Registration No.33-58950
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. 60 |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
-------------------------
HOPE E. ROSENBAUM-WERNER
VICE PRESIDENT AND 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 3:
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 Contract and Services We
Provide
8. Annuity Period Part 5: Provisions of the
Contract and Services We
Provide
9. Death Benefit Part 5: Provisions of the
Contract and Services We
Provide - Death Benefit
10. Purchases and Contract Value Part 2: Investment
Performance, Part 5:
Provisions of the Contract and
Services We Provide
11. Redemptions Part 5: Provisions of the
Contract and Services We
Provide, Part 6: Deductions
and Charges - Contingent
Withdrawal Charge
12. Taxes Part 8: Federal Tax and ERISA
Matters
13. Legal Proceedings Not Applicable
14. Table of Contents of the Statement of Additional
Statement of Additional Information Table of
Information Contents
<PAGE>
CROSS REFERENCE SHEET
SHOWING LOCATION OF INFORMATION
IN STATEMENT OF ADDITIONAL INFORMATION
--------------------------------------
Statement of Additional
Form N-4 Item Information Caption
------------- -------------------
15. Cover Page Cover Page
16. Table of Contents Table of Contents
17. General Information Part 3: The
and History Reorganization,
Prospectus -
Part 1: Summary
18. Services Not Applicable
19. Purchases of Part 9: Distribution
Securities Being
Offered
20. Underwriters Part 9: Distribution
21. Calculation of Part 4: Accumulation
Performance Data Unit Values, Part 5:
Annuity Unit Values, Part
10: Money Market Fund Yield
Information, Prospectus -
Part 2: Investment Performance
22. Annuity Payments Part 5: Annuity Unit
Values
23. Financial Statements Part 12: Financial Statements
<PAGE>
MOMENTUM PLUS
RETIREMENT PLANNING FROM EQUITABLE LIFE
Supplement, dated May 1, 1997, to
Prospectus, dated May 1, 1997
GROUP VARIABLE ANNUITY CONTRACT FUNDED THROUGH THE
INVESTMENT FUNDS OF SEPARATE ACCOUNT A
Issued By:
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
----------------------------------------------------------------------
This supplement adds and modifies certain information to the
prospectus (PROSPECTUS) of Momentum Plus (MOMENTUM PLUS) of The
Equitable Life Assurance Society of the United States (EQUITABLE
LIFE), dated May 1, 1997. The purpose of the supplement is to offer
Employers or trustees of trusts established with respect to the below
mentioned 457 plans ("Trustees") an opportunity to fund Code Section
457 employee deferred compensation (457) plans with a Momentum Plus
group variable annuity contract issued directly to Employers or
Trustees pursuant to the terms of their respective 457 plans. The
supplement describes the material differences between the Prospectus,
as it applies to the Momentum Plus Program applicable to tax qualified
defined contribution plans, and its application to 457 plans. You
should keep this supplement to the Prospectus for future reference.
You may obtain an additional copy of the Prospectus and a copy of the
Statement of Additional Information (SAI), from us, free of charge, if
you write to the Processing Office, call 1-800-528-0204, or mail in
the SAI request form located at the end of the Prospectus. Special
terms used in the Prospectus have the same meaning in this supplement
unless otherwise noted.
----------------------------------------------------------------------
Copyright 1997
The Equitable Life Assurance Society of the United States,
New York, New York, 10104.
All rights reserved.
888-1136
<PAGE>
MOMENTUM PLUS 457 CONTRACT
GENERAL TERMS. An "Employer" is either (i) a state, political subdivision of a
state, or an agency or instrumentality of any one or more of these entities or
(ii) any other organization exempt from tax which maintains a plan for a select
group of management or highly compensated employees as described under ERISA. A
"Participant" is an employee who is a participant under a plan, adopted by the
"Employer," that is intended to meet the requirements of an eligible deferred
compensation plan under Section 457 of the Code. The "Source" of a contribution
is either (i) the Employer or (ii) participant contributions pursuant to a
deferral election or (iii) a prior plan transfer or rollover from a prior 457
plan. As the 457 Contract does not provide for loans, the definition of "Active
Loan" is not applicable.
THE MOMENTUM PLUS PROGRAM. In addition to the Momentum Plus group variable
annuity contract available to qualified retirement plans that meet the
requirements of Code Section 401(a), the Momentum Plus Program now offers the
Momentum Plus 457 group variable annuity contract ("457 Contract") as a funding
vehicle for Employers or Trustees who sponsor 457 plans. There is no Master
Plan, Master Trust or Pooled Trust applicable to 457 plans. Each Employer or
Trustee, as applicable, participates directly in the 457 Contract, using it as a
funding vehicle for the Employer's plan. The 457 Contract must be used as the
exclusive funding vehicle of the plan unless Equitable Life agrees otherwise.
Contributions to the 457 Contract on behalf of a participant can be from current
year Employer contributions or prior plan contributions transferred from another
457 plan and are limited in amount (see "Public and Tax Exempt Organization
Employee Deferred Compensation Plan (457 Plans)" below). Post-tax contributions
by a Participant may not be made under the 457 Contract. The Momentum Plus
Program currently is not available for state, political subdivision, agency or
instrumentality 457 plans in Texas.
PLAN OR CONTRACT TERMINATION BY THE EMPLOYER. The Employer or the Trustees, in
their sole discretion, may terminate the plan's 457 Contract and transfer
amounts held under the 457 Contract to some other contract or account that
serves as a funding vehicle for the 457 plan. In addition, the Employer or the
Trustees, in their sole discretion, may decide to terminate the 457 plan. If
Plan Termination occurs in the first five years that the plan has participated
in the 457 Contract, all withdrawals from the Investment Funds made on behalf of
a Participant will be subject to a contingent withdrawal charge, except those
withdrawals exempted from such contingent withdrawal charge. See "Waiver of
Withdrawal Charge" below. Withdrawals during the period from the Guaranteed
Interest Account will be subject to the contingent withdrawal charge only if the
Market Value Adjustment is less than the contingent withdrawal charge. See
"Effects of Plan or Contract Termination" in Part 4. When Contract Termination
occurs in the first five years that the plan has participated in the 457
Contract, a contingent withdrawal charge will apply to the surrendered amounts
in the Investment Funds. Surrendered amounts in the Guaranteed Interest Account
will generally be paid in installments. See "Effects of Plan or Contract
Termination" in Part 4 of the Prospectus.
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 Plus Program, we assess a
contingent withdrawal charge described at pages 33 and 34 of the Prospectus. The
contingent withdrawal charge does not apply after the Employer's 457 plan has
participated in the Momentum Plus Program for five years.
WAIVER OF WITHDRAWAL CHARGE. Exceptions to the contingent withdrawal charge are
described in the Prospectus, at pages 34 and 35, amended, however, as follows:
The third sub-paragraph on page 35 of the Prospectus does not apply to the 457
Contract and is replaced by the following:
o the amount withdrawn is an amount in excess of the amount that may be
contributed under Section 457 of the Code, including income thereon, and
is refunded within one month of the date the amount was remitted as a
contribution.
The following exception is added:
o the amount withdrawn is a result of a request of a Participant faced with
an "unforeseen emergency" pursuant to Section 457(d)(1)(A)(iii) of the
Code.
Also, the fourth, fifth and seventh sub-paragraphs on page 34 of the Prospectus
do not apply to the 457 Contract.
PLAN LOANS NOT AVAILABLE. The 457 Contract does not provide for plan loans to
Participants. Accordingly, the information in the Prospectus relating to plan
loans and plan loan setup and recordkeeping charges does not apply to the 457
Contracts.
-2-
<PAGE>
FULL SERVICE PLAN RECORDKEEPING OPTIONS NOT AVAILABLE. The full service plan
recordkeeping option described in the Prospectus at pages 32 and 34 are not
available under the 457 Contract. The annual charge for these services,
therefore, will not apply under the 457 Contract.
FEES AND CHARGES. Except as described above, the fees and charges applicable to
the 457 Contract are the same as those described in the Prospectus for Momentum
Plus contracts used to fund qualified defined contribution plans. See "Fee
Table" in Part 1, and Part 6, of the Prospectus.
AUTOMATIC MINIMUM WITHDRAWAL OPTION. We offer a payment option, which we call
"Automatic Minimum Withdrawal Option," which is intended to meet the minimum
distribution requirements applicable to 457 plans. The Employer may elect the
Automatic Minimum Withdrawal Option for a Participant if the Participant is at
least age 70 1/2 and the Retirement Account Value in the Investment Funds is at
least $2,000. Participants should complete the Automatic Minimum Withdrawal
Option by filing the proper election form provided by the Employer. If the
Automatic Minimum Withdrawal Option is elected, we will pay out of the
Retirement Account Value in the Investment Funds an amount which the Code
requires to be distributed from the 457 plan. In performing this calculation, we
assume that the only funds subject to the Code's minimum distribution
requirements are those held for the Participant under the 457 Contract. We
calculate the Automatic Minimum Withdrawal Option amount based on information
the Employer or Trustees give us and on certain assumptions. Currently, the
Automatic Minimum Withdrawal Option payments will be made annually. We are not
responsible for errors that result from inaccuracies in the information provided
to us.
The Automatic Minimum Withdrawal Option, if elected, will be subject to our
rules then in effect. This election is not revocable. Generally, electing this
option does not restrict making partial withdrawals or subsequently electing an
annuity distribution option. However, you must consult with your tax advisor
before making any partial withdrawal or electing an annuity distribution,
because the Internal Revenue Code and Treasury Regulations generally require
that payments under 457 plans have to be substantially equal in amount. The
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.
The minimum check that will be sent is $300, or, if less, the Participant's
Retirement Account Value. If, after the deduction of the amount of the minimum
distribution, the total Retirement Account Value of a Participant is less than
$500, we may pay that amount.
BENEFICIARY. Under the 457 Contract, the Employer or the Trustees must be the
beneficiary of all Participants under the 457 plan. Each Participant's actual
beneficiary designation under the Employer's 457 plan will be maintained by the
Employer or Trustees. Upon our receipt of due proof of the death of a
Participant, Equitable Life may, at the request of the Employer or Trustees,
change the beneficiary designation and pay a death benefit to the then
designated beneficiary. Under the Employer's 457 plan, the amount of the death
benefit will be equal to the Retirement Account Value as of the applicable
Transaction Date. The beneficiaries may elect any of the methods of disposition,
described under "Death Benefit" in Part 5 of the Prospectus.
CODE SECTION 457 TAX MATTERS
Note: Except for the text on page 37 of the Prospectus preceding "Tax Aspects
of Contributions to a Plan" and "Impact of Taxes to Equitable Life" on
page 41, "Part 8: Federal Tax and ERISA Matters" in the Prospectus does
not apply to 457 plans and is replaced by the addition of this section.
PUBLIC AND TAX-EXEMPT ORGANIZATION EMPLOYEE DEFERRED COMPENSATION PLANS (457
PLANS). Employees and independent contractors who perform services for a state
(including any subdivision, agency or instrumentality of the state) or other
tax-exempt employer may exclude from Federal gross income certain salary
reduction amounts. To qualify, the employer must maintain a 457 plan satisfying
the requirements of Section 457 of the Code. The contracts used to fund 457
plans must be owned by the Employer or the Trustees in all cases. However, the
457 plan may permit the employee to choose among various investment options.
Tax-exempt, non-governmental employers are generally subject to ERISA, and may
be required by the provisions of that Act to limit participation in a 457 plan
to a select group of management or highly compensated employees. The 457 plan
funds are subject to the claims of the employer's general creditors in a 457
plan maintained by a tax-exempt employer. In a 457 plan maintained by a
governmental employer, the plan's assets must be held in trust for the exclusive
benefit of employees. This requirement currently applies to 457 plans
newly-established by a governmental entity employer and must be met by 1999 for
governmental entity employer 457 plans established before August, 1996.
-3-
<PAGE>
Generally, the maximum contribution amount that can be excluded from gross
income in any tax year under a 457 plan is 33 1/3% of the employee's "includable
compensation," up to $7,500. Special rules may permit "catch-up" contributions
during the three years preceding normal retirement age under the 457 plan.
In general, no amounts may be withdrawn from a 457 plan prior to the calendar
year in which the employee attains age 70 1/2, separates from service or in the
event of an unforeseen emergency. Income or gains on contributions under a 457
plan are subject to Federal income tax when amounts are distributed or made
available to the employee or beneficiary. Amounts are not deemed to be "made
available" (currently taxable) just because the participant is permitted under
the plan to make a one-time election to defer commencement of distributions
between the time amounts are allowed to be made available and before
distributions actually start. Also, de minimis amounts (up to $3,500) may be
taken out by the employee or forced out by the plan under certain circumstances,
even though the employee may still be working and amounts would not otherwise be
made available.
Distributions from EDC plans generally must commence no later than April 1st of
the calendar year following the calendar year in which the employee attains 70
1/2 or retires from service with the employer maintaining the EDC plan,
whichever is later.
If the participant in a 457 plan does not commence minimum distributions in the
calendar year in which he or she attains age 70 1/2, or retires if later and
waits until the three month (January 1 - April 1) period in the next calendar
year to commence minimum distributions, then the participant must take two
required minimum distributions in that calendar year.
Distributions from a 457 plan may not be rolled over or transferred to an IRA.
There is no 10% penalty tax imposed on distributions prior to age 59 1/2.
Distributions to a 457 plan participant are characterized as "wages" for income
tax reporting and withholding purposes. No election out of withholding is
possible. See "Federal and State Income Tax Withholding," below. These amounts
are not subject to FICA tax, if FICA tax was withheld by the employer when wages
were deferred. In certain circumstances, receipt of payments from a 457 plan may
result in a reduction of an employee's Social Security benefits.
If the 457 plan so provides, a deceased employee's beneficiary may be able to
elect to receive death benefits in installments instead of a lump sum, and will
be taxed as the payments are received. However, the death benefits must be
received within 15 years of the date of the deceased employee's death (or within
the period of life expectancy of the surviving spouse if the spouse is the
designated beneficiary).
Due to unrelated business income tax rules, the 457 Contracts may not be an
appropriate funding vehicle for a 457 plan maintained by an organization exempt
from tax under the following Code Sections: 501(c)(7) (social club); 501(c)(9)
(VEBA); 501(c)(17) (supplemental unemployment compensation benefit plan trust);
or 501(c)(20) (legal services plan trust). Please contact your tax adviser to
see if these limits may apply to your 457 plan.
TAX PENALTY FOR INSUFFICIENT DISTRIBUTIONS. Failure to make required
distributions may cause the disqualification of the 457 plan. Disqualification
results in current taxation of the Participant's entire benefit. In addition, a
50% penalty tax is imposed on the difference between the required distribution
amount and the amount actually distributed, if any. We do not automatically make
distributions from a 457 Contract unless the Employer so requests. We will
notify you when our records show that your age 70 1/2 is approaching. You should
consult with your tax adviser concerning these rules and their proper
application to your situation.
FEDERAL AND STATE INCOME TAX WITHHOLDING. Payments under 457 plans are subject
to mandatory federal income tax withholding rules applicable to wages; no
election out is permitted. State income tax withholding generally also applies.
The Employer (and not Equitable Life) is generally responsible for such wage
withholding.
TAX CHANGES. The United States Congress has in the past considered, and may in
the future consider, legislation that, if enacted, could change the tax
treatment of 457 plans. In addition, the Treasury Department may amend existing
regulations, issue new regulations, or adopt new interpretations of existing
laws. State tax laws or, if you are not a United States resident, foreign tax
laws, may affect the tax consequences to you or the beneficiary. These laws may
change from time to time without notice and, as a result, the tax consequences
may be altered. There is no way of predicting whether, when or in what form any
such change would be adopted. Any such change could have retroactive effects
regardless of the date of enactment. We suggest you consult your legal or tax
adviser.
42257
-4-
<PAGE>
MOMENTUM PLUS
RETIREMENT PLANNING FROM EQUITABLE LIFE
PROSPECTUS, DATED MAY 1, 1997
GROUP VARIABLE ANNUITY CONTRACT FUNDED THROUGH THE
INVESTMENT FUNDS OF SEPARATE ACCOUNT A
Issued By:
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This prospectus describes a group variable annuity contract (the CONTRACT)
offered by The Equitable Life Assurance Society of the United States (EQUITABLE
LIFE). The Contract is designed to fund defined contribution plans. Employers
sponsoring such plans and trustees of such plans (PLAN TRUSTEES) can participate
in the Contract through the Momentum Plus Program. The Momentum Plus 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 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, including annuities.
Fixed annuities are funded through Equitable Life's general account.
We provide Employers, Plan Trustees and Participants with a variety of services
and reports relating to the Contract. We also offer a variety of plan
recordkeeping services to plan administrators at an additional cost.
This prospectus provides information about the Contract that prospective
investors should know before investing. You should read it carefully and retain
it for future reference. The prospectus is not valid unless it is attached to a
current prospectus for The Hudson River Trust, which investors should also read
carefully.
A registration statement relating to the Separate Account has been filed with
the Securities and Exchange Commission (SEC). The statement of additional
information (SAI), dated May 1, 1997, which is part of that registration
statement, is available free of charge upon request by writing to the Processing
Office or calling 1-800-528-0204, our toll-free number. The SAI has been
incorporated by reference into this prospectus. The Table of Contents for the
SAI appears at the back of this prospectus.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
May 1, 1997 888-1131
- -------------------------------------------------------------------------------
Copyright 1997
The Equitable Life Assurance Society of the United States, New York,
New York, 10104.
All rights reserved.
Cat. No. 127301
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PROSPECTUS TABLE OF CONTENTS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
GENERAL TERMS PAGE 4
PART 1: SUMMARY PAGE 6
Equitable Life 6
The Momentum Plus Program 6
Adopting the Momentum Plus Program 7
The Contract 7
Investment Options 7
Contributions 8
Transfers 8
Services We Provide 8
Distribution Options and Death Benefit 9
Withdrawals and Termination 9
Withdrawals for Plan Loans 10
Taxes 10
Deductions and Charges 10
Fee Table 11
PART 2: INVESTMENT PERFORMANCE PAGE 15
Creating an Investment Strategy 15
Investment Fund Performance 15
Standardized Computation of Performance 19
Communicating Performance Data 20
PART 3: EQUITABLE LIFE'S SEPARATE ACCOUNT AND ITS
INVESTMENT FUNDS PAGE 21
Separate Account A 21
The Hudson River Trust 21
The Hudson River Trust's Investment Adviser 22
Investment Policies And Objectives of The Hudson River Trust's Portfolios 22
PART 4: THE GUARANTEED INTEREST ACCOUNT PAGE 24
Effects of Plan or Contract Termination 24
PART 5: PROVISIONS OF THE CONTRACT AND SERVICES
WE PROVIDE PAGE 26
Selecting Investment Options 26
Contributions 26
Retirement Account Value 27
Transfers 27
Investment Simplifier: Automatic Transfer Service 28
Withdrawal for Plan Loans 28
Withdrawals and Contract Termination 29
Forfeitures 29
Distribution Options 29
Annuity Distribution Options 30
Electing an Annuity Distribution Option 30
Automatic Minimum Withdrawal Option (Over Age 70 1/2) 31
Death Benefit 31
Payments of Proceeds 32
Plan Recordkeeping Services 32
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
PART 6: DEDUCTIONS AND CHARGES PAGE 33
Charge to Investment Funds 33
The Hudson River Trust Charges to Portfolios 33
Quarterly Administrative Charge 34
Charges for State Premium and Other Applicable Taxes 34
Charge for Plan Recordkeeping Services 34
Contingent Withdrawal Charge 34
Loan Charges 35
Special Circumstances 35
PART 7: VOTING RIGHTS PAGE 36
Hudson River Trust Voting Rights 36
Separate Account Voting Rights 36
Voting Rights of Others 36
Changes in Applicable Law 36
PART 8: FEDERAL TAX AND ERISA MATTERS PAGE 37
Tax Aspects of Contributions to a Plan 37
Tax Aspects of Distributions From a Plan 38
Certain Rules Applicable to Plan Loans 41
Impact of Taxes to Equitable Life 42
Certain Rules Applicable to Plans Designed
to Comply with Section 404(c) of ERISA 43
STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS PAGE 43
HOW TO OBTAIN THE STATEMENT OF ADDITIONAL INFORMATION PAGE 43
</TABLE>
3
<PAGE>
- -------------------------------------------------------------------------------
GENERAL TERMS
- -------------------------------------------------------------------------------
In this prospectus, the terms "we," "our" and "us" mean The Equitable Life
Assurance Society of the United States (EQUITABLE LIFE). The terms "you" and
"your" refer to either the Employer, Trustee or the Participant as indicated.
ACCUMULATION UNIT
Contributions that are invested in an Investment Fund purchase Accumulation
Units in that Fund. The "Accumulation Unit Value" is the dollar value of each
Accumulation Unit on a given date.
ACTIVE LOAN
The principal amount of any Participant plan loan that has neither been repaid
nor deemed distributed under Section 72(p) of the Code.
BUSINESS DAY
Our Business Day is generally any day on which Equitable Life is open and the
New York Stock Exchange is open for trading. We are closed on national business
holidays and also on Martin Luther King, Jr. Day and the Friday after
Thanksgiving. Additionally, we may choose to close on the day immediately
preceding or following a national business holiday or due to emergency
conditions. For the purpose of determining the Transaction Date, our Business
Day ends at 4:00 p.m. Eastern Time or the closing of the New York Stock
Exchange, if earlier.
CASH VALUE
The Retirement Account Value minus any applicable withdrawal charge and/or any
Market Value Adjustment.
CODE
The Internal Revenue Code of 1986, as amended.
CONTRACT DATE
The date we receive the first contribution made with respect to a plan.
CONTRACT TERMINATION
Contract Termination occurs (i) when we receive written notice from the Employer
or Plan Trustee, as applicable, that it is terminating a plan's participation
under the Contract, in whole or in part, or (ii) when Equitable Life delivers
written notice to the Employer or Plan Trustee that Equitable Life is
terminating a plan's participation under the Contract because (a) the plan fails
to qualify under the Code or (b) the plan has failed to provide
Equitable Life with the Participant information necessary to properly administer
the Contract.
DEFAULT OPTION
The Money Market Fund, if that Fund is selected by the Employer or Plan Trustee
as a funding option under the plan. Otherwise, the Guaranteed Interest Account.
EMPLOYER
An employer who has sponsored a defined contribution plan that participates in
the Momentum Plus Program through either the Master Plan and Trust or the Pooled
Trust.
ERISA
The Employee Retirement Income Security Act of 1974, as amended.
GUARANTEED INTEREST ACCOUNT
The Investment Option that is part of Equitable Life's general account.
INVESTMENT FUNDS
The fourteen variable investment funds of the Separate Account that are listed
on the first page of this prospectus. Investment Funds are referred to as
"Investment Divisions" in the Contract.
INVESTMENT OPTIONS
The fifteen choices for investment contributions: the fourteen Investment Funds
and the Guaranteed Interest Account.
MARKET VALUE ADJUSTMENT
A downward adjustment applied to certain withdrawals from the Guaranteed
Interest Account after a Plan Termination or Contract Termination. The Market
Value Adjustment is subject to some important limitations more fully described
in Part 4: The Guaranteed Interest Account.
MASTER PLAN AND TRUST
The Members Retirement Plan of The Equitable Life Assurance Society of the
United States and The Members Retirement Trust of The Equitable Life Assurance
Society of the United States, respectively, a defined contribution master plan
and trust sponsored by Equitable Life.
PARTICIPANT
An individual who participates in an Employer's defined contribution plan and is
covered under the Contract.
4
<PAGE>
PLAN TERMINATION
Plan Termination means the termination, either in whole or in part, of the
Employer's defined contribution plan when there is no successor plan. The
Employer or Plan Trustee is required under the Contract to send written notice
to Equitable Life at least 90 days before the date the plan is scheduled to
terminate.
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 addresses to which all payments (e.g., contributions, loan payments, etc.),
written requests (e.g., transfers, withdrawals, etc.) or other communications
must be sent.
RETIREMENT ACCOUNT VALUE
The sum of the amounts that a Participant has in the Investment Options under
the Contract.
SEPARATE ACCOUNT
Equitable Life's Separate Account A.
SOURCE
The source of a contribution. There are six potential sources: (i) employer,
(ii) employee post-tax, (iii) employer 401(k), (iv) employee salary deferral,
(v) employer matching, and (vi) prior plan (transfer or rollover from another
plan). A detailed description of these Sources is contained in the SAI.
SAI
The Statement of Additional Information.
TERMINATED PLAN PARTICIPANT
A Participant who is covered by a defined contribution plan (or a portion
thereof) for which Plan Termination has occurred.
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.
VALUATION PERIOD
Each Business Day together with any preceding non-Business Day.
5
<PAGE>
- --------------------------------------------------------------------------------
PART 1: SUMMARY
- --------------------------------------------------------------------------------
EQUITABLE LIFE
EQUITABLE LIFE is a New York stock life insurance company that has been in
business since 1859. For more than 100 years we have been among the largest life
insurance companies in the United States. 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 PLUS PROGRAM (EMPLOYERS AND PLAN TRUSTEES)
The Momentum Plus 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 Contract is a suitable funding vehicle for its defined contribution
plan and should, therefore, carefully read this prospectus and the Contract
before entering into the Contract.
As an Employer, subject to Equitable Life's underwriting requirements, you can
elect to participate in the Momentum Plus Program and 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 by the 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.
Employers who elect the full service plan record-keeping option must adopt the
Master Plan and Trust. A description of such services may be found under "Plan
Recordkeeping Services" in Part 5. More information about the Master Plan and
Trust may be found in the SAI.
If you, as an Employer, elect our basic recordkeeping option, you may adopt the
Pooled Trust as your plan's
6
<PAGE>
sole funding vehicle. Note that the Contract provides that it must be the
exclusive funding vehicle for your plan unless we agree otherwise. The same
group variable annuity contract (i.e., the 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 have elected
the basic plan recordkeeping option you may use either the Pooled Trust or your
own individually designed or prototype qualified defined contribution plan
document, but you may not use the Master Plan. You may choose to have us perform
additional plan recordkeeping services if the basic plan recordkeeping service
option (for an additional charge) has been elected. The Master Plan may only be
used if the full service plan recordkeeping option (for an additional charge)
has been elected. The full service recordkeeping option is not available with
the Pooled Trust.
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 the Chase
Manhattan Bank, N.A., is to serve as a party to the Contract. It has no
responsibility for the administration of the Momentum Plus Program or for any
distributions or duties under the Contract. In certain states and certain other
situations the Contract will be issued directly to the Employer or Plan Trustee
and, accordingly, the Master Plan and Trust as well as the Pooled Trust, will
not be available. As a consequence, those Employers in those states and
situations will not be able to use our full service plan recordkeeping option.
EMPLOYER'S RESPONSIBILITIES. If you adopt the Master Plan and Trust, you, as the
Employer and plan administrator, will have certain responsibilities relating to
the administration and qualification of your plan, including:
o Sending us contributions at the proper time;
o Determining the amount of all contributions for each Participant;
o Maintaining all personnel records necessary for administering your plan;
o Determining who is eligible to receive benefits;
o Forwarding to us all the forms that employees are required to submit;
o Arranging to have all reports distributed to employees and former employees;
o Arranging to have our prospectuses distributed;
o Filing an annual information return for your plan with the Internal Revenue
Service, if required;
o Providing us with the information needed for running special
non-discrimination tests, if you have a 401(k) plan or if your plan accepts
post-tax employee or employer matching contributions and making any
corrections if you do not pass the test;
o Selecting interest rates and monitoring default procedures, if you elect to
offer Participant loans in your plan; and
o Meeting the requirements of ERISA Section 404(c) if you, as Employer, intend
for your plan to comply with that section.
Other responsibilities of the Employer relating to administration and
qualification of your plan are indicated in the plan recordkeeping services
agreement which is required for all plans that elect the full service plan
recordkeeping option.
We will give you guidance and assistance in the performance of your
responsibilities. The ultimate responsibility, however, rests with you.
If you, as an Employer, use an individually-designed or a prototype plan, you
already have most of these responsibilities, which generally will not be
increased by your adoption of the Pooled Trust.
ADOPTING THE MOMENTUM PLUS 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 Contract.
Your Equitable Life Representative can help you complete the participation
agreement and the Contract application. We recommend that the participation
agreement be reviewed by your tax or benefits advisor.
THE CONTRACT
The Momentum Plus Program is funded through the Contract, a combination fixed
and variable group annuity contract issued by Equitable Life.
INVESTMENT OPTIONS
There are fifteen Investment Options available for Employers to fund their
plans: the Guaranteed Interest Account and fourteen Investment Funds (Alliance
Money Market, Alliance Intermediate Government
7
<PAGE>
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 a mutual fund called The Hudson River Trust. The
Hudson River Trust prospectus (found in the second part of this booklet)
describes the investment objectives and policies of the available Portfolios.
Employers or Plan Trustees may select the number of Investment Options that they
wish to use to fund their plans. If your Employer or Plan Trustee does not
select all fifteen Investment Options under the Contract, your choices will be
limited to the Investment Options selected. If the Plan is intended to comply
with the requirements of ERISA Section 404(c), the Employer or the Plan Trustee
is responsible for making sure that the Investment Options chosen constitute a
broad range of investment choices as required by the Department of Labor (DOL)
Section 404(c) regulation. See "Certain Rules Applicable to Plans Designed to
Comply with Section 404(c) of ERISA" in Part 8.
CONTRIBUTIONS
Contributions may be made at any time and may be made only by the Employer or
Plan Trustee, by either wire transfer or check. Participants should not send
contributions (even if they are employee post-tax contributions) directly to
Equitable Life. There is no minimum contribution.
Employers and Plan Trustees should send all contributions to Equitable Life's
Processing Office. All contributions made by check must be drawn on a bank in
the U.S., in U.S. dollars and made payable to Equitable Life. All checks are
accepted subject to collection.
Contributions are credited as of the Transaction Date, if they are accompanied
by properly completed forms. Failure to use the proper form, or to complete the
form properly, may result in a delay in crediting contributions.
Based upon your Employer's plan, either you or the Plan Trustee, or both, must
instruct us to allocate contributions to one or more of the Investment Options
that are available under your Employer's Plan. Allocation percentages must be in
whole numbers and the sum must equal 100.
We have reserved the right to discontinue accepting contributions upon notice to
Employers and Plan Trustees.
TRANSFERS
Based upon your Employer's plan, either you or the Plan Trustee may direct us to
transfer funds among the Investment Options that are available under your
Employer's plan. 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. See "Transfers" in
Part 5.
SERVICES WE PROVIDE
Your Equitable Life Representative can help with any questions you may have
about the Momentum Plus Program. 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. In
addition, the Momentum Plus Program includes a number of services designed to
keep Participants, Employers and Plan Trustees informed.
REGULAR PARTICIPANT REPORTS
We currently provide written confirmation of every financial transaction and two
additional reports each plan year:
o Annual statement of retirement account; and
o Semi-annual statement of retirement account.
We reserve the right to change the frequency of these reports.
TELEPHONE OPERATED PROGRAM SUPPORT (TOPS) SYSTEM
TOPS is designed to help Participants get up-to-date information about their
accounts via touch-tone telephone. TOPS is only available if your Employer has
elected this service for your Employer's plan.
You can use TOPS to obtain current Accumulation Unit Values for the Investment
Funds selected for your Employer's plan and the current interest rate for the
Guaranteed Interest Account (if available under your Employer's plan). In
addition, once you have completed the form necessary to obtain a special code
number and we have processed it, TOPS can tell you:
o Your current Retirement Account Value;
o Your current allocation percentages; and
o The number of units your account holds in the Investment Funds.
You may then also use TOPS to change your allocation percentages for future
contributions and transfer existing money among the Investment Options.
Procedures have been established by Equitable Life that
8
<PAGE>
are considered to be reasonable and are designed to confirm that instructions
communicated by telephone are genuine. Such procedures include requiring certain
personal identification information prior to acting on telephone instructions
and providing written confirmation of instructions communicated by telephone. If
Equitable Life does not employ reasonable procedures to confirm that
instructions communicated by telephone are genuine, it may be liable for any
losses arising out of any action on its part or any failure or omission to act
as a result of its own negligence, lack of good faith, or willful misconduct. In
light of the procedures established, Equitable Life will not be liable for
following telephone instructions that it reasonably believes to be genuine.
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.
TOPS will not be available after Plan termination occurs.
TOLL-FREE TELEPHONE SERVICES
General information from one of our consultants is available between the hours
of 8:30 a.m. and 7:00 p.m. Eastern Time, every Business Day, by calling
1-800-528-0204. TOPS is available, as described above, by calling
1-800-821-7777.
PROCESSING OFFICE
FOR PAYMENTS (E.G., CONTRIBUTIONS, LOAN
PAYMENTS, ETC.) SENT BY REGULAR MAIL:
Equitable Life
Momentum Administrative Services
P.O. Box 13629
Newark, NJ 07188-0629
FOR PAYMENTS SENT BY EXPRESS MAIL:
First Chicago National Processing Center
300 Harmon Meadow Boulevard, 3rd Floor
Attention: Momentum 13629
Secaucus, NJ 07096
ALL OTHER COMMUNICATIONS (E.G., TRANSFERS,
WITHDRAWALS) SENT BY REGULAR MAIL:
Momentum Administrative Services
P.O. Box 2919
New York, NY 10116
ALL OTHER COMMUNICATIONS SENT BY EXPRESS MAIL:
Momentum Administrative Services
200 Plaza Drive HM-1
Harmon Meadow
Secaucus, NJ 07096
DISTRIBUTION OPTIONS AND DEATH BENEFIT
The Contract provides several different types of retirement benefits to
Participants or their beneficiaries, including lump sum payments and fixed
annuity benefits. The Contract is an annuity contract, even though you may elect
to receive your benefits in another form. Subject to the terms of your
Employer's plan, payout options include:
o Lump sum or partial withdrawals;
o Payments for as long as you live;
o Payments for as long as both you and your joint annuitant live; or
o Payments for a specific length of time (not longer than your life expectancy
or the joint life expectancy of you and your designated beneficiary).
You may also be eligible for our "Automatic Minimum Withdrawal Option" feature,
which is designed to help you satisfy the Code's "minimum distribution
requirements." See "Tax Aspects of Distributions from a Plan -- Distribution
Requirements" in "Part 8: Federal Tax and ERISA Matters."
If you die before distributions begin, your beneficiary will be paid your vested
Retirement Account Value.
See "Distribution Options", "Annuity Distribution Options", "Death Benefits" and
"Your Beneficiary" in Part 5 and "Tax Aspects of Distributions from a Plan" in
Part 8.
WITHDRAWALS AND TERMINATION
The Code gives qualified plans special tax status in order to encourage
long-term retirement savings. As a deterrent to premature withdrawals (generally
prior to age 59 1/2), the Code provides certain restrictions on and penalties
for early withdrawals. See "Federal Tax and ERISA Matters" in Part 8.
The Contract permits funds to be withdrawn from a Retirement Account Value at
any time. However, qualified plans, including the Master Plan and Trust,
generally place restrictions on when and under what circumstances withdrawals
can be made.
Subject to any restrictions in your Employer's plan, you may request a
withdrawal by filing the proper form with your Employer.
The Contract also permits you, as Employer or Plan Trustee, to terminate your
plan's participation under the Contract at any time. Equitable Life has also
reserved the right to terminate the Contract if we learn that the Employer's
plan fails to qualify under the Code or if the Employer fails to provide the
Participant information necessary to administer the Contract.
9
<PAGE>
Withdrawals or Contract Termination may result in a contingent withdrawal charge
on amounts in the Separate Account and, on amounts in the Guaranteed Interest
Account, either a contingent withdrawal charge, installment payments, or a
Market Value Adjustment. Withdrawals that are made on behalf of a Terminated
Plan Participant are treated differently than withdrawals that are made from an
active plan. See "Effects of Plan or Contract Termination" in Part 4 and
"Contingent Withdrawal Charge" in Part 6.
WITHDRAWALS FOR PLAN LOANS
The Contract permits your Employer to withdraw funds from your Retirement
Account Value, without incurring a contingent withdrawal charge, in order to
make a loan to you under your Employer's plan.
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 Contract is terminated. See "Certain Rules Applicable to
Plan Loans" in Part 8 for a discussion of the tax consequences of a loan
default.
TAXES
Any earnings attributable to your Retirement Account Value will not be included
in taxable income until distributions are made. See "Part 8: Federal Tax and
ERISA Matters."
We may deduct a charge for state premium taxes and other applicable state and
local taxes. See "Charges for State Premium and Other Applicable Taxes" in Part
6.
DEDUCTIONS AND CHARGES
QUARTERLY ADMINISTRATIVE CHARGE
An administrative charge which is currently equal to $7.50 or, if less, 0.50% of
the total of your Retirement Account Value plus the amount of any Active Loan is
deducted from your Retirement Account Value on the last Business Day of each
calendar quarter. For accounts of participants in plans that, prior to October
1, 1993, were using EQUI-VEST Corporate TRUSTEED, EQUI-VEST Unincorporated
TRUSTEED, EQUI-VEST Annuitant-Owned HR-10 or Momentum as a funding vehicle, and
which transferred assets to this Contract, the administrative charge will be
waived if the Retirement Account Value of the Momentum Plus account is at least
$25,000 on the last business day of each calendar quarter. We reserve the right
to increase this charge upon 90 days written notice to Employers or Plan
Trustees. Your Employer may elect to pay this charge.
SEPARATE ACCOUNT CHARGE
We make a Separate Account charge (at an annual rate) for expenses (0.25%) and
mortality and expense risks (1.10%). In certain cases, this charge may be
reduced. See "Charge to Investment Funds" in Part 6. The Accumulation Unit Value
is quoted net of these charges.
HUDSON RIVER TRUST CHARGES
Investment advisory fees and other expenses of The Hudson River Trust are
deducted prior to deducting the Separate Account charge described above. See
"Hudson River Trust Charges to Portfolios" in Part 6.
CONTINGENT WITHDRAWAL CHARGE
During the five years following the Contract Date your Retirement Account Value
may be subject to a contingent withdrawal charge if Contract Termination occurs
or when certain withdrawals are made. This charge is used to cover sales and
promotional expenses relating to the Contract.
This charge will not exceed 6% of the amount withdrawn. The amount withdrawn
includes the amount you request and the withdrawal charge. There are certain
important exceptions and limitations which eliminate or reduce the contingent
withdrawal charge. See "Contingent Withdrawal Charge" in Part 6.
LOAN CHARGES
A $25 set-up charge will be deducted from your Retirement Account Value at the
time a plan loan is made. Also, we will deduct a loan 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. Your Employer may elect to pay
these charges and we reserve the right to increase them.
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'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.
10
<PAGE>
FEE TABLE
The purpose of this Table is to assist Employers and Participants in
understanding the various costs and expenses associated with the Contract. The
Table reflects expenses of both the Separate Account and The Hudson River Trust
for the period ended December 31, 1996.
As explained in Part 4, the Guaranteed Interest Account is part of our General
Account and is not a part of the Separate Account. Therefore, the Separate
Account Annual Expenses and The Hudson River Trust Annual Expenses shown below
do not apply to the Guaranteed Interest Account. See also "Effects of a Plan
Termination" in Part 4 and "Electing an Annuity Distribution Option" in Part 5
for a description of fixed annuity charges.
Certain expenses and fees shown in this Table may not apply. To determine
whether a particular item in the Table applies (and the actual amount, if any)
consult the portion of the prospectus indicated in the notes to the Table. A
charge for any applicable state or local taxes such as premium tax may be
deducted from an amount applied to provide an annuity benefit if a participant
elects to annuitize. See "Charges for State Premium and Other Applicable Taxes"
in Part 6.
<TABLE>
<CAPTION>
<S> <C>
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
SEPARATE ACCOUNT ANNUAL EXPENSES
Mortality and Expense Risk Charges..................................................... 1.10%
Expenses............................................................................... 0.25%
-----
Total Separate Account Annual Expenses (5).......................................... 1.35%
=====
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
ALLIANCE
HUDSON RIVER TRUST ANNUAL EXPENSES ALLIANCE INTERMEDIATE ALLIANCE ALLIANCE ALLIANCE ALLIANCE
MONEY GOVT. QUALITY HIGH GROWTH & EQUITY
MARKET SECURITIES BOND YIELD INCOME INDEX
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment Advisory Fee(7)............................. 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 Annual Expenses for The Hudson River
Trust (6)(7)..................................... 0.39% 0.59% 0.58% 0.66% 0.60% 0.38%
======= ======== ======== ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
ALLIANCE ALLIANCE ALLIANCE
HUDSON RIVER TRUST ANNUAL EXPENSES ALLIANCE ALLIANCE AGGRES- SMALL CONSERVA- ALLIANCE
COMMON ALLIANCE INTER- SIVE CAP TIVE ALLIANCE GROWTH
STOCK GLOBAL NATIONAL STOCKS GROWTH INVESTORS BALANCED INVESTORS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Advisory Fee(7)................. 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 Annual Expenses for
The Hudson River Trust (6)(7)........ 0.41% 0.73% 1.08% 0.58% 1.00% 0.55% 0.47% 0.59%
======= ======= ======== ======= ======= ======== ======== =======
</TABLE>
- ----------
Notes:
(1) The maximum contingent withdrawal charge is 6% of the amount withdrawn or,
if less, 8.5% of contributions made on behalf of a Participant. 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 reserve the right to
increase them.
(3) The administrative charge is deducted quarterly and is currently $7.50 per
quarter or, if less, .50% of your Retirement Account Value plus the amount
of any Active Loan. Your Employer may elect to pay this charge. We reserve
the right to increase this charge upon 90 days written notice to the
Employer or Plan Trustee. See "Quarterly Administrative Charge" in Part 6.
(4) This charge will be billed directly to the Employer if the basic plan
recordkeeping option has been elected. We reserve the right to increase
this charge upon 90 days written notice to the Employer or Plan Trustee.
See "Charge for Plan Recordkeeping Services" in Part 6.
(5) The amount shown in the Table under "Separate Account Annual Expenses," is
guaranteed not to exceed a total annual rate of 1.35% of the value of the
assets held in the Investment Funds for the Contract. Separate Account
expenses are shown as a percentage of each Investment Fund's average value.
These charges may be lowered for particular plans to an annual rate of no
less than .80% if the participation of the plan in the Contract is effected
in a manner which results in savings of sales or administrative expenses.
11
<PAGE>
(6) 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 expenses 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
Plus in early June, 1997, is an estimate.
(7) 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 Part 6: "The Hudson River Trust Charges
to Portfolios."
12
<PAGE>
EXAMPLES
- --------
The examples below show the expenses that a hypothetical Participant would pay
in the two situations noted. The examples assume a single contribution of $1,000
on the Contract Date (which is assumed to be the first day of a calendar
quarter) invested in one of the Investment Funds listed, a 5% annual return on
assets, the contingent withdrawal charge is not waived and no loans have been
taken.1 For purposes of these examples, an average quarterly administrative
charge has been used. These examples do not reflect the $300 annual charge for
basic plan 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
If your entire Retirement Account Value is withdrawn under circumstances where
the contingent withdrawal charge applies, the expense at the end of each period
shown would be:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
SURRENDERED 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alliance Money Market $82.56 $129.69 $179.60 $237.71
Alliance Intermediate Government Securities 84.53 135.61 189.50 259.13
Alliance Quality Bond 84.44 135.32 189.00 258.06
Alliance High Yield 85.22 137.68 192.94 266.52
Alliance Growth & Income 84.63 135.91 189.99 260.18
Alliance Equity Index 82.47 129.39 179.11 236.63
Alliance Common Stock 82.76 130.28 180.60 239.87
Alliance Global 85.91 139.75 196.37 273.86
Alliance International 89.36 150.02 213.38 309.80
Alliance Aggressive Stock 84.44 135.32 189.00 258.06
Alliance Small Cap Growth 88.57 147.68 -- --
Alliance Asset Allocation Series:
Alliance Conservative Investors 84.14 134.43 187.53 254.88
Alliance Balanced 83.35 132.06 183.57 246.33
Alliance Growth Investors 84.53 135.61 189.50 259.13
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
If you do not withdraw any Retirement Account Value, the expense at the end of
each period shown would be:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
UNSURRENDERED 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alliance Money Market $20.81 $64.28 $110.32 $237.71
Alliance Intermediate Government Securities 22.91 70.60 120.92 259.13
Alliance Quality Bond 22.80 70.29 120.39 258.06
Alliance High Yield 23.64 72.81 124.60 266.52
Alliance Growth & Income 23.01 70.92 121.44 260.18
Alliance Equity Index 20.71 63.96 109.79 236.63
Alliance Common Stock 21.02 64.91 111.38 239.87
Alliance Global 24.37 75.01 128.28 273.86
Alliance International 28.04 85.98 146.50 309.80
Alliance Aggressive Stock 22.80 70.29 120.39 258.06
Alliance Small Cap Growth 27.20 83.48 -- --
Alliance Asset Allocation Series:
Alliance Conservative Investors 22.49 69.34 118.81 254.88
Alliance Balanced 21.65 66.81 114.57 246.33
Alliance Growth Investors 22.91 70.60 120.92 259.13
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The amount you have accumulated could not be paid to you in the form of an
annuity at the end of any of the periods shown in the examples. The minimum
amount applied to purchase an annuity must be $3,500. See "Electing an
Annuity Distribution Option" in Part 5. In some cases, charges for state
premium or other taxes will be deducted from the amount applied, if
applicable.
(2) Actual administrative charges may be less if you, as Employer, pay the
quarterly administrative charge directly or if the quarterly administrative
charge is not deducted. See "Quarterly Administrative Charge" in Part 6.
13
<PAGE>
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 Program.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
ALLIANCE
LAST ALLIANCE INTERMEDIATE ALLIANCE ALLIANCE ALLIANCE ALLIANCE ALLIANCE
BUSINESS MONEY GOVERNMENT QUALITY HIGH GROWTH & EQUITY COMMON
DAY OF MARKET SECURITIES BOND YIELD INCOME INDEX STOCK
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
December
1993 100.47 100.44 -- 106.74 -- -- 105.01
December
1994 103.10 94.76 99.07 102.37 99.06 100.94 101.38
December
1995 107.55 105.94 114.38 121.10 121.25 135.92 132.47
December
1996 111.75 105.75 118.87 127.46 143.63 164.08 162.39
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
LAST ALLIANCE ALLIANCE ALLIANCE
BUSINESS ALLIANCE ALLIANCE AGGRESSIVE CONSERVATIVE ALLIANCE GROWTH
DAY OF GLOBAL INTERNATIONAL STOCK INVESTORS BALANCED INVESTORS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
December
1993 102.14 -- 105.90 98.60 101.63 101.99
December
1994 106.04 -- 100.49 93.29 92.22 97.45
December
1995 124.30 104.15 130.50 110.81 108.95 121.49
December
1996 116.37 112.81 157.31 114.99 120.01 134.95
- -----------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
- -------------------------------------------------------------------------------
PART 2: INVESTMENT PERFORMANCE
- -------------------------------------------------------------------------------
CREATING AN INVESTMENT STRATEGY
- -------------------------------------------------------------------------------
The Contract provides you with the flexibility to create a personalized
retirement savings investment strategy using the different Investment Options
your Employer has selected under the Contract. Fourteen of the Investment
Options available under the Contract are Investment Funds of the Separate
Account. The Separate Account invests in The Hudson River Trust, a mutual fund.
The Portfolios of The Hudson River Trust invest in a wide range of financial
instruments, including stocks, corporate and government bonds and U.S. Treasury
Bills. See Part 3: "Equitable Life's Separate Account and its Investment Funds,"
for a summary of the investment strategies of the various Portfolios. For more
detailed information, see The Hudson River Trust prospectus, which is in the
second part of this booklet.
This section is designed to provide you with information on the actual
performance of the Investment Funds. See Part 4: "The Guaranteed Interest
Account," for information on the Guaranteed Interest Account, which is part of
Equitable Life's general account.
INVESTMENT FUND PERFORMANCE
In order to help you understand how the actual performance of the Investment
Funds can affect Retirement Account Values, the following tables provide a
historical view of investment performance. The information presented compares
annualized rates of return for each Investment Fund along with appropriate
benchmarks.
Performance data of the Alliance Money Market, Alliance Common Stock, Alliance
Balanced and Alliance Aggressive Stock Funds for the periods prior to December
18, 1987, reflect the investment results of four open-end management separate
accounts (the "predecessor separate accounts") which were reorganized into the
Separate Account in unit investment trust form. The "since inception" figures
for these Funds are based on the date of inception of the predecessor separate
accounts. This performance data has been adjusted to reflect the maximum
investment advisory fee payable for the corresponding Portfolio of The Hudson
River Trust as well as an assumed charge of .06% for direct operating expenses.
For a discussion of the reorganization of the predecessor separate accounts into
the Separate Account, see "Part 3: The Reorganization" in the SAI.
The performance data shown from December 18, 1987 through September 5, 1991 for
these Investment Funds reflects the investment results of The Equitable Trust, a
mutual fund, which was replaced by The Hudson River Trust on September 6, 1991.
The investment objectives and policies of the Portfolios are substantially
similar to those of the corresponding portfolios of The Equitable Trust. At all
times Equitable Life and/or one of its subsidiaries has served as the investment
adviser to the predecessor separate accounts, The Equitable Trust and The Hudson
River Trust.
Performance data for the remaining Investment Funds reflect (i) the investment
results of the corresponding Portfolios of The Hudson River Trust from the date
of inception of those Portfolios, (ii) the actual investment advisory fee and
direct operating expenses of the relevant Portfolio and (iii) the Separate
Account asset charges of 1.35% relating to the Contract.
Because amounts allocated to the Investment Funds are invested in a mutual fund,
investment return and principal will fluctuate and Accumulation Units may be
worth more or less than the original cost when redeemed.
The results shown are not an estimate or guarantee of future investment
performance, and do not reflect the actual experience of amounts invested by a
particular Participant.
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
15
<PAGE>
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 SEPARATE ACCOUNT PERFORMANCE DATA ARE PRESENTED
The performance data for all periods has also been adjusted to reflect the
Separate Account asset charges of 1.35% relating to the Contract.
The annualized rates of return are calculated in the same manner as the average
annual total returns described under "Standardized Computation of Performance"
which follows, except that the quarterly administrative charge and the
contingent withdrawal charge are not reflected in the following performance
tables. These additional charges would effectively reduce the rates of return
presented. The plan recordkeeping fee is not reflected in either the annualized
rates of return or the annual total returns shown under "Standardized
Computation of Performance" because your Employer is billed directly for this
fee.
Investment return and principal will fluctuate and your units may be worth more
or less than the original cost when redeemed.
BENCHMARKS
Market indices are not subject to any charges for investment advisory fees
typically associated with a managed portfolio. Comparisons with these
benchmarks, therefore, are of limited use. We include them because they are
widely known and may help you to understand the universe of securities from
which each Portfolio is likely to 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 Convertible's Index (75% S&P 500/25% Value Line Conv.).
ALLIANCE EQUITY INDEX: March 1, 1994; S&P 500.
ALLIANCE COMMON STOCK: August 1, 1968; 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 Mid-Cap 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 (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 (30% Lehman Corp./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 expenses and asset-based charges applicable
under insurance policies or annuity contracts. Lipper data provide a more
accurate picture than market indices of the Momentum Plus Program 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 3.90% 3.61% 2.91% 4.50% -- 5.53% 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 2.36 2.59 4.17 -- -- 5.51 4/1/91
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 3.93 3.95 -- -- -- 3.37 10/1/93
Lipper Corporate Bond A-Rated 1.31 4.01 -- -- -- 3.49
Lehman Aggregate 3.63 6.03 -- -- -- 5.57
ALLIANCE HIGH YIELD 21.22 11.21 13.11 -- -- 9.91 1/2/87
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 18.46 12.46 -- -- -- 11.24 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 20.72 -- -- -- -- 18.66 3/1/94
Lipper S&P Index Funds 21.10 -- -- -- -- 18.87
S&P 500 22.96 -- -- -- -- 20.90
ALLIANCE COMMON STOCK 22.59 15.64 14.16 14.39 14.04% 11.05 8/1/68
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 13.04 11.22 11.97 -- -- 10.20 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 8.32 -- -- -- -- 10.32 4/3/95
Lipper International 13.36 -- -- -- -- 14.33
MSCI EAFE 6.05 -- -- -- -- 8.74
ALLIANCE AGGRESSIVE STOCK 20.54 14.10 10.32 16.20 -- 18.06 5/1/84
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 10/2/89
INVESTORS 3.78 5.26 5.87 -- -- 7.56
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 5.70 4.63 8.82 -- 10.18 5/1/84
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 11.08 9.78 9.27 -- -- 14.02 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 3.90% 11.23% 15.42% 55.33% -- 119.99% 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 2.36 7.97 22.69 -- -- 36.11 4/1/91
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 3.93 12.33 -- -- -- 11.39 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 21.22 37.53 85.11 -- -- 157.12 1/2/87
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 18.46 42.22 -- -- -- 41.38 10/1/93
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 20.72 -- -- -- -- 62.46 3/1/94
Lipper S&P Index Funds 21.10 -- -- -- -- 63.19
S&P 500 22.96 -- -- -- -- 71.28
ALLIANCE COMMON STOCK 22.59 54.64 93.90 283.70 1,283.92% 1,867.24 8/1/68
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 13.04 37.56 75.97 -- -- 147.96 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 8.32 -- -- -- -- 18.71 4/3/95
Lipper International 13.36 -- -- -- -- 26.53
MSCI EAFE 6.05 -- -- -- -- 15.78
ALLIANCE AGGRESSIVE STOCK 20.54 48.54 63.44 348.75 -- 719.01 5/1/84
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 10/2/89
INVESTORS 3.78 16.63 32.99 -- -- 69.58
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 18.09 25.41 132.81 -- 241.39 5/1/84
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 11.08 32.32 55.75 -- -- 158.78 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>
1984 9.41% % % % % % -3.41%
1985 6.70 -- -- -- -- -- 32.51
1986 5.17 -- -- -- -- -- 15.43
1987 5.23 -- -- 3.27* -- -- 6.08
1988 5.95 -- -- 8.25 -- -- 21.64
1989 7.78 -- -- 3.71 -- -- 24.20
1990 6.89 -- -- -2.43 -- -- -9.18
1991 4.77 10.94* -- 22.78 -- -- 35.95
1992 2.16 4.17 -- 10.80 -- -- 1.82
1993 1.58 9.09 -0.84* 21.48 -0.59* -- 23.14
1994 2.62 -5.66 -6.38 -4.09 -1.91 -0.05* -3.46
1995 4.32 11.80 15.45 18.30 22.40 34.65 30.67
1996 3.90 2.36 3.93 21.22 18.46 20.72 22.59
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
ALLIANCE ALLIANCE ALLIANCE
ALLIANCE ALLIANCE AGGRESSIVE CONSERVATIVE ALLIANCE GROWTH
GLOBAL INTERNATIONAL STOCK INVESTORS BALANCED INVESTORS
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1984 % % 4.85%* % 6.03%* %
1985 -- -- 42.98 -- 23.81 --
1986 -- -- 21.75 -- 11.70 --
1987 -13.67* -- -1.13 -- -5.05 --
1988 9.38 -- -0.39 -- 13.35 --
1989 25.02 -- 42.87 2.75* 24.72 3.65*
1990 -7.33 -- 5.73 4.97 -1.33 9.12
1991 28.79 -- 84.57 18.23 40.16 46.90
1992 -1.86 -- -4.47 4.36 -4.15 3.52
1993 30.34 -- 15.17 9.27 10.80 13.71
1994 3.81 -- -5.11 -5.39 -9.26 -4.45
1995 17.22 9.59* 29.87 18.78 18.14 24.67
1996 13.04 8.32 20.54 3.78 10.16 11.08
- --------------------------------------------------------------------------------------------------------
</TABLE>
* Unannualized
STANDARDIZED COMPUTATION OF PERFORMANCE
The performance data in the following tables, which are prepared in a manner
prescribed by the SEC for use when we advertise the performance of the Separate
Account, illustrate the average annual total return of the Investment Funds over
the periods shown, assuming a single initial contribution of $1,000 and
termination of participation under the 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 using the same adjustments as described above under "How
Performance Data are Presented." 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.
Each calculation assumes that the $1,000 contribution was allocated to only one
Investment Fund, no transfers or additional contributions were made, no amounts
were allocated to any other Investment Fund and the Participant has not taken
any loans.
In order to calculate the annualized rates of return, we divide the termination
value as of December 31, 1996 by a $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 contingent withdrawal charge will never be greater than
6%. See "Part 6: Deductions and Charges." The Retirement Account Value has been
adjusted to reflect the quarterly administrative charge.
19
<PAGE>
- --------------------------------------------------------------------------------
Growth of $1,000 For Participant Terminated on December 31, 1996:
LENGTH OF INVESTMENT PERIOD
----------------------------------------------------------
INVESTMENT ONE THREE FIVE TEN SINCE
FUND YEAR YEARS YEARS YEARS INCEPTION
- -------------------------------------------------------------------------
Alliance Money
Market $957.27 $984.49 $981.49 $1,271.09 --
Alliance
Intermediate
Government
Securities 943.13 955.65 1,043.26 -- $1,212.85
Alliance Quality
Bond 957.54 994.30 -- -- 980.99
Alliance High
Yield 1,116.80 1,217.31 1,591.50 -- 2122.71
Alliance
Growth &
Income 1,091.38 1,258.83 -- -- 1245.13
Alliance Equity
Index 1,112.25 -- -- -- 1,444.92
Alliance
Common Stock 1,129.44 1,371.14 1,671.56 3,250.21 --
Alliance Global 1,041.52 1,217.59 1,507.75 -- 2,070.42
Alliance
International 997.97 -- -- -- 1,077.41
Alliance
Aggressive
Stock 1,110.58 1,314.78 1,393.45 3,860.24 --
Alliance Asset Allocation Series:
Alliance
Conservative
Investors 956.15 1,032.29 1,130.89 -- 1,466.40
Alliance
Balanced 1,014.94 1,045.28 1,066.43 1,924.64 --
Alliance Growth
Investors 1,023.40 1,171.19 1,324.38 -- 2,277.17
- -------------------------------------------------------------------------
Average Annual Total Return For Participant Terminated on December 31, 1996:
LENGTH OF INVESTMENT PERIOD
----------------------------------------------------------
INVESTMENT ONE THREE FIVE TEN SINCE
FUND YEAR YEARS YEARS YEARS INCEPTION
- -------------------------------------------------------------------------
Alliance Money
Market -4.27% -0.52% -0.37% 2.43% --
Alliance
Intermediate
Government
Securities -5.69 -1.50 0.85 -- 3.41%
Alliance Quality
Bond -4.25 -0.19 -- -- -0.59
Alliance High
Yield 11.68 6.77 9.74 -- 7.82
Alliance
Growth &
Income 9.14 7.97 -- -- 6.98
Alliance
Equity Index 11.22 -- -- -- 13.86
Alliance
Common Stock 12.94 11.09 10.82 12.51 --
Alliance
Global 4.15 6.78 8.56 -- 8.10
Alliance
International -0.20 -- -- -- 4.36
Alliance
Aggressive
Stock 11.06 9.55 6.86 14.46 --
Alliance Asset Allocation Series:
Alliance
Conservative
Investors -4.39 1.06 2.49 -- 5.42
Alliance
Balanced 1.49 1.49 1.29 6.77 --
Alliance Growth
Investors 2.34 5.41 5.78 -- 12.03
- -------------------------------------------------------------------------
Note: Unit values and performance results prior to 9/8/93 are hypothetical.
COMMUNICATING PERFORMANCE DATA
In reports or other communications or in advertising material, we may describe
general economic and market conditions affecting the Separate Account and The
Hudson River Trust and may compare the performance of the Investment Funds with
(1) that of other insurance company separate accounts or mutual funds included
in the rankings prepared by Lipper Analytical Services, Inc., Morningstar, Inc.,
VARDS or similar investment services that monitor 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 level
charges VARDS is a monthly reporting service that monitors over 2500 variable
life and variable annuity funds on performance and account information.
Advertisements or other communications furnished to present or prospective
Participants may also include evaluations of an Investment Fund or Portfolio by
financial publications that are nationally recognized such as Barron's,
Morningstar's Variable Annuity 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 3: EQUITABLE LIFE'S SEPARATE ACCOUNT AND
ITS INVESTMENT FUNDS
- -------------------------------------------------------------------------------
SEPARATE ACCOUNT A
Separate Account A is organized as a unit investment trust, a type of investment
company, and is registered with the SEC under the Investment Company Act of 1940
(1940 ACT). This registration does not involve any supervision by the SEC of the
management or investment policies of the Separate Account. The Separate Account
has Investment Funds, each of which invests in shares of a corresponding
Portfolio of The Hudson River Trust. You may allocate some or all of your
contributions among the Funds that your Employer has selected to fund your plan.
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 Contract cannot 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 Contract, and the obligations set forth in the Contract (other
than those of Employers or Plan Trustees) are our obligations.
In addition to contributions made under the Contract, we may allocate to the
Separate Account monies received under other annuity contracts, certificates or
agreements. Owners of all such certificates, contracts or agreements will
participate in the Separate Account in proportion to the amounts they have in
the Investment Funds that relate to their contracts, certificates or agreements.
We may retain in the Separate Account assets that are in excess of the reserves
and other liabilities relating to the Contract or to other contracts,
certificates or agreements, or we may transfer them to our general account.
We reserve the right, subject to compliance with applicable law, including
approval of Participants and Plan Trustees if required, (1) to add new
Investment Funds (or subdivisions of Investment Funds) to, or remove Investment
Funds (or subdivisions of Investment Funds) from, the Separate Account, or to
add new separate accounts (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 of contracts to which the Contract belongs from
any of the Investment Funds to another Investment 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, any Investment Fund or any additional separate account as a management
investment company under the 1940 Act (which may be directed by a committee
which may be composed of a majority of persons who are "interested persons" of
Equitable Life under the 1940 Act, which committee may be discharged by us at
any time) or in any other form permitted by law, including a form that allows us
to make direct investments, (5) to deregister the Separate Account under the
1940 Act, (6) to cause one or more Investment Funds to invest in a mutual fund
other than, or in addition to, The Hudson River Trust, (7) to terminate any
employer or plan trustee agreement pursuant to its terms and (8) to restrict or
eliminate any voting rights of Participants, Plan Trustees or other people who
have voting rights that affect the Separate Account.
If any changes are made that result in a material change in the underlying
investment policy of an Investment Fund, we will notify the appropriate persons
as required by law. We may make other changes that do not reduce any Cash Value,
annuity benefit, Retirement Account Value or other accrued rights or benefits.
THE HUDSON RIVER TRUST
The Hudson River Trust is an open end, diversified management investment
company, more commonly called a mutual fund. As a "series" type of mutual fund,
it issues several different series of stock, each of which relates to a
different Portfolio of the Trust. The Trust commenced operations in January 1976
with a predecessor of its 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.
More detailed information about the Trust, its investment objectives, policies,
restrictions, risks, expenses and other aspects of its operations, appears in
its prospectus which is attached, or in its statement of additional information.
21
<PAGE>
THE HUDSON RIVER 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. On December 31, 1996, Alliance was managing over $182.8 billion in
assets. Alliance acts as an 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 HUDSON RIVER TRUST'S PORTFOLIOS
Each Portfolio has a different investment objective which it tries to achieve by
following separate investment policies. The policies and objectives of each
Portfolio will affect its return and its risks. There is no guarantee that these
objectives will be achieved.
The policies and objectives of The Hudson River Trust's Portfolios are as
follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT POLICY OBJECTIVE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ALLIANCE MONEY MARKET... Primarily high quality short-term money market High level of current income while
instruments preserving assets and
maintaining liquidity
ALLIANCE INTERMEDIATE Primarily debt Securities issued or guaranteed by the High current income consistent with
GOVERNMENT SECURITIES... U.S. Government, its agencies and instrumentalities. relative stability of principal
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 QUALITY BOND... Primarily investment grade fixed income securities High current income consistent with
preservation of capital
ALLIANCE HIGH Primarily a diversified mix of high yield, fixed-income High return by maximizing current
YIELD................... securities involving greater volatility of price and income and, to the extent
risk of principal and income than high quality consistent with that objective,
objective, fixed-income securities. The medium and capital appreciation
lower quality debt securities in which the Portfolio
may invest are known as "junk bonds"
ALLIANCE GROWTH & Primarily income producing common stocks and securities High total return through a
INCOME.................. convertible into common stocks combination of current
appreciation
ALLIANCE EQUITY INDEX... Selected securities in the S&P 500 Index (the "Index") Total return performance (before
which the advisor believes will, in the aggregate, trust and Separate Account
approximate the performance results of the Index annual expenses) that
approximates the
investment performance of the
Index (including reinvestment
of dividends), at risk level
consistent with that of the
Index
ALLIANCE COMMON STOCK... Primarily common stock and other equity-type instruments Long-term growth of capital and
increasing income
ALLIANCE GLOBAL......... Primarily equity securities of non-United States as well Long-term growth of capital
as United States companies
ALLIANCE INTERNATIONAL.. Primarily equity securities selected principally to Long-term growth of capital
permit participation in non-United States companies
with prospects for growth
</TABLE>
- --------------------------------------------------------------------------------
22
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT POLICY OBJECTIVE
<S> <C> <C>
ALLIANCE AGGRESSIVE Primarily common stocks and other equity-type securities Long-term growth of capital
STOCK................... issued by medium and other smaller sized companies
with strong growth potential
ALLIANCE SMALL CAP Primarily U.S. common stock and other equity-type Long-term growth of capital
GROWTH*................. securities issued by smaller companies with favorable
growth prospects.
ALLIANCE ASSET ALLOCATION SERIES:
ALLIANCE CONSERVATIVE Diversified mix of publicly-traded, fixed-income and High total return without, in the
INVESTORS............... equity securities; asset mix and security selection adviser's opinion, undue risk to
are primarily based upon factors expected to principal
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 debt securities High return through a combination
BALANCED................ and high quality money market instruments. The of current income and capital
Portfolio is generally expected to hold 50% of its appreciation
assets in equity securities and 50%
in fixed income securities.
ALLIANCE GROWTH Diversified mix of publicly-traded, fixed-income and High total return consistent with
INVESTORS............... equity securities; asset mix and security selection the adviser's determination of
based upon factors expected to increase reasonable risk
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>
- --------------------------------------------------------------------------------
* The Alliance Small Cap Growth Portfolio was established on May 1, 1997 and
will become available under the Momentum Plus Program in early June, 1997.
23
<PAGE>
- --------------------------------------------------------------------------------
PART 4: THE GUARANTEED INTEREST ACCOUNT
- --------------------------------------------------------------------------------
You may allocate some or all of your Retirement Account Value to the Guaranteed
Interest Account if this Investment Option is available under your Employer's
plan. The Guaranteed Interest Account is part of our general account. The
general account supports all of our insurance and annuity guarantees, as well as
our general obligations. We are subject to regulation and supervision with
respect to our general account by the Insurance Department of the State of New
York and to the insurance laws and regulations of all jurisdictions where we are
authorized to do business. Because of applicable exemptive and exclusionary
provisions, interests in the general account have not been registered under the
Securities Act of 1933 (1933 ACT), nor is the general account an investment
company under the 1940 Act. Accordingly, neither the general account, the
Guaranteed Interest Account nor any interests therein are subject to regulation
under the 1933 Act or the 1940 Act. We have been advised that the staff of the
SEC has not made a review of the disclosures that are included in the prospectus
for your information and that relate to the general account and the Guaranteed
Interest Account. These disclosures, however, may be subject to certain
generally applicable provisions of the Federal securities laws relating to the
accuracy and completeness of statements made in prospectuses.
The amount that a Participant has in the Guaranteed Interest Account at any time
is equal to the sum of all contributions, transfers and loan repayments
(including principal and interest) that have been allocated to the Guaranteed
Interest Account plus interest, less the sum of all amounts that have been
withdrawn, borrowed, transferred or deducted.
We declare a yearly guaranteed interest rate which will remain in effect
throughout the next year. We guarantee that the yearly guaranteed interest rate
will never be less than 3%. Allocations to the Guaranteed Interest Account are
guaranteed to earn interest at least equal to the yearly guaranteed interest
rate. The guaranteed interest rate for 1997 and 1998 is 4% for all Participants.
We may credit additional amounts of interest at our discretion. We currently
declare a quarterly interest rate that will not be lower than the yearly
guaranteed interest rate. The current quarterly rate applies to all amounts in
the Guaranteed Interest Account.
We can discontinue our practice of declaring quarterly rates at our discretion.
We also reserve the right to declare rates that are based upon when amounts were
credited to the Account or the date your Employer's plan enrolled under the
Contract.
EFFECTS OF PLAN OR CONTRACT TERMINATION
Retirement Account Values in the Guaranteed Interest Account will generally be
paid in six annual installments when a withdrawal is made on behalf of a
Terminated Plan Participant or following a Contract Termination. However, when
Contract Termination occurs, the employer has the option of having amounts in
the Guaranteed Interest Account paid in installments or immediately receiving a
lump sum payment, subject to a Market Value Adjustment (discussed below).
Withdrawals made as a result of the Participant's death, attainment of the
normal retirement age under the Employer's plan, disability, separation from
service, or to purchase a life contingent annuity distribution option or satisfy
the Code's minimum distribution requirements applicable after the Participant
attains age 70 1/2 are not subject to the installment payout (or a Market Value
Adjustment). Amounts payable in installments will not be subject to a contingent
withdrawal charge.
Once installment payments commence following a Contract Termination, funds may
not be transferred from, or applied to, the Guaranteed Interest Account.
Transfers out of the Guaranteed Interest Account are also restricted for
Terminated Plan Participants once we receive notice of a Plan Termination
(Employers and Plan Trustees are required to give us such notice 90 days in
advance of a Plan Termination). See "Transfers" in Part 5.
There may be circumstances under which we will make a lump sum payment rather
than make installment payments as described above. For example, we will make a
lump sum payment and impose a Market Value Adjustment to reduce the Retirement
Account Value when there are relatively few Participants remaining following a
Plan Termination.
To determine the Market Value Adjustment, we calculate the amount of the market
value change (which may be positive or negative) for each calendar quarter that
your Employer's plan held Retirement Account Values in the Guaranteed
24
<PAGE>
Interest Account (each a "Quarterly Generation"). To determine the amount of
each market value change for each Quarterly Generation:
o We multiply the Employer plan's net cash flow in the Guaranteed Interest
Account (contributions plus transfers in minus withdrawals minus transfers
out minus fees) for the given Quarterly Generation by the difference between
the interest rate of a 5-year U.S. Treasury note on the Calculation Date and
the average interest rate on 5-year U.S. Treasury notes during the Quarterly
Generation. The CALCULATION DATE will be the fifth Business Day prior to the
date the withdrawal is paid. Since we calculate the Market Value Adjustment
based on the cash flow of your Employer's plan, this means that actions taken
by other Participants (e.g., transfers, withdrawals, etc.) can effect the
amount of the Market Value Adjustment applied to your withdrawal.
o We then multiply by a fraction equal to the number of calendar days from the
date of the withdrawal to the maturity date for the given Quarterly
Generation over 365. The result is the amount of the market value change for
a Quarterly Generation.
We then add together the amount of each market value change for each Quarterly
Generation and divide by the total amount of Retirement Account Values held in
the Guaranteed Interest Account under your Employer's plan on the date the with-
drawal is made. If the sum of these market value changes is negative, then the
Market Value Adjustment is zero. If it is positive, this is the Market Value
Adjustment that is imposed, subject to the following conditions:
1) the Market Value Adjustment may not
exceed 7%;
2) imposition of the Market Value Adjustment will never result in the
forfeiture of amounts contributed to the Guaranteed Interest Account on
behalf of a Participant plus an amount of credited interest based upon
the minimum guaranteed interest rate of 3%; and
3) if the contingent withdrawal charge is still in effect, the Market Value
Adjustment must exceed the amount of the contingent withdrawal charge
applicable to the amount withdrawn from the Guaranteed Interest Account
(otherwise, the contingent withdrawal charge will be imposed in lieu of
the Market Value Adjustment).
The Market Value Adjustment will be reduced accordingly if either of the first
two conditions are not satisfied.
The Momentum Plus Contract prohibits the Employer or Plan Trustee from
influencing Participants' decisions with regard to allocating, transferring or
withdrawing amounts to or from the Guaranteed Interest Account. In the event of
noncompliance with this provision of the Contract, Equitable Life:
(a) reserves the right to decline further requests for transfers to or from
the Guaranteed Interest Account; and/or
(b) may deem that a Contract Termination, with respect to the Employer Plan's
participation in the Contract, has occurred.
25
<PAGE>
- -------------------------------------------------------------------------------
PART 5: PROVISIONS OF THE CONTRACT
AND SERVICES WE PROVIDE
- -------------------------------------------------------------------------------
Bear in mind that the provisions of your plan or applicable laws or regulations
may be more restrictive than the Contract. We reserve the right to amend the
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 Contract to the Code, ERISA and applicable regulations.
SELECTING INVESTMENT OPTIONS (EMPLOYERS AND PLAN TRUSTEES ONLY)
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 High Yield, Alliance Quality Bond
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" below. Lastly, you, as Employer,
must elect the Guaranteed Interest Account as a funding option if you only
select 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.
CONTRIBUTIONS
Contributions may be made at any time and may be made only by the Employer or
Plan Trustee by either wire transfer or check. Participants should not send
contributions directly to Equitable Life. There is no minimum contribution.
All contributions made by check must be drawn on a bank in the U.S., in U.S.
dollars and made payable to Equitable Life. All checks are subject to
collection. Contributions are credited as of the Transaction Date, if they are
accompanied by properly completed forms. Failure to use the proper form, or to
complete the form properly, may result in a delay in crediting contributions.
Employers should send all contributions to Equitable Life at the Processing
Office.
We allocate contributions to the Investment Options according to the allocation
percentages on the Participant's enrollment form or as later changed. Under
participant-directed plans, you, as Participant, will provide those allocation
percentages. In trustee-directed plans, the Plan Trustee will provide those
percentages. Employee and Employer contributions may be allocated in different
percentages. Some plans may be participant-directed only with respect to
employee post-tax and salary-deferral contributions.
If we receive your initial contribution before we receive your signed enrollment
form or your allocation instructions on the form are incomplete (e.g., do not
add up to 100%), we will allocate all or a portion of your initial contribution
to the Alliance Money Market Fund (if that Fund has been selected as an
available Investment Option under your Employer's Plan). 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 the signed form or
corrected instructions be forwarded to us. If we do not receive the 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 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.
You should review your confirmation notices carefully to determine whether your
contributions have been allocated correctly.
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
26
<PAGE>
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 at the end of the Valuation Period in which we receive the
contribution at our Processing Office. Contributions allocated to the Guaranteed
Interest Account become part of our General Account 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 of the Separate
Account. See Part 4: "The Guaranteed Interest Account."
The amount you have in an Investment Fund at any time is equal to the number of
Accumulation Units you have in that Investment Fund times the Accumulation Unit
Value for the Investment Fund for that date. The number of Accumulation Units in
an Investment Fund at any time is equal to the sum of Accumulation Units
purchased by contributions, transfers and loan repayments (including principal
and interest) less the sum of Accumulation Units redeemed for withdrawals,
transfers, loans or deductions for charges.
The number of Accumulation Units purchased or sold in any Investment Fund is
equal to the dollar amount of the transaction divided by the Accumulation Unit
Value for the Investment Fund for the applicable Valuation Period. For each
Valuation Period, the Accumulation Unit Value is the Accumulation Unit Value at
the end of the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Valuation Period.
The number of Accumulation Units will not vary because of any later change in
the Accumulation Unit Value. The Accumulation Unit Value varies with the
investment performance of the corresponding Portfolios of The Hudson River
Trust, which in turn reflects the investment income and realized and unrealized
capital gains and losses of the Portfolios, as well as The Hudson River Trust
fees and expenses. The Accumulation Unit Value is also stated after deduction of
the Separate Account asset charges relating to the Contract. A description of
the computation of the Accumulation Unit Value is found in the SAI.
TRANSFERS
Subject to certain restrictions, the Contract permits transfers of all or a
portion of Retirement Account Value among the Investment Options at any time.
Your Employer's plan may, however, impose restrictions on transfers. We also
offer an automatic transfer service described under "Investment Simplifier:
Automatic Transfer Service" below.
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.
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 to any other Fund. During any Transfer Period the
maximum amount that may be transferred from the Guaranteed Interest Account is
an amount equal to 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 and (ii) the total of all
amounts you transferred out of the Guaranteed Interest Account during that 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.
No transfers out of the Guaranteed Interest Account will be allowed for 90 days
from the date we receive notice of a Plan Termination. When the 90 days has
elapsed, the transfer limitation described above will go into effect (regardless
of which Investment Funds are available under your Employer's plan).
Transfers out of the Guaranteed Interest Account that are 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.
27
<PAGE>
If assets have been transferred to the Contract from another funding vehicle by
the Employer or Plan Trustee, you may, for the remainder of that calendar year,
transfer up to 25% of the amount that is initially allocated to the Guaranteed
Interest Account on your behalf.
INVESTMENT SIMPLIFIER: AUTOMATIC TRANSFER SERVICE
Your Employer can elect to provide two automatic transfer options out of the
Guaranteed Interest Account: the Fixed-Dollar Option and the Interest Sweep
Option. The Fixed-Dollar Option is subject to the transfer limitation described
above. These automatic transfers will continue, however, during the 90-day
period that transfers out of the Guaranteed Interest Account are stopped
following notice of a Plan Termination.
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 on a monthly basis. You can either specify the number of
monthly transfers or instruct us to continue to make monthly transfers until
amounts in the Guaranteed Interest Account are depleted. In order to elect this
option you must have a minimum amount of $5,000 in the Guaranteed Interest
Account on the date we receive your election form and you must elect to transfer
at least $50 per month. Under the Interest Sweep Option, the amount transferred
each month will equal the amount of interest that has been credited to amounts
you have in the Guaranteed Interest Account from the last Business Day of the
prior month to the last Business Day of the current month. To be eligible for
this option you must have at least $7,500 in the Guaranteed Interest Account on
the date we receive your election and on the last Business Day of each month
thereafter.
You may elect either option by filing an election form with your Employer or
Plan Trustee. The first monthly transfer will occur on the last Business Day of
the month in which we receive your election form at our Processing Office.
Automatic transfers will terminate:
o Under the Fixed-Dollar Option, when either the number of designated monthly
transfers have been completed or the amount you have in the Guaranteed
Interest Account has been depleted, as applicable; or
o Under the Interest Sweep 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, the date the Participant's participation is terminated,
or on the date of Contract termination.
WITHDRAWAL FOR PLAN LOANS
The 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, as the Employer, are transferring plan assets to the Momentum Plus
Program, outstanding plan loans may also be transferred to the Contract. We
refer to these loans as "takeover loans." Repayments of takeover loans will be
allocated to the Default Option.
If you are a partner who owns more than 10% of the business or a
shareholder-employee of an S Corporation who owns more than 5% of the business,
you presently may not borrow from your vested Retirement Account Value without
first obtaining a prohibited transaction exemption from the Department of Labor
(DOL). Consult with your attorney or tax advisor regarding the advisability and
procedures for obtaining such an exemption.
Participants should apply for a plan loan through their Employer or the Plan
Trustee, as applicable. Prior to the making of any plan loan, the Employer or
Plan Trustee, 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
advisors 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. However, you may not have both
takeover loans and plan loans outstanding simultaneously. Under the 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
28
<PAGE>
loan is to be deducted when you request the loan. The loan term must comply with
applicable law. See "Part 8: Federal Tax and ERISA Matters: Certain Rules
Applicable to Plan Loans."
Certain charges may be deducted while an Active Loan is outstanding. See "Plan
Loan Charges" in Part 6.
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. 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. It is the responsibility
of each Employer or Plan Trustee to determine the interest rate applicable to
each loan.
Plan loan repayments covering interest and principal will be due in accordance
with the repayment schedule determined in accordance with the terms of the
Employer's plan. Participants should send plan loan repayments to the plan
administrator and not to Equitable Life. All plan loan payments made by the plan
administrator to us must be made by check or wire transfer. Checks must be drawn
on a bank in the U.S., in U.S. dollars, made payable to Equitable Life and are
subject to collection.
A plan loan may be prepaid in whole or in part at any time. Any payments we
receive will first be applied to interest, with the balance applied to repayment
of the loan.
Plan loan repayments will be allocated to the Investment Options in accordance
with the same allocation instructions used in making the loan. However, a
Participant may elect, in writing, to override these instructions and allocate
all plan loan repayments to the Guaranteed Interest Account.
A plan loan will be in default if the amount of any scheduled repayment is not
received by us within 90 days of its due date, or if the Participant dies or
participation under the Contract is terminated. See "Federal Tax and ERISA
Matters: Certain Rules Applicable to Plan Loans" in Part 8, for the consequences
of defaulting a loan and other applicable tax matters.
WITHDRAWALS AND CONTRACT TERMINATION
Subject to any restrictions in your Employer's plan, the 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. 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 generally will 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 plan's entire participation
under the Contract by writing to our Processing Office. In addition, if your
Employer's Plan is found not to qualify under the Code, or, if you, as Employer
or Plan Trustee, fail to provide us with the Participant data necessary to
administer the Contract we may return the plan assets to the Employer or Plan
Trustee.
Certain withdrawals or amounts payable following a Contract Termination may be
subject to a contingent withdrawal charge, an installment payout or a Market
Value Adjustment. See "Contingent Withdrawal Charge" in Part 6 and "Effects of
Plan or Contract Termination" in Part 4.
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, we are directed under these circumstances to withdraw the unvested
portion of the Retirement Account Value and deposit such amount in a Forfeiture
Account, which is to be allocated to the Default Option.
We will re-allocate amounts in the Forfeiture Account as contributions in
accordance with instructions received by the Employer or Plan Trustee. Special
rules apply to the application of the contingent withdrawal charge when
forfeitures have occurred. See "Contingent Withdrawal Charge" in Part 6.
DISTRIBUTION OPTIONS
The 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 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
29
<PAGE>
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 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."
ANNUITY DISTRIBUTION OPTIONS
The annuity distribution options available under the 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 certain period. The
period is usually 5, 10, 15 or 20 years.
o LIFE ANNUITY-REFUND CERTAIN: This annuity form guarantees payments to you for
the rest of your life. In addition, if you die before the amount applied to
purchase this annuity option has been recovered, payments will continue to
your beneficiary until that amount has been recovered. This option is
available only as a fixed annuity.
o PERIOD CERTAIN ANNUITY: This annuity form guarantees payments to you for a
specific period of time, usually 5, 10, 15 or 20 years. If you die before the
period certain has ended, payments will continue to your beneficiary for the
balance of the period certain.
o QUALIFIED JOINT AND SURVIVOR LIFE ANNUITY: This annuity form guarantees life
income to you and, after your death, continuation of income to your surviving
spouse. Generally, unless married Participants elect otherwise with the
written consent of their spouse, this will be the normal form of annuity
payment for plans such as the Master Plan and Trust. See Part 8: "Federal Tax
and ERISA Matters."
We offer other forms not outlined here. Your Equitable Life Representative can
provide details.
All of the life annuity distribution options outlined above (with the exception
of Qualified Joint and Survivor Life Annuity) are available as either Single or
Joint life annuities.
The chart below shows the relative financial value of the different annuity
options, based on the rates for fixed annuities that are currently guaranteed in
the Contract. We have reserved the right to change the actuarial basis for these
rates at any time after the fifth anniversary from the date the Contract is
issued and no earlier than five years from the date of the last change
thereafter. Contributions received up to the date of a change, and amounts
already applied to annuity distribution options, would not be affected by the
change. The example assumes that at the time payments commence, both the
annuitant and the joint annuitant are 65, and the amount used to purchase the
annuity is $100,000. Certain legal requirements may limit the forms of annuity
available to you. Values do not reflect any state premium taxes or contingent
withdrawal charges.
- ------------------------------------------------------------
RATE
PER
AMOUNT TO BE $1.00
APPLIED ON OF MONTHLY
ANNUITY MONTHLY ANNUITY
ANNUITY FORM FORM ELECTED ANNUITY PROVIDED
- ------------------------------------------------------------
Life...................... $100,000 $207.42 $482.11
5 Year Certain Life....... 100,000 208.32 480.04
10 Year Certain Life...... 100,000 211.15 473.60
15 Year Certain Life...... 100,000 216.29 462.34
20 Year Certain Life...... 100,000 224.23 445.98
100% Joint & Survivor Life 100,000 243.17 411.23
75% Joint & Survivor Life. 100,000 234.24 426.92*
50% Joint & Survivor Life. 100,000 225.30 443.86*
100% Joint & Survivor--
5 Year Certain Life**... 100,000 243.19 411.20
100% Joint & Survivor--
10 Year Certain Life**.. 100,000 243.37 410.90
100% Joint & Survivor--
15 Year Certain Life**.. 100,000 244.03 409.79
100% Joint & Survivor--
20 Year Certain Life**.. 100,000 245.83 406.79
- -----------------------------------------------------------
*Represents the amount payable to the primary annuitant. A surviving joint
annuitant would receive the applicable percentage of the amount paid to the
primary annuitant.
** You may also elect a Joint and Survivor Annuity-Period Certain with a monthly
benefit payable to the surviving joint annuitant in any percentage between 50
and 100.
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
30
<PAGE>
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.
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 you
attain age 70 1/2 or, if later, the calendar year in which you retire from
service with the Employer sponsoring the Plan (the "required beginning date").
Subsequent distributions must be made by December 31st of each calendar year
(including the calendar year of your required beginning date). If the required
minimum distribution is not paid, you may be required to pay a penalty tax 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 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 filing 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 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 2 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. Electing this option does not restrict you from taking partial
withdrawals or subsequently electing an annuity distribution option.
The minimum check that will be sent is $300, or, if less, your Retirement
Account Value.
DEATH BENEFIT
Unless payments under an annuity distribution option have begun, the death
benefit is equal to the Retirement Account Value.
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 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 you die while a loan is outstanding, the loan will automatically default and
be subject to federal income tax as a plan distribution.
Your 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
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 and (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.
31
<PAGE>
If you die before your entire vested benefit has been distributed to you, the
remainder of your benefit will be payable to your beneficiary.
PAYMENTS OF PROCEEDS
Except for amounts in the Guaranteed Interest Account that are payable in
installments, payments of proceeds will generally be made within seven days of
the Transaction Date.
Payments or applications of proceeds from the In- vestment 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 are 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 or transfer of any portion of your Retirement Account Value in the
Guaranteed Interest Account for up to six months while you are living.
PLAN RECORDKEEPING SERVICES
Equitable offers two plan recordkeeping options, one of which must be elected
for each plan. Employers can elect our basic plan recordkeeping service option,
which includes:
o Accounting by Participant;
o Accounting by Source;
o Provision of annual 5500 series Schedule A report information for use in
making the plan's annual Report to the Internal Revenue Service ("IRS") and
DOL; and
o Plan loan processing, if applicable.
As an added service under our Basic Recordkeeping Service, Employers may enter
into a written agreement with us whereby we, based on information submitted by
Employers, direct distribution of plan benefits and withdrawals to participants,
including tax withholding and reporting to the IRS. The written agreement will
specify the fees for such service.
The Momentum Plus Program also offers a full service plan recordkeeping option.
This option is only available to Employers who have adopted the Master Plan and
Trust. If this option is chosen, we will provide the following plan
recordkeeping services in addition to the services described above:
o Master Plan and Trust documents approved by the Internal Revenue Service
(IRS);
o Assistance in interpreting the Master Plan and Trust, including plan
installation and ongoing Administrative support;
o Assistance in annual reporting with the IRS and DOL;
o Plan administration manual and forms (including withdrawal, transfer, loan
processing, and account allocation forms);
o Performance of vesting calculations;
o Performance of special non-discrimination tests applicable to Code Section
401(k) plans;
o Tracking of hardship withdrawal amounts in Code Section 401(k) plans; and
o Direct distribution of plan benefits and withdrawals to Participants,
including tax withholding and reporting to the IRS.
Any additional services that Equitable Life will provide are indicated in the
plan recordkeeping services agreement. This agreement is required for Employers
or Plan Trustees who elect the full service recordkeeping option and specifies
the fees for the services to be provided. See "Deductions and Charges: Charge
for Plan Recordkeeping Services" in Part 6.
32
<PAGE>
- --------------------------------------------------------------------------------
PART 6: DEDUCTIONS AND CHARGES
- --------------------------------------------------------------------------------
CHARGE TO INVESTMENT FUNDS
We make a daily charge against the assets held in each of the Separate Account
Investment Funds. This charge is reflected in the Accumulation Unit Values for
the particular Investment Fund and covers expense risks, mortality risks and
expenses. The charge is made at an annual rate guaranteed not to exceed a total
of 1.35% for each Investment Fund. The charge is .50% for mortality risks, .60%
for expense risks and .25% for expenses. The expense risk we assume is the risk
that, over time, our actual expense of administering the Contract may exceed the
amounts realized from the quarterly administrative expense charge, the Separate
Account expense charge and the loan charges. The mortality risk we assume is
that annuitants, as a group, may live longer than anticipated under annuity
options that involve life contingencies. The charge for expenses is designed to
reimburse us for our costs in providing administrative services in connection
with the Contract, and is not designed to include an element of profit.
Part of the respective charges for expense risks and mortality risks may be
considered to be an indirect reimbursement for certain sales and promotional
expenses relating to the Contract to the extent that the charges are not needed
to meet the actual expenses incurred. These asset charges do not apply to the
Guaranteed Interest Account.
In particular cases, we may reduce these risk and expense charges if the
participation of the plan in the Contract is effected in a manner which results
in savings of sales or administrative expenses.
THE HUDSON RIVER TRUST CHARGES TO
PORTFOLIOS
Investment advisory fees charged daily against assets of The Hudson River Trust,
direct operating expenses of The Hudson River Trust (such as trustees' fees,
expenses of independent auditors and legal counsel, bank and custodian charges
and liability insurance), and certain investment-related expenses of The Hudson
River Trust (such as brokerage commissions and other expenses related to the
purchase and sale of securities), are reflected in each Portfolio's daily share
price. The investment advisory fees paid annually by the Portfolios are listed
below. They cannot be changed without a vote by shareholders. See "Part 7:
Voting Rights."
<TABLE>
<CAPTION>
DAILY AVERAGE NET ASSETS
------------------------------------------
FIRST 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
- ------------------------------------------------------------------
</TABLE>
* 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.
Investment advisory fees are established under the investment advisory
agreements between the Trust and its investment adviser, Alliance. All of these
fees and expenses are described more fully in the Trust's prospectus. Since the
Trust shares are purchased at their net asset value, these fees and expenses
are, in effect, passed on to the Separate Account and are
33
<PAGE>
reflected in the Accumulation Unit Values for the Investment Funds.
QUARTERLY ADMINISTRATIVE CHARGE
On the last Business Day of each calendar quarter we deduct from your Retirement
Account Value an administrative charge which is currently equal to $7.50 or, if
less, .50% of the total of your Retirement Account Value plus the value of any
Active Loan. For accounts of participants in plans that, prior to October 1,
1993, were using EQUI-VEST Corporate TRUSTEED, EQUI-VEST Unincorporated
TRUSTEED, EQUI-VEST Annuitant-Owned HR-10 or Momentum as a funding vehicle, and
which trans-ferred assets to this Contract, the administrative charge will be
waived if the Retirement Account Value of the Momentum Plus account is at least
$25,000 on the last business day of each calendar quarter. This charge will be
prorated for the calendar quarter in which the Employer's plan enrolls under the
Contract. The charge will not be prorated, however, if a Participant enrolls
during any subsequent calendar quarter.
The 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.
We reserve the right to increase this charge upon 90 days written notice to
Employers and Plan Trustees if our administrative costs increase. We may also
reduce this charge under special circumstances. See "Special Circumstances"
below.
You, as Employer, may choose to have this quarterly administrative charge billed
to you directly. However, we reserve the right to deduct the charge from
Retirement Account Values if we do not receive the direct payment.
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 benefit if a
Participant elects to annuitize. We reserve the right to deduct any such charge
from each contribution or from withdrawals or upon Contract Termination. If we
have deducted any applicable tax charges from contributions we will not deduct
charges for the same taxes from withdrawals or upon Contract Termination or
application to an annuity distribution option. If, however, a tax is later
imposed upon us when you make a withdrawal from, terminate or annuitize the
Retirement Account Value, we reserve the right to deduct a charge at such time.
The current 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.
CHARGE FOR PLAN RECORDKEEPING SERVICES
The annual charge for the basic plan recordkeeping option is $300 for Employers
who elect this option (prorated in the first year). This charge will be billed
directly to the Employer. Employers may enter into a written agreement with
Equitable Life for direct distribution of plan benefits and withdrawals to
Participants, including tax withholding and reporting to the IRS. A $25 check
writing fee is currently charged by us on each check drawn. We reserve the right
to increase these charges upon 90 days written notice to the Employer or Plan
Trustee. We may also reduce these charges under special circumstances. See
"Special Circumstances" below.
There are additional charges if the Employer or Plan Trustee elects the full
service plan recordkeeping option offered by us. 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 Contract, we assess a sales charge under certain circumstances
described below. The contingent withdrawal charge does not apply after the
Employer's plan has participated in the Contract for five years.
As long as neither a Plan Termination nor a Contract Termination has occurred,
we will only assess a contingent withdrawal charge on in-service withdrawals
that are direct rollovers to an individual retirement account or another
qualified plan not funded by an Equitable Life contract and then, only if the
Employer's Plan has participated in the Contract for less than five years. All
other in-service withdrawals, including hardship withdrawals, are never subject
to a contingent withdrawal charge. If Plan Termination occurs in the first five
years that the plan has participated in the Contract, all in-service withdrawals
from the Investment Funds will be subject to a contingent withdrawal charge.
In-service withdrawals from the Guaranteed Interest Account will be subject to
the contingent withdrawal charge only if the Market Value Adjustment is less
than the contingent withdrawal charge. See "Effects of Plan or Contract
Termination" in Part 4. When Contract Termination occurs in the first five years
that the plan has participated in the Contract, a contingent withdrawal charge
34
<PAGE>
will apply to the surrendered amounts in the Investment Funds. Surrendered
amounts in the Guaranteed Interest Account will generally be paid in
installments. See "The Guaranteed Interest Account: Effects of Plan or Contract
Termination" in Part 4.
The contingent withdrawal charge is 6% of the amount withdrawn or, if less, 8.5%
of contributions made on behalf of the Participant.
No contingent withdrawal 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, retire or become disabled;
o you have separated from service (see Section 402(d)(4)(A) of the Code as in
effect under the Tax Reform Act of 1986);
o the amount withdrawn is intended to satisfy the Code's minimum distribution
requirements (Section 401(a)(9)) applicable after you turn age 70 1/2;
o the amount withdrawn is the result of a request for a refund of "excess
contributions" or "excess aggregate contributions" as such terms are defined
in Sections 401(k)(8)(B) and 401(m)(6)(B), respectively, of the Code,
including any gains or losses, and the withdrawal is made no later than the
end of the plan year following the plan year for which such contributions
were made;
o the amount withdrawn is defined as a "hardship withdrawal" pursuant to Treas.
Reg. 1.401(k)-1(d)(2);
o the amount withdrawn is a request for a refund of "excess deferrals" as such
term is defined in Section 402(g)(2) of the Code, including any gains or
losses, provided the withdrawal is made no later than April 15, following the
calendar year in which such excess deferrals were made;
o the amount withdrawn is a request for a refund of contributions made due to
mistake of fact made in good faith, provided the withdrawal is made within 12
months of the date such mistake of fact contributions were made and any
earnings attributable to such contributions are not included in such
withdrawal; or
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.
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.
If a portion of a Participant's Retirement Account Value is forfeited under the
terms of the plan, we will not assess a contingent withdrawal charge against
unvested amounts. However, if you, as the Employer or Plan Trustee, withdraw the
forfeited amount from the Contract before it is reallocated to other
Participants, you will incur the contingent withdrawal charge at that time.
We may reduce the contingent withdrawal charge under special circumstances. See
"Special Circumstances" below.
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.
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.
SPECIAL CIRCUMSTANCES
Subject to any necessary governmental or regulatory approvals, the contingent
withdrawal charge, quarterly administrative charge, separate account annual
expense 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 administration functions by the Employer or plan administrator, frequency of
contributions or the use of automated techniques in transmitting data.
There may be other circumstances, of which we are presently unaware, which could
result in reduced sales or administrative expenses. If, after consideration of
such factors, we determine that participation under the Contract by a particular
plan would result in reduced or eliminated sales or administrative expenses,
such a plan would be entitled to a reduction or elimination of the relevant
charge. In no event would such a reduction or elimination be permitted where it
would be unfairly discriminatory to any person.
35
<PAGE>
- -------------------------------------------------------------------------------
PART 7: VOTING RIGHTS
- -------------------------------------------------------------------------------
HUDSON RIVER TRUST VOTING RIGHTS
As explained previously, contributions allocated to the Investment Funds are
invested in shares of the corresponding Portfolios of The Hudson River Trust.
Since we own the assets of the Separate Account, we are the legal owner of the
shares and, as such, have the right to vote on certain matters. Among other
things, we may vote:
o to elect The Hudson River Trust's Board of Trustees;
o to ratify the selection of independent auditors for The Hudson River Trust;
and
o on any other matters described in The Hudson River Trust's current prospectus
or requiring a vote by shareholders under the 1940 Act.
Because The Hudson River Trust is a Massachusetts business trust, annual
meetings are not required. Whenever a shareholder vote is taken, we will give
Participants or Plan Trustees, as applicable, the opportunity to instruct us how
to vote the number of shares attributable to the Retirement Account Values. If
we do not receive instructions for all the shares, we will vote the shares of a
Portfolio for which no instructions have been received in the same proportion as
we vote shares of that Portfolio for which we have received instructions. We
will also vote any shares that we are entitled to vote directly because of
amounts we have in an Investment Fund in the same proportions that all
persons entitled with an interest in such shares vote.
Each share of The Hudson River Trust is entitled to one vote. Fractional shares
will be counted. Voting generally is on a Portfolio-by-Portfolio basis except
that shares will be voted on an aggregate basis when universal matters, such as
election of Trustees and ratification of independent auditors, are voted upon.
However, if the Trustees determine that shareholders in a Portfolio are not
affected by a particular matter, then such shareholders generally would not be
entitled to vote on that matter.
SEPARATE ACCOUNT VOTING RIGHTS
Under the 1940 Act, certain actions (such as some of those described under
"Changes in Applicable Law," below) may require Participant approval. In that
case, Participants will be entitled to one vote for each Accumulation Unit they
have in the Investment Funds. We will cast votes attributable to any amounts we
have in the Investment Funds in the same proportion as votes cast by all persons
who participate in the Separate Account.
VOTING RIGHTS OF OTHERS
Currently, we control The Hudson River Trust. Shares of The Hudson River Trust
are held by other separate accounts of ours and by separate accounts of
insurance companies affiliated and unaffiliated with us. Shares held by these
separate accounts will probably be voted according to the instructions of the
owners of insurance policies and contracts issued by those insurance companies.
While this will dilute the effect of the voting instructions of Participants and
Plan Trustees, we currently do not foresee any disadvantages arising out of
this. The Hudson River Trust's Board of Trustees intends to monitor events in
order to identify any material irreconcilable conflicts that possibly may arise
and to determine what action, if any, should be taken in response. If we believe
that The Hudson River Trust's response to any of those events insufficiently
protects our Participants, we will see to it that appropriate action is taken to
protect Participants.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
Federal securities laws. To the extent that those laws or the regulations
promulgated under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
36
<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 advisor
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-qualifed 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
37
<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 ($9500 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,
38
<PAGE>
however, all post-tax contributions made prior to January 1, 1987 may be
withdrawn tax-free prior to withdrawing any taxable amounts.
As discussed below in "Certain Rules Applicable to Plan Loans," taking a loan or
failing to repay an outstanding loan as required may, in certain situations, be
treated as a taxable withdrawal.
Income Taxation of Annuity Payments
In the case of a distribution in the form of an annuity, the amount of each
annuity payment is treated as ordinary income except where the participant has a
cost basis in the annuity.
The cost basis is equal to the amount of 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
39
<PAGE>
specified exception or is rolled over into an IRA or other qualified plan. The
specified exceptions are for (a) distributions made on account of the
participant's death or disability, (b) distributions (which begin after
separation from service) in the form of a life annuity or substantially equal
periodic installments over the participant's life expectancy (or the joint life
expectancy of the participant and the beneficiary), (c) distributions due to
separation from active service after age 55 and (d) distributions used to pay
certain extraordinary medical expenses.
Federal Income Tax Withholding
Mandatory Federal income tax withholding at a 20% rate will apply to all
"eligible rollover distributions" unless the participant elects to have the
distribution directly rolled over to another qualified plan or IRA. See the
description above of "Eligible Rollover Distributions."
With respect to distributions that are not eligible rollover distributions,
Federal income tax must be withheld on the taxable portion of pension and
annuity payments, unless the recipient elects otherwise. The rate of withholding
will depend on the type of distribution and, in certain cases, the amount of the
distribution. Special rules may apply to foreign recipients, or United States
citizens residing outside the United States. If a recipient does not have
sufficient income tax withheld, or make sufficient estimated income tax
payments, the recipient may incur penalties under the estimated income tax
rules. Recipients should consult their tax advisers to determine whether they
should elect out of withholding.
Requests not to withhold Federal income tax must be made in writing prior to
receiving payments and submitted in accordance with the terms of the employer
plan. No election out of withholding is valid unless the recipient provides the
recipient's correct taxpayer identification number and a U.S. residence address.
State Income Tax Withholding
Certain states have indicated that pension and annuity withholding will apply to
payments made to residents of such states. In some states a recipient may elect
out-of-state income tax withholding, even if Federal withholding applies. It is
not clear whether such states may require mandatory withholding with respect to
eligible rollover distributions that are not rolled over (as described above
under "Eligible Rollover Distributions"). Contact your tax adviser to see how
state withholding may apply to your payment.
Distribution Requirements
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
40
<PAGE>
the present value of a hypothetical life annuity paying $160,000 a year.
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
Thefollowing 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" above.
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
41
<PAGE>
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.
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 Agents shall
not be responsible if a plan fails to meet the requirements of Section 404(c).
42
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
PART 1: ADDITIONAL INFORMATION ABOUT THE MOMENTUM PLUS
PROGRAM Page 3
PART 2: AUTOMATIC MINIMUM WITHDRAWAL OPTION Page 4
PART 3: THE REORGANIZATION Page 4
PART 4: ACCUMULATION UNIT VALUES Page 5
PART 5: DESCRIPTION OF SOURCES Page 5
PART 6: HOW WE DEDUCT THE QUARTERLY ADMINISTRATIVE CHARGE Page 6
PART 7: CUSTODIAN AND INDEPENDENT ACCOUNTANTS Page 6
PART 8: DISTRIBUTION Page 6
PART 9: ALLIANCE MONEY MARKET FUND YIELD INFORMATION Page 6
PART 10: OTHER YIELD INFORMATION Page 7
PART 11: LONG-TERM MARKET TRENDS Page 8
PART 12: FINANCIAL STATEMENTS Page 9
</TABLE>
HOW TO OBTAIN THE STATEMENT OF
ADDITIONAL INFORMATION
----------------------------------------------------------------------
| Send this request form to: |
| |
| Momentum Administrative Service |
| P. O. Box 2919 |
| New York, N.Y. 10116 |
|---------------------------------------------------------------------|
Please send me a Momentum Plus Statement of Additional Information
---------------------------------------------------------------------
Name
---------------------------------------------------------------------
Address
---------------------------------------------------------------------
City State Zip
43
<PAGE>
MOMENTUM PLUS
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1997
----------------------
GROUP VARIABLE ANNUITY CONTRACT
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 the Momentum Plus
Retirement Program, dated May 1, 1997, and any supplements to that prospectus.
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 1-800-528-0204, toll-free, 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.
888-1133 Cat No. 127302
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
PAGE
- --------------------------------------------------------------------------------
Part 1 Additional Information About the Momentum Plus Program 3
- --------------------------------------------------------------------------------
Part 2 Automatic Minimum Withdrawal Option 4
- --------------------------------------------------------------------------------
Part 3 The Reorganization 4
- --------------------------------------------------------------------------------
Part 4 Accumulation Unit Values 5
- --------------------------------------------------------------------------------
Part 5 Description of Sources 5
- --------------------------------------------------------------------------------
Part 6 How We Deduct the Quarterly Administrative Charge 6
- --------------------------------------------------------------------------------
Part 7 Custodian and Independent Accountants 6
- --------------------------------------------------------------------------------
Part 8 Distribution 6
- --------------------------------------------------------------------------------
Part 9 Alliance Money Market Fund Yield Information 6
- --------------------------------------------------------------------------------
Part 10 Other Alliance Yield Information 7
- --------------------------------------------------------------------------------
Part 11 Long-Term Market Trends 8
- --------------------------------------------------------------------------------
Part 12 Financial Statements 9
- --------------------------------------------------------------------------------
2
<PAGE>
- --------------------------------------------------------------------------------
PART 1 - ADDITIONAL INFORMATION ABOUT THE MOMENTUM PLUS 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 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
3
<PAGE>
purchase an annuity contract from us. The annuity contract will be purchased on
the Business Day we receive a properly completed form, and payments will
commence on that Business Day.
- --------------------------------------------------------------------------------
PART 2 - AUTOMATIC MINIMUM WITHDRAWAL OPTION
If you elect this feature designed for Participants age 70 1/2 or older,
described in Part 5 of 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.
The 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 the Automatic Minimum Withdrawal Option does not provide for all the
flexibility provided by Federal law. For example, Federal law permits you to
recalculate your life expectancy and not your spouse's and to choose the
joint-life expectancy method with a beneficiary other than your spouse. See your
tax advisor.
- --------------------------------------------------------------------------------
PART 3 - 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
Funds of the Separate Account. As described in "Part 2: Investment Performance"
in the prospectus, on September 6, 1991,
4
<PAGE>
all of the shares of The Equitable Trust held by these Funds were replaced by
shares of Portfolios of The Hudson River Trust corresponding to these Funds of
the Separate Account.
- --------------------------------------------------------------------------------
PART 4 - ACCUMULATION UNIT VALUES
An Accumulation Unit Value is determined at the end of each Valuation Period for
each of the Investment Funds. Other annuity contracts and certificates that
participate in the Separate Account also have their own accumulation unit values
for the Investment Funds which may be different from those for Momentum Plus.
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 for an Investment Fund for a
Valuation Period is
(a/b) - c where:
(a) is the value of the Investment Fund's shares of the corresponding Portfolio
at the end of the Valuation Period before giving effect to any amounts
allocated to or withdrawn from the Investment Fund for the Valuation Period.
For this purpose, we use the share value reported to us by The Hudson River
Trust. This share value is after deduction for investment advisory fees and
direct expenses of The Hudson River Trust.
(b) is the value of the Investment Fund's shares of the corresponding Portfolio
at the end of the preceding Valuation Period (after any amounts allocated or
withdrawn for that Valuation Period).
(c) is the daily asset charge for expenses of the Separate Account multiplied by
the number of calendar days in the Valuation Period.
- --------------------------------------------------------------------------------
PART 5 - DESCRIPTION OF SOURCES
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.
5
<PAGE>
- --------------------------------------------------------------------------------
PART 6 - HOW WE DEDUCT THE QUARTERLY ADMINISTRATIVE CHARGE
Unless a waiver applies or the charge is billed to your employer, each calendar
quarter we 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. 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 7 - 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 the reports of Price Waterhouse LLP,
independent accountants, given the authority of such firm as experts in
accounting and auditing.
- --------------------------------------------------------------------------------
PART 8 - DISTRIBUTION
EQ Financial Consultants, Inc. (EQF) 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 Hudson River 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. EQ Financial's principal business address is 1755 Broadway, New
York, New York 10019. The offering described in the prospectus will be made
through Equitable Life Agents who are registered representatives of EQF.
- --------------------------------------------------------------------------------
PART 9 - ALLIANCE MONEY MARKET FUND YIELD INFORMATION
The Alliance Money Market Fund calculates yield information for seven-day
periods. The seven-day current yield calculation is based on a hypothetical
Retirement Account Value with one Accumulation Unit at the beginning of the
period. To determine the seven-day rate of return, the net change in the
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
(explained below). This reduction is made to recognize the deduction of the
quarterly administrative charge, which is not reflected in the unit value. See
"Quarterly Administrative Charge" in Part 6 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
6
<PAGE>
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 Plus
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.
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. 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 Alliance Money Market Fund's seven-day current yield for the Contract was
3.67% for the period ended December 31, 1996. The effective yield 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
We calculate 30-day yield information for the Alliance Intermediate Government
Securities, Alliance Quality Bond and Alliance High Yield Funds. The 30-day rate
of return is derived from the actual change in the share value reported to us by
the Trust, exclusive of capital changes of the Investment Fund's shares of the
corresponding Portfolio during the period. The net change is reduced to reflect
a deduction for (a) the daily Separate Account asset charge for the expenses of
the Contract times the number of calendar days in the period, and (b) the annual
administrative charge.
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.
7
<PAGE>
- --------------------------------------------------------------------------------
PART 11 - 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 represent 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 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 Retirement Account Value to those
Investment Funds that invest in stocks.
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 8 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
Source: Ibbotson Associates, Inc. See discussion and information preceding and
following chart on next page.
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 Retirement Account Value to
those Investment Funds that invest in common stocks. The following graph
illustrates the monthly fluctuations in value of $1 based on monthly returns of
the Standard & Poor's 500 during 1990, a year that represents the volatility
inherent in the investment of common stocks.
GROWTH OF $1 INVESTED ON JANUARY 1, 1990
(VALUES AS OF THE 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 8 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
Source: Ibbotson Associates, Inc. See discussion and information preceding and
following chart on next page.
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.
8
<PAGE>
The rates of return illustrated do not represent returns of the Separate
Account. In addition, there is no assurance that the performance of the
Investment Funds will correspond to rates of return such as those illustrated in
the chart.
For a comparative illustration of performance results of the Investment Funds
(which reflect The Hudson River Trust and Separate Account charges), see
"Investment Performance" in Part 2 of the prospectus.
- --------------------------------------------------------------------------------
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: Stocks, Bonds, Bills and Inflation 1996 Yearbook(TM), Ibbotson
Associates, Inc., Chicago (annually updates work by Roger G. Ibbotson and Rex A.
Sinquefield). 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 1969-1996, 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 1969-1996;
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 12 - FINANCIAL STATEMENTS
The financial statements of Equitable Life included herein should be considered
only as bearing upon the ability of Equitable Life to meet its obligations under
the Contract.
9
<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. 33-58950 on April 29, 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. 33-58950 on April 29, 1996.
2. Not applicable.
3. (a) Sales Agreement among Equitable, Separate Account A and
Equitable Variable Insurance Company as principal
underwriter for The Hudson River Trust, previously filed
with this Registration Statement No. 33-58950 on March
2, 1993.
C-1
<PAGE>
(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. 33-58950 on March 24,
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. 33-58950 on
April 14, 1995.
(d) Sales Agreement among Equico, Equitable and Equitable's
Separate Account A, Separate Account 301 and Separate
Account No. 51 dated as of January 1, 1995, previously
filed with this Registration Statement No. 33-58950 on
April 14, 1995.
4. (a) Form of group annuity contract for IRC Section 401(a)
Plans, previously filed with this Registration Statement
No. 33-58950 on March 2, 1993.
(b) Form of Group Annuity Contract between Equitable and
Aurora Health Care, Inc. with respect to adding 403(b)
Plans, previously filed with this Registration Statement
No. 33-58950 on March 24, 1995.
(c) Form of Momentum Plus 457 group annuity contract,
previosly filed with this Registration Statement No.
33-58950 on July 12, 1996.
5. Form of application, previously filed with this Registration
Statement No. 33-58950 on March 2, 1993.
6. (a) Copy of the Restated Charter of Equitable, adopted
August 6, 1992, previously filed with this Registration
Statement No. 33-58950 on March 2, 1993.
(b) By-Laws of Equitable, as amended through July 22, 1992,
previously filed with this Registration Statement No.
33-58950 on March 2, 1993.
(c) Copy of the Certificate of Amendment to the Restated
Charter of Equitable, adopted November 18, 1993,
previously filed with this Registration Statement No.
33-58950 on April 29, 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 this Registration Statement No. 33-58950 on
August 12, 1993.
10. (a) Consent of Price Waterhouse LLP.
C-2
<PAGE>
11. Not applicable.
12. Not applicable.
13. (a) Schedule for computation of Money Market Fund Yield
quotations, previously filed with this Registration
Statement No. 33-58950 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. 33-58950 on April 28, 1994.
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
Dillion, 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 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 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%)
(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.)
Six-Pac G.P., Inc. (1990) (Georgia)
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 Structured Settlement Corporation (1996)
(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
Curisitor Alliance L.L.C. (Delaware)
Curisitor 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-15
<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
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
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 Commerce and France 99.8% by Societe Beaujon
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
</TABLE>
C-16
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
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 Reaseguros Spain 99.4% owned by Axa Aurora
Axa Vida SA de Seguros y Reaseguros Spain 89.82% owned by Aurora Polar 5% by Axa
Axa Gestion de Seguros y Reaseguros Spain 99.1% owned by Axa Aurora
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 Society U.K. 100% by Axa Equity & Law plc
Axa Equity & Law International U.K. 100% owned by Axa Equity & Law Life
Assurance Society
Axa Leven The Netherlands 100% by Axa Equity & Law Life 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
</TABLE>
C-17
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
Axa Insurance Inc. Canada 100% owned by Axa Canada and Axa Assurance
Inc.
Anglo Canada General Insurance Cy Canada 100% owned by Axa Canada
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 Pte Ltd Singapore 50%
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 USA U.S.A. 100% owned by Equitable 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 Association of Australia 100% owned by National Mutual Holdings Ltd
Australasia Ltd
National Mutual International Pty Ltd Australia 100% owned by National Mutual 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 National
Mutual Life Association of Australasia
Australian Casualty & Life Ltd Australia 100% owned by National Mutual Holdings Ltd
National Mutual Health Insurance Pty Ltd Australia 100% owned by National Mutual Holdings Ltd
</TABLE>
C-18
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
Axa Reassurance France 100% owned by Axa, Axa Assurances 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 Underwriters Inc. U.S.A. 80% owned by Axa America
(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
</TABLE>
C-19
<PAGE>
AXA FINANCIAL BUSINESS
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
Compagnie Financiere de Paris (C.F.P.) France 96.9%, (100% with Mutuals)
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 (C.E.C.) France 100% owned by C.F.P.
Fidei France 20.7% owned by C.F.P. and 10.8% by Axamur
Societe de Placements Selectionnes S.P.S. France 98.58% with Mutuals
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 Partenaires France 100% owned by Axa Asset Management Europe
Axa Asset Management Conseils France 100% owned by Axa Asset Management Europe
Axa Asset Management Distribution France 100% owned by Axa Asset Management Europe
Axa Equity & Law Home Loans U.K. 100% owned by Axa Equity & Law Plc
Axa Equity & Law Commercial Loans U.K. 100% owned by Axa Equity & Law Plc
</TABLE>
C-20
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
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 Management (Global) Ltd Australia 100% owned by National Holdings Ltd
National Mutual Funds Management North USA 100% by National Mutual Funds Management
America Holding Inc. (Global) Ltd.
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
</TABLE>
C-21
<PAGE>
AXA REAL ESTATE BUSINESS
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
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 companies 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 Participations France 100% owned by S.G.C.I.
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.
</TABLE>
C-22
<PAGE>
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
Centrexpo France 100% owned by C.P.P.
Fonciere de la Vile 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 Hongrie 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
</TABLE>
C-23
<PAGE>
OTHER AXA BUSINESS
<TABLE>
<CAPTION>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
<S> <C> <C>
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%
</TABLE>
C-24
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
NOTES
-----
1. The year of formation or acquisition and state or country of incorporation
of each affiliate is shown.
2. The chart omits certain relatively inactive special purpose real estate
subsidiaries, partnerships, and joint ventures formed to operate or develop
a single real estate property or a group of related properties, and certain
inactive name-holding corporations.
3. All ownership interests on the chart are 100% common stock ownership except:
(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-25
<PAGE>
Item 27. Number of Contractowners
------------------------
As of March 31, 1997, there were 78,713 certificates in force
under the Momentum Plus 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 that he or she, is or was a director or
officer of Equico.
(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 Separate
Account FP. EQ Financial's principal business address is
1755 Broadway, NY, NY 10019.
(b) See Item 25.
(c) Not applicable.
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
-------------------
C-26
<PAGE>
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 Contract.
Equitable bases its representation on its assessment 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-27
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Registrant certifies that it meets the requirements of
Securities Act Rule 485(b) for effectiveness of this amended Registration
Statement and has caused this amended Registration Statement to be signed on its
behalf, in the City and State of New York, on the 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
<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 amended Registration
Statement and has caused this amended Registration Statement to be signed on its
behalf, in the City and State of New York, on the 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 Executive
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
<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(a) Consent of Price Waterhouse LLP. EX-99.10a CONSENT
10(b) Powers of Attorney. EX-99.10b POW ATTY
27 Financial Data Schedule. EX-27
</TABLE>
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. 33-58950 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 Accountants" 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>
