanding notional amounts at December 31, 1995 of contracts
purchased and sold were $2,625.0 million and $300.0 million,
respectively. The net premium paid by Equitable Life on these
contracts was $12.5 million and is being amortized ratably over the
contract periods ranging from 3 to 5 years. Income and expense
resulting from this program are reflected as an adjustment to interest
credited to policyholders' account balances.
Substantially all of DLJ's business related derivatives is by its
nature trading activities which are primarily for the purpose of
customer accommodations. DLJ's derivative activities consist of option
writing and trading in forward and futures contracts. Derivative
financial instruments have both on-and-off balance sheet implications
depending on the nature of the contracts. DLJ's involvement in swap
contracts is not significant.
Fair Value of Financial Instruments
-----------------------------------
The Company defines fair value as the quoted market prices for those
instruments that are actively traded in financial markets. In cases
where quoted market prices are not available, fair values are
estimated using present value or other valuation techniques. The fair
value estimates are made at a specific point in time, based on
available market information and judgments about the financial
instrument, including estimates of timing, amount of expected future
cash flows and the credit standing of counterparties. Such estimates
do not reflect any premium or discount that could result from offering
for sale at one time the Company's entire holdings of a particular
financial instrument, nor do they consider the tax impact of the
realization of unrealized gains or losses. In many cases, the fair
value estimates cannot be substantiated by comparison to independent
markets, nor can the disclosed value be realized in immediate
settlement of the instrument.
Certain financial instruments are excluded, particularly insurance
liabilities other than financial guarantees and investment contracts.
Fair market value of off-balance-sheet financial instruments of the
Insurance Group was not material at December 31, 1995 and 1994.
Fair value for mortgage loans on real estate are estimated by
discounting future contractual cash flows using interest rates at
which loans with similar characteristics and credit quality would be
made. Fair values for foreclosed mortgage loans and problem mortgage
loans are limited to the estimated fair value of the underlying
collateral if lower.
The estimated fair values for the Company's liabilities under GIC and
association plan contracts are estimated using contractual cash flows
discounted based on the T. Rowe Price GIC Index Rate for the
appropriate duration. For durations in excess of the published index
rate, the appropriate Treasury rate is used plus a spread equal to the
longest duration GIC rate spread published.
The estimated fair values for those group annuity contracts which are
classified as investment contracts are measured at the estimated fair
value of the underlying assets. Deposit administration contracts
(included with group annuity contracts) classified as insurance
contracts are measured at estimated fair value of the underlying
assets. The estimated fair values for single premium deferred
annuities ("SPDA") are estimated using projected cash flows discounted
at current offering rates. The estimated fair values for supplementary
contracts not involving life contingencies ("SCNILC") and annuities
certain are derived using discounted cash flows based upon the
estimated current offering rate.
Fair value for long-term debt is determined using published market
values, where available, or contractual cash flows discounted at
market interest rates. The estimated fair values for non-recourse
mortgage debt are determined by discounting contractual cash flows at
a rate which takes into account the level of current market interest
rates and collateral risk. The estimated fair values for recourse
mortgage debt are determined by discounting contractual cash flows at
a rate based upon current interest rates of other companies with
credit ratings similar to the Company. The Company's fair value of
short-term borrowings approximates their carrying value.
F-29
<PAGE>
The following table discloses carrying value and estimated fair value
for financial instruments not otherwise disclosed in Notes 3, 6 and 7:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------------------------------------
1995 1994
--------------------------------- ---------------------------------
CARRYING ESTIMATED Carrying Estimated
VALUE FAIR VALUE Value Fair Value
--------------- ---------------- --------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Consolidated Financial Instruments:
-----------------------------------
Mortgage loans on real estate.......... $ 3,638.3 $ 3,973.6 $ 4,018.0 $ 3,919.4
Other joint ventures................... 492.7 492.7 544.4 544.4
Policy loans........................... 1,976.4 2,057.5 1,731.2 1,676.6
Policyholders' account balances:
Association plans.................... 101.0 100.0 141.0 141.0
Group annuity contracts.............. 2,335.0 2,395.0 2,450.0 2,469.0
SPDA................................. 1,265.8 1,272.0 1,744.3 1,732.7
Annuities certain and SCNILC......... 649.1 680.7 599.1 624.7
Long-term debt......................... 1,899.3 1,962.9 1,317.4 1,249.2
Closed Block Financial Instruments:
-----------------------------------
Mortgage loans on real estate.......... 1,368.8 1,461.4 1,543.7 1,477.8
Other equity investments............... 151.6 151.6 179.5 179.5
Policy loans........................... 1,797.2 1,891.4 1,827.9 1,721.9
SCNILC liability....................... 34.8 34.5 39.5 37.0
GIC Segment Financial Instruments:
----------------------------------
Mortgage loans on real estate.......... 1,485.8 1,666.1 1,730.5 1,743.7
Fixed maturities....................... 107.4 107.4 219.3 219.3
Other equity investments............... 455.9 455.9 591.8 591.8
Guaranteed interest contracts.......... 329.0 352.0 835.0 855.0
Long-term debt......................... 135.1 136.0 134.8 127.9
</TABLE>
13) COMMITMENTS AND CONTINGENT LIABILITIES
The Company has provided, from time to time, certain guarantees or
commitments to affiliates, investors and others. These arrangements
include commitments by the Company, under certain conditions: to make
liquidity advances to cover delinquent principal and interest and
property protection expenses with respect to loan servicing agreements
for securitized mortgage loans which at December 31, 1995 totaled $2.8
billion (as of December 31, 1995, $4.0 million have been advanced
under these commitments); to make capital contributions of up to
$246.7 million to affiliated real estate joint ventures; to provide
equity financing to certain limited partnerships of $129.4 million at
December 31, 1995, under existing loan or loan commitment agreements;
and to provide short-term financing loans which at December 31, 1995
totaled $45.8 million. Management believes the Company will not incur
any material losses as a result of these commitments.
Equitable Life is the obligor under certain structured settlement
agreements which it had entered into with unaffiliated insurance
companies and beneficiaries. To satisfy its obligations under these
agreements, Equitable Life owns single premium annuities issued by
previously wholly owned life insurance subsidiaries. Equitable Life
has directed payment under these annuities to be made directly to the
beneficiaries under the structured settlement agreements. A contingent
liability exists with respect to these agreements should the
previously wholly owned subsidiaries be unable to meet their
obligations. Management believes the satisfaction of those obligations
by Equitable Life is remote.
At December 31, 1995, the Insurance Group had $29.0 million of letters
of credit outstanding.
F-30
<PAGE>
14) LITIGATION
A number of lawsuits have been filed against life and health insurers
in the jurisdictions in which Equitable Life and its subsidiaries do
business involving insurers' sales practices, alleged agent
misconduct, failure to properly supervise agents, and other matters.
Some of the lawsuits have resulted in the award of substantial
judgments against other insurers, including material amounts of
punitive damages, or in substantial settlements. In some states juries
have substantial discretion in awarding punitive damages. Equitable
Life and its insurance subsidiaries, like other life and health
insurers, from time to time are involved in such litigation. To date,
no such lawsuit has resulted in an award or settlement of any material
amount against the Company. Among litigations pending against
Equitable Life and its insurance subsidiaries of the type referred to
in this paragraph are the litigations described in the following two
paragraphs.
An action entitled Golomb et al. v. The Equitable Life Assurance
Society of the United States was filed on January 20, 1995 in New York
County Supreme Court. The action purports to be brought on behalf of a
class of persons insured after 1983 under Lifetime Guaranteed
Renewable Major Medical Insurance Policies issued by Equitable Life
(the "policies"). The complaint alleges that premium increases for
these policies after 1983, all of which were filed with and approved
by the New York State Insurance Department and certain other state
insurance departments, breached the terms of the insurance policies,
and that statements in the policies and elsewhere concerning premium
increases constituted fraudulent concealment, misrepresentations in
violation of New York Insurance Law Section 4226 and deceptive
practices under New York General Business Law Section 349. The
complaint seeks a declaratory judgment, injunctive relief restricting
the methods by which Equitable Life increases premiums on the policies
in the future, a refund of premiums, and punitive damages. Plaintiffs
also have indicated that they will seek damages in an unspecified
amount. Equitable Life has moved to dismiss the complaint in its
entirety on the grounds that it fails to state a claim and that
uncontroverted documentary evidence establishes a complete defense to
the claims. That motion is awaiting decision by the court. In January
1996, separate actions were filed in Pennsylvania and Texas state
courts (entitled, respectively, Malvin et al. v. The Equitable Life
Assurance Society of the United States and Bowler et al. v. The
Equitable Life Assurance Society of the United States), making claims
similar to those in the New York action described above. These new
actions are asserted on behalf of proposed classes of Pennsylvania
issued or renewed policyholders and Texas issued or renewed
policyholders, insured under the policies. The Pennsylvania and Texas
actions seek compensatory and punitive damages and injunctive relief
restricting the methods by which Equitable Life increases premiums in
the future based on the common law and statutes of those states.
Although the outcome of any litigation cannot be predicted with
certainty, particularly in the early stages of an action, Equitable
Life's management believes that the ultimate resolution of those
litigations should not have a material adverse effect on the financial
position of the Company. Due to the early stage of such litigation,
Equitable Life's management cannot make an estimate of loss, if any,
or predict whether or not such litigation will have a material adverse
effect on the Company's results of operations in any particular
period.
An action was instituted on April 6, 1995 against Equitable Life and
its wholly owned subsidiary, The Equitable of Colorado, Inc. ("EOC"),
in New York State Court, entitled Sidney C. Cole et al. v. The
Equitable Life Assurance Society of the United States and The
Equitable of Colorado, Inc., No. 95/108611 (N.Y. County). The action
is brought by the holders of a joint survivorship whole life policy
issued by EOC. The action purports to be on behalf of a class
consisting of all persons who from January 1, 1984 purchased life
insurance policies sold by Equitable Life and EOC based upon their
allegedly uniform sales presentations and policy illustrations. The
complaint puts in issue various alleged sales practices that
plaintiffs assert, among other things, misrepresented the stated
number of years that the annual premium would need to be paid.
Plaintiffs seek damages in an unspecified amount, imposition of a
constructive trust, and seek to enjoin Equitable Life and EOC from
engaging in the challenged sales practices. Equitable Life and EOC
intend to defend vigorously and believe that they have meritorious
defenses which, if successful, would dispose of the action completely.
Equitable Life and EOC further do not believe that this case is an
appropriate class action. Although the outcome of any litigation
cannot be predicted with certainty, particularly in the early stages
of an action, Equitable Life's management believes that the ultimate
F-31
<PAGE>
resolution of this litigation should not have a material adverse
effect on the financial position of the Company. Due to the early
stage of such litigation, the Company's management cannot make an
estimate of loss, if any, or predict whether or not such litigation
will have a material adverse effect on the Company's results of
operations in any particular period.
Equitable Casualty Insurance Company ("Casualty"), a captive property
and casualty insurance company organized under the laws of Vermont,
which is an indirect wholly owned subsidiary of Equitable Life, is a
party to an arbitration proceeding that commenced in August 1995 with
the selection of three arbitrators. The arbitration will resolve a
dispute among Casualty, Houston General Insurance Company ("Houston
General"), and GEICO General Insurance Company ("GEICO General")
regarding the interpretation of a reinsurance agreement that was
entered into as part of a 1980 transaction whereby Equitable General
Insurance Company ("Equitable General"), formerly an indirect
subsidiary of Equitable Life and the predecessor of GEICO General,
sold its commercial lines business along with the stock of Houston
General to subsidiaries of Tokio Marine & Fire Insurance Company, Ltd.
("Tokio Marine"). Casualty and GEICO General maintain that, under the
reinsurance agreement, Houston General assumed liability for all
losses insured under commercial lines policies written by Equitable
General and its predecessors in order to effect the transfer of that
business to Tokio Marine's subsidiaries. Houston General contends that
it did not assume reinsurance liability for losses insured under
certain of those commercial lines policies. The arbitration panel
determined to begin hearing evidence in the arbitration in June 1996.
The result of the arbitration is expected to resolve two litigations
that were commenced by Houston General and that have been stayed by
the presiding courts pending the completion of the arbitration (in one
case, Houston General named as a defendant only GEICO General but
Casualty intervened as a defendant with GEICO General, and in the
other case, Houston General named GEICO General and Equitable Life).
The arbitration is expected to be completed during the second half of
1996. While the ultimate outcome of the arbitration cannot be
predicted with certainty, the Company's management believes that the
arbitrators will recognize that Houston General's position is without
merit and contrary to the way in which the reinsurance industry
operates and therefore the ultimate resolution of this matter should
not have a material adverse effect on the Company's financial position
or results of operations.
On July 25, 1995, a Consolidated and Supplemental Class Action
Complaint ("Complaint") was filed against the Alliance North American
Government Income Trust, Inc. (the "Fund"), Alliance and certain other
defendants affiliated with Alliance, including the Holding Company,
alleging violations of Federal securities laws, fraud and breach of
fiduciary duty in connection with the Fund's investments in Mexican
and Argentine securities. A similar complaint was filed on November 7,
1995 and was subsequently consolidated with the Complaint. The
Complaint, which seeks certification of a plaintiff class of persons
who purchased or owned Class A, B or C shares of the Fund from March
27, 1992 through December 23, 1994, seeks an unspecified amount of
damages, costs, attorneys' fees and punitive damages. The principal
allegations of the Complaint are that the Fund purchased debt
securities issued by the Mexican and Argentine governments in amounts
that were not permitted by the Funds' investment objective, and that
there was no shareholder vote to change the investment objective to
permit purchases in such amounts. The Complaint further alleges that
the decline in the value of the Mexican and Argentine securities held
by the Fund caused the Fund's net asset value to decline to the
detriment of the Fund's shareholders. On September 26, 1995, the
defendants jointly filed a motion to dismiss the Complaint which has
not yet been decided by the Court. Alliance believes that the
allegations in the Complaint are without merit and intends to
vigorously defend against these claims. While the ultimate results of
this action cannot be determined, management of Alliance does not
expect that this action will have a material adverse effect on
Alliance's business.
On January 26, 1996, a purported purchaser of certain notes and
warrants to purchase shares of common stock of Rickel Home Centers,
Inc. ("Rickel") filed a class action complaint against Donaldson,
Lufkin & Jenrette Securities Corporation ("DLJSC"), a wholly owned
subsidiary of DLJ, and certain other defendants for unspecified
compensatory and punitive damages in the United States District Court
for the Southern District of New York. The suit was brought on behalf
of the purchasers of 126,457 units consisting of $126,457,000
aggregate principal amount of 13 1/2% senior notes due 2001 and
126,457 warrants to purchase shares of common stock of Rickel (the
"Units") issued by Rickel in October 1994. The complaint alleges
violations of Federal securities laws and common law fraud against
DLJSC, as the underwriter of
F-32
<PAGE>
the Units and as an owner of 7.3% of the common stock of Rickel, Eos
Partners, L.P., and General Electric Capital Corporation, each as
owners of 44.2% of the common stock of Rickel, and members of the
Board of Directors of Rickel, including a DLJSC Managing Director. The
complaint seeks to hold DLJSC liable for alleged misstatements and
omissions contained in the prospectus and registration statement filed
in connection with the offering of the Units, alleging that the
defendants knew of financial losses and a decline in value of Rickel
in the months prior to the offering and did not disclose such
information. The complaint also alleges that Rickel failed to pay its
semi-annual interest payment due on the Units on December 15, 1995 and
that Rickel filed a voluntary petition for reorganization pursuant to
Chapter 11 of the United States Bankruptcy Code on January 10, 1996.
DLJSC intends to defend itself vigorously against all of the
allegations contained in the complaint. Although there can be no
assurance, DLJ does not believe the outcome of this litigation will
have a material adverse effect on its financial condition. Due to the
early stage of this litigation, based on the information currently
available to it, DLJ's management cannot make an estimate of loss or
predict whether or not such litigation will have a material adverse
effect on DLJ's results of operations in any particular period.
On June 12, 1995, a purported purchaser of certain securities issued
by Spectravision, Inc. ("Spectravision") filed a class action
complaint against DLJSC and certain other defendants for unspecified
damages in the U.S. District Court for the Northern District of Texas.
The suit was brought on behalf of the purchasers of $260,795,000 of
securities issued by Spectravision in November 1992, and alleges
violations of the Federal securities laws and the Texas Securities
Act, common law fraud and negligent misrepresentation. The securities
were issued by Spectravision pursuant to a prepackaged bankruptcy
reorganization plan. DLJSC served as financial advisor to
Spectravision in its reorganization and as Dealer Manager for
Spectravision's 1992 issuance of the securities. DLJSC is also being
sued as a seller of certain notes of Spectravision acquired and resold
by DLJSC. The complaint seeks to hold DLJSC liable for various alleged
misstatements and omissions contained in prospectuses and other
materials issued between July 1992 and June 1994. DLJSC intends to
defend itself vigorously against all of the allegations contained in
the complaint. On June 8, 1995, Spectravision filed a Chapter 11
petition in the United States Bankruptcy Court for the District of
Delaware. On January 5, 1996, the district court in the litigation
involving DLJSC ordered a partial stay of discovery until
Spectravision has emerged from bankruptcy or six months from the date
of the stipulated stay (whichever comes first). Accordingly, discovery
of DLJSC has not yet occurred. Although there can be no assurance, DLJ
does not believe that the ultimate outcome of this litigation will
have a material adverse effect on its financial condition. Due to the
early stage of such litigation, based upon information currently
available to it, DLJ's management cannot make an estimate of loss or
predict whether or not such litigation will have a material adverse
effect on DLJ's results of operations in any particular period.
Plaintiff's counsel in the class action against DLJSC described above
has also filed another securities class action based on similar
factual allegations. Such suit names as defendants Spectravision and
its directors, and was brought on behalf of a class of purchasers of
$209.0 million of stock and $77.0 million of notes issued by
Spectravision in October 1993. DLJSC served as the managing
underwriter for both of these issuances. DLJSC has not been named as a
defendant in this suit, although it has been reported to DLJSC that
plaintiff's counsel is contemplating seeking to amend the complaint to
add DLJSC as a defendant in that action.
In October 1995, DLJSC was named as a defendant in a purported class
action filed in a Texas State Court on behalf of the holders of $550.0
million principal amount of subordinated redeemable discount
debentures of National Gypsum Corporation ("NGC") canceled in
connection with a Chapter 11 plan of reorganization for NGC
consummated in July 1993. The named plaintiff in the State Court
action also filed an adversary proceeding in the Bankruptcy Court for
the Northern District of Texas seeking a declaratory judgment that the
confirmed NGC plan of reorganization does not bar the class action
claims. Subsequent to the consummation of NGC's plan of
reorganization, NGC's shares traded for values substantially in excess
of, and in 1995 NGC was acquired for a value substantially in excess
of, the values upon which NGC's plan of reorganization was based. The
two actions arise out of DLJSC's activities as financial advisor to
NGC in the course of NGC's Chapter 11 reorganization proceedings. The
class action complaint alleges that the plan of reorganization
submitted by NGC was based upon projections by NGC and DLJSC which
intentionally understated forecasts, and provided misleading and
incorrect information in order to hide NGC's true value and that
defendants breached their fiduciary duties by, among other things,
providing false, misleading or incomplete information to deliberately
understate the value of NGC. The class action complaint seeks
compensatory and punitive damages purportedly sustained by the class.
The Texas State
F-33
<PAGE>
Court action has subsequently been removed to the Bankruptcy Court,
which removal is being opposed by the plaintiff. DLJSC intends to
defend itself vigorously against all of the allegations contained in
the complaint. Although there can be no assurance, DLJ does not
believe that the ultimate outcome of this litigation will have a
material adverse effect on its financial condition. Due to the early
stage of such litigation, based upon the information currently
available to it, DLJ's management cannot make an estimate of loss or
predict whether or not such litigation will have a material adverse
effect on DLJ's results of operations in any particular period.
In November and December 1995, DLJSC, along with various other
parties, was named as a defendant in a number of purported class
actions filed in the U.S. District Court for the Eastern District of
Louisiana. The complaints allege violations of the Federal securities
laws arising out of a public offering in 1994 of $435.0 million of
first mortgage notes of Harrah's Jazz Company and Harrah's Jazz
Finance Corp. The complaints seek to hold DLJSC liable for various
alleged misstatements and omissions contained in the prospectus dated
November 9, 1994. DLJSC intends to defend itself vigorously against
all of the allegations contained in the complaints. Although there can
be no assurance, DLJ does not believe that the ultimate outcome of
this litigation will have a material adverse effect on its financial
condition. Due to the early stage of this litigation, based upon the
information currently available to it, DLJ's management cannot make an
estimate of loss or predict whether or not such litigation will have a
material adverse effect on DLJ's results of operations in any
particular period.
In addition to the matters described above, Equitable Life and its
subsidiaries and DLJ and its subsidiaries are involved in various
legal actions and proceedings in connection with their businesses.
Some of the actions and proceedings have been brought on behalf of
various alleged classes of claimants and certain of these claimants
seek damages of unspecified amounts. While the ultimate outcome of
such matters cannot be predicted with certainty, in the opinion of
management no such matter is likely to have a material adverse effect
on the Company's consolidated financial position or results of
operations.
15) LEASES
The Company has entered into operating leases for office space and
certain other assets, principally data processing equipment and office
furniture and equipment. Future minimum payments under noncancelable
leases for 1996 and the succeeding four years are $114.8 million,
$101.8 million, $90.0 million, $73.6 million, $57.7 million and $487.0
million thereafter. Minimum future sublease rental income on these
noncancelable leases for 1996 and the succeeding four years are $11.0
million, $8.7 million, $6.9 million, $4.6 million, $2.9 million and
$1.1 million thereafter.
At December 31, 1995, the minimum future rental income on
noncancelable operating leases for wholly owned investments in real
estate for 1996 and the succeeding four years are $292.9 million,
$271.2 million, $248.1 million, $226.4 million, $195.5 million and
$1,018.8 million thereafter.
F-34
<PAGE>
16) OTHER OPERATING COSTS AND EXPENSES
Other operating costs and expenses consisted of the following:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Compensation costs................................. $ 595.9 $ 690.0 $ 1,452.3
Commissions........................................ 314.3 313.0 551.1
Short-term debt interest expense................... 11.4 19.0 317.1
Long-term debt interest expense.................... 108.1 98.3 86.0
Amortization of policy acquisition costs........... 320.4 318.1 275.9
Capitalization of policy acquisition costs......... (391.0) (410.9) (397.8)
Rent expense, net of sub-lease income.............. 124.8 128.9 159.5
Other.............................................. 772.6 786.7 1,140.1
----------------- ---------------- -----------------
Total.............................................. $ 1,856.5 $ 1,943.1 $ 3,584.2
================= ================ =================
</TABLE>
During the years ended December 31, 1995, 1994 and 1993, the Company
restructured certain operations in connection with cost reduction
programs and recorded pre-tax provisions of $32.0 million, $20.4
million and $96.4 million, respectively. The amounts paid during 1995,
associated with the 1995 and 1994 cost reduction programs, totaled
$24.0 million. At December 31, 1995, the liabilities associated with
the 1995 and 1994 cost reduction programs amounted to $37.8 million.
The 1995 cost reduction program included relocation expenses,
including the accelerated amortization of building improvements
associated with the relocation of the home office. The 1994 cost
reduction program included costs associated with the termination of
operating leases and employee severance benefits in connection with
the consolidation of 16 insurance agencies. The 1993 cost reduction
program primarily reflected severance benefits of terminated employees
in connection with the combination of a wholly owned subsidiary of the
Company with Alliance.
17) INSURANCE GROUP STATUTORY FINANCIAL INFORMATION
Equitable Life is restricted as to the amounts it may pay as dividends
to the Holding Company. Under the New York Insurance Law, the New York
Superintendent has broad discretion to determine whether the financia1
condition of a stock life insurance company would support the payment
of dividends to its shareholders. For the years ended December 31,
1995, 1994 and 1993, statutory (loss) earnings totaled $(352.4)
million, $67.5 million and $324.0 million, respectively. No amounts
are expected to be available for dividends from Equitable Life to the
Holding Company in 1996.
At December 31, 1995, the Insurance Group, in accordance with various
government and state regulations, had $18.9 million of securities
deposited with such government or state agencies.
F-35
<PAGE>
Accounting practices used to prepare statutory financial statements
for regulatory filings of stock life insurance companies differ in
certain instances from GAAP. The following reconciles the Company's
statutory change in surplus and capital stock and statutory surplus
and capital stock determined in accordance with accounting practices
prescribed by the New York Insurance Department with net earnings and
equity on a GAAP basis.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Net change in statutory surplus and capital stock.. $ 78.1 $ 292.4 $ 190.8
Change in asset valuation reserves................. 365.7 (285.2) 639.1
----------------- ---------------- -----------------
Net change in statutory surplus, capital stock
and asset valuation reserves..................... 443.8 7.2 829.9
Adjustments:
Future policy benefits and policyholders'
account balances............................... (67.9) (11.0) (171.0)
Deferred policy acquisition costs................ 70.6 92.8 121.8
Deferred Federal income taxes.................... (150.0) (59.7) (57.5)
Valuation of investments......................... 189.1 45.2 202.3
Valuation of investment subsidiary............... (188.6) 396.6 (464.9)
Limited risk reinsurance......................... 416.9 74.9 85.2
Issuance of surplus notes........................ (538.9) - -
Sale of subsidiary and joint venture............. - - (366.5)
Contribution from the Holding Company............ - (300.0) -
Postretirement benefits.......................... (26.7) 17.1 23.8
Other, net....................................... 115.1 (44.0) 60.3
GAAP adjustments of Closed Block................. (3.1) 4.5 (16.0)
GAAP adjustments of discontinued GIC
Segment........................................ 37.3 42.8 (35.0)
----------------- ---------------- -----------------
Net Earnings....................................... $ 297.6 $ 266.4 $ 212.4
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Statutory surplus and capital stock................ $ 2,202.9 $ 2,124.8 $ 1,832.4
Asset valuation reserves........................... 1,345.9 980.2 1,265.4
----------------- ---------------- -----------------
Statutory surplus, capital stock and asset
valuation reserves............................... 3,548.8 3,105.0 3,097.8
Adjustments:
Future policy benefits and policyholders'
account balances............................... (1,017.4) (949.5) (938.5)
Deferred policy acquisition costs................ 3,083.3 3,221.1 2,858.8
Deferred Federal income taxes.................... (450.8) (26.8) (137.8)
Valuation of investments......................... 417.7 (794.1) (29.8)
Valuation of investment subsidiary............... (665.1) (476.5) (873.1)
Limited risk reinsurance......................... (429.0) (845.9) (920.8)
Issuance of surplus notes........................ (538.9) - -
Postretirement benefits.......................... (343.3) (316.6) (333.7)
Other, net....................................... 4.4 (79.2) (81.9)
GAAP adjustments of Closed Block................. 575.7 578.8 574.2
GAAP adjustments of discontinued GIC
Segment........................................ (184.6) (221.9) (264.6)
----------------- ---------------- -----------------
Total Shareholder's Equity......................... $ 4,000.8 $ 3,194.4 $ 2,950.6
================= ================ =================
</TABLE>
F-36
<PAGE>
18) BUSINESS SEGMENT INFORMATION
The Company has three major business segments: Individual Insurance
and Annuities; Investment Services and Group Pension.
Consolidation/elimination principally includes debt not specific to
any business segment. Attributed Insurance Capital represents net
assets and related revenues and earnings of the Insurance Group not
assigned to the insurance segments. Interest expense related to debt
not specific to any business segment is presented within Corporate
interest expense. Information for all periods is presented on a
comparable basis.
The Individual Insurance and Annuities segment offers a variety of
traditional, variable and interest-sensitive life insurance products,
disability income, annuity products and mutual fund and other
investment products to individuals and small groups. This segment
includes Separate Accounts for certain individual insurance and
annuity products.
The Investment Services segment provides investment fund management,
primarily to institutional clients. This segment includes Separate
Accounts which provide various investment options for group clients
through pooled or single group accounts.
Intersegment investment advisory and other fees of approximately
$124.1 million, $135.3 million and $128.6 million for 1995, 1994 and
1993, respectively, are included in total revenues of the Investment
Services segment. These fees, excluding amounts related to the
discontinued GIC Segment of $14.7 million, $27.4 million and $17.0
million for 1995, 1994 and 1993, respectively, are eliminated in
consolidation.
The Group Pension segment administers traditional participating group
annuity contracts with conversion features, generally for corporate
qualified pension plans, and association plans which provide full
service retirement programs for individuals affiliated with
professional and trade associations.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Individual insurance and annuities................. $ 3,254.6 $ 3,110.7 $ 2,981.5
Group pension...................................... 292.0 359.1 426.6
Attributed insurance capital....................... 61.2 79.4 61.6
----------------- ---------------- -----------------
Insurance operations............................. 3,607.8 3,549.2 3,469.7
Investment services................................ 949.1 935.2 2,792.6
Consolidation/elimination.......................... (34.9) (24.7) (40.5)
----------------- ---------------- -----------------
Total.............................................. $ 4,522.0 $ 4,459.7 $ 6,221.8
================= ================ =================
Earnings (loss) before Federal income taxes
and cumulative effect of accounting change
Individual insurance and annuities................. $ 274.4 $ 245.5 $ 76.2
Group pension...................................... (13.3) 15.8 2.0
Attributed insurance capital....................... 18.7 69.8 49.0
----------------- ---------------- -----------------
Insurance operations............................. 279.8 331.1 127.2
Investment services................................ 161.2 177.5 302.1
Consolidation/elimination.......................... (3.1) .3 .5
----------------- ---------------- -----------------
Subtotal..................................... 437.9 508.9 429.8
Corporate interest expense......................... (27.9) (114.2) (126.1)
----------------- ---------------- -----------------
Total.............................................. $ 410.0 $ 394.7 $ 303.7
================= ================ =================
</TABLE>
F-37
<PAGE>
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets
Individual insurance and annuities..................................... $ 50,328.8 $ 44,063.4
Group pension.......................................................... 4,033.3 4,222.8
Attributed insurance capital........................................... 2,391.6 2,609.8
---------------- -----------------
Insurance operations................................................. 56,753.7 50,896.0
Investment services.................................................... 12,842.9 12,127.9
Consolidation/elimination.............................................. (354.4) (1,614.4)
---------------- -----------------
Total.................................................................. $ 69,242.2 $ 61,409.5
================ =================
</TABLE>
19) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The quarterly results of operations for the years ended December 31,
1995, 1994 and 1993, are summarized below:
<TABLE>
<CAPTION>
THREE MONTHS ENDED,
------------------------------------------------------------------------------
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
----------------- ----------------- ------------------ ------------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
1995
----
Total Revenues................ $ 1,074.7 $ 1,158.4 $ 1,127.1 $ 1,161.8
================= ================= ================== ==================
Net Earnings.................. $ 59.0 $ 94.3 $ 91.2 $ 53.1
================= ================= ================== ==================
1994
----
Total Revenues................ $ 1,107.4 $ 1,075.0 $ 1,153.8 $ 1,123.5
================= ================= ================== ==================
Earnings before Cumulative
Effect of Accounting
Change...................... $ 64.0 $ 68.4 $ 89.1 $ 72.0
================= ================= ================== ==================
Net Earnings.................. $ 36.9 $ 68.4 $ 89.1 $ 72.0
================= ================= ================== ==================
1993
----
Total Revenues................ $ 1,502.2 $ 1,539.7 $ 1,679.4 $ 1,500.5
================= ================= ================== ==================
Net Earnings.................. $ 32.3 $ 47.1 $ 68.8 $ 64.2
================= ================= ================== ==================
</TABLE>
20) INVESTMENT IN DLJ
On December 15, 1993, the Company sold a 61% interest in DLJ to the
Holding Company for $800.0 million in cash and securities. The excess
of the proceeds over the book value in DLJ at the date of sale of
$340.2 million has been reflected as a capital contribution. In 1995,
DLJ completed the initial public offering ("IPO") of 10.58 million
shares of its common stock, which included 7.28 million of the Holding
Company's shares in DLJ, priced at $27 per share. Concurrent with the
IPO, the Company contributed equity securities to DLJ having a market
value of $21.2 million. Upon completion of the IPO, the Company's
ownership percentage was reduced to 36.1%. The Company's ownership
interest will be further reduced upon the issuance of common stock
after the vesting of forfeitable restricted stock units acquired by
and/or the exercise of options granted to certain DLJ employees. At
December 31, 1995, DLJ had options
F-38
<PAGE>
outstanding to purchase approximately 9.2 million shares of DLJ common
stock at $27.00 per share. Options are exercisable over a period of up
to ten years. DLJ restricted stock units represents forfeitable rights
to receive approximately 5.2 million shares of DLJ common stock
through February 2000.
The results of operations and cash flows of DLJ through the date of
sale are included in the consolidated statements of earnings and cash
flow for the year ended December 31, 1993. For the period subsequent
to the date of sale, the results of operations of DLJ are accounted
for on the equity basis and are included in commissions, fees and
other income in the consolidated statements of earnings. The Company's
carrying value of DLJ is included in investment in and loans to
affiliates in the consolidated balance sheets.
Summarized balance sheets information for DLJ, reconciled to the
Company's carrying value of DLJ, are as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets:
Trading account securities, at market value............................ $ 10,911.4 $ 8,970.0
Securities purchased under resale agreements........................... 18,748.2 10,476.4
Broker-dealer related receivables...................................... 13,023.7 11,784.8
Other assets........................................................... 1,893.2 2,030.4
---------------- -----------------
Total Assets........................................................... $ 44,576.5 $ 33,261.6
================ =================
Liabilities:
Securities sold under repurchase agreements............................ $ 26,744.8 $ 18,356.7
Broker-dealer related payables......................................... 12,915.5 10,618.0
Short-term and long-term debt.......................................... 1,717.5 1,956.5
Other liabilities...................................................... 1,775.0 1,285.1
---------------- -----------------
Total liabilities...................................................... 43,152.8 32,216.3
Cumulative exchangeable preferred stock................................ 225.0 225.0
Total shareholders' equity............................................. 1,198.7 820.3
---------------- -----------------
Total Liabilities, Cumulative Exchangeable Preferred Stock and
Shareholders' Equity................................................. $ 44,576.5 $ 33,261.6
================ =================
DLJ's equity as reported............................................... $ 1,198.7 $ 820.3
Unamortized cost in excess of net assets acquired in 1985
and other adjustments................................................ 40.5 50.8
The Holding Company's equity ownership in DLJ.......................... (499.0) (532.1)
Minority interest in DLJ............................................... (324.3) -
---------------- -----------------
The Company's Carrying Value of DLJ.................................... $ 415.9 $ 339.0
================ =================
</TABLE>
F-39
<PAGE>
Summarized statements of earnings information for DLJ reconciled to
the Company's equity in earnings of DLJ is as follows:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------
1995 1994
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Commission, fees and other income...................................... $ 1,325.9 $ 953.5
Net investment income.................................................. 904.1 791.9
Dealer, trading and investment gains, net.............................. 528.6 263.3
---------------- -----------------
Total Revenues......................................................... 2,758.6 2,008.7
Total expenses including income taxes.................................. 2,579.5 1,885.7
---------------- -----------------
Net earnings........................................................... 179.1 123.0
Dividends on preferred stock........................................... 19.9 20.9
---------------- -----------------
Earnings Applicable to Common Shares................................... $ 159.2 $ 102.1
================ =================
DLJ's earnings applicable to common shares as reported................. $ 159.2 $ 102.1
Amortization of cost in excess of net assets acquired in 1985.......... (3.9) (3.1)
The Holding Company's equity in DLJ's earnings......................... (90.4) (60.9)
Minority interest in DLJ............................................... (6.5) -
---------------- -----------------
The Company's Equity in DLJ's Earnings................................. $ 58.4 $ 38.1
================ =================
</TABLE>
21) RELATED PARTY TRANSACTIONS
On August 31, 1993, the Company sold $661.0 million of primarily
privately placed below investment grade fixed maturities to EQ Asset
Trust 1993, a limited purpose business trust, wholly owned by the
Holding Company. The Company recognized a $4.1 million gain net of
related deferred policy acquisition costs, deferred Federal income tax
and amounts attributable to participating group annuity contracts. In
conjunction with this transaction, the Company received $200.0 million
of Class B Notes issued by EQ Asset Trust 1993. These notes have
interest rates ranging from 6.85% to 9.45%. The Class B Notes are
reflected in investments in and loans to affiliates on the
consolidated balance sheets.
F-40
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
The Equitable Life Assurance Society of the United States
and Contractowners of Separate Account A
of The Equitable Life Assurance Society of the United States
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly,
in all material respects, the financial position of Common Stock Fund,
Intermediate Government Securities Fund, Money Market Fund, Balanced Fund,
Aggressive Stock Fund, Growth Investors Fund, Conservative Investors Fund,
High Yield Fund, Global Fund, Growth & Income Fund, Quality Bond Fund, Equity
Index Fund and International Fund, separate investment funds of The Equitable
Life Assurance Society of the United States ("Equitable Life") Separate
Account A at December 31, 1995, the results of each of their operations and
changes in each of their net assets for the periods indicated in conformity
with generally accepted accounting principles. These financial statements are
the responsibility of Equitable Life's management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with
generally accepted auditing standards which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
shares in The Hudson River Trust at December 31, 1995 with the transfer agent,
provide a reasonable basis for the opinion expressed above. The unit value
information presented in Note 6 for each of the years prior to December 31,
1993 were audited by other independent accountants whose report dated February
10, 1993 expressed an unqualified opinion on the financial statements
containing such information.
PRICE WATERHOUSE LLP
New York, NY
February 7, 1996
FSA-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
INTERMEDIATE
COMMON GOVERNMENT MONEY
STOCK SECURITIES MARKET BALANCED
FUND FUND FUND FUND
---------------- ------------ ------------ ---------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Hudson River Trust, at value (Note 2):
Cost: $2,730,574,741.......................... $3,178,176,762
22,292,402.......................... $22,705,464
79,144,981.......................... $78,776,275
1,000,920,237.......................... $1,042,706,057
1,907,367,665..........................
275,629,206..........................
66,943,785..........................
32,825,077..........................
292,617,275..........................
63,444,279..........................
16,440,543..........................
84,114,345..........................
14,965,497..........................
Receivable for The Hudson River Trust shares......... -- -- -- 45,138
Due from Equitable Life's General Account (Note 3)... 9,626,077 213,032 1,375,168 47,201
--------------- ----------- ----------- --------------
Total assets................................. 3,187,802,839 22,918,496 80,151,443 1,042,798,396
--------------- ----------- ----------- --------------
LIABILITIES:
Payable for The Hudson River Trust shares............ 9,392,501 212,486 1,370,908 --
Due to Equitable Life's General Account (Note 3)..... -- -- -- --
Net accumulated amount of (i) mortality risk, death benefit, expense and
expense risk charges and (ii) mortality and other gains and losses
retained by Equitable Life (Note 3)................ 424,968 382,215 523,239 684,668
-------------- ----------- ----------- --------------
Total liabilities............................ 9,817,469 594,701 1,894,147 684,668
-------------- ------------ ----------- --------------
NET ASSETS (NOTE 5).................................. $3,177,985,370 $22,323,795 $78,257,296 $1,042,113,728
============== =========== =========== ==============
EQUI-VEST Contracts:
Units Value........................................ $ 162.42 $ 27.22 $ 30.92
============== =========== ==============
Units Outstanding.................................. 16,291,858 1,020,875 30,212,070
============== =========== ==============
Old Contracts:
Units Value........................................ $ 199.66 32.00
============== ===========
Units Outstanding.................................. 387,086 139,918
============== ===========
EQUIPLAN Contracts:
Units Value........................................ $ 216.27 $ 49.69
============== ===========
Units Outstanding.................................. 107,971 49,572
============== ===========
Momentum Contracts:
Units Value........................................ $ 162.42 $ 109.80 $ 27.22 $ 30.92
============== =========== =========== ==============
Units Outstanding.................................. 403,012 7,179 188,358 956,545
============== =========== =========== ==============
Momentum Plus Contracts:
Units Value........................................ $ 132.47 $ 105.94 $ 107.55 $ 108.95
============== =========== =========== ==============
Units Outstanding.................................. 706,304 87,681 299,468 335,596
============== =========== =========== ==============
EQUI-VEST PRP Contracts:
UnitsValue......................................... $ 126.78 $ 109.80 $ 107.04 $ 108.26
============== =========== =========== ==============
Units Outstanding.................................. 1,988,845 89,105 80,905 385,513
============== =========== =========== ==============
</TABLE>
See Notes to Financial Statements.
FSA-2
<PAGE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH CONSERVATIVE HIGH GROWTH & QUALITY EQUITY
STOCK INVESTORS INVESTORS YIELD GLOBAL INCOME BOND INDEX INTERNATIONAL
FUND FUND FUND FUND FUND FUND FUND FUND FUND
- ---------- ------------ ------------ ------------- ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$2,098,196,591
$307,104,188
$71,597,071
$33,348,092
$315,707,990
$70,969,558
$17,177,878
$88,408,584
$15,113,555
-- -- -- -- -- -- -- -- 208,092
6,231,567 3,694,931 406,113 314,989 2,151,580 862,816 250,726 1,610,118 --
- -------------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- -----------
2,104,428,158 310,799,119 72,003,184 33,663,081 317,859,570 71,832,374 17,428,604 90,018,702 15,321,647
- -------------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- -----------
6,155,114 3,694,935 406,116 314,990 2,151,576 862,800 250,727 1,610,128 --
-- -- -- -- -- -- -- -- 208,095
863,687 782,992 570,857 296,772 700,508 549,295 132,004 306,464 12,455
- -------------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- -----------
7,018,801 4,477,927 976,973 611,762 2,852,084 1,412,095 382,731 1,916,592 220,550
- -------------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- -----------
$2,097,409,357 $306,321,192 $71,026,211 $33,051,319 $315,007,486 $70,420,279 $17,045,873 $88,102,110 $15,101,097
============== ============ =========== =========== ============ =========== =========== =========== ===========
$ 68.73
==============
25,820,941
==============
$ 68.73 $ 120.08 $ 112.97 $ 113.44 $ 122.06 $ 121.02 $ 108.38 $ 135.94 $ 104.15
============== ============ =========== ============ =========== =========== =========== ============ ===========
969,400 57,291 10,581 7,224 62,309 16,744 4,134 12,423 480
============== ============ =========== =========== =========== =========== =========== ============ ===========
$ 130.50 $ 121.49 $ 110.81 $ 121.10 $ 124.30 $ 121.25 $ 114.38 $ 135.92 $ 104.15
============== ============ =========== =========== =========== =========== =========== ============ ===========
717,955 374,652 128,580 70,070 390,608 67,353 17,168 44,121 3,456
============== ============ =========== =========== =========== =========== =========== ============ ===========
$ 123.95 $ 120.08 $ 112.97 $ 113.44 $ 122.06 $ 121.02 $ 108.38 $ 135.94 $ 104.15
============== ============ =========== =========== =========== =========== =========== ============ ===========
1,309,946 2,112,814 491,320 209,146 2,120,553 497,651 135,029 591,520 140,674
============== ============ =========== =========== =========== =========== =========== ============ ===========
</TABLE>
FSA-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1995
-------------------------------------------------------------------
INTERMEDIATE
COMMON GOVERNMENT MONEY
STOCK SECURITIES MARKET BALANCED
FUND FUND FUND FUND
------------- --------------- ------------ --------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust................. $ 38,701,881 $1,062,712 $3,760,240 $ 32,315,135
------------ ---------- ---------- ------------
Expenses (Note 3):
Mortality risk, death benefit, expense and
expense risk charges.................................. 33,227,785 210,894 924,254 12,186,303
Financial accounting charges............................ 5,642,309 -- 72,631 2,179,967
------------ ---------- ---------- ------------
Total expenses........................................ 38,870,094 210,894 996,885 14,366,270
Less: Reduction for expense limitation.................. 2,950,317 8,379 59,226 1,211,018
------------ ---------- ---------- ------------
Net expenses.......................................... 35,919,777 202,515 937,659 13,155,252
------------ ---------- ---------- ------------
NET INCOME (LOSS)......................................... 2,782,104 860,197 2,822,581 19,159,883
------------ ---------- ---------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) from share transactions............ 30,693,506 (262,021) 111,769 7,912,630
Realized gain distribution from The Hudson River Trust.. 176,306,227 -- -- 28,456,582
------------ ---------- ---------- ------------
Net realized gain (loss).............................. 206,999,733 (262,021) 111,769 36,369,212
Change in unrealized appreciation / depreciation
of investments........................................ 498,084,127 1,263,426 244,984 107,611,597
------------ ---------- ---------- ------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS.......................................... 705,083,860 1,001,405 356,753 143,980,809
------------ ---------- ---------- ------------
NET INCREASE IN NET ASSETS FROM OPERATIONS
(NOTE 2)................................................ $707,865,964 $1,861,602 $3,179,334 $163,140,692
============ ========== ========== ============
<FN>
- ----------
Commencement of Operations
</FN>
</TABLE>
See Notes to Financial Statements.
FSA-4
<PAGE>
<TABLE>
<CAPTION>
SEPTEMBER 1,
1995* TO
DECEMBER 31,
YEAR ENDED DECEMBER 31, 1995 1995
- ------------------------------------------------------------------------------------------------------------ ---------------
AGGRESSIVE GROWTH CONSERVATIVE HIGH GROWTH & QUALITY EQUITY
STOCK INVESTORS INVESTORS YIELD GLOBAL INCOME BOND INDEX INTERNATIONAL
FUND FUND FUND FUND FUND FUND FUND FUND FUND
- ------------ ------------- ----------- ----------- ------------ ------------ ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 4,874,525 $ 7,361,114 $3,056,206 $2,579,699 $ 4,379,867 $1,382,201 $ 716,416 $ 820,315 $176,168
- ------------ ----------- ---------- ---------- ----------- ---------- ---------- ---------- --------
19,240,040 2,730,233 729,377 300,991 3,209,543 591,270 143,778 459,747 26,741
3,695,650 -- -- -- -- -- -- -- --
- ------------ ----------- ---------- ---------- ----------- ---------- ---------- ---------- --------
22,935,690 2,730,233 729,377 300,991 3,209,543 591,270 143,778 459,747 26,741
984,306 -- -- -- -- -- -- -- --
- ------------ ----------- ---------- ---------- ----------- ---------- ---------- ---------- --------
21,951,384 2,730,233 729,377 300,991 3,209,543 591,270 143,778 459,747 26,741
- ------------ ----------- ---------- ---------- ----------- ---------- ---------- ---------- --------
(17,076,859) 4,630,881 2,326,829 2,278,708 1,170,324 790,931 572,638 360,568 149,427
- ------------ ----------- ---------- ---------- ----------- ---------- ---------- ---------- --------
41,110,828 142,448 (38,006) (142,069) 1,612,501 135,257 (14,461) 3,548,584 21,647
233,380,462 4,048,003 440,266 -- 8,661,740 -- -- 650,158 63,342
- ------------ ----------- ---------- ---------- ----------- ---------- ---------- ---------- --------
274,491,290 4,190,451 402,260 (142,069) 10,274,241 135,257 (14,461) 4,198,742 84,989
201,133,502 35,365,665 6,622,303 1,530,565 29,094,331 7,973,647 952,860 4,368,831 148,058
- ------------ ----------- ---------- ---------- ----------- ---------- ---------- ---------- --------
475,624,792 39,556,116 7,024,563 1,388,496 39,368,572 8,108,904 938,399 8,567,573 233,047
- ------------ ----------- ---------- ---------- ----------- ---------- ---------- ---------- --------
$458,547,933 $44,186,997 $9,351,392 $3,667,204 $40,538,896 $8,899,835 $1,511,037 $8,928,141 $382,474
============ =========== ========== ========== =========== ========== ========== ========== ========
</TABLE>
FSA-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT SECURITIES
COMMON STOCK FUND FUND
----------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------------------------
1995 1994 1995 1994
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net income (loss).................................... $ 2,782,104 $ 3,678,514 $ 860,197 $ 614,654
Realized gain (loss) on investments.................. 206,999,733 128,544,779 (262,021) (176,964)
Change in unrealized appreciation / depreciation
of investments..................................... 498,084,127 (209,040,398) 1,263,426 (776,770)
-------------- -------------- ----------- -----------
Net increase (decrease) in net assets from operations 707,865,964 (76,817,105) 1,861,602 (339,080)
-------------- -------------- ----------- -----------
FROM CONTRACT OWNER TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions........................................ 323,872,865 330,675,155 7,369,681 5,109,894
Transfers from other Funds and
Guaranteed Interest Account........................ 563,350,890 522,732,281 6,382,251 7,212,276
-------------- -------------- ----------- -----------
Total............................................ 887,223,755 853,407,436 13,751,932 12,322,170
-------------- -------------- ----------- -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals and
death benefits..................................... 159,386,173 104,381,857 1,010,469 1,493,169
Transfers to other Funds and
Guaranteed Interest Account........................ 467,919,413 367,123,429 3,875,451 1,630,955
Withdrawal and administrative charges................ 4,834,457 3,774,939 13,622 4,440
-------------- -------------- ----------- -----------
Total............................................ 632,140,043 475,280,225 4,899,542 3,128,564
-------------- -------------- ----------- -----------
Net increase (decrease) in net assets from
Contract Owner transactions........................ 255,083,712 378,127,211 8,852,390 9,193,606
-------------- -------------- ----------- -----------
Net (increase) decrease in accumulated amount
retained by Equitable Life in Separate Account A
(Note 3)........................................... (202,590) 787,237 (29,532) 2,789
-------------- -------------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS...................... 962,747,086 302,097,343 10,684,460 8,857,315
NET ASSETS--BEGINNING OF PERIOD........................ 2,215,238,284 1,913,140,941 11,639,335 2,782,020
-------------- -------------- ----------- -----------
NET ASSETS--END OF PERIOD (NOTE 1)..................... $3,177,985,370 $2,215,238,284 $22,323,795 $11,639,335
============== ============== =========== ===========
</TABLE>
See Notes to Financial Statements.
FSA-6
<PAGE>
<TABLE>
<CAPTION>
GROWTH
INVESTORS
MONEY MARKET FUND BALANCED FUND AGGRESSIVE STOCK FUND FUND
- ------------------------------ ------------------------------ -------------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
- ------------------------------ ------------------------------ -------------------------------- ----------------------------
1995 1994 1995 1994 1995 1994 1995 1994
- ------------- --------------- -------------- --------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,822,581 $ 1,714,266 $ 19,159,883 $ 15,921,598 $ (17,076,859) $ (14,797,576) $ 4,630,881 $ 1,645,820
111,769 (120,977) 36,369,212 1,905,805 274,491,290 15,356,337 4,190,451 (124,742)
244,984 (207,660) 107,611,597 (108,178,870) 201,133,502 (55,814,543) 35,365,665 (3,833,947)
- ------------ ------------ -------------- ------------ -------------- -------------- ------------ ------------
3,179,334 1,385,629 163,140,692 (90,351,467) 458,547,933 (55,255,782) 44,186,997 (2,312,869)
- ------------ ------------ -------------- ------------ -------------- -------------- ------------ ------------
96,460,995 130,877,596 100,845,169 155,491,871 255,277,523 263,528,472 88,478,478 84,714,487
11,693,688 7,538,773 72,926,145 121,755,406 937,308,527 778,065,845 96,710,983 44,017,404
- ------------ ------------ -------------- ------------ -------------- -------------- ------------ ------------
108,154,683 138,416,369 173,771,314 277,247,277 1,192,586,050 1,041,594,317 185,189,461 128,731,891
- ------------ ------------ -------------- ------------ -------------- -------------- ------------ ------------
9,756,910 7,109,016 70,581,767 53,580,642 101,140,511 67,484,290 8,656,331 2,106,986
112,024,444 83,270,336 140,405,721 125,123,498 890,032,461 686,083,129 31,783,310 7,685,641
141,480 159,791 2,326,794 2,093,655 4,012,965 3,084,680 329,796 40,176
- ------------ ------------ -------------- ------------ -------------- -------------- ------------ ------------
121,922,834 90,539,143 213,314,282 180,797,795 995,185,937 756,652,099 40,769,437 9,832,803
- ------------ ------------ -------------- ------------ -------------- -------------- ------------ ------------
(13,768,151) 47,877,226 (39,542,968) 96,449,482 197,400,113 284,942,218 144,420,024 118,899,088
- ------------ ------------ -------------- ------------ -------------- -------------- ------------ -------------
(60,821) (18,576) (639,644) 112,409 (703,992) (150,482) (69,190) (105,609)
- ------------ ------------ -------------- ------------ -------------- -------------- ------------ ------------
(10,649,638) 49,244,279 122,958,080 6,210,424 655,244,054 229,535,954 188,537,831 116,480,610
88,906,934 39,662,655 919,155,648 912,945,224 1,442,165,303 1,212,629,349 117,783,361 1,302,751
- ------------ ------------ -------------- ------------ -------------- -------------- ------------ ------------
$ 78,257,296 $ 88,906,934 $1,042,113,728 $919,155,648 $2,097,409,357 $1,442,165,303 $306,321,192 $117,783,361
============ ============ ============== ============ ============== ============== ============ ============
</TABLE>
FSA-7
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
<TABLE>
<CAPTION>
CONSERVATIVE
INVESTORS HIGH YIELD GLOBAL
FUND FUND FUND
------------------------- -------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
----------- ------------- ----------- ------------ -------------- -----------
1995 1994 1995 1994 1995 1994
---------- ------------- ----------- ------------ -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net income (loss) ...................... $ 2,326,829 $ 1,190,864 $ 2,278,708 $ 715,639 $ 1,170,324 $ 360,446
Realized gain (loss) on investments .... 402,260 (127,857) (142,069) (17,855) 10,274,241 3,321,287
Change in unrealized appreciation /
depreciation of investments ......... 6,622,303 (1,918,004) 1,530,565 (1,004,798) 29,094,331 (5,946,084)
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
from operations ...................... 9,351,392 (854,997) 3,667,204 (307,014) 40,538,896 (2,264,351)
----------- ----------- ----------- ----------- ------------ ------------
FROM CONTRACT OWNER TRANSACTIONS
(NOTE 4):
Contributions and Transfers:
Contributions ........................ 17,614,456 35,648,124 10,927,641 10,298,407 81,368,082 88,843,233
Transfers from other Funds and
Guaranteed Interest Account ........ 12,235,331 10,060,907 10,118,081 4,822,949 137,660,677 106,878,648
----------- ----------- ----------- ----------- ------------ ------------
Total .............................. 29,849,787 45,709,031 21,045,722 15,121,356 219,028,759 195,721,881
----------- ----------- ----------- ----------- ------------ ------------
Payments, Transfers and Charges:
Annuity payments, withdrawals and
death benefits ........................ 2,534,266 1,237,649 1,942,685 250,952 11,743,890 2,236,973
Transfers to other Funds and
Guaranteed Interest Account .......... 5,239,849 4,836,017 3,213,615 1,175,948 93,494,152 30,832,215
Withdrawal and administrative charges .. 74,396 16,644 28,309 3,143 394,438 37,634
----------- ----------- ----------- ----------- ------------ ------------
Total .............................. 7,848,511 6,090,310 5,184,609 1,430,043 105,632,480 33,106,822
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets from Contract
Owner transactions ................... 22,001,276 39,618,721 15,861,113 13,691,313 113,396,279 162,615,059
----------- ----------- ----------- ----------- ------------ ------------
Net (increase) decrease in accumulated
amount retained by Equitable Life in
Separate Account A (Note 3) ........ (75,714) (47,431) (11,837) (9,034) (136,682) 37,687
----------- ----------- ----------- ----------- ------------ -----------
INCREASE IN NET ASSETS ................... 31,276,954 38,716,293 19,516,480 13,375,265 153,798,493 160,388,395
NET ASSETS BEGINNING OF PERIOD .......... 39,749,257 1,032,964 13,534,839 159,574 161,208,993 820,598
----------- ----------- ----------- ----------- ------------ ------------
NET ASSETS END OF YEAR (NOTE 2) ......... $71,026,211 $39,749,257 $33,051,319 $13,534,839 $315,007,486 $161,208,993
=========== =========== =========== =========== ============ ============
<FN>
- ----------
*Commencement of operations.
</FN>
</TABLE>
See Notes to Financial Statements.
FSA-8
<PAGE>
<TABLE>
<CAPTION>
GROWTH & INCOME QUALITY BOND EQUITY INDEX INTERNATIONAL
FUND FUND FUND FUND
- -------------------------------- --------------------------------- ---------------------------- ----------------
JANUARY 3, JANUARY 3, JANUARY 3, SEPTEMBER 1,
YEAR ENDED 1994* TO YEAR ENDED 1994* TO YEAR ENDED 1994* TO 1995* TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
- ------------ ------------- ------------ -------------- ------------- ------------ ----------------
1995 1994 1995 1994 1995 1994 1995
- ------------ ------------- ------------ -------------- ------------- ------------ ----------------
<S> <C> <C> <C> <C> <C> <C>
$ 790,931 $ 171,084 $ 572,638 $ 162,195 $ 360,568 $ 29,737 $ 149,427
135,257 (20,837) (14,461) (39,448) 4,198,742 27,166 84,989
7,973,647 (448,368) 952,860 (215,525) 4,368,831 (74,592) 148,058
- ----------- ----------- ----------- ---------- ----------- ---------- -----------
8,899,835 (298,121) 1,511,037 (92,778) 8,928,141 (17,689) 382,474
- ----------- ----------- ----------- ---------- ----------- ---------- -----------
22,698,765 14,505,511 5,630,019 4,156,517 28,329,533 2,277,779 2,925,742
28,860,658 10,945,268 7,603,814 2,032,907 153,170,493 6,726,113 17,699,810
- ----------- ----------- ----------- ---------- ----------- ---------- -----------
51,559,423 25,450,779 13,233,833 6,189,424 181,500,026 9,003,892 20,625,552
- ----------- ----------- ----------- ---------- ----------- ---------- -----------
1,952,266 216,363 705,351 58,955 1,077,397 25,120 41,651
10,151,108 2,775,715 2,324,024 693,842 106,387,645 3,864,503 5,873,268
60,042 6,365 8,789 479 23,173 575 907
- ----------- ----------- ----------- ---------- ----------- ---------- -----------
12,163,416 2,998,443 3,038,164 753,276 107,488,215 3,890,198 5,915,826
- ----------- ----------- ----------- ---------- ----------- ---------- -----------
39,396,007 22,452,336 10,195,669 5,436,148 74,011,811 5,113,694 14,709,726
- ----------- ----------- ----------- ---------- ----------- ---------- -----------
(20,535) (9,243) (325) (3,878) 59,424 6,729 8,897
- ----------- ----------- ----------- ---------- ----------- ---------- -----------
48,275,307 22,144,972 11,706,381 5,339,492 82,999,376 5,102,734 15,101,097
22,144,972 -- 5,339,492 -- 5,102,734 -- --
- ----------- ----------- ----------- ---------- ----------- ---------- -----------
$70,420,279 $22,144,972 $17,045,873 $5,339,492 $88,102,110 $5,102,734 $15,101,097
=========== =========== =========== ========== =========== ========== ===========
</TABLE>
FSA-9
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. General
Separate Account A (the Account) of The Equitable Life Assurance Society
of the United States (Equitable Life) is used to fund benefits under
certain individual tax-favored variable annuity contracts (Old Contracts),
individual non-qualified variable annuity contracts (EQUIPLAN Contracts),
tax-favored and non-qualified certificates issued under group deferred
variable annuity contracts and certain related individual contracts
(EQUI-VEST Contracts), group deferred variable annuity contracts used to
fund tax-qualified defined contribution plans (Momentum Contracts) and
group variable annuity contracts used as a funding vehicle for employers
who sponsor qualified defined contribution plans (Momentum Plus) and group
deferred variable annuity contracts used as individual retirement
annuities (including those established from qualified plan distributions)
or for after-tax contributions to a non-qualified annuity (EQUI-VEST
Personal Retirement Programs). All of these contracts and certificates are
collectively referred to as the Contracts.
The net assets of the Account are not chargeable with liabilities arising
out of any other business Equitable Life may conduct. The excess of assets
over reserves and other contract liabilities, if any, in the Account may
be transferred to Equitable Life's General Account.
Separate Account A is organized as a unit investment trust, a type of
investment company, and is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940. The Account consists
of thirteen investment funds (Funds): Common Stock, Intermediate
Government Securities, Money Market, Balanced, Aggressive Stock, Growth
Investors, Conservative Investors, High Yield, Global, Growth & Income,
Quality Bond, Equity Index and International Fund. The assets in each Fund
are invested in shares of a corresponding portfolio (Portfolio) of a
mutual fund, The Hudson River Trust (Trust). The Trust is an open-end,
diversified, management investment company that invests the assets of
separate accounts of insurance companies. Each Portfolio has separate
investment objectives.
2. Significant Accounting Policies
The accompanying financial statements are prepared in conformity with
generally accepted accounting principles (GAAP). The preparation of
financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
those estimates.
Share Valuation--Investment in shares of the Trust are valued at the net
asset value per share of the respective Portfolio.
Share Transactions--Share transactions are recorded on the trade date at
the net asset value per share of the underlying Portfolios. Realized gains
and losses on investments include gains and losses on redemptions of the
Trust's shares (determined on the identified cost basis) and capital gain
distributions from the Trust. Dividends and realized gain distributions
from The Hudson River Trust are recorded on ex-date.
Federal Income Taxes--No Federal income tax based on net income or
realized and unrealized capital gains is currently applicable to Contracts
participating in the Account by reason of applicable provisions of the
Internal Revenue Code and no Federal income tax payable by Equitable Life
is expected to affect the accumulation unit values of Contracts
participating in the Account. Accordingly, no provision for income taxes
is required.
FSA-10
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
3. Asset Charges
Charges are made directly against the assets of the Account and are
reflected daily in the computation of the accumulation unit values of the
Contracts. The table below shows the currently effective annual rates of
charges:
<TABLE>
<CAPTION>
EQUI-VEST
EQUI-VEST/MOMENTUM MOMENTUM PLUS OLD EQUIPLAN PRP
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS
--------------------------------- --------------- ------------- ----------------- -------------
Common Stock and
Intermediate
Common Stock, Money All Common Stock and Government
Market and Balanced Other Money Market Securities
Funds Funds All Funds Funds Funds All Funds
------------------- ---------- ----------- ---------------- ----------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Death Benefits........ 0.05 of 1% 0.05 of 1% -- 0.05 of 1% 0.05 of 1% --
Mortality Risks....... 0.30 of 1% 0.30 of 1% 0.50 of 1% 0.45 of 1% 0.45 of 1% 0.60 of 1%
Expenses.............. 0.60 of 1% 0.60 of 1% 0.25 of 1% 0.16 of 1% 0.16 of 1% 0.24/0.25 of 1%
Expense Risks......... 0.30 of 1% 0.15 of 1% 0.60 of 1% 0.08 of 1% 0.08 of 1% 0.50 of 1%
Financial Accounting.. 0.24 of 1% 0.24 of 1% -- -- -- --
</TABLE>
During 1995, Equitable Life charged EQUI-VEST PRP Contracts 0.24 of 1%
against the assets of the Intermediate Government Securities, Growth
Investors, Conservative Investors, High Yield, Global, Growth & Income,
Quality Bond, Equity Index and International Funds for expenses. This
voluntary expense limitation (discounted from 0.25 of 1% to 0.24 of 1%)
may be discontinued by Equitable Life at its discretion.
The above charges may be retained in the Account by Equitable Life and, to
the extent retained, participate in the net investment results of the
Trust ratably with assets attributable to the Contracts.
Since the Trust shares are valued at their net asset value, investment
advisory fees and direct operating expenses of the Trust are, in effect,
passed on to the Account and are reflected in the computation of the
accumulation unit values of the Contracts.
Under the terms of the Contracts, the aggregate of these asset charges and
the charges of the Trust for advisory fees and for direct operating
expenses may not exceed a total effective annual rate of 1.75% for
EQUI-VEST and Momentum Contracts for the Money Market, Balanced, Common
Stock and Aggressive Stock Funds and 1% for the Old Contracts and EQUIPLAN
Contracts.
Under the Contracts, the total charges may be reallocated among the
various expense categories. Equitable Life, however, intends to limit any
possible reallocation to include only the expense risks, mortality risks
and death benefit charges.
4. Contributions, Payments, Transfers and Charges
Contributions represent participant contributions under EQUI-VEST,
Momentum, Momentum Plus and EQUI-VEST PRP Contracts (except amounts
allocated to the Guaranteed Interest Account, which are reflected in the
General Account) and participant contributions under other Contracts
reduced by applicable deductions, charges and state premium taxes.
Contributions also include amounts applied to purchase variable annuities.
Transfers are amounts that participants have directed to be moved among
the Funds, including permitted transfers to and from the Guaranteed
Interest Account, which is part of Equitable Life's General Account.
Variable annuity payments and death benefits are payments to participants
and beneficiaries made under the terms of the Contracts. Withdrawals are
amounts that participants have requested to be withdrawn and paid to them
or applied to purchase annuities. Withdrawal charges, if applicable, are
the deferred contingent withdrawal charges that apply to certain
withdrawals under EQUI-VEST, Momentum, Momentum Plus and EQUI-VEST PRP
Contracts. Administrative charges, if applicable, are deducted annually
under EQUI-VEST, EQUIPLAN and Old Contracts and quarterly under Momentum,
Momentum Plus and EQUI-VEST PRP Contracts.
FSA-11
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
Accumulation units are purchased when amounts (except variable annuity
purchase amounts) are allocated to the Account and are redeemed when
payments, transfers or charges (except variable annuity payments) are made
or deducted from the Account.
Accumulation units issued and redeemed during the periods indicated were:
<TABLE>
<CAPTION>
Year Ended
December 31,
----------------------------------------
1995 1994
-------------- -------------
<S> <C> <C>
COMMON STOCK FUND
- -----------------
Issued -- EQUI-VEST Contracts........................................ 4,339,470 5,361,543
Momentum Contracts......................................... 208,765 192,156
Momentum Plus Contracts.................................... 470,567 358,043
Old Contracts.............................................. 837 2,804
EQUIPLAN Contracts......................................... 268 300
EQUI-VEST PRP Contracts.................................... 1,432,603 1,024,286
Redeemed -- EQUI-VEST Contracts........................................ 3,797,103 3,529,063
Momentum Contracts......................................... 75,510 42,853
Momentum Plus Contracts.................................... 94,575 39,733
Old Contracts.............................................. 51,405 32,387
EQUIPLAN Contracts......................................... 11,184 5,676
EQUI-VEST PRP Contracts.................................... 391,658 76,386
INTERMEDIATE GOVERNMENT SECURITIES FUND
- ---------------------------------------
Issued -- Momentum Contracts......................................... 7,133 644
Momentum Plus Contracts.................................... 34,658 82,876
EQUIPLAN Contracts......................................... 68 93
EQUI-VEST PRP Contracts.................................... 90,918 42,557
Redeemed -- Momentum Contracts......................................... 598 --
Momentum Plus Contracts.................................... 11,347 19,508
EQUIPLAN Contracts......................................... 4,000 4,562
EQUI-VEST PRP Contracts.................................... 33,589 10,781
MONEY MARKET FUND
- -----------------
Issued -- EQUI-VEST Contracts........................................ 366,971 314,962
Momentum Contracts......................................... 447,257 182,577
Momentum Plus Contracts.................................... 676,808 1,102,121
Old Contracts.............................................. 2,235 7,743
EQUI-VEST PRP Contracts.................................... 144,021 128,664
Redeemed -- EQUI-VEST Contracts........................................ 345,636 380,840
Momentum Contracts......................................... 374,993 122,214
Momentum Plus Contracts.................................... 851,769 689,692
Old Contracts.............................................. 9,440 28,522
EQUI-VEST PRP Contracts.................................... 125,670 66,109
</TABLE>
FSA-12
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Year Ended
December 31,
-----------------------------------------
1995 1994
-------------- ---------------
<S> <C> <C>
BALANCED FUND
- -------------
Issued -- EQUI-VEST Contracts........................................ 4,387,731 7,746,224
Momentum Contracts......................................... 395,854 559,478
Momentum Plus Contracts.................................... 204,147 208,551
EQUI-VEST PRP Contracts.................................... 183,034 322,182
Redeemed -- EQUI-VEST Contracts........................................ 6,839,622 6,341,428
Momentum Contracts......................................... 215,312 131,610
Momentum Plus Contracts.................................... 56,192 30,349
EQUI-VEST PRP Contracts.................................... 86,454 33,249
AGGRESSIVE STOCK FUND
- ---------------------
Issued -- EQUI-VEST Contracts........................................ 15,601,564 17,411,319
Momentum Contracts......................................... 583,570 458,121
Momentum Plus Contracts.................................... 465,017 373,205
EQUI-VEST PRP Contracts.................................... 1,591,822 763,109
Redeemed -- EQUI-VEST Contracts........................................ 14,567,533 14,120,182
Momentum Contracts......................................... 234,646 95,930
Momentum Plus Contracts.................................... 97,553 34,958
EQUI-VEST PRP Contracts.................................... 945,741 99,244
GROWTH INVESTORS FUND
- ---------------------
Issued -- Momentum Contracts......................................... 50,523 10,517
Momentum Plus Contracts.................................... 243,492 204,431
EQUI-VEST PRP Contracts.................................... 1,401,142 1,093,456
Redeemed -- Momentum Contracts......................................... 3,545 204
Momentum Plus Contracts.................................... 56,483 29,562
EQUI-VEST PRP Contracts.................................... 311,129 70,655
CONSERVATIVE INVESTORS FUND
- ---------------------------
Issued -- Momentum Contracts......................................... 8,347 2,696
Momentum Plus Contracts.................................... 54,650 104,525
EQUI-VEST PRP Contracts.................................... 223,974 366,054
Redeemed -- Momentum Contracts......................................... 450 12
Momentum Plus Contracts.................................... 18,295 22,776
EQUI-VEST PRP Contracts.................................... 57,483 41,224
HIGH YIELD FUND
- ---------------
Issued -- Momentum Contracts......................................... 6,324 1,446
Momentum Plus Contracts.................................... 44,314 41,025
EQUI-VEST PRP Contracts.................................... 145,638 109,000
Redeemed -- Momentum Contracts......................................... 395 151
Momentum Plus Contracts.................................... 12,085 4,679
EQUI-VEST PRP Contracts.................................... 35,957 9,535
</TABLE>
FSA-13
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Year Ended
December 31,
-------------------------------------------
1995 1994
--------------- ---------------
<S> <C> <C>
GLOBAL FUND
- -----------------
Issued -- Momentum Contracts......................................... 53,496 16,301
Momentum Plus Contracts.................................... 251,525 242,014
EQUI-VEST PRP Contracts.................................... 1,670,603 1,589,784
Redeemed -- Momentum Contracts......................................... 7,044 444
Momentum Plus Contracts.................................... 84,289 26,677
EQUI-VEST PRP Contracts.................................... 854,945 284,890
GROWTH & INCOME FUND
- --------------------
Issued -- Momentum Contracts......................................... 14,155 4,182
Momentum Plus Contracts.................................... 66,279 9,654
EQUI-VEST PRP Contracts.................................... 387,123 240,113
Redeemed -- Momentum Contracts......................................... 1,570 22
Momentum Plus Contracts.................................... 8,379 201
EQUI-VEST PRP Contracts.................................... 99,840 29,745
QUALITY BOND FUND
- -----------------
Issued -- Momentum Contracts......................................... 3,450 1,207
Momentum Plus Contracts.................................... 16,825 2,915
EQUI-VEST PRP Contracts.................................... 108,824 60,527
Redeemed -- Momentum Contracts......................................... 523 --
Momentum Plus Contracts.................................... 2,479 93
EQUI-VEST PRP Contracts.................................... 26,494 7,829
EQUITY INDEX FUND
- -----------------
Issued -- Momentum Contracts......................................... 13,555 664
Momentum Plus Contracts.................................... 46,112 3,032
EQUI-VEST PRP Contracts.................................... 1,413,313 85,072
Redeemed -- Momentum Contracts......................................... 1,679 117
Momentum Plus Contracts.................................... 5,016 7
EQUI-VEST PRP Contracts.................................... 868,769 38,096
INTERNATIONAL FUND
- ------------------
Issued -- Momentum Contracts......................................... 480 --
Momentum Plus Contracts.................................... 3,464 --
EQUI-VEST PRP Contracts.................................... 198,903 --
Redeemed -- Momentum Contracts......................................... 0 --
Momentum Plus Contracts.................................... 8 --
EQUI-VEST PRP Contracts.................................... 58,228 --
</TABLE>
FSA-14
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
5. Net Assets
Net assets consist of: (i) net assets attributable to Contracts in the
accumulation period, which are represented by Contract accumulation units
outstanding and associated accumulation unit values and (ii) actuarial
reserves and other liabilities attributable to Contracts in the payout
period which are not represented by accumulation units or unit values.
Listed below are components of net assets.
<TABLE>
<CAPTION>
INTERMEDIATE
COMMON GOVERNMENT MONEY AGGRESSIVE GROWTH
STOCK SECURITIES MARKET BALANCED STOCK INVESTORS
FUND FUND FUND FUND FUND FUND
-------------- ------------ ------------ -------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period...... $2,646,072,171 $ -- $27,784,711 $ 934,237,949 $1,774,667,393 $ --
Net assets attributable
to Momentum
Contracts in
accumulation period...... 65,455,997 788,207 5,126,458 29,578,934 66,626,661 6,879,601
Net assets attributable
to Momentum Plus
Contracts in
accumulation period...... 93,562,302 9,288,912 32,208,088 36,561,596 93,695,206 45,515,989
Net assets attributable
to Old Contracts in
accumulation period...... 77,284,324 -- 4,478,039 -- -- --
Net assets attributable
to EQUIPLAN
Contracts in
accumulation period...... 23,350,893 2,463,414 -- -- -- --
Net assets attributable
to EQUI-VEST PRP
Contracts in
accumulation period...... 252,150,274 9,783,262 8,660,000 41,735,249 162,372,587 253,709,591
------------- ----------- ----------- -------------- -------------- ------------
Actuarial reserves and
other contract
liabilities
attributable to
Contracts in payout...... 20,109,409 -- -- -- 47,510 216,011
-------------- ----------- ----------- -------------- -------------- ------------
$3,177,985,370 $22,323,795 $78,257,296 $1,042,113,728 $2,097,409,357 $306,321,192
============== =========== =========== ============== ============== ============
</TABLE>
<TABLE>
<CAPTION>
CONSERVATIVE HIGH GROWTH & QUALITY EQUITY
INVESTORS YIELD GLOBAL INCOME BOND INDEX INTERNATIONAL
FUND FUND FUND FUND FUND FUND FUND
------------ ------------- ------------- ------------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net assets attributable
to Momentum
Contracts in
accumulation period..... $ 1,195,370 $ 819,489 $ 7,605,705 $ 2,026,401 $ 448,047 $ 1,688,718 $ 50,032
Net assets attributable
to Momentum Plus
Contracts in
accumulation period..... 14,247,486 8,485,834 48,550,927 8,166,372 1,963,593 5,996,639 359,926
Net assets attributable
to EQUI-VEST PRP
Contracts in
accumulation period..... 55,505,387 23,726,544 258,843,710 60,227,506 14,634,233 80,409,441 14,651,853
----------- ----------- ------------ ----------- ----------- ----------- -----------
Actuarial reserves and
other contract
liabilities
attributable to
Contracts in payout..... 77,968 19,452 7,144 -- -- 7,312 39,286
----------- ----------- ------------ ----------- ----------- ----------- -----------
$71,026,211 $33,051,319 $315,007,486 $70,420,279 $17,045,873 $88,102,110 $15,101,097
=========== =========== ============ =========== =========== =========== ===========
</TABLE>
FSA-15
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
6. Accumulation Unit Values
Shown below is accumulation unit value information for a unit outstanding
throughout the periods shown.
<TABLE>
<CAPTION>
COMMON STOCK FUND--OLD CONTRACTS
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------- ------- ------- ------- ------- ------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $151.67 $155.96 $125.72 $122.56 $ 89.56 $97.97 $78.37 $63.99 $59.83 $51.41
======= ======= ======= ======= ======= ====== ====== ====== ====== ======
Unit value, end of period....... $199.66 $151.67 $155.96 $125.72 $122.56 $89.56 $97.97 $78.37 $63.99 $59.83
======= ======= ======= ======= ======= ====== ====== ====== ====== ======
Number of units outstanding,
end of period (000's)........... 387 438 467 525 598 694 780 895 1,079 1,282
======= ======= ======= ======= ======= ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCK FUND--EQUI-VEST/MOMENTUM** CONTRACTS
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $124.32 $128.81 $104.63 $102.76 $ 75.67 $83.40 $67.22 $55.30 $52.10 $45.11
======= ======= ======= ======= ======= ====== ====== ====== ====== ======
Unit value, end of period....... $162.42 $124.32 $128.81 $104.63 $102.76 $75.67 $83.40 $67.22 $55.30 $52.10
======= ======= ======= ======= ======= ====== ====== ====== ====== ======
Number of EQUI-VEST
units outstanding, end of
period (000's)............... 16,292 15,749 13,917 11,841 10,292 9,670 8,645 7,252 7,349 6,059
======= ======= ======= ======= ======= ====== ====== ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's)............... 403 270 120
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCK FUND--EQUIPLAN CONTRACTS
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------- ------- ------- ------- ------- ------- ------- ------ ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $164.29 $168.93 $136.10 $132.67 $ 96.95 $106.05 $ 84.83 $69.26 $65.62 $54.35
======= ======= ======= ======= ======= ======= ======= ====== ====== ======
Unit value, end of period....... $216.27 $164.29 $168.93 $136.10 $132.67 $ 96.95 $106.05 $84.83 $69.26 $65.62
======= ======= ======= ======= ======= ======= ======= ====== ====== ======
Number of units outstanding,
end of period (000's)........... 108 119 124 135 144 157 177 196 235 270
======= ======= ======= ======= ======= ======= ======= ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCK FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, SEPTEMBER 9, 1993*
1995 1994 TO DECEMBER 31, 1993
------------ ------------ --------------------
<S> <C> <C> <C>
Unit value, beginning of period.................................. $101.38 $105.01 $100.00
======= ======= =======
Unit value, end of period........................................ $132.47 $101.38 $105.01
======= ======= =======
Number of units outstanding, end of period (000's)............... 706 330 12
======= ======= =======
</TABLE>
FSA-16
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
COMMON STOCK FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED
DECEMBER 13, JANUARY 3, 1994*
1995 TO DECEMBER 31, 1994
------------ --------------------
<S> <C> <C>
Unit value, beginning of period....................................... $ 97.03 $100.00
======= =======
Unit value, end of period............................................. $126.78 $ 97.03
======= =======
Number of units outstanding, end of period (000's).................... 1,989 948
======= =======
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES FUND--EQUIPLAN CONTRACTS
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $44.04 $46.25 $42.04 $40.00 $35.17 $33.12 $28.89 $27.31 $26.81 $22.45
====== ======= ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period....... $49.69 $44.04 $46.25 $42.04 $40.00 $35.17 $33.12 $28.89 $27.31 $26.81
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units outstanding,
end of period (000's)......... 50 54 58 66 74 82 91 98 120 113
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES FUND--MOMENTUM CONTRACTS
YEAR ENDED
DECEMBER 13, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
------------ --------------------
<S> <C> <C>
$ 98.19 $100.00
Unit value, beginning of period....................................... ======= =======
Unit value, end of period............................................. $109.80 $ 98.19
======= =======
7 1
Number of units outstanding, end of period (000's).................... ======= =======
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, SEPTEMBER 9, 1993*
1995 1994 TO DECEMBER 31, 1993
------------ ------------ --------------------
<S> <C> <C> <C>
Unit value, beginning of period................................. $ 94.76 $100.44 $100.00
======= ======= =======
Unit value, end of period....................................... $105.94 $ 94.76 $100.44
======= ======= =======
Number of units outstanding, end of period (000's).............. 88 64 1
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED
DECEMBER 13, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
------------ --------------------
<S> <C> <C>
Unit value, beginning of period................................. $ 98.19 $100.00
======= =======
Unit value, end of period....................................... $109.80 $ 98.19
======= =======
Number of units outstanding, end of period (000's).............. 89 32
======= =======
</TABLE>
FSA-17
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY MARKET FUND--OLD CONTRACTS
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------- ------- ------- ------- ------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $30.44 $29.43 $28.75 $27.92 $26.47 $24.59 $22.66 $21.23 $20.01 $18.87
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period....... $32.00 $30.44 $29.43 $28.75 $27.92 $26.47 $24.59 $22.66 $21.23 $20.01
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units outstanding,
end of period (000's)......... 140 147 168 204 246 289 310 339 419 432
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET FUND--EQUI-VEST / MOMENTUM** CONTRACTS
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------- ------- ------- ------- ------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $26.08 $25.41 $25.01 $24.48 $23.38 $21.89 $20.32 $19.18 $18.22 $17.31
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period....... $27.22 $26.08 $25.41 $25.01 $24.48 $23.38 $21.89 $20.32 $19.18 $18.22
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of EQUI-VEST
units outstanding, end of
period (000's)................ 1,021 1,000 1,065 1,201 1,325 1,307 1,045 656 581 609
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's)................ 188 116 56
====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, SEPTEMBER 9, 1993*
1995 1994 TO DECEMBER 31, 1993
------------ ------------ --------------------
<S> <C> <C> <C>
Unit value, beginning of period..................................... $103.10 $100.47 $100.00
======= ======= =======
Unit value, end of period........................................... $107.55 $103.10 $100.47
======= ======= =======
Number of units outstanding, end of period (000's).................. 299 474 62
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED
DECEMBER 31, JANUARY 3, 1994*
1995 TO DECEMBER 31, 1994
------------ --------------------
<S> <C> <C>
Unit value, beginning of period........................................... $102.61 $100.00
======= =======
Unit value, end of period................................................. $107.04 $102.61
======= =======
Number of units outstanding, end of period (000's)........................ 81 63
======= =======
</TABLE>
FSA-18
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
BALANCED FUND--EQUI-VEST / MOMENTUM** CONTRACTS
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------- ------- ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $26.18 $28.85 $26.04 $27.17 $19.40 $19.69 $15.80 $13.95 $14.69 $13.14
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period....... $30.92 $26.18 $28.85 $26.04 $27.17 $19.40 $19.69 $15.80 $13.95 $14.69
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of EQUI-VEST
units outstanding, end of
period (000's)................ 30,212 32,664 31,259 25,975 21,100 19,423 16,810 15,335 17,370 11,988
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's)................ 957 776 348
====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
BALANCED FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, SEPTEMBER 9, 1993*
1995 1994 TO DECEMBER 31, 1993
-------------- -------------- --------------------
<S> <C> <C> <C>
Unit value, beginning of period..................................... $ 92.22 $101.63 $100.00
======= ======= =======
Unit value, end of period........................................... $108.95 $ 92.22 $101.63
======= ======= =======
Number of units outstanding, end of period (000's).................. 336 188 9
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
BALANCED FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED
DECEMBER 31, JANUARY 3, 1994*
1995 TO DECEMBER 31, 1994
------------- --------------------
<S> <C> <C>
Unit value, beginning of period..................................... $ 91.64 $100.00
======= =======
Unit value, end of period........................................... $108.26 $ 91.64
======= =======
Number of units outstanding, end of period (000's).................. 386 289
======= =======
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE STOCK FUND--EQUI-VEST / MOMENTUM** CONTRACTS
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $52.88 $55.68 $48.30 $50.51 $27.36 $25.86 $18.09 $18.15 $18.33 $15.03
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period....... $68.73 $52.88 $55.68 $48.30 $50.51 $27.36 $25.86 $18.09 $18.15 $18.33
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of EQUI-VEST
units outstanding, end of
period (000's)................ 25,821 24,787 21,496 17,986 12,962 9,545 8,134 8,972 10,180 6,666
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's)................ 969 620 258
====== ====== ======
</TABLE>
FSA-19
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
AGGRESSIVE STOCK FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, SEPTEMBER 9, 1993*
1995 1994 TO DECEMBER 31, 1993
------------ ------------ --------------------
<S> <C> <C> <C>
Unit value, beginning of period.............................. $100.49 $105.90 $100.00
======= ======= =======
Unit value, end of period.................................... $130.50 $100.49 $105.90
======= ======= =======
Number of units outstanding, end of period (000's)........... 718 350 12
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE STOCK FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED
DECEMBER 31, JANUARY 3, 1994*
1995 TO DECEMBER 31, 1994
------------ --------------------
<S> <C> <C>
Unit value, beginning of period........................................... $ 95.45 $100.00
======= =======
Unit value, end of period................................................. $123.95 $ 95.45
======= =======
Number of units outstanding, end of period (000's)........................ 1,310 664
======= =======
</TABLE>
<TABLE>
<CAPTION>
GROWTH INVESTORS FUND--MOMENTUM CONTRACTS
YEAR ENDED
DECEMBER 31, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
------------ --------------------
<S> <C> <C>
Unit value, beginning of period........................................... $ 96.31 $100.00
======= =======
Unit value, end of period................................................. $120.08 $ 96.31
======= =======
Number of units outstanding, end of period (000's)........................ 57 10
======= =======
</TABLE>
<TABLE>
<CAPTION>
GROWTH INVESTORS FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, SEPTEMBER 9, 1993*
1995 1994 TO DECEMBER 31, 1993
------------ ------------ --------------------
<S> <C> <C> <C>
Unit value, beginning of period.............................. $ 97.45 $101.99 $100.00
======= ======= =======
Unit value, end of period.................................... $121.49 $ 97.45 $101.99
======= ======= =======
Number of units outstanding, end of period (000's)........... 375 188 13
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
GROWTH INVESTORS FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED
DECEMBER 31, JANUARY 3, 1994*
1995 TO DECEMBER 31, 1994
------------ --------------------
<S> <C> <C>
Unit value, beginning of period........................................... $ 96.31 $100.00
======= =======
Unit value, end of period................................................. $120.08 $ 96.31
======= =======
Number of units outstanding, end of period (000's)........................ 2,113 1,023
======= =======
</TABLE>
FSA-20
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS FUND--MOMENTUM CONTRACTS
YEAR ENDED
DECEMBER 31, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
------------ --------------------
<S> <C> <C>
Unit value, beginning of period............................................... $ 95.10 $100.00
======= =======
Unit value, end of period..................................................... $112.97 $ 95.10
======= =======
Number of units outstanding, end of period (000's)............................ 11 3
======= =======
</TABLE>
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, SEPTEMBER 9, 1993*
1995 1994 TO DECEMBER 31, 1993
------------ ------------ --------------------
<S> <C> <C> <C>
Unit value, beginning of period.................................. $ 93.29 $98.60 $100.00
======= ====== =======
Unit value, end of period........................................ $110.81 $93.29 $ 98.60
======= ====== =======
Number of units outstanding, end of period (000's)............... 129 92 10
======= ====== =======
</TABLE>
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
-------------------- -------------------------
<S> <C> <C>
Unit value, beginning of period.................................. $ 95.10 $100.00
======= =======
Unit value, end of period........................................ $112.97 $ 95.10
======= =======
Number of units outstanding, end of period (000's)............... 491 325
======= =======
</TABLE>
<TABLE>
<CAPTION>
HIGH YIELD FUND--MOMENTUM CONTRACTS
YEAR ENDED
DECEMBER 31, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
---------------- -------------------------
<S> <C> <C>
Unit value, beginning of period.................................. $ 95.88 $100.00
======= =======
Unit value, end of period........................................ $113.44 $ 95.88
======= =======
Number of units outstanding, end of period (000's)............... 7 1
======= =======
</TABLE>
<TABLE>
<CAPTION>
HIGH YIELD FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, SEPTEMBER 9, 1993*
1995 1994 TO DECEMBER 31, 1993
-------------------- --------------- ----------------------
<S> <C> <C> <C>
Unit value, beginning of period.................................. $102.37 $106.74 $100.00
======= ======= =======
Unit value, end of period........................................ $121.10 $102.37 $106.74
======= ======= =======
Number of units outstanding, end of period (000's)............... 70 38 1
======= ======= =======
</TABLE>
FSA-21
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
HIGH YIELD FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED
DECEMBER 31, JANUARY 3, 1994*
1995 TO DECEMBER 31, 1994
------------- --------------------
<S> <C> <C>
Unit value, beginning of period...................................... $ 95.88 $100.00
======= =======
Unit value, end of period............................................ $113.44 $ 95.88
======= =======
Number of units outstanding, end of period (000's)................... 209 99
======= =======
</TABLE>
<TABLE>
<CAPTION>
GLOBAL FUND--MOMENTUM CONTRACTS
YEAR ENDED
DECEMBER 31, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
-------------- --------------------
<S> <C> <C>
Unit value, beginning of period...................................... $104.12 $100.00
======= =======
Unit value, end of period............................................ $122.06 $104.12
======= =======
Number of units outstanding, end of period (000's)................... 62 16
======= =======
</TABLE>
<TABLE>
<CAPTION>
GLOBAL FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, SEPTEMBER 9, 1993*
1995 1994 TO DECEMBER 31, 1993
-------------- -------------- --------------------
<S> <C> <C> <C>
Unit value, beginning of period..................................... $106.04 $102.14 $100.00
======= ======= =======
Unit value, end of period........................................... $124.30 $106.04 $102.14
======= ======= =======
Number of units outstanding, end of period (000's).................. 391 223 8
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
GLOBAL FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED
DECEMBER 31, JANUARY 3, 1994*
1995 TO DECEMBER 31, 1994
---------------- --------------------
<S> <C> <C>
Unit value, beginning of period..................................... $104.12 $100.00
======= =======
Unit value, end of period........................................... $122.06 $104.12
======= =======
Number of units outstanding, end of period (000's).................. 2,121 1,305
======= =======
</TABLE>
<TABLE>
<CAPTION>
GROWTH & INCOME FUND--MOMENTUM CONTRACTS
YEAR ENDED
DECEMBER 31, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
-------------- ---------------------
<S> <C> <C>
Unit value, beginning of period...................................... $ 98.86 $100.00
======= =======
Unit value, end of period............................................ $121.02 $ 98.86
======= =======
Number of units outstanding, end of period (000's)................... 17 4
======= =======
</TABLE>
FSA-22
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
GROWTH & INCOME FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED
DECEMBER 31, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
---------------- ---------------------
<S> <C> <C>
Unit value, beginning of period...................................... $ 99.06 $100.00
======= =======
Unit value, end of period............................................ $121.25 $ 99.06
======= =======
Number of units outstanding, end of period (000's)................... 67 9
======= =======
</TABLE>
<TABLE>
<CAPTION>
GROWTH & INCOME FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED
DECEMBER 31, JANUARY 3, 1994*
1995 TO DECEMBER 31, 1994
--------------- -----------------------
<S> <C> <C>
Unit value, beginning of period...................................... $ 98.86 $100.00
======= =======
Unit value, end of period............................................ $121.02 $ 98.86
======= =======
Number of units outstanding, end of period (000's)................... 498 210
======= =======
</TABLE>
<TABLE>
<CAPTION>
QUALITY BOND FUND--MOMENTUM CONTRACTS
YEAR ENDED
DECEMBER 31, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
------------------ -----------------------
<S> <C> <C>
Unit value, beginning of period...................................... $ 93.87 $100.00
======= =======
Unit value, end of period............................................ $108.38 $ 93.87
======= =======
Number of units outstanding, end of period (000's)................... 4 1
======= =======
</TABLE>
<TABLE>
<CAPTION>
QUALITY BOND FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED
DECEMBER 31, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
------------------ ----------------------
<S> <C> <C>
Unit value, beginning of period...................................... $ 99.07 $100.00
======= =======
Unit value, end of period............................................ $114.38 $ 99.07
======= =======
Number of units outstanding, end of period (000's)................... 17 3
======= =======
</TABLE>
<TABLE>
<CAPTION>
QUALITY BOND FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED
DECEMBER 31, JANUARY 3, 1994*
1995 TO DECEMBER 31, 1994
----------------- ----------------------
<S> <C> <C>
Unit value, beginning of period...................................... $ 93.87 $100.00
======= =======
Unit value, end of period............................................ $108.38 $ 93.87
======= =======
Number of units outstanding, end of period (000's)................... 135 53
======= =======
</TABLE>
FSA-23
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
EQUITY INDEX FUND--MOMENTUM CONTRACTS
YEAR ENDED
DECEMBER 31, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
--------------- ------------------------
<S> <C> <C>
Unit value, beginning of period....................................... $100.95 $100.00
======= =======
Unit value, end of period............................................. $135.94 $100.95
======= =======
Number of units outstanding, end of period (000's).................... 12 1
======= =======
</TABLE>
<TABLE>
<CAPTION>
EQUITY INDEX FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED
DECEMBER 31, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
------------------ ------------------------
<S> <C> <C>
Unit value, beginning of period....................................... $100.94 $100.00
======= =======
Unit value, end of period............................................. $135.92 $100.94
======= =======
Number of units outstanding, end of period (000's).................... 44 3
======= =======
</TABLE>
<TABLE>
<CAPTION>
EQUITY INDEX FUND--EQUI-VEST PRP CONTRACTS
YEAR ENDED
DECEMBER 31, JUNE 1, 1994*
1995 TO DECEMBER 31, 1994
------------------ ------------------------
<S> <C> <C>
Unit value, beginning of period....................................... $100.95 $100.00
======= =======
Unit value, end of period............................................. $135.94 $100.95
======= =======
Number of units outstanding, end of period (000's).................... 592 47
======= =======
</TABLE>
FSA-24
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
INTERNATIONAL FUND--MOMENTUM CONTRACTS
SEPTEMBER 1, 1994* TO
DECEMBER 31, 1995
---------------------
<S> <C>
Unit value, beginning of period......................................................................... $ 0.00
=======
Unit value, end of period............................................................................... $104.15
=======
Number of units outstanding, end of period (000's)...................................................... 0
=======
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL FUND--MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1994* TO
DECEMBER 31, 1995
---------------------
<S> <C>
Unit value, beginning of period......................................................................... $ 0.00
=======
Unit value, end of period............................................................................... $104.15
=======
Number of units outstanding, end of period (000's)...................................................... 3
=======
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL FUND--EQUI-VEST PRP CONTRACTS
SEPTEMBER 1, 1994* TO
DECEMBER 31, 1995
---------------------
<S> <C>
Unit value, beginning of period......................................................................... $ 0.00
=======
Unit value, end of period............................................................................... $104.15
=======
Number of units outstanding, end of period (000's)...................................................... 141
=======
<FN>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
</FN>
</TABLE>
FSA-25
<PAGE>
PART C
OTHER INFORMATION
-----------------
Item 24. Financial Statements and Exhibits
---------------------------------
(a) Financial Statements included in Part B.
1. Separate Account A:
------------------
- Report of Independent Accountants - Price Waterhouse;
- Statements of Assets and Liabilities for the Year Ended
December 31, 1995;
- Statements of Operations for the Year Ended December 31,
1995;
- Statements of Changes in Net Assets for the Years Ended
December 31, 1995 and 1994;
- Notes to Financial Statements;
2. The Equitable Life Assurance Society of the United States:
---------------------------------------------------------
- Report of Independent Accountants - Price Waterhouse;
- Consolidated Balance Sheets as of December 31, 1995
and 1994;
- Consolidated Statements of Earnings for Years Ended December
31, 1995, 1994 and 1993;
- Consolidated Statements of Equity for Years Ended December 31,
1995, 1994 and 1993;
- Consolidated Statements of Cash Flows for Years Ended December
31, 1995, 1994 and 1993; and
- Notes to Consolidated Financial Statements.
(b) Exhibits.
The following exhibits are filed herewith:
1. (a) Resolutions of the Board of Directors of The Equitable
Life Assurance Society of the United States
("Equitable") authorizing the establishment of the
Registrant.
(b) Resolutions of the Board of Directors of
Equitable dated October 16, 1986 authorizing the
reorganization of Separate Accounts A, C, D, E, J
and K into one continuing separate account.
2. Not applicable.
C-1
<PAGE>
3. (a) Sales Agreement among Equitable, Separate Account A and
Equitable Variable Life Insurance Company, as principal
underwriter for The Hudson River Trust, previously filed
with this Registration Statement No. 33-47949 on April
28, 1993.
(b) Distribution and Servicing Agreement among Equico
Securities, Inc.,("Equico") Equitable and
Equitable Variable dated as of May 1, 1994,
previously filed with this Registration Statement
No. 33-47949 on April 13, 1995.
(c) Distribution Agreement by and between The Hudson
River Trust and Equico dated as of January 1,
1995, previously filed with this Registration
Statement No. 33-47949 on April 13, 1995.
(d) Sales Agreement among Equico, Equitable and Equitable's
Separate Account A, Separate Account No. 301 and
Separate Account No. 51 dated as of January 1, 1995,
previously filed with this Registration Statement No.
33-47949 on April 13, 1995
4. (a) Form of group annuity contract and individual annuity
certificate, previously filed with this Registration
Statement No. 33-47949 on May 15, 1992.
5. Form of application, previously filed with this Registration
Statement No. 33-47949 on May 15, 1992.
6. (a) Copy of the Restated Charter of Equitable, adopted
August 6, 1992.
(b) By-Laws of Equitable, as amended through July 22, 1992.
(c) Copy of the Certificate of Amendment to the
Restated Charter of Equitable, adopted November
18, 1993.
7. Not applicable.
8. Not applicable.
9. Opinion and Consent of Jonathan E. Gaines, Vice President and
Associate General Counsel as to the legality of the securities
being registered, previously filed with Pre-effective Amendment
No. 1 to this Registration Statement No. 33-47949 on August 7,
1992.
10. (a) Consent of Price Waterhouse LLP.
(b) Powers of Attorney.
11. Not applicable.
12. Not applicable.
C-2
<PAGE>
13. (a) Schedule for computation of Money Market Fund Yield
quotations, previously filed with this Registration
Statement No. 33-47949 on April 28, 1994.
(b) Separate Account A Performance Values Worksheets One-
Year Standardized Performance for the Year Ending
December 31, 1993, previously filed with this
Registration Statement No. 33-47949 on April 28, 1994.
14. Notice concerning regulatory relief, previously filed with this
Registration Statement No. 33-47949 on May 15, 1992.
27. Financial Data Schedule
C-3
<PAGE>
Item 25. Directors and Officers of Equitable
-----------------------------------
Set forth below is information regarding the directors and
principal officers of Equitable. Equitable's address is 787 Seventh Avenue,
New York, New York 10019. The business address of the persons whose names are
preceded by an asterik is that of Equitable.
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH EQUITABLE
- ---------------- --------------
DIRECTORS
- ---------
Claude Bebear Director
AXA S.A.
23, Avenue Matignon
75008 Paris, France
Christopher J. Brocksom Director
AXA Equity & Law
Amersham Road
High Wycombe
Bucks HP 13 5 AL, England
Francoise Colloc'h Director
AXA S.A.
23, Avenue Matignon
75008 Paris, France
Henri de Castries Director
AXA S.A.
23, Avenue Matignon
75008 Paris, France
Joseph L. Dionne Director
The McGraw-Hill Companies
1221 Avenue of the Americas
New York, NY 10020
William T. Esrey Director
Sprint Corporation
P.O. Box 11315
Kansas City, MO 64112
C-4
<PAGE>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH EQUITABLE
- ---------------- --------------
Jean-Rene Fourtou Director
Rhone-Poulenc S.A.
25 Quai Paul Doumer
92408 Courbevoie Cedex
France
Norman C. Francis Director
Xavier University of Louisiana
7325 Palmetto Street
New Orleans, LA 70125
Donald J. Greene Director
LeBouef, Lamb, Greene & MacRae
125 West 55th Street
New York, NY 10019-4513
Anthony J. Hamilton Director
Fox-Pitt, Kelton Limited
35 Wilson Street
London EC2M 2SJ
England
John T. Hartley Director
Harris Corporation
1025 NASA Boulevard
Melbourne, FL 32919
John H.F. Haskell, Jr. Director
Dillon, Read & Co., Inc.
535 Madison Avenue
New York, NY 10022
W. Edwin Jarmain Director
Jarmain Group Inc.
95 Wellington Street West
Suite 805
Toronto, Ontario M5J 2N7,
Canada
G. Donald Johnston, Jr. Director
184-400 Ocean Road
John's Island
Vero Beach, FL 32963
Winthrop Knowlton Director
Knowlton Brothers, Inc.
530 Fifth Avenue
New York, NY 10036
C-5
<PAGE>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH EQUITABLE
- ---------------- --------------
Arthur L. Liman Director
Paul, Weiss, Rifkind, Wharton &
Garrison
1285 Avenue of the Americas
New York, NY 10019
George T. Lowy Director
Cravath, Swaine & Moore
825 Eighth Avenue
New York, NY 10019
Didier Pineau-Valencienne Director
Schneider S.A.
64-70 Avenue Jean-Baptiste Clament
96646 Boulogne-Billancourt Cedex
France
George J. Sella, Jr. Director
P.O. Box 397
Newton, NJ 07860
Dave H. Williams Director
Alliance Capital Management
Corporation
1345 Avenue of the Americas
New York, NY 10105
OFFICER-DIRECTORS
- -----------------
*James M. Benson President, Chief Executive Officer
and Director
*William T. McCaffrey Senior Executive Vice President,
Chief Operating Officer and
Director
*Joseph J. Melone Chairman of the Board and Director
OTHER OFFICERS
- --------------
*Harvey Blitz Senior Vice President and Deputy
Chief Financial Officer
*Kevin R. Byrne Vice President and Treasurer
*Jerry M. de St. Paer Senior Executive Vice President and
Chief Financial Officer
*Gordon G. Dinsmore Senior Vice President
C-6
<PAGE>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH EQUITABLE
- ---------------- --------------
*Alvin H. Fenichel Senior Vice President and
Controller
*Michael E. Fisher Senior Vice President and Chief
Marketing Officer
*Paul J. Flora Vice President and Auditor
*Robert E. Garber Executive Vice President and
General Counsel
*J. Thomas Liddle, Jr. Senior Vice President and Chief
Valuation Actuary
*Michael S. Martin Senior Vice President
*Peter D. Noris Executive Vice President and Chief
Investment Officer
*Anthony C. Pasquale Senior Vice President
*Pauline Sherman Vice President, Secretary and
Associate General Counsel
Richard V. Silver Senior Vice President and Chief
1755 Broadway Compliance Officer
New York, New York, 10019
*Jose Suquet Executive Vice President and Chief
Agency Officer
C-7
<PAGE>
Item 26. Persons Controlled by or Under Common Control with Equitable or
Registrant
Separate Account No. A of The Equitable Life Assurance Society
of the United States (the "Separate Account") is a separate account of
Equitable. Equitable, a New York stock life insurance company, is a wholly
owned subsidiary of The Equitable Companies Incorporated (the "Holding
Company"), a publicly traded Company.
The largest stockholder of the Holding Company is AXA S.A. At
12/31/95 AXA S.A. beneficially owned aproximately 60.6% of the Holding
Company's common stock plus convertible preferred stock. AXA is able to
exercise significant influence over the operations and capital structure of
the Holding Company and its subsidiaries, including Equitable. AXA, a French
company, is the holding company for an international group of insurance and
related financial services companies.
C-8
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
The Equitable Companies Incorporated (1991) (Delaware)
Donaldson, Lufkin & Jenrette, Inc. (1993) (Delaware) (44.1%)
(See Addendum for subsidiaries)
The Equitable Life Assurance Society of the United States (1859)
(New York) (a)(b)
The Equitable of Colorado, Inc. (1983) (Colorado)
Equitable Variable Life Insurance Company (1972) (New York) (a)
FHJV Holdings, Inc. (1990) (Delaware)
EVLICO, INC. (1995) (Delaware)
EVLICO East Ridge, Inc. (1995) (Delaware)
GP/EQ Southwest, Inc. (1995) (Texas) (5.86%)
Franconom, Inc. (1985) (Pennsylvania)
Frontier Trust Company (1987) (North Dakota)
Gateway Center Buildings, Garage, and Apartment Hotel, Inc.
(inactive) (pre-1970) (Pennsylvania)
Equitable Deal Flow Fund, L.P.
Equitable Managed Assets (Delaware)
EREIM LP Associates (99%)
EML Associates, L.P. (19.8%)
ACMC, Inc. (1991) (Delaware) (limited partnership interests)
Alliance Capital Management L.P. (1988) (Delaware)
(46.7% limited partnership interests)
EVCO, Inc. (1991) (New Jersey)
EVSA, Inc. (1992) (Pennsylvania)
Prime Property Funding, Inc. (1993) (Delaware)
Wil Gro, Inc. (1992) (Pennsylvania)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-9
<PAGE>
The Equitable Companies Incorporated (cont.)
The Equitable Life Assurance Society of the United States (cont.)
Equitable BJVS, Inc. (1992) (California)
Equitable Rowes Wharf, Inc. (1995) (Massachusetts)
Fox Run, Inc. (1994) (Massachusetts)
GP/EQ Southwest, Inc. (1995) (Texas) (94.132%)
Equitable Underwriting and Sales Agency (Bahamas) Limited (1993)
(Bahamas)
STCS, Inc. (1992) (Delaware)
CCMI Corporation (1994) (Maryland)
FTM Corporation (1994) (Maryland)
HVM Corporation (1994) (Maryland)
Camelback JVS, Inc. (1995) (Arizona)
Equitable Holding Corporation (1985) (Delaware)
Equico Securities, Inc. (1971) (Delaware) (a) (b)
ELAS Securities Acquisition Corp. (1980) (Delaware)
Equitable Realty Assets Corporation (1983) (Delaware)
100 Federal Street Funding Corporation (Massachusetts)
100 Federal Street Realty Corporation (Massachusetts)
EquiSource, of New York, Inc. (formerly Traditional Equinet
Business Corporation of New York) (1986) (New York) (See
Addendum for subsidiaries)
Equitable Casualty Insurance Company (1986) (Vermont)
EREIM LP Corp. (1986) (Delaware)
EREIM LP Associates (1%)
EML Associates (.02%)
Six-Pac G.P., Inc. (1990) (Georgia)
Equitable Distributers, Inc. (1988) (Delaware) (a)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-10
<PAGE>
The Equitable Companies Incorporated (cont.)
The Equitable Life Assurance Society of the United States (cont.)
Equitable Holding Corporation (cont.)
Equitable JVS, Inc. (1988) (Delaware)
Astor/Broadway Acquisition Corp. (1990) (New York)
Astor Times Square Corp. (1990) (New York)
PC Landmark, Inc. (1990) (Texas)
Equitable JVS II, Inc. (1994) (Maryland)
EJVS, Inc. (1995) (New Jersey)
Donaldson, Lufkin & Jenrette, Inc. (1985 by EIC; 1993 by EHC)
(Delaware) (36.1%) (See Addendum for subsidiaries)
JMR Realty Services, Inc. (1994) (Delaware)
Equitable Investment Corporation (1971) (New York)
Stelas North Carolina Limited Partnership (50% limited
partnership interest) (1984)
EQ Services, Inc. (1992) (Delaware)
Equitable Agri-Business, Inc. (1984) Delaware
Alliance Capital Management Corporation (1991) (Delaware) (b)
(See Addendum for subsidiaries)
Equitable Capital Management Corporation (1985) (Delaware)(b)
Alliance Capital Management L.P. (1988) (Delaware)
(16.6%limited partnership interests)
Equitable JV Holding Corporation (1989) (Delaware)
Equitable Real Estate Investment Management, Inc. (1984)
(Delaware) (b)
Equitable Realty Portfolio Management, Inc. (1984)
(Delaware)
EQK Partners (100% general partnership interest)
Compass Management and Leasing Co. (formerly known as
EREIM, Inc.) (1984) (Colorado)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-11
<PAGE>
The Equitable Companies Incorporated (cont.)
The Equitable Life Assurance Society of the United States (cont.)
Equitable Real Estate Investment Management, Inc. (cont.)
Equitable Real Estate Capital Markets, Inc. (1987) (Delaware)
(a)
EQ Realty Associates-V, Inc. (1987) (Delaware)
EPPNLP Corp. (1987) (Delaware)
Equitable Pacific Partners Corp. (1987) (Delaware)
Equitable Pacific Partners Limited Partnership
EREIM Managers Corp. (1986) (Delaware)
ML/EQ Real Estate Portfolio, L.P.
EML Associates, L.P. (80%)
Compass Retail, Inc. (1990) (Delaware)
Compass Management and Leasing, Inc. (1991) (Delaware)
Compass Cayman (1996) (Cayman Islands)
Column Security Associates, Inc. (1993) (Delaware)\
Column Financial, Inc. (1993) (Delaware) (50%)
Buckhead Strategic Corp. (1994) (Delaware)
Buckhead Strategic Fund, L.P.
BH Strategic Co. I, L.P.
Buckhead Strategic Co. II, L.P.
Buckhead Strategic Co. III, L.P.
Buckhead Strategic Co. IV, L.P.
CJVS, Inc. (1994) (California)
ERE European Corp. I, L.P. (1994) (Delaware)
A/E European Associates I Limited Partnership
Community Funding,Inc. (1994) (Delaware)
Community Mortgage Fund, L.P. (1994) (Delaware)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-12
<PAGE>
The Equitable Companies Incorporated (cont.)
The Equitable Life Assurance Society of the United States (cont.)
Equitable Real Estate Investment Management, Inc. (cont.)
Buckhead Strategic Corp., II (1995) (Delaware)
Buckhead Strategic Fund L.P.II
Buckhead Co. III, L.P.
HYDOC, L.L.C.
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-13
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM - NON-REAL ESTATE SUBSIDIARY
OF EQUITABLE HOLDING CORPORATION
HAVING MORE THAN FIVE SUBSIDIARIES
-------------------------------------------------
EquiSource of New York, Inc. (formerly Traditional Equinet Business
Corporation of New York) has the following subsidiaries that are brokerage
companies to make available to Equitable Agents within each state traditional
(non-equity) products and services not produced by Equitable:
EquiSource of Delaware, Inc. (1986) (Delaware)
EquiSource of Alabama, Inc. (1986) (Alabama)
EquiSource of Arizona, Inc. (1986) (Arizona)
EquiSource of Arkansas, Inc. (1987) (Arkansas)
EquiSource Insurance Agency of California, Inc. (1987) (California)
EquiSource of Colorado, Inc. (1986) (Colorado)
EquiSource of Hawaii, Inc. (1987) (Hawaii)
EquiSource of Maine, Inc. (1987) (Maine)
EquiSource Insurance Agency of Massachusetts, Inc. (1988)
(Massachusetts)
EquiSource of Montana, Inc. (1986) (Montana)
EquiSource of Nevada, Inc. (1986) (Nevada)
EquiSource of New Mexico, Inc. (1987) (New Mexico)
EquiSource of Pennsylvania, Inc. (1986) (Pennsylvania)
EquiSource Insurance Agency of Utah, Inc. (1986) (Utah)
EquiSource of Washington, Inc. (1987) (Washington)
EquiSource of Wyoming, Inc. (1986) (Wyoming)
C-14
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM - OTHER NON-REAL ESTATE SUBSIDIARIES
HAVING MORE THAN FIVE SUBSIDIARIES
-----------------------------------------
Donaldson, Lufkin & Jenrette, Inc. has the following subsidiaries, and
approximately 60 other subsidiaries, most of which are special purpose
subsidiaries (the number fluctuates according to business needs):
Donaldson, Lufkin & Jenrette, Inc. (1985) (Delaware)
Donaldson, Lufkin & Jenrette Securities Corporation (1985)
(Delaware) (a) (b)
Wood, Struthers & Winthrop Management Corporation
(1985) (Delaware) (b)
Autranet, Inc. (1985) (Delaware) (a)
DLJ Real Estate, Inc.
DLJ Capital Corporation (b)
DlJ Mortgage Capital, Inc. (1988) (Delaware)
Column Financial, Inc. (1993) (Delaware) (50%)
Alliance Capital Management Corporation has the following subsidiaries:
Alliance Capital Management Corporation (1991) (Delaware) (b)
Alliance Capital Management L.P. (1988) (Delaware) (b)
Alliance Capital Management Corporation of Delaware,
Inc (Delaware)
Alliance Fund Services, Inc. (Delaware)
Alliance Capital Management (Japan), Inc.
(formerly Alliance Capital Mgmt. Intl.)
Alliance Fund Distributors, Inc. (Delaware) (a)
Alliance Oceanic Corp. (Delaware) (formerly
Alliance Capital, Ltd.)
Alliance Capital Management Australia Pty. Ltd.
(Australia)
Meiji - Alliance Capital Corp. (Delaware) (50%)
Alliance Capital (Luxembourg) S.A. (99.98%)
Alliance Southern Europe Corp. (Delaware)
(inactive)
Alliance Barra Research Institute, Inc.
(Delaware) (50%)
Alliance Capital Management Canada, Inc. (Canada)
(99.99%)
Alliance Capital Management Limited (United
Kingdom)
Pastor Alliance Gestora de Fondas de
Pensiones S.A.(Spain) (50%)
Dementional Asset Management, Ltd. (United
Kingdom)
Dementional Trust Management, Ltd. (United
Kingdom)
Alliance Capital Global Derivatives Corp.
(Delaware)
Alliance Corporate Finance Group, Inc. (Delaware)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-15
<PAGE>
AXA GROUP CHART
The information listed below is dated as of January 1, 1996; percentages shown
represent voting power. The name of the owner is noted when AXA indirectly
controls the company.
AXA INSURANCE AND REINSURANCE BUSINESS HOLDING
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Axa Assurances Iard France 96.9%
Axa Assurances Vie France 100% by Axa and Uni Europe Vie
Uni Europe Assurance France 100% by Axa and Axa Assurances
Iard
Uni Europe Vie France 99.3% by Axa and Axa
Assurances Iard
Alpha Assurances Vie France 100%
Axa Direct France 100%
Direct Assurances Iard France 100% by Axa Direct
Direct Assurance Vie France 100% by Axa Direct
Axa Direkt Versicherung A.G. Germany 100% owned by Axa Direct
Axiva France 90.3%
Defense Civile France 95%
Societe Francaise d'Assistance France 51.2% by Axa Assurances Iard
Monvoisin Assurances France 99.92% by different companies
and Mutuals
Societe Beaujon France 100%
Lor Finance France 99.9%
Jour Finance France 100% by different companies
Compagnie Auxiliaire pour le France 100% by Societe Beaujon
Commerce et l'Industrie
C.F.G.A. France 99.96% owned by the mutuals
and Finaxa
Saint Bernard Diffusion France 89.9%
Sogarep France 95%, (100% with the mutuals)
Argovie France 100% by Axiva and SCA Argos
Finargos France 66.4% owned by Axiva
Astral France 100% by Uni Europe Assurance
Argos France N.S.
Finaxa Belgium Belgium 100%
C-16
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Axa Belgium Belgium 18.5% by Axa(SA) and 72.5% by
Finaxa Belgium
De Kortrijske Verzekering Belgium 99.8%
Juris Belgium 100%
Finaxa Luxembourg Luxembourg 100%
Axa Assurance IARD Luxembourg Luxembourg 99.4%
Axa Assurance Vie Luxembourg Luxembourg 99.4%
Axa Aurora Spain 50%
Aurora Polar SA de Seguros Spain 99.8% owned by Axa Aurora
y Reaseguros
Axa Vida SA de Seguros Spain 99.8% owned by Axa Aurora
y Reaseguros
Axa Gestion de Seguros Spain 100% owned by Axa Aurora
y Reaseguros
Axa Assicurazioni Italy 100%
Eurovita Italy 30% owned by Axa Assicurazioni
Axa Equity & Law plc U.K. 99.9%
Axa Equity & Law Life Assurance U.K. 100% by Axa Equity & Law plc
Society
Axa Equity & Law International U.K. 100% owned by Axa Equity & Law
plc
Axa Equity & Law Netherlands 100% by Axa Equity & Law plc
Levensverzekeringen
Axa Insurance U.K 100%
Axa Global Risks U.K 100% by Axa and Uni Europe
Assurance
Axa U.K. U.K. 100%
Axa Canada Canada 100%
Boreal Insurance Canada 100% owned by AXA Canada
Axa Assurances Inc Canada 100% owned by Axa Canada
Axa Insurance Inc Canada 100% owned by Axa Canada
Anglo Canada General Canada 100% owned by Axa Canada
Insurance Cy
Axa Pacific Insurance Canada 100% by Boreal Insurance
Boreal Assurances Agricoles Canada 100% by Boreal Insurance
C-17
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Sime Axa Berhad Malaysia 30%
Axa Sime Investment Holdings Singapore 50%
Pte Ltd
Axa Sime Assurance Hong Kong 100% owned by Axa Sime Invt.
Holdings Pte Ltd
Axa Sime Assurance Singapore 100% owned by Axa Sime Invt
Holdings Pte Ltd
Axa Life Insurance Hong Kong 100%
PT Asuransi Axa Indonesia Indonesia 80%
Equitable Cies Incorp. U.S.A. 60.6% owned by Axa, 44.4%
Financiere 45, 3.8%,
Lorfinance 7.6% and Axa Equity
& Law Life Association
Society 4.8%
Equitable Life Assurance U.S.A. 100% owned by Equitable Cies
of the USA Inc
National Mutual Holdings Ltd Australia 51%
The National Mutual Life Australia 100% owned by National Mutual
Association of Australasia Ltd Holdings Ltd
National Mutual International 74% owned by National Mutual
Pty Ltd Holdings Ltd and 26% by The
National Mutual Life
Association of Australasia
National Mutual (Bermuda) Ltd Australia 100% owned by National Mutual
International Pty Ltd
National Mutual Asia Ltd Bermudas 54% owned by National Mutual
(Bermuda) Ltd and 20% by Delta
Ltd
National Mutual Funds Australia 100% owned by National Mutual
Management (Global) Ltd Holdings Ltd
National Mutual Funds USA 100% owned by National Mutual
Management North America Funds Management (Global) Ltd
Holdings Inc
Australian Casualty & Australia 100% owned by National Mutual
Life Ltd Holdings Ltd
National Mutual Health Australia 100% owned by National Mutual
Insurance Pty Ltd Holdings Ltd
Axa Reassurance France 100%
Axa Re Finance France 100% owned by Axa Reassurance
Axa Re Vie France 100% owned by Axa Reassurance
Axa Cessions France 100%
C-18
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Abeille Reassurances France 100% owned by Axa Reassurance
Axa Re Mexico Mexico 100% owned by Axa Reassurance
Axa Re Asia Singapore 100% owned by Axa Reassurance
Axa Re U.K. Plc U.K. 100% owned by Axa Re U.K.
Holding
Axa Re U.K. Holding U.K 100% owned by Axa Reassurance
Axa Re U.S.A. U.S.A 100% owned by Axa America
Axa America U.S.A. 100% owned by Axa Reassurance
International Technology U.S.A. 80% owned by Axa America
Underwriters Inc (INTEC)
Axa Re Life U.S.A. 100% owned by Axa Re Vie
C.G.R.M. Monaco 100% by Axa Reassurance
Axa Life Insurance Japan 100% owned by Axa
Dongbu Axa Life Insurance Korea 50%
Co Ltd
Axa Oyak Hayat Sigota Turkey 60%
Oyak Hayat Sigorta Turkey 11%
C-19
<PAGE>
AXA FINANCIAL BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Compagnie Financiere de France 96.9%, (100% with the Mutuals)
Paris (C.F.P.)
Axa Banque France 98.7% owned by C.F.P.
Financiere 78 France 100% owned by C.F.P.
Axa Credit France 65% owned by C.F.P.
Axa Gestion Interessement France 100% owned by C.F.P.
Compagnie Europeenne de France 100% owned by C.F.P.
Credit (C.E.C.)
Fidei France 20.7% owned by C.F.P. and
10.8% by Axamur
Meeschaert Rousselle France 100% owned by Financiere 78
M R Futures SNC France 59% by Meeschaert Rousselle
Opale Derivee Bourse France 89.4% by M.R. Futures and
Meeschaert Rousselle
Anjou Courtage France 70% owned by Meeschaert
Rousselle
Axiva Gestion France 100% owned by Axiva
Juri Creances France 100% by different companies
Societe de Placements France 99.3% with the Mutuals
Selectionnes S.P.S.
Presence et Initiative France 73% with the Mutuals
Vamopar France 100% owned by Societe Beaujon
Financiere Mermoz France 100%
Axa Asset Management France 100%
Europe
Axa Asset Management France 100% owned by Axa Asset
Partenaires Management Europe
Axa Asset Management France 100% owned by Axa Asset
Conseils Management Europe
Axa Asset Management France 100% owned by Axa Asset
Distribution Management Europe
Axa Equity & Law Home U.K. 100% owned by Axa Equity & Law
Loans
Axa Equity & Law U.K. 100% owned by Axa Equity & Law
Commercial Loans
C-20
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Alliance Capital Management U.S.A. 59% held by ELAS
Donaldson Lufkin & Jenrette U.S.A. 36.1% owned by ELAS and 44.1%
by Equitable Cies Inc
Cogefin Luxembourg 100% owned by Axa Belgium
Soflinter Belgium 100% owned by Axa Belgium
Financiere 45 France 99.6%
Mofipar France 99.76% owned by Societe
Beaujon
ORIA France 100% owned by Axa Millesimes
Axa Oeuvres d'Art France 100% by the Mutuals
Axa Cantenac Brown France 100%
Colisee Acti Finance 1 France 100% owned by Societe Beaujon
Colisee Acti Finance 2 France 100% owned by Axa Assurances
Iard Mutuelle
Participations 2001 France 100% owned by Societe Beaujon
Finalor France 100% owned by Societe Beaujon
C-21
<PAGE>
AXA REAL ESTATE BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
C.I.P.M. France 97.6% with the Mutuals
Fincosa France 100% owned by C.I.P.M.
Prebail France 100% owned by Societe Beaujon
and C.F.P.
Axamur France 100% by different companies
and mutuals
Parigest France 100% by the Mutuals, C.I.P.M.
and Fincosa
Parimmo France 100% by the insurance
companies and the mutuals
S.G.C.I. France 100% with the Mutuals
Transaxim France 99.4% owned by S.G.C.I.
Compagnie Parisienne France 100% owned by S.G.C.I.
de Participations
Monte Scopeto France 100% owned by C.P.P.
Matipierre France 100% by different companies
Securimmo France 87% by different companies
and mutuals
Paris Orleans France 99.9% by different companies
Colisee Bureaux France 99.4% by different companies
Colisee Premiere France 99.9% by different companies
Colisee Laffitte France 99.8% by Colisee Bureaux
Carnot Laforge France 100% by Colisee Premiere
Parc Camoin France 100% by Colisee Premiere
Delta Point du Jour France 100% owned by Matipierre
Paroi Nord de l'Arche France 100% owned by Matipierre
Falival France 100% owned by Axa Reassurance
Compagnie du Gaz d'Avignon France 99% owned by Axa Assurances
Iard
Ahorro Familiar France 40.1% owned by Axa Assurances
Iard
Fonciere du Val d'Oise France 100% owned by C.P.P.
Sodarec France 99.9% owned by C.P.P.
Centrexpo France 99.9% owned by C.P.P.
C-22
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Fonciere de la Vile du Bois France 99.6% owned by Centrexpo
Colisee Seine France 97.4% by different companies
Translot France 99.9% by SGCI
S.N.C. Dumont d'Urville France 100% owned by Colisee
Premiere
Colisee Participations France 100% by SGCI
Colisee Federation France 100% by SGCI
Colisee Saint Georges France 100% by SGCI
Drouot Industrie France 50% by SGCI
Colisee Vauban France 99.7% by Matipierre
Fonciere Colisee France 98.9% by Matipierre
Axa Pierre S.C.I. France 97.6% owned by different
companies and Mutuals
Axa Millesimes France 77.8% owned by AXA and the
Mutuals
Chateau Suduirault France 100% owned by Axa Millesimes
Diznoko Hongrie 100% owned by Axa Millesimes
Compagnie Fonciere Matignon France 100% by different companies
and Mutuals
Equitable Real Estate U.S.A. 100% owned by ELAS
Investment
Quinta do Noval Vinhos S.A. Portugal 99.9% owned by Axa Millesimes
C-23
<PAGE>
OTHER AXA BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
A.N.F. France 95.4% owned by Finaxa
SCOR France 10.1% owned by Axa Reassurance
Campagnie du Cambodge France 23% owned by A.N.F.
Lucia France 20.6% owned by Axa Assurance Iard
and 8.6% by the mutuals
Rubis et Cie France 12.7% owned by Uni Europe Assurance
Schneider S.A. France 10%
Eurofin France 31.6% owned by Compangie Financiere
de Paris
C-24
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
NOTES
-----
1. The year of formation or acquisition and state or country of
incorporation of each affiliate is shown.
2. The chart omits certain relatively inactive special purpose real estate
subsidiaries, partnerships, and joint ventures formed to operate or develop a
single real estate property or a group of related properties, and certain
inactive name-holding corporations.
3. All ownership interests on the chart are 100% common stock ownership except
for (a) as noted for certain partnership interests, (b) ACMC, Inc.'s and
Equitable Distributor Inc.'s limited partnership interests in Alliance Capital
Management L.P., (c) as noted for certain subsidiaries of Alliance Capital
Management Corp. of Delaware, Inc., (d) Treasurer Robert L. Bennett's 20%
interest in Compass Management and Leasing Co. (formerly known as EREIM,
Inc.,) (e) as noted for certain subsidiaries of AXA,(f) and The Equitable
Companies Incorporated's 44.1% interest in DLJ and Equitable Holding Corp's
36.1% interest in same and (g) DLJ Mortgage Capital Inc.'s and Equitable Real
Estate Management Inc.'s ownership (50% each) in Column Financial, Inc.
4. The operational status of the entities shown as having been formed or
authorized but "not yet fully operational" should be checked with the
appropriate operating areas, especially for those that are start-up
situations.
5. The following entities are not included in this chart because, while they
have an affiliation with The Equitable, their relationship is not the ongoing
equity-based form of control and ownership that is characteristic of the
affiliations on the chart, and, in the case of the first two entities, they
are under the direction of at least a majority of "outside" trustees:
The Equitable Funds
The Hudson River Trust
Separate Accounts.
6. This chart was last revised March 25, 1996.
C-25
<PAGE>
Item 27. Number of Contractowners
------------------------
As of March 31, 1996, there were 36,284 certificates in force
under the Momentum Contract offered by the registrant.
Item 28. Indemnification
---------------
(a) Indemnification of Principal Underwriter
----------------------------------------
To the extent permitted by law of the State of New York
and subject to all applicable requirements thereof,
Equitable undertook to indemnify each of its directors
and officers who is made or threatened to be made a
party to any action or proceeding, whether civil or
criminal, by reason of the fact the director or officer,
or his or her testator or intestate, is or was a
director or officer of Equitable.
(b) Undertaking
-----------
Insofar as indemnification for liability arising under
the Securities Act of 1933 ("Act") may be permitted to
directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the
opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable. In the event
that a claim for indemnification against such
liabilities (other than the payment by the registrant of
expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted
by such director, officer or controlling person in
connection with the securities being registered, the
registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against
public policy as expressed in the Act and will be
governed by the final adjudication of such issue.
Item 29. Principal Underwriters
----------------------
(a) Equico, a wholly-owned subsidiary of Equitable, is the
principal underwriter and depositor for its Separate
Account A and Separate Account No. 301, and for Separate
Account I and Separate Account FP of Equitable Variable
Life Insurance Company. On or about May 1, 1996 Equico
will change its name to EQ Financial Consultants, Inc.
Equico's principal business address is 1755 Broadway,
NY, NY 10019.
(b) See Item 25.
(c) Not applicable.
C-26
<PAGE>
Item 30. Location of Accounts and Records
--------------------------------
The records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and Rules 31a-1 to 31a-3 thereunder are
maintained by Equitable at Two Penn Plaza, New York, New York 10121.
Item 31. Management Services
-------------------
Not applicable.
Item 32. Undertakings
------------
The Registrant hereby undertakes:
(a) to file a post-effective amendment to this registration
statement as frequently as is necessary to ensure that
the audited financial statements in the registration
statement are never more than 16 months old for so long
as payments under the variable annuity contracts may be
accepted;
(b) to include either (1) as part of any application to
purchase a contract offered by the prospectus, a space
that an applicant can check to request a Statement of
Additional Information, or (2) a postcard or similar
written communication affixed to or included in the
prospectus that the applicant can remove to send for a
Statement of Additional Information; and
(c) to deliver any Statement of Additional Information and
any financial statements required to be made available
under this Form promptly upon written or oral request.
The Registrant hereby represents that it is relying on the
November 28, 1988 no-action letter (Ref. No. IP-6-88) relating to variable
annuity contracts offered as funding vehicles for retirement plans meeting the
requirements of Section 403(b) of the Internal Revenue Code. Registrant
further represents that it complies with the provisions of paragraph (1)-(4)
of that letter.
C-27
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Registrant certifies that it meets the requirements of
Securities Act Rule 485(b) for effectiveness of this amendment to the
Registration Statement and has caused this amendment to the registration
statement to be signed on its behalf in the City and State of New York, on
this 25th day of April, 1996.
SEPARATE ACCOUNT A OF THE EQUITABLE
LIFE ASSURANCE SOCIETY OF THE
UNITED STATES
(Registrant)
By: The Equitable Life Assurance Society
of the United States
By: /s/James D. Goodwin
-----------------------------
James D. Goodwin
Vice President
C-28
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Depositor certifies that it meets the requirements of
Securities Act Rule 485(b) for effectiveness of this amendment to the
Registration Statement and has caused this amendment to the registration
statement to be signed on its behalf in the City and State of New York, on
this 25th day of April, 1996.
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
(Depositor)
By: /s/ James D. Goodwin
---------------------------
James D. Goodwin
Vice President
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, this amendment to the registration statement has been signed by
the following persons in the capacities and on the date indicated:
PRINCIPAL EXECUTIVE OFFICERS:
Joseph J. Melone Chairman of the Board and Director
James M. Benson President, Chief Executive Officer
and Director
William T. McCaffrey Senior Executive Vice President,
Chief Operating Officer and Director
PRINCIPAL FINANCIAL OFFICER:
Jerry M. de St. Paer Senior Executive Vice President and
Chief Financial Officer
PRINCIPAL ACCOUNTING OFFICER:
/s/ Alvin H. Fenichel Senior Vice President and Controller
- ---------------------------
Alvin H. Fenichel
April 25th, 1996
DIRECTORS:
Claude Bebear Jean-Rene Fourtou Winthrop Knowlton
James M. Benson Norman C. Francis Arthur L. Liman
Christopher Brocksom Donald J. Greene George T. Lowy
Francoise Colloc'h Anthony J. Hamilton William T. McCaffrey
Henri de Castries John T. Hartley Joseph J. Melone
Joseph L. Dionne John H.F. Haskell, Jr. Didier Pineau-Valencienne
William T. Esrey W. Edwin Jarmain George J. Sella, Jr.
G. Donald Johnston, Jr. Dave H. Williams
By: /s/ James D. Goodwin
James D. Goodwin
Attorney-in-Fact
April 25th, 1996
C-29
<PAGE>
EXHIBIT INDEX
EXHIBIT NO.
- ----------
1(a) Resolutions of the Board of Directors of Equitable
authorizing the establishment of the Registrant.
1(b) Resolutions of the Board of Directors of Equitable
authorizing the reorganization of the Separate Accounts.
6(a) Copy of the Restated Charter of Equitable, adopted
August 6, 1992.
6(b) By-laws of Equitable, as amended through July 22, 1992.
6(c) Copy of the Certificate of Amendment of the Restated
Charter of Equitable.
10(b) Consent of Price Waterhouse.
10(c) Powers of Attorney.
27 Financial Data Schedule
C-30
OFFICIAL NOTICE
Res. No. 35-68 adopted by
Board of Directors
July 18, 1968
To: Messrs. McVity (3), Kernan, Sommers, Beesley, Erway, Smith, Secretary
Keehn, Miller, Hering, Stocker and Ferguson, Whitenight
RESOLUTION RE INDIVIDUAL VARIABLE ANNUITIES --
ESTABLISHMENT OF SEPARATE ACCOUNT A AND REGISTRATION THEREOF
UNDER THE INVESTMENT COMPANY ACT OF 1940, ETC.
----------------------------------
RESOLVED, That, pursuant to section 227 of the Insurance Law of the
State of New York, authority is hereby given to establish a separate account
designated "Separate Account A";
FURTHER RESOLVED, That Separate Account A shall constitute a funding
medium in connection with such agreements issued and administered by the
Society as the Society may designate and in furtherance thereof Separate
Account A is hereby empowered to:
(a) receive, hold, invest and reinvest amounts arising from
(i) amounts received by the Society pursuant to such agreements,
(ii) such other assets of the Society as the Society may deem
necessary to establish Separate Account A or to support the
operation of such agreements, and (iii) the income and gains arising
from the foregoing;
(b) to the extent required by the Investment Company Act of
1940, register under such Act and make application for exemption
from such provisions thereof as may appear to be necessary or
desirable;
(c) to the extent required by the Securities Act of 1933,
effect one or more registrations thereunder and in connection with
such registrations file one or more registration statements
thereunder, including any documents required as a part thereof;
(d) provide for investment management services;
(e) provide for the sale of agreements issued and
administered by the Society, to the extent such agreements provide
for allocation of amounts to Separate Account A;
(f) select an independent public accountant to audit the
books and records of Separate Account A; and
(g) perform such additional functions and take such
additional action as may be necessary or desirable to carry out the
foregoing and the intent and purpose thereof or as from time to time
may be authorized by or pursuant to a resolution of the Board of
Directors or any committee thereof;
<PAGE>
-2-
FURTHER RESOLVED, That, pursuant to section 227(6) of the Insurance
Law of the State of New York, Separate Account A shall have a committee
designated the "Separate Account A Committee" ("SAA Committee") initially to
consist of five members to be designated by the Chairman of the Board, the
Vice-Chairman of the Board, or the President of the Society, each of whom
shall serve until the first meeting of persons having voting rights in respect
of Separate Account A, as provided by its Rules and Regulations to be
hereafter adopted or approved, and until his successor shall qualify, and
thereafter the members of the SAA Committee shall be elected by a plurality of
the votes cast by such persons having such voting rights;
FURTHER RESOLVED, That, pursuant to section 5.5 of the By-Laws of the
Society, as amended, in consideration of each member's agreement to serve as a
member of the SAA Committee at the Society's request and because of the
Society's interest in Separate Account A, the Society shall indemnify, to the
extent permitted by the law of the State of New York and subject to all
applicable requirements thereof, any person made or threatened to be made a
party to any action or proceeding, whether civil or criminal, by reason of the
fact that he, his testator or intestate is or was a member of the SAA
Committee, provided that, unless and until renewed by resolution of the Board
of Directors, such indemnification shall be in respect of action taken or
omitted only during the period ending with the first meeting of persons having
voting rights in respect of Separate Account A;
FURTHER RESOLVED, That the Society shall offer to provide to Separate
Account A services relating to investment management and sales at rates of
compensation for such services as may be approved by the officers of the
Society; and the officers of the Society and each of them is hereby authorized
to execute all agreements on behalf of the Society with respect thereto
containing such provisions as he may deem necessary or appropriate, including
such provisions as shall satisfy the requirements of the Investment Company
Act of 1940 and the regulations issued thereunder;
FURTHER RESOLVED, That, in cooperation with the SAA Committee,
authority is hereby given to effect such registrations with the Securities and
Exchange Commission under the Securities Act of 1933, with respect to any
agreements providing for allocation of amounts to Separate Account A and
related units or interests in Separate Account A which the Society from time
to time may propose to offer in connection with plans and agreements qualified
under sections 401 or 403(a) or purchased under section 403(b) of the Internal
Revenue Code, as the officers of the Society may deem necessary or
appropriate;
FURTHER RESOLVED, That, in connection with such registrations, the
officers of the Society and each of them is hereby authorized, with the
assistance of the Society's special S.E.C. counsel, Freedman, Levy, Kroll &
Simonds, and the Society's independent public accountants, Haskins & Sells, to
prepare, execute and file with the Securities and Exchange Commission, in the
name and on behalf of the Society, such registration statements under the
Securities Act of 1993, including prospectuses, supplements, exhibits and
other documents relating thereto, and amendments to the foregoing, in such
form as the officer executing the same may deem necessary or appropriate;
<PAGE>
-3-
FURTHER RESOLVED, That Davidson Sommers is hereby appointed as agent
for service under any such registration statement duly authorized to receive
communications and notices from the Securities and Exchange Commission with
respect to the registration statement;
FURTHER RESOLVED, That each officer and each director of the Society
who is or may be required to execute any such registration statement or any
amendment thereof, whether on behalf of the Society or as an officer or
director thereof or by attesting the seal of the Society or otherwise, is
hereby authorized to execute a power of attorney appointing J. Henry Smith and
Davidson Sommers, and each of them, severally, his true and lawful attorney
and agent, with full power of substitution to each, to execute in his name,
place and stead and in any such capacity, said registration statement and all
amendments thereto, and all instruments necessary or appropriate in connection
therewith, to attest the seal of the Society thereon, and to file the same
with the Securities and Exchange Commission, each of said attorneys and
agents, and his or their substitutes, to be empowered to act with or without
the others or other, and to have full power and authority to do or cause to be
done in the name and on behalf of the Society and said officers and directors,
or any one or more of them, every act and thing with respect thereto as fully
and to all intents and purposes as any such officer or director might or could
do in person;
FURTHER RESOLVED, That, in cooperation with the SAA Committee, the
officers of the Society and each of them is hereby authorized, with the
assistance of counsel and accountants for the Society, to prepare, execute and
file with the Securities and Exchange Commission an application for an order
under section 6(c) of the Investment Company Act of 1940 for such exemptions
from the provisions of such Act as he may deem necessary or desirable;
FURTHER RESOLVED, That the officers of the Society and each of them
is hereby authorized, with the assistance of counsel and accountants for the
Society, to effect, in the name and on behalf of the Society, all such
registrations, filings and qualifications under the Securities Exchange Act of
1934 as a broker or dealer and under Blue Sky or Securities laws and under
Insurance Securities laws of such states and other jurisdictions as he may
deem necessary or appropriate, with respect to the Society and with respect to
the Society's agreements providing for allocation of amounts to Separate
Account A and related units or interests in Separate Account A in connection
with plans and agreements qualified under sections 401 or 403(a) or purchased
under section 403(b) of the Internal Revenue Code; such authorization to
include registration, filing and qualification of the Society and of said
agreements and related units or interests, as well as registration, filing and
qualification of officers, employees and agents of the Society as brokers,
dealers, agents, salesmen, or otherwise; and such authorization shall also
include, in connection therewith, authority to prepare, execute, acknowledge
and file all such applications, applications for exemptions, certificates,
affidavits, covenants, consents to service of process and other instruments
and to take all such action as the officer executing the same or taking such
action may deem necessary or desirable;
<PAGE>
-4-
FURTHER RESOLVED, That the Chairman of the Board, the Vice-Chairman
of the Board, and the President and each of them is hereby authorized to
change the designation of Separate Account A and the Separate Account A
Committee, or either of them, to such other designation or designations as he
may deem necessary or desirable; and
FURTHER RESOLVED, That the officers of the Society and each of them
is hereby authorized to execute and deliver all such documents and papers and
to do or cause to be done all such acts and things as he may deem necessary or
desirable to carry out the foregoing resolutions and the intent and purpose
thereof.
JOAN B. MIASTKOWSKI
Assistant Vice President
And Assistant Secretary
[EQUITABLE LOGO]
I, JOAN B. MIASTKOWSKI, ASSISTANT VICE PRESIDENT AND ASSISTANT
SECRETARY of THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES, do
hereby certify that attached hereto marked "EXHIBIT A" is a true and a correct
copy of Resolution No. 86-86, duly adopted by the Board of Directors at a
meeting held on October 16, 1986, at which a quorum was present and acting
throughout; that said resolution has not been amended, annulled, rescinded, or
revoked; and that said resolution is now in full force and effect.
IN WITNESS WHEREOF, I have hereunto affixed my signature and the Seal
of said Society this 26th day of May, 1987.
/s/ Joan B. Miastkowski
---------------------------------
Assistant Vice President
and Assistant Secretary
EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES o 787 Seventh Avenue,
New York, N.Y. 10019
<PAGE>
EXHIBIT A
PROPOSED RESOLUTIONS RE
REORGANIZATION OF SEPARATE ACCOUNTS A, C, D, E, J AND K
- -------------------------------------------------------------------------------
WHEREAS, it has been recommended (i) that Equitable reorganize Separate
Accounts A, C, D, E, J and K (the "Separate Accounts") into one separate
account organized as a unit investment trust ("UIT") with an underlying mutual
fund (the "Fund") in the form of a Massachusetts Business Trust, (ii) that
Equitable's Equivest and Equiplan new and existing group deferred variable
annuity contracts for the IRA, TSA and other tax-favored (qualified or
non-qualified) markets (the "Contracts") currently being funded through the
Separate Accounts be funded through the UIT, and (iii) that Equitable continue
to perform administrative, recordkeeping and, along with Equitable Investment
Management Corporation, investment advisory functions for the Contracts and
the UIT, all as more fully set forth in the memorandum dated October 3, 1986,
from Executive Vice President Barth to Senior Executive Vice President and
Chief Operating Officer Walsh submitted to and filed with the records of this
meeting; and
WHEREAS, it is necessary or desirable to enter into, amend or terminate
various agreements among Equitable, the Separate Accounts, the Fund, and
various other parties, pursuant to and contingent upon the proposed
reorganization;
NOW, THEREFORE, BE IT
RESOLVED, That the proposed reorganization of the Separate Accounts
(the "reorganization"), as set forth in the memorandum of Executive Vice
President Barth, is hereby authorized and approved; and
FURTHER RESOLVED, That all matters contemplated by the reorganization,
including but not limited to:
1) the combination of the Separate Accounts into one separate account
organized as a UIT,
2) organization of the Fund as a Massachusetts Business Trust and the
investment of the assets of the UIT in the Fund, and
3) the retention of administrative, recordkeeping and investment
responsibilities for the Contracts and the Fund by Equitable,
are hereby authorized and approved, subject to any necessary regulatory and
participant approval of the reorganization; and
FURTHER RESOLVED, That the Committees of the Separate Accounts will be
dissolved, effective with and contingent upon the reorganization; and
<PAGE>
-2-
FURTHER RESOLVED, That Deloitte Haskins & Sells shall continue as
independent auditors of the UIT; and
FURTHER RESOLVED, That authority is hereby granted to seek all
necessary regulatory approvals including, without limitation, the amendment of
the registration statements of the Separate Accounts and the filing of
exemptive applications and amendments thereto, and to take all further
necessary or desirable actions in connection with the reorganization and the
organization and registration of the Fund, and the retention of administration
of the Contracts by Equitable; and
FURTHER RESOLVED, That any Executive Vice President is hereby
authorized and directed, on behalf of Equitable, as initial shareholder of the
Fund, in connection with the Initial Special Shareholder's Meeting of the
Fund, to vote shares held by Equitable in the Fund, in accordance with
instructions given by the participants executing the proxies solicited by the
Separate Account Committees and, to the extent instructions are not given, to
vote the proxies as follows:
1) FOR the election of the members of the Board of Directors or
trustees of the Fund, the number of members to be 7;
2) FOR the combination of Separate Account C with and into Separate
Account A, and the modernization of investment policies generally,
including addition of provisions for hedging;
3) FOR the selection of Deloitte Haskins & Sells as the independent
auditors of the Fund for the year 1987; and
4) FOR approval of the Investment Advisory Agreement of the Fund as
described in the Proxy Statement; and
FURTHER RESOLVED, That any Executive Vice President is authorized, from
time to time, to vote the shares held by Equitable in the Fund, with or,
unless required by law, without participant instructions; and
FURTHER RESOLVED, That amendment or termination of the custody
agreements between the Separate Accounts and their custodians, the Investment
Management Agreements among Equitable, the Separate Accounts and Equitable
Investment Management Corporation and the Sales and Administration Agreements
between Equitable and the Separate Accounts, and/or the entry into new similar
agreements with substantially similar terms among the custodians, Equitable,
the UIT, Equitable Investment Management Corporation and the Fund, as
appropriate, contingent upon the reorganization, is hereby authorized and
approved; and
FURTHER RESOLVED, That the entry into Servicing Agreements between the
Equitable and the UIT and the Fund, as appropriate, contingent upon the
reorganization and subject to any necessary approval of the participants, is
hereby authorized and approved; and
FURTHER RESOLVED, That authority is hereby granted to take all actions
necessary or desirable to operate the UIT, including without limitation, the
creation of new divisions and the modification or elimination of divisions,
and to administer the Contracts.
RESTATED CHARTER
OF
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
Under
Sections 1206 and 7312
of the Insurance Law and
Section 807
of the Business Corporation Law
-------------------------------
The undersigned, being Chairman of the Board and Chief Executive
Officer and Secretary of The Equitable Life Assurance Society of the United
States, respectively, hereby certify:
1. The name of the corporation is The Equitable Life Assurance Society
of the United States.
2. The Charter of the corporation was filed by the County Clerk's
Office of the City and County of New York on July 26, 1859, pursuant to
Chapter 463 of the Laws of 1853.
3. The Charter of the corporation is hereby amended, as authorized by
Sections 1206 and 7312 of the Insurance Law of the State of New York (the
"Insurance Law") and Section 801 of the Business Corporation Law of the State
of New York, in connection with the reorganization of the corporation from a
mutual life insurance company to a stock life insurance company pursuant to
Section 7312 of the Insurance Law (a) to establish the stated capital of the
corporation in the amount of $2,000,000 and to authorize 2,000,000 Common
Shares, par value $1.00 per share, as the shares of the corporation, (b) to
change references in the Charter from "mutual" to "stock" and from
"policyholder" to "shareholder", (c) to revise the provisions relating to (i)
the quorum requirement for the transaction of business by the Board of
Directors, (ii) the classification of the Board of Directors, (iii) the
removal of Directors and the filling of vacancies in the Board of Directors
and (iv) the election of officers of the corporation, and (d) to make other
changes generally reorganizing and simplifying the Charter.
4. The text of the Charter, as amended by the filing of this Restated
Charter, is hereby restated to read in full as follows:
FIRST: The name of the corporation shall continue to be The
Equitable Life Assurance Society of the United States.
<PAGE>
SECOND: The principal office of the corporation shall be located in
the City of New York, County of New York, State of New York.
THIRD: (a) The business to be transacted by the corporation shall
be the kinds of insurance business specified in Paragraphs
1, 2, and 3 of Subsection (a) of Section 1113 of the
Insurance Law of the State of New York, as follows:
(1) "Life insurance" every insurance upon the lives of human
beings, and every insurance appertaining thereto,
including the granting of endowment benefits, additional
benefits in the event of death by accident, additional
benefits to safeguard the contract from lapse,
accelerated payments of part or all of the death benefit
or a special surrender value upon diagnosis (A) of
terminal illness defined as a life expectancy of twelve
months or less, or (B) of a medical condition requiring
extraordinary medical care or treatment regardless of
life expectancy, or provide a special surrender value,
upon total permanent disability of the insured, and
optional modes of settlement of proceeds. Amounts paid
the insurer for life insurance and proceeds applied
under optional modes of settlement or under dividend
options may be allocated by the insurer to one or more
separate accounts pursuant to section four thousand two
hundred forty of the Insurance Law of the State of New
York;
(2) "Annuities": all agreements to make periodical payments
for a period certain or where the making or continuance
of all or some of a series of such payments, or the
amount of any such payment, depends upon the continuance
of human life, except payments made under the authority
of paragraph (1) above. Amounts paid the insurer to
provide annuities and proceeds applied under optional
modes of settlement or under dividend options may be
allocated by the insurer to one or more separate
accounts pursuant to section four thousand two hundred
forty of the Insurance Law of the State of New York;
(3) "Accident and health insurance": (i) 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 workers' compensation law, except as specified in
item (ii) hereof; and (ii) non-cancelable disability
insurance, meaning
2
<PAGE>
insurance against disability resulting from sickness,
ailment or bodily injury (but excluding 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;
and any amendments to such paragraphs or provisions in
substitution therefor which may be hereafter adopted; such
other kind or kinds of business now or hereafter authorized
by the laws of the State of New York to stock life insurance
companies; and such other kind or kinds of business to the
extent necessarily or properly incidental to the kind or
kinds of insurance business which the corporation is
authorized to do.
(b) The corporation shall also have all other rights,
powers, and privileges now or hereafter authorized or
granted by the Insurance Law of the State of New York or any
other law or laws of the State of New York to stock life
insurance companies having power to do the kind or kinds of
business hereinabove referred to and any and all other
rights, powers, and privileges of a corporation now or
hereafter granted by the laws of the State of New York and
not prohibited to such stock life insurance companies.
FOURTH: The business of the corporation shall be managed under the
direction of the Board of Directors.
FIFTH: (a) The Board of Directors shall consist of not less that 13
(except for vacancies temporarily unfilled) not more than 36
Directors, as may be determined from time to time by a vote
of a majority of the entire Board of Directors. No decrease
in the number of Directors shall shorten the term of any
incumbent Director.
(b) The Board of Directors shall have the power to adopt
from time to time such by-laws, rules and regulations for
the governance of the officers, employees and agents and for
the management of affairs of the corporation, not
inconsistent with this Charter and the laws of the State of
New York, as may be expedient, and to amend or repeal such
by-laws, rules and regulations, except as provided in the
By-Laws.
(c) Any or all of the Directors may be removed at any time,
either for or without cause, by vote of the shareholders.
3
<PAGE>
(d) No Director shall be personally liable to the
corporation or any of its shareholders for damages for any
breach of duty as Director; provided, however, that the
foregoing provision shall not eliminate or limit (i) the
liability of a Director if a judgment or other final
adjudication adverse to him or her establishes that his or
her acts or omissions were in bad faith or involved
intentional misconduct or that he or she personally gained
in fact a financial profit or other advantage to which he or
she was not legally entitled, or were acts or omissions
which (a) he or she knew or reasonably should have known
violated the Insurance Law of the State of New York or (b)
violated a specific standard of care imposed on Directors
directly, and not by reference, by a provision of the
Insurance Law of the State of New York (or any regulations
promulgated thereunder) or (c) constituted a knowing
violation of (ii) the liability of a Director for any act or
omission prior to September 21, 1989.
SIXTH: (a) The Directors of the corporation shall be elected at
each annual meeting of shareholders of the corporation in
the manner prescribed by law. The annual meeting of
shareholders shall be held at such place, within or without
the State of New York, and at such time as may be fixed by
or under the By-Laws. Effective upon the effectiveness of
the corporation's reorganization pursuant to Section 7312 of
the Insurance Law of the State of New York, the Board of
Directors shall no longer be divided into three classes. At
each annual meeting of shareholders, directors shall be
elected to hold office for a term expiring at the next
annual meeting of shareholders.
(b) Newly created directorships resulting from an increase
in the number of Directors and vacancies occurring in the
Board of Directors shall be filled by vote of the
shareholders.
(c) Each Director shall be at least twenty-one years of age,
and at all times a majority of the Directors shall be
citizens and residents of the United States, and not less
than three of the Directors shall be residents of the State
of New York.
(d) The Board of Directors shall elect such officers as are
provided for in the By-Laws at the first meeting of the
Board of Directors following each annual meeting of the
shareholders. In the event of the failure to elect officers
at such meeting, officers may be elected at any regular or
special meeting of the Board of Directors. A vacancy in any
office may be filled by the Board of Directors at any
regular or special meeting.
4
<PAGE>
SEVENTH: The duration of the corporate existence of the corporation
shall be perpetual.
EIGHTH: The amount of the capital of the corporation shall be
$2,000,000 and shall consist of 2,000,000 Common Shares, par
value $1.00 per share.
5. The foregoing Amendment and Restatement of the Charter was
authorized by the affirmative vote of two-thirds of all votes cast on May 6,
1992 by policyholders entitled to vote on the plan of reorganization of the
corporation pursuant to Section 7312 of the Insurance Law.
IN WITNESS WHEREOF, the undersigned have signed this Certificate this
6th day of August, 1992.
/s/ Richard H. Jenrette
-----------------------
Chairman of the Board and
Chief Executive Officer
/s/ Molly K. Heines
-------------------
Secretary
5
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF
THE UNITED STATES
BY-LAWS
-------
As Amended July 22, 1992
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF
THE UNITED STATES
Table of Contents
-----------------
ARTICLE I SHAREHOLDERS 1
Section 1.1 Annual Meetings 1
Section 1.2 Notice of Meetings; Waiver 1
Section 1.3 Organization; Procedure 1
Section 1.4 Action Without a Meeting 2
ARTICLE II BOARD OF DIRECTORS 2
Section 2.1 Regular Meetings 2
Section 2.2 Special Meetings 2
Section 2.3 Independent Directors; Quorum 2
Section 2.4 Notice of Meetings 2
Section 2.5 Newly Created Directorships; Vacancies 3
Section 2.6 Presiding Officer 3
Section 2.7 Telephone Participation in Meetings; Action by
Consent Without Meeting 3
ARTICLE III COMMITTEES 3
Section 3.1 Committees 3
Section 3.2 Authority of Committees 4
Section 3.3 Quorum and Manner of Acting 5
Section 3.4 Removal of Members 5
Section 3.5 Vacancies 5
Section 3.6 Subcommittees 5
Section 3.7 Alternate Members of Committees 5
Section 3.8 Attendance of Other Directors 5
ARTICLE IV OFFICERS 5
Section 4.1 Chairman of the Board 5
Section 4.2 Vice-Chairman of the Board 6
Section 4.3 President 6
Section 4.4 Chief Executive Officer 6
Section 4.5 Secretary 6
Section 4.6 Other Officers 6
i
<PAGE>
ARTICLE V CAPITAL STOCK 7
Section 5.1 Transfers of Stock;
Registered Shareholders 7
Section 5.2 Transfer Agent and Registrar 7
ARTICLE VI EXECUTION OF INSTRUMENTS 7
Section 6.1 Execution of Instruments 7
Section 6.2 Facsimile Signature of
Former Officers 8
Section 6.3 Meaning of Term "Instruments" 8
ARTICLE VII GENERAL 8
Section 7.1 Reports of Committees 8
Section 7.2 Financial Statements
and Reports, etc. 8
Section 7.3 Independent Certified
Public Accountants 9
Section 7.4 Directors' Fees 9
Section 7.5 Indemnification of Directors,
Officers and Employees 9
Section 7.6 Waiver of Notice 9
Section 7.7 Company 10
ARTICLE VIII AMENDMENT OF BY-LAWS 10
Section 8.1 Amendment of By-laws 10
ii
BY-LAWS
OF
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
ARTICLE I
---------
SHAREHOLDERS
------------
Section 1.1. Annual Meetings. The annual meeting of the shareholders
of the Company for the election of Directors and for the transaction of such
other business as properly may come before such meeting shall be held at the
principal office of the Company on the third Wednesday in the month of May at
3:00 P.M. or at such other hour as may be fixed from time to time by
resolution of the Board of Directors and set forth in the notice or waiver of
notice of the meeting. [Business Corporation Law Sec. 602 (a), (b)]*
Section 1.2. Notice of Meetings; Waiver. The Secretary or any
Assistant Secretary shall cause written notice of the place, date and hour of
each meeting of the shareholders, and, in the case of a special meeting, the
purpose or purposes for which such meeting is called and by or at whose
direction such notice is being issued, to be given, personally or by first
class mail, not fewer than ten nor more than fifty days before the date of the
meeting to each shareholder of record entitled to vote at such meeting.
No notice of any meeting of shareholders need be given to any
shareholder who submits a signed waiver of notice, in person or by proxy,
whether before or after the meeting or who attends the meeting, in person or by
proxy, without protesting prior to its conclusion the lack of notice of such
meeting. [Business Corporation Law Sec. 605, 606]
Section 1.3. Organization; Procedure. At every meeting of
shareholders the presiding officer shall be the Chairman of the Board or, in
the event of his or her absence or disability, the President or, in his or her
absence, any officer of the Company designated by the shareholders. The order
of business and all other matters of procedure at every meeting of
shareholders may be determined by such presiding officer. The Secretary, or in
the event of his or her absence or disability, an Assistant Secretary or, in
his or her absence, an appointee of the presiding officer shall act as
Secretary of the meeting.
- ------------------------------------
* Citations are to the Business Corporation Law and Insurance Law of
the State of New York, as in effect on [date of adoption], and are
inserted for reference only, and do not constitute a part of the
By-Laws.
<PAGE>
Section 1.4. Action Without a Meeting. Any action required or permitted
to be taken by shareholders may be taken without a meeting on written consent
signed by the holders of all the outstanding shares entitled to vote on such
action. [Business Corporation Law Sec. 615]
ARTICLE II
----------
BOARD OF DIRECTORS
------------------
Section 2.1. Regular Meetings. Regular meetings of the Board of
Directors shall be held at the principal office of the Company on the third
Thursday of each month, except January and August, unless a change in place or
date is ordered by the Board of Directors. The first regular meeting of the
Board of Directors following the annual meeting of the shareholders of the
Company is designated as the Annual Meeting. [Business Corporation Law Sec. 710]
Section 2.2. Special Meetings. Special meetings of the Board of
Directors may be called at any time by the Chairman of the Board, the President,
or two directors. [Business Corporation Law Sec. 710]
Section 2.3. Independent Directors; Quorum. Not less than one-third
of the Board of Directors shall be persons who are not officers or employees
of the Company or of any entity controlling, controlled by, or under common
control with the Company and who are not beneficial owners of a controlling
interest in the voting stock of the Company or of any such entity.
A majority of the entire Board of Directors, including at least one
Director who is not an officer or employee of the Company or of any entity
controlling, controlled by, or under common control with the Company and who
is not a beneficial owner of a controlling interest in the voting stock of the
Company or of any such entity, shall constitute a quorum for the transaction
of business at any regular or special meeting of the Board of Directors,
except as otherwise prescribed by these By-Laws. Except as otherwise
prescribed by law, the Charter of the Company, or these By-Laws, the vote of a
majority of the Directors present at the time of the vote, if a quorum is
present at such time, shall be the act of the Board of Directors. A majority
of the Directors present, whether or not a quorum is present, may adjourn any
meeting from time to time and from place to place. As used in these By-Laws
"entire Board of Directors" means the total number of directors which the
Company would have if there were no vacancies. [Business Corporation Law Sec.
707, 708; Insurance Law Sec. 1202]
Section 2.4. Notice of Meetings. Notice of a regular meeting of the
Board of Directors need not be given. Notice of a change in the time or place
of a regular meeting of the Board of Directors shall be given to each Director
at least ten days in advance thereof in writing and by telephone or telecopy.
Notice of each special meeting of the Board of Directors shall be given to
each Director at least two days in advance thereof in
2
<PAGE>
writing and by telephone telecopy, and shall state in general terms the
purpose or purposes of the meeting. Any such notice for a regular or special
meeting not specifically required by this Section 2.4 to be given by telephone
or telecopy shall be deemed given to a director when sent by mail, telegram,
cablegram or radiogram addressed to such director at his or her address
furnished to the Secretary. Notice of an adjourned regular or special meeting
of the Board of Directors shall be given if and as determined by a majority of
the directors present at the time of the adjournment , whether or not a quorum
is present. [Business Corporation Law Sec. 711]
Section 2.5. Newly Created Directorships; Vacancies. Any newly created
directorships resulting from an increase in the number of Directors and
vacancies occurring in the Board of Directors for any reasons (including
vacancies resulting from the removal of a Director without cause) shall be
filled by the shareholders of the Company. [Business Corporation Law Sec. 705;
Insurance Law Sec. 4211]
Section 2.6. Presiding Officer. In the absence or inability to act of
the Chairman of the Board at any regular or special meeting of the Board of
Directors, any Vice-Chairman of the Board, or the President, as designated by
the chief executive officer, shall preside at such meeting. In the absence or
inability to act of all of such officers, the Board of Directors shall select
from among their number present a presiding officer.
Section 2.7. Telephone Participation in Meetings; Action by Consent
Without Meeting. Any Director may participate in a meeting of the Board or any
committee thereof by means of a conference telephone or similar communications
equipment by means of which all persons participating in the meeting can hear
each other at the same time, and such participation shall constitute presence
in person at such meeting; provided that one meeting of the Board each year
shall be held without the use of such conference telephone or similar
communication equipment. When time is of the essence, but not in lieu of a
regularly scheduled meeting of the Board of Directors, any action required or
permitted to be taken by the Board or any committee thereof may be taken
without a meeting if all members of the Board or such committee, as the case
may be, consent in writing to the adoption of a resolution authorizing the
action and such written consents and resolution are filed with the minutes of
the Board or such committee, as the case may be. [Business Corporation Law
Sec. 708].
ARTICLE III
-----------
COMMITTEES
----------
Section 3.1. Committees. (a) The Board of Directors, by resolution
adopted by a majority of the entire Board of Directors, may establish from
among its members an Executive Committee of the Board composed of five or more
Directors. Not less than one-third of the members of such committee shall be
persons who are not officers or employees of the Company or of any entity
controlling, controlled by, or under common
3
<PAGE>
control with the Company and who are not beneficial owners of a controlling
interest in the voting stock of the Company or of any such entity.
(b) The Board of Directors, by resolution adopted by a majority of
the entire Board of Directors, shall establish from among its members one or
more committees with authority to discharge the responsibilities enumerated in
this subsection (b). Each such committee shall be composed of five or more
Directors and shall be comprised solely of Directors who are not officers or
employees of the Company or of any entity controlling, controlled by, or under
common control with the Company and who are not beneficial owners of a
controlling interest in the voting stock of the Company or of any such entity.
Such committee or committees shall have responsibility for:
(i) Recommending to the Board of Directors candidates for
nomination for election by the shareholders to the Board of
Directors;
(ii) Evaluating the performance of officers deemed by any such
committee to be principal officers of the Company and
recommending their selection and compensation;
(iii) Recommending the selection of independent certified public
accountants;
(iv) Reviewing the scope and results of the independent audit
and of any internal audit; and
(v) Reviewing the Company's financial condition.
(c) The Board of Directors, by resolution adopted from time to time by
a majority of the entire Board of Directors, may establish from among its
members one or more additional committees of the Board, each composed of five or
more Directors. Not less than one-third of the members of each such committee
shall be persons who are not officers or employees of the Company or of any
entity controlling, controlled by, or under common control with the Company and
who are not beneficial owners of a controlling interest in the voting stock of
the Company or of any such entity. [Business Corporation Law Sec. 712; Insurance
Law Sec. 1202]
Section 3.2. Authority of Committees. Each committee shall have all the
authority of the Board of Directors, to the extent permitted by law and provided
in the resolution creating such committee, provided, however, that no committee
shall have the authority of the Board of Directors contained in Sections 1.1,
1.3, 2.1, 3.1, 3.2, 3.3, 3.4, 3.5, 3.7, 3.8, 4.1, 4.2, 4.3, 4.4. 4.5, 4.6, 5.1,
5.2, 7.1, 7.3, 7.4, 7.5 or 8.1 or these By-Laws, nor shall any committee have
authority to amend or repeal any resolution of the Board of Directors. [Business
Corporation Law Sec. 712]
4
<PAGE>
Section 3.3. Quorum and Manner of Acting. A majority of the total
membership that a committee would have if there were no vacancies (including
at least one Director who is not an officer or employee of the Company or of
any entity controlling, controlled by, or under common control with the
Company and who is not a beneficial owner of a controlling interest in the
voting stock of the Company or of any such entity) shall constitute a quorum
for the transaction of business. The vote of a majority of the members present
at the time of the vote, if a quorum is present at such time, shall be the act
of such committee. Except as otherwise prescribed by these By-Laws or by the
Board of Directors, each committee may elect a chairman from among its
members, fix the times and dates of its meeting, and adopt other rules of
procedure.
Section 3.4. Removal of Members. Any member (and any alternate member)
of a committee may be removed by vote of a majority of the entire Board of
Directors.
Section 3.5. Vacancies. Any vacancy occurring in any committee for any
reason may be filled by vote of a majority of the entire Board of Directors.
Section 3.6. Subcommittees. Any committee may appoint one or more
subcommittees from its members. Any such subcommittee may be charged with the
duty of considering and reporting to the appointing committee on any matter
within the responsibility of the committee appointing such subcommittee but
cannot act in place of the appointing committee.
Section 3.7. Alternate Members of Committees. The Board of Directors
may designate, by resolution adopted by a majority of the entire Board of
Directors, one or more directors as alternate members of any committee who may
replace any absent member or members at a meeting of such committee. [Business
Corporation Law Sec. 712]
Section 3.8. Attendance of Other Directors. Except as otherwise
prescribed by the Board of Directors, members of the Board of Directors may
attend any meeting of any committee.
ARTICLE IV
----------
OFFICERS
--------
Section 4.1. Chairman of the Board. The Board of Directors may at a
regular or special meeting elect from among their number a Chairman of the
Board who shall hold office, at the pleasure of the Board of Directors, until
the next Annual Meeting.
The Chairman of the Board shall preside at all meetings of the Board
of Directors and also shall exercise such powers and perform such duties as
may be delegated or assigned to or required of him or her by these By-Laws or
by or pursuant to authorization of the Board of Directors.
5
<PAGE>
Section 4.2. Vice-Chairman of the Board. The Board of Directors may
at a regular or special meeting elect from among their number one or more
Vice-Chairmen of the Board who shall hold office, at the pleasure of the Board
of Directors, until the next Annual Meeting.
The Vice-Chairman of the Board shall exercise such powers and perform
such duties as may be delegated or assigned to or required of them by these
By-Laws or by or pursuant to authorization of the Board of Directors or by the
Chairman of the Board.
Section 4.3. President. The Board of Directors shall at a regular or
special meeting elect from among their number a President who shall hold
office, at the pleasure of the Board of Directors, until the next Annual
Meeting and until the election of his or her successor.
The President shall exercise such powers and perform such duties as
may be delegated or assigned to or required of him or her by these By-Laws or
by or pursuant to authorization of the Board of Directors or (if the President
is not the chief executive officer) by the chief executive officer. The
President and Secretary may not be the same person.
Section 4.4. Chief Executive Officer. The Chairman of the Board or
the President shall be the chief executive officer of the Company as the Board
of Directors from time to time shall determine, and the Board of Directors
from time to time may determine who shall act as chief executive officer in
the absence or inability to act of the then incumbent.
Subject to the control of the Board of Directors, and to the extent
not otherwise prescribed by these By-Laws, the chief executive officer shall
have plenary power over all departments, officers, employees, and agents of
the Company, and shall be responsible for the general management and direction
of all the business and affairs of the Company.
Section 4.5. Secretary. The Board of Directors shall at a regular or
special meeting elect a Secretary who shall hold office, at the pleasure of
the Board of Directors, until the next Annual Meeting and until the election
of his or her successor.
The Secretary shall issue notices of the meeting of the shareholders
and the Board of Directors and its committees, shall keep the minutes of the
meetings of the shareholders and the Board of Directors and its committees and
shall have custody of the Company's corporate seal and records. The Secretary
shall exercise such powers and perform such other duties as relate to the
office of the Secretary, and also such powers and duties as may be delegated
or assigned to or required of him or her by or pursuant to authorization of
the Board of Directors or by the Chairman of the Board or (if the Chairman of
the Board is not the chief executive officer) the chief executive officer.
Section 4.6. Other Offices. The Board of Directors may elect such other
officers as may be deemed necessary for the conduct of the business of the
Company. Each such
6
<PAGE>
officer elected by the Board of Directors shall exercise such powers and
perform such duties as may be delegated or assigned to or required of him or
her by the Board of Directors of the chief executive officer, and shall hold
office until the next Annual Meeting, but at any time may be suspended by the
chief executive officer or by the Board of Directors, or removed by the Board
of Directors. [Business Corporation Law Sec. 715, 716]
ARTICLE V
---------
CAPITAL STOCK
-------------
Section 5.1. Transfers of Stock; Registered Shareholders. (a) Shares
of stock of the Company shall be transferable only upon the books of the
Company kept for such purpose upon surrender to the Company or its transfer
agent or agents of a certificate (unless such shares shall be uncertificated
shares) representing shares, duly endorsed or accompanied by appropriate
evidence of succession, assignment or authority to transfer. Within a
reasonable time after the transfer of uncertificated shares, the Company shall
send to the registered owner thereof a written notice containing the
information required to be set forth or stated on certificates.
(b) Except as otherwise prescribed by law, the Board of Directors may
make such rules, regulations and conditions as it may deem expedient
concerning the subscription for, issue, transfer and registration of, shares
of stock. Except as otherwise prescribed by law, the Company, prior to due
presentment for registration of transfer, may treat the registered owner of
shares as the person exclusively entitled to vote, to receive notification,
and otherwise to exercise all the rights and powers of an owner. [Business
Corporation Law Sec.508(d), (f); Insurance Law Sec. 4203]
Section 5.2. Transfer Agent and Registrar. The Board of Directors may
appoint one or more transfer agents and one or more registrars, and may
require all certificates representing shares to bear the signature of any such
transfer agents or registrars. The same person may act as transfer agent and
registrar for the Company.
ARTICLE VI
----------
EXECUTION OF INSTRUMENTS
------------------------
Section 6.1. Execution of Instruments. (a) Any one of the following,
namely, the Chairman of the Board, any Vice-Chairman of the Board, the
President, any Vice-President (including a Deputy or Assistant Vice-President
or any other Vice-President designated by a number or a word or words added
before or after the title Vice-President to indicate his or her rank or
responsibilities), the Secretary, or the Treasurer, or any officer, employee
or agent designated by or pursuant to authorization of the Board of Directors
or any committee created under these By-Laws, shall have power in the ordinary
course of business to enter into contracts or execute instruments on behalf of
the
7
<PAGE>
Company (other than checks, drafts and other orders drawn on funds of the
Company deposited in its name in banks) and to affix the corporate seal. If
any such instrument is to be executed on behalf of the Company by more than
one person, any two or more of the foregoing or any one or more of the
foregoing with an Assistant Secretary or an Assistant Treasurer shall have
power to execute such instrument and affix the corporate seal.
(b) The signature of any officer may be in facsimile on any such
instrument if it shall also bear the actual signature, or personally inscribed
initials, of an officer, employee or agent empowered by or pursuant to the
first sentence of this Section to execute such instrument, provided that the
Board of Directors or a committee thereof may authorize the issuance of
insurance contracts and annuity contracts on behalf of the Company bearing the
facsimile signature of an officer without the actual signature or personally
inscribed initials of any person.
(c) All checks, drafts and other orders drawn on funds of the Company
deposited in its name in banks shall be signed only pursuant to authorization
of and in accordance with rules prescribed from time to time by the Board of
Directors or a committee thereof , which rules may permit the use of facsimile
signatures.
Section 6.2. Facsimile Signatures of Former Officers. If any officer
whose facsimile signature has been placed upon any instrument shall have
ceased to be such officer before such instrument is issued, it may be issued
with the same effect as if he or she had been such officer at the time of its
issue.
Section 6.3. Meaning of Term "Instruments". As used in this Article
VI, the term "instruments" includes, but is not limited to, contracts and
agreements, checks, drafts and other orders for the payment of money,
transfers of bonds, stocks, notes and other securities, and powers of
attorney, deeds, leases, releases of mortgages, satisfactions and all other
instruments entitled to be recorded in any jurisdiction.
ARTICLE VII
-----------
GENERAL
-------
Section 7.1. Reports of Committees. Reports of any committee charged
with responsibility for supervising or making investments shall be submitted
at the next meeting of the Board of Directors. Reports of other committees of
the Board of Directors shall be submitted at a regular meeting of the Board of
Directors as soon as practicable, unless otherwise directed by the Board of
Directors.
Section 7.2. Financial Statements and Reports, etc. At the meeting of
the Board of Directors falling on the third Thursday of February, the Annual
Statement and audited financial statements of the Company for the preceding
year, together with an opinion with respect to such audited financial
statements by such independent certified public accountants as may have been
selected by the Board of Directors, shall be submitted.
8
<PAGE>
Interim reports on the financial condition of the Company shall be submitted
at a regular meeting of the Board of Directors as soon as practicable
following the end of each of the first three quarterly financial periods in
each year. All such financial statements and interim reports shall be filed
with the records of the Board of Directors and a note of such submission shall
be spread upon the minutes.
Section 7.3. Independent Certified Public Accountants. The books and
accounts of the Company shall be audited throughout each year by such
independent certified public accountants as shall be selected by the Board of
Directors.
Section 7.4. Directors' Fees. The Directors shall be paid such fees for
their services in any capacity as may have been authorized by the Board of
Directors. No Director who is a salaried officer of the Company shall receive
any fees for serving as a Director of the Company. [Business Corporation Law
Sec. 713(e)]
Section 7.5. Indemnification of Directors, Officers and Employees. (a)
To the extent permitted by the law of the State of New York and subject to all
applicable requirements thereof:
(i) any person made or threatened to be made a party to any
action or proceeding, whether civil or criminal, by
reason of the fact that he or she, or his or her
testator or intestate, is or was a director, officer or
employee of the Company shall be indemnified by the
Company;
(ii) any person made or threatened to be made a party to any
action or proceeding , whether civil or criminal, by
reason of the fact that he or she, or his or her
testator or intestate serves or served any other
organization in any capacity at the request of the
Company may be indemnified by the Company; and
(iii) the related expenses of any such person in any of said
categories may be advanced by the Company.
(b) To the extent permitted by the law of the State of New York, the
Company may provide for further indemnification or advancement of expenses by
resolution of shareholders of the Company or the Board of Directors, by
amendment of these By-Laws, or by agreement. [Business Corporation Law Sec.
721-726; Insurance Law Sec. 1216]
Section 7.6. Waiver of Notice. Notice of any meeting of the Board of
Directors or any committee thereof shall not be required to be given to any
Director who submits a signed waiver of notice whether before or after the
meeting, or who attends the meeting without protesting, prior to or at its
commencement, the lack of notice to him. [Business Corporation Law Sec. 711(c)]
9
<PAGE>
Section 7.7. Company. The term "Company" in these By-Laws means The
Equitable Life Assurance Society of the United States.
ARTICLE VIII
------------
AMENDMENT OF BY-LAWS
--------------------
Section 8.1. Amendment of By-Laws. Subject to Section 1210 of the
Insurance Law of the State of New York, these By-Laws (other than Sections 1.4,
2.2, 2.3, 2.4, 2.5, 3.1, 3.2 and 8.1 (the "Governance By-Laws") and all By-Laws
adopted by vote of the shareholders of the Company) may be amended or repealed
and new By-Laws, consistent with the Governance By-Laws and with all By-Laws
adopted by the shareholders of the Company, may be adopted at a regular or
special meeting of the Board of Directors, provided that a notice, given not
less than ten days before the meeting in writing and by telephone or telecopy,
shall set forth the amendment or repeal or new By-Laws proposed to be acted upon
at such meeting. [Business Corporation Law Sec. 601; Insurance Law Sec. 1210]
10
CERTIFICATE OF AMENDMENT OF THE RESTATED CHARTER OF
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Under Section 1206 of the Insurance Law and
Section 805 of the Business Corporation Law of the State of New York
--------------------------------------------------------------------
We, the undersigned, Joseph J. Melone, President and Chief Executive
Officer and Molly K. Heines, Vice President and Secretary, hereby certify:
(1). The name of the corporation is The Equitable Life
Assurance Society of the United States (the "Corporation").
(2). The Corporation's Charter was filed in the office of the
Insurance Department of the State of New York on May 10, 1859.
(3). The Charter of the Corporation, as amended and restated by the
Restated Charter effective July 22, 1993, is hereby further amended
to increase the capital of the Corporation from $2,000,000 to
$2,500,000 by increasing the par value of a share of the Common
Shares of the Corporation from $1.00 to $1.25. Article VIII of the
Charter which contains the statement with respect to the capital of
the Corporation, is hereby amended in its entirety to read as
follows:
ARTICLE VIII
The amount of the capital of the corporation shall be
$2,500,000, and shall consist of 2,000,000 Common Shares, par value
$1.25 per share.
(4) The aforesaid amendment of the Charter of the Corporation was
duly approved by a majority vote of the Board of Directors of the
Corporation at a meeting duly called and held on November 18, 1993
and was duly consented to in writing by the holder of all of the
outstanding shares of the Corporation on the same date.
IN WITNESS WHEREOF, the undersigned have signed this certificate the
18th day of November 1993, and affirm that the statements made herein are true
under the penalties of perjury.
/s/ Joseph J. Melone
--------------------
Joseph J. Melone
President & Chief Executive Officer
/s/ Molly K. Heines
-------------------
Molly K. Heines
Vice President & Secretary
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 6 to the Registration
Statement No. 33-47949 on Form N-4 (the "Registration Statement") of our report
dated February 7, 1996, relating to the financial statements of The Equitable
Life Assurance Society of the United States Separate Account A, and our report
dated February 7, 1996, relating to the consolidated financial statements of The
Equitable Life Assurance Society of the United States, which reports appear in
such Statement of Additional Information, and to the incorporation by reference
of our reports into the Prospectus Supplement which constitutes part of this
Registration Statement. We also consent to the references to us under the
headings "Custodian and Independent Accountants" in such Statement of Additional
Information and "Financial Statements" in such Prospectus Supplement.
PRICE WATERHOUSE LLP
New York, New York
April 24, 1996
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Claude Bebear
-----------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/James M. Benson
--------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Christopher Brockson
-------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Francoise Colloc'h
--------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Henri de Castries
--------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Joseph L. Dionne
-----------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/William T. Esrey
--------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Jean-Rene Fourtou
--------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Norman C. Francis
---------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Donald J.Greene
-------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Anthony J. Hamilton
-------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/John T. Hartley
----------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/John H.F. Haskell, Jr.
--------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/W. Edwin Jarmain
-----------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/G. Donald Johnston, Jr.
--------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996
/s/Winthrop Knowlton
------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/George T. Lowy
-----------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/William T. McCaffrey
-----------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Joseph J. Melone
------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Didier Pineau-Valencienne
----------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/George J. Sella, Jr.
--------------------------
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Gordon G. Dinsmore, Samuel B. Shlesinger, James D. Goodwin, Pauline
Sherman, Michael F. McNelis, Naomi J. Weinstein, Charles Wilder, Mildred
Oliver and each of them (with full power to each of them to act alone), his or
her true and lawful attorney-in-fact and agent, with full power of
substitution to each, for him or her and on his or her behalf and in his or
her name, place and stead, to execute and file any of the documents referred
to below relating to registrations under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing
for allocation of amounts to Separate Accounts of the Company, and related
units or interests in Separate Accounts: registration statements on any form
or forms under the Securities Act of 1933 and the Investment Company Act of
1940 and annual reports on any form or forms under the Securities Exchange Act
of 1934, and any and all amendments and supplements thereto, with all exhibits
and all instruments necessary or appropriate in connection therewith, each of
said attorneys-in-fact and agents and his, her or their substitutes being
empowered to act with or without the others or other, and to have full power
and authority to do or cause to be done in the name and on behalf of the
undersigned each and every act and thing requisite and necessary or
appropriate with respect thereto to be done in and about the premises in order
to effectuate the same, as fully to all intents and purposes as the
undersigned might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them, may do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 15th day of February, 1996.
/s/Dave H. Williams
------------------------
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 02
<NAME> Common Stock Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 2,730,574,741
<INVESTMENTS-AT-VALUE> 3,178,176,762
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 9,626,077
<TOTAL-ASSETS> 3,187,802,839
<PAYABLE-FOR-SECURITIES> 9,392,501
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 424,968
<TOTAL-LIABILITIES> 9,817,469
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 3,177,985,370
<DIVIDEND-INCOME> 38,701,881
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 35,919,777
<NET-INVESTMENT-INCOME> 2,782,104
<REALIZED-GAINS-CURRENT> 206,999,733
<APPREC-INCREASE-CURRENT> 498,084,127
<NET-CHANGE-FROM-OPS> 707,865,964
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,782,104
<DISTRIBUTIONS-OF-GAINS> 705,083,860
<DISTRIBUTIONS-OTHER> 255,083,712
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 962,747,086
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 03
<NAME> Money Market Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 79,144,981
<INVESTMENTS-AT-VALUE> 78,776,275
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,375,168
<TOTAL-ASSETS> 80,151,443
<PAYABLE-FOR-SECURITIES> 1,370,908
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 523,239
<TOTAL-LIABILITIES> 1,894,147
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 78,257,296
<DIVIDEND-INCOME> 3,760,240
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 937,659
<NET-INVESTMENT-INCOME> 2,822,581
<REALIZED-GAINS-CURRENT> 111,769
<APPREC-INCREASE-CURRENT> 244,984
<NET-CHANGE-FROM-OPS> 3,179,334
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,822,581
<DISTRIBUTIONS-OF-GAINS> 356,753
<DISTRIBUTIONS-OTHER> (13,768,151)
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (10,649,638)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 04
<NAME> Aggressive Stock Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1,907,367,665
<INVESTMENTS-AT-VALUE> 2,098,196,591
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 6,231,567
<TOTAL-ASSETS> 2,104,428,158
<PAYABLE-FOR-SECURITIES> 6,155,114
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 863,687
<TOTAL-LIABILITIES> 7,018,801
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 2,097,409,357
<DIVIDEND-INCOME> 4,874,525
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 21,951,384
<NET-INVESTMENT-INCOME> (17,076,859)
<REALIZED-GAINS-CURRENT> 274,491,290
<APPREC-INCREASE-CURRENT> 201,133,502
<NET-CHANGE-FROM-OPS> 458,547,933
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (17,076,859)
<DISTRIBUTIONS-OF-GAINS> 475,624,792
<DISTRIBUTIONS-OTHER> 197,400,113
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 655,244,054
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 05
<NAME> Balanced Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1,000,920,237
<INVESTMENTS-AT-VALUE> 1,042,706,057
<RECEIVABLES> 45,138
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 47,201
<TOTAL-ASSETS> 1,042,798,396
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 684,668
<TOTAL-LIABILITIES> 684,668
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,042,113,728
<DIVIDEND-INCOME> 32,315,135
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 13,155,252
<NET-INVESTMENT-INCOME> 19,159,883
<REALIZED-GAINS-CURRENT> 36,369,212
<APPREC-INCREASE-CURRENT> 107,611,597
<NET-CHANGE-FROM-OPS> 163,140,692
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 19,159,883
<DISTRIBUTIONS-OF-GAINS> 143,980,809
<DISTRIBUTIONS-OTHER> (39,542,968)
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 122,958,080
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 06
<NAME> High Yield Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 32,825,077
<INVESTMENTS-AT-VALUE> 33,348,092
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 314,989
<TOTAL-ASSETS> 33,663,081
<PAYABLE-FOR-SECURITIES> 314,990
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 296,772
<TOTAL-LIABILITIES> 611,762
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 33,051,319
<DIVIDEND-INCOME> 2,579,699
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 300,991
<NET-INVESTMENT-INCOME> 2,278,708
<REALIZED-GAINS-CURRENT> (142,069)
<APPREC-INCREASE-CURRENT> 1,530,565
<NET-CHANGE-FROM-OPS> 3,667,204
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,278,708
<DISTRIBUTIONS-OF-GAINS> 1,388,496
<DISTRIBUTIONS-OTHER> 15,861,113
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 19,516,480
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 07
<NAME> Global Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 292,617,275
<INVESTMENTS-AT-VALUE> 315,707,990
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,151,580
<TOTAL-ASSETS> 317,859,570
<PAYABLE-FOR-SECURITIES> 2,151,576
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<TOTAL-LIABILITIES> 2,852,084
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<SHARES-COMMON-PRIOR> 0
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<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 315,007,486
<DIVIDEND-INCOME> 4,379,867
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<EXPENSES-NET> 3,209,543
<NET-INVESTMENT-INCOME> 1,170,324
<REALIZED-GAINS-CURRENT> 10,274,241
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,170,324
<DISTRIBUTIONS-OF-GAINS> 39,368,572
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<NET-CHANGE-IN-ASSETS> 153,798,493
<ACCUMULATED-NII-PRIOR> 0
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 08
<NAME> Conservative Investors Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 66,943,785
<INVESTMENTS-AT-VALUE> 71,597,071
<RECEIVABLES> 0
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<OTHER-ITEMS-ASSETS> 406,113
<TOTAL-ASSETS> 72,003,184
<PAYABLE-FOR-SECURITIES> 406,116
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<TOTAL-LIABILITIES> 976,973
<SENIOR-EQUITY> 0
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<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
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<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 71,026,211
<DIVIDEND-INCOME> 3,056,206
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 729,377
<NET-INVESTMENT-INCOME> 2,326,829
<REALIZED-GAINS-CURRENT> 402,260
<APPREC-INCREASE-CURRENT> 6,622,303
<NET-CHANGE-FROM-OPS> 9,351,392
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,326,829
<DISTRIBUTIONS-OF-GAINS> 7,024,563
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<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 31,276,954
<ACCUMULATED-NII-PRIOR> 0
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<OVERDISTRIB-NII-PRIOR> 0
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 09
<NAME> Growth Investors Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 275,629,206
<INVESTMENTS-AT-VALUE> 307,104,188
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 3,694,931
<TOTAL-ASSETS> 310,799,119
<PAYABLE-FOR-SECURITIES> 3,694,935
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<OTHER-ITEMS-LIABILITIES> 782,992
<TOTAL-LIABILITIES> 4,477,927
<SENIOR-EQUITY> 0
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<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 306,321,192
<DIVIDEND-INCOME> 7,361,114
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 2,730,233
<NET-INVESTMENT-INCOME> 4,630,881
<REALIZED-GAINS-CURRENT> 4,190,451
<APPREC-INCREASE-CURRENT> 35,365,665
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,630,881
<DISTRIBUTIONS-OF-GAINS> 39,556,116
<DISTRIBUTIONS-OTHER> 144,420,024
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<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 188,537,831
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<GROSS-EXPENSE> 0
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<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
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<PER-SHARE-DIVIDEND> 0
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<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 12
<NAME> Intermed Gov Securities Div
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 22,292,402
<INVESTMENTS-AT-VALUE> 22,705,464
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 213,032
<TOTAL-ASSETS> 22,918,496
<PAYABLE-FOR-SECURITIES> 212,486
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 382,215
<TOTAL-LIABILITIES> 594,701
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
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<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 22,323,795
<DIVIDEND-INCOME> 1,062,712
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<OTHER-INCOME> 0
<EXPENSES-NET> 202,515
<NET-INVESTMENT-INCOME> 860,197
<REALIZED-GAINS-CURRENT> (262,021)
<APPREC-INCREASE-CURRENT> 1,263,426
<NET-CHANGE-FROM-OPS> 1,861,602
<EQUALIZATION> 0
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<DISTRIBUTIONS-OF-GAINS> 1,001,405
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<NET-CHANGE-IN-ASSETS> 10,684,460
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
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<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 13
<NAME> Growth & Income Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 63,444,279
<INVESTMENTS-AT-VALUE> 70,969,558
<RECEIVABLES> 0
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<OTHER-ITEMS-ASSETS> 862,816
<TOTAL-ASSETS> 71,832,374
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<TOTAL-LIABILITIES> 1,412,095
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
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<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 70,420,279
<DIVIDEND-INCOME> 1,382,201
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 591,270
<NET-INVESTMENT-INCOME> 790,931
<REALIZED-GAINS-CURRENT> 135,257
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<NET-CHANGE-FROM-OPS> 8,899,835
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<DISTRIBUTIONS-OF-INCOME> 790,931
<DISTRIBUTIONS-OF-GAINS> 8,108,904
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<NET-CHANGE-IN-ASSETS> 48,275,307
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<GROSS-EXPENSE> 0
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<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
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<PER-SHARE-DIVIDEND> 0
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<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 14
<NAME> Quality Bond Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 16,440,543
<INVESTMENTS-AT-VALUE> 17,177,878
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 250,726
<TOTAL-ASSETS> 17,428,604
<PAYABLE-FOR-SECURITIES> 250,727
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 132,004
<TOTAL-LIABILITIES> 382,731
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 17,045,873
<DIVIDEND-INCOME> 716,416
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 143,778
<NET-INVESTMENT-INCOME> 572,638
<REALIZED-GAINS-CURRENT> (14,461)
<APPREC-INCREASE-CURRENT> 952,860
<NET-CHANGE-FROM-OPS> 1,511,037
<EQUALIZATION> 0
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<DISTRIBUTIONS-OF-GAINS> 938,399
<DISTRIBUTIONS-OTHER> 10,195,669
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<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 11,706,381
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
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<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
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<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 15
<NAME> Equity Index
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Apr-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 84,114,345
<INVESTMENTS-AT-VALUE> 88,408,584
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,610,118
<TOTAL-ASSETS> 90,018,702
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<SENIOR-EQUITY> 0
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<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 88,102,110
<DIVIDEND-INCOME> 820,315
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<OTHER-INCOME> 0
<EXPENSES-NET> 459,747
<NET-INVESTMENT-INCOME> 360,568
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<APPREC-INCREASE-CURRENT> 4,368,831
<NET-CHANGE-FROM-OPS> 8,928,141
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 16
<NAME> International Fund Division
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Apr-01-1995
<PERIOD-END> Dec-31-1995
<EXCHANGE-RATE> 1
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<TOTAL-ASSETS> 15,321,647
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<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 15,101,097
<DIVIDEND-INCOME> 176,168
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<OTHER-INCOME> 0
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<NET-INVESTMENT-INCOME> 149,427
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<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
