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. 7 |X|
---
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 |_|
Amendment No. 59 |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)
1290 Avenue of the Americas, New York, New York 10104
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code: (212) 554-1234
-------------------------
ANTHONY A. DREYSPOOL
VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL
The Equitable Life Assurance Society of the United States
1290 Avenue of the Americas, New York, New York 10104
(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, 1997 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 1996 was filed
on February 27, 1997.
<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 Reorganization,
and History 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>
MOMENTUM
EMPLOYER-SPONSORED RETIREMENT PROGRAM
PROSPECTUS, DATED MAY 1, 1997
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 deferred variable annuity contract (CONTRACT)
offered by The Equitable Life Assurance Society of the United States (EQUITABLE
LIFE). The MOMENTUM Contract (MOMENTUM) is designed to fund defined contribution
plans. Contributions in the MOMENTUM Contract accumulate on a Federal income
tax-deferred basis, and at a future date you can receive a stream of periodic
payments, including a fixed or variable annuity.
MOMENTUM Employer-Sponsored Retirement Program includes 401(a) and 401(k) plans
as described in this prospectus. Employers sponsoring such plans and trustees of
such plans (PLAN TRUSTEES) can participate in MOMENTUM 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).
Employers and Plan Trustees may choose from investment options (INVESTMENT
OPTIONS) available under the Contract. 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 fourteen variable investment
funds (INVESTMENT FUNDS) of Separate Account A (SEPARATE ACCOUNT):
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
o Alliance Money Market o Alliance Equity Index Alliance Asset Allocation Series:
o Alliance Intermediate o Alliance Common Stock o Alliance Conservative Investors
Government Securities o Alliance Global o Alliance Balanced
o Alliance Quality Bond o Alliance International o Alliance Growth Investors
o Alliance High Yield o Alliance Aggressive Stock
o Alliance Growth & Income o Alliance Small Cap Growth
</TABLE>
We invest each Investment Fund in Class IA shares of a corresponding portfolio
(PORTFOLIO) of The Hudson River Trust (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 experience of
the Portfolios. The prospectus for the Hudson River Trust, directly following
this prospectus, describes the investment objectives, policies and risks of the
Portfolios. The Alliance Small Cap Growth Fund will be available in early June,
1997.
Participants may choose from a variety of payout options. If an annuity is
selected as the retirement payout option, variable and fixed annuities are
available. Fixed annuities are funded through Equitable Life's general account.
Variable payments will be funded through your choice of Investment Funds.
This prospectus provides information about MOMENTUM that prospective
participants 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 Trust, which you 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, 1997, 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 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.
888-1128
May 1, 1997 Cat. No. 127299
- -------------------------------------------------------------------------------
Copyright 1997
The Equitable Life Assurance Society of the United States, New York, New York,
10104.
All rights reserved.
<PAGE>
- -------------------------------------------------------------------------------
PROSPECTUS TABLE OF CONTENTS
- -------------------------------------------------------------------------------
GENERAL TERMS PAGE 3
PART 1: SUMMARY PAGE 5
Equitable Life 5
Investment Options 5
Selecting Investment Options 6
Contributions 6
Transfers 6
Services We Provide 6
Distribution Options and Death
Benefit 7
Withdrawals and Termination 7
Plan Loans 8
Taxes 8
Deductions and Charges 8
Fee Table and Examples 9
PART 2: SEPARATE ACCOUNT A AND
ITS INVESTMENT FUNDS PAGE 12
Separate Account A 12
The Hudson River Trust 12
The Trust's Investment Adviser 13
Investment Policies and Objectives of
the Trust's Portfolios 13
PART 3: INVESTMENT PERFORMANCE PAGE 15
Investment Fund Performance 15
Standardized Computation of
Performance for MOMENTUM 19
PART 4: THE GUARANTEED INTEREST
ACCOUNT PAGE 21
PART 5: PROVISIONS OF THE CONTRACT
AND SERVICES WE PROVIDE PAGE 22
Understanding the MOMENTUM
Program 22
Employer's Responsibilities 22
Adopting the MOMENTUM Program 23
The MOMENTUM Contract 23
Selecting Investment Options
(Employers and Plan Trustees Only) 23
Contributions 24
Retirement Account Value 24
Transfers 25
Investment Simplifier: Automatic
Transfer Options 25
Plan Loans 26
Withdrawals and Termination 27
Forfeitures 27
Distribution Options 27
Annuity Distribution Options 28
Electing an Annuity Distribution
Option 28
Minimum Distributions (Automatic
Minimum Withdrawal Option) --
Over Age 70 1/2 28
Death Benefit 29
Payments of Proceeds 30
Plan Recordkeeping Services 30
PART 6: DEDUCTIONS AND
CHARGES PAGE 31
Trust Charges to Portfolios 31
Charges for State Premium and
Other Applicable Taxes 31
Limitation on Charges 31
Charges to Investment Funds 32
Quarterly Administrative Charge 32
Charge for Plan Recordkeeping
Services 32
Contingent Withdrawal Charge 33
Plan Loan Charges 34
Special Circumstances 34
PART 7: VOTING RIGHTS PAGE 35
Trust Voting Rights 35
Separate Account Voting Rights 35
Voting Rights of Others 35
Changes in Applicable Law 35
PART 8: FEDERAL TAX AND
ERISA MATTERS PAGE 36
Tax Aspects of Contributions to a Plan 36
Tax Aspects of Distributions from a Plan 37
Certain Rules Applicable to Plan Loans 40
Impact of Taxes to Equitable Life 40
Certain Rules Applicable to Plans
Designed to Comply with Section
404(c) of ERISA 41
STATEMENT OF ADDITIONAL
INFORMATION
TABLE OF CONTENTS PAGE 42
HOW TO OBTAIN THE MOMENTUM
STATEMENT OF ADDITIONAL
INFORMATION PAGE 42
2
<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.
ACCUMULATION UNIT--Contributions that are invested in an Investment Fund
purchase Accumulation Units in that Investment 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--Generally, our Business Day is any day on which Equitable Life is
open and the New York Stock Exchange is open for trading. We are closed on
national business holidays 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 Alliance 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 Original 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 Securities Act of 1974, as amended.
GUARANTEED INTEREST ACCOUNT--The Investment Option that pays interest at
guaranteed fixed rates and is part of our general account.
INVESTMENT FUNDS--In the MOMENTUM Contract, the Investment Funds are referred to
as Investment Divisions. These are the fourteen variable investment funds of the
Separate Account. Throughout this prospectus, we will use the term "Investment
Funds" to refer to both Investment Funds and Investment Divisions.
INVESTMENT OPTIONS--The choices for investment of contributions: the fourteen
Investment Funds and the Guaranteed Interest Account.
MASTER PLAN AND TRUST--A defined contribution master plan and trust sponsored by
Equitable Life.
ORIGINAL CONTRACTS/CERTIFICATES--MOMENTUM Certificates under which the MOMENTUM
Employer has not elected to add Alliance Intermediate Government Securities,
Alliance Quality Bond, Alliance High Yield, Alliance Growth & Income, Alliance
Equity Index, Alliance Global, Alliance International, Alliance Small Cap
Growth, Alliance Conservative Investors and Alliance Growth Investors Investment
Funds as Investment Options. These Contracts/Certificates:
o permit investment in only the Guaranteed Interest Account and the Alliance
Money Market, Alliance Balanced, Alliance Common Stock and Alliance
Aggressive Stock Funds; and
o prohibit transfers into the Alliance Money Market Fund.
PARTICIPANT--An individual who participates in an Employer's plan funded by 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(R) Corporate Trusteed Contract, the
Participation 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
3
<PAGE>
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 office to which all contributions, written requests or
other written communications must be sent. See "Services We Provide" in Part 1.
RETIREMENT ACCOUNT VALUE--The sum of the amounts that a Participant has in the
Investment Options.
SAI--The MOMENTUM Statement of Additional Information.
SEPARATE ACCOUNT--Our 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.
TRANSACTION DATE--The Business Day we receive a contribution or acceptable
written or telephone transaction request providing the information we need at
our Processing Office. If your contribution or request is not accompanied by
complete information or is mailed to the wrong address, the Transaction Date
will be the date we receive such complete information at our Processing Office.
If your 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
next following Business Day -- unless under certain circumstances, a future date
certain is specified in the request.
TRUST--The Hudson River Trust, a mutual fund in which the assets of Separate
Account A are invested.
VALUATION PERIOD--Each Business Day together with any consecutive preceding
non-Business Day(s).
4
<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. Equitable Life has been selling
annuities since the turn of the century. Our Home Office is located at 1290
Avenue of the Americas, New York, New York 10104. We 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 shareholder of the Holding
Company is AXA-UAP S.A., (AXA), a French company. As of January 1, 1997, AXA
beneficially owned 63.8% of the outstanding common stock of the holding company
(assuming conversion of convertible preferred stock held by AXA). 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
holding company for an international group of insurance and related financial
service companies.
Equitable Life, the Holding Company and their subsidiaries managed approximately
$239.8 billion of assets as of December 31, 1996, including third party assets
of approximately $184.8 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 42,000 small businesses,
state and local retirement funds in more than half the 50 states, approximately
250,000 employees of educational and non profit institutions, as well as nearly
500,000 individuals. Millions of Americans are covered by Equitable Life's
annuity, life and pension contracts.
THE MOMENTUM PROGRAM
MOMENTUM is designed to meet the retirement savings needs of those working for
businesses and other organizations.
THE MOMENTUM PROGRAM:
o POOLED TRUST
A funding vehicle used in connection with an Employer's qualified defined
contribution plan and trust.
o MASTER TRUST
A funding vehicle used in connection only with the Master Plan, an
IRS-approved master defined contribution plan, in which case the Master
Trust will be the sole funding vehicle for the Employer's plan.
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.
INVESTMENT OPTIONS
The following Investment Options are offered: The Guaranteed Interest Account,
and fourteen Investment Funds (Alliance Money Market, Alliance Intermediate
Government Securities, Alliance Quality Bond, Alliance High Yield, Alliance
Growth & Income, Alliance Equity Index, Alliance Common Stock, Alliance Global,
Alliance International, Alliance Aggressive Stock, Alliance Small Cap Growth and
the Alliance Asset Allocation Series: Alliance Conservative Investors, Alliance
Balanced and Alliance Growth Investors). Each Investment Fund invests in shares
of a corresponding Portfolio of the Trust. The attached Trust prospectus
describes the investment objectives and policies of the Portfolios available to
Contract Owners.
If an employer's 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's (DOL) regulation under ERISA
Section 404(c). See "Certain Rules Applicable to Plans Designed to Comply with
Section 404(c) of ERISA" in Part 8.
5
<PAGE>
Educational information about investing which may be useful for Participants is
contained in "Part 12: Long-Term Market Trends" in the SAI. The SAI is available
free of charge by calling 1-800-528-0204.
SELECTING INVESTMENT OPTIONS
Under the Momentum Program, the Employer or Plan Trustee will choose the
investment options available to the Participant. If any of the Options listed
below are selected, there will be restrictions on the amount you can transfer
out of the Guaranteed Interest Account. Additionally, if your Employer makes any
of these Options available to you, whether or not you select them, you will be
subject to such restrictions. The Options that result in restrictions are:
Alliance Conservative Investors, Alliance Money Market, Alliance Intermediate
Government Securities, Alliance Quality Bond and Alliance High Yield.
MOMENTUM Original Contracts and Certificates limit you to only the Guaranteed
Interest Account and the Alliance Money Market, Alliance Balanced, Alliance
Common Stock and Alliance Aggressive Stock Funds.
CONTRIBUTIONS
MOMENTUM 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.
MOMENTUM 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.
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 accepted subject to
collection. Under the MOMENTUM Program either you or the Plan Trustee, or both,
as applicable, 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%.
Contributions made to an Investment Fund purchase Accumulation Units in that
Investment Fund.
TRANSFERS
Under the MOMENTUM Program, either the Participant or the Plan Trustee may
direct us to transfer 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. If you have an Original Contract, restrictions will apply to transfers
into the Alliance Money Market Fund from any of the other Investment Options.
Minimum transfer amounts may apply. See "Transfers" in Part 5.
SERVICES WE PROVIDE
Your Equitable Life Representative can help you with any questions you have. In
addition, there are a number of services designed to keep you informed.
REGULAR REPORTS
We currently provide written confirmation of every financial transaction, and:
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.
ADDITIONAL SERVICES
Materials and seminars of an educational nature to assist retirement planning
needs of Participants can be arranged through your Equitable Life
Representative. Your Equitable Life Representative can also schedule retirement
planning workshops to facilitate plan enrollment periods.
TELEPHONE OPERATED PROGRAM SUPPORT (TOPS) SYSTEM
TOPS is designed to provide up-to-date information via touch-tone telephone.
TOPS is available only if your Employer has elected this service. Use TOPS:
o for current Retirement Account Value;
o for current allocation percentages;
o for the number of units held in the Investment Funds under your account; or
o to change your allocation percentages and transfer money among the Investment
Funds and the Guaranteed Interest Account.
A special code number is required to use TOPS. We have established procedures
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 we do not employ reasonable procedures to confirm
that instructions communicated by telephone are genuine, we may be liable for
any losses arising out of any action on our part or any failure or omission to
act as a result of our own negligence, lack of good faith, or willful
misconduct. In light of the procedures established, we will not be liable for
following telephone instructions that
6
<PAGE>
we reasonably believe to be genuine. We reserve the right to terminate or modify
any telephone or automated transfer/withdrawal service we provide upon 90 days
written notice.
A toll-free number is available, and local TOPS telephone numbers will be
provided. TOPS is normally available 24 hours, 7 days a week. However, Equitable
Life will not be responsible for the unavailability of the system for any
reason. Transfers made after 4:00 p.m. Eastern Time, or the closing of the New
York Stock Exchange, if earlier, on a Business Day or on a non-Business Day are
not processed until the following Business Day.
TOLL-FREE TELEPHONE SERVICES
We maintain toll-free numbers for your convenience. See the charts below.
WRITTEN COMMUNICATION
All items received at the proper address prior to 4:00 p.m. Eastern Time, or the
closing of the New York Stock Exchange, if earlier, on a Business Day will be
effective on the same Business Day. Written requests will be processed as of the
date a properly completed request is received at our Processing Office.
<TABLE>
<CAPTION>
WHERE TO REACH US
- -----------------------------------------------------------------------------------------------------------------------
FOR PAYMENTS (E.G., CONTRIBUTIONS, LOAN FOR ALL OTHER COMMUNICATIONS (E.G.,
PAYMENTS, ETC.) REQUESTS FOR TRANSFERS, WITHDRAWALS)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REGULAR Equitable Life MOMENTUM Administrative Services
MAIL MOMENTUM Administrative Services P.O. Box 2919
P.O. Box 13629 New York, NY 10116
Newark, NJ 07188-0629
EXPRESS First Chicago National Processing Center MOMENTUM Administrative Services
MAIL 300 Harmon Meadow Boulevard, 3rd Floor 200 Plaza Drive
Secaucus, NJ 07094 Harmon Meadow
Attention: MOMENTUM 13629 Secaucus, NJ 07094
<FN>
TOPS ------------------------------------------- 1-800-821-7777 -------------------------------------------------
Note: Your subscriber number is 867766.
DAILY UNIT VALUE ------------------------ Call TOPS or Telephone Consultants --------------------------------------
TELEPHONE CONSULTANTS ------------------------------- 1-800-528-0204 ----------------------------------------------
(AVAILABLE 8:30 A.M.-7:00 P.M.,
EASTERN TIME, ON EACH BUSINESS DAY)
- ----------------------------------------------------------------------------------------------------------------------
</FN>
</TABLE>
- -------------------------------------------------------------------------------
DISTRIBUTION OPTIONS AND DEATH BENEFIT
- -------------------------------------------------------------------------------
Not all of the options described below may be available to MOMENTUM
Participants. The selection of options depends on the terms of each Employer
plan. The MOMENTUM Program provides several different types of distribution
options, including:
o fixed and variable annuities;
o lump sum payments;
o partial withdrawals;
o annual payments designed to meet the Code's required minimum distribution
rules;
o payments for a specific period of time.
If a participant dies before distributions begin, the MOMENTUM Contract provides
a death benefit. The beneficiary will be paid the greater of the Participant's
Retirement Account Value or the minimum death benefit. The minimum death benefit
will not be less than the total contributions adjusted for total withdrawals and
any applicable taxes.
WITHDRAWALS AND TERMINATION
Premature withdrawals or contract terminations (generally prior to age 59 1/2)
may be restricted and subject to an early withdrawal Federal income tax penalty.
See "Part 8: Federal Tax and ERISA Matters."
Subject to income tax rules and the provisions of any applicable employer plan,
you may withdraw funds at any time by completing and submitting a proper form.
This form is available from your Equitable Life Representative or from our
Processing Office. Equitable Life withdrawals may be subject to a minimum amount
or to a contingent withdrawal charge.
The MOMENTUM Contract also permits the Employer or Plan Trustee to terminate
plan 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 due to
plan termination may also result in a contingent withdrawal charge.
7
<PAGE>
PLAN LOANS
The MOMENTUM Contract permits an Employer to withdraw funds from the Retirement
Account Value, without incurring a contingent withdrawal charge, in order to
make a loan to a Participant under the Employer's plan. See "Plan Loans" in Part
5 for a description of loan procedures and rules and Part 6: "Deductions and
Charges" for a description of charges associated with plan loans.
A plan loan under the MOMENTUM Program 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
Generally, any earnings attributable to your Retirement Account Value will not
be included in your taxable income until distributions are made. See "Part 8:
Federal Tax and ERISA Matters."
DEDUCTIONS AND CHARGES
Keep in mind that the MOMENTUM Program is designed for retirement savings and
long-range financial planning; certain charges will not apply unless you make
early withdrawals from your Contract.
Following is a summary of the different types of deductions and charges which
may be applicable.
o CHARGE TO INVESTMENT FUNDS--We make a daily charge for certain expenses of
the Contract. It covers death benefits, mortality risks, expenses and expense
risks. The daily Accumulation Unit Value is quoted net of these charges.
These charges are 1.34% (effective annual rate) for the Alliance Intermediate
Government Securities, Alliance Quality Bond, Alliance High Yield, Alliance
Growth & Income, Alliance Equity Index, Alliance Global, Alliance
International, Alliance Aggressive Stock, Alliance Small Cap Growth, Alliance
Conservative Investors and Alliance Growth Investors Funds and 1.49%
(effective annual rate) for the Alliance Money Market, Alliance Common Stock
and Alliance Balanced Funds. Further, the MOMENTUM Contract imposes an
overall limit of 1.75% on total Separate Account and Trust expenses for the
Alliance Money Market, Alliance Common Stock, Alliance Aggressive Stock and
Alliance Balanced Funds.
o TRUST CHARGES TO PORTFOLIOS--Investment advisory fees and other expenses of
the Trust are charged daily against the 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.
o ADMINISTRATIVE CHARGES--The administrative charge is currently at a maximum
of $30 a year but may be less under different contracts.
The charge is deducted pro rata from your Retirement Account Value on the
last Business Day of each calendar quarter. Under most contracts, we reserve
the right to increase this charge if our administrative costs increase.
Employers under the MOMENTUM Contract have the option of being billed
directly for this charge.
o CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES--Generally, charges for
state premium taxes and other applicable taxes, if any, are deducted when an
annuity payment option is elected. The current tax charge that might be
imposed varies by state and ranges from 0% to 2.25%; however, the rate is 1%
in Puerto Rico and 5% in the Virgin Islands.
o CONTINGENT WITHDRAWAL CHARGE--If you terminate your participation under a
contract or make a partial withdrawal, your Retirement Account Value may be
subject to a contingent withdrawal charge that will be used to cover sales
and promotional expenses. This charge will not exceed 6% of the lesser of
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. Important exceptions and limitations
eliminate or reduce the contingent withdrawal charge.
o 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 recordkeeping charges if our
costs increase. Your Employer may elect to pay these fees. See "Plan Loan
Charges" in Part 6.
o 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.
8
<PAGE>
FEE TABLE AND EXAMPLES
The following Table, and the related Examples, will assist you in understanding
the various costs and expenses under the MOMENTUM Program so that you may
compare the MOMENTUM Contract with other products. The Table reflects expenses
of both the Separate Account and the Trust for the year ended December 31, 1996.
As explained in Part 4, the Guaranteed Interest Account is not a part of the
Separate Account and is not covered by the Table and Examples. The only expenses
shown in the Table which apply to the Guaranteed Interest Account are the
Contingent Withdrawal Charge and the Administrative Charge. Also see
"Distribution Options" and "Annuity Distribution Options" in Part 5 for a
description of annuity options under the MOMENTUM Program and Part 6 for charges
associated with some of those options.
Certain expenses and fees shown in the Table may not apply to you. To determine
whether a particular item in the Table applies (and the actual amount, if any)
consult the section of the prospectus indicated in the notes to the Table. A
charge for applicable state or local taxes may be deducted from contributions in
some states. See "Charges for State Premium and Other Applicable Taxes" in Part
6.
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>
<CAPTION>
ALLIANCE
ALLIANCE INTERMEDIATE ALLIANCE ALLIANCE ALLIANCE
MONEY GOVERNMENT QUALITY ALLIANCE GROWTH EQUITY
MARKET SECURITIES BOND HIGH YIELD & INCOME INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
<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 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 (8) 0.35% 0.50% 0.53% 0.60% 0.55% 0.33%
Other Expenses 0.04% 0.09% 0.05% 0.06% 0.05% 0.05%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL HUDSON RIVER TRUST
ANNUAL EXPENSES (7) (8) 0.39% (5) 0.59% 0.58% 0.66% 0.60% 0.38%
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE ALLIANCE SMALL ALLIANCE ALLIANCE
COMMON ALLIANCE ALLIANCE AGGRESSIVE CAP CONSERVATIVE ALLIANCE GROWTH
STOCK GLOBAL INTERNATIONAL STOCK GROWTH INVESTORS BALANCED INVESTORS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MAXIMUM SEPARATE
ACCOUNT AND HUDSON
RIVER TRUST ANNUAL
EXPENSES (5) 1.75% N/A N/A 1.75% N/A 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% 0.50% 0.65% 0.50%
Other Expenses 0.84% 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% 1.34% 1.49% (5) 1.34%
Hudson River Trust Annual
Expenses (6)
Investment Advisory Fee (8) 0.38% 0.65% 0.90% 0.55% 0.90% 0.48% 0.42% 0.53%
Other Expenses 0.03% 0.08% 0.18% 0.03% 0.10% 0.07% 0.05% 0.06%
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL HUDSON RIVER TRUST
ANNUAL EXPENSES (7)(8) 0.41% (5) 0.73% 1.08% 0.58% (5) 1.00% 0.55% 0.47% (5) 0.59%
<FN>
( footnotes on next page)
</FN>
</TABLE>
9
<PAGE>
- ----------------
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
"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 1996 would have been 1.88%, 1.96%,
1.90%, and 1.92% for the Money Market, Balanced, Common Stock and
Aggressive Stock Funds, respectively. See "Limitation on Charges" and
"Charges to Investment Funds" 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 Risk Fees"
includes death benefit charges. "Other Expenses" under "Separate Account
Annual Expenses" includes financial accounting expenses. See "Limitations
on Charges," "Charges to Investment Funds" and "Trust Charges to
Portfolios" in Part 6.
(7) Effective May 1, 1997, a new Investment Advisory Agreement was entered into
between the Trust and Alliance Capital Management L.P., the Trust's
Investment Adviser, which effected changes in the Trust's management fee
and expense structure. See the Trust prospectus for more information.
The table reflects the Trust's expense and is based on average portfolio
net assets for the year ended December 31, 1996 and has been restated to
reflect (i) the fees that would have been paid to Alliance if the current
advisory agreement had been in effect as of January 1, 1996 and (ii)
estimated accounting expenses for the year ending December 31, 1997. The
amounts shown for the Alliance Small Cap Growth Portfolio, which will
become available under the Trust on or about May 1, 1997 and for Momentum
in early June, 1997, is an estimate.
(8) 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
increased without a vote from that Portfolio's shareholders. The other
direct operating expenses will also fluctuate from year to year depending
on actual expenses. The Trust's expenses are shown as a percentage of each
Portfolio's average net assets. See "Trust Charges to Portfolios" in Part
6.
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>
- ----------------------------------------------------------------------------------------------------
Alliance
Last Alliance Intermediate Alliance Alliance Alliance Alliance Alliance Alliance
Business Money Government Quality High Growth Equity Common Alliance Inter-
Day of Market Securities Bond Yield & Income Index Stock Global national
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
December 1993 $25.41 -- -- -- -- -- $128.80 -- --
December 1994 26.08 $ 98.19 $ 93.87 $ 95.88 $ 98.86 $100.95 124.32 $104.12 --
December 1995 27.22 109.80 108.38 113.44 121.02 135.94 162.42 122.06 $104.15
December 1996 28.28 112.40 112.65 137.53 143.37 164.12 199.05 138.00 112.83
- ----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------
Last Small Alliance Alliance Alliance
Business Cap Aggressive Conservative Alliance Growth
Day of Growth Stock Investors Balanced Investors
- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
December 1993 -- $55.68 -- $28.85 --
December 1994 -- 52.88 $ 95.10 26.18 $ 96.31
December 1995 -- 68.73 112.97 30.92 120.08
December 1996 -- 82.91 117.25 34.06 133.40
- ------------------------------------------------------------------
</TABLE>
10
<PAGE>
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 Fund 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>
Alliance Money Market $76.49 $123.45 $170.85 $238.79
Alliance Intermediate
Government Securities 78.27 128.81 180.39 258.06
Alliance Quality Bond 78.17 128.52 179.86 257.00
Alliance High Yield 78.97 130.90 184.08 265.47
Alliance Growth & Income 78.37 129.11 180.92 259.13
Alliance Equity Index 76.19 122.55 169.26 235.54
Alliance Common Stock 76.49 123.45 170.85 238.79
Alliance Global 79.66 132.98 187.76 272.82
Alliance International 83.13 143.32 205.98 308.79
Alliance Aggressive Stock 76.49 123.45 170.85 238.79
Alliance Small Cap Growth 82.33 140.96 -- --
Alliance Asset Allocation Series:
Alliance Conservative Investors 77.88 127.62 178.28 253.81
Alliance Balanced 76.49 123.45 170.85 238.79
Alliance Growth Investors 78.27 128.81 180.39 258.06
</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>
Alliance Money Market $20.92 $64.60 $110.85 $238.79
Alliance Intermediate
Government Securities 22.80 70.29 120.39 258.06
Alliance Quality Bond 22.70 69.97 119.86 257.00
Alliance High Yield 23.54 72.49 124.08 265.47
Alliance Growth & Income 22.91 70.60 120.92 259.13
Alliance Equity Index 20.60 63.65 109.26 235.54
Alliance Common Stock 20.92 64.60 110.85 238.79
Alliance Global 24.27 74.70 127.76 272.82
Alliance International 27.94 85.67 145.98 308.79
Alliance Aggressive Stock 20.92 64.60 110.85 238.79
Alliance Small Cap Growth 27.10 83.17 -- --
Alliance Asset Allocation Series:
Alliance Conservative Investors 22.38 69.02 118.28 253.81
Alliance Balanced 20.92 64.60 110.85 238.79
Alliance Growth Investors 22.80 70.29 120.39 258.06
</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.
11
<PAGE>
- --------------------------------------------------------------------------------
PART 2: SEPARATE ACCOUNT A 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 Trust. You may allocate some or all contributions among the
Investment Funds.
The assets of the Separate Account are our property. 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 contracts 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
contracts, and the obligations set forth in the contracts (other than those of
Employers or Plan Trustees) are our obligations.
In addition to contributions made under your contracts, we may allocate to the
Separate Account monies received under other annuity contracts, certificates or
agreements. Owners of all such contracts, certificates 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 Contracts 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 Contract Owners, Participants and Plan Trustees if required, (1) to
add new Investment Funds (or subdivisions of Investment Funds) to, or remove
Investment Funds (or subdivisions of Investment Funds) from, the Separate
Account, (2) to combine any two or more Investment Funds or subdivisions
thereof, (3) to transfer assets determined by us to be the proportionate share
of the class to which the contracts belong from any of the Investment Funds to
another Invesment Fund by withdrawing the same percentage of each investment in
that Investment Fund with appropriate adjustments to avoid odd lots and
fractions, (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 Trust, (7) to discontinue the sale
of contracts, (8) to terminate any employer or plan trustee agreement pursuant
to its terms and (9) 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
investments of an Investment Fund, MOMENTUM Employers will be notified. We may
make other changes in the contracts that do not reduce any Cash Value, annuity
benefit, Retirement Account Value or other accrued rights or benefits.
THE HUDSON RIVER TRUST
The 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 Trust. The Trust commenced operations in January 1976 with a
predecessor of its Alliance Common Stock Portfolio. The Trust does not impose a
sales charge or "load" for buying and selling its shares. All dividend
distributions to the Trust are reinvested in full and fractional shares of the
Portfolio to which they relate. Each Investment Fund invests in Class IA shares
of a corresponding portfolio of the Trust.
More detailed information about the Trust, its investment objectives, policies,
restrictions, risks, expenses, multiple class distribution system and all other
aspects of its operations, appears in its prospectus, or in its statement of
additional information.
12
<PAGE>
THE TRUST'S INVESTMENT ADVISER
The 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 Life. On December 31, 1996, Alliance was managing
over $182.8 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, endowment funds, insurance companies, foreign entities,
qualified and non-tax qualified corporate funds, public and private pension and
profit-sharing plans, foundations and tax-exempt organizations.
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 194 investment professionals,
including 83 research analysts. Portfolio managers have average investment
experience of more than 15 years.
Alliance's main office is located at 1345 Avenue of the Americas, New York, New
York 10105.
INVESTMENT POLICIES AND OBJECTIVES OF THE 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 Trust's Portfolios are as follows:
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT POLICY OBJECTIVE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alliance Primarily high-quality short-term money High level of current income while
Money Market......... market instruments. preserving assets and maintaining
liquidity.
Alliance Inter- Primarily debt securities issued or High current income consistent
mediate Govern- guaranteed by the U.S. Government, its with relative stability of principal.
ment Scurities....... agencies and 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.
Alliance Primarily investment grade fixed-income High current income consistent with
Quality Bond ........ securities. preservation of capital.
Alliance Primarily a diversified mix of high-yield, High return by maximizing current
High Yield........... fixed-income securities involving greater income and, to the extent consistent
volatility of price and risk of principal with that objective, capital
and income than high-quality fixed- appreciation.
income securities. The medium- and
lower-quality debt securities in which
the Portfolio may invest are known as
"junk bonds."
Alliance Growth Primarily income producing common High total return through a combination
& Income............. stocks and securities convertible into of current income and capital
common stocks. appreciation.
Alliance Selected securities in the S&P 500 Index Total return performance (before trust
Equity Index......... (the "Index") which the adviser believes and Separate Account annual expenses) that
will, in the aggregate, approximate the approximates the investment performance of
performance results of the Index. the Index(including reinvestment of dividends)
at risk level consistent with that of
the Index.
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT POLICY OBJECTIVE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alliance Primarily common stock and other equity- Long-term growth of capital and
Common Stock.......... type instruments. increasing income.
Alliance Primarily equity securities of non-United Long-term growth of capital.
Global ............... States as well as United States
companies.
Alliance Primarily equity securities selected Long-term growth of capital.
International......... principally to permit participation in
non-United States companies with
prospects of growth.
Alliance Primarily common stocks and other Long-term growth of capital.
Aggressive Stock...... equity-type securities issued by medium-
and other smaller-sized companies with
strong growth potential.
Alliance Small Cap Primarily U.S. common stock and other Long-term growth of capital.
Growth................ equity-type securities issued by smaller
companies with favorable growth prospects.
Alliance Asset Allocation Series:
Alliance Diversified mix of publicly traded, fixed- High total return without, in the
Conservative income and equity securities; asset mix adviser's opinion, undue risk to
Investors............. and security selection are primarily principal.
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.
Alliance Primarily common stocks, publicly traded High return through a combination of
Balanced.............. debt securities and high-quality money current income and capital
market instruments. The Portfolio is appreciation.
generally expected to hold 50% of its
assets in equity securities and 50% in
fixed-income securities.
Alliance Growth Diversified mix of publicly traded, fixed- High total return consistent with
Investors............. income and equity securities; asset mix the adviser's determination of
and security selection based upon factors reasonable risk.
expected to increase possibility 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.
</TABLE>
14
<PAGE>
- --------------------------------------------------------------------------------
PART 3: INVESTMENT PERFORMANCE
- --------------------------------------------------------------------------------
INVESTMENT FUND PERFORMANCE
In order to help show how the actual performance of the Investment Funds has
affected Retirement Account Values, the following tables provide a historical
view of investment performance. The information presented includes performance
results for each Investment Fund along with data representing unmanaged market
indices and similarly managed funds.
Performance data for the Alliance Money Market, Alliance Balanced, Alliance
Common Stock and Alliance Aggressive Stock Funds shown in this section include
periods prior to December 18, 1987, when four predecessor open-end management
separate accounts were reorganized into the Separate Account in unit investment
trust form. (See Part 8 of the SAI.) The "since inception" figures are based on
the date of inception of the predecessor separate accounts. Also, the
performance data shown from December 18, 1987 through December 31, 1990 reflect
the investment results of The Equitable Trust, which was replaced by the 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 four predecessor separate accounts, The
Equitable Trust and the 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.
The performance for all periods has been adjusted to reflect the Separate
Account asset charges as well as the Trust expenses.
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 under a particular Contract.
ALLIANCE SMALL CAP GROWTH PORTFOLIO
The Alliance Small Cap Growth Portfolio of the Trust commenced operations on May
1, 1997. Therefore, no actual historical performance data is available. However,
historical performance of six other advisory accounts managed by Alliance is
described in the attached Trust prospectus. According to that prospectus, these
accounts have substantially the same investment objectives and policies, and are
managed in accordance with essentially the same investment strategies and
techniques, as those of the Alliance Small Cap Growth Portfolio. It should be
noted that these accounts are not subject to certain of the requirements and
restrictions to which the Alliance Small Cap Growth Portfolio is subject and
that they are managed for tax exempt clients of Alliance. The investment
performance information included in the Trust prospectus for all Portfolios
other than the Alliance Small Cap Portfolio is based on actual historical
performance.
The investment performance data for the Trust's Alliance Small Cap Portfolio
contained in the Trust prospectus, is provided by that prospectus to illustrate
the past performance of the Portfolio adviser in managing a substantially
similar investment vehicle as measured against specified market indices and does
not represent the past or future performance of the Portfolio. None of the
performance data contained in the Trust prospectus reflects fees and charges
imposed under your Contract, which fees and charges would reduce such
performance figures. Therefore, the performance data for the Alliance Small Cap
Portfolio in the Trust prospectus may be of limited use and is not intended to
be a substitute for actual performance of the corresponding Portfolios, nor are
such results an estimate or guarantee of future performance for these
Portfolios.
HOW PERFORMANCE DATA ARE PRESENTED
The tables on the following pages compare annualized rates of return for each
Investment Fund along with appropriate benchmarks. These performance results are
based on the change in the accumulation unit value for each Investment Fund for
the periods shown.
Investment results in these tables are net of all charges and expenses assessed
against the Investment Funds (including investment advisory fees and
15
<PAGE>
the direct operating expenses of the Trust and the expenses of the Contracts)
but excluding the annual administrative charge and any withdrawal charges which
would also reduce the actual return. The tables under "Standardized Computation
of Performance" in the next section show performance results after giving effect
to all charges including the annual administrative charge and the contingent
withdrawal charge.
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 manager is likely to make selections.
INCEPTION DATES AND COMPARATIVE BENCHMARKS
ALLIANCE MONEY MARKET: May 11, 1982; Salomon Brothers Three-Month T-Bill Index
(3-Month T-Bill).
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES: April 1, 1991; Lehman Intermediate
Government Bond Index (Lehman Intermediate Government).
ALLIANCE QUALITY BOND: October 1, 1993; Lehman Aggregate Bond Index (Lehman
Aggregate).
ALLIANCE HIGH YIELD: January 2, 1987; Merrill Lynch High Yield Master Index
(Master High Yield).
ALLIANCE GROWTH & INCOME: October 1, 1993; 75% Standard & Poor's 500 Index (S&P
500) and 25% Value Line Convertibles Index (75% S&P 500/25% Value Line Conv.).
ALLIANCE EQUITY INDEX: March 1, 1994; Standard & Poor's 500 Index (S&P 500).
ALLIANCE COMMON STOCK: August 1, 1968; Standard & Poor's 500 Index (S&P 500).
ALLIANCE GLOBAL: August 27, 1987; Morgan Stanley Capital International World
Index (MSCI World).
ALLIANCE INTERNATIONAL: April 3, 1995; Morgan Stanley Capital International
Europe, Australia, Far East Index (MSCI EAFE).
ALLIANCE AGGRESSIVE STOCK: May 1, 1984; 50% Russell 2000 Small Stock Index and
50% S&P MidCap Total Return (50% Russell 2000/50% S&P MidCap).
ALLIANCE SMALL CAP GROWTH: May 1, 1997; 100% Russell 2000 Growth (Russell 2000
Gr.).
ALLIANCE CONSERVATIVE INVESTORS: October 2, 1989; 70% Lehman Treasury Bond
Composite Index and 30% S&P 500 Index (70% Lehman Treas./30% S&P 500).
ALLIANCE BALANCED: May 1, 1984; 50% S&P 500 and 50% Lehman Government/Corporate
Bond Index (50% S&P 500/50% Lehman Corp.).
ALLIANCE GROWTH INVESTORS: October 2, 1989; 30% Lehman Government/Corporate Bond
Index and 70% S&P 500 Index (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.
16
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
ANNUALIZED RATES OF RETURN FOR PERIODS ENDING DECEMBER 31, 1996:
- ----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION DATE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ALLIANCE MONEY MARKET 3.92% 3.63% 2.93% 4.50% --% 5.52% 5/11/82
Lipper Money Market 3.82 3.60 2.93 4.52 -- 5.76
3-Month T-Bill 5.25 5.07 4.37 5.67 -- 6.58
ALLIANCE INTERMEDIATE
GOVERNMENT SECURITIES 2.38 2.60 4.18 -- -- 5.52 4/01/91
Lipper U.S. Government 1.57 3.99 5.21 -- -- 6.76
Lehman Intermediate Government 4.06 5.37 6.23 -- -- 7.43
ALLIANCE QUALITY BOND 3.94 3.96 -- -- -- 3.38 10/01/93
Lipper Corporate Bond A-Rated 1.31 4.01 -- -- -- 3.49
Lehman Aggregate 3.63 6.03 -- -- -- 5.57
ALLIANCE HIGH YIELD 21.23 11.22 13.12 -- -- 9.92 1/02/87
Lipper High Yield 12.46 7.93 11.47 -- -- 9.13
Master High Yield 11.06 9.59 12.76 -- -- 11.24
ALLIANCE GROWTH & INCOME 18.47 12.47 -- -- -- 11.25 10/1/93
Lipper Growth & Income 19.96 15.39 -- -- -- 14.78
75% S&P 500/25% Value Line Conv. 21.28 17.93 -- -- -- 17.24
ALLIANCE EQUITY INDEX 20.73 -- -- -- -- 18.67 3/01/94
Lipper S&P 500 Index Funds 21.10 -- -- -- -- 18.87
S&P 500 22.96 -- -- -- -- 20.90
ALLIANCE COMMON STOCK 22.55 15.61 14.14 14.34 14.06 11.09 8/01/68
Lipper Growth 18.78 14.80 12.39 13.08 13.60 N/A
S&P 500 22.96 19.66 15.20 15.28 14.55 11.57
ALLIANCE GLOBAL 13.06 11.23 11.98 -- -- 10.21 8/27/87
Lipper Global 17.89 8.49 10.29 -- -- 3.65
MSCI World 13.48 12.91 10.82 -- -- 7.44
ALLIANCE INTERNATIONAL 8.33 -- -- -- -- 10.33 4/03/95
Lipper International 13.36 -- -- -- -- 14.33
MSCI EAFE 6.05 -- -- -- -- 8.74
ALLIANCE AGGRESSIVE STOCK 20.63 14.19 10.42 16.29 -- 18.17 5/01/84
Lipper Small Company Growth 16.55 12.70 17.53 16.29 -- 18.19
50% Russell 2000/50% S&P MidCap 17.85 14.14 14.80 14.29 -- 15.18
The Alliance Asset Allocation Series:
ALLIANCE CONSERVATIVE INVESTORS 3.79 5.27 5.88 -- -- 7.57 10/02/89
Lipper Income 8.95 8.91 9.55 -- -- 9.55
70% Lehman Treas./30% S&P 500 8.78 10.14 9.64 -- -- 10.42
ALLIANCE BALANCED 10.16 5.69 4.63 8.78 -- 10.16 5/01/84
Lipper Flexible Portfolio 12.51 9.26 9.30 10.07 -- 11.33
50% S&P 500/50% Lehman Corp. 12.93 13.15 11.47 12.30 -- 14.05
ALLIANCE GROWTH INVESTORS 11.09 9.80 9.28 -- -- 14.03 10/2/89
Lipper Flexible Portfolio 12.51 9.26 9.30 -- -- 9.99
30% Lehman Corp./70% S&P 500 16.94 15.84 13.02 -- -- 12.73
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
CUMULATIVE RATES OF RETURN FOR PERIODS ENDING DECEMBER 31, 1996:
- ----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
1 YEAR 3 YEARS 5 YEARS 10 YEARS 20 YEARS INCEPTION DATE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ALLIANCE MONEY MARKET 3.92% 11.30% 15.55% 55.23% --% 119.61% 5/11/82
Lipper Money Market 3.82 11.18 15.58 55.73 -- 127.67
3-Month T-Bill 5.25 15.99 23.86 73.61 -- 184.26
ALLIANCE INTERMEDIATE GOVERNMENT
SECURITIES 2.38 8.00 22.75 -- -- 36.19 4/01/91
Lipper U.S. Government 1.57 12.45 28.92 -- -- 42.71
Lehman Intermediate Government 4.06 16.98 35.30 -- -- 51.07
ALLIANCE QUALITY BOND 3.94 12.37 -- -- -- 11.42 10/1/93
Lipper Corporate Bond A-Rated 1.31 12.53 -- -- -- 11.83
Lehman Aggregate 3.63 19.19 -- -- -- 19.27
ALLIANCE HIGH YIELD 21.23 37.57 85.21 -- -- 157.38 1/02/87
Lipper High Yield 12.46 25.77 72.39 -- -- 142.30
Master High Yield 11.06 31.63 82.29 -- -- 190.43
ALLIANCE GROWTH & INCOME 18.47 42.46 -- -- -- 41.43 10/01/93
Lipper Growth & Income 19.96 53.82 -- -- -- 56.73
75% S&P 500/25% Value Line Conv. 21.28 63.99 -- -- -- 67.75
ALLIANCE EQUITY INDEX 20.73 -- -- -- -- 62.50 3/01/94
Lipper S&P 500 Index Funds 21.10 -- -- -- -- 63.19
S&P 500 22.96 -- -- -- -- 71.28
ALLIANCE COMMON STOCK 22.55 54.53 93.70 282.02 1,288.05 1884.50 8/01/68
Lipper Growth 18.78 51.65 80.51 243.70 1,185.21 N/A
S&P 500 22.96 71.34 102.85 314.34 1,416.26 2,148.57
ALLIANCE GLOBAL 13.06 37.60 76.07 -- -- 148.20 8/27/87
Lipper Global 17.89 28.45 63.87 -- -- 39.73
MSCI World 13.48 43.95 67.12 -- -- 95.62
ALLIANCE INTERNATIONAL 8.33 -- -- -- -- 18.73 4/03/95
Lipper International 13.36 -- -- -- -- 26.53
MSCI EAFE 6.05 -- -- -- -- 15.78
ALLIANCE AGGRESSIVE STOCK 20.63 48.89 64.14 352.13 -- 729.09 5/01/84
Lipper Small Company Growth 16.55 43.42 142.70 352.31 -- 730.33
50% Russell 2000/50% S&P MidCap 17.85 48.69 99.38 280.32 -- 499.78
The Alliance Asset Allocation Series:
ALLIANCE CONSERVATIVE INVESTORS 3.79 16.66 33.06 -- -- 69.71
Lipper Income 8.95 29.47 58.37 -- -- 94.21
70% Lehman Treas./30% S&P 500 8.78 33.60 58.40 -- -- 105.23
ALLIANCE BALANCED 10.16 18.06 25.39 131.92 -- 240.64 5/01/84
Lipper Flexible Portfolio 12.51 30.84 56.65 162.33 -- 291.87
50% S&P 500/50% Lehman Corp. 12.93 44.87 72.14 218.95 -- 429.51
ALLIANCE GROWTH INVESTORS 11.09 32.36 55.83 -- -- 158.97 10/2/89
Lipper Flexible Portfolio 12.51 30.84 56.65 -- -- 100.79
30% Lehman Corp./70% S&P 500 16.94 55.46 84.42 -- -- 138.49
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
YEAR-BY-YEAR RATES OF RETURN
ALLIANCE
ALLIANCE INTERMEDIATE ALLIANCE ALLIANCE ALLIANCE ALLIANCE ALLIANCE
MONEY GOVERNMENT QUALITY HIGH GROWTH & EQUITY COMMON
MARKET SECURITIES BOND YIELD INCOME INDEX STOCK
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1987 5.27% --% --% 3.28%* --% --% 6.14%
1988 5.94 -- -- 8.26 -- -- 21.55
1989 7.72 -- -- 3.72 -- -- 24.07
1990 6.82 -- -- (2.42) -- -- (9.27)
1991 4.69 10.94* -- 22.79 -- -- 35.81
1992 2.19 4.18 -- 10.81 -- -- 1.82
1993 1.59 9.10 (0.84)* 21.50 (0.59)* -- 23.11
1994 2.63 (5.65) (6.37) (4.09) (1.90) (0.04)* (3.48)
1995 4.35 11.81 15.46 18.32 22.42 34.66 30.64
1996 3.92 2.38 3.94 21.23 18.47 20.73 22.55
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE
ALLIANCE INTER- AGGRESSIVE CONSERVATIVE ALLIANCE GROWTH
GLOBAL NATIONAL STOCK INVESTORS BALANCED INVESTORS
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1987 (13.67)%* --% (1.00)% --% (5.02)% --%
1988 9.39 -- (0.30) -- 13.27 --
1989 25.04 -- 42.95 2.75* 24.60 3.65*
1990 (7.32) -- 5.76 4.98 (1.46) 9.13
1991 28.81 -- 84.65 18.24 40.02 46.92
1992 (1.85) -- (4.37) 4.37 (4.15) 3.53
1993 30.36 -- 15.28 9.28 10.81 13.72
1994 3.82 -- (5.03) (5.38) (9.27) (4.44)
1995 17.23 9.60* 29.97 18.79 18.13 24.68
1996 13.06 8.33 20.63 3.79 10.16 11.09
</TABLE>
- -------------
* Unannualized
STANDARDIZED COMPUTATION OF PERFORMANCE FOR MOMENTUM
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, 1996 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."
19
<PAGE>
GROWTH OF $1,000 FOR PARTICIPANT TERMINATED ON
DECEMBER 31, 1996
<TABLE>
<CAPTION>
LENGTH OF INVESTMENT PERIOD
- -------------------------------------------------------------------------------
INVESTMENT ONE THREE FIVE TEN SINCE
FUND YEAR YEARS YEARS YEARS INCEPTION*
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alliance Money
Market $ 963.59 $ 991.42 $ 988.82 $ 1,270.31 --
Alliance Intermediate
Government
Securities 949.25 962.04 1,050.46 1,050.46 $1,153.56
Alliance Quality
Bond 963.75 1,000.96 -- -- 987.58
Alliance High
Yield 1,128.21 1,235.41 1,617.37 -- 2,124.99
Alliance Growth
& Income 1,101.16 1,279.59 -- -- 1,265.04
Alliance Equity
Index 1,123.36 -- -- -- 1,470.37
Alliance Common
Stock 1,141.20 1,395.09 1,694.70 3,234.85 --
Alliance Global 1,048.28 1,235.71 1,533.58 -- 2,072.50
Alliance International 1,004.45 -- -- -- 1,086.38
Alliance Aggressive
Stock 1,122.36 1,342.02 1,424.82 3,892.31 --
Alliance Asset Allocation Series:
Alliance Conservative
Investors 962.35 1,039.20 1,143.69 -- 1,467.48
Alliance Balanced 1,021.41 1,051.66 1,074.31 1,916.62 --
Alliance Growth
Investors 1,030.041 1,186.33 1,349.64 -- 2,278.95
</TABLE>
AVERAGE ANNUAL TOTAL RETURN FOR PARTICIPANT TERMINATION ON DECEMBER 31, 1996
<TABLE>
<CAPTION>
LENGTH OF INVESTMENT PERIOD
- ------------------------------------------------------------------------
INVESTMENT ONE THREE FIVE TEN SINCE
FUND YEAR YEARS YEARS YEARS INCEPTION*
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alliance Money
Market -3.64% -0.29% -0.22% 2.42% --
Alliance Intermediate
Government
Securities -5.08 -1.28 0.99 -- 2.51%
Alliance Quality
Bond -3.62 0.03 -- -- -0.38
Alliance High
Yield 12.82 7.30 10.09 -- 7.83
Alliance Growth
& Income 10.12 8.57 -- -- 7.50
Alliance Equity
Index 12.34 -- -- -- 14.56
Alliance Common
Stock 14.12 11.74 11.13 12.46 --
Alliance Global 4.83 7.31 8.93 -- 8.11
Alliance International 0.44 -- -- -- 4.86
Alliance Aggressive
Stock 12.24 10.30 7.34 14.56 --
Alliance Asset Allocation Series:
Alliance Conservative
Investors -3.76 1.29 2.72 -- 5.44
Alliance Balanced 2.14 1.69 1.44 6.72 --
Alliance Growth
Investors 3.00 5.86 6.18 -- 12.04
</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
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 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 over 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 over 2,500 variable life and variable annuity
funds on performance and account information. Advertisements or other
communications furnished to present or prospective Contract Owners 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
Sourcebook, 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.
20
<PAGE>
- --------------------------------------------------------------------------------
PART 4: THE GUARANTEED INTEREST ACCOUNT
- --------------------------------------------------------------------------------
The Guaranteed Interest Account is part of our general account and pays interest
at a guaranteed rate. The general account supports all of our policy and
contract guarantees, as well as our general obligations. The general account is
subject to regulation and supervision by the Insurance Department of the State
of New York and to the insurance laws and regulations of all jurisdictions where
we are authorized to do business. Because of 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, the general
account is not 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 and transfers that have been allocated
to that Account on your behalf plus interest, less the sum of all amounts that
have been withdrawn, 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
minimum interest rate guaranteed over the life of the contract, the yearly
guaranteed interest rate for the calendar year, and the current interest rate.
Current interest rates are set 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.
For the MOMENTUM Program, quarterly "current" rates are established. The current
rate applies to the entire amount you have in the Guaranteed Interest Account
during the calendar quarter for which it is declared. We may change the duration
of future interest guarantee periods, but no interest guarantee period will
exceed one year. We also reserve the right to assign different current rates by
Transaction Date and 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.
The yearly guaranteed interest rate for 1997 is 4% and for 1998 is 4%. The
yearly guaranteed interest rate will never be less than the minimum Contract
guarantee of 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 guaranteed interest rate
for the next year.
21
<PAGE>
- --------------------------------------------------------------------------------
PART 5: PROVISIONS OF THE CONTRACT
AND SERVICES WE PROVIDE
- --------------------------------------------------------------------------------
UNDERSTANDING 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, elect our full-service plan recordkeeping option, then
you must adopt our Master Plan and Trust. A description of such services may be
found under "Plan Recordkeeping Services" in this section. More information
about the Master Plan and Trust may be found in the SAI.
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 recordkeeping 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.
Chase Manhattan Bank N.A. currently acts as the trustee under both the Pooled
Trust and the Master Plan and Trust. The sole responsibility of Chase Manhattan
Bank N.A. 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 elect the full service recordkeeping option,
generally you must adopt the Master Plan and Trust. 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:
22
<PAGE>
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
nondiscrimination 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 options.
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 Representative 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 Life. The MOMENTUM
Contract governs the Investment Options that are offered under the MOMENTUM
Program.
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 Alliance Intermediate Government Securities,
Alliance Quality Bond, Alliance High Yield or Alliance Conservative Investors
Funds, you must also select the Alliance 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 Alliance Balanced,
Alliance Growth & Income, Alliance Equity Index, Alliance Common Stock, Alliance
Global, Alliance International, Alliance Aggressive Stock, Alliance Small Cap
Growth, or Alliance Growth Investors Funds.
23
<PAGE>
For Original Certificates, only the Guaranteed Interest Account and the Alliance
Money Market, Alliance Balanced, Alliance Common Stock and Alliance Aggressive
Stock Funds are available and we do not permit transfers into the Alliance 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. (See "Part 1: Summary.")
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.
By signing the enrollment form you are providing us with instructions to
allocate your contributions to the Alliance Money Market Fund (if that Fund has
been selected as an available Investment Option under your Employer's plan) 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
Alliance Money Market Fund. If your instructions add up to more than 100%, the
entire amount of the contribution will be allocated to the Alliance 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 Alliance 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 Alliance 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
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, as a Participant, should review your confirmation notices carefully to
determine whether your contributions have been allocated correctly. A
certificate evidencing your participation 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 Program 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 for the Transaction Date on 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 Transaction Date. The number of
Accumulation Units in an Investment Fund at any time is equal to the sum of
Accumulation Units purchased by contri-
24
<PAGE>
butions, 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 Transaction Date. 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 Trust, which in turn reflects the
investment income and realized and unrealized capital gains and losses of the
Portfolios, as well as the Trust's fees and expenses. The Accumulation Unit
Value is also stated after deduction of the Separate Account asset charges
relating to MOMENTUM. A description of the computation of the Accumulation Unit
Value is found in the SAI.
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 Options" 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 Representative 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 Alliance Money Market, Alliance Intermediate Government
Securities, Alliance Quality Bond, Alliance High Yield, or Alliance 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 year 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 Original Certificates, we do not permit transfers into the Alliance
Money Market Fund from any of the other Investment Options. No other transfer
limitations apply to Original Certificates.
INVESTMENT SIMPLIFIER: AUTOMATIC TRANSFER OPTIONS
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 Original 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 Alliance Money Market for Original 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.
25
<PAGE>
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. For the Fixed-Dollar Option, 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. For the Interest Sweep, the first monthly transfer will
occur on the last Business Day of the month following 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 Option, 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.
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 adviser 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 Representative, 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.
In addition, Participants should always consult their tax adviser before taking
out a plan loan.
Only one outstanding plan loan will be permitted at any time; any number of
takeover loans will be permitted at any time. Takeover loans must be repaid
under Momentum before a new plan loan can be taken out under Momentum. The
minimum loan is $1,000 and the maximum is a percentage of your vested Retirement
Account Value. See "Part 4: Additional Loan Provisions" in the SAI and "Part 8:
Federal Tax and ERISA Matters" of the prospectus. However, you may not have both
takeover loans and plan loans outstanding simultaneously.
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.
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
26
<PAGE>
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" for the consequences of defaulting a plan loan and other applicable tax
matters.
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 reallocate 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 "MOMENTUM Contract -- 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 Option" option
discussed later in this section which is designed to help you satisfy 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."
27
<PAGE>
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 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."
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 your choice of the
14 Investment Funds of the Hudson River Trust through the purchase of annuity
units.
We offer other forms not outlined here. Your Equitable Life Representative 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).
Once you choose an annuity distribution option and payments have commenced, no
change can be made, other than transfers among the investment funds if permitted
in the future and if a variable annuity is selected. 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 6: Deductions and
Charges: Charges for State Premium and Other Applicable Taxes."
MINIMUM DISTRIBUTIONS (AUTOMATIC MINIMUM WITHDRAWAL OPTION) -- 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 either attains age 70 1/2 or retires from service with the
employer sponsoring the plan, whichever comes later (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
minimum distribution is not made, 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.
We offer a payment option which we call "Automatic Minimum Withdrawal Option,"
which is intended to meet minimum distribution requirements. You may elect
Automatic Minimum Withdrawal Option if you, the Participant, are at least age 70
1/2 and have a Retirement Account Value of at least $3,500. You can elect
Automatic Minimum Withdrawal Option by fil-
28
<PAGE>
ing the proper election form with your Employer. If you elect Automatic Minimum
Withdrawal Option, we will withdraw the amount which the Code requires you to
withdraw from your Retirement Account Value. We calculate the Automatic Minimum
Withdrawal Option 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 Part 5 of the SAI.
Your Automatic Minimum Withdrawal Option election is revocable. Automatic
Minimum Withdrawal Option is not available to Participants who have an
outstanding loan. Generally, electing this option does not restrict you from
taking additional 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 Part 8, "Federal Tax and ERISA Matters: Spousal Requirements."
If the Participant dies while a loan is outstanding, the loan will automatically
default and be subject to Federal income tax as a plan distribution. 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.
29
<PAGE>
If you die before your entire vested benefit has been distributed to you, any
remaining 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.
PAYMENT OF PROCEEDS
Payment of proceeds from the Investment Funds will be made within seven days of
the Transaction Date. Payment or application 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 Life offers two plan recordkeeping options, one of which must be
elected for each plan. There is a choice of either Basic Recordkeeping or Full
Service Recordkeeping.
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, Employers may enter
into a written agreement with Equitable Life whereby Equitable Life, based on
information submitted by Employers, directs distribution of plan benefits and
withdrawals to participants, including tax withholding and reporting to the IRS.
The written agreement specifies the fees for such service.
MOMENTUM 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 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 nondiscrimination 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 specify the
fees for the services to be provided. See "Charge for Plan Recordkeeping
Services" in Part 6.
30
<PAGE>
- --------------------------------------------------------------------------------
PART 6: DEDUCTIONS AND CHARGES
- --------------------------------------------------------------------------------
Most charges applied to your Contract apply to all Investment Options. However,
Trust Charges to Portfolios and Charges to Investment Funds do not apply to the
Guaranteed Interest Account.
- --------------------------------------------------------------------------------
TRUST CHARGES TO PORTFOLIOS
Investment advisory fees charged daily against the Trust's assets, direct
operating expenses of the 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 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 cannot be increased without a vote
of that Portfolio's shareholders. The fees are as follows:
<TABLE>
DAILY AVERAGE NET ASSETS
------------------------
FIRST NEXT NEXT NEXT
HRT PORTFOLIO $750 MILLION $750 MILLION $1 BILLION $2.5 BILLION THEREAFTER
- ------------- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alliance International............... 0.900% 0.825% 0.800% 0.780% 0.770%
Alliance Global...................... 0.675% 0.600% 0.550% 0.530% 0.520%
Alliance Small Cap Growth............ 0.900% 0.850% 0.825% 0.800% 0.775%
Alliance Aggressive Stock............ 0.625% 0.575% 0.525% 0.500% 0.475%
Alliance Common Stock................ 0.475% 0.425% 0.375% 0.355% 0.345%*
Alliance Growth & Income............. 0.550% 0.525% 0.500% 0.480% 0.470%
Alliance Growth Investors............ 0.550% 0.500% 0.450% 0.425% 0.400%
Alliance Balanced.................... 0.450% 0.400% 0.350% 0.325% 0.300%
Alliance Conservative Investors...... 0.475% 0.425% 0.375% 0.350% 0.325%
Alliance High Yield.................. 0.600% 0.575% 0.550% 0.530% 0.520%
Alliance Quality Bond................ 0.525% 0.500% 0.475% 0.455% 0.445%
Alliance Intermediate Government
Securities........................ 0.500% 0.475% 0.450% 0.430% 0.420%
Alliance Equity Index................ 0.325% 0.300% 0.275% 0.255% 0.245%
Alliance Money Market................ 0.350% 0.325% 0.300% 0.280% 0.270%
<FN>
* On assets in excess of $10 billion, the management fee for the Alliance Common Stock Portfolio is reduced to 0.335% of average
daily net assets.
</FN>
</TABLE>
Investment advisory fees are established under investment advisory agreements
between the Trust and its investment adviser, Alliance. All of these fees and
expenses are described more fully in the Trust prospectus. Since Trust shares
are purchased at their net asset value, these fees and expenses are, in effect,
passed on to the Separate Account and are reflected in the Accumulation Unit
Values for the Investment Funds.
CHARGES FOR STATE PREMIUM AND OTHER
APPLICABLE TAXES
Currently, we deduct a charge for applicable taxes, such as state or local
premium taxes, from the amount applied to provide an annuity distribution option
if elected. The current tax charge that might be imposed varies by state and
ranges from 0% to 2.25%; however, the rate is 1% in Puerto Rico and 5% in the
Virgin Islands.
We reserve the right to deduct any such charge from each contribution or from
distributions or upon termination. If we have deducted any applicable tax
charges from contributions, we will not deduct a charge for the same taxes at a
later time. If, however, an additional tax is later imposed upon us when you
withdraw from, terminate or annuitize, we reserve the right to deduct a charge
at such time.
LIMITATION ON CHARGES
Under the terms of the MOMENTUM Contract for the Alliance Money Market, Alliance
Balanced, Alliance Common Stock and Alliance Aggressive Stock Funds, the
aggregate amount of the Separate Account charge made to those Funds, the Trust
charges for investment advisory fees and the direct
31
<PAGE>
operating expenses of the Trust may not exceed a total effective annual rate of
1.75% of the value of the assets held in those Funds for the MOMENTUM Contract.
CHARGES TO INVESTMENT FUNDS
We make a daily charge against the assets held in each of the 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 Alliance Money
Market, Alliance Balanced and Alliance 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 risk, .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. We assume a mortality risk by (a) our obligation to pay a death
benefit that will not be less than the total value of all contributions made
(less any applicable taxes) adjusted for total withdrawals, (b) our obligation
to make annuity payments for the life of the Annuitant under guaranteed fixed
annuity options, regardless of the Annuitant's longevity, (c) our guarantees
relating to annuity purchase rates, the actuarial basis for which can be changed
only for new contributions and only on the fifth anniversary of the Contract
Date and every five years thereafter, and (d) our obligation to waive the
contingent withdrawal charge upon the payment of a 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 discussed 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.
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 currently 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.
CHARGE FOR PLAN RECORDKEEPING
SERVICES
The annual charge for the basic plan recordkeeping option is $300 (prorated in
the first year) and will be billed directly to the Employer. The $300 charge is
not imposed on plans that converted to the MOMENTUM Contract from our EQUI-VEST
Corporate Trusteed Contract. 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. For this
service, a $25 checkwriting fee shall be charged by Equitable Life for each
check drawn. 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.
32
<PAGE>
There are additional charges if the Employer or Plan Trustee elects to use our
full service plan recordkeeping option; these additional charges will depend
upon the service used. Employers will be required to execute an agreement
governing additional recordkeeping 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.
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. Under Basic Service, the Plan Trustee must tell us the vested balance.
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 Section 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;
33
<PAGE>
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
recordkeeping 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.
34
<PAGE>
- --------------------------------------------------------------------------------
PART 7: VOTING RIGHTS
- --------------------------------------------------------------------------------
TRUST VOTING RIGHTS
As explained previously, contributions allocated to the Investment Funds are
invested in shares of the corresponding Portfolios of the 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 Trust's Board of Trustees,
o to ratify the selection of independent auditors for the Trust, and
o on any other matters described in the Trust's current prospectus or requiring
a vote by shareholders under the 1940 Act.
Because the 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 their Contracts. If we do not receive
instructions in time from all Participants or Plan Trustees, as applicable, 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 Participants or Plan Trustees, as applicable, vote.
All Trust shares are 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 Contract Owner
approval. In that case, Contract Owners 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 Divisions in the same
proportion as votes cast by Participants or Plan Trustees, as applicable.
VOTING RIGHTS OF OTHERS
Currently, we control the Trust. Trust shares 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 Contract Owners, we currently do not foresee any
disadvantages arising out of this. The 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 Trust's response to any of those events
insufficiently protects our Participants or Plan Trustees, as applicable, we
will see to it that appropriate action is taken to protect our Participants or
Plan Trustees, as applicable.
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.
35
<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 a 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.
Both employer and employee contributions to these plans are subject to a variety
of limitations, some of which are discussed here briefly. See your tax adviser
for more information. Violation of contribution limits may result in plan
disqualification and/or imposition of monetary penalties. The trustee or plan
administrator may make contributions on behalf of the plan participants which
are deductible from the employer's Federal gross income. Employer contributions
which exceed the amount currently deductible are subject to a 10% penalty tax.
The limits on the amount of contributions that can be made and/or forfeitures
that can be allocated to each participant in defined contribution plans is the
lesser of $30,000 or 25% of the compensation or earned income for each
participant. The employer may not consider compensation in excess of $160,000 in
calculating contributions to the plan. This amount may be adjusted for cost of
living changes in future years. For self-employed individuals, earned income is
defined so as to exclude deductible contributions made to all tax-qualified
retirement plans, including Keogh plans, and takes into account the deduction
for one-half the individual's self-employment tax. Deductions for aggregate
contributions to profit sharing plans may not exceed 15% of all participants'
compensation.
Special limits on contributions apply to anyone who participates in more than
one qualified plan or who controls another trade or business. In addition, there
is an overall limit on the total amount of contributions and benefits under all
tax-qualified retirement plans in which an individual participates. Special
limits on deductions for contributions to one or more defined contribution plans
and one or more defined benefit plans are in effect through 1999, but will be
eliminated thereafter.
A qualified plan may allow the participant to direct the employer to make
contributions which will not be
36
<PAGE>
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 ($9,500 as indexed
for inflation in 1997) under all salary reduction arrangements in which the
individual participates.
Effective for plan years beginning after December 31, 1997, the formula for
determining the overall limits on contributions and benefits will include
compensation in the form of elective deferrals and excludible contributions
under Code Section 457 plans and "cafeteria" plans giving employees a choice
between cash or excludible benefits.
A qualified plan must not discriminate in favor of highly compensated employees.
Highly compensated participants include five percent owners, employees earning
more than $80,000 for the prior year and employees who are in the top 20% of all
employees based on compensation. 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. Generally, these nondiscrimination tests
require an employer to compare the deferrals or the aggregate contributions, as
the case may be, made by the eligible highly compensated employees with those
made by the non-highly compensated employees, although alternative simplified
tests will be available in 1999. In addition, special "top heavy" rules apply to
plans where more than 60% of the contributions or benefits are allocated to
certain highly compensated employees known as "key employees."
Beginning in 1997, 401(k) plans can adopt a "SIMPLE 401(k)" feature which will
enable the plan to meet nondiscrimination requirements without testing. The
SIMPLE 401(k) feature requires the 401(k) plan to meet specified contribution,
vesting and exclusive plan requirements.
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," in
this section.
Income Taxation of Withdrawals
The amount of any distribution prior to the annuity starting date is treated as
ordinary income except to 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.
37
<PAGE>
As discussed in this section in "Certain Rules Applicable to Plan Loans," taking
a loan or failing to repay an outstanding loan as required may, in certain
situations, be treated as a taxable 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 after-tax contributions, plus any
employer contributions that had to be included in gross income in prior years.
If the participant has a cost basis in the annuity, a portion of each payment
received will be excluded from gross income to reflect the return of the cost
basis. The remainder of each payment will be includible in gross income as
ordinary income. The excludible portion is based on the ratio of the
participant's cost basis in the annuity on the annuity starting date to the
expected return, generally determined in accordance with a statutory table,
under the annuity as of such date. The full amount of the payments received
after the cost basis of the annuity is recovered is fully taxable. If there is a
refund feature under the annuity, the beneficiary of the refund may recover the
remaining cost basis as payments are made. If the participant (and beneficiary
under a joint and survivor annuity) die prior to recovering the full cost basis
of the annuity, a deduction is allowed on the participant's (or beneficiary's)
final tax return.
Income Taxation of Lump Sum Distributions
If benefits are paid in a lump sum, the payment may be eligible for the special
tax treatment accorded lump sum distributions. 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).
This provision will be eliminated after December 31, 1999.
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" in this section.
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 as an eligible rollover
distribution:
o any distribution to the extent that it is a required distribution under
Section 401(a)(9) of the Code (see "Distribution Requirements and Limits"
below);
o certain corrective distributions in plans subject to Sections 401(k), 401(m)
or 402(g) of the Code;
o loans that are treated as deemed distributions under Section 72(p) of the
Code;
o P.S. 58 costs (incurred if the plan provides life insurance protection for
participants);
o dividends paid on employer securities as described in Section 404(k) of the
Code; and
o a distribution to a non-spousal beneficiary.
If a distribution is made to a participant's surviving spouse, or to a current
or former spouse under a qualified domestic relations order, the distribution
may be an eligible rollover distribution, subject to mandatory 20% withholding,
unless one of the exceptions described above applies.
If distributions eligible for rollover are in fact rolled over, the favorable
averaging rules discussed above in "Income Taxation of Lump Sum Distributions"
will not be available for any future distributions made before 2000.
Penalty Tax on Premature Distributions
An additional 10% penalty tax is imposed on all taxable amounts distributed to a
participant who has not reached age 59 1/2 unless the distribution falls within
a specified exception or is rolled over into an IRA or other qualified plan. The
specified exceptions are for (a) distributions made on account of the
participant's death or disability, (b) distributions (which begin after
separation from service) in the form of a life annuity
38
<PAGE>
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 in this section 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 in this
section under "Eligible Rollover Distributions"). Contact your tax adviser to
see how state withholding may apply to your payment.
Distribution Requirements
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 (or retires from the employer sponsoring the plan, if later).
5% owners of qualified plans must commence minimum distributions after age 70
1/2 even if they are still working. Distributions can generally be made (1) in a
lump sum payment, (2) over the life of the participant, (3) over the joint lives
of the participant and his or her designated beneficiary, (4) over a period not
extending beyond the life expectancy of the participant or (5) over a period not
extending beyond the joint life expectancies of the participant and his or her
designated beneficiary. The minimum amount required to be distributed in each
year after minimum distributions are required to begin is described in the Code,
Treasury Regulations and IRS guidelines. If 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 year under the
plan must be completed within five years after death, unless payments to a
designated beneficiary begin within one year of the participant's death and are
made over the beneficiary's life or over a period certain which does not extend
beyond the beneficiary's life expectancy. If the surviving spouse is the
designated beneficiary, the spouse may delay the commencement of such payments
up until the date that the participant would have attained age 70 1/2.
Distributions received by a beneficiary are generally given the same tax
treatment the participant would have received if distribution had been made to
the participant.
If there is an insufficient distribution in any year, a 50% tax may be imposed
on the amount by which the minimum required to be distributed exceeds the amount
actually distributed. Failure to have distributions made as the Code and
Treasury Regulations require may result in plan disqualification.
The Code imposes a 15% excise tax 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. This tax is
temporarily suspended for distributions to the participant for the years 1997,
1998 and 1999. However, the excise tax continues to apply for estate tax
purposes. In certain cases the estate tax imposed on a deceased participant's
estate will be increased if the accumulated value of the participant's interest
in tax-favored retirement plans is excessive. The aggregate accumulations will
be subject to excise tax in 1997 if they exceed the present value of a
hypothetical life annuity paying $160,000 a year.
39
<PAGE>
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 unless 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 unless the loan is
used to acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level payments
over the term of the loan, with payments being made at least quarterly.
o The amount of a loan to a participant, when aggregated with all other loans
to the participant from all qualified plans of the employer, cannot exceed
the greater of $10,000 or 50% of the participant's 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 may
be required to include as ordinary income the unpaid amount due and a 10%
penalty tax on early distributions may apply. The plan should report the
amount of the unpaid loan balance to the IRS as a distribution. See "Tax
Aspects of Distributions from a Plan" in this section.
o The loan requirements and provisions of Momentum Plus 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 us being taxed, then
we may impose a charge against the Investment Funds (on some or all Contracts)
to provide for payment of such taxes.
40
<PAGE>
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 Momentum Plus 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
Representatives shall not be responsible if a plan fails to meet the
requirements of Section 404(c).
41
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
PART 1: ADDITIONAL INFORMATION ABOUT THE MOMENTUM PROGRAM Page 3
PART 2: HOW WE DEDUCT THE MOMENTUM QUARTERLY Page 4
ADMINISTRATIVE CHARGE
PART 3: DESCRIPTION OF CONTRIBUTION SOURCES FOR THE MOMENTUM Page 4
PROGRAM
PART 4: ADDITIONAL LOAN PROVISIONS Page 5
PART 5: AUTOMATIC MINIMUM WITHDRAWAL OPTION Page 6
PART 6: ACCUMULATION UNIT VALUES Page 6
PART 7: CALCULATION OF ANNUITY PAYMENTS Page 6
PART 8: THE REORGANIZATION Page 8
PART 9: ALLIANCE MONEY MARKET FUND YIELD INFORMATION Page 8
PART 10: OTHER YIELD INFORMATION Page 9
PART 11: DISTRIBUTION Page 9
PART 12: LONG-TERM MARKET TRENDS Page 9
PART 13: CUSTODIAN AND INDEPENDENT ACCOUNTANTS Page 11
PART 14: FINANCIAL STATEMENTS Page 11
HOW TO OBTAIN THE MOMENTUM STATEMENT OF
ADDITIONAL INFORMATION
Call 1-800-528-0204 or send this request form to:
-----------------------------------------------
MOMENTUM Administrative Services
P.O. Box 2919
New York, NY 10116
-----------------------------------------------
Please send me a Statement of Additional Information dated May 1, 1997
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
42
<PAGE>
MOMENTUM
EMPLOYER-SPONSORED RETIREMENT PROGRAMS
STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1997
-----------------
VARIABLE ANNUITY CONTRACTS FUNDED THROUGH THE
INVESTMENT FUNDS OF SEPARATE ACCOUNT A
<TABLE>
<S> <C> <C>
O ALLIANCE MONEY MARKET O ALLIANCE EQUITY INDEX ALLIANCE ASSET ALLOCATION SERIES:
O ALLIANCE INTERMEDIATE O ALLIANCE COMMON STOCK O ALLIANCE CONSERVATIVE INVESTORS
GOVERNMENT SECURITIES
O ALLIANCE GLOBAL O ALLIANCE BALANCED
O ALLIANCE QUALITY BOND
O ALLIANCE INTERNATIONAL O ALLIANCE GROWTH INVESTORS
O ALLIANCE HIGH YIELD
O ALLIANCE AGGRESSIVE STOCK
O ALLIANCE GROWTH &
INCOME O ALLIANCE SMALL CAP GROWTH
</TABLE>
ISSUED BY:
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
- --------------------------------------------------------------------------------
Home Office: 1290 Avenue of the Americas, New York, NY 10104
Processing Office: Momentum Administrative Service
P. O. Box 2919
New York, N.Y. 10116
- --------------------------------------------------------------------------------
This statement of additional information (SAI) is not a prospectus. It should be
read in conjunction with the Separate Account A prospectus for MOMENTUM, dated
May 1, 1997. 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, 1-800-528-0204, or by contacting your Equitable
Life Representative.
- --------------------------------------------------------------------------------
Copyright 1997 The Equitable Life Assurance Society of the United States,
New York, New York 10104
All rights reserved.
-------------------- Cat. No. 127300
888-1130
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
PAGE
- --------------------------------------------------------------------------------
Part 1 Additional Information about the MOMENTUM Program 3
- --------------------------------------------------------------------------------
Part 2 How We Deduct the MOMENTUM Quarterly Administrative Charge 4
- --------------------------------------------------------------------------------
Part 3 Description of Contribution Sources for the MOMENTUM Program 4
- --------------------------------------------------------------------------------
Part 4 Additional Loan Provisions 5
- --------------------------------------------------------------------------------
Part 5 Automatic Minimum Withdrawal Option 5
- --------------------------------------------------------------------------------
Part 6 Accumulation Unit Values 6
- --------------------------------------------------------------------------------
Part 7 Calculation of Annuity Payments 6
- --------------------------------------------------------------------------------
Part 8 The Reorganization 8
- --------------------------------------------------------------------------------
Part 9 Alliance Money Market Fund Yield Information 8
- --------------------------------------------------------------------------------
Part 10 Other Alliance Yield Information 9
- --------------------------------------------------------------------------------
Part 11 Distribution 9
- --------------------------------------------------------------------------------
Part 12 Long-Term Market Trends 9
- --------------------------------------------------------------------------------
Part 13 Custodian and Independent Accountants 11
- --------------------------------------------------------------------------------
Part 14 Financial Statements 11
- --------------------------------------------------------------------------------
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.
The Master Plan provides that a sole proprietor, partner or shareholder may
elect not to participate in the plan. However, due to provisions of the Code,
all employees may have to be covered under the plan even if they previously
elected not to participate.
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. The normal retirement age is 65 under the Master Plan.
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:
SCHEDULE A SCHEDULE B SCHEDULE C
YEARS OF VESTED VESTED VESTED
SERVICE PERCENTAGE PERCENTAGE PERCENTAGE
- ------------------------------------------------------
1 0% 0% 0%
2 100 20 0
3 100 40 100
4 100 60 100
5 100 80 100
6 100 100 100
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:
SCHEDULE F SCHEDULE G
YEARS OF VESTED VESTED
SERVICE PERCENTAGE PERCENTAGE
- ---------------------------------------------------
less than 3 0% 0%
3 20 0
4 40 0
5 60 100
6 80 100
7 100 100
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.
3
<PAGE>
- --------------------------------------------------------------------------------
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 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, Alliance Common Stock, Alliance
Balanced, Alliance Aggressive Stock, Alliance Money Market, Alliance
Intermediate Government Securities, Alliance Growth Investors, Alliance
Conservative Investors, Alliance High Yield, Alliance Global, Alliance Growth &
Income, Alliance Equity Index, Alliance Quality Bond, Alliance International and
Alliance Small Cap Growth 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 Alliance Common Stock
Fund, then Alliance 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.
4
<PAGE>
- --------------------------------------------------------------------------------
PART 4 -- ADDITIONAL LOAN PROVISIONS
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 the
prospectus "Part 8: 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.
- --------------------------------------------------------------------------------
PART 5 -- AUTOMATIC MINIMUM WITHDRAWAL OPTION
If you elect this feature designed for Participants age 70 1/2 or older,
described in the prospectus, each year we calculate your minimum distribution
amount by using the Retirement Account Value 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 Automatic Minimum Withdrawal Option 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, recalculating it each year. If you do not specify that we
should recalculate life expectancy, you cannot later apply your 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 Automatic Minimum Withdrawal Option is
elected in the year in which the Participant 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.
Automatic Minimum Withdrawal Option should not be elected if the Participant
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 Automatic Minimum Withdrawal option does not provide for all the
5
<PAGE>
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 6 -- 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 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
Trust. This share value is after deduction for investment advisory fees and
direct expenses of the 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 7 -- 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. 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.
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. The initial payment will be calculated using the basis guarantee
in the Contract or our current basis, whichever would provide the higher initial
benefit.
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
6
<PAGE>
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 Retirement Account Value 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 1996, the annuity payment due in December 1996 would be $95.19 (the
number of units (26.74) times $3.56).
The examples below (which exclude the Alliance Small Cap Growth Portfolio) show
what the annuity payment would have been for December 31, 1996 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:
BASE ONE THREE FIVE TEN SINCE
RATE YEAR YEARS YEARS YEARS INCEPTION
- --------------------------------------------------------------------------------
Alliance
Money
Market 3.50% $716.35 $716.17 $693.91 $784.55 --
5.00% 786.19 763.37 718.20 756.54 --
Alliance
Intermediate
Government
Securities 3.50% 704.51 693.82 735.97 -- $795.66
5.00% 773.18 739.68 762.03 -- 814.86
Alliance
Quality
Bond 3.50% 705.88 712.40 -- -- 700.37
5.00% 774.68 759.48 -- -- 743.94
Alliance
High Yield 3.50% 816.26 866.87 1,089.16 1,274.03 --
5.00% 898.03 924.16 1,127.73 1,226.45 --
Alliance
Growth &
Income 3.50% 762.11 854.36 -- -- 842.06
5.00% 836.40 910.83 -- -- 894.45
Alliance
Equity
Index 3.50% 788.28 -- -- -- 996.12
5.00% 865.12 -- -- -- 1,064.50
Alliance
Common 3.50% 795.02 935.87 1,094.81 1,817.17 --
Stock 5.00% 872.52 998.23 1,134.75 1,757.73 --
Alliance 3.50% 750.83 853.12 1,018.75 -- 1,236.19
Global 5.00% 824.02 909.50 1,054.81 -- 1,201.33
Alliance 3.50% 733.56 -- -- -- 783.75
International 5.00% 805.07 -- -- -- 850.99
Alliance
Aggressive 3.50% 820.36 945.07 972.33 2,254.89 --
Stock 5.00% 900.34 1,006.33 1,003.82 2,157.52 --
The Alliance
Asset
Allocation
Series:
Alliance
Conservative 3.50% 700.57 735.13 782.52 -- 923.66
Investors 5.00% 768.86 783.71 810.23 -- 925.54
Alliance 3.50% 739.57 739.97 733.51 1,141.76 --
Balanced 5.00% 811.66 789.22 759.86 1,104.16 --
Alliance
Growth 3.50% 743.76 827.28 908.98 -- 1,398.03
Investors 5.00% 816.26 881.95 941.16 -- 1,400.88
7
<PAGE>
- --------------------------------------------------------------------------------
PART 8 -- 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 Alliance Money Market
Fund, the Alliance Balanced Fund, the Alliance Common Stock Fund and the
Alliance 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 Alliance Money Market, Alliance Balanced, Alliance
Common Stock and Alliance 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 9 -- ALLIANCE MONEY MARKET FUND YIELD INFORMATION
The Alliance 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 Alliance
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 quarterly administrative charge that is deducted
from the Alliance Money Market Fund will vary for each Participant depending
upon how the Retirement Account Value is allocated among the Investment Options.
To determine the effect of the quarterly administrative charge on the yield, we
start with the total dollar amount of the charges deducted from the Fund during
the twelve month period ending on the last day of the prior year divided by 4.
This amount is multiplied by 7/91.25 to produce an average administrative charge
factor which is used in all weekly yield computations for the ensuing quarter.
The average administrative charge is then divided by the number of Momentum
Alliance Money Market Fund Accumulation Units 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 Alliance Money Market Fund's investments, as
follows: the unannualized adjusted base period return is compounded by adding
one to the adjusted base period return, raising the sum to a power equal to 365
divided by 7, and subtracting one from the result, i.e., effective yield = (base
period return +1) 365/7-1. The Alliance 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 Alliance Money Market Fund will fluctuate and not remain constant.
8
<PAGE>
The Alliance 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. The Alliance Money Market Fund yields
should not be compared to the return on fixed-rate investments which guarantee
rates of interest for specified periods, such as the Guaranteed Interest Account
or bank deposits. The yield should not be compared to the yield of money market
funds made available to the general public because their yields usually are
calculated on the basis of a constant $1 price per share and they pay out
earnings in dividends which accrue on a daily basis.
The seven-day current yield for the Alliance Money Market Fund was 3.67% for the
period ended December 31, 1996. The effective yield for the Alliance Money
Market Fund for that period was 3.72%. Because these yields reflect the
deduction of Separate Account expenses, including the quarterly administrative
charge, they are lower than the corresponding yield figures for the Alliance
Money Market Portfolio which reflect only the deduction of Trust-level expenses.
- --------------------------------------------------------------------------------
PART 10 -- OTHER ALLIANCE YIELD INFORMATION
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, 1996 were 3.98% for the
Alliance Intermediate Government Securities Fund, 4.37% for the Alliance Quality
Bond Fund and 9.07% for the Alliance 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 11 -- DISTRIBUTION
EQ Financial Consultants, Inc. (EQF), 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. EQF is also the principal
underwriter of the Trust. EQF 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. EQF's principal business
address is 1755 Broadway, New York, New York 10019. MOMENTUM is sold by
Equitable Life Representatives who are registered representatives of EQF.
- --------------------------------------------------------------------------------
PART 12 -- 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.
9
<PAGE>
Growth of $1 Invested on January 1, 1956
(Values as of the last business day)
[GRAPHIC OMITTED]
The following table of values was represented graphically as a shaded line
graph entitled "Growth of $1 Invested on January 1, 1956 (Values are as of last
business day)" which appears on page 10 of the printed Statement of Additional
Information:
Common Stocks Inflation
------------- ---------
1956 1.07 1.03
1957 0.95 1.06
1958 1.36 1.08
1959 1.53 1.09
1960 1.53 1.11
1961 1.95 1.12
1962 1.78 1.13
1963 2.18 1.15
1964 2.54 1.16
1965 2.86 1.19
1966 2.57 1.23
1967 3.18 1.26
1968 3.54 1.32
1969 3.24 1.40
1970 3.37 1.48
1971 3.85 1.53
1972 4.58 1.58
1973 3.91 1.72
1974 2.87 1.93
1975 3.94 2.07
1976 4.88 2.17
1977 4.53 2.31
1978 4.83 2.52
1979 5.72 2.86
1980 7.57 3.21
1981 7.20 3.50
1982 8.74 3.64
1983 10.71 3.77
1984 11.38 3.92
1985 15.04 4.07
1986 17.81 4.12
1987 18.75 4.30
1988 21.90 4.49
1989 28.79 4.70
1990 27.88 4.99
1991 36.40 5.14
1992 39.19 5.29
1993 43.10 5.43
1994 43.67 5.58
1995 60.01 5.72
1996 73.86 5.92
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 reflects
the volatility inherent in the investment of common stocks.
Growth of $1 invested on January 1, 1990
(Values are as of last business day)
[GRAPHIC OMITTED]
The following table of values was represented graphically as a line graph
entitled "Growth of $1 invested on January 1, 1990 (Values are as of last
business day)" which appears on page 10 of the printed Statement of Additional
Information:
Intermediate Term
Government Bonds Common Stocks
---------------- -------------
1/1/90 1.00 1.00
Jan 0.99 0.93
Feb 0.99 0.94
Mar 0.99 0.97
Apr 0.98 0.95
May 1.01 1.04
Jun 1.02 1.03
Jul 1.04 1.03
Aug 1.03 0.93
Sep 1.04 0.89
Oct 1.06 0.89
Nov 1.08 0.94
Dec 1.10 0.97
The following chart illustrates average annual rates of return over selected
time periods between December 31, 1926 and December 31, 1996 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 Trust and Separate Account charges), see "Investment Fund
Performance" in Part 3 of the prospectus.
10
<PAGE>
- --------------------------------------------------------------------------------
MARKET TRENDS:
ILLUSTRATIVE ANNUAL RATES OF RETURN
<TABLE>
<CAPTION>
LONG-TERM LONG-TERM INTERMEDIATE- CONSUMER
FOR THE FOLLOWING PERIODS COMMON GOVT. CORPORATE TERM U.S. TREASURY PRICE
ENDING 12/31/96: STOCKS BONDS BONDS GOVT. BONDS BILLS INDEX
- ---------------------------- --------- ------------ ------------ -------------- -------------- -----------
<C> <C> <C> <C> <C> <C> <C>
1 Year..................... 23.07% -0.93% 1.40% 2.10% 5.21% 3.58%
3 Years ................... 19.66 6.36 6.72 4.19 4.90 2.93
5 Years.................... 15.20 8.98 8.52 6.17 4.22 2.89
10 Years................... 15.28 9.39 9.48 7.77 5.46 3.70
20 Years................... 14.55 9.54 9.71 9.14 7.28 5.15
30 Years................... 11.85 7.75 8.24 8.27 6.73 5.39
40 Years................... 11.18 6.51 6.99 7.08 5.80 4.47
50 Years................... 12.59 5.33 5.76 5.89 4.89 4.08
60 Years................... 11.19 5.06 5.38 5.32 4.10 4.13
Since 1926................. 10.71 5.08 5.64 5.21 3.74 3.12
Inflation Adjusted
since 1926............ 7.36 1.90 2.44 2.02 0.60
</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 13 -- 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 as of December 31, 1996 and for each of the two years
in the period then ended for the Separate Account and the financial statements
as of December 31, 1996 and December 31, 1995 and for each of the three years
ended December 31, 1996 for Equitable Life have been audited by Price Waterhouse
LLP, as stated in its reports. These financial statements included in this SAI
have been so included in reliance on the reports of Price Waterhouse LLP,
independent accountants, given the authority of such firm as experts in
accounting and auditing.
- --------------------------------------------------------------------------------
PART 14 -- 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.
11
<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 the 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, 1996, 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, 1996 with the transfer agent, provide a reasonable basis for the
opinion expressed above. The unit value information presented in Note 6 for the
year ended December 31, 1992 and for each of the periods indicated prior
thereto, were audited by other independent accountants whose report dated
February 16, 1993 expressed an unqualified opinion on the financial statements
containing such information.
Price Waterhouse LLP
New York, New York
February 10, 1997
FSA-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
INTERMEDIATE
COMMON GOVERNMENT
STOCK SECURITIES
FUND FUND
----------------- -------------------
<S> <C> <C>
ASSETS:
Investments in shares of The Hudson River Trust, at market value (Note 2):
Cost: $3,561,855,207.................................................. $4,335,729,549
29,929,472.................................................. $29,956,488
94,721,024..................................................
1,095,836,659..................................................
2,874,726,262..................................................
508,888,790..................................................
82,715,248..................................................
77,333,927..................................................
447,059,909..................................................
145,853,361..................................................
26,450,265..................................................
251,489,348..................................................
96,579,363..................................................
Receivable for The Hudson River Trust shares sold....................... -- --
Due from Equitable Life's General Account (Note 3)...................... 10,481,008 728,944
-------------- -----------
Total assets................................................. 4,346,210,557 30,685,432
-------------- -----------
LIABILITIES:
Payable for The Hudson River Trust shares purchased..................... 9,509,685 726,896
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)........................... 4,002,772 530,344
-------------- -----------
Total liabilities............................................ 13,512,457 1,257,240
-------------- -----------
NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS (NOTE 5)..................... $4,332,698,100 $29,428,192
============== ===========
EQUI-VEST Contracts:
Unit Value........................................................... $ 199.05
==============
Units Outstanding.................................................... 16,933,077
==============
Old Contracts:
Unit Value........................................................... $ 246.57
==============
Units Outstanding.................................................... 345,375
==============
EQUIPLAN Contracts:
Unit Value........................................................... $ 267.08 $ 51.34
============== ===========
Units Outstanding.................................................... 95,900 54,504
============== ===========
Momentum Contracts:
Unit Value........................................................... $ 199.05 $ 112.40
============== ===========
Units Outstanding.................................................... 519,338 9,968
============== ===========
Momentum Plus Contracts: 135 B.P.
Unit Value........................................................... $ 162.39 $ 108.45
============== ===========
Units Outstanding.................................................... 1,038,789 81,035
============== ===========
Enhanced Momentum Plus Contracts: 100 B.P.
Unit Value........................................................... $ 125.89 $ 105.75
============== ===========
Units Outstanding.................................................... 140,022 2,456
============== ===========
EQUI-VEST Series 300 and 400 Contracts:
Unit Value........................................................... $ 155.42 $ 112.40
============== ===========
Units Outstanding.................................................... 3,457,482 146,433
============== ===========
<CAPTION>
MONEY
MARKET BALANCED
FUND FUND
------------------ ----------------
<S> <C> <C>
ASSETS:
Investments in shares of The Hudson River Trust, at market value (Note 2):
Cost: $3,561,855,207....................................................
29,929,472....................................................
94,721,024.................................................... $94,367,905
1,095,836,659.................................................... $1,122,444,797
2,874,726,262....................................................
508,888,790....................................................
82,715,248....................................................
77,333,927....................................................
447,059,909....................................................
145,853,361....................................................
26,450,265....................................................
251,489,348....................................................
96,579,363....................................................
Receivable for shares of The Hudson River Trust......................... -- --
Due from Equitable Life's General Account (Note 3)...................... 3,735,501 1,213,821
----------- --------------
Total assets................................................. 98,103,406 1,123,658,618
----------- --------------
LIABILITIES:
Payable for The Hudson River Trust shares purchased..................... 3,722,471 931,572
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)........................... 566,137 991,204
----------- --------------
Total liabilities............................................ 4,288,608 1,922,776
----------- --------------
NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS (NOTE 5)..................... $93,814,798 $1,121,735,842
=========== ==============
EQUI-VEST Contracts:
Unit Value........................................................... $ 28.28 $ 34.06
=========== ==============
Units Outstanding.................................................... 1,013,504 28,319,497
=========== ==============
Old Contracts:
Unit Value........................................................... $ 33.52
===========
Units Outstanding.................................................... 129,377
===========
EQUIPLAN Contracts:
Unit Value...........................................................
Units Outstanding....................................................
Momentum Contracts:
Unit Value........................................................... $ 28.28 $ 34.06
=========== ==============
Units Outstanding.................................................... 240,469 1,056,984
=========== ==============
Momentum Plus Contracts: 135 B.P.
Unit Value........................................................... $ 111.75 $ 120.01
=========== ==============
Units Outstanding.................................................... 307,236 417,374
=========== ==============
Enhanced Momentum Plus Contracts: 100 B.P.
Unit Value........................................................... $ 105.65 $ 114.16
=========== ==============
Units Outstanding.................................................... 13,091 48,342
=========== ==============
EQUI-VEST Series 300 and 400 Contracts:
Unit Value........................................................... $ 111.21 $ 119.26
=========== ==============
Units Outstanding.................................................... 164,510 547,899
=========== ==============
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>
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>
$2,978,162,769
$530,496,700
$85,864,836
$78,578,208
$496,558,219
$164,318,806
$26,718,392
$275,271,126
$97,814,272
$ 3,430,056 -- -- -- -- -- -- -- --
-- 3,672,772 202,365 883,577 2,467,309 187,056 39,620 2,469,315 1,345,033
-------------- ------------ ----------- ----------- ------------ ------------ ----------- ------------ -----------
2,981,592,825 534,169,472 86,067,201 79,461,785 499,025,528 164,505,862 26,758,012 277,740,441 99,159,305
-------------- ------------ ----------- ----------- ------------ ------------ ----------- ------------ -----------
-- 3,642,884 197,565 879,253 2,439,129 177,589 38,118 2,453,538 1,339,777
2,870,406 -- -- -- -- -- -- -- --
2,148,689 1,115,959 618,084 621,294 1,132,134 821,976 370,628 940,199 631,968
-------------- ------------ ----------- ----------- ------------ ------------ ----------- ------------ -----------
5,019,095 4,758,843 815,649 1,500,547 3,571,263 999,565 408,746 3,393,737 1,971,745
-------------- ------------ ----------- ----------- ------------ ------------ ----------- ------------ -----------
$2,976,573,730 $529,410,629 $85,251,552 $77,961,238 $495,454,265 $163,506,297 $26,349,266 $274,346,704 $97,187,560
============== ============ =========== =========== ============ ============ =========== ============ ===========
$ 82.91
==============
27,944,829
==============
$ 82.91 $ 133.40 $ 117.25 $ 137.53 $ 138.00 $ 143.37 $ 112.65 $ 164.12 $ 112.83
============== ============ =========== =========== ============ =========== =========== ============ ===========
1,280,795 110,156 18,037 17,693 116,291 $ 40,724 7,151 50,637 $ 19,243
============== ============ =========== =========== ============ =========== =========== ============ ===========
$ 157.31 $ 134.95 $ 114.99 $ 146.80 $ 140.51 $ 143.63 $ 118.87 $ 164.08 $ 112.81
============== ============ =========== =========== ============ =========== =========== ============ ===========
1,069,755 508,163 136,101 94,258 459,301 121,071 28,090 128,114 54,264
============== ============ =========== =========== ============ =========== =========== ============ ===========
$ 125.54 $ 116.95 $ 109.47 $ 127.46 $ 116.37 $ 123.61 $ 108.84 $ 129.70 $ 112.96
============== ============ =========== =========== ============ =========== =========== ============ ===========
108,967 14,660 4,631 5,119 12,859 3,028 1,346 4,356 20,736
============== ============ =========== =========== ============ =========== =========== ============ ===========
$ 149.41 $ 133.40 $ 117.25 $ 137.53 $ 138.00 $ 143.37 $ 112.65 $ 164.12 $ 112.83
============== ============ =========== =========== ============ =========== =========== ============ ===========
2,468,117 3,325,391 566,674 443,564 2,994,609 975,463 195,675 1,486,286 763,266
============== ============ =========== =========== ============ =========== =========== ============ ===========
</TABLE>
FSA-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
INTERMEDIATE
COMMON GOVERNMENT
STOCK SECURITIES
FUND FUND
------------------ --------------
<S> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Hudson River Trust...................................... $ 31,566,792 $1,519,758
------------ ----------
Expenses (Note 3):
Mortality risk, death benefit, expense
and expense risk charges................................................... 46,430,265 331,809
Financial accounting charges................................................. 7,403,072 2,282
------------ ----------
Total expenses........................................................... 53,833,337 334,091
Less: Reduction for expense limitation......................................... 3,610,439 6,759
------------ ----------
Net expenses............................................................. 50,222,898 327,332
------------ -----------
NET INVESTMENT INCOME (LOSS)................................................... (18,656,106) 1,192,426
------------ ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments.......................................... 39,373,745 (84,183)
Realized gain distribution from The Hudson River Trust....................... 427,747,972 --
------------ ----------
Net realized gain (loss)................................................... 467,121,717 (84,183)
Change in unrealized appreciation / depreciation
of investments............................................................. 326,272,321 (386,046)
------------ ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS............................................................... 793,394,038 (470,229)
------------ ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2)........................................... $774,737,932 $ 722,197
============ ==========
</TABLE>
<TABLE>
<CAPTION>
MONEY
MARKET BALANCED
FUND FUND
-------------- ---------------
<S> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Hudson River Trust...................................... $4,218,305 $ 34,404,660
---------- ------------
Expenses (Note 3):
Mortality risk, death benefit, expense
and expense risk charges................................................... 1,074,903 13,751,604
Financial accounting charges................................................. 81,875 2,377,664
---------- ------------
Total expenses............................................................. 1,156,778 16,129,268
Less: Reduction for expense limitation......................................... 61,777 1,391,968
---------- ------------
Net expenses............................................................... 1,095,001 14,737,300
---------- ------------
NET INVESTMENT INCOME (LOSS)................................................... 3,123,304 19,667,360
---------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments.......................................... 137,830 10,957,701
Realized gain distribution from The Hudson River Trust....................... -- 89,931,643
---------- ------------
Net realized gain (loss)................................................... 137,830 100,889,344
Change in unrealized appreciation / depreciation
of investments............................................................. 15,587 (15,177,682)
---------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS............................................................... 153,417 85,711,662
---------- ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2)........................................... $3,276,721 $105,379,022
========== ============
- -------------------------
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>
FSA-4
<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>
$ 6,308,285 $10,897,241 $3,720,544 $5,697,177 $ 7,691,416 $ 2,196,949 $1,526,764 $ 3,410,663 $1,321,160
- ------------ ----------- ---------- ---------- ----------- ----------- ---------- ----------- ----------
30,066,070 5,764,371 1,085,516 713,632 5,512,550 1,513,551 298,999 2,395,042 833,724
5,350,128 26,080 4,022 3,821 28,760 8,736 1,522 11,293 2,203
- ------------ ----------- ---------- ---------- ----------- ----------- ---------- ----------- ----------
35,416,198 5,790,451 1,089,538 717,453 5,541,310 1,522,287 300,521 2,406,335 835,927
1,421,353 -- -- -- -- -- -- -- --
- ------------ ----------- ---------- ---------- ----------- ------------ ---------- ----------- ----------
33,994,845 5,790,451 1,089,538 717,453 5,541,310 1,522,287 300,521 2,406,335 835,927
- ------------ ----------- ---------- ----------- ----------- ----------- ---------- ----------- ----------
(27,686,560) 5,106,790 2,631,006 4,979,724 2,150,106 674,662 1,226,243 1,004,328 485,233
- ------------ ----------- ---------- ---------- ----------- ----------- ---------- ----------- ----------
71,385,003 662,873 107,618 145,474 1,492,445 1,338,928 280,060 3,349,216 1,250,399
507,021,043 51,790,058 2,134,857 4,152,172 20,816,121 8,336,410 -- 10,841,897 1,722,567
- ------------ ----------- ---------- ---------- ----------- ----------- ---------- ------------ ----------
578,406,046 52,452,931 2,242,475 4,297,646 22,308,566 9,675,338 280,060 14,191,113 2,972,966
(87,392,419) (9,867,072) (1,503,698) 721,266 26,407,595 10,940,166 (469,209) 19,487,539 1,086,851
- ------------ ----------- ---------- ---------- ----------- ----------- ---------- ----------- ----------
491,013,627 42,585,859 738,777 5,018,912 48,716,161 20,615,504 (189,149) 33,678,652 4,059,817
- ------------ ----------- ---------- ---------- ----------- ----------- ---------- ----------- ----------
$463,327,067 $47,692,649 $3,369,783 $9,998,636 $50,866,267 $21,290,166 $1,037,094 $34,682,980 $4,545,050
============ =========== ========== ========== =========== =========== ========== =========== ==========
</TABLE>
FSA-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
COMMON STOCK FUND
-----------------------------------------------
1996 1995
--------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)....................................... $ (18,656,106) $ 2,782,104
Net realized gain (loss) on investments............................ 467,121,717 206,999,733
Change in unrealized appreciation/
(depreciation) of investments.................................... 326,272,321 498,084,127
-------------- --------------
Net increase in net assets from operations........................... 774,737,932 707,865,964
-------------- --------------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions.................................................... 453,359,975 323,872,865
Transfers from other Funds and
Guaranteed Interest Account.................................... 762,624,599 563,350,890
-------------- --------------
Total........................................................ 1,215,984,574 887,223,755
-------------- --------------
Payments, Transfers and Charges:
Annuity payments, withdrawals and death benefits................... 220,362,060 159,386,173
Transfers to other Funds and
Guaranteed Interest Account...................................... 607,476,726 467,919,413
Withdrawal and administrative charges.............................. 5,572,073 4,834,457
-------------- --------------
Total........................................................ 833,410,859 632,140,043
-------------- ---------------
Net increase (decrease) in net assets
from Contract Owners transactions................................ 382,573,715 255,083,712
-------------- --------------
Net (increase) decrease in amount retained
by Equitable Life in Separate Account A (Note 3)................. (2,598,917) (202,590)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS..................................... 1,154,712,730 962,747,086
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS..................................... 3,177,985,370 2,215,238,284
-------------- --------------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACT OWNERS..................................... $4,332,698,100 $3,177,985,370
============== ==============
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT SECURITIES
FUND
-----------------------------------------------
1996 1995
-------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)....................................... $ 1,192,426 $ 860,197
Net realized gain (loss) on investments............................ (84,183) (262,021)
Change in unrealized appreciation/
(depreciation) of investments.................................... (386,046) 1,263,426
----------- -----------
Net increase in net assets from operations........................... 722,197 1,861,602
----------- -----------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions.................................................... 9,100,062 7,369,681
Transfers from other Funds and
Guaranteed Interest Account.................................... 7,049,068 6,382,251
----------- -----------
Total........................................................ 16,149,130 13,751,932
----------- -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals and death benefits................... 3,753,601 1,010,469
Transfers to other Funds and
Guaranteed Interest Account...................................... 5,943,526 3,875,451
Withdrawal and administrative charges.............................. 45,485 13,622
----------- -----------
Total........................................................ 9,742,612 4,899,542
----------- -----------
Net increase (decrease) in net assets
from Contract Owners transactions................................ 6,406,518 8,852,390
----------- -----------
Net (increase) decrease in amount retained
by Equitable Life in Separate Account A (Note 3)................. (24,319) (29,531)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS.................................... 7,104,396 10,684,461
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS.................................... 22,323,796 11,639,335
----------- -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACT OWNERS.................................... $29,428,192 $22,323,796
=========== ===========
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>
FSA-6
<PAGE>
<TABLE>
<CAPTION>
MONEY MARKET FUND BALANCED FUND
- ---------------------------------- ------------------------------------------
1996 1995 1996 1995
- --------------- ---------------- ------------------- -------------------
<S> <C> <C> <C>
$ 3,123,304 $ 2,822,581 $ 19,667,360 $ 19,159,882
137,830 111,769 100,889,344 36,369,212
15,587 244,984 (15,177,682) 107,611,597
------------ ------------ -------------- --------------
3,276,721 3,179,334 105,379,022 163,140,691
------------ ------------ -------------- --------------
119,080,405 96,460,995 102,324,455 100,845,169
28,258,231 11,693,688 107,478,067 72,926,145
------------ ------------ -------------- --------------
147,338,636 108,154,683 209,802,522 173,771,314
------------ ------------ -------------- --------------
15,180,565 9,756,910 78,989,041 70,581,767
119,609,249 112,024,444 154,003,205 140,405,721
206,649 141,480 2,085,995 2,326,794
------------ ------------ -------------- --------------
134,996,463 121,922,834 235,078,241 213,314,282
------------ ------------ -------------- --------------
12,342,173 (13,768,151) (25,275,719) (39,542,968)
------------ ------------ -------------- --------------
(61,393) (60,820) (481,189) (639,643)
------------ ------------ -------------- --------------
15,557,501 (10,649,637) 79,622,114 122,958,080
78,257,297 88,906,934 1,042,113,728 919,155,648
------------ ------------ -------------- --------------
$ 93,814,798 $ 78,257,297 $1,121,735,842 $1,042,113,728
============ ============ ============== ==============
</TABLE>
<TABLE>
<CAPTION>
GROWTH
INVESTORS
AGGRESSIVE STOCK FUND FUND
- --------------------------------------- -----------------------------------
1996 1995 1996 1995
- ---------------- ----------------- ---------------- ---------------
<C> <C> <C> <C>
$ (27,686,560) $ (17,076,859) $ 5,106,790 $ 4,630,881
578,406,046 274,491,290 52,452,931 4,190,451
(87,392,419) 201,133,502 (9,867,072) 35,365,665
-------------- -------------- ------------ ------------
463,327,067 458,547,933 47,692,649 44,186,997
-------------- -------------- ------------ ------------
390,313,679 255,277,523 130,147,052 88,478,478
1,303,527,875 937,308,527 121,414,460 96,710,983
-------------- -------------- ------------ ------------
1,693,841,554 1,192,586,050 251,561,512 185,189,461
-------------- -------------- ------------ ------------
154,410,598 101,140,511 25,722,728 8,656,331
1,118,235,181 890,032,461 49,453,027 31,783,310
4,762,116 4,012,965 776,045 329,796
-------------- -------------- ------------ ------------
1,277,407,895 995,185,937 75,951,800 40,769,437
-------------- -------------- ------------ ------------
416,433,659 197,400,113 175,609,712 144,420,024
-------------- -------------- ------------ ------------
(596,353) (703,992) (212,924) (69,190)
-------------- --------------- ------------ ------------
879,164,373 655,244,054 223,089,437 188,537,831
2,097,409,357 1,442,165,303 306,321,192 117,783,361
-------------- -------------- ------------ ------------
$2,976,573,730 $2,097,409,357 $529,410,629 $306,321,192
============== ============== ============ ============
</TABLE>
FSA-7
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
CONSERVATIVE
INVESTORS FUND HIGH YIELD FUND
------------------------------- ---------------------------------
1996 1995 1996 1995
--------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........................ $ 2,631,006 $ 2,326,829 $ 4,979,724 $ 2,278,708
Net realized gain (loss) on investments............. 2,242,475 402,260 4,297,646 (142,069)
Change in unrealized appreciation /
depreciation of investments...................... (1,503,698) 6,622,303 721,266 1,530,565
----------- ------------ ----------- -----------
Net increase in net assets 3,369,783 9,351,392 9,998,636 3,667,204
from operations................................... ----------- ------------ ----------- -----------
FROM CONTRACT OWNER TRANSACTIONS
(NOTE 3):
Contributions and Transfers:
Contributions..................................... 22,119,111 17,614,456 23,155,861 10,927,641
Transfers from other Funds and
Guaranteed Interest Account..................... 8,707,223 12,235,331 30,143,138 10,118,081
----------- ------------ ----------- -----------
Total......................................... 30,826,334 29,849,787 53,298,999 21,045,722*
----------- ------------ ----------- -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals and
death benefits................................. 5,546,973 2,534,266 4,361,957 1,942,685
Transfers to other Funds and
Guaranteed Interest Account.................... 14,201,772 5,239,849 13,868,715 3,213,614
Withdrawal and administrative charges........ 149,752 74,396 78,426 28,309
----------- ------------ ----------- -----------
Total......................................... 19,898,497 7,848,511 18,309,098 5,184,608
----------- ------------ ----------- -----------
Net increase in net assets
from Contract Owner transactions.................. 10,927,837 22,001,276 34,989,901 15,861,114
----------- ------------ ----------- -----------
Net (increase) decrease in accumulated
amount retained by Equitable Life in
Separate Account A (Note 2)....................... (72,280) (75,713) (78,617) (11,839)
----------- ------------ ----------- -----------
INCREASE IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS .................... 14,225,340 31,276,955 44,909,920 19,516,479
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS..................... 71,026,212 39,749,257 33,051,318 13,534,839
----------- ------------ ----------- -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACT OWNERS..................... $85,251,552 $71,026,212 $77,961,238 $33,051,318
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL FUND
---------------------------------------
1996 1995
------------------ -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS: $ 2,150,106 $ 1,170,324
Net investment income (loss)........................ 22,308,566 10,274,241
Net realized gain (loss) on investments.............
Change in unrealized appreciation / 26,407,595 29,094,331
depreciation of investments...................... ------------ ------------
50,866,267 40,538,896
Net increase in net assets ------------ ------------
from operations...................................
FROM CONTRACT OWNERS TRANSACTIONS
(NOTE 3):
Contributions and Transfers: 104,951,106 81,368,082
Contributions.....................................
Transfers from other Funds and 115,437,667 137,660,677
Guaranteed Interest Account..................... ------------ ------------
220,388,773 219,028,759
Total......................................... ------------ ------------
Payments, Transfers and Charges:
Annuity payments, withdrawals and 28,738,527 11,743,890
death benefits..................................
Transfers to other Funds and 61,058,782 93,494,152
Guaranteed Interest Account....................... 724,468 394,438
Withdrawal and administrative charges............... ------------ ------------
90,521,777 105,632,480
Total........................................... ------------ ------------
Net increase in net assets 129,866,996 113,396,279
from Contract Owner transactions................. ------------ ------------
Net (increase) decrease in
amount retained by Equitable Life in (286,484) (136,682)
Separate Account A (Note 3)....................... ------------ ------------
INCREASE IN NET ASSETS 180,446,779 153,798,493
ATTRIBUTABLE TO CONTRACT OWNERS ....................
NET ASSETS -- BEGINNING OF PERIOD 315,007,486 161,208,993
ATTRIBUTABLE TO CONTRACT OWNERS...................... ------------ ------------
NET ASSETS -- END OF PERIOD (NOTE 1) $495,454,265 $315,007,486
ATTRIBUTABLE TO CONTRACT OWNERS...................... ============ ============
<FN>
- --------------------------
*Commencement of operations from September 1, 1995.
See Notes to Financial Statements.
</FN>
</TABLE>
FSA-8
<PAGE>
<TABLE>
<CAPTION>
GROWTH & INCOME QUALITY BOND
FUND FUND
- ----------------------------------- -------------------------------------
1996 1995 1996 1995
- ----------------- ---------------- ---------------- ---------------
<S> <C> <C> <C>
$ 674,662 $ 790,931 $ 1,226,243 $ 572,638
9,675,338 135,257 280,060 (14,461)
10,940,166 7,973,647 (469,209) 952,860
------------ ----------- ----------- -----------
21,290,166 8,899,835 1,037,094 1,511,037
------------ ----------- ----------- -----------
44,131,391 22,698,765 7,201,618 5,630,019
70,653,911 28,860,658 11,609,924 7,603,814
------------ ----------- ----------- -----------
114,785,302 51,559,423 18,811,542 13,233,833
------------ ----------- ----------- -----------
6,415,518 1,952,266 1,789,909 705,351
36,251,785 10,151,108 8,691,630 2,324,024
177,183 60,042 30,562 8,788
------------ ----------- ----------- -----------
42,844,486 12,163,416 10,512,101 3,038,163
------------ ----------- ----------- -----------
71,940,816 39,396,007 8,299,441 10,195,670
------------ ----------- ----------- -----------
(144,964) (20,535) (33,142) (326)
------------ ----------- ----------- -----------
93,086,018 48,275,307 9,303,393 11,706,381
70,420,279 22,144,972 17,045,873 5,339,492
------------ ----------- ----------- -----------
$163,506,297 $70,420,279 $26,349,266 $17,045,873
============ =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY INDEX INTERNATIONAL
FUND FUND
- --------------------------------- --------------------------------------
1996 1995 1996 1995*
- ---------------- ----------------- ----------------- ---------------
<C> <C> <C> <C>
$ 1,004,328 $ 360,568 $ 485,233 $ 149,427
14,191,113 4,198,742 2,972,966 84,989
19,487,539 4,368,831 1,086,851 148,058
------------ ------------ ------------ -----------
34,682,980 8,928,141 4,545,050 382,474
------------ ------------ ------------ -----------
78,060,051 28,329,533 32,148,619 2,925,742
224,346,052 153,170,493 132,166,698 17,699,810
------------ ------------ ------------ -----------
302,406,103 181,500,026 164,315,317 20,625,552
------------ ------------ ------------ -----------
8,358,084 1,077,397 3,342,378 41,651
142,130,534 106,387,645 83,376,653 5,873,268
217,821 23,173 60,421 907
------------ ------------ ------------ -----------
150,706,439 107,488,215 86,779,452 5,915,826
------------ ------------ ------------ -----------
151,699,664 74,011,811 77,535,865 14,709,726
------------ ------------ ------------ -----------
(138,050) 59,424 5,549 8,896
------------ ------------ ------------ -----------
186,244,594 82,999,376 82,086,464 15,101,096
88,102,110 5,102,734 15,101,096 --
------------ ------------ ------------ -----------
$274,346,704 $ 88,102,110 $ 97,187,560 $15,101,096
============ ============ ============ ===========
</TABLE>
FSA-9
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
1. General
The Equitable Life Assurance Society of the United States (Equitable Life)
Separate Account A (the Account) 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): the Common Stock Fund, the
Intermediate Government Securities Fund, the Money Market Fund, the
Balanced Fund, the Aggressive Stock Fund, the Growth Investors Fund, the
Conservative Investors Fund, the High Yield Fund, the Global Fund, the
Growth & Income Fund, the Quality Bond Fund, the Equity Index Fund and the
International Fund. The assets in each Fund are invested in Class IA 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.
The Account 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). 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.
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.
Investments are made in shares of the Trust and are valued at the net asset
values per share of the respective Portfolios. The net asset value is
determined by the Trust using the market or fair value of the underlying
assets of the Portfolio.
Investment transactions are recorded on the date. Realized gains and losses
include gains and losses on redemptions of the Trust's shares (determined
on the identified cost basis) and Trust distributions representing the net
realized gains on Trust investment transactions.
Dividends are recorded at the end of each quarter on the ex-dividend date.
Capital gains are distributed by the Trust at the end of each year.
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
unit value 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, 1996
3. Asset Charges
The following 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:
<TABLE>
<CAPTION>
EQUI-VEST/MOMENTUM MOMENTUM PLUS OLD
CONTRACTS CONTRACTS CONTRACTS
--------------------------------------------------- ------------------------ -----------------
Common Stock, Money All Common Stock and
Market and Balanced Other Money Market
Funds Funds All Funds Funds
-------------------------------- ---------------- ---------------- ----------------------
<S> <C> <C> <C> <C>
Death Benefits................ 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%
Expenses...................... 0.60 of 1% 0.60 of 1% 0.25 of 1% 0.16 of 1%
Expense Risks................. 0.30 of 1% 0.15 of 1% 0.60 of 1% 0.08 of 1%
Financial Accounting.......... 0.24 of 1% 0.24 of 1% -- --
</TABLE>
<TABLE>
<CAPTION>
EQUI-VEST
SERIES 300
EQUIPLAN & 400
CONTRACTS CONTRACTS
-------------------------- -----------------
Common Stock and
Intermediate Government
Securities
Funds All Funds
-------------------------- ----------------
<S> <C> <C>
Death Benefits................ 0.05 of 1% --
Mortality Risks............... 0.45 of 1% 0.60 of 1%
Expenses...................... 0.16 of 1% 0.24/0.25 of 1%
Expense Risks................. 0.08 of 1% 0.50 of 1%
Financial Accounting.......... -- --
</TABLE>
During 1996, Equitable Life charged EQUI-VEST Series 300 and 400 Contracts
0.24 of 1% against the assets of the Intermediate Government Securities
Fund, the Growth Investors Fund, the Conservative Investors Fund, the High
Yield Fund,the Global Fund, the Growth & Income Fund, the Quality Bond
Fund, the Equity Index Fund and the International Fund 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 Fund, the Balanced
Fund, the Common Stock Fund, and the Aggressive Stock Fund 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 Series 300 and 400 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 Series
300 and 400 Contracts. Administrative charges, if applicable, are deducted
annually under EQUI-VEST, EQUIPLAN and Old Contracts and quarterly under
Momentum, Momentum Plus and EQUI-VEST Series 300 and 400 Contracts.
FSA-11
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
Accumulation units issued and redeemed during the periods indicated were:
<TABLE>
<CAPTION>
Years Ended
December 31,
-------------------------------------------
1996 1995
-------------------- ----------------
<S> <C> <C>
COMMON STOCK FUND
- -----------------
Issued -- EQUI-VEST Contracts................................ 4,329,571 4,339,470
Momentum Contracts................................. 243,637 208,765
Momentum Plus Contracts............................ 597,453 470,567
Enhanced Momentum Plus Contracts................... 157,605 0
Old Contracts...................................... 728 837
EQUIPLAN Contracts................................. 303 268
EQUI-VEST Series 300 and 400 Contracts............. 2,233,005 1,432,603
Redeemed -- EQUI-VEST Contracts................................ 3,688,353 3,797,103
Momentum Contracts................................. 127,310 75,510
Momentum Plus Contracts............................ 264,968 94,575
Enhanced Momentum Plus Contracts................... 17,583 0
Old Contracts...................................... 42,438 51,405
EQUIPLAN Contracts................................. 12,375 11,184
EQUI-VEST Series 300 and 400 Contracts............. 764,368 391,658
INTERMEDIATE GOVERNMENT SECURITIES FUND
- ---------------------------------------
Issued -- Momentum Contracts................................. 5,037 7,133
Momentum Plus Contracts............................ 30,826 34,658
Enhanced Momentum Plus Contracts................... 2,792 0
EQUIPLAN Contracts................................. 13,023 68
EQUI-VEST Series 300 and 400 Contracts............. 103,536 90,918
Redeemed -- Momentum Contracts................................. 2,248 598
Momentum Plus Contracts............................ 37,473 11,347
Enhanced Momentum Plus Contracts................... 336 0
EQUIPLAN Contracts................................. 8,091 4,000
EQUI-VEST Series 300 and 400 Contracts............. 46,208 33,589
MONEY MARKET FUND
- -----------------
Issued -- EQUI-VEST Contracts................................ 471,698 366,971
Momentum Contracts................................. 508,189 447,257
Momentum Plus Contracts............................ 812,388 676,808
Enhanced Momentum Plus Contracts................... 40,920 0
Old Contracts...................................... 4,948 2,235
EQUI-VEST Series 300 and 400 Contracts............. 245,758 144,021
Redeemed -- EQUI-VEST Contracts................................ 479,069 345,636
Momentum Contracts................................. 456,078 374,993
Momentum Plus Contracts............................ 804,620 851,769
Enhanced Momentum Plus Contracts................... 27,829 0
Old Contracts...................................... 15,490 9,440
EQUI-VEST Series 300 and 400 Contracts............. 162,153 125,670
</TABLE>
FSA-12
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
Years Ended
December 31,
---------------------------------------------
1996 1995
-------------------- ----------------
<S> <C> <C>
BALANCED FUND
- -------------
Issued -- EQUI-VEST Contracts................................ 4,328,191 4,387,731
Momentum Contracts................................. 344,030 395,854
Momentum Plus Contracts............................ 200,165 204,147
Enhanced Momentum Plus Contracts................... 55,952 0
EQUI-VEST Series 300 and 400 Contracts............. 274,681 183,034
Redeemed -- EQUI-VEST Contracts................................ 6,220,763 6,839,622
Momentum Contracts................................. 243,591 215,312
Momentum Plus Contracts............................ 118,387 56,192
Enhanced Momentum Plus Contracts................... 7,610 0
EQUI-VEST Series 300 and 400 Contracts............. 112,296 86,454
AGGRESSIVE STOCK FUND
- ---------------------
Issued -- EQUI-VEST Contracts................................ 15,729,861 15,601,564
Momentum Contracts................................. 640,809 583,570
Momentum Plus Contracts............................ 611,656 465,017
Enhanced Momentum Plus Contracts................... 124,790 0
EQUI-VEST Series 300 and 400 Contracts............. 2,252,325 1,591,822
Redeemed -- EQUI-VEST Contracts................................ 13,605,973 14,567,533
Momentum Contracts................................. 329,415 234,646
Momentum Plus Contracts............................ 259,855 97,553
Enhanced Momentum Plus Contracts................... 15,823 0
EQUI-VEST Series 300 and 400 Contracts............. 1,094,154 945,741
GROWTH INVESTORS FUND
- ---------------------
Issued -- Momentum Contracts................................. 69,706 50,523
Momentum Plus Contracts............................ 277,255 243,492
Enhanced Momentum Plus Contracts................... 15,724 0
EQUI-VEST Series 300 and 400 Contracts............. 1,654,096 1,401,142
Redeemed -- Momentum Contracts................................. 16,841 3,545
Momentum Plus Contracts............................ 143,744 56,483
Enhanced Momentum Plus Contracts................... 1,072 0
EQUI-VEST Series 300 and 400 Contracts............. 441,519 311,129
CONSERVATIVE INVESTORS FUND
- ---------------------------
Issued -- Momentum Contracts................................. 10,705 8,347
Momentum Plus Contracts............................ 55,120 54,650
Enhanced Momentum Plus Contracts................... 5,947 0
EQUI-VEST Series 300 and 400 Contracts............. 200,840 223,974
Redeemed -- Momentum Contracts................................. 3,249 450
Momentum Plus Contracts............................ 47,599 18,295
Enhanced Momentum Plus Contracts................... 1,318 0
EQUI-VEST Series 300 and 400 Contracts............. 125,486 57,483
HIGH YIELD FUND
- ---------------
Issued -- Momentum Contracts................................. 12,054 6,324
Momentum Plus Contracts............................ 50,342 44,314
Enhanced Momentum Plus Contracts................... 5,597 0
EQUI-VEST Series 300 and 400 Contracts............. 347,167 145,638
Redeemed -- Momentum Contracts................................. 1,584 395
Momentum Plus Contracts............................ 26,154 12,085
Enhanced Momentum Plus Contracts................... 478 0
EQUI-VEST Series 300 and 400 Contracts............. 112,750 35,957
</TABLE>
FSA-13
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
Years Ended
December 31,
--------------------------------------
1996 1995
--------------- -------------
<S> <C> <C>
GLOBAL FUND
- -----------
Issued -- Momentum Contracts................................. 69,785 53,496
Momentum Plus Contracts............................ 226,890 251,525
Enhanced Momentum Plus Contracts................... 14,214 0
EQUI-VEST Series 300 and 400 Contracts............. 1,395,485 1,670,603
Redeemed -- Momentum Contracts................................. 15,804 7,044
Momentum Plus Contracts............................ 158,197 84,289
Enhanced Momentum Plus Contracts................... 1,356 0
EQUI-VEST Series 300 and 400 Contracts............. 521,429 854,945
GROWTH & INCOME FUND
- --------------------
Issued -- Momentum Contracts................................. 32,378 14,155
Momentum Plus Contracts............................ 80,062 66,279
Enhanced Momentum Plus Contracts................... 3,154 0
EQUI-VEST Series 300 and 400 Contracts............. 769,435 387,123
Redeemed -- Momentum Contracts................................. 8,397 1,570
Momentum Plus Contracts............................ 26,343 8,379
Enhanced Momentum Plus Contracts................... 126 0
EQUI-VEST Series 300 and 400 Contracts............. 291,623 99,840
QUALITY BOND FUND
- -----------------
Issued -- Momentum Contracts................................. 4,794 3,450
Momentum Plus Contracts............................ 21,227 16,825
Enhanced Momentum Plus Contracts................... 1,393 0
EQUI-VEST Series 300 and 400 Contracts............. 145,134 108,824
Redeemed -- Momentum Contracts................................. 1,778 523
Momentum Plus Contracts............................ 10,306 2,479
Enhanced Momentum Plus Contracts................... 47 0
EQUI-VEST Series 300 and 400 Contracts............. 84,488 26,494
EQUITY INDEX FUND
- -----------------
Issued -- Momentum Contracts................................. 45,208 13,555
Momentum Plus Contracts............................ 114,361 46,112
Enhanced Momentum Plus Contracts................... 4,998 0
EQUI-VEST Series 300 and 400 Contracts............. 1,866,091 1,413,313
Redeemed -- Momentum Contracts................................. 6,994 1,679
Momentum Plus Contracts............................ 30,367 5,016
Enhanced Momentum Plus Contracts................... 642 0
EQUI-VEST Series 300 and 400 Contracts............. 971,325 868,769
INTERNATIONAL FUND
- ------------------
Issued -- Momentum Contracts................................. 21,296 480
Momentum Plus Contracts............................ 61,499 3,464
Enhanced Momentum Plus Contracts................... 26,479 0
EQUI-VEST Series 300 and 400 Contracts............. 1,395,292 198,903
Redeemed -- Momentum Contracts................................. 2,534 0
Momentum Plus Contracts............................ 10,691 8
Enhanced Momentum Plus Contracts................... 5,744 0
EQUI-VEST Series 300 and 400 Contracts............. 772,701 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, 1996
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
STOCK SECURITIES MARKET BALANCED
FUND FUND FUND FUND
-------------------- ---------------- ---------------- ------------------
<S> <C> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period.............. $3,370,457,812 $ -- $28,666,122 $ 964,675,157
Net assets attributable
to Old Contracts in
accumulation period.............. 85,158,183 -- 4,336,192 --
Net assets attributable
to EQUIPLAN
Contracts in
accumulation period.............. 25,613,227 2,798,061 -- --
Net assets attributable
to Momentum
Contracts in
accumulation period.............. 103,372,142 1,120,445 6,801,469 36,005,104
Net assets attributable
to Momentum Plus
Contracts in
accumulation period.............. 168,686,155 8,787,834 34,332,235 50,090,333
Net assets attributable
to Enhanced Momentum
Plus Contracts in
accumulation period.............. 17,626,753 259,695 1,383,018 5,518,846
Net assets attributable
to EQUI-VEST Series 300
& 400 Contracts in
accumulation period.............. 537,355,103 16,459,482 18,295,762 65,340,718
Actuarial reserves and
other contract
liabilities
attributable to
Contracts in payout.............. 24,428,725 2,675 -- 105,684
-------------- ----------- ----------- --------------
$4,332,698,100 $29,428,192 $93,814,798 $1,121,735,842
============== =========== =========== ==============
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
STOCK INVESTORS
FUND FUND
-------------------- --------------
<S> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period.............. $2,316,874,460 $ --
Net assets attributable
to Old Contracts in
accumulation period.............. -- --
Net assets attributable
to EQUIPLAN
Contracts in
accumulation period.............. -- --
Net assets attributable
to Momentum
Contracts in
accumulation period.............. 106,189,250 14,694,449
Net assets attributable
to Momentum Plus
Contracts in
accumulation period.............. 168,280,410 68,574,772
Net assets attributable
to Enhanced Momentum
Plus Contracts in
accumulation period.............. 13,679,380 1,714,501
Net assets attributable
to EQUI-VEST Series 300
& 400 Contracts in
accumulation period.............. 368,768,780 443,596,795
Actuarial reserves and
other contract
liabilities
attributable to
Contracts in payout.............. 2,781,450 830,112
-------------- ------------
$2,976,573,730 $529,410,629
============== ============
</TABLE>
FSA-15
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
CONSERVATIVE HIGH GROWTH &
INVESTORS YIELD GLOBAL INCOME
FUND FUND FUND FUND
------------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period............... $ -- $ -- $ -- $ --
Net assets attributable
to Old Contracts in
accumulation period.............. -- -- -- --
Net assets attributable
to EQUIPLAN
Contracts in
accumulation period.............. -- -- -- --
Net assets attributable
to Momentum
Contracts in
accumulation period.............. 2,114,842 2,433,263 16,048,232 5,838,772
Net assets attributable
to Momentum Plus
Contracts in
accumulation period.............. 15,650,595 13,836,870 64,536,142 17,388,863
Net assets attributable
to Enhanced Momentum Plus
Contracts in
accumulation period ............. 507,009 652,448 1,496,342 374,309
Net assets attributable
to EQUI-VEST Series 300 & 400
Contracts in
accumulation period.............. 66,443,641 61,001,720 413,259,009 139,856,174
Actuarial reserves and
other contract
liabilities
attributable to
Contracts in payout.............. 535,465 36,937 114,540 48,179
----------- ----------- ------------ ------------
$85,251,552 $77,961,238 $495,454,265 $163,506,297
=========== =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
QUALITY EQUITY
BOND INDEX INTERNATIONAL
FUND FUND FUND
---------------- ----------------- ---------------
<S> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period.............. $ -- $ -- $ --
Net assets attributable
to Old Contracts in
accumulation period.............. -- -- --
Net assets attributable
to EQUIPLAN
Contracts in
accumulation period.............. -- -- --
Net assets attributable
to Momentum
Contracts in
accumulation period.............. 805,525 8,310,489 2,171,142
Net assets attributable
to Momentum Plus
Contracts in
accumulation period.............. 3,339,020 21,020,652 6,121,746
Net assets attributable
to Enhanced Momentum Plus
Contracts in
accumulation period ............. 146,541 564,940 2,342,303
Net assets attributable
to EQUI-VEST Series 300 & 400
Contracts in
accumulation period.............. 22,042,506 243,929,938 86,118,730
Actuarial reserves and
other contract
liabilities
attributable to
Contracts in payout.............. 15,674 520,685 433,639
----------- ------------ -----------
$26,349,266 $274,346,704 $97,187,560
=========== ============ ===========
</TABLE>
FSA-16
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
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
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
------- ------- -------- ------- ------- ------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period .. $199.66 $151.67 $155.96 $125.72 $122.56 $ 89.56 $97.97 $78.37 $63.99 $59.83
======= ======= ======= ======= ======= ======= ====== ====== ====== ======
Unit value, end of period ........ $246.57 $199.66 $151.67 $155.96 $125.72 $122.56 $89.56 $97.97 $78.37 $63.99
======= ======= ======= ======= ======= ======= ====== ====== ====== ======
Number of units outstanding,
end of period (000's) ........ 345 387 438 467 525 598 694 780 895 1,079
======= ======= ======= ======= ======= ======= ====== ====== ====== ======
<CAPTION>
COMMON STOCK FUND--EQUI-VEST/MOMENTUM** CONTRACTS
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
------- ------- ------- ------- ------- -------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period ... $162.42 $124.32 $128.81 $104.63 $102.76 $ 75.67 $83.40 $67.22 $55.30 $52.10
======= ======= ======= ======= ======= ======= ====== ====== ====== ======
Unit value, end of period ......... $199.05 $162.42 $124.32 $128.81 $104.63 $102.76 $75.67 $83.40 $67.22 $55.30
======= ======= ======= ======= ======= ======== ====== ====== ====== ======
Number of EQUI-VEST units
outstanding, end of
period (000's) ................ 16,933 16,292 15,749 13,917 11,841 10,292 9,670 8,645 7,252 7,349
======= ======= ======= ======= ======= ======== ====== ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's) ................ 519 403 270 120
======= ======= ======= =======
<CAPTION>
COMMON STOCK FUND--EQUIPLAN CONTRACTS
YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
------- ------- ------- ------- ------- -------- -------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period.... $216.27 $164.29 $168.93 $136.10 $132.67 $ 96.95 $106.05 $ 84.83 $69.26 $65.62
======= ======= ======= ======= ======= ======= ======= ======= ====== ======
Unit value, end of period ......... $267.08 $216.27 $164.29 $168.93 $136.10 $132.67 $ 96.95 $106.05 $84.83 $69.56
======= ======= ======= ======= ======= ======= ======= ======= ====== ======
Number of units
outstanding,
end of period (000's) ......... 96 108 119 124 135 144 157 177 196 235
======= ======= ======= ======= ======= ======== ======== ======= ====== ======
<CAPTION>
COMMON STOCK FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------ SEPTEMBER 9, 1993*
1996 1995 1994 TO DECEMBER 31, 1993
------- ------- ------ --------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period .................. $132.47 $101.38 $105.01 $100.00
======= ======= ======= =======
Unit value, end of period ........................ $162.39 $132.47 $101.38 $105.01
======= ======= ======= =======
Number of units outstanding, end of period (000's) 1,039 706 330 12
======= ======= ======= =======
<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-17
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
COMMON STOCK FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996
TO DECEMBER 31, 1996*
------------------------------
Unit value, beginning of period ....................... $100.00
=======
Unit value, end of period ............................. $125.89
=======
Number of units outstanding, end of period (000's)..... 140
=======
<TABLE>
<CAPTION>
COMMON STOCK FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------- JANUARY 3, 1994*
1996 1995 TO DECEMBER 31, 1994
------- -------- ---------------------
<S> <C> <C> <C>
Unit value, beginning of period ........................ $126.78 $ 97.03 $100.00
======= ======= =======
Unit value, end of period .............................. $155.42 $126.78 $ 97.03
======= ======= =======
Number of units outstanding, end of period (000's)...... 3,457 1,989 948
======= ======= =======
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES FUND--EQUIPLAN CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period $49.69 $44.04 $46.25 $42.04 $40.00 $35.17 $33.12 $28.89 $27.31 $26.81
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period ..... $51.34 $49.69 $44.04 $46.25 $42.04 $40.00 $35.17 $33.12 $28.89 $27.31
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units period
outstanding,
end of period (000's) ..... 55 50 54 58 66 74 82 91 98 120
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES FUND--MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------ JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
------- -------- ----------------------
<S> <C> <C> <C>
Unit value, beginning of period ........................... $109.80 $ 98.19 $100.00
======= ======= =======
Unit value, end of period ................................. $112.40 $109.80 $ 98.19
======= ======= =======
Number of units outstanding, end of period (000's)......... 10 7 1
======= ======= =======
<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-18
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
----------------------------- SEPTEMBER 9, 1993*
1996 1995 1994 TO DECEMBER 31, 1993
------- ------- ------- --------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period ........................... $105.94 $ 94.76 $100.44 $100.00
======= ======= ======= =======
Unit value, end of period ................................. $108.45 $105.94 $ 94.76 $100.44
======= ======= ======= =======
Number of units outstanding, end of period (000's)......... 81 88 64 1
======= ======= ======= =======
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996
TO DECEMBER 31, 1996*
-------------------------
<S> <C>
Unit value, beginning of period...................... $100.00
=======
Unit value, end of period............................ $105.75
=======
Number of units outstanding, end of period (000's)... 2
=======
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------ JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
------- ------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period ........................... $109.80 $ 98.19 $100.00
======= ======= =======
Unit value, end of period ................................. $112.40 $109.80 $ 98.19
======= ======= =======
Number of units outstanding, end of period (000's) ........ 146 89 32
======= ======= =======
<CAPTION>
MONEY MARKET FUND--OLD CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
------ ------ ------ ------ ------ ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period... $32.00 $30.44 $29.43 $28.75 $27.92 $26.47 $24.59 $22.66 $21.23 $20.01
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period ........ $33.52 $32.00 $30.44 $29.43 $28.75 $27.92 $26.47 $24.59 $22.66 $21.23
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units outstanding,
end of period (000's) ........ 129 140 147 168 204 246 289 310 339 419
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
<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-19
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
MONEY MARKET FUND--EQUI-VEST / MOMENTUM** CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period ... $27.22 $26.08 $25.41 $25.01 $24.48 $23.38 $21.89 $20.32 $19.18 $18.22
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period ......... $28.28 $27.22 $26.08 $25.41 $25.01 $24.48 $23.38 $21.89 $20.32 $19.18
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of EQUI-VEST units
outstanding, end of
period (000's) ................ 1,013 1,021 1,000 1,065 1,201 1,325 1,307 1,045 656 581
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's) ................ 240 188 166 56
====== ====== ====== ======
<CAPTION>
MONEY MARKET FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------- SEPTEMBER 9, 1993*
1996 1995 1994 TO DECEMBER 31, 1993
------- ------- ------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period ........................... $107.55 $103.10 $100.47 $100.00
======= ======= ======= =======
Unit value, end of period ................................. $111.75 $107.55 $103.10 $100.47
======= ======= ======= =======
Number of units outstanding, end of period (000's)......... 307 299 474 62
======= ======= ======= =======
</TABLE>
MONEY MARKET FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996
TO DECEMBER 31, 1996*
---------------------
Unit value, beginning of period ......................... $100.00
=======
Unit value, end of period ............................... $105.65
=======
Number of units outstanding, end of period (000's)....... 13
=======
<TABLE>
<CAPTION>
MONEY MARKET FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
----------------------- JANUARY 3, 1994*
1996 1995 TO DECEMBER 31, 1994
------- ------- ------------------------------
<S> <C> <C> <C>
Unit value, beginning of period ........................... $107.04 $102.61 $100.00
======= ======= =======
Unit value, end of period ................................. $111.21 $107.04 $102.61
======= ======= =======
Number of units outstanding, end of period (000's)......... 165 81 63
======= ======= =======
<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-20
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
BALANCED FUND--EQUI-VEST / MOMENTUM** CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period ... $30.92 $26.18 $28.85 $26.04 $27.17 $19.40 $19.69 $15.80 $13.95 $14.69
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period ......... $34.06 $30.92 $26.18 $28.85 $26.04 $27.17 $19.40 $19.69 $15.80 $13.95
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of EQUI-VEST units
outstanding, end of
period (000's) ................ 28,319 30,212 32,664 31,259 25,975 21,100 19,423 16,810 15,335 17,370
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's)................. 1,057 957 776 348
====== ====== ====== ======
<CAPTION>
BALANCED FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------- SEPTEMBER 9, 1993*
1996 1995 1994 TO DECEMBER 31, 1993
------- ------ ------- ---------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period ........................... $108.95 $92.22 $101.63 $100.00
======= ======= ======= =======
Unit value, end of period ................................. $120.01 $108.95 $ 92.22 $101.63
======= ======= ======= =======
Number of units outstanding, end of period (000's)......... 417 336 188 9
======= ======= ======= =======
</TABLE>
BALANCED FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996*
TO DECEMBER 31, 1996
--------------------
Unit value, beginning of period........................ $100.00
=======
Unit value, end of period.............................. $114.16
=======
Number of units outstanding, end of period (000's)..... 48
=======
<TABLE>
<CAPTION>
BALANCED FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
----------------------- JANUARY 3, 1994*
1996 1995 TO DECEMBER 31, 1994
------- ------- ----------------------
<S> <C> <C> <C>
Unit value, beginning of period ........................... $108.26 $ 91.64 $100.00
======= ======= =======
Unit value, end of period ................................. $119.26 $108.26 $ 91.64
======= ======= =======
Number of units outstanding, end of period (000's)......... 548 386 289
======= ======= =======
<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-21
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
AGGRESSIVE STOCK FUND--EQUI-VEST / MOMENTUM** CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period ... $68.73 $52.88 $55.68 $48.30 $50.51 $27.36 $25.86 $18.09 $18.15 $18.33
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period ......... $82.91 $68.73 $52.88 $55.68 $48.30 $50.51 $27.36 $25.86 $18.09 $18.15
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of EQUI-VEST units
outstanding, end of
period (000's) ................ 27,945 25,821 24,787 21,496 17,986 12,962 9,545 8,134 8,972 10,180
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's) ................ 1,281 969 620 258
====== ====== ====== ======
<CAPTION>
AGGRESSIVE STOCK FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
----------------------------- SEPTEMBER 9, 1993*
1996 1995 1994 TO DECEMBER 31, 1993
------- ------- ------- ---------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period ...................... $130.50 $100.49 $105.90 $100.00
======= ======= ======= =======
Unit value, end of period ............................ $157.31 $130.50 $100.49 $105.90
======= ======= ======= =======
Number of units outstanding, end of period (000's).... 1,070 718 350 12
======= ======= ======= =======
</TABLE>
AGGRESSIVE STOCK FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996
TO DECEMBER 31, 1996*
-------------------------
Unit value, beginning of period........................ $100.00
=======
Unit value, end of period.............................. $125.54
=======
Number of units outstanding, end of period (000's)..... 109
=======
<TABLE>
<CAPTION>
AGGRESSIVE STOCK FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------ JANUARY 3, 1994*
1996 1995 TO DECEMBER 31, 1994
------ ------- --------------------
<S> <C> <C> <C>
Unit value, beginning of period ...................... $123.95 $ 95.45 $100.00
======= ======= =======
Unit value, end of period ............................ $149.41 $123.95 $ 95.45
======= ======= =======
Number of units outstanding, end of period (000's).... 2,468 1,310 664
======= ======= =======
<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-22
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
GROWTH INVESTORS FUND--MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
-------------------------------------- JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
------------------ ----------------- --------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $120.08 $ 96.31 $100.00
======= ======= =======
Unit value, end of period............................ $133.40 $120.08 $ 96.31
======= ======= =======
Number of units outstanding, end of period (000's)... 110 57 10
======= ======= =======
<CAPTION>
GROWTH INVESTORS FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------------ SEPTEMBER 9, 1993*
1996 1995 1994 TO DECEMBER 31, 1993
----------- ---------- ----------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period...................... $121.49 $ 97.45 $101.99 $100.00
======= ======= ======= =======
Unit value, end of period............................ $134.95 $121.49 $ 97.45 $101.99
======= ======= ======= =======
Number of units outstanding, end of period (000's)... 508 375 188 13
======= ======= ======= =======
<CAPTION>
GROWTH INVESTORS FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996
TO DECEMBER 31, 1996*
---------------------
<S> <C>
Unit value, beginning of period...................... $100.00
=======
Unit value, end of period............................ $116.95
=======
Number of units outstanding, end of period (000's)... 15
=======
<CAPTION>
GROWTH INVESTORS FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------ JANUARY 3, 1994*
1996 1995 TO DECEMBER 31, 1994
----------- ----------- -----------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $120.08 $ 96.31 $100.00
======= ======= =======
Unit value, end of period............................ $133.40 $120.08 $ 96.31
======= ======= =======
Number of units outstanding, end of period (000's)... 3,325 2,113 1,023
======= ======= =======
<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-23
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS FUND--MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------- JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
--------------- -------------- -------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $112.97 $ 95.10 $100.00
======= ======= =======
Unit value, end of period............................ $117.25 $112.97 $ 95.10
======= ======= =======
Number of units outstanding, end of period (000's)... 18 11 3
======= ======= =======
<CAPTION>
CONSERVATIVE INVESTORS FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
---------------------------------- SEPTEMBER 9, 1993*
1996 1995 1994 TO DECEMBER 31, 1993
--------- --------- --------- -------------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period...................... $110.81 $ 93.29 $98.60 $100.00
======= ======= ====== =======
Unit value, end of period............................ $114.99 $110.81 $93.29 $ 98.60
======= ======= ====== =======
Number of units outstanding, end of period (000's)... 136 129 92 10
======= ======= ====== =======
<CAPTION>
CONSERVATIVE INVESTORS FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996
TO DECEMBER 31, 1996*
---------------------------
<S> <C>
Unit value, beginning of period...................... $100.00
=======
Unit value, end of period............................ $109.47
=======
Number of units outstanding, end of period (000's)... 5
=======
<CAPTION>
CONSERVATIVE INVESTORS FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
-------------------------------------------------------
1996 1995 1994
------------- ----------- -----------
<S> <C> <C> <C>
Unit value, beginning of period...................... $112.97 $ 95.10 $100.00
======= ======= =======
Unit value, end of period............................ $117.25 $112.97 $ 95.10
======= ======= =======
Number of units outstanding, end of period (000's)... 567 491 325
======= ======= =======
<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-24
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
HIGH YIELD FUND--MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------ JUNE 1, 1994* TO
1996 1995 DECEMBER 31, 1994
----------- ---------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period ..................... $113.44 $ 95.88 $100.00
======= ======= =======
Unit value, end of period ........................... $137.53 $113.44 $ 95.88
======= ======= =======
Number of units outstanding, end of period (000's) .. 18 7 1
======= ======= =======
<CAPTION>
HIGH YIELD FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------------ SEPTEMBER 9, 1993*
1996 1995 1994 TO DECEMBER 31, 1993
-------------- ----------- ----------- -------------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period...................... $121.10 $102.37 $106.74 $100.00
======= ======= ======= =======
Unit value, end of period............................ $146.80 $121.10 $102.37 $106.74
======= ======= ======= =======
Number of units outstanding, end of period (000's)... 94 70 38 1
======= ======= ======= =======
</TABLE>
HIGH YIELD FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996
TO DECEMBER 31, 1996*
--------------------------
Unit value, beginning of period...................... $100.00
=======
Unit value, end of period............................ $127.46
=======
Number of units outstanding, end of period (000's)... 5
=======
<TABLE>
<CAPTION>
HIGH YIELD FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
---------------------------- JANUARY 3, 1994*
1996 1995 TO DECEMBER 31, 1994
------------ ------------ --------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $113.44 $ 95.88 $100.00
======= ======= =======
Unit value, end of period............................ $137.53 $113.44 $ 95.88
======= ======= =======
Number of units outstanding, end of period (000's)... 444 209 99
======= ======= =======
<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>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
GLOBAL FUND--MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------ JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
------------- ------------ -----------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $122.06 $104.12 $100.00
======= ======= =======
Unit value, end of period............................ $138.00 $122.06 $104.12
======= ======= =======
Number of units outstanding, end of period (000's)... 116 62 16
======= ======= =======
<CAPTION>
GLOBAL FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
---------------------------------------------- SEPTEMBER 9, 1993*
1996 1995 1994 TO DECEMBER 31, 1993
------------- ----------- ----------- ------------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period...................... $124.30 $106.04 $102.14 $100.00
======= ======= ======= ========
Unit value, end of period............................ $140.51 $124.30 $106.04 $102.14
======= ======= ======= =======
Number of units outstanding, end of period (000's)... 459 391 223 8
======= ======= ======= =======
</TABLE>
GLOBAL FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996
TO DECEMBER 31, 1996*
-------------------------
Unit value, beginning of period...................... $100.00
=======
Unit value, end of period............................ $116.37
=======
Number of units outstanding, end of period (000's)... 13
=======
<TABLE>
<CAPTION>
GLOBAL FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------- JANUARY 3, 1994*
1996 1995 TO DECEMBER 31, 1994
--------------- ------------- -------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $122.06 $104.12 $100.00
======= ======= =======
Unit value, end of period............................ $138.00 $122.06 $104.12
======= ======= =======
Number of units outstanding, end of period (000's)... 2,995 2,121 1,305
======= ======= =======
<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-26
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
GROWTH & INCOME FUND--MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------- JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
--------------- --------------- --------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $121.02 $ 98.86 $100.00
======= ======= =======
Unit value, end of period............................ $143.37 $121.02 $ 98.86
======= ======= =======
Number of units outstanding, end of period (000's)... 41 17 4
======= ======= =======
<CAPTION>
GROWTH & INCOME FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------- JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
--------------- --------------- --------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $121.25 $ 99.06 $100.00
======= ======= =======
Unit value, end of period............................ $143.63 $121.25 $ 99.06
======= ======= =======
Number of units outstanding, end of period (000's)... 121 67 9
======= ======= =======
<CAPTION>
GROWTH & INCOME FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996
TO DECEMBER 31, 1996*
----------------------
<S> <C>
Unit value, beginning of period...................... $100.00
=======
Unit value, end of period............................ $123.61
=======
Number of units outstanding, end of period (000's)... 3
=======
<CAPTION>
GROWTH & INCOME FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------- JANUARY 3, 1994*
1996 1995 TO DECEMBER 31, 1994
-------------- --------------- --------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $121.02 $ 98.86 $100.00
======= ======= =======
Unit value, end of period............................ $143.37 $121.02 $ 98.86
======= ======= =======
Number of units outstanding, end of period (000's)... 975 498 210
======= ======= =======
<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-27
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
QUALITY BOND FUND--MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------- JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
------------- ------------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $108.38 $ 93.87 $100.00
======= ======= =======
Unit value, end of period............................ $112.65 $108.38 $ 93.87
======= ======= =======
Number of units outstanding, end of period (000's)... 7 4 1
======= ======= =======
<CAPTION>
QUALITY BOND FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------- JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
------------- ------------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $114.38 $ 99.07 $100.00
======= ======= =======
Unit value, end of period............................ $118.87 $114.38 $ 99.07
======= ======= =======
Number of units outstanding, end of period (000's)... 28 17 3
======= ======= =======
</TABLE>
QUALITY BOND FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996*
TO DECEMBER 31, 1996
-----------------------
Unit value, beginning of period...................... $100.00
========
Unit value, end of period............................ $108.84
=======
Number of units outstanding, end of period (000's)... 1
=======
<TABLE>
<CAPTION>
QUALITY BOND FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------- JANUARY 3, 1994*
1996 1995 TO DECEMBER 31, 1994
------------- ------------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $108.38 $ 93.87 $100.00
======= ======= =======
Unit value, end of period............................ $112.65 $108.38 $ 93.87
======= ======= =======
Number of units outstanding, end of period (000's)... 196 135 53
======= ======= =======
<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-28
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
EQUITY INDEX FUND--MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------- JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
------------- ------------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $135.94 $100.95 $100.00
======= ======= =======
Unit value, end of period............................ $164.12 $135.94 $100.95
======= ======= =======
Number of units outstanding, end of period (000's)... 51 12 1
======= ======= =======
<CAPTION>
EQUITY INDEX FUND--MOMENTUM PLUS CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------- JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
------------- ------------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $135.92 $100.94 $100.00
======= ======= =======
Unit value, end of period............................ $164.08 $135.92 $100.94
======= ======= =======
Number of units outstanding, end of period (000's)... 128 44 3
======= ======= =======
</TABLE>
EQUITY INDEX FUND--ENHANCED MOMENTUM PLUS CONTRACTS
SEPTEMBER 1, 1996*
TO DECEMBER 31, 1996
-----------------------
Unit value, beginning of period...................... $100.00
=======
Unit value, end of period............................ $139.70
=======
Number of units outstanding, end of period (000's)... 4
=======
<TABLE>
<CAPTION>
EQUITY INDEX FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------- JUNE 1, 1994*
1996 1995 TO DECEMBER 31, 1994
------------- ------------- -------------------------
<S> <C> <C> <C>
Unit value, beginning of period...................... $135.94 $100.95 $100.00
======= ======= =======
Unit value, end of period............................ $164.12 $135.94 $100.95
======= ======= =======
Number of units outstanding, end of period (000's)... 1,486 592 47
======= ======= =======
<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-29
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS--(CONCLUDED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
INTERNATIONAL FUND--MOMENTUM CONTRACTS
YEAR ENDED
DECEMBER 31, SEPTEMBER 1, 1994*
1996 TO DECEMBER 31, 1995
--------------------------- -------------------------------
<S> <C> <C>
Unit value, beginning of period............................ $104.15 $100.00
======= =======
Unit value, end of period.................................. $112.82 $104.15
======= =======
Number of units outstanding, end of period (000's)......... 19 0
======= =======
<CAPTION>
INTERNATIONAL FUND--MOMENTUM PLUS CONTRACTS
YEAR ENDED
DECEMBER 31, SEPTEMBER 1, 1994* TO
1996 DECEMBER 31, 1995
----------------------------- -------------------------------
<S> <C> <C>
Unit value, beginning of period............................ $104.15 $100.00
======= =======
Unit value, end of period.................................. $112.81 $104.15
======= =======
Number of units outstanding, end of period (000's)......... 54 3
======= =======
</TABLE>
INTERNATIONAL FUND--ENHANCED MOMENTUM CONTRACTS
SEPTEMBER 1, 1996
TO DECEMBER 31, 1996*
------------------------
Unit value, beginning of period....................... $100.00
=======
Unit value, end of period............................. $112.96
=======
Number of units outstanding, end of period (000's).... 21
=======
<TABLE>
<CAPTION>
INTERNATIONAL FUND--EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEAR ENDED
DECEMBER 31, SEPTEMBER 1, 1994*
1996 TO DECEMBER 31, 1995
----------------------------- -------------------------------
<S> <C> <C>
Unit value, beginning of period............................ $104.15 $100.00
======= =======
Unit value, end of period.................................. $112.83 $104.15
======= =======
Number of units outstanding, end of period (000's)......... 763 141
======= =======
<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-30
<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, 1996 and 1995, and the results of their
operations and their cash flows for each of the three years in the period ended
December 31, 1996, 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 long-duration participating life insurance
contracts and long-lived assets in 1996, for loan impairments in 1995 and for
postemployment benefits in 1994.
Price Waterhouse LLP
New York, New York
February 10, 1997
F-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1996 AND 1995
<TABLE>
<CAPTION>
1996 1995
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturities:
Available for sale, at estimated fair value................. $ 18,077.0 $ 15,899.9
Mortgage loans on real estate................................. 3,133.0 3,638.3
Equity real estate............................................ 3,297.5 3,916.2
Policy loans.................................................. 2,196.1 1,976.4
Investment in and loans to affiliates......................... 685.0 636.6
Other equity investments...................................... 597.3 621.1
Other invested assets......................................... 288.7 706.1
----------------- -----------------
Total investments......................................... 28,274.6 27,394.6
Cash and cash equivalents....................................... 538.8 774.7
Deferred policy acquisition costs............................... 3,104.9 3,075.8
Amounts due from discontinued GIC Segment....................... 996.2 2,097.1
Other assets.................................................... 2,552.2 2,718.1
Closed Block assets............................................. 8,495.0 8,582.1
Separate Accounts assets........................................ 29,646.1 24,566.6
----------------- -----------------
TOTAL ASSETS.................................................... $ 73,607.8 $ 69,209.0
================= =================
LIABILITIES
Policyholders' account balances................................. $ 21,865.6 $ 21,911.2
Future policy benefits and other policyholders' liabilities..... 4,416.6 4,007.3
Short-term and long-term debt................................... 1,766.9 1,899.3
Other liabilities............................................... 2,785.1 3,380.7
Closed Block liabilities........................................ 9,091.3 9,221.4
Separate Accounts liabilities................................... 29,598.3 24,531.0
----------------- -----------------
Total liabilities......................................... 69,523.8 64,950.9
----------------- -----------------
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.................................. 3,105.8 3,105.8
Retained earnings............................................... 798.7 788.4
Net unrealized investment gains................................. 189.9 396.5
Minimum pension liability....................................... (12.9) (35.1)
----------------- -----------------
Total shareholder's equity................................ 4,084.0 4,258.1
----------------- -----------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY...................... $ 73,607.8 $ 69,209.0
================= =================
</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, 1996, 1995 AND 1994
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
REVENUES
Universal life and investment-type product policy fee
income................................................ $ 874.0 $ 788.2 $ 715.0
Premiums................................................ 597.6 606.8 625.6
Net investment income................................... 2,175.9 2,088.2 1,998.6
Investment (losses) gains, net.......................... (9.8) 5.3 91.8
Commissions, fees and other income...................... 1,081.8 897.1 847.4
Contribution from the Closed Block...................... 125.0 143.2 137.0
----------------- ----------------- -----------------
Total revenues.................................... 4,844.5 4,528.8 4,415.4
----------------- ----------------- -----------------
BENEFITS AND OTHER DEDUCTIONS
Interest credited to policyholders' account balances.... 1,270.2 1,248.3 1,201.3
Policyholders' benefits................................. 1,317.7 1,008.6 914.9
Other operating costs and expenses...................... 2,048.0 1,775.8 1,857.7
----------------- ----------------- -----------------
Total benefits and other deductions............... 4,635.9 4,032.7 3,973.9
----------------- ----------------- -----------------
Earnings from continuing operations before Federal
income taxes, minority interest and cumulative
effect of accounting change........................... 208.6 496.1 441.5
Federal income taxes.................................... 9.7 120.5 100.2
Minority interest in net income of consolidated
subsidiaries.......................................... 81.7 62.8 50.4
----------------- ----------------- -----------------
Earnings from continuing operations before
cumulative effect of accounting change................ 117.2 312.8 290.9
Discontinued operations, net of Federal income taxes.... (83.8) - -
Cumulative effect of accounting change, net of Federal
income taxes.......................................... (23.1) - (27.1)
----------------- ----------------- -----------------
Net Earnings............................................ $ 10.3 $ 312.8 $ 263.8
================= ================= =================
</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, 1996, 1995 AND 1994
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Common stock, at par value, beginning and end of year......... $ 2.5 $ 2.5 $ 2.5
----------------- ----------------- -----------------
Capital in excess of par value, beginning of year as
previously reported......................................... 2,913.6 2,913.6 2,613.6
Cumulative effect on prior years of retroactive restatement
for accounting change....................................... 192.2 192.2 192.2
----------------- ----------------- -----------------
Capital in excess of par value, beginning of year as restated. 3,105.8 3,105.8 2,805.8
Additional capital in excess of par value..................... - - 300.0
----------------- ----------------- -----------------
Capital in excess of par value, end of year................... 3,105.8 3,105.8 3,105.8
----------------- ----------------- -----------------
Retained earnings, beginning of year as previously reported... 781.6 484.0 217.6
Cumulative effect on prior years of retroactive restatement
for accounting change....................................... 6.8 (8.4) (5.8)
----------------- ----------------- -----------------
Retained earnings, beginning of year as restated.............. 788.4 475.6 211.8
Net earnings.................................................. 10.3 312.8 263.8
----------------- ----------------- -----------------
Retained earnings, end of year................................ 798.7 788.4 475.6
----------------- ----------------- -----------------
Net unrealized investment gains (losses), beginning of year
as previously reported...................................... 338.2 (203.0) 131.9
Cumulative effect on prior years of retroactive restatement
for accounting change....................................... 58.3 (17.5) 12.7
----------------- ----------------- -----------------
Net unrealized investment gains (losses), beginning of
year as restated............................................ 396.5 (220.5) 144.6
Change in unrealized investment (losses) gains................ (206.6) 617.0 (365.1)
----------------- ----------------- -----------------
Net unrealized investment gains (losses), end of year......... 189.9 396.5 (220.5)
----------------- ----------------- -----------------
Minimum pension liability, beginning of year.................. (35.1) (2.7) (15.0)
Change in minimum pension liability........................... 22.2 (32.4) 12.3
----------------- ----------------- -----------------
Minimum pension liability, end of year........................ (12.9) (35.1) (2.7)
----------------- ----------------- -----------------
TOTAL SHAREHOLDER'S EQUITY, END OF YEAR....................... $ 4,084.0 $ 4,258.1 $ 3,360.7
================= ================= =================
</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, 1996, 1995 AND 1994
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ----------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Net earnings.................................................. $ 10.3 $ 312.8 $ 263.8
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Interest credited to policyholders' account balances........ 1,270.2 1,248.3 1,201.3
Universal life and investment-type policy fee income........ (874.0) (788.2) (715.0)
Investment losses (gains)................................... 9.8 (5.3) (91.8)
Change in Federal income taxes payable...................... (197.1) 221.6 38.3
Other, net.................................................. 364.4 127.3 (19.4)
----------------- ----------------- -----------------
Net cash provided by operating activities..................... 583.6 1,116.5 677.2
----------------- ----------------- -----------------
Cash flows from investing activities:
Maturities and repayments................................... 2,275.1 1,897.4 2,323.8
Sales....................................................... 8,964.3 8,867.1 5,816.6
Return of capital from joint ventures and limited
partnerships.............................................. 78.4 65.2 39.0
Purchases................................................... (12,559.6) (11,675.5) (7,564.7)
Decrease (increase) in loans to discontinued GIC Segment.... 1,017.0 1,226.9 (40.0)
Other, net.................................................. 56.7 (624.7) (478.1)
----------------- ----------------- -----------------
Net cash (used) provided by investing activities.............. (168.1) (243.6) 96.6
----------------- ----------------- -----------------
Cash flows from financing activities:
Policyholders' account balances:
Deposits.................................................. 1,925.4 2,586.5 2,082.5
Withdrawals............................................... (2,385.2) (2,657.1) (2,864.4)
Net decrease in short-term financings....................... (.3) (16.4) (173.0)
Additions to long-term debt................................. - 599.7 51.8
Repayments of long-term debt................................ (124.8) (40.7) (199.8)
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.................................................. (66.5) (48.4) 26.5
----------------- ----------------- -----------------
Net cash (used) by financing activities....................... (651.4) (791.8) (676.4)
----------------- ----------------- -----------------
Change in cash and cash equivalents........................... (235.9) 81.1 97.4
Cash and cash equivalents, beginning of year.................. 774.7 693.6 596.2
----------------- ----------------- -----------------
Cash and Cash Equivalents, End of Year........................ $ 538.8 $ 774.7 $ 693.6
================= ================= =================
Supplemental cash flow information
Interest Paid............................................... $ 109.9 $ 89.6 $ 34.9
================= ================= =================
Income Taxes (Refunded) Paid................................ $ (10.0) $ (82.7) $ 49.2
================= ================= =================
</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 is
conducted principally by Equitable Life and its wholly owned life
insurance subsidiary, Equitable Variable Life Insurance Company
("EVLICO"). Effective January 1, 1997, EVLICO was merged into Equitable
Life, which will continue to conduct the Company's insurance business.
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 & Jenrette, Inc.
("DLJ"), an investment banking and brokerage affiliate. AXA-UAP ("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 60.8% at December 31, 1996 (63.6%
assuming conversion of Series E Convertible Preferred Stock held by AXA
and 54.4% if all securities convertible into, and 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 Equitable Life or its subsidiaries has control
and a majority economic interest (collectively, including its
consolidated subsidiaries, the "Company"). The Company's investment in
DLJ is reported on the equity basis of accounting. Closed Block assets
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).
The years "1996," "1995" and "1994" refer to the years ended December
31, 1996, 1995 and 1994, respectively.
Certain reclassifications have been made in the amounts presented for
prior periods to conform these periods with the 1996 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
(the "Superintendent"). Closed Block assets and liabilities are carried
on the same basis as similar assets and liabilities held in the General
Account. The excess of Closed Block liabilities over Closed Block assets
represents the expected future post-tax contribution from the Closed
Block which would be recognized in income over the period the policies
and contracts in the Closed Block remain in force.
Discontinued Operations
-----------------------
In 1991, the Company's management adopted a plan to discontinue the
business operations of the GIC Segment, consisting of the Group
Non-Participating Wind-Up Annuities ("Wind-Up Annuities") and Guaranteed
Interest Contract ("GIC") 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 Wind-Up Annuities.
Subsequent losses incurred have been charged to the two loss provisions.
Management reviews the adequacy of the allowance and reserve each
quarter. During the fourth quarter 1996 review, management determined it
was necessary to increase the allowance for expected future losses of
the GIC Segment. Management believes the loss provisions for GIC
contracts and Wind-Up Annuities at December 31, 1996 are adequate to
provide for all future losses; however, the determination of loss
provisions continues to involve numerous estimates and subjective
judgments regarding the expected performance of discontinued operations
investment assets. There can be no assurance the losses provided for
will not differ from the losses ultimately realized (See Note 7).
Accounting Changes
------------------
In 1996, the Company changed its method of accounting for long-duration
participating life insurance contracts, primarily within the Closed
Block, in accordance with the provisions prescribed by Statement of
Financial Accounting Standards ("SFAS") No. 120, "Accounting and
Reporting by Mutual Life Insurance Enterprises and by Insurance
Enterprises for Certain Long-Duration Participating Contracts". The
effect of this change, including the impact on the Closed Block, was to
increase earnings from continuing operations before cumulative effect of
accounting change by $19.2 million, net of Federal income taxes of $10.3
million for 1996. The financial statements for 1995 and 1994 have been
retroactively restated for the change which resulted in an increase
(decrease) in earnings before cumulative effect of accounting change of
$15.2 million, net of Federal income taxes of $8.2 million, and $(2.6)
million, net of Federal income tax benefit of $1.0 million,
respectively. Shareholder's equity increased $199.1 million as of
January 1, 1994 for the effect of retroactive application of the new
method. (See "Deferred Policy Acquisition Costs," "Policyholders'
Account Balances and Future Policy Benefits" and Note 6.)
The Company implemented SFAS No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of," as of
January 1, 1996. The statement requires long-lived assets and certain
identifiable intangibles be reviewed for impairment whenever events or
changes in circumstances
F-7
<PAGE>
indicate the carrying value of such assets may not be recoverable.
Effective with SFAS No. 121's adoption, impaired real estate is written
down to fair value with the impairment loss being included in investment
gains (losses), net. Before implementing SFAS No. 121, valuation
allowances on real estate held for the production of income were
computed using the forecasted cash flows of the respective properties
discounted at a rate equal to the Company's cost of funds. The adoption
of the statement resulted in the release of valuation allowances of
$152.4 million and recognition of impairment losses of $144.0 million on
real estate held and used. Real estate which management has committed to
disposing of by sale or abandonment is classified as real estate to be
disposed of. Valuation allowances on real estate to be disposed of
continue to be computed using the lower of estimated fair value or
depreciated cost, net of disposition costs. Implementation of the SFAS
No. 121 impairment requirements relative to other assets to be disposed
of resulted in a charge for the cumulative effect of an accounting
change of $23.1 million, net of a Federal income tax benefit of $12.4
million, due to the writedown to fair value of building improvements
relating to facilities being vacated beginning in 1996.
In the first quarter of 1995, the Company adopted 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.
Beginning coincident with issuance of SFAS No. 115, "Accounting for
Certain Investments in Debt and Equity Securities," 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 $149.4 million, net of deferred policy
acquisition costs ("DAC"), amounts attributable to participating group
annuity contracts and deferred Federal income taxes.
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.
New Accounting Pronouncements
-----------------------------
The FASB issued SFAS No. 123, "Accounting for Stock-Based Compensation,"
which permits entities to recognize as expense over the vesting period
the fair value of all stock-based awards on the date of grant or,
alternatively, to continue to apply the provisions of Accounting
Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to
Employees," and related interpretations. Companies which elect to
continue to apply APB Opinion No. 25 must provide pro forma net income
disclosures for employee stock option grants made in 1995 and future
years as if the fair-value-based method defined in SFAS No. 123 had been
applied. The Company accounts for stock option plans sponsored by the
Holding Company, DLJ and Alliance in accordance with the provisions of
APB Opinion No. 25 (see Note 21).
F-8
<PAGE>
In June 1996, the FASB issued SFAS No. 125, "Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities".
SFAS No. 125 specifies the accounting and reporting requirements for
transfers of financial assets, the recognition and measurement of
servicing assets and liabilities and extinguishments of liabilities.
SFAS No. 125 is effective for transactions occurring after December 31,
1996 and is to be applied prospectively. In December 1996, the FASB
issued SFAS No. 127, "Deferral of the Effective Date of Certain
Provisions of FASB Statement No. 125," which defers for one year the
effective date of provisions relating to secured borrowings and
collateral and transfers of financial assets that are part of repurchase
agreements, dollar-roll, securities lending and similar transactions.
Management has not yet determined the effect of implementing SFAS No.
125.
Valuation of Investments
------------------------
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. Impaired real
estate is written down to fair value with the impairment loss being
included in investment gains (losses) net. Valuation allowances on real
estate available for sale are computed using the lower of current
estimated fair value or depreciated cost, net of disposition costs.
Prior to the adoption of SFAS No. 121, valuation allowances on real
estate held for the production of income were computed using the
forecasted cash flows of the respective properties discounted at a rate
equal to the Company's cost of funds.
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 which are passed through to the contractholders
are reflected as interest credited to policyholders' account balances.
F-9
<PAGE>
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, participating group annuity contracts, and DAC related to
universal life and investment-type products and participating
traditional life contracts.
Recognition of Insurance Income and Related Expenses
----------------------------------------------------
Premiums from universal life and investment-type contracts are reported
as deposits to policyholders' account balances. Revenues from these
contracts consist of amounts assessed during the period against
policyholders' account balances for mortality charges, policy
administration charges and surrender charges. Policy benefits and claims
that are charged to expense include benefit claims incurred in the
period in excess of related policyholders' account balances.
Premiums from participating and non-participating traditional life and
annuity policies with life contingencies generally are recognized as
income when due. Benefits and expenses are matched with such income so
as to result in the recognition of profits over the life of the
contracts. This match is accomplished by means of the provision for
liabilities for future policy benefits and the deferral and subsequent
amortization of policy acquisition costs.
For contracts with a single premium or a limited number of premium
payments due over a significantly shorter period than the total period
over which benefits are provided, premiums are recorded as income when
due with any excess profit deferred and recognized in income in a
constant relationship to insurance in force or, for annuities, the
amount of expected future benefit payments.
Premiums from individual health contracts are recognized as income over
the period to which the premiums relate in proportion to the amount of
insurance protection provided.
Deferred Policy Acquisition Costs
---------------------------------
The costs of acquiring new business, principally commissions,
underwriting, agency and policy issue expenses, all of which vary with
and are primarily related to the production of new business, are
deferred. DAC is subject to recoverability testing at the time of policy
issue and loss recognition testing at the end of each accounting period.
For universal life products and investment-type products, DAC is
amortized over the expected total life of the contract group (periods
ranging from 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 DAC of
revisions to estimated gross profits is reflected in earnings in the
period such estimated gross profits are revised. The effect on the DAC
asset that would result from realization of unrealized gains (losses) is
recognized with an offset to unrealized gains (losses) in consolidated
shareholder's equity as of the balance sheet date.
For participating traditional life policies (substantially all of which
are in the Closed Block), DAC is amortized over the expected total life
of the contract group (40 years) as a constant percentage based on the
present value of the estimated gross margin amounts expected to be
realized over the life of the contracts using the expected investment
yield. At December 31, 1996, the expected investment yield ranged from
7.30% grading to 7.68% over 13 years. Estimated gross margin includes
anticipated premiums and investment results less claims and
administrative expenses, changes in the net level premium reserve and
expected annual policyholder dividends. Deviations of actual results
from estimated experience are reflected in earnings in the period such
deviations occur. The effect on the DAC 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.
F-10
<PAGE>
For non-participating traditional life and annuity policies with life
contingencies, DAC is amortized in proportion to anticipated premiums.
Assumptions as to anticipated premiums are estimated at the date of
policy issue and are consistently applied during the life of the
contracts. Deviations from estimated experience are reflected in
earnings in the period such deviations occur. For these contracts, the
amortization periods generally are for the total life of the policy.
For individual health benefit insurance, DAC is amortized over the
expected average life of the contracts (10 years for major medical
policies and 20 years for disability income ("DI") products) in
proportion to anticipated premium revenue at time of issue. In the
fourth quarter of 1996, the DAC related to DI contracts issued prior to
July 1993 was written off.
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.
For participating traditional life policies, future policy benefit
liabilities are calculated using a net level premium method on the basis
of actuarial assumptions equal to guaranteed mortality and dividend fund
interest rates. The liability for annual dividends represents the
accrual of annual dividends earned. Terminal dividends are accrued in
proportion to gross margins over the life of the contract.
For non-participating traditional life insurance policies, future policy
benefit liabilities are estimated using a net level premium method on
the basis of actuarial assumptions as to mortality, persistency and
interest established at policy issue. Assumptions established at policy
issue as to mortality and persistency are based on the Insurance Group's
experience which, together with interest and expense assumptions,
include 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, DAC is written off and
thereafter, if required, a premium deficiency reserve is established by
a charge to earnings. Benefit liabilities for traditional annuities
during the accumulation period are equal to accumulated contractholders'
fund balances and after annuitization are equal to the present value of
expected future payments. Interest rates used in establishing such
liabilities range from 2.25% to 11.5% for life insurance liabilities and
from 2.25% to 13.5% for annuity liabilities.
During the fourth quarter of 1996, a loss recognition study on
participating group annuity contracts and conversion annuities ("Pension
Par") was completed which included management's revised estimate of
assumptions, including expected mortality and future investment returns.
The study's results prompted management to establish a premium
deficiency reserve which decreased earnings from continuing operations
and net earnings by $47.5 million ($73.0 million pre-tax).
Individual health benefit liabilities for active lives are estimated
using the net level premium method, and assumptions as to future
morbidity, withdrawals and interest. Benefit liabilities for disabled
lives are estimated using the present value of benefits method and
experience assumptions as to claim terminations, expenses and interest.
During the fourth quarter of 1996, the Company completed a loss
recognition study of the DI business which incorporated management's
revised estimates of future experience with regard to morbidity,
investment returns, claims and administration expenses and other
factors. The study indicated DAC was not recoverable and the reserves
were not sufficient. Earnings from continuing operations and net
earnings decreased by $208.0 million ($320.0 million pre-tax) as a
result of strengthening DI reserves by $175.0 million and writing off
unamortized DAC of $145.0 million. The determination of DI reserves
requires making assumptions and estimates relating to a variety of
factors, including morbidity and interest rates, claims experience and
lapse
F-11
<PAGE>
rates based on then known facts and circumstances. Such factors as claim
incidence and termination rates can be affected by changes in the
economic, legal and regulatory environments and work ethic. While
management believes its DI reserves have been calculated on a reasonable
basis and are adequate, there can be no assurance reserves will be
sufficient to provide for future liabilities.
Claim reserves and associated liabilities for individual disability
income and major medical policies were $711.8 million and $639.6 million
at December 31, 1996 and 1995, respectively (excluding $175.0 million of
reserve strengthening in 1996). Incurred benefits (benefits paid plus
changes in claim reserves) and benefits paid for individual DI and major
medical policies (excluding $175.0 million of reserve strengthening in
1996) are summarized as follows:
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Incurred benefits related to current year.......... $ 189.0 $ 176.0 $ 188.6
Incurred benefits related to prior years........... 69.1 67.8 28.7
----------------- ---------------- -----------------
Total Incurred Benefits............................ $ 258.1 $ 243.8 $ 217.3
================= ================ =================
Benefits paid related to current year.............. $ 32.6 $ 37.0 $ 43.7
Benefits paid related to prior years............... 153.3 137.8 132.3
----------------- ---------------- -----------------
Total Benefits Paid................................ $ 185.9 $ 174.8 $ 176.0
================= ================ =================
</TABLE>
Policyholders' Dividends
------------------------
The amount of policyholders' dividends to be paid (including those on
policies included in the Closed Block) is determined annually by
Equitable Life's Board of Directors. The aggregate amount of
policyholders' dividends is related to actual interest, mortality,
morbidity and expense experience for the year and judgment as to the
appropriate level of statutory surplus to be retained by Equitable Life.
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, if any, would be accrued as
policyholders' dividends.
At December 31, 1996, participating policies, including those in the
Closed Block, represent approximately 24.2% ($52.3 billion) of directly
written life insurance in force, net of amounts ceded.
Federal Income Taxes
--------------------
The Company files a consolidated Federal income tax return with the
Holding Company and its non-life insurance subsidiaries. Current Federal
income taxes were 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 were
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.
F-12
<PAGE>
Assets and liabilities of the Separate Accounts, representing net
deposits and accumulated net investment earnings less fees, held
primarily for the benefit of contractholders, and for which the
Insurance Group does not bear the investment risk, are shown as separate
captions in the consolidated balance sheets. The Insurance Group bears
the investment risk on assets held in one Separate Account, therefore,
such assets are carried on the same basis as similar assets held in the
General Account portfolio. Assets held in the other Separate Accounts
are carried at quoted market values or, where quoted values are not
available, at estimated fair values as determined by the Insurance
Group.
The investment results of Separate Accounts on which the Insurance Group
does not bear the investment risk are reflected directly in Separate
Accounts liabilities. For 1996, 1995 and 1994, investment results of
such Separate Accounts were $2,970.6 million, $1,963.2 million and
$665.2 million, respectively.
Deposits to Separate Accounts are reported as increases in Separate
Accounts liabilities and are not reported in revenues. Mortality, policy
administration and surrender charges on all Separate Accounts are
included in revenues.
F-13
<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, 1996
-----------------
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 13,645.2 $ 451.5 $ 121.0 $ 13,975.7
Mortgage-backed.................... 2,015.9 11.2 20.3 2,006.8
U.S. Treasury securities and
U.S. government and
agency securities................ 1,539.4 39.2 19.3 1,559.3
States and political subdivisions.. 77.0 4.5 - 81.5
Foreign governments................ 302.6 18.0 2.2 318.4
Redeemable preferred stock......... 139.1 3.3 7.1 135.3
----------------- ----------------- ---------------- ---------------
Total Available for Sale............... $ 17,719.2 $ 527.7 $ 169.9 $ 18,077.0
================= ================= ================ ===============
Equity Securities:
Common stock......................... $ 98.7 $ 49.3 $ 17.7 $ 130.3
================= ================= ================ ===============
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
================= ================= ================ ===============
</TABLE>
For publicly traded fixed maturities and equity securities, estimated
fair value is determined using quoted market prices. For fixed
maturities without a readily ascertainable market value, the Company has
determined an estimated fair value using a discounted cash flow
approach, including provisions for credit risk, generally based upon the
assumption 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, 1996 and 1995, securities
without a readily ascertainable market value having an amortized cost of
$3,915.7 million and $3,748.9 million, respectively, had estimated fair
values of $4,024.6 million and $3,981.8 million, respectively.
F-14
<PAGE>
The contractual maturity of bonds at December 31, 1996 is shown below:
AVAILABLE FOR SALE
------------------------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
---------------- -----------------
(IN MILLIONS)
Due in one year or less........... $ 539.6 $ 542.5
Due in years two through five..... 2,776.2 2,804.0
Due in years six through ten...... 6,044.7 6,158.1
Due after ten years............... 6,203.7 6,430.3
Mortgage-backed securities........ 2,015.9 2,006.8
---------------- -----------------
Total............................. $ 17,580.1 $ 17,941.7
================ =================
Bonds not due at a single maturity date have been included in the above
table in the year of final maturity. Actual maturities will differ from
contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties.
The Insurance Group's fixed maturity investment portfolio includes
corporate high yield securities consisting of public high yield bonds,
redeemable preferred stocks and directly negotiated debt in leveraged
buyout transactions. The Insurance Group seeks to minimize the higher
than normal credit risks associated with such securities by monitoring
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,
1996, approximately 14.20% of the $17,563.7 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 includes amortized
costs of $5.5 million and $15.9 million at December 31, 1996 and 1995,
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 $2.2 million and $1.6
million as of December 31, 1996 and 1995, respectively. Gross interest
income that would have been recorded in accordance with the original
terms of restructured fixed maturities amounted to $1.4 million, $3.0
million and $7.5 million in 1996, 1995 and 1994, respectively. Gross
interest income on these fixed maturities included in net investment
income aggregated $1.3 million, $2.9 million and $6.8 million in 1996,
1995 and 1994, respectively.
F-15
<PAGE>
Investment valuation allowances and changes thereto are shown below:
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Balances, beginning of year........................ $ 325.3 $ 284.9 $ 355.6
SFAS No. 121 release............................... (152.4) - -
Additions charged to income........................ 125.0 136.0 51.0
Deductions for writedowns and
asset dispositions............................... (160.8) (95.6) (121.7)
----------------- ---------------- -----------------
Balances, End of Year.............................. $ 137.1 $ 325.3 $ 284.9
================= ================ =================
Balances, end of year comprise:
Mortgage loans on real estate.................... $ 50.4 $ 65.5 $ 64.2
Equity real estate............................... 86.7 259.8 220.7
----------------- ---------------- -----------------
Total.............................................. $ 137.1 $ 325.3 $ 284.9
================= ================ =================
</TABLE>
At December 31, 1996, 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 $25.0 million
of fixed maturities and $2.6 million of mortgage loans on real estate.
At December 31, 1996 and 1995, 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 $12.4 million (0.4% of total
mortgage loans on real estate) and $87.7 million (2.4% 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 $388.3
million and $531.5 million at December 31, 1996 and 1995, respectively.
These amounts include $1.0 million and $3.8 million of problem mortgage
loans on real estate at December 31, 1996 and 1995, 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 $35.5 million, $52.1 million and $44.9 million in 1996, 1995
and 1994, respectively. Gross interest income on these loans included in
net investment income aggregated $28.2 million, $37.4 million and $32.8
million in 1996, 1995 and 1994, respectively.
Impaired mortgage loans (as defined under SFAS No. 114) along with the
related provision for losses were as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
----------------------------------------
1996 1995
------------------- -------------------
(IN MILLIONS)
<S> <C> <C>
Impaired mortgage loans with provision for losses.................. $ 340.0 $ 310.1
Impaired mortgage loans with no provision for losses............... 122.3 160.8
------------------- -------------------
Recorded investment in impaired mortgage loans..................... 462.3 470.9
Provision for losses............................................... 46.4 62.7
------------------- -------------------
Net Impaired Mortgage Loans........................................ $ 415.9 $ 408.2
=================== ===================
</TABLE>
Impaired mortgage loans with no provision for losses are loans where the
fair value of the collateral or the net present value of the expected
future cash flows related to the loan equals or exceeds the recorded
investment. Interest income earned on loans where the collateral value
is used to measure impairment is recorded on a
F-16
<PAGE>
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 1996 and 1995, respectively, the Company's average recorded
investment in impaired mortgage loans was $552.1 million and $429.0
million. Interest income recognized on these impaired mortgage loans
totaled $38.8 million and $27.9 million for 1996 and 1995, respectively,
including $17.9 million and $13.4 million recognized on a cash basis.
The Insurance Group's investment in equity real estate is through direct
ownership and through investments in real estate joint ventures. At
December 31, 1996 and 1995, the carrying value of equity real estate
available for sale amounted to $345.6 million and $255.5 million,
respectively. For 1996, 1995 and 1994, respectively, real estate of
$58.7 million, $35.3 million and $189.8 million was acquired in
satisfaction of debt. At December 31, 1996 and 1995, the Company owned
$771.7 million and $862.7 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 $587.5
million and $662.4 million at December 31, 1996 and 1995, respectively.
Depreciation expense on real estate totaled $91.8 million, $121.7
million and $117.0 million for 1996, 1995 and 1994, respectively. As a
result of the implementation of SFAS No. 121, during 1996 no
depreciation expense has been recorded on real estate available for
sale.
F-17
<PAGE>
4) JOINT VENTURES AND PARTNERSHIPS
Summarized combined financial information of real estate joint ventures
(34 and 38 individual ventures as of December 31, 1996 and 1995,
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,
------------------------------------
1996 1995
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
FINANCIAL POSITION
Investments in real estate, at depreciated cost........................ $ 1,883.7 $ 2,684.1
Investments in securities, generally at estimated fair value........... 2,430.6 2,459.8
Cash and cash equivalents.............................................. 98.0 489.1
Other assets........................................................... 427.0 270.8
---------------- -----------------
Total assets........................................................... 4,839.3 5,903.8
---------------- -----------------
Borrowed funds - third party........................................... 1,574.3 1,782.3
Borrowed funds - the Company........................................... 137.9 220.5
Other liabilities...................................................... 415.8 593.9
---------------- -----------------
Total liabilities...................................................... 2,128.0 2,596.7
---------------- -----------------
Partners' Capital...................................................... $ 2,711.3 $ 3,307.1
================ =================
Equity in partners' capital included above............................. $ 806.8 $ 902.2
Equity in limited partnership interests not included above............. 201.8 212.8
Other.................................................................. 9.8 8.9
---------------- -----------------
Carrying Value......................................................... $ 1,018.4 $ 1,123.9
================ =================
</TABLE>
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Revenues of real estate joint ventures............. $ 348.9 $ 463.5 $ 537.7
Revenues of other limited partnership interests.... 386.1 242.3 103.4
Interest expense - third party..................... (111.0) (135.3) (114.9)
Interest expense - the Company..................... (30.0) (41.0) (36.9)
Other expenses..................................... (282.5) (397.7) (430.9)
----------------- ---------------- -----------------
Net Earnings....................................... $ 311.5 $ 131.8 $ 58.4
================= ================ =================
Equity in net earnings included above.............. $ 73.9 $ 49.1 $ 18.9
Equity in net earnings of limited partnerships
interests not included above..................... 35.8 44.8 25.3
Other.............................................. .9 1.0 1.8
----------------- ---------------- -----------------
Total Equity in Net Earnings....................... $ 110.6 $ 94.9 $ 46.0
================= ================ =================
</TABLE>
F-18
<PAGE>
5) NET INVESTMENT INCOME AND INVESTMENT GAINS (LOSSES)
The sources of net investment income are summarized as follows:
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities.................... $ 1,307.4 $ 1,151.1 $ 1,036.5
Mortgage loans on real estate....... 303.0 329.0 385.7
Equity real estate.................. 442.4 560.4 561.8
Other equity investments............ 94.3 76.9 36.1
Policy loans........................ 160.3 144.4 122.7
Other investment income............. 217.4 273.0 322.4
----------------- ---------------- -----------------
Gross investment income........... 2,524.8 2,534.8 2,465.2
----------------- ---------------- -----------------
Investment expenses............... 348.9 446.6 466.6
----------------- ---------------- -----------------
Net Investment Income............... $ 2,175.9 $ 2,088.2 $ 1,998.6
================= ================ =================
Investment gains (losses), net, including changes in the valuation
allowances, are summarized as follows:
</TABLE>
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities................................... $ 60.5 $ 119.9 $ (14.3)
Mortgage loans on real estate...................... (27.3) (40.2) (43.1)
Equity real estate................................. (79.7) (86.6) 20.6
Other equity investments........................... 18.9 12.8 75.9
Issuance and sales of Alliance Units............... 20.6 - 52.4
Other.............................................. (2.8) (.6) .3
----------------- ---------------- -----------------
Investment (Losses) Gains, Net..................... $ (9.8) $ 5.3 $ 91.8
================= ================ =================
</TABLE>
Writedowns of fixed maturities amounted to $29.9 million, $46.7 million
and $30.8 million for 1996, 1995 and 1994, respectively, and writedowns
of equity real estate subsequent to the adoption of SFAS No. 121
amounted to $23.7 million for the year ended December 31, 1996.
For 1996, 1995 and 1994, respectively, proceeds received on sales of
fixed maturities classified as available for sale amounted to $8,353.5
million, $8,206.0 million and $5,253.9 million. Gross gains of $154.2
million, $211.4 million and $65.2 million and gross losses of $92.7
million, $64.2 million and $50.8 million, respectively, were realized on
these sales. The change in unrealized investment (losses) gains related
to fixed maturities classified as available for sale for 1996, 1995 and
1994 amounted to $(258.0) million, $1,077.2 million and $(742.2)
million, respectively.
During each of 1995 and 1994, one security classified as held to
maturity was sold. 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 costs 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 shareholder's equity for the eleven months ended November
30, 1995 and the year ended December 31,
F-19
<PAGE>
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 $395.6 million, offset by DAC of $126.5 million,
amounts attributable to participating group annuity contracts of $39.2
million and deferred Federal income taxes of $80.5 million.
For 1996, 1995 and 1994, investment results passed through to certain
participating group annuity contracts as interest credited to
policyholders' account balances amounted to $136.7 million, $131.2
million and $175.8 million, respectively.
In 1996, Alliance acquired the business of Cursitor-Eaton Asset
Management Company and Cursitor Holdings Limited (collectively,
"Cursitor") for approximately $159.0 million. The purchase price
consisted of $94.3 million in cash, 1.8 million 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 excess of
the purchase price, including acquisition costs and minority interest,
over the fair value of Cursitor's net assets acquired resulted in the
recognition of intangible assets consisting of costs assigned to
contracts acquired and goodwill of approximately $122.8 million and
$38.3 million, respectively, which are being amortized over the
estimated useful lives of 20 years. The Company recognized an investment
gain of $20.6 million as a result of the issuance of Alliance Units in
this transaction. At December 31, 1996, the Company's ownership of
Alliance Units was approximately 57.3%.
In 1994, Alliance sold 4.96 million newly issued Alliance Units to third
parties at prevailing market prices. 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.
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>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year as restated............. $ 396.5 $ (220.5) $ 144.6
Changes in unrealized investment (losses) gains.... (297.6) 1,198.9 (856.7)
Changes in unrealized investment losses
(gains) attributable to:
Participating group annuity contracts.......... - (78.1) 40.8
DAC............................................ 42.3 (216.8) 273.6
Deferred Federal income taxes.................. 48.7 (287.0) 177.2
----------------- ---------------- -----------------
Balance, End of Year............................... $ 189.9 $ 396.5 $ (220.5)
================= ================ =================
Balance, end of year comprises:
Unrealized investment gains (losses) on:
Fixed maturities............................... $ 357.8 $ 615.9 $ (461.3)
Other equity investments....................... 31.6 31.1 7.7
Other, principally Closed Block................ 53.1 93.1 (5.1)
----------------- ---------------- -----------------
Total........................................ 442.5 740.1 (458.7)
Amounts of unrealized investment (gains)
losses attributable to:
Participating group annuity contracts........ (72.2) (72.2) 5.9
DAC.......................................... (52.0) (94.3) 122.4
Deferred Federal income taxes................ (128.4) (177.1) 109.9
----------------- ---------------- -----------------
Total.............................................. $ 189.9 $ 396.5 $ (220.5)
================= ================ =================
</TABLE>
F-20
<PAGE>
6) CLOSED BLOCK
Summarized financial information of the Closed Block follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1996 1995
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets
Fixed Maturities:
Available for sale, at estimated fair value (amortized cost,
$3,820.7 and $3,662.8)...................................... $ 3,889.5 $ 3,896.2
Mortgage loans on real estate................................... 1,380.7 1,368.8
Policy loans.................................................... 1,765.9 1,797.2
Cash and other invested assets.................................. 336.1 440.9
DAC............................................................. 876.5 792.6
Other assets.................................................... 246.3 286.4
----------------- -----------------
Total Assets.................................................... $ 8,495.0 $ 8,582.1
================= =================
Liabilities
Future policy benefits and policyholders' account balances...... $ 8,999.7 $ 8,923.5
Other liabilities............................................... 91.6 297.9
----------------- -----------------
Total Liabilities............................................... $ 9,091.3 $ 9,221.4
================= =================
</TABLE>
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Premiums and other revenue......................... $ 724.8 $ 753.4 $ 798.1
Investment income (net of investment
expenses of $27.3, $26.7 and $19.0).............. 546.6 538.9 523.0
Investment losses, net............................. (5.5) (20.2) (24.0)
----------------- ---------------- -----------------
Total revenues............................... 1,265.9 1,272.1 1,297.1
----------------- ---------------- -----------------
Benefits and Other Deductions
Policyholders' benefits and dividends.............. 1,106.3 1,077.6 1,121.6
Other operating costs and expenses................. 34.6 51.3 38.5
----------------- ---------------- -----------------
Total benefits and other deductions.......... 1,140.9 1,128.9 1,160.1
----------------- ---------------- -----------------
Contribution from the Closed Block................. $ 125.0 $ 143.2 $ 137.0
================= ================ =================
</TABLE>
In the fourth quarter of 1996, the Company adopted SFAS No. 120, which
prescribes the accounting for individual participating life insurance
contracts, most of which are included in the Closed Block. The
implementation of SFAS No. 120 resulted in an increase (decrease) in the
contribution from the Closed Block of $27.5 million, $18.8 million and
$(14.0) million in 1996, 1995 and 1994, respectively.
The fixed maturity portfolio, based on amortized cost, includes $.4
million and $4.3 million at December 31, 1996 and 1995, respectively, of
restructured securities which includes problem fixed maturities of $.3
million and $1.9 million, respectively.
F-21
<PAGE>
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 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, offset by DAC amortization of $52.6 million.
At December 31, 1996 and 1995, problem mortgage loans on real estate had
an amortized cost of $4.3 million and $36.5 million, respectively, and
mortgage loans on real estate for which the payment terms have been
restructured had an amortized cost of $114.2 million and $137.7 million,
respectively. At December 31, 1996 and 1995, the restructured mortgage
loans on real estate amount included $.7 million and $8.8 million,
respectively, of problem mortgage loans on real estate.
Impaired mortgage loans (as defined under SFAS No. 114) along with the
related provision for losses were as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1996 1995
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Impaired mortgage loans with provision for losses......... $ 128.1 $ 106.8
Impaired mortgage loans with no provision for losses...... .6 10.1
---------------- -----------------
Recorded investment in impaired mortgages................. 128.7 116.9
Provision for losses...................................... 12.9 17.9
---------------- -----------------
Net Impaired Mortgage Loans............................... $ 115.8 $ 99.0
================ =================
</TABLE>
During 1996 and 1995, respectively, the Closed Block's average recorded
investment in impaired mortgage loans was $153.8 million and $146.9
million, respectively. Interest income recognized on these impaired
mortgage loans totaled $10.9 million and $5.9 million for 1996 and 1995,
respectively, including $4.7 million and $1.3 million recognized on a
cash basis.
Valuation allowances amounted to $13.8 million and $18.4 million on
mortgage loans on real estate and $3.7 million and $4.3 million on
equity real estate at December 31, 1996 and 1995, respectively.
Writedowns of fixed maturities amounted to $12.8 million, $16.8 million
and $15.9 million for 1996, 1995 and 1994, respectively. As of January
1, 1996, the adoption of SFAS No. 121 resulted in the recognition of
impairment losses of $5.6 million on real estate held and used.
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-22
<PAGE>
7) DISCONTINUED OPERATIONS
Summarized financial information of the GIC Segment follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1996 1995
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets
Mortgage loans on real estate........... $ 1,111.1 $ 1,485.8
Equity real estate...................... 925.6 1,122.1
Other invested assets................... 474.0 665.2
Other assets............................ 226.1 579.3
----------------- -----------------
Total Assets............................ $ 2,736.8 $ 3,852.4
================= =================
Liabilities
Policyholders' liabilities.............. $ 1,335.9 $ 1,399.8
Allowance for future losses............. 262.0 164.2
Amounts due to continuing operations.... 996.2 2,097.1
Other liabilities....................... 142.7 191.3
----------------- -----------------
Total Liabilities....................... $ 2,736.8 $ 3,852.4
================= =================
</TABLE>
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Investment income (net of investment expenses
of $127.5, $153.1 and $183.3).................... $ 245.4 $ 323.6 $ 394.3
Investment (losses) gains, net..................... (18.9) (22.9) 26.8
Policy fees, premiums and other income............. .2 .7 .4
----------------- ---------------- -----------------
Total revenues..................................... 226.7 301.4 421.5
Benefits and other deductions...................... 250.4 326.5 443.2
Losses charged to allowance for future losses...... (23.7) (25.1) (21.7)
----------------- ---------------- -----------------
Pre-tax loss from operations....................... - - -
Pre-tax loss from strengthening of the
allowance for future losses...................... (129.0) - -
Federal income tax benefit......................... 45.2 - -
----------------- ---------------- -----------------
Loss from Discontinued Operations.................. $ (83.8) $ - $ -
================= ================ =================
</TABLE>
In 1991, management adopted a plan to discontinue the business
operations of the GIC Segment consisting of group non-participating
Wind-Up Annuities and the GIC lines of business. The loss allowance and
premium deficiency reserve of $569.6 million provided for in 1991 were
based on management's best judgment at that time.
The Company's quarterly process for evaluating the loss provisions
applies the current period's results of the discontinued operations
against the allowance, re-estimates future losses, and adjusts the
provisions, if appropriate. Additionally, as part of the Company's
annual planning process which takes place in the fourth quarter of each
year, investment and benefit cash flow projections are prepared. These
updated assumptions and estimates resulted in the need to strengthen the
loss provisions by $129.0 million, resulting in a post-tax charge of
$83.8 million to discontinued operations' results in the fourth quarter
of 1996.
F-23
<PAGE>
Management believes the loss provisions for Wind-Up Annuities and GIC
contracts at December 31, 1996 are adequate to provide for all future
losses; however, the determination of loss provisions continues to
involve numerous estimates and subjective judgments regarding the
expected performance of discontinued operations investment assets. There
can be no assurance the losses provided for will not differ from the
losses ultimately realized. To the extent actual results or future
projections of the discontinued operations differ from management's
current best estimates and assumptions underlying the loss provisions,
the difference would be reflected in the consolidated statements of
earnings in discontinued operations. In particular, to the extent
income, sales proceeds and holding periods for equity real estate differ
from management's previous assumptions, periodic adjustments to the loss
provisions are likely to result.
In January 1995, continuing operations transferred $1,215.4 million in
cash to the GIC Segment in settlement of its obligation to provide
assets to fund the accumulated deficit of the GIC Segment. 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, 1996, consisted of $1,080.0
million borrowed by the discontinued GIC Segment offset by $83.8 million
representing an obligation of continuing operations to provide assets to
fund the accumulated deficit of the GIC Segment.
Investment income included $88.2 million of interest income for 1994 on
amounts due from continuing operations. Benefits and other deductions
include $114.3 million, $154.6 million and $219.7 million of interest
expense related to amounts borrowed from continuing operations in 1996,
1995 and 1994, respectively.
Valuation allowances amounted to $9.0 million and $19.2 million on
mortgage loans on real estate and $20.4 million and $77.9 million on
equity real estate at December 31, 1996 and 1995, respectively. As of
January 1, 1996, the adoption of SFAS No. 121 resulted in a release of
existing valuation allowances of $71.9 million on equity real estate and
recognition of impairment losses of $69.8 million on real estate held
and used. Writedowns of fixed maturities amounted to $1.6 million, $8.1
million and $17.8 million for 1996, 1995 and 1994, respectively and
writedowns of equity real estate subsequent to the adoption of SFAS No.
121 amounted to $12.3 million for 1996.
The fixed maturity portfolio, based on amortized cost, includes $6.2
million and $15.1 million at December 31, 1996 and 1995, respectively,
of restructured securities. These amounts include problem fixed
maturities of $.5 million and $6.1 million at December 31, 1996 and
1995, respectively.
At December 31, 1996 and 1995, problem mortgage loans on real estate had
amortized costs of $7.9 million and $35.4 million, respectively, and
mortgage loans on real estate for which the payment terms have been
restructured had amortized costs of $208.1 million and $289.3 million,
respectively.
Impaired mortgage loans (as defined under SFAS No. 114) along with the
related provision for losses were as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1996 1995
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Impaired mortgage loans with provision for losses....... $ 83.5 $ 105.1
Impaired mortgage loans with no provision for losses.... 15.0 18.2
---------------- -----------------
Recorded investment in impaired mortgages............... 98.5 123.3
Provision for losses.................................... 8.8 17.7
---------------- -----------------
Net Impaired Mortgage Loans............................. $ 89.7 $ 105.6
================ =================
</TABLE>
F-24
<PAGE>
During 1996 and 1995, the GIC Segment's average recorded investment in
impaired mortgage loans was $134.8 million and $177.4 million,
respectively. Interest income recognized on these impaired mortgage
loans totaled $10.1 million and $4.5 million for 1996 and 1995,
respectively, including $7.5 million and $.4 million recognized on a
cash basis.
At December 31, 1996 and 1995, the GIC Segment had $263.0 million and
$310.9 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,
--------------------------------------
1996 1995
----------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Short-term debt.................................... $ 174.1 $ -
----------------- -----------------
Long-term debt:
Equitable Life:
6.95% surplus notes scheduled to mature 2005..... 399.4 399.3
7.70% surplus notes scheduled to mature 2015..... 199.6 199.6
Eurodollar notes, 10.5% due 1997................. - 76.2
Zero coupon note, 11.25% due 1997................ - 120.1
Other............................................ .5 16.3
----------------- -----------------
Total Equitable Life......................... 599.5 811.5
----------------- -----------------
Wholly Owned and Joint Venture Real Estate:
Mortgage notes, 4.92% - 12.50% due through 2006.. 968.6 1,084.4
----------------- -----------------
Alliance:
Other............................................ 24.7 3.4
----------------- -----------------
Total long-term debt............................... 1,592.8 1,899.3
----------------- -----------------
Total Short-term and Long-term Debt................ $ 1,766.9 $ 1,899.3
================= =================
</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, 1996 range from 5.73% (the London Interbank Offering Rate
("LIBOR") plus 22.5 basis points) to 8.25% (the prime rate). There were
no borrowings outstanding under this bank credit facility at December
31, 1996.
F-25
<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,
1996.
In February 1996, Alliance entered into a new $250.0 million five-year
revolving credit facility with a group of banks which replaced its
$100.0 million revolving credit facility and its $100.0 million
commercial paper back-up revolving credit facility. Under the new
revolving credit facility, the interest rate, at the option of Alliance,
is a floating rate generally based upon a defined prime rate, a rate
related to the LIBOR or the Federal Funds rate. A facility fee is
payable on the total facility. The revolving credit facility will be
used to provide back-up liquidity for commercial paper to be used under
Alliance's $100.0 million commercial paper program, to fund commission
payments to financial intermediaries for the sale of Class B and C
shares under Alliance's mutual fund distribution system, and for general
working capital purposes. As of December 31, 1996, Alliance had not
issued any commercial paper under its $100.0 million commercial paper
program and there were no borrowings outstanding under Alliance's
revolving credit facility.
At December 31, 1996, long-term debt expected to mature in 1997 totaling
$174.1 million was reclassified as short-term debt.
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 (together, the "Surplus Notes"). 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 $1.0
million at December 31, 1996. Payments of interest on or principal of
the Surplus Notes are subject to prior approval by the Superintendent.
The Company has pledged real estate, mortgage loans, cash and securities
amounting to $1,406.4 million and $1,629.7 million at December 31, 1996
and 1995, respectively, as collateral for certain long-term debt.
At December 31, 1996, aggregate maturities of the long-term debt based
on required principal payments at maturity for 1997 and the succeeding
four years are $494.9 million, $316.7 million, $19.7 million, $5.4
million, $0 million, respectively, and $946.7 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>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Federal income tax expense (benefit):
Current............................... $ 97.9 $ (11.7) $ 4.0
Deferred.............................. (88.2) 132.2 96.2
----------------- ---------------- -----------------
Total................................... $ 9.7 $ 120.5 $ 100.2
================= ================ =================
</TABLE>
F-26
<PAGE>
The Federal income taxes attributable to consolidated operations are
different from the amounts determined by multiplying the earnings before
Federal income taxes and minority interest by the expected Federal
income tax rate of 35%. The sources of the difference and the tax
effects of each are as follows:
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Expected Federal income tax expense..... $ 73.0 $ 173.7 $ 154.5
Non-taxable minority interest........... (28.6) (22.0) (17.6)
Differential earnings amount............ - - (16.8)
Adjustment of tax audit reserves........ 6.9 4.1 (4.6)
Equity in unconsolidated subsidiaries... (32.3) (19.4) (12.5)
Other................................... (9.3) (15.9) (2.8)
----------------- ---------------- -----------------
Federal Income Tax Expense.............. $ 9.7 $ 120.5 $ 100.2
================= ================ =================
</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 no longer is 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.
The components of the net deferred Federal income tax account are as
follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1996 December 31, 1995
--------------------------------- ---------------------------------
ASSETS LIABILITIES Assets Liabilities
--------------- ---------------- --------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
DAC, reserves and reinsurance.......... $ - $ 166.0 $ - $ 304.4
Investments............................ - 328.6 - 326.9
Compensation and related benefits...... 259.2 - 293.0 -
Other.................................. - 1.8 - 32.3
--------------- ---------------- --------------- ---------------
Total.................................. $ 259.2 $ 496.4 $ 293.0 $ 663.6
=============== ================ =============== ===============
</TABLE>
The deferred Federal income taxes impacting operations reflect the net
tax effects of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts
used for income tax purposes. The sources of these temporary differences
and the tax effects of each are as follows:
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
DAC, reserves and reinsurance......... $ (156.2) $ 63.3 $ 12.0
Investments........................... 78.6 13.0 89.3
Compensation and related benefits..... 22.3 30.8 10.0
Other................................. (32.9) 25.1 (15.1)
----------------- ---------------- -----------------
Deferred Federal Income Tax
(Benefit) Expense................... $ (88.2) $ 132.2 $ 96.2
================= ================ =================
</TABLE>
F-27
<PAGE>
The Internal Revenue Service is in the process of examining the Holding
Company's consolidated Federal income tax returns for the years 1989
through 1991. Management believes these audits will have no material
adverse effect on the Company's 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>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Direct premiums.................................... $ 461.4 $ 474.2 $ 476.7
Reinsurance assumed................................ 177.5 171.3 180.5
Reinsurance ceded.................................. (41.3) (38.7) (31.6)
----------------- ---------------- -----------------
Premiums........................................... $ 597.6 $ 606.8 $ 625.6
================= ================ =================
Universal Life and Investment-type Product
Policy Fee Income Ceded.......................... $ 48.2 $ 44.0 $ 27.5
================= ================ =================
Policyholders' Benefits Ceded...................... $ 54.1 $ 48.9 $ 20.7
================= ================ =================
Interest Credited to Policyholders' Account
Balances Ceded................................... $ 32.3 $ 28.5 $ 25.4
================= ================ =================
</TABLE>
Effective January 1, 1994, all in force business above $5.0 million was
reinsured. During 1996, the Company's retention limit on joint
survivorship policies was increased to $15.0 million. 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 $2.4 million,
$260.6 million and $241.0 million for 1996, 1995 and 1994, respectively.
Ceded death and disability benefits totaled $21.2 million, $188.1
million and $235.5 million for 1996, 1995 and 1994, respectively.
Insurance liabilities ceded totaled $652.4 million and $724.2 million at
December 31, 1996 and 1995, 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. Equitable Life's and EREIM's benefits are based on a
cash balance formula or years of service and final average earnings, if
greater, under certain grandfathering rules in the plans. Alliance's
benefits are based on years of credited service, average final base
salary and primary social security benefits. The Company's funding
policy is to make the minimum contribution required by the Employee
Retirement Income Security Act of 1974.
Components of net periodic pension cost (credit) for the qualified and
non-qualified plans are as follows:
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 33.8 $ 30.0 $ 30.3
Interest cost on projected benefit obligations..... 120.8 122.0 111.0
Actual return on assets............................ (181.4) (309.2) 24.4
Net amortization and deferrals..................... 43.4 155.6 (142.5)
----------------- ---------------- -----------------
Net Periodic Pension Cost (Credit)................. $ 16.6 $ (1.6) $ 23.2
================= ================ =================
</TABLE>
F-28
<PAGE>
The funded status of the qualified and non-qualified pension plans is as
follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1996 1995
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Actuarial present value of obligations:
Vested.................................................. $ 1,672.2 $ 1,642.4
Non-vested.............................................. 10.1 10.9
---------------- -----------------
Accumulated Benefit Obligation............................ $ 1,682.3 $ 1,653.3
================ =================
Plan assets at fair value................................. $ 1,626.0 $ 1,503.8
Projected benefit obligation.............................. 1,765.5 1,743.0
---------------- -----------------
Projected benefit obligation in excess of plan assets..... (139.5) (239.2)
Unrecognized prior service cost........................... (17.9) (25.5)
Unrecognized net loss from past experience different
from that assumed....................................... 280.0 368.2
Unrecognized net asset at transition...................... 4.7 (7.3)
Additional minimum liability.............................. (19.3) (51.9)
---------------- -----------------
Prepaid Pension Cost...................................... $ 108.0 $ 44.3
================ =================
</TABLE>
The discount rate and rate of increase in future compensation levels
used in determining the actuarial present value of projected benefit
obligations were 7.5% and 4.25%, respectively, at December 31, 1996 and
7.25% and 4.50%, respectively, at December 31, 1995. As of January 1,
1996 and 1995, the expected long-term rate of return on assets for the
retirement plan was 10.25% and 11%, respectively.
The Company recorded, as a reduction of shareholder's equity, an
additional minimum pension liability of $12.9 million and $35.1 million,
net of Federal income taxes, at December 31, 1996 and 1995,
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.
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 $34.7 million,
$36.4 million and $38.1 million for 1996, 1995 and 1994, 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 1996, 1995 and 1994, the Company made
estimated postretirement benefits payments of $18.9 million, $31.1
million and $29.8 million, respectively.
F-29
<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>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 5.3 $ 4.0 $ 3.9
Interest cost on accumulated postretirement
benefits obligation.............................. 34.6 34.7 28.6
Net amortization and deferrals..................... 2.4 (2.3) (3.9)
----------------- ---------------- -----------------
Net Periodic Postretirement Benefits Costs......... $ 42.3 $ 36.4 $ 28.6
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1996 1995
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Accumulated postretirement benefits obligation:
Retirees................................................ $ 381.8 $ 391.8
Fully eligible active plan participants................. 50.7 50.4
Other active plan participants.......................... 60.7 64.2
---------------- -----------------
493.2 506.4
Unrecognized prior service cost........................... 50.5 56.3
Unrecognized net loss from past experience different
from that assumed and from changes in assumptions....... (150.5) (181.3)
---------------- -----------------
Accrued Postretirement Benefits Cost...................... $ 393.2 $ 381.4
================ =================
</TABLE>
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 9.5% in 1996,
gradually declining to 3.5% in the year 2009 and in 1995 was 10%,
gradually declining to 3.5% in the year 2008. The discount rate used in
determining the accumulated postretirement benefits obligation was 7.50%
and 7.25% at December 31, 1996 and 1995, respectively.
If the health care cost trend rate assumptions were increased by 1%, the
accumulated postretirement benefits obligation as of December 31, 1996
would be increased 7%. The effect of this change on the sum of the
service cost and interest cost would be an increase of 8%.
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.
The notional amount of matched interest rate swaps outstanding at
December 31, 1996 was $649.9 million. The average unexpired terms at
December 31, 1996 range from 2.2 to 2.7 years. At December 31, 1996, the
cost of terminating outstanding matched swaps in a loss position was
$8.3 million and the unrealized gain on outstanding matched swaps in a
gain position was $11.4 million. The Company has no intention of
terminating these contracts prior to maturity. During 1996, 1995 and
1994, net gains (losses) of $.2 million, $1.4 million and $(.2) million,
respectively, were recorded in connection with
F-30
<PAGE>
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, 1996 of contracts purchased and sold were $5,050.0 million
and $500.0 million, respectively. The net premium paid by Equitable Life
on these contracts was $22.5 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 to derivatives is by its
nature trading activities which are primarily for the purpose of
customer accommodations. DLJ's derivative activities consist primarily
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, 1996 and 1995.
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 universal life type contracts are measured at the
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-31
<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,
--------------------------------------------------------------------
1996 1995
--------------------------------- ---------------------------------
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.......... $ 3,133.0 $ 3,394.6 $ 3,638.3 $ 3,973.6
Other joint ventures................... 467.0 467.0 492.7 492.7
Policy loans........................... 2,196.1 2,221.6 1,976.4 2,057.5
Policyholders' account balances:
Association plans.................... 78.1 77.3 101.0 100.0
Group annuity contracts.............. 2,141.0 1,954.0 2,335.0 2,395.0
SPDA................................. 1,062.7 1,065.7 1,265.8 1,272.0
Annuities certain and SCNILC......... 654.9 736.2 646.4 716.7
Long-term debt......................... 1,592.8 1,557.7 1,899.3 1,962.9
Closed Block Financial Instruments:
-----------------------------------
Mortgage loans on real estate.......... 1,380.7 1,425.6 1,368.8 1,461.4
Other equity investments............... 105.0 105.0 151.6 151.6
Policy loans........................... 1,765.9 1,798.0 1,797.2 1,891.4
SCNILC liability....................... 30.6 34.9 34.8 39.6
GIC Segment Financial Instruments:
----------------------------------
Mortgage loans on real estate.......... 1,111.1 1,220.3 1,485.8 1,666.1
Fixed maturities....................... 42.5 42.5 107.4 107.4
Other equity investments............... 300.5 300.5 455.9 455.9
Guaranteed interest contracts.......... 290.7 300.5 329.0 352.0
Long-term debt......................... 102.1 102.2 135.1 136.0
</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
capital contributions of up to $244.9 million to affiliated real estate
joint ventures; to provide equity financing to certain limited
partnerships of $205.8 million at December 31, 1996, under existing loan
or loan commitment agreements; and to provide short-term financing loans
which at December 31, 1996 totaled $14.6 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, 1996, the Insurance Group had $51.6 million of letters
of credit outstanding.
F-32
<PAGE>
14) LITIGATION
A number of lawsuits has 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, EVLICO and The
Equitable of Colorado, Inc. ("EOC"), 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, EVLICO and EOC of the type referred to in this paragraph are the
litigations described in the following eight 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 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 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. On May 29, 1996, the New York County Supreme
Court entered a judgment dismissing the complaint with prejudice.
Plaintiffs have filed a notice of appeal of that judgment.
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. The Texas
action also claims that Equitable Life misrepresented to Texas
policyholders that the Texas Insurance Department had approved Equitable
Life's rate increases. These 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. On February 9, 1996, Equitable Life removed the Pennsylvania
action, Malvin, to the United States District Court for the Middle
District of Pennsylvania. Following the decision granting Equitable
Life's motion to dismiss the New York action (Golomb), on the consent of
the parties the District Court ordered an indefinite stay of all
proceedings in the Pennsylvania action, pending either party's right to
reinstate the proceeding, and ordered that for administrative purposes
the case be deemed administratively closed. On February 2, 1996,
Equitable Life removed the Texas action, Bowler, to the United States
District Court for the Northern District of Texas. On May 20, 1996, the
plaintiffs in Bowler amended their complaint by adding allegations of
misrepresentation regarding premium increases on other types of
guaranteed renewable major medical insurance policies issued by
Equitable Life up to and including 1983. On July 1, 1996, Equitable Life
filed a motion for summary judgment dismissing the first amended
complaint in its entirety. In August, 1996, the court granted plaintiffs
leave to file a supplemental complaint on behalf of a proposed class of
Texas policyholders claiming unfair discrimination, breach of contract
and other claims arising out of alleged differences between premiums
charged to Texas policyholders and premiums charged to similarly
situated policyholders in New York and certain other states. Plaintiffs
seek refunds of alleged overcharges, exemplary or additional damages
citing
F-33
<PAGE>
Texas statutory provisions which among other things, permit two times
the amount of actual damage plus additional penalties if the acts
complained of are found to be knowingly committed, and injunctive
relief. Equitable Life has also filed a motion for summary judgment
dismissing the supplemental complaint in its entirety. Plaintiffs also
obtained permission to add another plaintiff to the first amended and
supplemental complaints. Plaintiffs have opposed both motions for
summary judgment and requested that certain issues be found in their
favor. Equitable Life is in the process of replying.
On May 22, 1996, a separate action entitled Bachman v. The Equitable
Life Assurance Society of the United States, was filed in Florida state
court making claims similar to those in the previously reported Golomb
action. The Florida action is asserted on behalf of a proposed class of
Florida issued or renewed policyholders insured after 1983 under
Lifetime Guaranteed Renewable Major Medical Insurance Policies issued by
Equitable Life. The Florida action seeks compensatory and punitive
damages and injunctive relief restricting the methods by which Equitable
Life increases premiums in the future based on various common law
claims. On June 20, 1996, Equitable Life removed the Florida action to
Federal court. Equitable Life has answered the complaint, denying the
material allegations and asserting certain affirmative defenses. On
December 6, 1996, Equitable Life filed a motion for summary judgment and
plaintiff is expected to file its response to that motion shortly.
On November 6, 1996, a proposed class action entitled Fletcher, et al.
v. The Equitable Life Assurance Society of the United States, was filed
in California Superior Court for Fresno County, making substantially the
same allegations concerning premium rates and premium rate increases on
guaranteed renewable policies made in the Bowler action. The complaint
alleges, among other things, that differentials between rates charged
California policyholders and policyholders in New York and certain other
states, and the methods used by Equitable Life to calculate premium
increases, breached the terms of its policies, that Equitable Life
misrepresented and concealed the facts pertaining to such differentials
and methods in violation of California law, and that Equitable Life also
misrepresented that its rate increases were approved by the California
Insurance Department. Plaintiffs seek compensatory damages in an
unspecified amount, rescission, injunctive relief and attorneys' fees.
Equitable Life removed the action to Federal court; plaintiff has moved
to remand the case to state court. Although the outcome of any
litigation cannot be predicted with certainty, particularly in the early
stages of an action, the Company's management believes that the ultimate
resolution of the Golomb, Malvin, Bowler, Bachman and Fletcher
litigations should not have a material adverse effect on the financial
position of the Company. Due to the early stage of such litigations, the
Company's management cannot make an estimate of loss, if any, or predict
whether or not such litigations 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, 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. On June 28, 1996, the court issued a decision and order
dismissing with prejudice plaintiff's causes of action for fraud,
constructive fraud, breach of fiduciary duty, negligence, and unjust
enrichment, and dismissing without prejudice plaintiff's cause of action
under the New York State consumer protection statute. The only remaining
causes of action are for breach of contract and negligent
misrepresentation. Plaintiffs made a motion for reargument with respect
to this order, which was submitted to the court in October 1996. This
motion was denied by the court on December 16, 1996.
F-34
<PAGE>
On May 21, 1996, an action entitled Elton F. Duncan, III v. The
Equitable Life Assurance Society of the United States, was commenced
against Equitable Life in the Civil District Court for the Parish of
Orleans, State of Louisiana. The action is brought by an individual who
purchased a whole life policy. Plaintiff alleges misrepresentations
concerning the extent to which the policy was a proper replacement
policy and the number of years that the annual premium would need to be
paid. Plaintiff purports to represent a class consisting of all persons
who purchased whole life or universal life insurance policies from
Equitable Life from January 1, 1982 to the present. Plaintiff seeks
damages, including punitive damages, in an unspecified amount. On July
26, 1996, an action entitled Michael Bradley v. Equitable Variable Life
Insurance Company, was commenced in New York state court. The action is
brought by the holder of a variable life insurance policy issued by
EVLICO. The plaintiff purports to represent a class consisting of all
persons or entities who purchased one or more life insurance policies
issued by EVLICO from January 1, 1980. The complaint puts at issue
various alleged sales practices and alleges misrepresentations
concerning the extent to which the policy was a proper replacement
policy and the number of years that the annual premium would need to be
paid. Plaintiff seeks damages, including punitive damages, in an
unspecified amount and also seeks injunctive relief prohibiting EVLICO
from canceling policies for failure to make premium payments beyond the
alleged stated number of years that the annual premium would need to be
paid. On September 21, 1996 Equitable Life, EVLICO and EOC made a motion
to have this proceeding moved from Kings County Supreme Court to New
York County for joint trial or consolidation with the Cole action. The
motion was denied by the court on January 9, 1997. On January 10, 1997,
plaintiffs moved for certification of a nationwide class consisting of
all persons or entities who were sold one or more life insurance
products on a "vanishing premium" basis and/or were allegedly induced to
purchase additional policies from EVLICO, using the cash value
accumulated in existing policies, from January 1, 1980 through and
including December 31, 1996. Plaintiffs further moved to have Michael
Bradley designated as the class representative. Discovery regarding
class certification is underway.
On December 12, 1996, an action entitled Robert E. Dillon v. The
Equitable Life Assurance Society of the United States and The Equitable
of Colorado, was commenced in the United States District Court for the
Southern District of Florida. The action is brought by an individual who
purchased a joint whole life policy from EOC. The complaint puts at
issue various alleged sales practices and alleges misrepresentations
concerning the alleged impropriety of replacement policies issued by
Equitable Life and EOC and alleged misrepresentations regarding the
number of years premiums would have to be paid on the defendants'
policies. Plaintiff brings claims for breach of contract, fraud,
negligent misrepresentation, money had and received, unjust enrichment
and imposition of a constructive trust. Plaintiff purports to represent
two classes of persons. The first is a "contract class," consisting of
all persons who purchased whole or universal life insurance policies
from Equitable Life and EOC and from whom Equitable Life and EOC have
sought additional payments beyond the number of years allegedly promised
by Equitable Life and EOC. The second is a "fraud class," consisting of
all persons with an interest in policies issued by Equitable Life and
EOC at any time since October 1, 1986. Plaintiff seeks damages in an
unspecified amount, and also seeks injunctive relief attaching Equitable
Life's and EOC's profits from their alleged sales practices. Equitable
Life's and EOC's time to answer or move with respect to the complaint
has been extended until February 24, 1997. Although the outcome of
litigation cannot be predicted with certainty, particularly in the early
stages of an action, the Company's management believes that the ultimate
resolution of the Cole, Duncan, Bradley and Dillon litigations should
not have a material adverse effect on the financial position of the
Company. Due to the early stages of such litigations, the Company's
management cannot make an estimate of loss, if any, or predict whether
or not any such litigation will have a material adverse effect on the
Company's results of operations in any particular period.
On January 3, 1996, an amended complaint was filed in an action entitled
Frank Franze Jr. and George Busher, individually and on behalf of all
others similarly situated v. The Equitable Life Assurance Society of the
United States, and Equitable Variable Life Insurance Company, No.
94-2036 in the United States District Court for the Southern District of
Florida. The action was brought by two individuals who purchased
variable life insurance policies. The plaintiffs purport to represent a
nationwide class consisting of all persons who purchased variable life
insurance policies from Equitable Life and EVLICO since September 30,
1991. The basic allegation of the amended complaint is that Equitable
Life's and EVLICO's agents were trained not to
F-35
<PAGE>
disclose fully that the product being sold was life insurance.
Plaintiffs allege violations of the Federal securities laws and seek
rescission of the contracts or compensatory damages and attorneys' fees
and expenses. The court denied Equitable Life and EVLICO's motion to
dismiss the amended complaint on September 24, 1996. Equitable Life and
EVLICO have answered the amended complaint, denying the material
allegations and asserting certain affirmative defenses. Currently, the
parties are conducting discovery in connection with plaintiffs' attempt
to certify a class. On January 9, 1997, an action entitled Rosemarie
Chaviano, individually and on behalf of all others similarly situated v.
The Equitable Life Assurance Society of the United States, and Equitable
Variable Life Insurance Company, was filed in Massachusetts state court
making claims similar to those in the Franze action and alleging
violations of the Massachusetts securities laws. The plaintiff purports
to represent all persons in Massachusetts who purchased variable life
insurance contracts from Equitable Life and EVLICO from January 9, 1993
to the present. The Massachusetts action seeks rescission of the
contracts or compensatory damages, attorneys' fees, expenses and
injunctive relief. Although the outcome of any litigation cannot be
predicted with certainty, particularly in the early stages of an action,
the Company's management believes that the ultimate resolution of the
litigations discussed in this paragraph should not have a material
adverse effect on the financial position of the Company. Due to the
early stages of such litigation, the Company's management cannot make an
estimate of loss, if any, or predict whether or not any such litigation
will have a material adverse effect on the Company's results of
operations in any particular period.
Equitable Life recently responded to a subpoena from the U.S. Department
of Labor ("DOL") requesting copies of any third-party appraisals in
Equitable Life's possession relating to the ten largest properties (by
value) in the Prime Property Fund ("PPF"). PPF is an open-end,
commingled real estate separate account of Equitable Life for pension
clients. Equitable Life serves as investment manager in PPF and has
retained EREIM as advisor. In early 1995, the DOL commenced a national
investigation of commingled real estate funds with pension investors,
including PPF. The investigation now appears to be focused principally
on appraisal and valuation procedures in respect of fund properties. The
most recent request from the DOL seems to reflect, at least in part, an
interest in the relationship between the valuations for those properties
reflected in appraisals prepared for local property tax proceedings and
the valuations used by PPF for other purposes. At no time has the DOL
made any specific allegation that Equitable Life or EREIM has acted
improperly and Equitable Life and EREIM believe that any such allegation
would be without foundation. While the outcome of this investigation
cannot be predicted with certainty, in the opinion of management, the
ultimate resolution of this matter should not have a material adverse
effect on the Company's consolidated financial position or results of
operations in any particular period.
Equitable Casualty Insurance Company ("Casualty"), an indirect wholly
owned subsidiary of Equitable Life, is party to an arbitration
proceeding that commenced in August 1995. The proceeding relates to a
dispute among Casualty, Houston General Insurance Company ("Houston
General") and GEICO General Insurance Company ("GEICO General")
regarding the interpretation of a reinsurance agreement. The arbitration
panel issued a final award in favor of Casualty and GEICO General on
June 17, 1996. Casualty and GEICO General moved in the pending Texas
state court action, with Houston General's consent, for an order
confirming the arbitration award and entering judgment dismissing the
action. The motion was granted on January 29, 1997. The parties have
also stipulated to the dismissal without prejudice of a related Texas
Federal court action brought by Houston General against GEICO General
and Equitable Life. In connection with confirmation of the arbitration
award, Houston General paid to Casualty approximately $839,600 in
settlement of certain reimbursement claims by Casualty against Houston
General.
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. 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
F-36
<PAGE>
were not permitted by the Fund's 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, 1996, the United States
District Court for the Southern District of New York granted the
defendants' motion to dismiss all counts of the complaint. On October
11, 1996, plaintiffs filed a motion for reconsideration of the court's
decision granting defendants' motion to dismiss the Complaint. On
November 25, 1996, the court denied plaintiffs' motion for
reconsideration. On October 29, 1996, plaintiffs filed a motion for
leave to file an amended complaint. The principal allegations of the
proposed amended complaint are that the Fund did not properly disclose
that it planned to invest in mortgage-backed derivative securities and
that two advertisements used by the Fund misrepresented the risks of
investing in the Fund. Plaintiffs also reiterated allegations in the
Complaint that the Fund failed to hedge against the risks of investing
in foreign securities despite representations that it would do so.
Alliance believes that the allegations in the Complaint are without
merit and intends to vigorously defend against these claims. While the
ultimate outcome of this matter cannot be determined at this time,
management of Alliance does not expect that it will have a material
adverse effect on Alliance's results of operations or financial
condition.
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") 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 issued
by Rickel in October 1994. The complaint alleges violations of Federal
securities laws and common law fraud against DLJSC, as the underwriter
of 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, if any, or predict whether or not such litigation
will have a material adverse effect on DLJ's results of operations in
any particular period.
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 Court action, which
F-37
<PAGE>
had been removed to the Bankruptcy Court, has been remanded back to the
state court, which remand is being opposed by DLJSC. 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, if any, 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, if any, 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 1997 and the succeeding four years are $113.7 million, $110.6
million, $100.3 million, $72.3 million, $59.3 million and $427.3 million
thereafter. Minimum future sublease rental income on these noncancelable
leases for 1997 and the succeeding four years are $9.8 million, $6.0
million, $4.5 million, $2.4 million, $.8 million and $.1 million
thereafter.
At December 31, 1996, the minimum future rental income on noncancelable
operating leases for wholly owned investments in real estate for 1997
and the succeeding four years are $263.0 million, $242.1 million, $219.8
million, $194.3 million, $174.6 million and $847.1 million thereafter.
F-38
<PAGE>
16) OTHER OPERATING COSTS AND EXPENSES
Other operating costs and expenses consisted of the following:
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Compensation costs................................. $ 647.3 $ 595.9 $ 687.5
Commissions........................................ 329.5 314.3 313.0
Short-term debt interest expense................... 8.0 11.4 19.0
Long-term debt interest expense.................... 137.3 108.1 98.3
Amortization of policy acquisition costs........... 405.2 317.8 313.4
Capitalization of policy acquisition costs......... (391.9) (391.0) (410.9)
Rent expense, net of sub-lease income.............. 113.7 109.3 116.0
Other.............................................. 798.9 710.0 721.4
----------------- ---------------- -----------------
Total.............................................. $ 2,048.0 $ 1,775.8 $ 1,857.7
================= ================ =================
</TABLE>
During 1996, 1995 and 1994, the Company restructured certain operations
in connection with cost reduction programs and recorded pre-tax
provisions of $24.4 million, $32.0 million and $20.4 million,
respectively. The amounts paid during 1996, associated with cost
reduction programs, totaled $17.7 million. At December 31, 1996, the
liabilities associated with cost reduction programs amounted to $44.5
million. The 1996 cost reduction program included restructuring costs
related to the consolidation of insurance operations' service centers.
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. Amortization of DAC included $145.0 million writeoff
of DAC related to DI contracts in the fourth quarter of 1996.
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
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 1996, 1995 and 1994, statutory net
(loss) earnings totaled $(351.1) million, $(352.4) million and $67.5
million, respectively. No amounts are expected to be available for
dividends from Equitable Life to the Holding Company in 1997.
At December 31, 1996, the Insurance Group, in accordance with various
government and state regulations, had $21.9 million of securities
deposited with such government or state agencies.
F-39
<PAGE>
Accounting practices used to prepare statutory financial statements for
regulatory filings of stock life insurance companies differ in certain
instances from GAAP. The New York Insurance Department (the
"Department") recognizes only statutory accounting practices for
determining and reporting the financial condition and results of
operations of an insurance company, for determining its solvency under
the New York Insurance Law, and for determining whether its financial
condition warrants the payment of a dividend to its stockholders. No
consideration is given by the Department to financial statements
prepared in accordance with GAAP in making such determinations. 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 Department with
net earnings and equity on a GAAP basis.
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Net change in statutory surplus and capital stock.. $ 56.0 $ 78.1 $ 292.4
Change in asset valuation reserves................. (48.4) 365.7 (285.2)
----------------- ---------------- -----------------
Net change in statutory surplus, capital stock
and asset valuation reserves..................... 7.6 443.8 7.2
Adjustments:
Future policy benefits and policyholders'
account balances............................... (298.5) (66.0) (5.3)
DAC.............................................. (13.3) 73.2 97.5
Deferred Federal income taxes.................... 108.0 (158.1) (58.7)
Valuation of investments......................... 289.8 189.1 45.2
Valuation of investment subsidiary............... (117.7) (188.6) 396.6
Limited risk reinsurance......................... 92.5 416.9 74.9
Contribution from the Holding Company............ - - (300.0)
Issuance of surplus notes........................ - (538.9) -
Postretirement benefits.......................... 28.9 (26.7) 17.1
Other, net....................................... 12.4 115.1 (44.0)
GAAP adjustments of Closed Block................. (9.8) 15.7 (9.5)
GAAP adjustments of discontinued GIC
Segment........................................ (89.6) 37.3 42.8
----------------- ---------------- -----------------
Net Earnings of the Insurance Group................ $ 10.3 $ 312.8 $ 263.8
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------------------------
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Statutory surplus and capital stock................ $ 2,258.9 $ 2,202.9 $ 2,124.8
Asset valuation reserves........................... 1,297.5 1,345.9 980.2
----------------- ---------------- -----------------
Statutory surplus, capital stock and asset
valuation reserves............................... 3,556.4 3,548.8 3,105.0
Adjustments:
Future policy benefits and policyholders'
account balances............................... (1,305.0) (1,006.5) (940.5)
DAC.............................................. 3,104.9 3,075.8 3,219.4
Deferred Federal income taxes.................... (306.1) (452.0) (29.4)
Valuation of investments......................... 286.8 417.7 (794.1)
Valuation of investment subsidiary............... (782.8) (665.1) (476.5)
Limited risk reinsurance......................... (336.5) (429.0) (845.9)
Issuance of surplus notes........................ (539.0) (538.9) -
Postretirement benefits.......................... (314.4) (343.3) (316.6)
Other, net....................................... 126.3 4.4 (79.2)
GAAP adjustments of Closed Block................. 783.7 830.8 740.4
GAAP adjustments of discontinued GIC
Segment........................................ (190.3) (184.6) (221.9)
----------------- ---------------- -----------------
Equity of the Insurance Group...................... $ 4,084.0 $ 4,258.1 $ 3,360.7
================= ================ =================
</TABLE>
F-40
<PAGE>
18) BUSINESS SEGMENT INFORMATION
The Company has two major business segments: Insurance Operations and
Investment Services. Interest expense related to debt not specific to
either business segment is presented as Corporate interest expense.
Information for all periods is presented on a comparable basis.
The Insurance Operations segment offers a variety of traditional,
variable and interest-sensitive life insurance products, disability
income, annuity products, mutual fund and other investment products to
individuals and small groups and administers traditional participating
group annuity contracts with conversion features, generally for
corporate qualified pension plans, and association plans which provide
full service retirement programs for individuals affiliated with
professional and trade associations. This segment includes Separate
Accounts for individual insurance and annuity products.
The Investment Services segment provides investment fund management,
primarily to institutional clients. This segment includes the Company's
equity interest in DLJ and Separate Accounts which provide various
investment options for group clients through pooled or single group
accounts.
Intersegment investment advisory and other fees of approximately $127.5
million, $124.1 million and $135.3 million for 1996, 1995 and 1994,
respectively, are included in total revenues of the Investment Services
segment. These fees, excluding amounts related to the discontinued GIC
Segment of $15.7 million, $14.7 million and $27.4 million for 1996, 1995
and 1994, respectively, are eliminated in consolidation.
<TABLE>
<CAPTION>
1996 1995 1994
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Revenues
Insurance operations............................... $ 3,742.9 $ 3,614.6 $ 3,507.4
Investment services................................ 1,126.1 949.1 935.2
Consolidation/elimination.......................... (24.5) (34.9) (27.2)
----------------- ---------------- -----------------
Total.............................................. $ 4,844.5 $ 4,528.8 $ 4,415.4
================= ================ =================
Earnings (loss) from continuing operations
before Federal income taxes, minority interest
and cumulative effect of accounting change
Insurance operations............................... $ (36.6) $ 303.1 $ 327.5
Investment services................................ 311.9 224.0 227.9
Consolidation/elimination.......................... .2 (3.1) .3
----------------- ---------------- -----------------
Subtotal..................................... 275.5 524.0 555.7
Corporate interest expense......................... (66.9) (27.9) (114.2)
----------------- ---------------- -----------------
Total.............................................. $ 208.6 $ 496.1 $ 441.5
================= ================ =================
</TABLE>
DECEMBER 31,
------------------------------------
1996 1995
---------------- -----------------
(IN MILLIONS)
Assets
Insurance operations........... $ 60,464.9 $ 56,720.5
Investment services............ 13,542.5 12,842.9
Consolidation/elimination...... (399.6) (354.4)
---------------- -----------------
Total.......................... $ 73,607.8 $ 69,209.0
================ =================
F-41
<PAGE>
19) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The quarterly results of operations for 1996 and 1995, are summarized
below:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------------------------------------------------------------------
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
----------------- ----------------- ------------------ ------------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
1996
----
Total Revenues................ $ 1,169.7 $ 1,193.6 $ 1,193.6 $ 1,287.6
================= ================= ================== ==================
Earnings (Loss) from
Continuing Operations
before Cumulative Effect
of Accounting Change........ $ 94.8 $ 87.1 $ 93.2 $ (157.9)
================= ================= ================== ==================
Net Earnings (Loss)........... $ 71.7 $ 87.1 $ 93.2 $ (241.7)
================= ================= ================== ==================
1995
----
Total Revenues................ $ 1,079.1 $ 1,164.0 $ 1,138.8 $ 1,146.9
================= ================= ================== ==================
Net Earnings.................. $ 66.3 $ 101.7 $ 100.2 $ 44.6
================= ================= ================== ==================
</TABLE>
The quarterly results of operations for 1996 and 1995 have been restated
to reflect the Company's accounting change adopted in the fourth quarter
of 1996 for long-duration participating life contracts in accordance
with the provisions prescribed by SFAS No. 120. Net earnings for the
three months ended December 31, 1996 includes a charge of $339.3 million
related to writeoffs of DAC on DI contracts of $94.3 million, reserve
strengthening on DI business of $113.7 million, pension par of $47.5
million and the discontinued GIC Segment of $83.8 million.
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. 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 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.
F-42
<PAGE>
Summarized balance sheets information for DLJ, reconciled to the
Company's carrying value of DLJ, are as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------
1996 1995
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Assets:
Trading account securities, at market value............................ $ 15,728.1 $ 10,821.3
Securities purchased under resale agreements........................... 20,598.7 18,748.2
Broker-dealer related receivables...................................... 16,525.9 13,023.7
Other assets........................................................... 2,651.0 1,983.3
---------------- -----------------
Total Assets........................................................... $ 55,503.7 $ 44,576.5
================ =================
Liabilities:
Securities sold under repurchase agreements............................ $ 29,378.3 $ 26,744.8
Broker-dealer related payables......................................... 19,409.7 12,915.5
Short-term and long-term debt.......................................... 2,704.5 1,742.0
Other liabilities...................................................... 2,164.0 1,750.5
---------------- -----------------
Total liabilities...................................................... 53,656.5 43,152.8
Cumulative exchangeable preferred stock................................ - 225.0
DLJ's company-obligated mandatorily redeemed preferred
securities of subsidiary trust holding solely debentures of DLJ...... 200.0 -
Total shareholders' equity............................................. 1,647.2 1,198.7
---------------- -----------------
Total Liabilities, Cumulative Exchangeable Preferred Stock and
Shareholders' Equity................................................. $ 55,503.7 $ 44,576.5
================ =================
DLJ's equity as reported............................................... $ 1,647.2 $ 1,198.7
Unamortized cost in excess of net assets acquired in 1985
and other adjustments................................................ 23.9 40.5
The Holding Company's equity ownership in DLJ.......................... (590.2) (499.0)
Minority interest in DLJ............................................... (588.6) (324.3)
---------------- -----------------
The Company's Carrying Value of DLJ.................................... $ 492.3 $ 415.9
================ =================
</TABLE>
Summarized statements of earnings information for DLJ reconciled to the
Company's equity in earnings of DLJ is as follows:
<TABLE>
<CAPTION>
1996 1995
---------------- -----------------
(IN MILLIONS)
<S> <C> <C>
Commission, fees and other income...................................... $ 1,818.2 $ 1,325.9
Net investment income.................................................. 1,074.2 904.1
Dealer, trading and investment gains, net.............................. 598.4 528.6
---------------- -----------------
Total revenues......................................................... 3,490.8 2,758.6
Total expenses including income taxes.................................. 3,199.5 2,579.5
---------------- -----------------
Net earnings........................................................... 291.3 179.1
Dividends on preferred stock........................................... 18.7 19.9
---------------- -----------------
Earnings Applicable to Common Shares................................... $ 272.6 $ 159.2
================ =================
DLJ's earnings applicable to common shares as reported................. $ 272.6 $ 159.2
Amortization of cost in excess of net assets acquired in 1985.......... (3.1) (3.9)
The Holding Company's equity in DLJ's earnings......................... (107.8) (90.4)
Minority interest in DLJ............................................... (73.4) (6.5)
---------------- -----------------
The Company's Equity in DLJ's Earnings................................. $ 88.3 $ 58.4
================ =================
</TABLE>
F-43
<PAGE>
21) ACCOUNTING FOR STOCK-BASED COMPENSATION
The Holding Company sponsors a stock option plan for employees of
Equitable Life. DLJ and Alliance each sponsor their own stock option
plans for certain employees. The Company elected to continue to account
for stock-based compensation using the intrinsic value method prescribed
in APB Opinion No. 25. Had compensation expense of the Company's stock
option incentive plans for options granted after December 31, 1994 been
determined based on the estimated fair value at the grant dates for
awards under those plans, the Company's pro forma net earnings for 1996
and 1995 would have been as follows:
1996 1995
--------------- ---------------
(IN MILLIONS)
Net Earnings
As Reported......... $ 10.3 $ 312.8
Pro Forma........... $ 3.2 $ 311.3
The fair value of options and units granted after December 31, 1994,
used as a basis for the above pro forma disclosures, was estimated as of
the date of grants using Black-Scholes option pricing models. The option
and unit pricing assumptions for 1996 and 1995 are as follows:
<TABLE>
<CAPTION>
HOLDING COMPANY DLJ ALLIANCE
------------------------- -------------------------- -----------------------------
1996 1995 1996 1995 1996 1995
----------- ----------- ----------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Dividend yield........... 0.80% 0.96% 1.54% 1.85% 8.0% 8.0%
Expected volatility...... 20.00% 20.00% 25.00% 25.00% 23.00% 23.00%
Risk-free interest rate.. 5.92% 6.83% 6.07% 5.86% 5.80% 6.00%
Expected Life............ 5 YEARS 5 years 5 YEARS 5 years 7.43 YEARS 7.43 years
Weighted fair value
per option granted..... $6.94 $5.90 $9.35 - $2.69 $2.24
</TABLE>
F-44
<PAGE>
A summary of the Holding Company and DLJ stock option plans and
Alliance's Unit option plans are as follows:
<TABLE>
<CAPTION>
HOLDING COMPANY DLJ ALLIANCE
----------------------------- ----------------------------- -----------------------------
Options Options Options
Outstanding Outstanding Outstanding
Weighted Weighted Weighted
Average Average Average
Shares Exercise Shares Exercise Units Exercise
(In Millions) Price (In Millions) Price (In Millions) Price
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Balance as of
January 1, 1994........ 6.1 - 3.2
Granted................ .7 - 1.2
Exercised.............. - - (.5)
Forfeited.............. - - (.1)
------------- ------------- -------------
Balance as of
December 31, 1994...... 6.8 - 3.8
Granted................ .4 9.2 1.8
Exercised.............. (.1) - (.5)
Expired................ (.1) - -
Forfeited.............. (.3) - (.3)
------------- ------------- -------------
Balance as of
December 31, 1995...... 6.7 $20.27 9.2 $27.00 4.8 $17.72
Granted................ .7 $24.94 2.1 $32.54 .7 $25.12
Exercised.............. (.1) $19.91 - - (.4) $13.64
Expired................ (.6) $20.21 - - - -
Forfeited.............. - - (.2) $27.00 (.1) $19.32
------------- ------------- -------------
Balance as of
December 31, 1996...... 6.7 $20.79 11.1 $28.06 5.0 $19.07
============= ============= ============= ============= ============= =============
</TABLE>
F-45
<PAGE>
Information with respect to stock and unit options outstanding and
exercisable at December 31, 1996 is as follows:
<TABLE>
<CAPTION>
Options Outstanding Options Exercisable
------------------------------------------------------------------------------- --------------------------------------
Weighted
Average Weighted Weighted
Range of Number Remaining Average Number Average
Exercise Outstanding Contractual Exercise Exercisable Exercise
Prices (In Millions) Life (Years) Price (In Millions) Price
--------------------- ----------------- --------------- ----------------- ------------------- ----------------
<S> <C> <C> <C> <C> <C>
Holding
Company
---------------------
$18.125-$27.75 6.7 7.00 $20.79 3.4 $20.18
================= =============== ================= =================== ================
DLJ
---------------------
$27.00-$33.50 11.1 9.00 $28.06 - -
================= =============== ================= =================== ================
Alliance
---------------------
$ 6.0625-$15.9375 1.3 4.76 $12.97 1.2 $12.58
$16.3125-$19.75 1.1 8.19 $19.13 .2 $18.69
$19.875 -$19.875 1.0 7.36 $19.88 .4 $19.88
$20.75 -$24.375 .9 8.46 $22.05 .3 $21.84
$24.375 -$25.125 .7 9.96 $25.13 - -
----------------- -------------------
$ 6.0625-$25.125 5.0 7.43 $19.07 2.1 $15.84
================= =============== ================= =================== ================
</TABLE>
F-46
<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, 1996;
- Statements of Operations for the Year Ended
December 31, 1996;
- Statements of Changes in Net Assets for the Years Ended
December 31, 1996 and 1995;
- 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, 1996
and 1995;
- Consolidated Statements of Earnings for Years Ended
December 31, 1996, 1995 and 1994;
- Consolidated Statements of Equity for Years Ended
December 31, 1996, 1995 and 1994;
- Consolidated Statements of Cash Flows for Years Ended
December 31, 1996, 1995 and 1994; 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, previously filed with this
Registration Statement No. 33-47949 on
April 26, 1996.
(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,
previously filed with this Registration Statement
No. 33-47949 on April 26, 1996.
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, previously filed with this
Registration Statement No. 33-47949 on
April 26, 1996.
(b) By-Laws of Equitable, as amended through July 22,
1992, previously filed with this Registration
Statement No. 33-47949 on April 26, 1996.
(c) Copy of the Certificate of Amendment to the
Restated Charter of Equitable, adopted November
18, 1993, previously filed with this Registration
Statement No. 33-47949 on April 26, 1996.
(d) By-Laws of Equitable, as amended November 21, 1996.
(e) Copy of the Restated Charter of Equitable, as
amended January 1, 1997.
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.
C-2
<PAGE>
12. Not applicable.
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 1290
Avenue of the Americas, New York, New York 10104. The business
address of the persons whose names are preceded by an asterisk
is that of Equitable.
POSITIONS AND
NAME AND PRINCIPAL OFFICES WITH
BUSINESS ADDRESS EQUITABLE
- ---------------- ---------
DIRECTORS
Claude Bebear Director
AXA-UAP
23, Avenue Matignon
75008 Paris, France
Christopher J. Brocksom Director
AXA Equity & Law
Elbury 9
Weedon Lane
Buckinghamshire HP 6505
England
Francoise Colloc'h Director
AXA-UAP
23, Avenue Matignon
75008 Paris, France
Henri de Castries Director
AXA-UAP
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
Jean-Rene Fourtou Director
Rhone-Poulenc S.A.
25 Quai Paul Doumer
92408 Courbevoie Cedex,
France
C-4
<PAGE>
POSITIONS AND
NAME AND PRINCIPAL OFFICES WITH
BUSINESS ADDRESS EQUITABLE
- ---------------- ---------
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
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 10028
Mary R. (Nina) Henderson Director
CPC International, Inc.
International Plaza
P.O. Box 8000
Englewood Cliffs, NJ 07632-9976
W. Edwin Jarmain Director
Jarmain Group Inc.
121 King Street West
Suite 2525
Toronto, Ontario M5H 3T9,
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
Arthur L. Liman Director
Paul, Weiss, Rifkind, Wharton &
Garrison
1285 Avenue of the Americas
New York, NY 10019
C-5
<PAGE>
POSITIONS AND
NAME AND PRINCIPAL OFFICES WITH
BUSINESS ADDRESS EQUITABLE
- ---------------- ---------
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 Clement
92646 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 and Director (until 5/1/97)
*William T. McCaffrey Senior Executive Vice President,
Chief Operating Officer and Director
*Joseph J. Melone Chairman of the Board, Chief
Executive Officer and Director;
President (effective 5/1/97)
OTHER OFFICERS
- --------------
*A. Frank Beaz Senior Vice President
*Leon Billis Senior Vice President
*Harvey Blitz Senior Vice President and Deputy
Chief Financial Officer
*Kevin R. Byrne Vice President and Treasurer
*Jerry M. de St. Paer Executive Vice President
*Gordon G. Dinsmore Senior Vice President
*Alvin H. Fenichel Senior Vice President and
Controller
C-6
<PAGE>
POSITIONS AND
NAME AND PRINCIPAL OFFICES WITH
BUSINESS ADDRESS EQUITABLE
- ---------------- ---------
*Paul J. Flora Senior Vice President and Auditor
*Robert E. Garber Executive Vice President and General
Counsel
*Donald R. Kaplan Vice President and Chief Compliance
Officer and Associate General Counsel
*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
*Samuel B. Shlesinger Senior Vice President
*Richard V. Silver Senior Vice President and Deputy
General Counsel
*Jose Suquet Executive Vice President and Chief
Agency Officer
*Stanley B. Tulin Senior Executive Vice President
and Chief Financial 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-UAP. As of
January 1, 1997, AXA-UAP beneficially owned approximately 63.8% of the
outstanding common stock of the Holding Company (assuming conversion of the
convertible preferred stock held by AXA-UAP). Under its investment arrangements
with Equitable Life and the Holding Company, AXA-UAP is able to exercise
significant influence over the operations and capital structure of the Holding
Company and its subsidiaries, including Equitable Life. AXA-UAP, 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 (l991) (Delaware)
Donaldson, Lufkin & Jenrette, Inc. (1993) (Delaware) (44.1%)
(See Addendum B(1) for subsidiaries)
The Equitable Life Assurance Society of the United States (1859)
(New York) (a)(b)
The Equitable of Colorado, Inc. (l983) (Colorado)
EVLICO, INC. (1995) (Delaware)
EVLICO East Ridge, Inc. (1995) (California)
GP/EQ Southwest, Inc. (1995) (Texas) (5.885%)
Franconom, Inc. (1985) (Pennsylvania)
Frontier Trust Company (1987) (North Dakota)
Gateway Center Buildings, Garage, and Apartment Hotel, Inc.
(inactive) (pre-l970) (Pennsylvania)
Equitable Deal Flow Fund, L.P.
Equitable Managed Assets (Delaware)
EREIM LP Associates (99%)
EML Associates, L.P. (19.8%)
Alliance Capital Management L.P. (2.71% limited partnership
interest)
ACMC, Inc. (1991) (Delaware)(s)
Alliance Capital Management L.P. (1988) (Delaware)
(49.09% limited partnership interest)
EVCO, Inc. (1991) (New Jersey)
EVSA, Inc. (1992) (Pennsylvania)
Prime Property Funding, Inc. (1993) (Delaware)
Wil Gro, Inc. (1992) (Pennsylvania)
Equitable Underwriting and Sales Agency (Bahamas) Limited
(1993) (Bahamas)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-9
<PAGE>
The Equitable Companies Incorporated (cont.)
- ------------------------------------
Donaldson, Lufkin & Jenrette, Inc.
----------------------------------
The Equitable Life Assurance Society of the United States (cont.)
---------------------------------------------------------
Fox Run Inc. (1994) (Massachusetts)
STCS, Inc. (1992) (Delaware)
CCMI Corporation (1994) (Maryland)
FTM Corporation (1994) (Maryland)
HVM Corporation (1994) (Maryland)
Equitable BJVS, Inc. (1992) (California)
Equitable Rowes Wharf, Inc. (1995) (Massachusetts)
GP/EQ Southwest, Inc. (1995) (Texas) (94.132%)
Camelback JVS, Inc. (1995) (Arizona)
ELAS Realty, Inc. (1996) (Delaware)
Equitable Realty Assets Corporation (1983) (Delaware)
100 Federal Street Realty Corporation (Massachusetts)
Equitable Structured Settlement Corporation (1996)(Delaware)
Equitable Holding Corporation (1985) (Delaware)
EQ Financial Consultants, Inc. (formerly Equico Securities,
Inc.) (l97l) (Delaware) (a) (b)
ELAS Securities Acquisition Corp. (l980) (Delaware)
100 Federal Street Funding Corporation (Massachusetts)
EquiSource of New York, Inc. (1986) (New York) (See
Addendum A for subsidiaries)
Equitable Casualty Insurance Company (l986) (Vermont)
EREIM LP Corp. (1986) (Delaware)
EREIM LP Associates (1%)
EML Associates (.02%)
Six-Pac G.P., Inc. (1990) (Georgia)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-10
<PAGE>
The Equitable Companies Incorporated (cont.)
- ------------------------------------
Donaldson, Lufkin & Jenrette, Inc.
----------------------------------
The Equitable Life Assurance Society of the United States (cont.)
---------------------------------------------------------
Equitable Holding Corporation (cont.)
-----------------------------
Equitable Distributors, Inc. (1988) (Delaware) (a)
Equitable JVS, Inc. (1988) (Delaware)
Astor/Broadway Acquisition Corp. (1990) (New York)
Astor Times Square Corp. (1990) (New York)
PC Landmark, Inc. (1990) (Texas)
Equitable JVS II, Inc. (1994) (Maryland)
EJSVS, Inc. (1995) (New Jersey)
Donaldson, Lufkin & Jenrette, Inc. (1985 by EIC; 1993 by EQ
and EHC) (Delaware) (36.1%) (See Addendum B(1) for
subsidiaries)
JMR Realty Services, Inc. (1994) (Delaware)
Equitable Investment Corporation (l97l) (New York)
Stelas North Carolina Limited Partnership (50% limited
partnership interest) (l984)
Equitable JV Holding Corporation (1989) (Delaware)
Alliance Capital Management Corporation (l991) (Delaware) (b)
(See Addendum B(2) for subsidiaries)
Equitable Capital Management Corporation (l985) (Delaware) (b)
Alliance Capital Management L.P. (1988) (Delaware)
(14.67% limited partnership interest)
EQ Services, Inc. (1992) (Delaware)
Equitable Agri-Business, Inc. (1984) Delaware
Equitable Real Estate Investment Management, Inc. (l984)
(Delaware) (b) (See Addendum B(3) for subsidiaries)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-11
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM A - 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 manufactured by
Equitable:
EquiSource of Alabama, Inc. (1986) (Alabama)
EquiSource of Arizona, Inc. (1986) (Arizona)
EquiSource of Arkansas, Inc. (1987) (Arkansas)
EquiSource Insurance Agency of California, Inc. (1987) (California)
EquiSource of Colorado, Inc. (1986) (Colorado)
EquiSource of Delaware, Inc. (1986) (Delaware)
EquiSource of Hawaii, Inc. (1987) (Hawaii)
EquiSource of Maine, Inc. (1987) (Maine)
EquiSource Insurance Agency of Massachusetts, Inc. (1988) (Massachusetts)
EquiSource of Montana, Inc. (1986) (Montana)
EquiSource of Nevada, Inc. (1986) (Nevada)
EquiSource of New Mexico, Inc. (1987) (New Mexico)
EquiSource of Pennsylvania, Inc. (1986) (Pennsylvania)
EquiSource Insurance Agency of Utah, Inc. (1986) (Utah)
EquiSource of Washington, Inc. (1987) (Washington)
EquiSource of Wyoming, Inc. (1986) (Wyoming)
C-12
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM B - INVESTMENT SUBSIDIARIES
HAVING MORE THAN FIVE SUBSIDIARIES
---------------------------------------------
Donaldson, Lufkin & Jenrette, Inc. has the following subsidiaries, and
approximately 150 other subsidiaries, most of which are special purpose
subsidiaries (the number fluctuates according to business needs):
Donaldson, Lufkin & Jenrette, Securities Corporation (1985)
(Delaware) (a) (b)
Wood, Struthers & Winthrop Management Corp. (1985)
(Delaware) (b)
Autranet, Inc. (1985) (Delaware) (a)
DLJ Real Estate, Inc.
DLJ Capital Corporation (b)
DLJ Mortgage Capital, Inc. (1988) (Delaware)
Column Financial, Inc. (1993) (Delaware) (50%)
Alliance Capital Management Corporation (as general partner) (b) has the
following subsidiaries:
Alliance Capital Management L.P. (1988) (Delaware) (b)
Alliance Capital Management Corporation of
Delaware, Inc. (Delaware)
Alliance Fund Services, Inc. (Delaware) (a)
Alliance Fund Distributors, Inc. (Delaware) (a)
Alliance Capital Oceanic Corp. (Delaware)
Alliance Capital Management Australia Pty. Ltd.
(Australia)
Meiji - Alliance Capital Corp. (Delaware) (50%)
Alliance Capital (Luxembourg) S.A. (99.98%)
Alliance Eastern Europe Inc. (Delaware)
Alliance Barra Research Institute, Inc. (Delaware)
(50%)
Alliance Capital Management Canada, Inc.
(Canada) (99.99%)
Alliance Capital Management (Brazil) Llda
Alliance Capital Global Derivatives Corp.
(Delaware)
Alliance International Fund Services S.A.
(Luxembourg)
Alliance Capital Management (India) Ltd.
(Delaware)
Alliance Capital Mauritius Ltd.
Alliance Corporate Finance Group, Incorporated
(Delaware)
Equitable Capital Diversified Holdings, L.P. I
Equitable Capital Diversified Holdings, L.P.
II
Cursitor Alliance L.L.C. (Delaware)
Cursitor Holdings Limited (UK)
Alliance Capital Management (Japan), Inc.
Alliance Capital Management (Asia) Ltd.
Alliance Capital Management (Turkey), Ltd.
Cursitor Alliance Management Limited (UK)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-13
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM B - (CONT.)
INVESTMENT SUBSIDIARIES
HAVING MORE THAN FIVE SUBSIDIARIES
---------------------------------------------
Equitable Real Estate Investment Management, Inc. (b) has the following
subsidiaries:
Equitable Realty Portfolio Management, Inc. (1984)
(Delaware)
EQK Partners (100% general partnership interest)
Compass Management and Leasing Co. (formerly EREIM, Inc.)
(1984) (Colorado)
Equitable Real Estate Capital Markets, Inc. (1987)
(Delaware) (a)
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)
CJVS, Inc. (1994) (California)
Compass Cayman (1996) (Cayman Islands)
Compass Management and Leasing (UK) Limited
Column Financial, Inc. (1993) (Delaware) (50%)
Buckhead Strategic Corp. (1994) (Delaware)
Buckhead Strategic Fund, L.P.
BH Strategic Co. I, L.P.
BH Strategic Co. II, L.P.
BH Strategic Co. III, L.P.
BH Strategic Co. IV, L.P.
Community Funding, Inc. (1994) (Delaware)
Community Mortgage Fund, L.P. (1994) (Delaware)
Buckhead Strategic Corp., II (1995) (Delaware)
Buckhead Strategic Fund L.P. II
Buckhead Co. I, L.P.
Buckhead Co. II, L.P.
Buckhead Co. III, L.P.
HYDOC, L.L.C.
Headwind Holding Corp.
Buckhead Co. IV, L.P.
Tricon Corp.
Tricon, L.P.
Equitable Real Estate Hyperion Capital Advisors LLC (1995)
(Delaware)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-14
<PAGE>
AXA GROUP CHART
The information listed below is dated as of December 31, 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 99%
Axa Assurances Vie France 100% by Axa and Axa Courtage Vie
Axa Courtage Iard France 99.9% by Axa and Axa Assurances
Iard
Axa Courtage Vie France 99.4% by Axa and Axa Assurances
Iard and Axa Courtage 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 100% by Axa and Axa Courtage Vie
Defense Civile France 95%
Societe Francaise d'Assistance France 100% by SFA Holding
Monvoisin Assurances France 99.9% by different companies
and Mutuals
Societe Beaujon France 99.9%
Lor Finance France 99.9%
Jour Finance France 100% by Alpha Assurances Iard
and by Axa Assurances Iard
Compagnie Auxiliaire pour le France 99.8% by Societe Beaujon
Commerce and l'Industrie
C.F.G.A. France 99.96% owned by Mutuals and
Finaxa
Axa Global Risks France 100% owned by Axa and Mutuals
Saint Bernard Diffusion France 94.92% owned by Direct
Assurances Iard
Sogarep France 95% (100% with Mutuals)
Argovie France 100% by Axiva and SCA Argos
Finargos France 70.5% owned by Axiva
C-15
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Astral Finance France 99.33% by Axa Courtage Vie
Argos France N.S.
Finaxa Belgium Belgium 100%
Axa Belgium Belgium 26.8% by Axa(SA) and 72.6% by
Finaxa Belgium
De Kortrijske Verzekering Belgium 99.8% by Axa Belgium
Juris Belgium 100% owned by Finaxa Belgium
Finaxa Luxembourg Luxembourg 100%
Axa Assurance IARD Luxembourg Luxembourg 99.9%
Axa Assurance Vie Luxembourg Luxembourg 99.9%
Axa Aurora Spain 50% owned by Axa
Aurora Polar SA de Seguros y Spain 99.4% owned by Axa Aurora
Reaseguros
Axa Vida SA de Seguros y Spain 89.82% owned by Aurora Polar 5%
Reaseguros by Axa
Axa Gestion de Seguros y Spain 99.1% owned by Axa Aurora
Reaseguros
Hilo Direct Seguros Spain 99.9% by Axa Aurora
Axa Assicurazioni Italy 100% owned by Axa
Eurovita Italy 30% owned by Axa Assicurazioni
Axa Equity & Law plc U.K. 99.9% owned by Axa
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
Life Assurance Society
Axa Leven The Nether- 100% by Axa Equity & Law Life
lands Assurance Society
Axa Insurance U.K. 100% owned by Axa
Axa Global Risks U.K. 100% owned by Axa Global Risks
(France)
Axa Canada Canada 100% owned by Axa
Boreal Insurance Canada 100% owned by Gestion Fracapar
Axa Assurances Inc. Canada 100% owned by Axa Canada
C-16
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Axa Insurance Inc. Canada 100% owned by Axa Canada and
Axa Assurance Inc.
Anglo Canada General Insurance Canada 100% owned by Axa Canada
Cy
Axa Pacific Insurance Canada 100% by Boreal Insurance
Boreal Assurances Agricoles Canada 100% by Boreal Insurance
Sime Axa Berhad Malaysia 30% owned by Axa and Axa
Reassurance
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. 60.8% between Axa, 44.69%
Financiere 45, 3.8%, Lorfinance
7.6% and Axa Equity & Law
Life Association Society 4.8%
Equitable Life Assurance of the U.S.A. 100% owned by Equitable
USA Cies Inc.
National Mutual Holdings Ltd Australia 51% between Axa, 42.1% and Axa
Equity & Law Life Assurance
Society 8.9%
The National Mutual Life Asso- Australia 100% owned by National Mutual
ciation of Australasia Ltd Holdings Ltd
National Mutual International Australia 100% owned by National Mutual
Pty Ltd Holdings Ltd
National Mutual (Bermuda) Ltd Australia 100% owned by National
Mutual International Pty Ltd
National Mutual Asia Ltd Australia 55% owned by National Mutual
Holdings Ltd and 20% by
Datura Ltd and 13% by Na-
tional Mutual Life Associa-
tion of Australasia
Australian Casualty & Life Ltd Australia 100% owned by National Mutual
Holdings Ltd
National Mutual Health Insur- Australia 100% owned by National Mutual
ance Pty Ltd Holdings Ltd
C-17
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Axa Reassurance France 100% owned by Axa, Axa Assur-
ances Iard and Axa Global
Risks
Axa Re Finance France 80% owned by Axa Reassurance
Axa Re Vie France 99.9% owned by Axa Reassurance
Axa Cessions France 100% by Axa
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
and Axa Reassurance
Axa America U.S.A. 100% owned by Axa Reassurance
International Technology Un- U.S.A. 80% owned by Axa America
derwriters Inc. (INTEC)
Axa Re Life U.S.A. 100% owned by Axa Re Vie
C.G.R.M. Monaco 100% owned by Axa Reassurance
Axa Life Insurance Japan 100% owned by Axa
Dongbu Axa Life Insurance Co Ltd Korea 50% owned by Axa
Axa Oyak Hayat Sigota Turkey 60% owned by Axa
Oyak Sigorta Turkey 11% owned by Axa
C-18
<PAGE>
AXA FINANCIAL BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Compagnie Financiere de Paris France 96.9% (100% with Mutuals)
(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 Axa Asset
Management Europe
Compagnie Europeenne de Credit France 100% owned by C.F.P.
(C.E.C.)
Fidei France 20.7% owned by C.F.P. and
10.8% by Axamur
Societe de Placements Selec- France 98.58% with Mutuals
tionnes S.P.S.
Presence et Initiative France 100% with Mutuals
Vamopar France 100% owned by Societe Beaujon
Financiere Mermoz France 100%
Axa Asset Management Europe France 100%
Axa Asset Management France 100% owned by Axa Asset
Partenaires Management Europe
Axa Asset Management Conseils France 100% owned by Axa Asset
Management Europe
Axa Asset Management Distribu- France 100% owned by Axa Asset
tion Management Europe
Axa Equity & Law Home Loans U.K. 100% owned by Axa Equity &
Law Plc
Axa Equity & Law Commercial U.K. 100% owned by Axa Equity &
Loans Law Plc
C-19
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Alliance Capital Management U.S.A. 59% held by ELAS
Donaldson, Lufkin & Jenrette U.S.A. 44.1% owned by Equitable Cies
Inc. and 36.1% by Equitable
Holding Cies
National Mutual Funds Manage- Australia 100% owned by National Hold-
ment (Global) Ltd ings Ltd
National Mutual Funds Manage- U.S.A. 100% by National Mutual Funds
ment North America Holding Management (Global) Ltd.
Inc.
Cogefin Luxembourg 100% owned by Axa Belgium
Financiere 45 France 99.8% owned by Axa
Mofipar France 99.76% owned by Axa
ORIA France 100% owned by Axa Millesimes
Axa Oeuvres d'Art France 100% by Mutuals
Axa Cantenac Brown France 100% by Societe Beaujon
Axa Suduiraut France 99.6% owned by Societe Beaujon
Colisee Acti Finance 2 France 100% owned by Axa Assurances
Iard Mutuelle
C-20
<PAGE>
AXA REAL ESTATE BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
C.I.P.M. France 97.8% with 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 Mutuelles
Parigest France 100% by the Mutuals, C.I.P.M.
and Fincosa
Parimmo France 100% by the insurance compa-
nies and Mutuals
S.G.C.I. France 100% by different companies
and Mutuelles
Transaxim France 100% owned by S.G.C.I. and
C.P.P.
Compagnie Parisienne de Par- France 100% owned by S.G.C.I.
ticipations
Monte Scopando France 100% owned by C.P.P.
Matipierre France 100% by different companies
Securimmo France 87.12% by different companies
and Mutuals
Paris Orleans France 100% by Axa Courtage Iard
Colisee Bureaux France 100% by different companies
and Mutuals
Colisee Premiere France 100% by different companies
and Mutuals
Colisee Laffitte France 100% by Colisee Bureaux
Foniere 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 Ass Iard
Ahorro Familiar France 42.2% owned by Axa Assurances
Iard
Fonciere du Val d'Oise France 100% owned by C.P.P.
Sodarec France 100% owned by C.P.P.
C-21
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Centrexpo France 100% owned by C.P.P.
Fonciere de la Ville du Bois France 100% owned by Centrexpo
Colisee Seine France 100% owned by different
companies
Translot France 100% owned by SGCI
S.N.C. Dumont d'Urville France 100% owned by Colisee Premiere
Colisee Federation France 100% by SGCI
Colisee Saint Georges France 100% by SGCI
Drouot Industrie France 50% by SGCI and 50% by Axamur
Colisee Vauban France 99.6% by Matipierre
Fonciere Colisee France 100% by Matipierre and different
companies
Axa Pierre S.C.I. France 97.6% owned by different
companies and Mutuals
Axa Millesimes France 85.2% owned by AXA and the
Mutuals
Chateau Suduirault France 100% owned by Axa Millesimes
Diznoko Hungary 95% owned by Axa Millesimes
Compagnie Fonciere Matignon France 100% by different companies and
Mutuals
Equitable Real Estate Investment U.S.A. 100% owned by ELAS
Quinta do Noval Vinhos S.A. Portugal 99.6% owned by Axa Millesimes
C-22
<PAGE>
OTHER AXA BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
A.N.F. France 95.4% owned by Finaxa
Lucia France 20.6% owned by Axa Assurances
Iard and 8.6% by Mutuals
Schneider S.A. France 10.4%
C-23
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
NOTES
-----
1. The year of formation or acquisition and state or country of
incorporation of each affiliate is shown.
2. The chart omits certain relatively inactive special purpose real estate
subsidiaries, partnerships, and joint ventures formed to operate or
develop a single real estate property or a group of related properties,
and certain inactive name-holding corporations.
3. All ownership interests on the chart are 100% common stock ownership
except: (a) The Equitable Companies Incorporated's 44.1% interest in
Donaldson, Lufkin & Jenrette, Inc. and Equitable Holding Corporation's
36.1% interest in same; (b) as noted for certain partnership interests;
(c) Equitable Life's ACMC, Inc.'s and Equitable Capital Management
Corporation's limited partnership interests in Alliance Capital
Management L.P.; (d) as noted for certain subsidiaries of Alliance
Capital Management Corp. of Delaware, Inc.; (e) Treasurer Robert L.
Bennett's 20% interest in Compass Management and Leasing Co. (formerly
EREIM, Inc.); and (f) DLJ Mortgage Capital's and Equitable Real Estate's
respective ownerships, 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
EQ Advisors Trust
Separate Accounts
6. This chart was last revised on April 1, 1997.
C-24
<PAGE>
Item 27. Number of Contractowners
------------------------
As of March 31, 1997, there were 43,033 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) EQ Financial Consultants, Inc. ("EQ Financial"), a
wholly owned subsidiary of Equitable, is the principal
underwriter and depositor for its Separate Account A,
Separate Account No. 301, Separate Account I and for
Separate Account FP. EQ Financial's principal business
address is 1755 Broadway, NY, NY 10019.
(b) See Item 25.
(c) Not applicable.
C-25
<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.
(d) Equitable represents that the fees and charges deducted
under the Contract described in this Registration
Statement, in the aggregate, are reasonable in relation to
the services rendered, the expenses to be incurred, and
the risks assumed by Equitable under the respective
Contracts. Equitable bases its representation on its
assessement of all of the facts and circumstances,
including such relevant factors as: the nature and extent
of such services, expenses and risks, the need for
Equitable to earn a profit, the degree to which the
Contract includes innovative features, and regulatory
standards for the grant of exemptive relief under the
Investment Company Act of 1940 used prior to October 1996,
including the range of industry practice.
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-26
<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
29th day of April, 1997.
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/ Maureen K. Wolfson
--------------------------------
Maureen K. Wolfson
Vice President
C-27
<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
29th day of April, 1997.
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
(Depositor)
By: /s/ Maureen K. Wolfson
------------------------------
Maureen K. Wolfson
Vice President
As required by the Securities Act of 1933 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, Chief Execu-
tive Officer and Director
James M. Benson President and Director
William T. McCaffrey Senior Executive Vice President,
Chief Operating Officer and Director
PRINCIPAL FINANCIAL OFFICER:
Stanley B. Tulin Senior Executive Vice President and
Chief Financial Officer
PRINCIPAL ACCOUNTING OFFICER:
/s/ Alvin H. Fenichel Senior Vice President and Controller
- ------------------------
Alvin H. Fenichel
April 29, 1997
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 John T. Hartley William T. McCaffrey
Henri de Castries John H.F. Haskell, Jr. Joseph J. Melone
Joseph L. Dionne Mary R. (Nina) Henderson Didier Pineau-Valencienne
William T. Esrey W. Edwin Jarmain George J. Sella, Jr.
G. Donald Johnston, Jr. Dave H. Williams
By: /s/ Maureen K. Wolfson
--------------------------
Maureen K. Wolfson
Attorney-in-Fact
April 29, 1997
C-28
<PAGE>
EXHIBIT INDEX
--------------
<TABLE>
<CAPTION>
EXHIBIT NO. TAG VALUE
- ----------- ---------
<S> <C> <C>
6(d) By-Laws of Equitable, as amended November 21, 1996. EX-99.6d BYLAWS
6(e) Restated Charter of Equitable, as amended January 1, 1997. EX-99.6e CHARTER
10(b) Consent of Price Waterhouse LLP. EX-99.10b CONSENT
10(c) Powers of Attorney. EX-99.10c POW ATTY
27 Financial Data Schedule. EX-27
</TABLE>
C-29
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF
THE UNITED STATES
BY-LAWS
-------
As Amended November 21, 1996
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF
THE UNITED STATES
BY-LAWS
-------
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.................................... 2
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......................................... 3
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.................................................. 4
Section 3.1 Committees................................................. 4
Section 3.2 Authority of Committees.................................... 5
Section 3.3 Quorum and Manner of Acting................................ 5
Section 3.4 Removal of Members......................................... 6
Section 3.5 Vacancies.................................................. 6
Section 3.6 Subcommittees.............................................. 6
Section 3.7 Alternate Members of Committees............................ 6
Section 3.8 Attendance of Other Directors.............................. 6
<PAGE>
ARTICLE IV OFFICERS.................................................... 6
Section 4.1 Chairman of the Board...................................... 6
Section 4.2 Vice-Chairman of the Board................................. 7
Section 4.3 President.................................................. 7
Section 4.4 Chief Executive Officer.................................... 7
Section 4.5 Secretary.................................................. 7
Section 4.6 Other Officers............................................. 8
ARTICLE V CAPITAL STOCK............................................... 8
Section 5.1 Transfers of Stock;
Registered Shareholders.................................. 8
Section 5.2 Transfer Agent and Registrar............................... 9
ARTICLE VI EXECUTION OF INSTRUMENTS..................................... 9
Section 6.1 Execution of Instruments................................... 9
Section 6.2 Facsimile Signatures of
Former Officers.......................................... 10
Section 6.3 Meaning of Term "Instruments".............................. 10
ARTICLE VII GENERAL..................................................... 10
Section 7.1 Reports of Committees...................................... 10
Section 7.2 Independent Certified
Public Accountants....................................... 10
Section 7.3 Directors' Fees............................................ 10
Section 7.4 Indemnification of Directors,
Officers and Employees................................... 10
Section 7.5 Waiver of Notice........................................... 11
Section 7.6 Company.................................................... 11
ARTICLE VIII AMENDMENT OF BY-LAWS....................................... 11
Section 8.1 Amendment of By-Laws....................................... 11
Section 8.2 Notice of Amendment........................................ 12
<PAGE>
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.,
local time, or at such other place, within or without the State of New York, or
on such other earlier or later date in April or May 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
Secs. 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 Secs. 605, 606]
- --------
* 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 1.3. 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.
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
<PAGE>
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 Secs. 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 five 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 24 hours prior to the special meeting, personally or by
telephone or telegram or 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
<PAGE>
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 three 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 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 three 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;
<PAGE>
(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 authority as to the following matters:
(a) the submission to shareholders of any action as to which
shareholder approval is required by law;
(b) the filling of vacancies in the Board of Directors or in any
committee thereof;
(c) the fixing of compensation of the Directors for serving on the
Board of Directors or any committee thereof;
(d) the amendment or repeal of the By-Laws, or the adoption of new
By-Laws; or
(e) the amendment or repeal of any resolution of the Board of Directors
unless such resolution of the Board of Directors by its terms provides that
it may be so amended or repealed.
<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 meetings, 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
<PAGE>
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.
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-Chairmen 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.
<PAGE>
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 meetings 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 Officers. 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 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 or 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 Secs. 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.
<PAGE>
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 notifications, 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 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.
<PAGE>
(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 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 7.3. 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)]
<PAGE>
Section 7.4. Indemnification of Directors, Officers and Employees. (a)
To the extent permitted by the law of the State of New York and subject to all
applicable requirements thereof:
(i) any person made or threatened to be made a party to any action or
proceeding, whether civil or criminal, by reason of the fact that he or she,
or his or her testator or intestate, is or was a director, officer or
employee of the Company shall be indemnified by the Company;
(ii) any person made or threatened to be made a party to any action or
proceeding, whether civil or criminal, by reason of the fact that he or she,
or his or her testator or intestate serves or served any other organization
in any capacity at the request of the Company may be indemnified by the
Company; and
(iii) the related expenses of any such person in any of said categories
may be advanced by the Company.
(b) To the extent permitted by the law of the State of New York, the
Company may provide for further indemnification or advancement of expenses by
resolution of shareholders of the Company or the Board of Directors, by
amendment of these By-Laws, or by agreement. [Business Corporation Law Secs.
721-726; Insurance Law Sec. 1216]
Section 7.5. 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)]
Section 7.6. 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, all By-Laws of the Corporation,
<PAGE>
whether adopted by the Board of Directors or the shareholders, shall be subject
to amendment, alteration or repeal, and new By-Laws may be made, either
(a) by the shareholders at any annual or special meeting of
shareholders the notice of which shall have specified or summarized the
proposed amendment, alteration, repeal or new By-Laws, or
(b) by resolution adopted by the Board of Directors at any regular or
special meeting, the notice or waiver of notice of which, unless none is
required hereunder, shall have specified or summarized the proposed
amendment, alteration, repeal or new By-Laws,
provided, however, that the shareholders may at any time provide in the By-Laws
that any specified provision or provisions of the By-Laws may be amended,
altered or repealed only in the manner specified in the foregoing clause (a), in
which event such provision or provisions shall be subject to amendment,
alteration or repeal only in such manner. [Business Corporation Law Sec. 601(a);
Insurance Law Sec. 1210]
Section 8.2. Notice of Amendment. If any By-Law regulating an impending
election of directors is adopted, amended or repealed by the Board of Directors,
there shall be set forth in the notice of the next meeting of shareholders for
the election of directors the By-Law so adopted, amended or repealed, together
with a concise statement of the changes made. [Business Corporation Law Sec. 601
(b).]
RESTATED CHARTER
OF
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
ARTICLE I
The name of the corporation shall continue to be The Equitable Life
Assurance Society of the United States.
ARTICLE II
The principal office of the corporation shall be located in the City of
New York, County of New York, State of New York.
ARTICLE III
(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
and permanent disability of the insured, and optional modes of
settlement of proceeds. "Life insurance" also includes additional
benefits to safeguard the contract against lapse in the event of
unemployment of the insured. 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
<PAGE>
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-cancellable disability insurance, meaning
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.
- 2 -
<PAGE>
ARTICLE IV
The business of the corporation shall be managed under the direction of
the Board of Directors.
ARTICLE V
(a) The Board of Directors shall consist of not less than 13 (except
for vacancies temporarily unfilled) nor 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 the business and 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.
(d) No Director shall be personally liable to the corporation or any of
its shareholders for damages for any breach of duty as a 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 any other law;
or (ii) the liability of a Director for any act or omission prior to September
21, 1989.
- 3 -
<PAGE>
ARTICLE VI
(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.
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.
ARTICLE VII
The duration of the corporate existence of the corporation shall be
perpetual.
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.
44859-1.DOC
- 4 -
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 7 to the Registration
Statement No. 33-47949 on Form N-4 (the "Registration Statement") of our report
dated February 10, 1997 relating to the financial statements of The Equitable
Life Assurance Society of the United States Separate Account A for the year
ended December 31, 1996, and our report dated February 10, 1997 relating to the
consolidated financial statements of The Equitable Life Assurance Society of the
United States for the year ended December 31, 1996, which reports appear in such
Statement of Additional Information, and to the incorporation by reference of
our reports into the Prospectus which constitutes part of this Registration
Statement. We also consent to the reference to us under the heading "Custodian
and Independent Accountant" in the Statement of Additional Information.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
New York, New York
April 29, 1997
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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 30th day of September, 1996
/s/ Christopher J. Brocksom
---------------------------
<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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 30th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 20th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 18th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 13th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 attorney-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 attorney-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 6th day of January, 1997
/s/ Mary R. (Nina) Henderson
---------------------------------
Mary R. (Nina) Henderson
<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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 30th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 1996
/s/ Arthur L. Liman
-------------------
<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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 12th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 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, Maureen K. Wolfson, Pauline
Sherman, Donald R. Kaplan, Naomi J. Weinstein, 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 19th day of September, 1996
/s/ Dave H. Williams
--------------------
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000089024
<NAME> Sep Acct A ELAS
<SERIES>
<NUMBER> 02
<NAME> Common Stock Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 3,561,855,207
<INVESTMENTS-AT-VALUE> 4,335,729,549
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 10,481,008
<TOTAL-ASSETS> 4,346,210,557
<PAYABLE-FOR-SECURITIES> 9,509,685
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,002,772
<TOTAL-LIABILITIES> 13,512,457
<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> 4,332,698,100
<DIVIDEND-INCOME> 31,566,792
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 50,222,898
<NET-INVESTMENT-INCOME> (18,656,106)
<REALIZED-GAINS-CURRENT> 467,121,717
<APPREC-INCREASE-CURRENT> 326,272,321
<NET-CHANGE-FROM-OPS> 774,737,932
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (18,656,106)
<DISTRIBUTIONS-OF-GAINS> 793,394,038
<DISTRIBUTIONS-OTHER> 382,573,715
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,154,712,730
<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 Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 94,721,024
<INVESTMENTS-AT-VALUE> 94,367,905
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 3,735,501
<TOTAL-ASSETS> 98,103,406
<PAYABLE-FOR-SECURITIES> 3,722,471
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 566,137
<TOTAL-LIABILITIES> 4,288,608
<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> 93,814,798
<DIVIDEND-INCOME> 4,218,305
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,095,001
<NET-INVESTMENT-INCOME> 3,123,304
<REALIZED-GAINS-CURRENT> 137,830
<APPREC-INCREASE-CURRENT> 15,587
<NET-CHANGE-FROM-OPS> 3,276,721
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,123,304
<DISTRIBUTIONS-OF-GAINS> 153,417
<DISTRIBUTIONS-OTHER> 12,342,173
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 15,557,501
<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 Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 2,874,726,262
<INVESTMENTS-AT-VALUE> 2,978,162,769
<RECEIVABLES> 3,430,056
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,981,592,825
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,019,095
<TOTAL-LIABILITIES> 5,019,095
<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> 2,976,573,730
<DIVIDEND-INCOME> 6,308,285
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 33,994,845
<NET-INVESTMENT-INCOME> (27,686,560)
<REALIZED-GAINS-CURRENT> 578,406,046
<APPREC-INCREASE-CURRENT> (87,392,419)
<NET-CHANGE-FROM-OPS> 463,327,067
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (27,686,560)
<DISTRIBUTIONS-OF-GAINS> 491,013,627
<DISTRIBUTIONS-OTHER> 416,433,659
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 879,164,373
<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 Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1,095,836,659
<INVESTMENTS-AT-VALUE> 1,122,444,797
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,213,821
<TOTAL-ASSETS> 1,123,658,618
<PAYABLE-FOR-SECURITIES> 931,572
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 991,204
<TOTAL-LIABILITIES> 1,922,776
<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> 1,121,735,842
<DIVIDEND-INCOME> 34,404,660
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 14,737,300
<NET-INVESTMENT-INCOME> 19,667,360
<REALIZED-GAINS-CURRENT> 100,889,344
<APPREC-INCREASE-CURRENT> (15,177,682)
<NET-CHANGE-FROM-OPS> 105,379,022
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 19,667,360
<DISTRIBUTIONS-OF-GAINS> 85,711,662
<DISTRIBUTIONS-OTHER> (25,275,719)
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 79,622,114
<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 Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 77,333,927
<INVESTMENTS-AT-VALUE> 78,578,208
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 883,577
<TOTAL-ASSETS> 79,461,785
<PAYABLE-FOR-SECURITIES> 879,253
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 621,294
<TOTAL-LIABILITIES> 1,500,547
<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> 77,961,238
<DIVIDEND-INCOME> 5,697,177
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 717,453
<NET-INVESTMENT-INCOME> 4,979,724
<REALIZED-GAINS-CURRENT> 4,297,646
<APPREC-INCREASE-CURRENT> 721,266
<NET-CHANGE-FROM-OPS> 9,998,636
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,979,724
<DISTRIBUTIONS-OF-GAINS> 5,018,912
<DISTRIBUTIONS-OTHER> 34,989,901
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 44,909,920
<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 Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 447,059,909
<INVESTMENTS-AT-VALUE> 496,558,219
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,467,309
<TOTAL-ASSETS> 499,025,528
<PAYABLE-FOR-SECURITIES> 2,439,129
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,132,134
<TOTAL-LIABILITIES> 3,571,263
<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> 495,454,265
<DIVIDEND-INCOME> 7,691,416
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 5,541,310
<NET-INVESTMENT-INCOME> 2,150,106
<REALIZED-GAINS-CURRENT> 22,308,566
<APPREC-INCREASE-CURRENT> 26,407,595
<NET-CHANGE-FROM-OPS> 50,866,267
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,150,106
<DISTRIBUTIONS-OF-GAINS> 48,716,161
<DISTRIBUTIONS-OTHER> 129,866,996
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 180,446,779
<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> 08
<NAME> Conservative Investors Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 82,715,248
<INVESTMENTS-AT-VALUE> 85,864,836
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 202,365
<TOTAL-ASSETS> 86,067,201
<PAYABLE-FOR-SECURITIES> 197,565
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 618,084
<TOTAL-LIABILITIES> 815,649
<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> 85,251,552
<DIVIDEND-INCOME> 3,720,544
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,089,538
<NET-INVESTMENT-INCOME> 2,631,006
<REALIZED-GAINS-CURRENT> 2,242,475
<APPREC-INCREASE-CURRENT> (1,503,698)
<NET-CHANGE-FROM-OPS> 3,369,783
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,631,006
<DISTRIBUTIONS-OF-GAINS> 738,777
<DISTRIBUTIONS-OTHER> 10,927,837
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 14,225,340
<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> 09
<NAME> Growth Investors Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 508,888,790
<INVESTMENTS-AT-VALUE> 530,496,700
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 3,672,772
<TOTAL-ASSETS> 534,169,472
<PAYABLE-FOR-SECURITIES> 3,642,884
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,115,959
<TOTAL-LIABILITIES> 4,758,843
<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> 529,410,629
<DIVIDEND-INCOME> 10,897,241
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 5,790,451
<NET-INVESTMENT-INCOME> 5,106,790
<REALIZED-GAINS-CURRENT> 52,452,931
<APPREC-INCREASE-CURRENT> (9,867,072)
<NET-CHANGE-FROM-OPS> 47,692,649
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5,106,790
<DISTRIBUTIONS-OF-GAINS> 42,585,859
<DISTRIBUTIONS-OTHER> 175,609,712
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 223,089,437
<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> 12
<NAME> Intermed Gov Securities Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 29,929,472
<INVESTMENTS-AT-VALUE> 29,956,488
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 728,944
<TOTAL-ASSETS> 30,685,432
<PAYABLE-FOR-SECURITIES> 726,896
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 530,344
<TOTAL-LIABILITIES> 1,257,240
<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> 29,428,192
<DIVIDEND-INCOME> 1,519,758
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 327,332
<NET-INVESTMENT-INCOME> 1,192,426
<REALIZED-GAINS-CURRENT> (84,183)
<APPREC-INCREASE-CURRENT> (386,046)
<NET-CHANGE-FROM-OPS> 722,197
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,192,426
<DISTRIBUTIONS-OF-GAINS> (470,229)
<DISTRIBUTIONS-OTHER> 6,406,518
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 7,104,396
<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> 13
<NAME> Growth & Income Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 145,853,361
<INVESTMENTS-AT-VALUE> 164,318,806
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 187,056
<TOTAL-ASSETS> 164,505,862
<PAYABLE-FOR-SECURITIES> 177,589
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 821,976
<TOTAL-LIABILITIES> 999,565
<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> 163,506,297
<DIVIDEND-INCOME> 2,196,949
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,522,287
<NET-INVESTMENT-INCOME> 674,662
<REALIZED-GAINS-CURRENT> 9,675,338
<APPREC-INCREASE-CURRENT> 10,940,166
<NET-CHANGE-FROM-OPS> 21,290,166
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 674,662
<DISTRIBUTIONS-OF-GAINS> 20,615,504
<DISTRIBUTIONS-OTHER> 71,940,816
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 93,086,018
<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> 14
<NAME> Quality Bond Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 26,450,265
<INVESTMENTS-AT-VALUE> 26,718,392
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 39,620
<TOTAL-ASSETS> 26,758,012
<PAYABLE-FOR-SECURITIES> 38,118
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 370,628
<TOTAL-LIABILITIES> 408,746
<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> 26,349,266
<DIVIDEND-INCOME> 1,526,764
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 300,521
<NET-INVESTMENT-INCOME> 1,226,243
<REALIZED-GAINS-CURRENT> 280,060
<APPREC-INCREASE-CURRENT> (469,209)
<NET-CHANGE-FROM-OPS> 1,037,094
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,226,243
<DISTRIBUTIONS-OF-GAINS> (189,149)
<DISTRIBUTIONS-OTHER> 8,299,441
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 9,303,393
<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> 15
<NAME> Equity Index
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 251,489,348
<INVESTMENTS-AT-VALUE> 275,271,126
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,469,315
<TOTAL-ASSETS> 277,740,441
<PAYABLE-FOR-SECURITIES> 2,453,538
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 940,199
<TOTAL-LIABILITIES> 3,393,737
<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> 274,346,704
<DIVIDEND-INCOME> 3,410,663
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 2,406,335
<NET-INVESTMENT-INCOME> 1,004,328
<REALIZED-GAINS-CURRENT> 14,191,113
<APPREC-INCREASE-CURRENT> 19,487,539
<NET-CHANGE-FROM-OPS> 34,682,980
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,004,328
<DISTRIBUTIONS-OF-GAINS> 33,678,652
<DISTRIBUTIONS-OTHER> 151,699,664
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 186,244,594
<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> 16
<NAME> International Fund Fund
<MULTIPLIER> 1
<CURRENCY> U. S. Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 96,579,363
<INVESTMENTS-AT-VALUE> 97,814,272
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,345,033
<TOTAL-ASSETS> 99,159,305
<PAYABLE-FOR-SECURITIES> 1,339,777
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 631,968
<TOTAL-LIABILITIES> 1,971,745
<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> 97,187,560
<DIVIDEND-INCOME> 1,321,160
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 835,927
<NET-INVESTMENT-INCOME> 485,233
<REALIZED-GAINS-CURRENT> 2,972,966
<APPREC-INCREASE-CURRENT> 1,086,851
<NET-CHANGE-FROM-OPS> 4,545,050
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 485,233
<DISTRIBUTIONS-OF-GAINS> 4,059,817
<DISTRIBUTIONS-OTHER> 77,535,865
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 82,086,464
<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>
