Registration No.33-58950
Registration No. 811-1705
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 |_|
Pre-Effective Amendment No. |_|
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Post-Effective Amendment No. 11 |X|
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AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 68 |X|
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(Check appropriate box or boxes)
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SEPARATE ACCOUNT A
of
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Exact Name of Registrant)
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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
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MARY JOAN HOENE
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)
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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
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<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 April 30, 1999 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.
Title of Securities Being Registered:
Units of interest in Separate Account under variable annuity contracts.
<PAGE>
MOMENTUM PLUS
Retirement Planning from Equitable Life
May 1, 1999
Please read and keep this prospectus for future reference. It contains
important information that you should know before purchasing, or taking any
other action under your contract. Also, at the end of this prospectus you
will find attached the prospectuses for The Hudson River Trust and EQ
Advisors Trust, which contain important information about their Portfolios.
What is MOMENTUM PLUS? Momentum Plus is a group deferred annuity contract
issued by The Equitable Life Assurance Society of the United States. It is a
funding vehicle for employers who sponsor qualified retirement plans. The
Momentum Plus employer-sponsored retirement program includes 401(a), and
401(k) plans which are described in this prospectus. The Momentum Plus
program consists of a defined contribution master plan and trust ("Master
Plan and Trust") which we sponsor, and a pooled trust ("Pooled Trust") for
employers who prefer to use their own qualified retirement plan.
The contract provides for the accumulation of retirement savings and
for income. The contract offers death benefit protection. It also offers a
number of payout options. Contributions accumulate on a tax-deferred basis.
You may fund your plan by selecting any number of our investment options.
The investment options include 24 variable investment options and one
guaranteed interest option ("investment options").
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Variable Investment Options
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Fixed Income Options: Equity Options: Asset Allocation Options:
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Domestic Fixed Income Domestic Equity o Alliance
o Alliance Money Market o T. Rowe Price Equity Conservative Investors
o Alliance Intermediate Income o EQ/Putnam Balanced
Government Securities o EQ/Putnam Growth & o Alliance Balanced
o Alliance Quality Bond Income Value o Alliance Growth
o Alliance Growth & Investors
Aggressive Fixed Income Income o Merrill Lynch World
o Alliance High Yield o Alliance Equity Index Strategy
o Merrill Lynch Basic
Value Equity
o Alliance Common Stock
o MFS Research
International Equity
o Alliance Global
o Alliance International
o T. Rowe Price
International Stock
o Morgan Stanley
Emerging Markets
Equity
Aggressive Equity
o Alliance Aggressive
Stock
o Warburg Pincus Small
Company Value
o Alliance Small Cap
Growth
o MFS Emerging Growth
Companies
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You may allocate amounts to any of the variable investment options. They,
in turn, invest in a corresponding securities portfolio ("Portfolio") of The
Hudson River Trust, or EQ Advisors Trust. Your investment results in a variable
investment option will depend on the investment performance of the related
Portfolio. Each variable investment option is a subaccount of our Separate
Account A.
Guaranteed interest option. You also may allocate amounts to the
guaranteed interest option. This option is part of our general account and pays
interest at guaranteed rates.
A registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 1999, is a part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
Processing Office or calling 1-800-528-0204. The SAI has been incorporated by
reference into this prospectus. This prospectus and the SAI can also be obtained
from the SEC's website at http://www.sec.gov. The table of contents for the SAI
appears at the back of this prospectus.
The SEC has not approved or disapproved these securities or determined if
this prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other agency.
They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of principal.
[888-_____ Cat. No. 127657]
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CONTENTS OF THIS PROSPECTUS
Page in
Prospectus
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An Index of Key Words and Phrases............................................4
Who is Equitable Life?.......................................................3
Momentum Plus at a Glance -- Key Features....................................6
Fee Table....................................................................9
Examples..................................................................13
Condensed Financial Information.............................................14
Contract Features and Benefits..............................................15
How contributions can be made.............................................15
What are my investment options?...........................................16
Portfolios of The Hudson River Trust......................................16
Portfolios of EQ Advisors Trust...........................................18
Contract termination......................................................19
Effects of plan or contract termination...................................20
Selecting investment options (employers and plan trustees)................21
Allocating your contributions.............................................22
Determining Your Retirement Account Value...................................22
Your contract's value in the variable investment options..................22
Your contract's value in the guaranteed interest option...................23
Transferring and Accessing Your Money.......................................23
Withdrawals and termination...............................................26
Forfeitures...............................................................26
Plan loans................................................................26
When to expect payments...................................................28
Choosing your annuity payout options......................................28
Minimum Distributions (Automatic Minimum Withdrawal Option)
-- Over Age 70 1/2.....................................................31
The Momentum Plus Program...................................................32
Master Plan and Trust.....................................................32
Pooled Trust..............................................................33
Trustee...................................................................33
Employer's responsibilities...............................................33
Adopting the Momentum Plus program........................................34
Plan Recordkeeping Services.................................................34
Charges and Expenses........................................................35
Charges that Equitable Life deducts.......................................35
Charges that the trusts deduct............................................39
Charge reductions under special circumstances.............................40
Payment of Death Benefit....................................................40
Death benefit amount......................................................40
Distribution of the death benefit.........................................40
Beneficiary's payment options.............................................41
Tax Information.............................................................41
Tax aspects of contributions to a plan....................................43
Tax aspects of distributions from a plan..................................45
Certain rules applicable to plan loans....................................50
Impact of taxes to Equitable Life.........................................51
Certain rules applicable to plans designed to comply with section 404(c)
of ERISA...............................................................51
More Information............................................................52
About Separate Account A..................................................52
About The Hudson River Trust and EQ Advisors Trust........................53
About the general account.................................................53
Dates and prices at which contract events occur...........................53
About your voting rights..................................................54
About our Year 2000 progress..............................................56
About legal proceedings...................................................57
About our independent accountants.........................................57
Investment Performance......................................................57
Benchmarks................................................................58
Communicating performance data............................................69
Appendix I: Condensed Financial Information.................................71
Statement of Additional Information Table of Contents.......................75
"We," "our" and "us" refers to Equitable Life.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the employer, plan
trustee or the individual who participates in an employer's plan funded by the
Momentum Plus contract. This individual is referred to as the "participant."
AN INDEX OF KEY WORDS AND PHRASES
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This index should help you locate more information on the terms used in
this prospectus.
Page in Page in
Term Prospectus Term Prospectus
- ---- ---------- ---- ----------
active loan..................42 market value adjustment.......22
beneficiary..................44 Master Plan and Trust.........34
business day.................57 participant...................3
contract termination.........21 payout option ................30
contributions................17 plan termination..............22
default option...............17 Pooled Trust..................35
elective deferrals...........46 Portfolio.....................Cover
ERISA........................35 Processing Office.............5
fixed dollar option..........26 retirement account value......24
guaranteed interest SAI...........................Cover
option.....................cover TOPS..........................6
interest sweep option .......27 unit..........................24
investment options...........cover unit investment trust.........55
variable investment options ..cover
To make this prospectus easier to read, we sometimes use different words
than in the contract. This is illustrated below:
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Prospectus Contract
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variable investment options Investment Funds or Investment
Divisions
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units Accumulation Units
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Who is Equitable Life?
We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing business
since 1859. Equitable Life is a wholly owned subsidiary of The Equitable
Companies Incorporated ("Equitable Companies"), whose majority shareholder is
AXA, a French holding company for an international group of insurance and
related financial services companies. As a majority shareholder, and under its
other arrangements with Equitable Life and Equitable Life's parent, AXA
exercises significant influence over the operations and capital structure of
Equitable Life and its parent. No company other than Equitable Life, however,
has any legal responsibility to pay amounts that Equitable Life owes under the
contracts. During 1999, Equitable Companies plans to change its name to AXA
Financial, Inc.
Equitable Companies and its consolidated subsidiaries managed
approximately $347.5 billion in assets as of December 31, 1998. For over 100
years we have been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
How To Reach Us. You may communicate with our Processing Office as listed below
for any of the following purposes:
o For payments (e.g., contributions, o For payments (e.g., contributions,
loan payments, etc.) sent by loan payments, etc.) sent by Express
Regular Mail: Delivery:
Equitable Life First Chicago National Processing
Momentum Center
P.O. Box 13629 300 Harmon Meadow Boulevard, 3rd
Newark, NJ 07188-0629 Floor
Secaucus, NJ 07094
Attention: Momentum 13629
o For all other communications (e.g., o For all other communications (e.g.,
requests for transfers, requests for transfers, withdrawals,
withdrawals, or required notices) or required notices) sent by Express
sent by Regular Mail: Delivery:
Momentum Momentum
P.O. Box 2919 200 Plaza Drive HM-1
New York, NY 10116 Harmon Meadow
Secaucus, NJ 07094
o Reports we provide:
o written confirmation of financial transactions;
o annual statement of retirement account; and
o semiannual statement of retirement account.
o Telephone Operated Program Support ("TOPS") System
TOPS provides up-to-date information by touch-tone telephone. You may use
TOPS only if your employer elects this service. A personal identification
number ("PIN") will automatically be assigned to you when you enroll in your
plan. You can use TOPS to obtain information on:
o the daily unit values for the variable investment options;
o the number of units held in the variable investment options under your
account;
o your current retirement account value;
o your current allocation percentages;
You can also:
o change your allocation percentages and transfer money among the
variable investment options and the guaranteed interest option.
Your PIN number is required to use TOPS. We have established procedures to
reasonably confirm that the instructions communicated by telephone are genuine.
For example, we will require certain personal identification information before
we will act on telephone instructions and we will provide written confirmation
of instructions communicated by telephone. We reserve the right to terminate or
modify any telephone or automated transfer/withdrawal service we provide upon 90
days written notice.
TOPS is normally available seven days a week, 24 hours a day, by calling
toll-free 1-800-821-7777. Your subscriber number for this service is 867766. We
will also provide local TOPS telephone numbers. Of course, for reasons beyond
our control, the service may sometimes be unavailable.
Toll-free telephone service: You can reach our telephone consultants at
1-800-528-0204. Telephone consultants are available 8:30 a.m. until 7:00 p.m.,
Monday through Thursday and 8:30 a.m. until 5:00 p.m. on Fridays, Eastern Time,
on business days. You may obtain daily unit values for the variable investment
options and other information regarding Momentum Plus and your account.
Hearing or speech-impaired clients may obtain information regarding Momentum
Plus contracts by dialing, toll-free, the SPRINT national relay number
(800-877-8973). This service enables clients with a telecommunications device
for the deaf ("TDD") to have their message or questions relayed to our customer
service department between the hours of 8:30 a.m. until 7:00 p.m. Eastern Time
Monday through Thursday and 8:30 a.m. until 5 p.m. Eastern Time on Fridays
(800-528-0204) by SPRINT personnel, who will communicate our reply back to them
via the TDD.
We require that the following types of communications be on specific forms
we provide for that purpose which should be available through your employer or
plan trustee:
(1) election of the investment simplifier: automatic transfer options;
(2) change of investment allocations;
(3) transfers between investment options;
(4) withdrawal requests;
(5) contract termination;
(6) address changes; and
(&) loan application.
To terminate or change any of the following we require written notification
generally at least seven calendar days before the next scheduled transaction:
(1)Investment simplifier:
- interest sweep option; or
- fixed-dollar option;
(2) the date annuity payments are to begin.
Signatures: You must sign and date all these requests. The proper person to sign
forms, notices and requests is normally participant and employer or plan
trustee.
Momentum Plus at a Glance -- Key Features
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Professional Momentum Plus' variable investment options invest in 24
investment different Portfolios managed by professional investment
management advisers.
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Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
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Tax advantages o On earnings No tax on any investment gains until you
inside the make withdrawals or receive distributions.
contract
o On transfers No tax on transfers among investment
inside the options.
contract
Because you are buying a contract
to fund a retirement plan that
already provides tax deferral, you
should do so for the contract's
features and benefits other than
the deferral. The tax deferral of
the contract does not provide
additional benefits.
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Access to your o Partial withdrawals
money o Automatic minimum withdrawal option
o Plan loans
o Full withdrawal
You may be subject to a withdrawal charge and/or a
market value adjustment for certain withdrawals. You may
also incur income tax and a penalty tax.
Depending on the terms of the employer's plan, not all
features are available and access to your funds may be
limited.
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Payout alternatives o Five annuity payout options (available in fixed annuity
payments)
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Additional features o Automatic transfer options
Fixed-dollar option
Interest sweep option
o Free transfers among investment options
o Waiver of withdrawal charges for benefit distributions.
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Services we provide o Two plan recordkeeping options
o Educational materials and seminars to assist retirement
planning needs of plan participants
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Fees and charges o We deduct a daily charge at a maximum effective annual
rate of 1.35% of assets invested in variable investment
options for expense charges and mortality and expense
risks.
o Administrative charge:
Generally $30 annually.
o Plan loan charges:
$25 set-up fee;
$6 quarterly recordkeeping fee while loan is active.
o Plan recordkeeping services (billed to employer):
$300 annually for basic recordkeeping plan;
Additional fee for full-service recordkeeping plan.
o Withdrawal charge
Not to exceed 6% of the amount withdrawn, or 8.5% of
contributions made on behalf of the participant,
whichever is less. There is no withdrawal charge
after the employer's plan has participated in the
contract for five years. Does not generally apply if
a participant withdraws amounts due to retirement or
separation from service. There are other important
exceptions and limitations that may eliminate or
reduce the withdrawal charge.
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o We deduct a charge for applicable taxes such as state
or local premium taxes that may be imposed in your
state. The current tax charge that might be imposed
varies by state and ranges from 0% to 2% (1% in Puerto
Rico and 5% in the U.S. Virgin Islands).
o We generally deduct an administrative fee of $350 from
amounts applied to purchase certain life annuity payout
options.
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Fees and charges o Annual expenses of The Hudson River Trust and EQ
(continued) Advisors Trust Portfolios are calculated as a
percentage of the average daily net assets invested in
each Portfolio. These expenses include management and
advisory fees ranging from 0.31% to a maximum of 1.15%
annually, 12b-1 fees of 0.25% (Portfolios of EQ
Advisors Trust only) and other expenses.
The above is not a complete description of all material provisions of the
contract. In some cases restrictions or exceptions apply.
For more detailed information we urge you to read the contents of this
prospectus, as well as your contract. Please feel free to speak with your
Equitable associate, or call us, if you have any questions.
Fee Table
The fee table below will help you understand the various charges and
expenses that apply to your contract. The table reflects charges you will
directly incur under the contract, as well as charges and expenses of the
Portfolios that you will bear indirectly. Charges for taxes, such as premium
taxes, may also apply. However, certain expenses and fees shown in this table
may not apply. Also, an administrative fee may apply when your annuity payments
are to begin. Each of the charges and expenses is more fully described under
"Charges and Expenses" later in this prospectus. For a complete description of
Portfolio charges and expenses, please see the attached prospectuses for The
Hudson River Trust and EQ Advisors Trust.
The guaranteed interest option is not covered by the fee table and
examples. Generally, the only charges shown in the table that are applicable to
the guaranteed interest option are the withdrawal charge and the administrative
charge.
Charges we deduct from your variable investment options (Separate Account A) as
an annual percentage of daily net assets
Other expenses 1.10%
Mortality and expense risk 0.25%
Total Separate Account A Annual Expenses(1) 1.35%
Transaction charges we deduct from your retirement account value
Sales Load on Purchases .............................. None
Transfer Fees ........................................ None
Maximum Withdrawal Charge (2) ........................ 6%
Plan Loan Charges (3) ................................ $25 when loan is made
+ $6 per quarter
Annual Administrative Charge (4) ..................... $30 Per Participant
Annual Basic Recordkeeping Charge (5) ................ $300 Per Plan
The Hudson River Trust annual expenses as a percentage of average daily net
assets in each Portfolio(6)
Investment Total
Management & Other Annual
Advisory Fees Expenses Expenses
------------- -------- --------
Alliance Aggressive Stock 0.54% 0.02% 0.56%
Alliance Balanced 0.41% 0.04% 0.45%
Alliance Common Stock 0.36% 0.03% 0.39%
Alliance Conservative Investors 0.48% 0.05% 0.53%
Alliance Equity Index 0.31% 0.03% 0.34%
Alliance Global 0.64% 0.07% 0.71%
Alliance Growth & Income 0.55% 0.03% 0.58%
Alliance Growth Investors 0.51% 0.04% 0.55%
Investment Total
Management & Other Annual
Advisory Fees Expenses Expenses
------------- -------- --------
Alliance High Yield 0.60% 0.03% 0.63%
Alliance Intermediate Government
Securities 0.50% 0.05% 0.55%
Alliance International 0.90% 0.16% 1.06%
Alliance Money Market 0.35% 0.02% 0.37%
Alliance Quality Bond 0.53% 0.04% 0.57%
Alliance Small Cap Growth 0.90% 0.06% 0.96%
EQ Advisors Trust annual expenses as a percentage of average daily net assets in
each Portfolio(7)
<TABLE>
<CAPTION>
Other
Investment Expenses Total Annual
Management & (After Expense After Expense
Advisory Fees 12b-1 Fee(8) Limitation) (Limitation)
------------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
MFS Emerging Growth Companies 0.55% 0.25% 0.05% 0.85%
MFS Research 0.55% 0.25% 0.05% 0.85%
Merrill Lynch Basic Value Equity 0.55% 0.25% 0.05% 0.85%
Merrill Lynch World Strategy 0.70% 0.25% 0.25% 1.20%
Morgan Stanley Emerging Markets
Equity 1.15% 0.25% 0.35% 1.75%
EQ/Putnam Balanced 0.55% 0.25% 0.10% 0.90%
EQ/Putnam Growth & Income
Value 0.55% 0.25% 0.05% 0.85%
T. Rowe Price Equity Income 0.55% 0.25% 0.05% 0.85%
T. Rowe Price International Stock 0.75% 0.25% 0.20% 1.20%
Warburg Pincus Small Company
Value 0.65% 0.25% 0.10% 1.00%
</TABLE>
____________________
Notes:
(1) The total Separate Account A annual expenses of the variable investment
options are guaranteed not to exceed an annual rate of 1.35% of the
value of the assets held in the variable investment options for the
contract. We may lower these charges for particular plans to an annual
rate of no less than 0.80% if the participation of the plan in the
contract results in savings of sales or administrative expenses.
(2) The maximum withdrawal charge is 6% of amount withdrawn, or 8.5% of
contributions made by or on behalf of a participant, whichever is less.
Important exceptions and limitations may eliminate or reduce the
withdrawal charge.
(3) Your employer may elect to pay these charges and we reserve the right to
increase them.
(4) The administrative charge 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.
(5) We will bill this charge directly to your employer if the employer elects
the basic plan recordkeeping option. We charge a fee of $25 per check
drawn if the employer elects to have us distribute plan benefits and
withdrawals. We reserve the right to waive in certain cases or increase
these charges upon 90 days written notice to the employer or plan trustee.
(6) The fees and expenses shown for all Portfolios are for the year ended
December 31,1998. The investment management and advisory fees for each
Portfolio of The Hudson River Trust may vary from year to year depending
upon the average daily net assets of the respective Portfolio. The maximum
investment management and advisory fees, however, cannot be increased
without a vote of that Portfolio's shareholders. The other direct
operating expenses will also fluctuate from year to year depending on
actual expenses. The Hudson River Trust's expenses are shown as a
percentage of each Portfolio's average net assets.
(7) EQ Advisors Trust Portfolios became available for investment through the
Momentum Plus contract in July 1998. The maximum investment management and
advisory fees for each Portfolio of EQ Advisors Trust cannot be increased
without a vote of that Portfolio's shareholders. See the prospectus for EQ
Advisors Trust. The amounts shown as "Other Expenses" will fluctuate from
year to year depending on actual expenses. However, EQ Financial
Consultants, Inc. ("EQF"), EQ Advisors Trust 's manager, has entered into
an expense limitation agreement with respect to each Portfolio. Under this
agreement EQF has agreed to waive or limit its fees and assume other
expenses. Under the expense limitation agreement, total annual operating
expenses of each Portfolio (other than interest, taxes, brokerage
commissions, capitalized expenditures, extraordinary expenses and 12b-1
fees) are limited for the average daily net assets of each Portfolio as
follows: 0.60% for EQ/Putnam Growth & Income Value, MFS Emerging Growth
Companies, MFS Research, Merrill Lynch Basic Value Equity, and T. Rowe
Price Equity Income; 0.65% for EQ/Putnam Balanced; 0.75% for Warburg
Pincus Small Company Value; 0.95% for Merrill Lynch World Strategy and T.
Rowe Price International Stock; and 1.50% for Morgan Stanley Emerging
Markets Equity.
Absent the expense limitation, "Other Expenses" for 1998 on an annualized
basis for each of the Portfolios would have been as follows: 0.24% for MFS
Emerging Growth Companies, EQ/Putnam Growth and Income Value, and T. Rowe
Price Equity Income; 0.25% for MFS Research; 0.26% for Merrill Lynch Basic
Value Equity; 0.66% for Merrill Lynch World Strategy; 1.23% for Morgan
Stanley Emerging Markets Equity, 0.45% for EQ/Putnam Balanced; 0.40% for
T. Rowe Price International Stock; and 0.27% for Warburg Pincus Small
Company Value.
Each Portfolio may at a later date make a reimbursement to EQF for any of
the management fees waived or limited and other expenses assumed and paid
by EQF pursuant to the expense limitation agreement provided, that among
other things, such Portfolio has reached sufficient size to permit such
reimbursement to be made and provided that the Portfolio's current annual
operating expenses do not exceed the operating expense limit determined
for such Portfolio. During 1999, EQF plans to change its name to AXA
Advisors, Inc.
(8) The Class IB shares of EQ Advisors Trust are subject to fees imposed under
a distribution plan (herein, the "Rule 12b-1 Plan") adopted by EQ Advisors
Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940, as
amended. The Rule 12b-1 Plan provides that EQ Advisors Trust, on behalf of
each Portfolio, may charge annually up to 0.25% of the average daily net
assets of a Portfolio attributable to its Class IB shares in respect of
activities primarily intended to result in the sale of the Class IB
shares. The 12b-1 fee will not be increased for participants enrolled
under the Momentum Plus contract.
Examples
The examples below show the expenses that a hypothetical participant would pay
in the situations illustrated. We assume a $1,000 contribution is invested in
one of the variable investment options listed and a 5% annual return on assets.
We also assume there is no waiver of the withdrawal charge.(1) We calculate the
quarterly administrative charge by using an average of the total actual
administrative charges for 1998. These examples do not reflect the $300 annual
charge for basic recordkeeping services, which we bill directly to the employer.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown.(2) Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
<TABLE>
<CAPTION>
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If you withdraw your entire retirement
account value and the withdrawal charge If you do not withdraw any retirement
applies, the expenses at the end of each account value, the expenses at the end of
period shown would be: each period shown would be:
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
The Hudson River Trust
Options
Alliance Aggressive
Stock 82.19 131.58 182.77 244.58 21.48 66.30 113.71 244.58
Alliance Balanced 82.11 128.31 177.30 232.68 20.33 62.81 107.85 232.68
Alliance Common
Stock 82.50 129.50 179.29 237.02 20.75 64.08 109.98 237.02
Alliance Conservative
Investors 82.90 130.69 181.28 241.35 21.17 65.35 112.11 241.35
Alliance Equity Index 81.02 125.04 171.80 220.65 19.17 59.31 101.97 220.65
Alliance Global 84.67 136.02 190.18 260.60 23.05 71.04 121.65 260.60
Alliance Growth & Income 83.39 132.17 183.76 246.73 21.69 66.93 114.77 246.73
Alliance Growth Investors 83.09 131.28 182.27 243.51 21.38 65.98 113.18 243.51
Alliance High Yield 83.88 133.66 186.23 252.09 22.21 68.51 117.42 252.09
Alliance Intermediate
Government Securities 83.09 131.28 182.27 243.51 21.38 65.98 113.18 243.51
Alliance International 88.12 146.34 207.30 297.04 26.72 82.05 139.99 297.04
Alliance Money
Market 81.32 125.93 173.30 223.94 19.49 60.27 103.57 223.94
Alliance Quality Bond 83.29 131.88 183.26 245.66 21.59 66.61 113.24 245.66
Alliance Small Cap
Growth 87.13 143.40 202.44 286.76 25.68 78.91 134.77 286.76
EQ Advisors Trust Options
MFS Emerging Growth
Companies 86.05 140.16 24.52 75.46
MFS Research 86.05 140.16 24.52 75.46
Merrill Lynch Basic Value
Equity 86.05 140.16 24.52 75.46
Merrill Lynch World Strategy 89.50 150.44 28.19 86.43
Morgan Stanley Emerging
Markets Equity 94.92 166.45 33.96 103.52
EQ/Putnam Balanced 86.54 141.63 25.05 77.03
</TABLE>
(1) The amount accumulated could not be paid in the form of an annuity payout
option at the end of any of the periods shown in the examples. This is
because the amount applied to purchase an annuity payout option must be at
least $5,000. See "Transferring and Accessing Your Money." In some cases,
charges for state premium or other applicable taxes will be deducted from
the amount applied, if applicable.
(2) Actual administrative charges may be less if you, as employer, are billed
directly for the quarterly administrative charge or if we do not deduct
the quarterly administrative charge.
If you elect an annuity payout option:
Assuming an annuity payout option could be issued (see Note (1) above),
and you elect a life annuity payout option, the expenses shown in the above
table of the example for if you do not withdraw any retirement account value
would, in each case, be increased by $4.43 based on the average amount applied
to annuity payout options in 1998. See "Annuity administrative fee" under
"Charges and expenses."
Condensed Financial Information
Please see APPENDIX I, at the end of this prospectus, for the unit values
and number of units outstanding as of the periods shown for the variable
investment options
Contract Features and Benefits
How contributions can be made
Employers and plan trustees may make contributions at any time by either
wire transfer or check. Participants should not send contributions directly to
Equitable Life. There is no minimum contribution amount. All contributions made
by check must be drawn on a bank in the U.S. clearing through the Federal
Reserve System, in U.S. dollars, and made payable to Equitable Life. We do not
accept third party checks endorsed to us except for rollover contributions from
a qualified plan, tax-free exchanges or trustee checks that involve no refund.
All checks are subject to our ability to collect the funds. We reserve the right
to reject a payment if it is received in an unacceptable form. We also have the
right to stop accepting contributions upon notice to employers and plan
trustees.
Your initial contribution must generally be preceded or accompanied by all
properly completed forms. Failure to use the proper form, or to complete the
form properly, may result in a delay in crediting contributions. Employers
should send all contributions to Equitable Life at the Processing Office. (See "
Momentum Plus at a Glance - Key Features.")
If we receive your initial contribution before we receive the signed
enrollment form or the 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 plan's default option (either the guaranteed interest option
or Alliance Money Market option). If your instructions add up to less than 100%,
we will only allocate the portion of the contribution for which we do not have
instructions to the default option. If your instructions add up to more than
100%, we will allocate the entire amount of the contribution to the default
option. We will then notify your employer or plan trustee and request corrected
instructions. If we do not receive corrected instructions after sending three
notices, but in no event later than 105 days from the date a contribution is
first credited to the default option, we will return to the employer or plan
trustee, which ever, all contributions for which notices had been sent, plus
earnings.
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.
[Side bar: Our "business day" generally is any day on which Equitable
Life is open and the New York Stock Exchange is open for trading.]
What are your investment options under the contract?
Your investment options available are the 24 variable investment options
and the guaranteed interest option.
Variable investment options
Your investment results in any one of the 24 variable investment options
will depend on the investment performance of the underlying Portfolios. Listed
below are the currently available Portfolios, their investment objectives, and
their advisers.
[Sidebar: The employer or plan trustee can choose among 24 variable
investment options.]
Portfolios of The Hudson River Trust
- --------------------------------------------------------------------------------
Portfolio Name Objective Adviser
- --------------------------------------------------------------------------------
Alliance Aggressive Long-term growth of Alliance Capital Management
Stock capital L.P.
- --------------------------------------------------------------------------------
Alliance Balanced High return through a Alliance Capital Management
combination of current L.P.
income and capital
appreciation
- --------------------------------------------------------------------------------
Alliance Common Stock Long-term growth of Alliance Capital Management
capital and increasing L.P.
income
- --------------------------------------------------------------------------------
Alliance Conservative High total return Alliance Capital Management
Investors without, in the L.P.
adviser's opinion,
undue risk to principal
- --------------------------------------------------------------------------------
Alliance Equity Index Total return (before Alliance Capital Management
The Hudson River Trust L.P.
and Separate Account A
annual expenses) that
approximates the total
return performance of
the Standard & Poor's
500 Composite Stock
Price Index
- --------------------------------------------------------------------------------
Alliance Global Long-term growth of Alliance Capital Management
capital L.P.
- --------------------------------------------------------------------------------
Portfolios of The Hudson River Trust (continued)
- --------------------------------------------------------------------------------
Portfolio Name Objective Adviser
- --------------------------------------------------------------------------------
Alliance Growth & Income High total return Alliance Capital Management
through a combination L.P.
of current income and
capital appreciation
- --------------------------------------------------------------------------------
Alliance Growth High total return Alliance Capital Management
Investors consistent with the L.P.
adviser's determination
of reasonable risk
- --------------------------------------------------------------------------------
Alliance High Yield High return by Alliance Capital Management
maximizing current L.P.
income and, to the
extent consistent with
that objective, capital
appreciation
- --------------------------------------------------------------------------------
Alliance Intermediate High current income Alliance Capital Management
Government Securities consistent with L.P.
relative stability of
principal
- --------------------------------------------------------------------------------
Alliance International Long-term growth of Alliance Capital Management
capital L.P.
- --------------------------------------------------------------------------------
Alliance Money Market High level of current Alliance Capital Management
income while preserving L.P.
assets and maintaining
liquidity
- --------------------------------------------------------------------------------
Alliance Quality Bond High current income Alliance Capital Management
consistent with L.P.
preservation of capital
- --------------------------------------------------------------------------------
Alliance Small Cap Long-term growth of Alliance Capital Management
Growth capital L.P.
- --------------------------------------------------------------------------------
Portfolios of EQ Advisors Trust
- --------------------------------------------------------------------------------
Portfolio Name Objective Adviser
- --------------------------------------------------------------------------------
MFS Emerging Growth Long-term growth of Massachusetts Financial
Companies capital Services Company
- --------------------------------------------------------------------------------
MFS Research Long-term growth of Massachusetts Financial
capital and future Services Company
income
- --------------------------------------------------------------------------------
Merrill Lynch Basic Capital appreciation Merrill Lynch Asset
Value Equity and, secondarily, Management, L.P.
income
- --------------------------------------------------------------------------------
Merrill Lynch World High total investment Merrill Lynch Asset
Strategy return Management, L.P.
- --------------------------------------------------------------------------------
Morgan Stanley Emerging Long-term capital Morgan Stanley Asset
Markets Equity appreciation Management, Inc.
- --------------------------------------------------------------------------------
EQ/Putnam Balanced Balanced investment Putnam Investment
Management, Inc.
- --------------------------------------------------------------------------------
EQ/Putnam Growth & Capital growth, current Putnam Investment
Income Value income is a secondary Management, Inc.
objective
- --------------------------------------------------------------------------------
T. Rowe Price Equity Substantial dividend T. Rowe Price Associates,
Income income and also capital Inc.
appreciation
- --------------------------------------------------------------------------------
T. Rowe Price Long-term growth of Rowe Price-Fleming
International Stock capital International, Inc.
- --------------------------------------------------------------------------------
Warburg Pincus Small Long-term capital Warburg Pincus Asset
Company Value appreciation Management, Inc.
- --------------------------------------------------------------------------------
Other important information about the Portfolios is included in the
separate prospectuses for The Hudson River Trust and EQ Advisors Trust attached
at the end of this prospectus.
Guaranteed interest option
You may allocate some or all of your retirement account value to the
guaranteed interest option if this investment option is available under your
employer's plan. The guaranteed interest option is part of our general account
and pays interest at guaranteed rates. We discuss our general account under
"More Information."
We credit interest daily to amounts in the guaranteed interest option.
There are three levels of interest rates simultaneously in effect in the
guaranteed interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
Allocations to the guaranteed interest option are guaranteed to earn
interest at least equal to the yearly guaranteed interest rate. The guaranteed
interest rate for 1999 is 4% and for 2000 is 4%. We guarantee that the yearly
guaranteed interest rate will never be less than 3%.
Currently we also 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 may also declare rates based
on:
o the date amounts were credited to the account, or
o the date your employer's plan enrolled under the contract.
We set interest rates periodically at our discretion according to our
procedures that we have in effect at the time. All interest rates are effective
interest rates, but before deduction of quarterly administrative charges or any
withdrawal charge.
Contract termination
Contract termination occurs:
(i) when the employer or plan trustee informs us that it is terminating a
plan's participation under the contract, in whole or in part, or
(ii) when we deliver written notice to the employer or plan trustee that we are
terminating a plan's participation under the contract because:
(a) the plan fails to qualify under the Internal Revenue Code, or
(b) we cannot properly administer the contract because the plan
has failed to provide us with the necessary participant
information.
Effects of plan or contract termination
We will generally pay withdrawals from the guaranteed interest option
following a contract termination, or on behalf of a participant covered by a
plan that has terminated, in six annual installments. However, in the case of a
contract termination, employers may instead elect to receive such amounts
immediately in a single payment. The single payment will be subject to a market
value adjustment (discussed below). Amounts payable in installments are not
subject to a withdrawal charge.
There is no installment payout requirement or a market value adjustment
for withdrawals made:
1) as a result of:
o a participant's death,
o attainment of the normal retirement age under the
employer's plan,
o disability, or
o separation from service;
2) to purchase an annuity payout option that depends on the life of an
annuitant; or
3) to satisfy the Internal Revenue Code's minimum distribution
requirements.
[Sidebar: an annuitant is the measuring life for determining payments.]
We do not permit transfers to or from the guaranteed interest option once
installment payments begin after a contract termination. Transfers out of the
guaranteed interest option are also restricted for terminated plan participants
once we receive notice of a plan termination. A "plan termination" is the
termination, either in whole or in part, of the employer's defined contribution
plan when there is no successor plan. Employers and plan trustees must give us
90 days advance notice of a plan termination.
We will make single sum payments (and impose a market value adjustment)
rather than make installment payments under certain circumstances such as when
there are relatively few participants remaining following a plan termination.
Market value adjustment
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 interest option (each a "quarterly period"). We calculate each market
value change for each quarterly period as follows:
1) We subtract the average interest rate on 5-year U.S. Treasury notes
during the quarterly period from the interest rate of a 5-year U.S.
Treasury note on the calculation date. The "calculation date" will
be the fifth business day prior to the date we pay the withdrawal.
2) We multiply the result in (1) by the employer's net cash flow in the
guaranteed interest option. Net cash flow is contributions, interest
credited and transfers in, minus withdrawals, transfers out and
fees. The actions of other participants (e.g., transfers,
withdrawals, etc.) can affect a plan's cash flow, and thus the
amount of the market value adjustment applied to your withdrawal.
3) We then multiply the result in (2) by a fraction equal to the number
of calendar days from the date of the withdrawal to the maturity
date for the given quarterly period over 365. The "maturity date" is
the fifth anniversary of the first business day of the given
quarterly period.
Finally we add together the amount of each market value change for each
quarterly period, and divide by the total amount of retirement account values
held in the guaranteed interest option under your employer's plan on the date of
the withdrawal. 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:
You will not receive less than the amounts contributed to the guaranteed
interest option on your behalf plus interest credited at 3% (the minimum
guaranteed rate). Further, the market value adjustment may not exceed 7%. We
will reduce the market value adjustment as necessary to meet these conditions.
If the withdrawal charge that applies to the amount withdrawn from the
guaranteed interest option is greater than the market value adjustment, we will
impose the withdrawal charge instead of the market value adjustment.
The contract prohibits the employer or plan trustee from influencing
participants' decisions regarding allocations, transfers or withdrawals to or
from the guaranteed interest option. We may prohibit transfers to or from the
guaranteed interest option and/or impose a contract termination for violations
of this provision.
Selecting investment options (employers and plan trustees)
You, as employer or plan trustee, can fund your plan with any number of
the contract's investment options. You make your selection on the application.
You may change this selection subject to our rules that we have in effect at
that time.
If you choose any one of the Alliance Intermediate Government Securities,
Alliance Quality Bond, Alliance High Yield, or Alliance Conservative Investors
options, you must also select the Alliance Money Market option. Also, if you
select the guaranteed interest option and any one of the above-listed options,
certain restrictions will apply to transfers out of the guaranteed interest
option. See "Transferring and Accessing Your Money." Lastly, if you do not
select any of the above-listed options, you must elect the guaranteed interest
option as a funding option.
Allocating your contributions
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 generally provide
those allocation percentages. In trustee-directed plans, the plan trustee will
provide those percentages. Employees and employers may allocate contributions in
different percentages. Some plans may allow participant-directed contributions
only for employee post-tax and salary-deferral contributions.
You should review your confirmation notices carefully to determine whether
your contributions have been allocated correctly.
Unless restricted by your employer's plan, you can change your allocation
percentages at any time. To change your allocation instructions, you can file a
change of investment allocation form with your employer or plan trustee to be
forwarded to our Processing Office. If your employer elects to use TOPS, you can
change your allocation percentages over the phone. The change will remain in
effect for future contributions unless you request another change.
Determining Your Retirement Account Value
The "retirement account value" is the total of the amounts that a
participant has in the variable investment options and the guaranteed interest
option. These amounts are subject to certain fees and charges discussed under
"Charges and Expenses."
If you make a partial or full withdrawal or if your employer terminates a
plan's participation in the Momentum Plus program, your retirement account value
will be reduced by any withdrawal charge and/or any market value adjustment that
applies.
Your contract's value in the variable investment options
Each investment option invests in shares of a corresponding Portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding Portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract. Your
value will also be reduced by the dollar amount of any partial withdrawals and
loans that you make.
[Sidebar: Units measure your value in each variable investment option.]
The unit value for each variable investment option depends on the
investment performance of that option, minus daily charges for mortality and
expense risks and other expenses. On any day, your value in any variable
investment option equals the number of units credited to your contract under
that option, multiplied by that day's value for one unit. The number of your
contract units in any variable investment option does not change unless you make
additional contributions, make a withdrawal, take a loan, make a loan repayment,
or transfer amounts among investment options. In addition, when we deduct the
withdrawal charge and the quarterly administrative charge, the number of units
credited to your contract will be reduced. A description of how unit values are
calculated is found in the SAI.
Your contract's value in the guaranteed interest option
Your value in the guaranteed interest option at any time will equal: your
contributions, transfers and loan repayments to that option, plus interest,
minus withdrawals, loans, and transfers out of the option, and charges we
deduct.
Transferring and Accessing Your Money
Subject to certain restrictions, the contract permits transfers of all or
a portion of your retirement account value among the investment options at any
time. Your employer's plan may, however, impose restrictions on transfers. We
also offer an automatic transfer service described under "Investment Simplifier:
Automatic Transfer Options" in this section. There is no charge for transfers.
Participants may make transfer requests by filing a request form to
transfer with their employer or plan trustee to be forwarded to our Processing
Office. You can also use our TOPS system to make transfers among the investment
options if your employer has adopted the system.
If your employer elects to fund your plan with the guaranteed interest
option and any of the Alliance Money Market, Alliance Intermediate Government
Securities, Alliance Quality Bond, Alliance High Yield, or Alliance Conservative
Investors options, the maximum amount that may be transferred from the
guaranteed interest option to any other variable investment option during a
"transfer period" is the greater of:
(i) 25% of the amount you had in the guaranteed interest option as of
the last business day of the calendar year immediately preceding the
current calendar quarter, or
(ii) the total of all amounts you transferred out of the guaranteed
interest option during the same calendar year.
[Sidebar: 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 may not transfer funds out of
the guaranteed interest option during the first calendar year of their
participation under the contract.
We will not permit transfers out of the guaranteed interest option for 90
days after we receive notice of a plan termination. However, automatic transfers
under the fixed-dollar option and the interest sweep option will continue during
this 90-day period. After 90 days the transfer limitation described above will
go into effect for all transfers (regardless of which variable investment
options are available under your employer's plan).
Transfers you make from the guaranteed interest option when there is no
transfer limitation in effect will not count against the maximum transfer amount
if the transfer limitation subsequently goes into effect.
If the employer or plan trustee has transferred assets to the Momentum
Plus contract from another funding vehicle, you may transfer, for the remainder
of the calendar year in which the assets have been transferred, up to 25% of the
amount that is initially allocated to the guaranteed interest option on your
behalf.
We may, at any time, restrict the use of market timers and other agents
acting under a power of attorney who are acting on behalf of more than one
participant. Any agreements to use market timing services to make transfers are
subject to our rules in effect at that time.
A transfer request does not change your percentages for allocating current
or future contributions among the investment options. We will confirm all
transfers in writing.
Investment Simplifier: Automatic Transfer Options
Your employer can elect to provide one of two automatic options for
transferring amounts from the guaranteed interest option to the variable
investment options. The transfer options are the "fixed-dollar option" and the
"interest sweep option." You may select one or the other, but not both.
Fixed-dollar option. Under this option you may elect to have a
fixed-dollar amount transferred out of the guaranteed interest option and into
the variable investment options of your choice on a monthly basis. You can
specify the number of monthly transfers or instruct us to continue to make
monthly transfers until available amounts in the guaranteed interest option have
been transferred out.
In order to elect the fixed-dollar option you must have a minimum of
$5,000 in the guaranteed interest option on the date we receive your election
form at our Processing Office. You also must elect to transfer at least $50 per
month. The fixed-dollar option is subject to the guaranteed interest option
transfer limitation described under above.
The fixed-dollar option is a form of dollar-cost averaging. Dollar-cost
averaging allows you to gradually allocate amounts to the variable investment
options by periodically transferring approximately the same dollar amount to the
variable investment options you select. This will cause you to purchase more
units if the unit's value is low and fewer units if the unit's value is high.
Therefore, you may get a lower average cost per unit over the long term. This
plan of investing, however, does not guarantee that you will earn a profit or be
protected against losses.
Interest sweep option. Under the interest sweep option, each month we
transfer the amount of interest credited to amounts you have in the guaranteed
interest option from the last business day of the prior month to the last
business day of the current month. You must have at least $7,500 in the
guaranteed interest option on the date we receive your election and on the last
business day of each month after that to participate in the interest sweep
option.
____________________
You may elect an automatic transfer 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.
Termination of an automatic transfer option. Automatic transfer options
will terminate:
o Under the fixed-dollar option, when either the number of designated
monthly transfers have been completed or the amount you have available or
amount available for transfer in the guaranteed interest option has been
transferred out.
o Under the interest sweep option, when the amount you have in the
guaranteed interest option falls below $7,500 (determined on the last
business day of the month) for two months in a row.
o Under either option, on the date we receive your written request to
terminate automatic transfers or on the date your contract terminates.
Withdrawals and termination
Subject to any restrictions in your employer's plan, the contract allows
your employer or plan trustee, whichever applies, to make a withdrawal from your
retirement account value on your behalf by writing to our Processing Office and
submitting a completed withdrawal form. We will process your withdrawal request
on the business day we receive the required information. We will send withdrawal
proceeds 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 before we can process
it.
As a deterrent to premature withdrawal (generally before age 59 1/2)
federal income tax rules provide certain restrictions on and penalties for early
withdrawals. In addition, for payments made directly to participants, we
withhold income taxes from the amount withdrawn unless an exception applies. See
"Tax Information."
The employer or plan trustee may also terminate its entire participation
under the contract by writing to our Processing Office. In addition, if a plan
does not qualify under federal income tax rules, or, if you 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.
Withdrawals or terminations may result in a withdrawal charge, an
installment payout, and/or a market value adjustment. See "Effects of plan or
contract termination" under "Contract Features and Benefits" and "Charges that
Equitable Life Deducts" under "Charges and Expenses."
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, when a forfeiture occurs, we will withdraw the unvested portion of
the retirement account value and deposit such amount in a forfeiture account. We
allocate amounts in the forfeiture account to the "default option." The default
option is the Alliance Money Market option, if that is an option under your
plan. Otherwise, the guaranteed interest option is the default option. For more
information on vesting, refer to the SAI.
We will reallocate amounts from the forfeiture account as contributions to
participant accounts in accordance with instructions received by the employer or
plan trustee, whichever applies. Special rules apply to how the withdrawal
charge will apply when forfeitures have occurred. See "Contingent withdrawal
charge" under "Charges and Expenses."
Plan loans
The contract permits your employer, or plan trustee, to withdraw funds
from your retirement account value, without incurring a 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.
Employers transferring plan assets to the Momentum Plus program may also
transfer outstanding plan loans to the contract. We call these loans "takeover
loans." We will allocate repayments of takeover loans to the default option.
You presently may not borrow from your vested retirement account value
without first obtaining a prohibited transaction exemption from the Department
of Labor ("DOL") if you are:
o a partner who owns more than 10% of the business, or
o a shareholder-employee of an S Corporation who owns more than 5% of
the business.
Consult with your attorney or tax adviser regarding the advisability and
procedures for obtaining such an exemption.
Participants should apply for a plan loan through their employer or the
plan trustee, whichever applies. The employer or plan trustee and the
participant must complete and sign a loan agreement and application before we
make any plan loans. Before taking a plan loan, married participants must
generally obtain written consent of their spouse. In addition, participants
should always consult their tax adviser before taking out a plan loan.
We permit only one outstanding plan loan at any time. We will permit any
number of takeover loans at any time. You may not have both takeover loans and
plan loans outstanding at the same time. The minimum loan is $1,000 and the
maximum is 50% of your vested retirement account value. No plan loan may be
greater than $50,000 less the highest outstanding loan balance in the preceding
twelve calendar months. When you request the loan you may specify from which
investment options the plan loan is to be deducted. The loan term must comply
with any law that applies. See "Additional Loan Provisions" in the SAI and "Tax
Information" of the prospectus.
For a description of charges associated with plan loans, see "Plan loan
charges" under "Charges and Expenses."
Your employer or the plan trustee will set the interest rate that applies
to your plan loan under the terms of your employer's plan. Each employer or plan
trustee is responsible for determining the interest rate that applies to each
loan. We will add all interest (as well as principal) that you pay 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 when it is
distributed.
Plan loan repayments covering interest and principal will be due according
to the repayment schedule determined according to 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 subject to the same rules for
contributions. See "How contributions can be made."
You may prepay a plan loan in whole or in part at any time. We will apply
any payments we receive to interest first, and principal second. Plan loan
repayments will be allocated to the investment options according to the
instructions we receive on the loan request form.
A plan loan will be in default if:
o we do not receive the amount of any scheduled repayment within
90 days of its due date,
o the participant dies, or
o participation under the contract terminates.
We will then treat the loan principal as a withdrawal subject to the
withdrawal charge.
When to expect payments
Generally, we will fulfill requests for payments out of the variable
investment options within seven calendar days after the date of the transaction
to which the request relates. These transactions may include payment of a death
benefit, or payment of any portion of your retirement account value (less any
withdrawal charge). We may postpone such payments or applying proceeds for any
period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of
an emergency, or
(3) the SEC, by order, permits us to defer payment to protect people
remaining in the variable investment option.
We can defer payment of any portion of your value in the guaranteed
interest option for up to six months while you are living.
Choosing your annuity payout options
Momentum Plus offers you several choices for receiving retirement income.
Each of the annuity options provides for fixed annuity payments. You can choose
from among the five different annuity payout options listed below. Your choices
are always subject to the terms of your employers plan.
- --------------------------------------------------------------------------------
Annuity Payout Options Life Annuity
Life Annuity -- Period Certain
Life Annuity -- Refund Certain
Period Certain Annuity
Qualified Joint and Survivor Life
- --------------------------------------------------------------------------------
Annuity payout options
You can choose from among the following annuity payout options:
o Life Annuity: An annuity that guarantees payments for the rest of
your life. Payments end with the last monthly payment before your
death. Because there is no death benefit with this payout option, it
provides the highest monthly payment of any of the life annuity
options. The monthly payments terminate with your death.
o Life Annuity -- Period Certain: An annuity that guarantees payments
for the rest of your life, and, if you die before the end of a
selected period of time ("period certain"), provides payments to the
beneficiary for the balance of the period certain. The minimum
period is usually 5, 10, 15 or 20 years.
o Life Annuity -- Refund Certain: An annuity that guarantees payments
for the rest of your life, and, if you die before the amount applied
to purchase the annuity option has been recovered, provides payments
to the beneficiary that will continue until that amount has been
recovered.
o Period Certain Annuity: An annuity that guarantees payments for a
specific period of time, usually 5, 10, 15 or 20 years. This option
does not guarantee payments for the rest of your life.
o Qualified Joint and Survivor Life Annuity: An annuity that
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 contest of their
spouse, this will be the normal form of annuity payment for plans
such as the Master Plan and Trust.
The Momentum Plus contract offers fixed annuity payout options. We
guarantee fixed annuity payments that will be based either on the tables of
guaranteed annuity payments in your contract or on our then current annuity
rates, whichever is more favorable for the participant.
The life annuity, life annuity -- period certain, and life annuity --
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments for
the rest of your life and, after your death, continuation of payments to your
surviving spouse.
The chart below compares the financial value of the different annuity
payout options. The example assumes at the time payments commence:
o a $100,000 initial contribution;
o both the annuitant and the joint annuitant are 65;
o fixed annuity rates that are currently guaranteed in the contract;
o no state premium taxes; and
o no contingent withdrawal charges.
We can change the actuarial basis for the fixed annuity rates only for new
contributions and only after the fifth anniversary of the date the contract is
issued. Subsequent changes must be at least five years after any previous
change. Certain legal requirements may limit the forms of annuity available to
you.
- -------------------------------------------------------------------------------
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 payout options not outlined here. Your Equitable associate
can provide details.
Selecting an annuity payout option
In order to elect an annuity payout option, a retirement account value
must be at least $5,000. Once you have selected a payout option and payments
have begun, no change can be made.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity, the type of annuity chosen and, in the case of a life
annuity, the participant's age (or the participant's and joint annuitant's
ages).
Minimum Distributions (Automatic Minimum Withdrawal Option) -- Over Age 70 1/2
Under the federal income tax rules, distributions from qualified plans
generally must begin by April 1 of the calendar year after the calendar year in
which the participant reaches age 70 1/2 or retires from the employer sponsoring
the plan, whichever is later. For participants who own more than 5% of the
business, minimum distributions must begin after age 70 1/2 even if they are
still working. Subsequent distributions must be made by December 31st of each
calendar year (including the calendar year in which distributions must begin).
If you take less than the required minimum distribution in any year, you
could have to pay a 50% penalty tax on the "shortfall" (required amount less
amount actually taken).
Automatic minimum withdrawal option
The "automatic minimum withdrawal option" is a payment option we designed
to help you meet required minimum distributions. If you elect the automatic
minimum withdrawal option, we will withdraw the amount that federal income tax
rules require you to withdraw from your retirement account value. We calculate
the amount to withdraw under this option based on the information you give us,
the various choices you make, and certain assumptions. We assume that the funds
you hold under your contract are the only funds subject to required minimum
distributions. We are not responsible for errors that result from inaccuracies
of information you provide. We describe the choices you can make in the SAI.
You may elect the automatic minimum withdrawal option if you, the
participant, are at least age 70 1/2 and have a retirement account value of at
least $3,500. You can elect the automatic minimum withdrawal option by filing
the proper election form with your employer.
You may discontinue the automatic minimum withdrawals program at any time.
Generally, electing this option does not restrict you from taking additional
partial withdrawals or subsequently electing an annuity payout option.
The automatic minimum withdrawal option is not available if you have an
outstanding loan.
The minimum amount that you may receive under this option is $300, or your
retirement account value, whichever is less.
The Momentum Plus Program
This section is primarily directed at employers and plan trustees.
The Momentum Plus program offers, according to the terms of either the
Master Plan and Trust or the Pooled Trust, a group variable annuity contract as
a funding vehicle for employers who sponsor qualified "qualified retirement
plans." A defined contribution plan is a retirement plan that provides for an
individual account for each plan participant, and for benefits based solely on
the amounts contributed to such an 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 Internal Revenue Code and
Treasury regulations that apply.
You, the employer or plan trustee, whichever applies, are responsible for
determining whether the Momentum Plus contract is a suitable funding vehicle for
your defined contribution plan. You should read this prospectus and the Momentum
Plus contract before entering into the contract.
Master Plan and Trust
As an employer, subject to Equitable Life's underwriting requirements, you
can use the Momentum Plus program to adopt the Master Plan and Trust, in which
case the Master Trust will be the sole funding vehicle for your plan. The Master
Trust is funded by the contract.
The Master Plan and Trust consists of Internal Revenue Service
("IRS")-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 Internal Revenue 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 means the plan participants choose which variable
investment options to use for the investment of their plan accounts. The plans
are designed to meet the requirements of the Employee Retirement Income Security
Act of 1974 ("ERISA") Section 404(c). See "Certain rules applicable to plans
designed to comply with section 404(c) of ERISA" under "Tax Information."
If you adopt the Master Plan and Trust, you must choose our full-service
plan recordkeeping option. The SAI contains more information about the Master
Plan and Trust.
Pooled Trust
The Pooled Trust is available for qualified defined contribution plans
with either participant-directed or trustee-directed investments. If you elect
the basic plan recordkeeping option you may use either the Pooled Trust or your
own individually designed or prototype qualified defined contribution plan
document. You may not use the Master Plan. The full-service recordkeeping option
is not available with the Pooled Trust. However, we may offer to perform
additional plan recordkeeping services for an additional charge.
If you adopt the Pooled Trust, the contract provides that it must be your
plan's sole funding vehicle unless we agree otherwise. Both the Pooled Trust and
the Master Plan and Trust use the same group variable annuity contract (i.e.,
the Momentum Plus contract).
Trustee
Chase Manhattan Bank N.A. currently is the trustee under both the Pooled
Trust and the Master Plan and Trust. The sole responsibility of Chase Manhattan
Bank N.A. is to serve as a party to the Momentum Plus contract. It has no
responsibility for the administration of the Momentum Plus program or for any
distributions or duties under the contract. The Master Plan and Trust and the
Pooled Trust will not be available in certain states and in certain situations,
where the Momentum Plus contract is only issued directly to the employer or plan
trustee. Employers in those states and situations will not be able to use our
full-service plan recordkeeping option.
Employer's responsibilities
If you elect the full-service recordkeeping option, your responsibilities
relating to the administration and qualification of your plan will include:
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 all the forms to us that employees are required to
submit;
o arranging to have all reports distributed to employees and former
employees if you elect to have them sent to you;
o arranging to have our prospectuses distributed;
o filing an annual information return for your plan with the IRS,
if required;
o providing us with the information needed for running special
nondiscrimination tests, if you have a 401(k) plan or if your
plan accepts post-tax employee or employer matching
contributions, and making any corrections if you do not pass the
test;
o selecting interest rates and monitoring default procedures, if
you elect to offer participant loans in your plan; and
o meeting the requirements of ERISA Section 404(c) if you, intend
for your plan to comply with that section.
The plan recordkeeping services agreement contains other responsibilities
of the employer relating to the administration and qualification of your plan.
All plans that elect the full-service plan recordkeeping option must enter into
the recordkeeping services agreement. We will give you guidance and assistance
in performing your responsibilities, however, you are ultimately responsible.
Employers who use an individually designed or a prototype plan already have most
of these responsibilities, therefore, adopting the Pooled Trust will not
increase such responsibilities.
Adopting the Momentum Plus program
To adopt the Master Plan and Trust, you, as the employer, must complete
and sign a participation agreement, and complete certain other installation
forms and agreements.
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, the employer or plan trustee, whichever applies,
must complete a contract application in order to participate in the contract.
Your Equitable associate can help you complete the participation agreement
and the contract application. We recommend that your tax or benefits adviser
review the participation agreement.
The provisions of your plan or applicable laws or regulations may be more
restrictive than the Momentum Plus contract. We reserve the right to amend the
Momentum Plus contract without the consent of any other person to comply with
laws and regulations that may apply.
Plan Recordkeeping Services
We offer two plan recordkeeping options: basic recordkeeping or
full-service recordkeeping. Employers must elect one of these options for each
plan. If you elect the full-service recordkeeping option, you must adopt the
Master Plan and Trust.
Basic recordkeeping option
Our basic recordkeeping option includes:
o Accounting by participant;
o Accounting by source of contributions;
o Plan administration manual and forms (including withdrawal,
transfer, loan processing, and account allocation forms);
o Provision of annual 5500 series Schedule A report information for
use in making the plan's annual report to the IRS and DOL; and
o Plan loan processing, if applicable.
For an additional fee, we will also, based on information submitted by
employers, send distribution of plan benefits and withdrawals to participants,
including tax withholding and reporting to the IRS. Employers who elect this
service must enter into a written agreement with Equitable Life. The written
agreement specifies the fees for this service.
Full-service recordkeeping option
A full-service recordkeeping option is available for employers who adopt
the Master Plan and Trust. Under this option, we will provide the following plan
recordkeeping services in addition to the services described above:
o Master Plan and Trust documents approved by the IRS;
o Assistance in interpreting the Master Plan and Trust, including
plan installation and ongoing administrative support;
o Assistance in annual reporting with the IRS and DOL;
o Plan administration manual and forms (including withdrawal,
transfer, loan processing, and account allocation forms);
o Performance of vesting calculations;
o Performance of special nondiscrimination tests applicable to
Internal Revenue Code Section 401(k) plans;
o Tracking of hardship withdrawal amounts in Internal Revenue Code
Section 401(k) plans; and
o Direct distribution of plan benefits and withdrawals to
participants, including tax withholding and reporting to the IRS.
Employers or plan trustees who elect the full-service recordkeeping option
must sign a plan recordkeeping services agreement. This agreement specifies the
fees for the recordkeeping services and describes any additional services that
we will provide.
Charges and Expenses
Charges that Equitable Life deducts
We deduct the following charges each day from the net assets of each
variable investment option. These charges are reflected in the unit value of
each variable investment option:
o A mortality and expense risk charge.
o An expense charge.
We deduct the following charges from each retirement account value. When
we deduct these charges, the number of units is reduced. Any portion of the
charge deducted from the guaranteed interest option is withdrawn in dollars:
o A quarterly administrative charge.
o A withdrawal charge when you make certain withdrawals.
o A loan set-up charge when a plan loan is made.
o A recordkeeping charge on the last business day of each calendar
quarter if there is an active loan.
o Charges for applicable taxes such as state premium and other taxes
when annuity payments are to begin.
o An annuity administrative fee may also apply.
We also bill the employer directly an annual charge for plan recordkeeping
services. More information about these charges appears below.
Charges to variable investment options
We deduct a daily charge from the net assets in each variable investment
option to compensate us for, expense risks, mortality risks, and expenses. We
deduct this charge daily at a guaranteed maximum annual rate of 1.35% for each
variable investment option. The charge is 0.50% for mortality risks, 0.60% for
expense risks and 0.25% for expenses.
The expense risk we assume is the risk that, over time, our actual expense
of administering the contract will exceed the amounts we realize from the
quarterly administrative expense charge, the 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 depend on the life of an
annuitant. We intend the charge for expenses to reimburse us for our costs in
providing administrative services under the contract.
To the extent the above charges are not needed to cover the actual
expenses incurred, they may be considered an indirect reimbursement for certain
sales and promotional expenses relating to the contract.
Quarterly administrative charge
On the last business day of each calendar quarter, we deduct an
administrative charge from each retirement account value. The charge is
currently equal to $7.50 or, if less, 0.50% of the total of the retirement
account value plus the amount of any active loan. We deduct this charge from
each variable investment option in a specified order based on the source of the
contributions. We describe how we deduct this charge in more detail under "How
We Deduct the Quarterly Administrative Charge" in the SAI.
We will waive this charge 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, 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. We reserve the right to increase this charge if our
administrative costs increase. We will give employers or plan trustees 90 days
written notice of any increase.
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 payment from the employer.
Charge for plan recordkeeping services
The annual charge for the basic plan recordkeeping option is $300
(prorated in the first year). We will bill this charge directly to the employer.
This charge may be waived in certain cases. Employers may enter into a written
agreement with us for direct distribution of plan benefits and withdrawals to
participants, including tax withholding and reporting to the IRS. We currently
charge a $25 checkwriting fee for each check drawn under the service. We reserve
the right to increase these charges if our plan recordkeeping cost increase. We
will give employers or plan trustees 90 days written notice of any increase.
There are additional charges if the employer or plan trustee elects to use
our full-service plan recordkeeping option. The additional charges will be set
out in the recordkeeping services agreement and will depend on the service used.
Withdrawal charge
We do not deduct a sales charge from contributions. However, we assess a
charge on amounts withdrawn from retirement account values to help pay the
various sales and promotional expenses incurred in selling the contract. The
withdrawal charge does not apply after the employer's plan has participated in
the contract for five years.
Unless the employer's plan has participated in the contract for five
years, we deduct a withdrawal charge for:
o in-service withdrawals that are direct rollovers to an individual
retirement account or another qualified plan not funded by an
Equitable Life contract;
o in-service withdrawals from the variable investment options
following a plan termination;
o in-service withdrawals from the guaranteed interest option following
a plan termination if the market value adjustment is less than the
withdrawal charge; and
o surrenders following a contract termination.
Hardship withdrawals are never subject to a contingent withdrawal charge.
In order to provide the exact dollar amount of the withdrawal you request,
we deduct the amount of the withdrawal and the amount of any withdrawal charges
from your retirement account value. Any amount deducted to pay a withdrawal
charge is also subject to a withdrawal charge.
The withdrawal charge is 6% of the amount withdrawn or, if less, 8.5% of
contributions made on behalf of the participant.
Forfeited retirement account value. If a portion of your retirement
account value is forfeited under the terms of your plan, we will assess a
withdrawal charge only against vested contribution amounts. Under the basic plan
recordkeeping option, the plan trustee must tell us the vested balance. No
withdrawal charge applies to money in the forfeiture account that is reallocated
to participant accounts. However, if you, as the employer or plan trustee,
withdraw the forfeited amount from the contract before it is reallocated to
other participants, we will charge you the balance of the withdrawal charge at
that time.
We will waive the withdrawal charge if:
o the amount withdrawn is applied to the election of a life annuity
payout option;
o you die, retire or become disabled;
o you have separated from service (see Section 402(d)(4)(A) of the
Internal Revenue Code as in effect under the Tax Reform Act of 1986);
o the amount withdrawn is intended to satisfy the Internal Revenue
Code's minimum distribution requirements (Section 401(a)(9))
applicable after you turn age 70 1/2;
o the amount withdrawn is defined as a "hardship withdrawal" pursuant
to Treasury Regulation 1.401(k)-1(d)(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 Section 401(k)(8)(B) and 401(m)(6)(B),
respectively, of the Internal Revenue Code, including any gains or
losses, and the withdrawal is made no later than the end of the plan
year following the plan year for which such contributions were made;
o the amount withdrawn is a request for a refund of "excess deferrals"
as such term is defined in Section 402(g)(2) of the Internal Revenue
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 contributions were made
and such withdrawal does not include any earnings attributable to
such contributions; or
o the amount withdrawn is a request for a refund of contributions that
the employer disallowed as a deduction for Federal income tax
purposes, provided such withdrawal is made within 12 months after
the disallowance and such withdrawal does not include any earnings
attributable to such contributions.
Plan loan charges
We will deduct a $25 charge from your retirement account value when 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. An active loan is the principal amount of
any participant plan loan that has neither been repaid nor considered
distributed under Section 72(p) of the Internal Revenue Code.
We intend these charges to reimburse us for the added administrative costs
associated with processing loans. The $6 per-quarter recordkeeping charge (but
not the $25 set-up charge) will apply to takeover loans.
Your employer may elect to pay these charges. 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.
Charges for state premium and other applicable taxes
We deduct a charge for applicable taxes such as state premium taxes that
may be imposed in your state. Currently, we deduct the charge from the amount
applied to provide an annuity payout option. The current tax charge that might
be imposed varies by state and ranges from 0% to 2.25%. The rate is 1% in Puerto
Rico and 5% in the U.S. Virgin Islands.
We reserve the right to deduct any such charge from each contribution or
from distributions or upon termination. If we deduct any applicable tax charges
from contributions, we will not deduct a charge for the same taxes at a later
time. If, however, we are charged an additional tax when you make a partial or
full withdrawal, your contract terminates, is terminated ,or you begin receiving
annuity payments, we reserve the right to deduct a charge at that time.
Charges that the trusts deduct
The Hudson River Trust and EQ Advisors Trust each deducts charges for the
following types of fees and expenses:
o Investment advisory fees ranging from 0.31% to 1.15%.
o 12b-1 fees of 0.25% (Portfolios of the EQ Advisors Trust only).
o Operating expenses, such as trustees' fees, independent auditors'
fees, legal counsel fees, custodian fees, and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each Portfolio.
Since shares of each trust are purchased at their net asset value, these fees
and expenses are, in effect, passed on to the variable investment options and
reflected in their unit values. For more information about these charges, please
refer to the prospectuses of The Hudson River Trust and EQ Advisors Trust.
Charge reductions under special circumstances
Subject to any necessary governmental or regulatory approvals, we may
reduce or eliminate the withdrawal charge, daily charges against the net effects
of the variable investment options, quarterly administrative charge, separate
account annual expense charge, loan charges and basic plan recordkeeping fee for
a particular plan participating under the contract when sales are made in a
manner that results in savings of sales and administrative expenses. Whether we
reduce or eliminate such charges for a particular plan will depend on factors
such as the number of participants, performance of sales or administrative
functions by the employer or plan administrator, frequency of contributions or
the use of automated techniques in transmitting data.
Payment of Death Benefit
Death benefit amount
The death benefit is equal to the retirement account value, unless
payments under an annuity payout option have already begun.
If the participant dies while a loan is outstanding, the loan will
automatically default and be subject to federal income tax as a plan
distribution.
Distribution of the death benefit
If a participant dies before the entire benefit has been paid, the
remaining benefits will be paid to the participant's beneficiary. If a
participant dies before he or she begins receiving benefits, the law generally
requires the entire benefit to be distributed no more than five years after
death. There are exceptions:
(1) A beneficiary who is not the participant's spouse may elect payments
over his or her life or a fixed period which does not exceed the
beneficiary's life expectancy, provided payments begin within one
year of death, or
(2) if the benefit is payable to the spouse, the spouse may elect to
receive benefits over his or her life or a fixed period which does
not exceed his/her life expectancy beginning any time up to the date
the participant would have turned age 70 1/2.
If you die before your entire vested benefit has been distributed to you,
the remainder of your benefit will be payable to your beneficiary.
Under the Master Plan and Trust and the Pooled Trust, on the day we
receive due proof of death, we automatically transfer the participant's
retirement account value to the default option unless the beneficiary gives us
other written instructions. We hold all monies in the default option until your
beneficiary requests a distribution or transfer.
To designate a beneficiary or to change an earlier designation, you must
have the employer send us a beneficiary designation form. Your spouse must
consent in writing to a designation of any non-spouse beneficiary, as explained
under "Tax Information."
Beneficiary's payment options
The beneficiary may elect to:
(a) receive the death benefit in a single sum,
(b) apply the death benefit to an annuity payout option we offer,
(c) apply the death benefit to provide any other form of benefit payment
we offer, or
(d) have the death benefit credited to an account under the Momentum
Plus contract maintained on behalf of the beneficiary in accordance
with the beneficiary's investment allocation instructions. The
beneficiary's choices may be limited by the terms of the plan, our
rules in effect at the time and federal income tax rules.
If the beneficiary elects the last option 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 federal income
tax rules; and
(2) we will determine the value of the beneficiary's account at
the time of distribution to the beneficiary which, depending
upon investment gains or losses, may be worth more or less
than the value of the beneficiary's initial account.
Tax Information
Employer retirement plans that may qualify for tax-favored treatment are
governed by the provisions of the Internal Revenue Code and ERISA. The Internal
Revenue Code is administered by the IRS. ERISA is administered primarily by the
DOL.
Provisions of the Internal Revenue 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 Internal Revenue Code and
ERISA.
This prospectus does not provide detailed tax or ERISA information. The
following discussion briefly outlines the Internal Revenue 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 Internal Revenue 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. Any such change could have
retroactive effects regardless of the date of enactment.
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.
Because you are buying a contract to fund a retirement plan that already
provides tax deferral, you should do so for the contract's features and benefits
other than tax deferral. The tax deferral of the contract does not provide
additional benefits.
The provisions of the Internal Revenue Code and ERISA are highly complex.
For complete information on these provisions, as well as all other federal,
state, local and other tax considerations, qualified legal and tax advisers
should be consulted.
Tax aspects of contributions to a plan
Corporations, partnerships and self-employed individuals can establish
qualified plans for the working owners and their employees who participate in
the plan. Both employer and employee contributions to these plans are subject to
a variety of limitations, some of which are discussed here briefly. See your tax
adviser for more information. Violation of contribution limits may result in
plan disqualification and/or imposition of monetary penalties. The trustee or
plan administrator may make contributions on behalf of the plan participants
which are deductible from the employer's Federal gross income. Employer
contributions which exceed the amount currently deductible are subject to a 10%
penalty tax.
The limits on the amount of contributions that can be made and/or
forfeitures that can be allocated to each participant in defined contribution
plans is the lesser of $30,000 or 25% of the compensation or earned income for
each participant. In 1999, the employer may not consider compensation in excess
of $160,000 in calculating contributions to the plan. This amount may be
adjusted for cost-of-living changes in future years. For self-employed
individuals, earned income is defined so as to exclude deductible contributions
made to all tax-qualified retirement plans, including Keogh plans, and takes
into account the deduction for one-half the individual's self-employment tax.
Deductions for aggregate contributions to profit-sharing plans may not exceed
15% of all participants' compensation.
Special limits on contributions apply to anyone who participates in more
than one qualified plan or who controls another trade or business. In addition,
there is an overall limit on the total amount of contributions and benefits
under all tax-qualified retirement plans in which an individual participates.
Special limits on deductions for contributions to one or more defined
contribution plans and one or more defined benefit plans are in effect through
1999, but will be eliminated thereafter.
A qualified plan may allow the participant to direct the employer to make
contributions which will not be included in the employee's income ("elective
deferrals") by entering into a salary reduction agreement with the employer
under Section 401(k) of the Internal Revenue 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:
(1) attainment of age 59 1/2,
(2) death,
(3) disability,
(4) certain business dispositions and plan terminations, or
(5) 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 ($10,000 as
indexed for inflation in 1999) under all salary reduction arrangements with all
employers in which the individual participates.
Employer matching contributions to a 401(k) plan for self-employed
individuals are no longer treated as elective deferrals, and are treated the
same as employer matching contributions for other employees. That is, they are
not subject to elective deferral limits.
A qualified plan must not discriminate in favor of highly compensated
employees. Two special nondiscrimination rules limit contributions and benefits
for highly compensated employees in the case of (1) a 401(k) plan and (2) any
defined contribution plan, whether or not a 401(k) plan, which provides for
employer matching contributions to employee post-tax contributions or elective
deferrals. 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 are available.
Highly compensated participants include five percent owners and employees
earning more than $80,000 for the prior year. (If desired, the latter group can
be limited to employees who are in the top 20% of all employees based on
compensation.) 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."
Certain 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.
Effective January 1, 1999 employers may adopt a safe harbor 401(k)
arrangement. Under this arrangement, an employer agrees to offer a matching
contribution equal to (a) 100% of salary deferral contributions up to 3% of
compensation and (b) 50% of salary deferral contributions that exceed 3% but are
less than 5% of compensation. These contributions must be non-forfeitable. If
the employer makes these contributions and gives proper notification, the plan
is not subject to non-discrimination testing on salary deferral and above
contributions.
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 Internal Revenue
Code, may not be deductible by the employer for a particular taxable year if the
plan contributions are attributable to compensation earned by a participant
after the end of the taxable year.
Tax aspects of distributions from a plan
Amounts held under qualified plans are generally not subject to Federal
income tax until benefits are distributed to the participant or other recipient.
In addition, there will not be any tax liability for transfers of any part of
the retirement account value among the investment options.
The various types of benefit payments include withdrawals, annuity
payments and lump sum distributions. Each benefit payment made to the
participant or other recipient is generally fully taxable as ordinary income. An
exception to this general rule is made, however, to the extent a distribution is
treated as a recovery of post-tax contributions made by the participant.
In addition to income tax, the taxable portion of any distribution may be
subject to a 10% penalty tax. See "Penalty Tax on Premature Distributions" in
this section.
Income taxation of withdrawals
The amount of any distribution prior to the annuity starting date is
treated as ordinary income except to the extent the distribution is treated as a
withdrawal of post-tax contributions. Withdrawals from a qualified plan are
normally treated as pro rata withdrawals of post-tax contributions and earnings
on those contributions. If the plan allowed withdrawals prior to separation from
service as of May 5, 1986, however, all post-tax contributions made prior to
January 1, 1987 may be withdrawn tax free prior to withdrawing any taxable
amounts.
As discussed in this section in "Certain Rules Applicable to Plan Loans,"
taking a loan or failing to repay an outstanding loan as required may, in
certain situations, be treated as a taxable withdrawal.
Income taxation of annuity payments
In the case of a distribution in the form of an annuity, the amount of
each annuity payment is treated as ordinary income except where the participant
has a cost basis in the annuity.
The cost basis is equal to the amount of after-tax contributions, plus any
employer contributions that had to be included in gross income in prior years.
If the participant has a cost basis in the annuity, a portion of each payment
received will be excluded from gross income to reflect the return of the cost
basis. The remainder of each payment will be includable in gross income as
ordinary income. The excludable portion is based on the ratio of the
participant's cost basis in the annuity on the annuity starting date to the
expected return, 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 within one taxable year of the recipient and must be
made:
o after the participant has reached age 59 1/2 ,or
o 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 distribution
Many types of distributions from qualified plans are "eligible rollover
distributions" that can be rolled over directly to another qualified plan or a
traditional 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 falls within the following list
of exceptions:
o One of a series of substantially equal periodic payments is made
(not less frequently than annually):
(a) 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
(b) for a specified period of ten years or more.
o nondeductible voluntary contributions;
o a hardship withdrawal
o any distribution to the extent that it is a required distribution
under Section 401(a)(9) of the Internal Revenue 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 Internal Revenue Code;
o loans that are treated as deemed distributions under Section 72(p)
of the Internal Revenue 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 Internal Revenue Code; and
o a distribution to a non-spousal beneficiary.
If a distribution is made to a participant's surviving spouse, or to a
current or former spouse under a qualified domestic relations order, the
distribution may be an eligible rollover distribution, subject to mandatory 20%
withholding, unless one of the exceptions described above applies.
If distributions eligible for rollover are in fact rolled over, the
favorable averaging rules discussed above in "Income Taxation of Lump Sum
Distributions" will not be available for any future distributions made before
2000.
Penalty tax on premature distributions
An additional 10% penalty tax is imposed on all taxable amounts
distributed to a participant who has not reached age 59 1/2 unless the
distribution falls within a specified exception or is rolled over into an IRA or
other qualified plan. The specified exceptions are for:
(a) distributions made on account of the participant's death or
disability,
(b) distributions (which begin after separation from service) in the
form of a life annuity 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 traditional IRA.
See the description in this section of "Eligible Rollover Distributions."
For all other distributions, federal income tax must also be withheld on
the taxable portion of pension and annuity payments, unless the recipient is
eligible to elect out and elects out of withholding. The rate of withholding
will depend on the type of distribution and, in certain cases, the amount of the
distribution. Special rules may apply to foreign recipients, or United States
citizens residing outside the United States. If a recipient does not have
sufficient income tax withheld, or make sufficient estimated income tax
payments, the recipient may incur penalties under the estimated income tax
rules. Recipients should consult their tax advisers to determine whether they
should elect out of withholding.
Requests not to withhold federal income tax must be made in writing prior
to receiving payments and submitted in accordance with the terms of the employer
plan. No election out of withholding is valid unless the recipient provides the
recipient's correct Taxpayer Identification Number and a U.S. residence address.
State income tax withholding
Certain states have indicated that pension and annuity withholding will
apply to payments made to residents of such states. In some states a recipient
may elect out of state income tax withholding, even if Federal withholding
applies. It is not clear whether such states may require mandatory withholding
with respect to eligible rollover distributions that are not rolled over (as
described in this section under "Eligible Rollover Distributions"). Contact your
tax adviser to see how state withholding may apply to your payment.
Distribution requirements
Distributions from qualified plans generally must commence no later than
April 1 of the calendar year following the calendar year in which the
participant reaches 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 Internal Revenue Code,
Treasury Regulations and IRS guidelines.
If the participant dies after required distribution has begun, payment of
the remaining interest under the plan must be made at least as rapidly as under
the method used prior to the participant's death. If a participant dies before
required distribution has begun, payment of the entire interest under the plan
must be completed within five years after death, unless payments to a designated
beneficiary begin within one year of the participant's death and are made over
the beneficiary's life or over a period certain which does not extend beyond the
beneficiary's life expectancy. If the surviving spouse is the designated
beneficiary, the spouse may delay the commencement of such payments up until the
date that the participant would have attained age 70 1/2. Distributions received
by a beneficiary are generally given the same tax treatment the participant
would have received if distribution had been made to the participant.
If there is an insufficient distribution in any year, a 50% tax may be
imposed on the amount by which the minimum required to be distributed exceeds
the amount actually distributed. Failure to have distributions made as the
Internal Revenue Code and Treasury Regulations require may result in plan
disqualification.
Spousal requirements
In the case of many corporate and Keogh plans, if a participant is married
at the time benefit payments become payable, unless the participant elects
otherwise with written consent of the spouse, the benefit must be paid in the
form of a qualified joint and survivor annuity (QJSA). A QJSA is an annuity
payable for the life of the participant with a survivor annuity for the life of
the spouse in an amount which is not less than one-half of the amount payable to
the participant during his or her lifetime. In addition, most plans require that
a married participant's beneficiary must be the spouse, unless the spouse
consents in writing to the designation of a different beneficiary.
Certain rules applicable to plan loans
The following are Federal tax and ERISA rules that apply to loan
provisions of all employer plans. Employer plans may have additional
restrictions. Employers and participants should review these matters with their
own tax advisers before requesting a loan. There will not generally be any tax
liability with respect to properly made loans in accordance with an employer
plan. A loan may be in violation of applicable provisions unless it complies
with the following conditions:
o With respect to specific loans made by the plan to a plan
participant, the plan administrator determines the interest rate,
the maximum term and all other terms and conditions of the loan;
o In general, the term of the loan cannot exceed five years unless
the loan is used to acquire the participant's primary residence;
o All principal and interest must be amortized in substantially
level payments over the term of the loan, with payments being
made at least quarterly;
o The amount of a loan to a participant, when aggregated with all
other loans to the participant from all qualified plans of the
employer, cannot exceed the greater of $10,000 or 50% of the
participant's non-forfeitable accrued benefits, and cannot exceed
$50,000 in any event. This $50,000 limit is reduced by the excess
(if any) of the highest outstanding loan balance over the
previous twelve months over the outstanding balance of plan loans
on the date the loan was made;
o For loans made prior to January 1, 1987 and not renewed,
modified, renegotiated or extended after December 31, 1986, the
$50,000 maximum aggregate loan balance is not required to be
reduced, the quarterly amortization requirement does not apply,
and the term of a loan may exceed five years if used to purchase
the principal residence of the participant or a member of his or
her family, as defined in the Internal Revenue 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;
If the loan does not qualify under the conditions above, the participant
fails to repay the interest or principal when due, or in some instances, if the
participant separates from service or the plan is terminated, the amount
borrowed or not repaid may be treated as a distribution. The participant may be
required to include as ordinary income the unpaid amount due and a 10% penalty
tax on early distributions may apply. The plan should report the amount of the
unpaid loan balance to the IRS as a distribution. See "Tax Aspects of
Distributions from a Plan" in this section; and
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 rules, Equitable Life does not pay tax
on investment income and capital gains of the variable investment options if
they 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 variable investment options and it does not currently
impose a charge for federal income tax on this income when it computes unit
values for the variable investment options. If changes in federal tax laws or
interpretations thereof would result in us being taxed, then we may impose a
charge against the variable investment options (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
representatives shall not be responsible if a plan fails to meet the
requirements of Section 404(c).
More Information
About Separate Account A
Each variable investment option is a subaccount of our Separate Account A.
We established Separate Account A in 1968 under special provisions of the New
York Insurance Law. These provisions prevent creditors from any other business
we conduct from reaching the assets we hold in our variable investment options
for owners of our variable annuity contracts, including these contracts. We are
the legal owner of all of the assets in Separate Account A and may withdraw any
amounts that exceed our reserves and other liabilities with respect to variable
investment options under our contracts. The results of Separate Account A's
operations are accounted for without regard to Equitable Life's other
operations.
Separate Account A is registered under the Investment Company Act of 1940
and is classified by that act as a "unit investment trust." The SEC, however,
does not manage or supervise Equitable Life or Separate Account A.
Each subaccount (variable investment option) within Separate Account A
invests solely in Class IA or Class IB shares issued by the corresponding
Portfolio of The Hudson River Trust and EQ Advisors Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable
investment options from, Separate Account A, or to add other
separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment
option to another variable investment option;
(4) to operate Separate Account A or any variable investment option as a
management investment company under the Investment Company Act of
1940 (in which case, charges and expenses that otherwise would be
assessed against an underlying mutual fund would be assessed against
Separate Account A or a variable investment option directly);
(5) to deregister Separate Account A under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to Separate Account A;
and
(7) to cause one or more variable investment options to invest some or
all of their assets in one or more other trusts or investment
companies.
We will notify Momentum Plus employers if any changes result in a material
change in the underlying investments of a variable investment option. We may
make other changes in the contracts that do not reduce any annuity benefit,
retirement account value or other accrued rights or benefits.
About The Hudson River Trust and EQ Advisors Trust
The Hudson River Trust and EQ Advisors Trust are registered under the
Investment Company Act of 1940. They are classified as "open-end management
investment companies," more commonly called mutual funds. Each trust issues
different shares relating to each Portfolio.
The Hudson River Trust and EQ Advisors Trust do not impose sales charges
or "loads" for buying and selling their shares. All dividends and other
distributions on a trust's shares are reinvested in full. The Board of Trustees
of each The Hudson River Trust and EQ Advisors Trust may establish additional
Portfolios or eliminate existing Portfolios at any time. More detailed
information about The Hudson River Trust and EQ Advisors Trust, their investment
objectives, policies, restrictions, risks, expenses, multiple class distribution
systems, the Rule 12b-1 plan relating to the Class IB shares of EQ Advisors
Trust, and other aspects of their operations, appears in their prospectuses, or
in their SAIs, which is available upon request.
About the general account
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option, as well as our
general obligations.
The general account is subject to regulation and supervision by the
Insurance Department of the State of New York and to the insurance laws and
regulations of all jurisdictions where we are authorized to do business. Because
of exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
We have been advised that the staff of the SEC has not reviewed the
portions of this prospectus that relate to the general account. The disclosure,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
Dates and prices at which contract events occur
We describe below the general rules for when, and at what prices, events
under your contract will occur. Other portions of this prospectus describe
circumstances that give rise to exceptions. We generally do not repeat those
exceptions below.
Business day
Our "business day" is any day on which Equitable Life is open and the New
York Stock Exchange is open for trading. We are closed on national business
holidays including Martin Luther King, Jr. Day and the Friday after
Thanksgiving. Additionally, we may chose 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. Our business day ends at 4:00 p.m., Eastern
Time for purposes of determining the date when contributions are applied and any
other transaction requests are processed. Contributions will be applied and any
other transaction requests will be processed when they are received along with
all the required information unless another date applies as indicated below.
o If your contribution, transfer or any other transaction request,
containing all the required information, reaches us on a
non-business day or after 4:00 on a business day, we will use the
next business day.
o If your transaction is set to occur on the same day of the month as
the participation date and that date is the 29th, 30th or 31st of
the month, then the transaction will occur on either the 28th day of
the month or the 1st day of the next month, whichever is the closest
business day.
Contributions and transfers
o Contributions allocated to the variable investment options are
invested at the unit value next determined after the close of the
business day.
o Contributions allocated to the guaranteed interest option will
receive the guaranteed interest rate in effect on that business day.
o Transfers to or from variable investment options will be made at the
unit value next determined after the close of the business day.
o Transfers to the guaranteed interest option will receive the
guaranteed interest rate in effect on that business day.
o For the fixed-dollar option and the interest sweep option, the first
monthly transfer will occur on the last business day of the month in
which we receive your election form at our Processing Office.
About your voting rights
As the owner of the shares of The Hudson River Trust and EQ Advisors Trust
we have the right to vote on certain matters involving the Portfolios, such as:
o The election of trustees.
o The formal approval of independent auditors selected for each trust.
o Any other matters described in the prospectuses for the Trusts or
requiring a shareholders' vote under the Investment Company Act of
1940.
Because The Hudson River Trust is a Massachusetts business trust, and EQ
Advisors Trust is a Delaware trust, annual meetings are not required. We will
give participants or plan trustees, as applicable, the opportunity to instruct
us how to vote the number of shares attributable to their retirement account
values if a shareholder vote is taken. If we do not receive instructions in time
from all participants or plan trustees, as applicable, we will vote the shares
of a Portfolio for which no instructions have been received in the same
proportion as we vote shares of that Portfolio for which we have received
instructions. We will also vote any shares that we are entitled to vote directly
because of amounts we have in a Portfolio in the same proportions that
participants or plan trustees, as applicable, vote.
Voting rights of others
Currently, we control each trust. EQ Advisors Trust shares are sold only
to our separate accounts and an affiliated qualified plan trust. The Hudson
River Trust shares are held by other separate accounts of ours and by separate
accounts of insurance companies 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 the participants
and plan trustees, we currently do not foresee any disadvantages because of
this. The Hudson River Trust Board of Trustees intends to monitor events in
order to identify any material irreconcilable conflicts that may arise and to
determine what action, if any, should be taken in response. If we believe that a
response to any of those events insufficiently protects our participants, we
will see to it that appropriate action is taken.
Separate Account A voting rights
If actions relating to Separate Account A require participant approval or
plan trustee, participants or plan trustees will be entitled to one vote for
each unit they have in the variable investment options. Each participant who has
elected a variable annuity payout option may cast the number of votes equal to
the dollar amount of reserves we are holding for that annuity in a variable
investment option divided by the unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by participants or plan trustees, as applicable.
Changes in applicable law
The voting rights we describe in this prospectus are created under
applicable federal securities laws. To the extent that those laws or the
regulations published 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.
IRS disqualification
If a retirement plan funded by the contract is found not to qualify under
federal income tax rules, we may terminate your participation in the Momentum
Plus program and pay you, the plan trustee, or other designated person, the
retirement account balance. We will, however, make a deduction for any federal
income tax payable by us because of the non-qualification.
About our Year 2000 progress
Equitable Life relies upon various computer systems in order to administer
your contract and operate the investment options. Some of these systems belong
to service providers who are not affiliated with Equitable Life.
In 1995, Equitable Life began addressing the question of whether its
computer systems would recognize the year 2000 before, on or after January 1,
2000, and Equitable Life has identified those of its systems critical to
business operations that were not year 2000 compliant. By year end 1998, the
work of modifying or replacing non-compliant systems was substantially
completed. Equitable Life has begun comprehensive testing of its year 2000
compliance and expects that the testing will be substantially completed by June
30, 1999. Equitable Life has contacted third-party service providers to seek
confirmation that they are acting to address the year 2000 issue with the goal
of avoiding any material adverse effect on services provided to contract owners
and on operations of the investment options. Most third-party service providers
have provided Equitable Life confirmation of their year 2000 compliance.
Equitable Life believes it is on schedule for substantially all such systems and
services, including those considered to be mission-critical, to be confirmed as
year 2000 compliant, renovated, replaced or the subject of contingency plans, by
June 30, 1999, except for one investment accounting system which is scheduled to
be replaced by August 31, 1999 and confirmed as year 2000 compliant by September
30, 1999. Additionally, Equitable Life will be supplementing its existing
business continuity and disaster recovery plans to cover certain categories of
contingencies that could arise as a result of year 2000 related failures. Year
2000 specific contingency plans are anticipated to be in place by June 30, 1999.
There are many risks associated with year 2000 issues, including the risk
that Equitable Life's computer systems will not operate as intended.
Additionally, there can be no assurance that the systems of third parties will
be year 2000 compliant. Any significant unresolved difficulty related to the
year 2000 compliance initiatives could result in an interruption in, or a
failure of, normal business operations and, accordingly, could have a material
adverse effect on our ability to administer your contract and operate the
investment options.
To the fullest extent permitted by law, the foregoing year 2000 discussion
is a "Year 2000 Readiness Disclosure" within the meaning of The Year 2000
Information and Readiness Disclosure Act, 15 U.S.C. Sec. 1 (1998).
About legal proceedings
Equitable Life and its affiliates are parties to various legal
proceedings. In our view, none of these proceedings is likely to have a material
adverse effect upon the Separate Account, our ability to meet our obligations
under the contracts, or the contracts' distribution.
About our independent accountants
The financial statements of Separate Account A as of December 31, 1998 and
for the two years in the period ended December 31, 1998 and the financial
statements of Equitable Life as of December 31, 1998 and 1997 and for the three
years ended December 31, 1998 included in the SAI have been so included in
reliance on the reports of PricewaterhouseCoopers LLP, given on the authority of
said firm as experts in auditing and accounting.
Investment Performance
We provide the following tables to show five different measurements of the
investment performance of the variable investment options and/or the Portfolios
in which they invest. We include these tables because they may be of general
interest to you. The results shown reflect past performance. They do not
indicate how the variable investment options may perform in the future. They
also do not represent the results earned by any particular investor. Your
results will differ.
Table 1 shows the average annual total return of the variable investment
options. Average annual total return is the annual rate of growth that would be
necessary to achieve the ending value of a contribution invested in the variable
investment option for the period shown.
Table 2 shows the growth of a hypothetical $1,000 investment in the
variable investment options over the periods shown. Both Tables 1 and 2 take
into account all fees and charges under the contract, including the quarterly
administrative charge and the withdrawal charges and expenses, but does not take
the charges for any applicable taxes such as premium taxes, or any applicable
annuity administrative fee, into account.
Tables 3, 4 and 5 show the rates of return of the variable investment
options on an annualized, cumulative, and year-by-year basis. These tables take
into account all fees and charges under the contract, but do not reflect the
quarterly administrative charge, any withdrawal charge, or the charges for any
applicable taxes such as premium taxes, or any applicable annuity administrative
fee. If the charges were reflected they would effectively reduce the rates of
return shown.
The plan recordkeeping fee is not reflected in any of the Tables because
your employer is billed directly for this fee.
In all cases the results shown are based on the actual historical
investment experience of the Portfolio in which the variable investment option
invests. In some cases, the results shown relate to periods when the variable
investment options and/or the contract were not available. In those cases, we
adjusted the results of the Portfolios to reflect the charges under the contract
that would have applied had the investment options and/or contract been
available.
Finally, the results shown for the Alliance Money Market, Alliance
Balanced, Alliance Common Stock and Alliance Aggressive Stock options for
periods before those options were operated as part of a unit investment trust
has been adjusted to reflect the investment advisory fee and expense structure
that became applicable to Separate Account A, as a unit investment trust. See
"The Reorganization" in the SAI for additional information.
All rates of return presented are time-weighted and include reinvestment
of investment income, including interest and dividends.
Benchmarks
Tables 3 and 4 compare the performance of variable investment options to
market indices that serve as benchmarks. Market indices are not subject to any
charges for investment advisory fees, brokerage commission or other operating
expenses typically associated with a managed portfolio. Also, they do not
reflect other charges such as the mortality and expense risks charge,
administration charge, or any withdrawal or optional benefit charge, under the
contracts. Comparisons with these benchmarks, therefore, may be of limited use.
We include them because they are widely known and may help you to understand the
universe of securities from which each Portfolio is likely to select its
holdings. Benchmark data reflect the reinvestment of dividend income. The
benchmarks include:
Alliance Money Market: Salomon Brothers Three-Month T-Bill Index.
Alliance Intermediate Government Securities: Lehman Intermediate Government Bond
Index.
Alliance Quality Bond: Lehman Aggregate Bond Index.
Alliance High Yield: Merrill Lynch High Yield Master Index.
Alliance Growth & Income: 75% Standard & Poor's 500 Index and 25% Value Line
Convertibles Index.
Alliance Equity Index: Standard & Poor's 500 Index.
Alliance Common Stock: Standard & Poor's 500 Index.
Alliance Global: Morgan Stanley Capital International World Index.
Alliance International: Morgan Stanley Capital International Europe, Australia,
Far East Index.
Alliance Aggressive Stock: 50% Russell 2000 Small Stock Index and 50% Standard &
Poor's Mid-Cap Total Return Index.
Alliance Small Cap Growth: Russell 2000 Growth Index.
Alliance Conservative Investors: 70% Lehman Treasury Bond Composite Index and
30% Standard & Poor's 500 Index.
Alliance Balanced: 50% Standard & Poor's 500 and 50% Lehman Government/Corporate
Bond Index.
Alliance Growth Investors: 30% Lehman Government/Corporate Bond Index and 70%
Standard & Poor's 500 Index.
T. Rowe Price International Stock: Morgan Stanley Capital International Europe,
Australia, Far East Index.
T. Rowe Price Equity Income: Standard & Poor's 500 Index.
EQ/Putnam Growth & Income Value: Standard & Poor's 500 Index.
EQ/Putnam Balanced: 60% Standard & Poor's 500 Index and 40% Lehman
Government/Corporate Bond Index.
MFS Research: Standard & Poor's 500 Index.
MFS Emerging Growth Companies: Russell 2000 Index.
Morgan Stanley Emerging Markets Equity: Morgan Stanley Capital International
Emerging Markets Free Price Return Index.
Warburg Pincus Small Company Value: Russell 2000 Index.
Merrill Lynch World Strategy: 36% Standard & Poor's 500/24% Morgan Stanley
Capital International Europe, Australia, Far East/21% Salomon Brothers U.S.
Treasury Bond 1 Year+/14% Salomon Brothers World Government Bond Ex U.S./5%
3-Month U.S. T-Bill.
Merrill Lynch Basic Value Equity: Standard & Poor's 500 Index.
Lipper Survey. The Lipper Variable Insurance Products Performance Analysis
Survey ("Lipper Survey") records the performance of a large group of variable
annuity 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 annuity contracts. Lipper data provide a more accurate picture
than market benchmarks of the Momentum Plus program performance relative to
other variable annuity products.
<TABLE>
<CAPTION>
Table 1
Average annual total return under a contract surrendered on December 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Length of investment period
------------------------------------------------------------------------------------------------
Since Since Portfolio
One Three Five Ten option portfolio inception
Variable Investment Options year years years years inception* inception date
- ----------------------------- ------------- ------------ ------------- ----------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Alliance Aggressive Stock (8.85)% 4.89% 6.50% 15.89% -- -- 5/1/84
Alliance Balanced 7.35% 8.82% 5.83% 9.08% -- -- 5/1/84
Alliance Common Stock 17.60% 21.59% 17.17% 15.18% -- -- 8/1/68
Alliance Conservative
Investors 3.51% 4.85% 4.47% -- 4.56% 6.39% 10/2/89
Alliance Equity Index 16.41% 21.61% -- -- 21.12% 19.52% 3/1/94
Alliance Global 10.70% 9.78% 9.33% 11.36% -- -- 8/27/87
Alliance Growth & Income 9.85% 16.47% 12.98% -- 13.10% 13.06% 10/1/93
Alliance Growth Investors 8.28% 10.00% 8.97% -- 9.15% 12.67% 10/2/89
Alliance High Yield (13.79)% 5.47% 5.05% 7.67% -- -- 1/2/87
Alliance Intermediate
Government Securities (2.07)% 0.64% 0.65% -- 1.70% 3.55% 4/1/91
Alliance International 0.50% 0.00% -- -- 0.93% 2.07% 4/3/95
Alliance Money Market (4.26)% (0.21)% 0.44% 2.11% -- -- 5/11/82
Alliance Quality Bond (1.21)% 2.02% 1.97% -- 2.02% 2.82% 10/1/93
Alliance Small Cap Growth (13.00)% -- -- -- (1.83)% 4.49% 5/1/97
MFS Emerging Growth
Companies 22.26% -- -- -- 20.67% 25.99% 5/1/97
MFS Research 12.80% -- -- -- 12.26% 15.84% 5/1/97
Merrill Lynch Basic Value
Equity (1.25)% -- -- -- 3.25% 7.50% 5/1/97
Merrill Lynch World
Strategy (2.91)% -- -- -- (3.56)% (0.45)% 5/1/97
Morgan Stanley Emerging
Markets Equity (33.67)% -- -- -- (37.91)% (37.91)% 8/20/97
EQ/Putnam Balanced 1.63% -- -- -- 5.92% 7.93% 5/1/97
EQ/Putnam Growth & Income
Value 2.54% -- -- -- 6.65% 9.50% 5/1/97
T. Rowe Price Equity Income (0.86)% -- -- -- 7.90% 10.54% 5/1/97
T. Rowe Price International
Stock 3.34% -- -- -- (2.67)% (0.38)% 5/1/97
Warburg Pincus Small
Company Value (18.20)% -- -- -- (6.98)% (2.96)% 5/1/97
</TABLE>
The since inception dates for the variable investment options are as follows:
Alliance Aggressive Stock (5/1/84), Alliance Balanced (5/1/84), Alliance Common
Stock (8/27/81), Alliance Conservative Investors (1/4/94), Alliance Equity Index
(6/1/94), Alliance Global (1/4/94), Alliance Growth & Income (1/4/94), Alliance
Growth Investors (1/4/94), Alliance High Yield (1/4/94), Alliance Intermediate
Government Securities (6/1/94), Alliance International (9/1/95), Alliance Money
Market (5/11/82), Alliance Quality Bond (1/4/94). Alliance Small Cap Growth
(6/2/97), MFS Research (6/2/97), MFS Emerging Growth Companies (6/2/97), Merrill
Lynch Basic Value Equity (6/2/97), Merrill Lynch World Strategy (6/2/97), Morgan
Stanley Emerging Markets Equity (8/20/97), EQ/Putnam Balanced (6/2/97),
EQ/Putnam Growth & Income Value (6/2/97), T. Rowe Price Equity Income (6/2/97),
T. Rowe Price International Stock (6/2/97), Warburg Pincus Small Company Value
(6/2/97).
<TABLE>
<CAPTION>
Table 2
Growth of $1,000 under a contract surrendered on December 31, 1998
Length of Investment Period
Since
One Three Five Ten portfolio
Variable Investment Options year years years years inception*
<S> <C> <C> <C> <C> <C>
Alliance Aggressive Stock $911.51 $1,153.85 $1,307.38 $4,370.38 --
Alliance Balanced $1,073.53 $1,288.80 $1,327.32 $2,384.14 --
Alliance Common Stock $1,176.00 $1,797.65 $2,208.47 $4,110.60 --
Alliance Conservative Investors $1,035.05 $1,152.68 $1,244.47 -- $1,773.68
Alliance Equity Index $1,164.05 $1,798.41 -- -- $2,368.23
Alliance Global $1,107.05 $1,322.97 $1,562.13 $2,934.04 --
Alliance Growth & Income $1,098.54 $1,579.78 $1,841.05 -- $1,904.46
Alliance Growth Investors $1,082.77 $1,331.04 $1,536.60 -- $3,013.35
Alliance High Yield $862.09 $1,173.24 $1,279.23 $2,094.52 --
Alliance Intermediate Government Securities $979.30 $1,019.33 $1,032.87 -- $1,310.85
Alliance International $1,004.95 $1,000.14 -- -- $1,079.74
Alliance Money Market $957.43 $993.84 $1,022.10 $1,232.07 --
Alliance Quality Bond $987.86 $1,061.95 $1,102.72 -- $1,157.40
Alliance Small Cap Growth $870.04 -- -- -- $1,075.96
EQ/Putnam Balanced $1,016.27 -- -- -- $1,135.73
EQ/Putnam Growth & Income Value $1,025.43 -- -- -- $1,163.32
Merrill Lynch Basic Value Equity $987.53 -- -- -- $1,128.10
Merrill Lynch World Strategy $970.92 -- -- -- $992.46
MFS Emerging Growth Companies $1,222.64 -- -- -- $1,469.88
MFS Research $1,128.00 -- -- -- $1,277.91
Morgan Stanley Emerging Markets Equity $663.31 -- -- -- $521.48
T. Rowe Price Equity Income $991.37 -- -- -- $1,181.93
T. Rowe Price International Stock $1,033.40 -- -- -- $993.59
Warburg Pincus Small Company Value $817.95 -- -- -- $951.19
</TABLE>
________________________________________
*Portfolios inception dates are shown in Table 1.
<TABLE>
<CAPTION>
Table 3
Annualized Rates of Return for Periods Ended December 31, 1998
- -----------------------------------------------------------------------------------------------------------
Since
portfolio
1 year 3 years 5 years 10 years 20 years inception*
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE AGGRESSIVE
STOCK (1.07)% 9.24% 9.94% 17.29% -- 16.03%
Lipper Mid-Cap Growth 12.16% 16.33% 14.87% 15.44% -- 13.95%
Benchmark 8.28% 17.77% 15.56% 16.49% -- 15.78%
ALLIANCE BALANCED 16.52% 13.34% 9.31% 11.08% -- 10.82%
Lipper Balanced 13.48% 15.79% 13.84% 12.97% -- 13.56%
Benchmark 19.02% 18.70% 16.88% 15.21% -- 15.37%
ALLIANCE COMMON STOCK 27.64% 25.88% 20.27% 17.08% 17.20% 12.07%
Lipper Growth 22.86% 22.23% 18.63% 16.72% 16.30% 11.34%
benchmark 28.58% 28.23% 24.06% 19.21% 17.76% 12.75%
ALLIANCE CONSERVATIVE
INVESTORS 12.34% 9.20% 7.91% -- -- 8.51%
Lipper Income 14.20% 15.62% 14.31% -- -- 12.55%
Benchmark 15.59% 14.45% 13.37% -- -- 12.08%
ALLIANCE EQUITY INDEX 26.34% 25.88% -- -- -- 22.66%
Lipper S&P 500 Index Funds 28.05% 27.67% -- -- -- 24.31%
Benchmark 28.58% 28.23% -- -- -- 24.79%
ALLIANCE GLOBAL 20.16% 14.34% 12.71% 13.25% -- 11.03%
Lipper Global 14.34% 14.67% 11.98% 11.21% -- 9.64%
Benchmark 24.34% 17.77% 15.68% 10.66% -- 9.55%
ALLIANCE GROWTH & INCOME 19.23% 20.88% 16.22% -- -- 15.27%
Lipper Growth & Income 15.61% 21.25% 18.35% -- -- 17.89%
Benchmark 20.10% 23.99% 21.07% -- -- 20.48%
ALLIANCE GROWTH INVESTORS 17.52% 14.57% 12.37% -- -- 14.52%
Lipper Flexible Portfolio 14.20% 15.62% 14.31% -- -- 12.55%
Benchmark 22.85% 22.69% 19.96% -- -- 15.55%
ALLIANCE HIGH YIELD (6.43)% 9.85% 8.50% 9.66% -- 9.00%
Lipper High Yield (0.44)% 8.21% 7.37% 9.34% -- 8.97%
Benchmark 3.66% 9.11% 9.01% 11.08% -- 10.72%
ALLIANCE INTERMEDIATE
GOVERNMENT SECURITIES 6.29% 4.82% 3.97% -- -- 5.65%
Lipper U.S. Government 7.68% 6.21% 5.91% -- -- 7.25%
Benchmark 8.49% 6.74% 6.45% -- -- 7.60%
ALLIANCE INTERNATIONAL 9.08% 4.16% -- -- -- 5.87%
Lipper International 13.02% 9.94% -- -- -- 10.74%
Benchmark 20.00% 9.00% -- -- -- 9.68%
ALLIANCE MONEY MARKET 3.92% 3.94% 3.75% 4.18% -- 5.34%
Lipper Money Market 4.84% 4.87% 4.77% 5.20% -- 6.34%
Benchmark 5.05% 5.18% 5.11% 5.44% -- 6.41%
ALLIANCE QUALITY BOND 7.22% 6.26% 5.34% -- -- 4.90%
Lipper Corporate Bond A-Rated 7.47% 6.38% 6.54% -- -- 6.21%
Benchmark 8.69% 7.29% 7.27% -- -- 6.92%
ALLIANCE SMALL CAP GROWTH (5.57)% -- -- -- -- 10.75%
Lipper Small-Cap (0.33)% -- -- -- -- 16.72%
Benchmark 1.23% -- -- -- -- 16.58%
</TABLE>
<TABLE>
<CAPTION>
Table 3 (continued)
Annualized Rates of Return for Periods Ended December 31, 1998
- -----------------------------------------------------------------------------------------------------------
Since
portfolio
1 year 3 years 5 years 10 years 20 years inception*
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/PUTNAM BALANCED 10.30% -- -- -- -- 14.40%
Lipper Balanced -- -- -- -- -- 14.79%
Benchmark -- -- -- -- -- 17.17%
EQ/PUTNAM
GROWTH & INCOME VALUE 11.30% -- -- -- -- 16.05%
Lipper Growth & Income -- -- -- -- -- 20.28%
Benchmark -- -- -- -- -- 22.55%
MERRILL LYNCH
BASIC VALUE EQUITY 7.18% -- -- -- -- 13.93%
Lipper Growth & Income -- -- -- -- -- 20.28%
Benchmark -- -- -- -- -- 22.55%
MERRILL LYNCH WORLD
STRATEGY 5.38% -- -- -- -- 5.51%
Lipper Global Flexible Portfolio -- -- -- -- -- 8.52%
Benchmark -- -- -- -- -- 10.81%
MORGAN STANLEY EMERGING
MARKETS EQUITY (28.01)% -- -- -- -- (33.59)%
Lipper Emerging Markets -- -- -- -- -- .N/A
Benchmark -- -- -- -- -- (21.43)%
MFS EMERGING GROWTH
COMPANIES 32.70% -- -- -- -- 33.06%
Lipper Mid-Cap -- -- -- -- -- 20.88%
Benchmark -- -- -- -- -- 28.68%
MFS RESEARCH 22.43% -- -- -- -- 22.78%
Lipper Growth -- -- -- -- -- 21.89%
Benchmark -- -- -- -- -- 22.55%
T. ROWE PRICE EQUITY INCOME 7.60% -- -- -- -- 17.16%
Lipper Equity Income -- -- -- -- -- 20.91%
Benchmark -- -- -- -- -- 22.55%
T. ROWE PRICE
INTERNATIONAL STOCK 12.16% -- -- -- -- 5.58%
Lipper International -- -- -- -- -- 3.41%
Benchmark -- -- -- -- -- 2.85%
WARBURG PINCUS
SMALL COMPANY VALUE (11.2)% -- -- -- -- 2.85%
Lipper Small-Cap -- -- -- -- -- 26.66%
Benchmark -- -- -- -- -- 8.68%
</TABLE>
- ------------------------------
* Portfolios inception dates are shown in Table 1.
<TABLE>
<CAPTION>
Table 4
Cumulative Rates of Return for Periods Ended December 31, 1998
- -------------------------------------------------------------------------------------------------------------
Since
1 year 3 years 5 years 10 years 20 years inception*
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE AGGRESSIVE
STOCK (1.07)% 30.36% 60.64% 392.79% -- 785.73%
Lipper Mid-Cap Growth 12.16% 58.64% 102.73% 334.88% -- 613.05%
Benchmark 8.28% 63.35% 106.12% 360.30% -- 759.55%
ALLIANCE BALANCED 16.52% 45.61% 56.09% 185.92% -- 351.24%
Lipper Balanced 13.48% 55.60% 91.92% 240.69% -- 553.21%
Benchmark 19.02% 67.24% 118.08% 311.86% -- 715.64%
ALLIANCE COMMON STOCK 27.64% 99.46% 151.61% 383.84% 2,290.73% 3,100.86%
Lipper Growth 22.86% 84.52% 138.97% 388.00% 2,185.68% 1,203.81%
Benchmark 28.58% 110.85% 193.91% 479.62% 2,530.43% 3,755.68%
ALLIANCE CONSERVATIVE
INVESTORS 12.34% 30.23% 46.35% -- -- 112.80%
Lipper Income 14.20% 55.28% 97.15% -- -- 202.48%
Benchmark 15.59% 49.92% 87.28% -- -- 187.40%
ALLIANCE EQUITY INDEX 26.34% 99.47% -- -- -- 168.43%
Lipper S&P 500 Index Funds 28.05% 108.12% -- -- -- 186.34%
Benchmark 28.58% 110.85% -- -- -- 192.17%
ALLIANCE GLOBAL 20.16% 49.47% 81.88% 247.19% -- 227.85%
Lipper Global 14.34% 51.58% 77.94% 194.96% -- 188.08%
Benchmark 24.34% 63.34% 107.19% 175.31% -- 181.57%
ALLIANCE GROWTH &
INCOME 19.23% 76.61% 112.04% -- -- 110.79%
Lipper Growth & Income 15.61% 79.05% 133.95% -- -- 139.10%
Benchmark 20.10% 90.62% 160.09% -- -- 166.00%
ALLIANCE GROWTH
INVESTORS 17.52% 50.38% 79.14% -- -- 250.34%
Lipper Flexible Portfolio 14.20% 55.28% 97.15% -- -- 202.48%
Benchmark 22.85% 84.68% 148.41% -- -- 280.88%
ALLIANCE HIGH YIELD (6.43)% 32.55% 50.39% 151.51% -- 181.16%
Lipper High Yield (0.44)% 26.80% 43.00% 145.62% -- 182.21%
Benchmark 3.66% 29.90% 53.96% 186.01% -- 39.69%
ALLIANCE INTERNATIONAL 9.08% 12.99% -- -- -- 23.84%
Lipper International 13.02% 33.62% -- -- -- 47.74%
Benchmark 20.00% 29.52% -- -- -- 41.40%
ALLIANCE INTERMEDIATE
GOVERNMENT SECURITIES 6.29% 15.16% 21.74% -- -- 53.12%
Lipper U.S. Government 7.68% 19.84% 33.36% -- -- 72.35%
Benchmark 8.49% 21.61% 36.71% -- -- 76.55%
ALLIANCE MONEY MARKET 3.92% 12.28% 20.20% 50.56% -- 137.74%
Lipper Money Market 4.84% 15.34% 26.25% 66.09% -- 178.83%
Benchmark 5.05% 16.35% 28.27% 69.88% -- 181.74%
ALLIANCE QUALITY BOND 7.22% 19.98% 29.68% -- -- 28.59%
Lipper Corporate Bond
A-Rated 7.47% 20.42% 37.37% -- -- 37.26%
Benchmark 8.69% 23.51% 42.06% -- -- 42.14%
ALLIANCE SMALL CAP
GROWTH (5.57)% -- -- -- -- 18.55%
Lipper Small-Cap (0.33)% -- -- -- -- 28.98%
Benchmark 1.23% -- -- -- -- 29.23%
</TABLE>
<TABLE>
<CAPTION>
Table 4 (continued)
Cumulative Rates of Return for Periods Ended December 31, 1998
- -------------------------------------------------------------------------------------------------------------
Since
1 year 3 years 5 years 10 years 20 years inception*
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQ/PUTNAM BALANCED 10.30% -- -- -- -- 25.14%
Lipper Balanced -- -- -- -- -- 14.79%
Benchmark -- -- -- -- -- 17.17%
EQ/PUTNAM GROWTH &
INCOME VALUE 11.30% -- -- -- -- 28.18%
Lipper Growth & Income -- -- -- -- -- 28.28%
Benchmark -- -- -- -- -- 22.55%
MERRILL LYNCH BASIC
VALUE EQUITY 7.18% -- -- -- -- 24.30%
Lipper Growth & Income -- -- -- -- -- 20.28%
Benchmark -- -- -- -- -- 22.55%
MERRILL LYNCH WORLD
STRATEGY 5.38% -- -- -- -- 9.35%
Lipper Global Flexible
Portfolio -- -- -- -- -- 8.52%
Benchmark -- -- -- -- -- 10.81%
MFS EMERGING GROWTH
COMPANIES 32.70% -- -- -- -- 61.01%
Lipper Mid-Cap -- -- -- -- -- 20.88%
Benchmark -- -- -- -- -- 28.68%
MFS RESEARCH 22.43% -- -- -- -- 40.80%
Lipper Growth -- -- -- -- -- 21.89%
Benchmark -- -- -- -- -- 22.55%
MORGAN STANLEY EMERGING
MARKETS EQUITY (28.01)% -- -- -- -- (42.83)%
Lipper Emerging Markets -- -- -- -- -- .N/A
Benchmark -- -- -- -- -- (21.43)%
T. ROWE PRICE EQUITY
INCOME 7.60% -- -- -- -- 30.23%
Lipper Equity Income -- -- -- -- -- 20.91%
Benchmark -- -- -- -- -- 22.55%
T. ROWE PRICE
INTERNATIONAL STOCK 12.16% -- -- -- -- 9.48%
Lipper International -- -- -- -- -- 3.41%
Benchmark -- -- -- -- -- 2.85%
WARBURG PINCUS
SMALL COMPANY VALUE (11.22)% -- -- -- -- 4.80%
Lipper Small-Cap -- -- -- -- -- 26.66%
Benchmark -- -- -- -- -- 28.68%
</TABLE>
- ------------------------------
* Portfolios inception dates are shown in Table 1.
<TABLE>
<CAPTION>
Table 5
Year-By-Year Rates of Return
- -------------------------------------------------------------------------------------------------------------------------
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ALLIANCE
AGGRESSIVE STOCK 42.87% 5.73% 84.57% (4.47)% 15.17% (5.11)% 29.87% 20.54% 9.31% (1.07)%
ALLIANCE BALANCED 24.72% (1.33)% 40.16% (4.15)% 10.80% (9.26)% 18.14% 10.16% 13.44% 16.52%
ALLIANCE COMMON
STOCK 24.20% (9.17)% 35.95% 1.82% 23.11% (3.46)% 30.67% 22.59% 27.47% 27.64%
ALLIANCE
CONSERVATIVE
INVESTORS 2.75% 4.97% 18.23% 4.36% 9.27% (5.39)% 18.78% 3.78% 11.70% 12.34%
ALLIANCE EQUITY
INDEX -- -- -- -- -- (0.05)%** 34.65% 20.72% 30.78% 26.34%
ALLIANCE GLOBAL 25.02% (7.33)% 28.79% (1.86)% 30.34% 3.81% 17.22% 13.04% 10.04% 20.16%
ALLIANCE GROWTH
& INCOME -- -- -- -- (0.59)% (1.91)% 22.40% 18.46% 25.05% 19.23%
ALLIANCE GROWTH
INVESTORS 3.65% 9.12% 46.90% 3.52% 13.71% (4.44)% 24.68% 11.09% 15.21% 17.52%
ALLIANCE HIGH YIELD 3.71% (2.43)% 22.78% 10.80% 21.48% (4.09)% 18.30% 21.22% 16.87% (6.43)%
ALLIANCE
INTERMEDIATE
GOVERNMENT
SECURITIES -- -- 10.94% 4.17% 9.09% (5.66)% 11.80% 2.36% 5.84% 6.29%
ALLIANCE
INTERNATIONAL -- -- -- -- -- -- 9.59% 8.32% (4.36)% 9.08%
ALLIANCE MONEY
MARKET 7.78% 6.89% 4.77% 2.16% 1.58% 2.62 4.32% 3.90% 3.99% 3.92%
ALLIANCE QUALITY
BOND -- -- -- -- (0.84)% (6.38)% 15.45% 3.93% 7.67% 7.22%
ALLIANCE SMALL
CAP GROWTH -- -- -- -- -- -- -- -- 25.54%** (5.57)%
EQ/PUTNAM BALANCED -- -- -- -- -- -- -- -- 13.46%** 10.30%
EQ/PUTNAM GROWTH
& INCOME VALUE -- -- -- -- -- -- -- -- 15.17%** 11.30%
MERRILL LYNCH
BASIC VALUE
EQUITY -- -- -- -- -- -- -- -- 15.97%** 7.18%
MERRILL LYNCH
WORLD STRATEGY -- -- -- -- -- -- -- -- 3.77%** 5.38%
MFS EMERGING
GROWTH COMPANIES -- -- -- -- -- -- -- -- 21.34%** 32.70%
MFS RESEARCH -- -- -- -- -- -- -- -- 15.01%** 22.43%
MORGAN STANLEY 20.59)%**
EMERGING MARKETS
EQUITY -- -- -- -- -- -- -- -- ( (28.01)%
T. ROWE PRICE
EQUITY INCOME -- -- -- -- -- -- -- -- 21.04%** 7.60%
T. ROWE PRICE
INTERNATIONAL
STOCK -- -- -- -- -- -- -- -- (2.39)%** 12.16%
WARBURG PINCUS 11.22)%
SMALL COMPANY VALUE -- -- -- -- -- -- -- -- 18.06%** (
</TABLE>
- ------------------------------
* Return for these options represent less than 12 months of
performance. The returns are as of each Portfolio's inception date
as shown in Table 1
Communicating performance data
In reports or other communications to contract owners or in advertising
material, we may describe general economic and market conditions affecting our
variable investment options, and the Portfolios and may compare the performance
or ranking of those options and the Portfolios with:
o those 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;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds which are shown under "Benchmarks" above; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective contract owners
advertisements or other communications that include evaluations of a variable
investment option or Portfolio by nationally recognized financial publications.
Examples of such publications are:
Barron's Money Management Letter
Morningstar's Variable Annuity Sourcebook Investment Dealers Digest
Business Week National Underwriter
Forbes Pension & Investments
Fortune USA Today
Institutional Investor Investor's Business Daily
Money The New York Times
Kiplinger's Personal Finance The Wall Street Journal
Financial Planning The Los Angeles Times
Investment Adviser The Chicago Tribune
Investment Management Weekly
Lipper Analytical Services, Inc. (Lipper) compiles performance data for
peer universes of funds with similar investment objectives in its Lipper Survey.
Morningstar, Inc. compiles similar data in the Morningstar Variable Annuity/Life
Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800
mutual funds underlying variable annuity and life insurance products. It divides
these actively managed portfolios into 25 categories by portfolio objectives.
The Lipper Survey contains two different universes, which reflect different
types of fees in performance data:
o The "separate account" universe reports performance data net of investment
management fees, direct operating expenses and asset-based charges
applicable under variable insurance and annuity contracts; and
o The "mutual fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects only
charges that relate to the underlying mutual fund.
The Morningstar Variable Annuity/Life Report consists of nearly 700
variable life and annuity funds, all of which report their data net of
investment management fees, direct operating expenses and separate account level
charges. VARDS is a monthly reporting service that monitors approximately 2,500
variable life and variable annuity funds on performance and account information.
We may advertise the investment performance of the variable investment
options using the measurements shown in the tables below. We also may advertise
the current yield and effective yield of the Alliance Money Market, Alliance
Intermediate Government, Alliance Quality Bond and Alliance High Yield options,
described below.
Some of the variable investment options began operations after the
inception date of the corresponding Portfolio. When we advertise the performance
of a variable investment option, we will show the performance of that option
since its inception date separately if required by regulatory authorities.
Yield information
Current yield for the Alliance Money Market option will be based on net
changes in a hypothetical investment over a given seven-day period, exclusive of
capital changes, and then "annualized" (assuming that the same seven-day result
would occur each week for 52 weeks). Current yield for the Alliance Intermediate
Government, Alliance Quality Bond and Alliance High Yield options will be based
on net changes in a hypothetical investment over a given 30-day period,
exclusive of capital changes, and then "annualized" (assuming that the same
30-day result would occur each month for 12 months).
"Effective yield" is calculated in a similar manner, but when annualized,
any income earned by the investment is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because any earnings are
compounded weekly for the Alliance Money Market option and monthly for the
Alliance Intermediate Government, Alliance Quality Bond and Alliance High Yield
options. The yields and effective yields assume the deduction of all contract
charges and expenses other than the withdrawal charge and any charge for taxes
such as premium tax. For more information, see "Alliance Money Market Option
Yield Information" and "Other Alliance Yield Information" in the SAI.
APPENDIX I: CONDENSED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
Unit values and number of units outstanding for each variable investment option
since inception
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31
- ------------------------------------------------------------------------------------------------------------------------------------
1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C>
Alliance Aggressive
Stock
Unit value $105.90 $100.49 $130.50 $157.31 $171.96 $170.12
Number of units
outstanding
(000's) 12 350 718 1,070 1,220 1,098
Alliance Balanced
Unit value $101.63 $92.22 $108.95 $120.01 $136.14 $158.63
Number of units
outstanding
(000's) 9 188 336 417 439 375
Alliance Common Stock
Unit value $105.01 $101.38 $132.47 $162.39 $207.00 $264.22
Number of units
outstanding
(000's) 12 330 706 1,039 1,192 1,133
Alliance Conservative
Investors
Unit value $98.60 $93.29 $110.81 $114.99 $128.45 $144.30
Number of units
outstanding
(000's) 10 92 129 136 125 121
Alliance Equity Index
Unit value -- $100.94 $135.92 $164.08 $214.58 $271.11
Number of units
outstanding
(000's) -- 3 44 128 231 283
Alliance Global
Unit value $102.14 $106.04 $124.30 $140.51 $154.12 $185.78
Number of units
outstanding
(000's) 8 223 391 459 464 408
Alliance Growth &
Income
Unit value $99.06 $121.25 $143.63 $179.60 $214.14
Number of units
outstanding
(000's) -- 9 67 121 183 209
Alliance Growth
Investors
Unit value $101.99 $97.45 $121.49 $134.95 $155.46 $182.69
Number of units
outstanding
(000's) 13 188 375 508 553 509
Alliance High Yield
Unit value $106.74 $102.37 $121.10 $146.80 $171.56 $160.53
Number of units
outstanding
(000's) 1 38 70 94 110 100
</TABLE>
Unit values and number of units outstanding for each variable investment option
since inception (continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31
- ------------------------------------------------------------------------------------------------------------------------------------
1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C>
Alliance Intermediate
Government Securities
Unit value $100.44 $94.76 $105.94 $108.45 $114.78 $122.00
Number of units
outstanding
(000's) 1 64 88 81 77 76
Alliance International
Unit value -- -- $104.15 $112.81 $107.89 $117.68
Number of units
outstanding
(000's) -- -- 3 54 85 87
Alliance Money Market
Unit value $100.47 $103.10 $107.55 $111.75 $116.21 $120.76
Number of units
outstanding
(000's) 62 474 299 307 325 322
Alliance Quality Bond
Unit value -- $99.07 $114.38 $118.87 $127.99 $137.23
Number of units
outstanding
(000's) -- 3 17 28 37 47
Alliance Small Cap
Growth
Unit value -- -- -- -- $125.54 $118.55
Number of units
outstanding
(000's) -- -- -- -- 8 41
EQ/Putnam Balanced
Portfolio
Unit value -- -- -- -- -- $101.67
Number of units
outstanding
(000's) -- -- -- -- -- 1
EQ/Putnam Growth &
Income Value Portfolio
Unit value -- -- -- -- -- $101.60
Number of units
outstanding
(000's) -- -- -- -- -- 2
</TABLE>
Unit values and number of units outstanding for each variable investment option
since inception (continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31
- ------------------------------------------------------------------------------------------------------------------------------------
1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C>
Merrill Lynch Basic
Value Equity Portfolio
Unit value -- -- -- -- -- $98.58
Number of units
outstanding
(000's) -- -- -- -- -- 2
Merrill Lynch World
Strategy Portfolio
Unit value -- -- -- -- -- $96.28
Number of units
outstanding
(000's) -- -- -- -- -- 1
Morgan Stanley
Emerging Markets
Equity Portfolio
Unit value -- -- -- -- -- $86.23
Number of units
outstanding
(000's) -- -- -- -- -- 1
MFS Emerging Growth
Companies Portfolio
Unit value -- -- -- -- -- $107.73
Number of units
outstanding
(000's) -- -- -- -- -- 7
MFS Research Portfolio
Unit value -- -- -- -- -- $100.75
Number of units
outstanding
(000's) -- -- -- -- -- 3
T. Rowe Price Equity
Income Portfolio
Unit value -- -- -- -- -- $101.39
Number of units
outstanding
(000's) -- -- -- -- -- 3
T. Rowe Price
International Stock
Portfolio
Unit value -- -- -- -- -- $98.95
Number of units
outstanding
(000's) -- -- -- -- -- 3
Warburg Pincus Small
Company Value
Portfolio
Unit value -- -- -- -- -- $83.08
Number of units
outstanding
(000's) -- -- -- -- -- 2
</TABLE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Page
Additional Information about the Momentum Plus Program
2
- --------------------------------------------------------------------------------
Automatic Minimum Withdrawal Option 2
- --------------------------------------------------------------------------------
The Reorganization 3
- --------------------------------------------------------------------------------
Accumulation Unit Values 3
- --------------------------------------------------------------------------------
Description of Contribution Sources for the Momentum Plus Program 4
- --------------------------------------------------------------------------------
How We Deduct the Quarterly Administrative Charge 4
- --------------------------------------------------------------------------------
Custodian and Independent Accounts 4
- --------------------------------------------------------------------------------
Distribution 5
- --------------------------------------------------------------------------------
Alliance Money Market Option Yield Information 5
- --------------------------------------------------------------------------------
Other Alliance Yield Information 5
- --------------------------------------------------------------------------------
Long-Term Market Trends 6
- --------------------------------------------------------------------------------
Financial Statements 7
- --------------------------------------------------------------------------------
How to obtain an Momentum Plus Statement of Additional
Information for Separate Account A
Call 1-800-528-0204 or send this request form to:
------------------------------------------
Equitable Life
Momentum Administration Services
P.O. Box 2919
New York, NY 10116
------------------------------------------
Please send me a Momentum Plus SAI dated May 1, 1999:
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
<PAGE>
MOMENTUM PLUS
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1999
--------------------------
A GROUP VARIABLE AND FIXED DEFERRED ANNUITY CONTRACT
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
1290 AVENUE OF THE AMERICAS, NEW YORK, NY 10104
- --------------------------------------------------------------------------------
This statement of additional information ("SAI") is not a prospectus. It should
be read in conjunction with the related Momentum Plus prospectus, dated May 1,
1999. That prospectus provides detailed information concerning the contract and
the variable investment options, as well as the fixed interest option, that fund
the contract. Each variable investment option is a subaccount of Equitable
Life's Separate Account A. The fixed interest options are part of Equitable
Life's general account. 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 (Post Office Box 2919, New York, NY 10116), by calling toll-free,
1-800-528-0204, or by contacting your Equitable Life Representative.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------------------------------------------------
PAGE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C>
Part 1 -- Additional Information about the Momentum Plus Program 2
- --------------------------------------------------------------------------------------------------------------------------
Part 2 -- Automatic Minimum Withdrawal Option 2
- --------------------------------------------------------------------------------------------------------------------------
Part 3 -- The Reorganization 3
- --------------------------------------------------------------------------------------------------------------------------
Part 4 -- Accumulation Unit Values 3
- --------------------------------------------------------------------------------------------------------------------------
Part 5 -- Description of Sources 4
- --------------------------------------------------------------------------------------------------------------------------
Part 6 -- How We Deduct the Momentum Plus Quarterly Administrative Charge 4
- --------------------------------------------------------------------------------------------------------------------------
Part 7 -- Custodian and Independent Accountants 4
- --------------------------------------------------------------------------------------------------------------------------
Part 8 -- Distribution 5
- --------------------------------------------------------------------------------------------------------------------------
Part 9 -- Alliance Money Market Fund Yield Information 5
- --------------------------------------------------------------------------------------------------------------------------
Part 10 -- Other Alliance Yield Information 5
- --------------------------------------------------------------------------------------------------------------------------
Part 11 -- Long-Term Market Trends 6
- --------------------------------------------------------------------------------------------------------------------------
Part 12 -- Financial Statements 7
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Copyright 1999 The Equitable Life Assurance
Society of the United States,
New York, New York 10104
All rights reserved. --------------------
Cat. No. ______ 888-____
<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. The employer may not require more than one year of
eligibility service 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, provisions of the Internal
Revenue Code may require that the plan cover all employees even if they
previously elected not to participate.
VESTING UNDER THE MASTER PLAN
Vesting refers to the nonforfeitable portion of a participant's retirement
account value and loans attributable to employer and matching contributions
under the Master Plan. The participant's retirement account value attributable
to salary-deferral contributions, post-tax employee contributions, prior plan
contributions, qualified non-elective and qualified matching contributions is
nonforfeitable at all times.
A participant becomes fully vested in all benefits if still employed at death,
disability, attainment of normal retirement age or upon termination of the plan.
A participant who terminates employment before that time, forfeits any benefits
that are not already vested under the plan's vesting schedule.
Benefits generally must vest in accordance with any of the schedules below or
one at least as favorable to participants as Schedule B or C:
- -------------------------------------------------------------
YEARS OF SCHEDULE A SCHEDULE B SCHEDULE C
SERVICE VESTED VESTED VESTED
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.
If the 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
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, you will be eligible to receive a distribution as follows:
- -------------------------------------------------------------
FORM RECEIVED AT WHEN ELIGIBLE TO
TYPE OF DISTRIBUTION THE PROCESSING RECEIVE
OFFICE DISTRIBUTION
- -------------------------------------------------------------
o Single Sum
Payments N/A The 1st business
day that is 7
o Annuities calendar days
after we receive
the form.
- -------------------------------------------------------------
o In-Service N/A The business day
Withdrawals on which we
receive the form.
o Hardship
Withdrawals
o Withdrawals
of Post-Tax
Employee
Contributions
- -------------------------------------------------------------
o Installment 1st through 25th The 1st business
Payments business day of day of the
month inclusive. following calendar
month.
26th through 31st
business day of The 1st business
month inclusive. day of the second
following calendar
month.
- -------------------------------------------------------------
In order for you to begin receiving benefits (including annuity payments) under
an individually designed or prototype defined contribution plan, your employer
must send us a properly completed request for disbursement form. We will send
single sum payments to your plan trustee as of the close of business on the
business day we receive a properly completed form. If you wish to receive
annuity payments, your plan trustee may purchase an annuity contract from us.
The annuity contract will be purchased on the business day we receive a properly
completed form, and payments will commence on that business day.
- --------------------------------------------------------------------------------
PART 2 --AUTOMATIC MINIMUM WITHDRAWAL OPTION
If you elect this feature designed for participants age 70 1/2 or older,
described in the prospectus, each year we calculate your minimum distribution
amount by using the retirement account value as of December 31 of the prior
calendar year. We then calculate the minimum distribution amount based on the
various choices you make. This calculation takes into account partial
withdrawals made during the current calendar year but prior to the date we
determine your minimum distribution withdrawal amount. However, when the
Automatic Minimum Withdrawal Option is elected in the year in which the
participant attains age 71 1/2, no adjustment will be made for any withdrawals
made between January 1 and April 1 in satisfaction of the minimum distribution
requirements for the prior year.
You may choose whether we will calculate the automatic minimum withdrawals 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 expectancies, each year, or (2) to have us determine
your life expectancy, or joint-life expectancies, once and then subtract one
year, each year, from that amount. If you have chosen a joint-life expectancy
method of calculation with your spouse, you must choose to have both lives
recalculated or neither lives 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 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.
You should not elect the Automatic Minimum Withdrawal Option if you, the
participant, continue to work beyond age 70 1/2 and you continue to make
contributions into the contract. To do so could result in an insufficient
distribution. You must request the amount to be separately calculated each year
to ensure that you withdraw the correct amount.
Note that our Automatic Minimum Withdrawal Option is less flexible than Federal
law allows. 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 adviser.
- --------------------------------------------------------------------------------
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
option, the Alliance Balanced option, the Alliance Common Stock option and the
Alliance Aggressive Stock option, was organized as an open-end management
investment company. Each separate account had 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 options of Separate Account A. 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
variable investment options of Separate Account A. As described in "Investment
Performance" in the prospectus, on September 6, 1991, all of the shares of The
Equitable Trust held by these variable investment options were replaced by
shares of Portfolios of The Hudson River Trust corresponding to these variable
investment options of Separate Account A.
- --------------------------------------------------------------------------------
PART 4 -- ACCUMULATION UNIT VALUES
Accumulation unit values are determined at the end of each valuation period for
each of the variable investment options. Other annuity contracts and
certificates that participate in Separate Account A also have their own
accumulation unit values for the variable investment options. The unit values
for these other contracts and certificates may be different from those for
Momentum Plus.
The accumulation unit value for an variable investment option for any valuation
period is equal to: (i) the accumulation unit value for the preceding valuation
period multiplied by (ii) the net investment factor for that variable investment
option for that valuation period. A valuation period is each business day
together with any preceding non-business days. The NET INVESTMENT FACTOR is:
(a) - c where:
--
(b)
(a) is the value of the variable investment option's shares of the
corresponding Portfolio at the end of the valuation period. Any amounts
allocated to or withdrawn from the option for the valuation period are not
taken into account. For this purpose, we use the share value reported to us
by The Hudson River Trust or EQ Advisors Trust. This share value is after
deduction for investment advisory fees and other fees and direct expenses
of the Trusts.
(b) is the value of the variable investment option's shares of the
corresponding Portfolio at the end of the preceding valuation period. (Any
amounts allocated or withdrawn for that valuation period are taken into
account.)
(c) is the daily asset charge for expenses of Separate Account A 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 that 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 Internal Revenue 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
Internal Revenue 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 Internal Revenue Code. Employers make such
qualified non-elective and qualified matching contributions to meet the
nondiscrimination requirements of Section 401(k) and/or 401(m) of the Internal
Revenue Code. This source is called the employer 401(k) Account in the Master
Plan.
- --------------------------------------------------------------------------------
PART 6 -- HOW WE DEDUCT THE MOMENTUM PLUS QUARTERLY ADMINISTRATIVE CHARGE
Each calendar quarter we currently deduct an administrative charge of $7.50 or,
if less, .50% of the total of your retirement account value plus the amount of
any active loan from your retirement account value. We do not make any deduction
if your retirement account value equals or exceeds $25,000. We will deduct this
charge in a specified order of contribution sources and investment options. The
order of contribution 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 option, 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 options. The last contribution source is the EQ
Advisors Trust variable investment options. If necessary we will deduct the
administrative charge on a pro rata basis from these options.
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 option. If there is no money in the guaranteed interest
option, we will attempt to deduct the charge from the Alliance Common Stock
option, then Alliance Balanced, etc. If there are no employer contributions in
any of the investment options, we will go to the next contribution 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 shares of the Trusts owned by Separate
Account A.
The financial statements of Separate Account A as of December 31, 1998 and for
the periods then ended December 31, 1998 and 1997, and the consolidated
financial statements of Equitable Life at December 31, 1998 and 1997, and for
each of the three years ended December 31, 1998 included in this SAI have been
so incorporated in reliance on the reports PricewaterhouseCoopers LLP,
independent accountants, given on the authority of said firm as experts in
accounting and auditing.
- --------------------------------------------------------------------------------
PART 8 -- DISTRIBUTION
Equitable Financial Consultants, Inc. ("EQF"), an indirect, wholly owned
subsidiary of Equitable Life, is the distributor of the contracts and has
responsibility for sales and marketing functions. During 1999, EQF plans to
change its name to AXA Advisors, Inc. EQF serves as the principal underwriter of
Separate Account A. EQF is registered with the SEC as a broker-dealer and is a
member of the National Association of Securities Dealers, Inc. EQF's principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Under a
Distribution and Servicing Agreement between EQF, Equitable Life, and certain of
Equitable Life's separate accounts, including Separate Account A, Equitable Life
paid EQF fees of $325,380 for 1998 and $325,380 for 1997, as distributor of
certain contracts and as the principal underwriter of certain separate accounts
including Separate Account A.
The contracts will be sold by registered representatives of EQF and its
affiliates, who are also our licensed insurance agents. EQF may also receive
compensation and reimbursement for its marketing services under the terms of its
distribution agreement with Equitable Life. The offering of the contracts is
intended to be continuous.
- --------------------------------------------------------------------------------
PART 9 -- ALLIANCE MONEY MARKET FUND YIELD INFORMATION
The Alliance Money Market option calculates yield information for seven-day
periods. To determine the seven-day rate of return, the net change in an
accumulation unit value is computed by subtracting the accumulation unit value
at the beginning of the period from an accumulation unit value, exclusive of
capital changes, at the end of the period.
The net change is then reduced by the average administrative charge factor for
your contract. This reduction is made to recognize the deduction of the annual
administrative charge, which is not reflected in the unit value. See the
applicable "Administrative Charge" under "Charges and Expenses" in the
prospectus. Accumulation unit values reflect all other accrued expenses of the
Alliance Money Market option.
The adjusted net change is divided by the accumulation unit value at the
beginning of the period to obtain the adjusted base period rate of return. This
seven-day adjusted base period return is then multiplied by 365/7 to produce an
annualized seven-day current yield figure carried to the nearest one-hundredth
of one percent.
The actual dollar amount of the quarterly administrative charge that is deducted
from the Alliance Money Market option 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 option
during the twelve-month period ending on the last day of the prior year divided
by 4. We multiply this amount by 7/91.25 to produce an average administrative
charge factor which we use in all weekly yield computations for the next
quarter. The average administrative charge is then divided by the number of
Momentum Plus Alliance Money Market option accumulation units as of the end of
the prior calendar year. We deduct the resulting quotient 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 option'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 option 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 option will fluctuate and not remain constant.
The Alliance Money Market option yields reflect charges that are not normally
reflected in the yields of other investments. Therefore they may be lower when
compared with yields of other investments. The Alliance Money Market option
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 option or bank deposits. Nor should the yields be compared to the
yields of money market funds made available to the general public. Yields of
money market funds usually are calculated on the basis of a constant $1 price
per share and they pay out earnings in dividends which accrue on a daily basis.
The seven-day current yield for the Alliance Money Market option was 3.32% for
the period ended December 31, 1998. The effective yield for that period was
3.66%. Because these yields reflect the deduction of variable investment option
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. We derive the
30-day rate of return from the actual change in the share value reported to us
by the Trust. This amount does not include capital changes of the variable
investment option's shares of the corresponding Portfolio during the period. We
reduce the net change by (a) the daily charges we deduct from your variable
investment options for contract expenses times the number of calendar days in
the period, and (b) the annual administrative charge.
We obtain the effective yield by giving effect to the compounding nature of the
option'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, 1998 were 3.29% for the
Alliance Intermediate Government Securities option, 3.67% for the Alliance
Quality Bond option and 13.09% for the Alliance High Yield option. Because these
yields reflect the deduction of variable investment option expenses, including
the annual administrative charge, they are lower than the yield figures for the
corresponding Portfolios which reflect only the deduction of Trust-level
expenses.
- --------------------------------------------------------------------------------
PART 11 -- LONG-TERM MARKET TRENDS
As a tool for understanding how different investment strategies may affect
long-term results, it may be useful to consider the historical returns on
different types of assets. The following charts present historical return trends
for various types of securities. The information presented, while not directly
related to the performance of the variable investment options, helps to provide
a perspective on the potential returns of different asset classes over different
periods of time. By combining this information with your knowledge of your own
financial needs (e.g., the length of time until you retire, your financial
requirements at retirement), you may be able to better determine how you wish to
allocate plan contributions among the investment options available under your
plan.
Historically, the long-term investment performance of common stocks has
generally been superior to that of long- or short-term debt securities. For
those investors who have many years until retirement, or whose primary focus is
on long-term growth potential and protection against inflation, there may be
advantages to allocating some or all of their retirement account value to those
variable investment options that invest in stocks.
Growth of $1 Invested on January 1, 1958
(Values are as of last business day)
[THE FOLLOWING DATA WAS REPRESENTED AS A
SHADED AREA GRAPH IN THE PRINTED DOCUMENT:]
Common Stock Inflation
1958 1.00 1.00
1959 1.12 1.01
1960 1.12 1.03
1961 1.43 1.04
1962 1.30 1.05
1963 1.60 1.07
1964 1.86 1.08
1965 2.10 1.10
1966 1.88 1.14
1967 2.34 1.17
1968 2.59 1.23
1969 2.37 1.30
1970 2.47 1.37
1971 2.82 1.42
1972 3.36 1.47
1973 2.87 1.60
1974 2.11 1.79
1975 2.89 1.92
1976 3.58 2.01
1977 3.32 2.15
1978 3.54 2.34
1979 4.19 2.65
1980 5.55 2.98
1981 5.28 3.25
1982 6.41 3.37
1983 7.86 3.50
1984 8.35 3.64
1985 11.03 3.78
1986 13.07 3.82
1987 13.75 3.99
1988 16.07 4.16
1989 21.13 4.36
1990 20.46 4.62
1991 26.74 4.76
1992 28.75 4.90
1993 31.63 5.04
1994 32.04 5.17
1995 44.03 5.30
1996 54.19 5.48
1997 72.27 5.57
1998 92.93 5.67
[LIGHT SHADED AREA = COMMON STOCK]
[DARK SHADED AREA = INFLATION]
[END OF GRAPHICALLY REPRESENTED DATA]
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 annuity account value or
retirement account value to those variable investment options that invest in
common stocks. The following graph illustrates the monthly fluctuations in value
of $1 based on monthly returns of the Standard & Poor's 500 during 1990, a year
that reflects inherent volatility in the investment of common stock.
Growth of $1 Invested on January 1, 1990
(Values are as of last business day)
[THE FOLLOWING DATA WAS REPRESENTED AS A BLACK AND WHITE LINE GRAPH
IN THE PRINTED DOCUMENT:]
Intermediate-Term
Govt. 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
June 1.02 1.03
July 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
[END OF GRAPHICALLY REPRESENTED DATA]
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, 1998 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. Investment
management fees or expenses, and charges typically associated with deferred
annuity products, are not reflected. The information presented is merely a
summary of past experience for unmanaged groups of securities and is neither an
estimate nor guarantee of future performance. Any investment in securities,
whether equity or debt, involves varying degrees of potential risk, in addition
to offering varying degrees of potential reward.
The rates of return illustrated do not represent returns of the variable
investment options. In addition, there is no assurance that the performance of
the variable investment options will correspond to rates of return such as those
illustrated in the chart.
For a comparative illustration of performance results of the variable investment
options (which reflect charges for The Hudson River Trust or EQ Advisors Trust,
as applicable, and variable investment option charges), see "Investment
Performance" in the prospectus.
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
MARKET TRENDS:
ILLUSTRATIVE ANNUAL RATES OF RETURN
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
LONG-TERM LONG-TERM INTERMEDIATE- U.S.
FOR THE FOLLOWING PERIODS COMMON GOVERNMENT CORPORATE TERM GOV'T. TREASURY CONSUMER
ENDING DECEMBER 31, 1998 STOCKS BONDS BONDS BONDS BILLS PRICE INDEX
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 Year 28.58% 13.06% 10.76% 10.21% 4.86% 1.80%
3 Years 28.27 9.07 8.25 6.84 5.11 2.27
5 Years 24.06 9.52 8.74 6.20 4.96 2.41
10 Years 19.19 11.66 10.85 8.74 5.29 3.14
20 Years 17.75 11.14 10.86 9.85 7.17 4.53
30 Years 12.67 9.09 9.14 8.71 6.76 5.24
40 Years 12.00 7.20 7.43 7.39 5.94 4.44
50 Years 13.56 5.89 6.20 6.21 5.07 3.92
60 Years 12.49 5.43 5.62 5.50 4.26 4.19
Since 1926 11.21 5.29 5.78 5.32 3.78 3.15
Inflation Adjusted Since 1926 7.82 2.08 2.55 2.11 0.62 0.00
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SOURCE: Ibbotson, Roger G., and Rex A. Sinquefield, Stocks, Bonds, Bills, and
Inflation (SBBI), 1982, updated in Stocks, Bonds, Bills and Inflation 1998
Yearbook,(TM) Ibbotson Associates, Inc., Chicago. All rights reserved.
COMMON STOCKS (S&P 500) -- Standard and Poor's Composite Index, an unmanaged
weighted index of the stock performance of 500 industrial, transportation,
utility and financial companies.
LONG-TERM GOVERNMENT BONDS -- Measured using a one-bond portfolio constructed
each year containing a bond with approximately a twenty-year maturity and a
reasonably current coupon.
LONG-TERM CORPORATE BONDS -- For the period 1969-1998 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 1969-1998;
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.
<PAGE>
- --------------------------------------------------------------------------------
PART 12 -- FINANCIAL STATEMENTS
The consolidated 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 contracts.
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
<TABLE>
<CAPTION>
INDEX TO FINANCIAL STATEMENTS
<S> <C>
Report of Independent Accountants.................................................................................. FSA-2
Financial Statements:
Statements of Assets and Liabilities, December 31, 1998...................................................... FSA-3
Statements of Operations for the Year Ended December 31, 1998................................................ FSA-6
Statements of Changes in Net Assets for the Years Ended December 31, 1998 and 1997........................... FSA-9
Notes to Financial Statements................................................................................ FSA-16
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Report of Independent Accountants.................................................................................. F-1
Consolidated Financial Statements:
Consolidated Balance Sheets, December 31, 1998 and 1997...................................................... F-2
Consolidated Statements of Earnings, Years Ended December 31, 1998, 1997 and 1996............................ F-3
Consolidated Statements of Shareholder's Equity, Years Ended December 31, 1998,
1997 and 1996............................................................................................. F-4
Consolidated Statements of Cash Flows, Years Ended December 31, 1998, 1997 and 1996.......................... F-5
Notes to Consolidated Financial Statements................................................................... F-6
</TABLE>
FSA-1
<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 Alliance Money Market Fund,
Alliance Intermediate Government Securities Fund, Alliance Quality Bond Fund,
Alliance High Yield Fund, Alliance Growth & Income Fund, Alliance Equity Index
Fund, Alliance Common Stock Fund, Alliance Global Fund, Alliance International
Fund, Alliance Aggressive Stock Fund, Alliance Small Cap Growth Fund, Alliance
Conservative Investors Fund, Alliance Growth Investors Fund, Alliance Balanced
Fund ("Hudson River Trust funds") and the T. Rowe Price Equity Income Fund,
EQ/Putnam Growth & Income Value Fund, Merrill Lynch Basic Value Equity Fund, MFS
Research Fund, T. Rowe Price International Stock Fund, Morgan Stanley Emerging
Markets Equity Fund, Warburg Pincus Small Company Value Fund, MFS Emerging
Growth Companies Fund, EQ/Putnam Balanced Fund, and Merrill Lynch World Strategy
Fund ("EQ Advisors Trust funds"), separate investment funds of The Equitable
Life Assurance Society of the United States ("Equitable Life") Separate Account
A at December 31, 1998 and 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 owned in The Hudson River Trust
and in The EQ Advisors Trust at December 31, 1998 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.
PricewaterhouseCoopers LLP
New York, New York
February 8, 1999
FSA-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
FIXED INCOME SERIES:
--------------------------------------------------------------
ALLIANCE
ALLIANCE INTERMEDIATE ALLIANCE ALLIANCE
MONEY GOVERNMENT QUALITY HIGH
MARKET SECURITIES BOND YIELD
FUND FUND FUND FUND
------------ ----------- ----------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $126,393,531.................................... $126,082,971
52,884,907.................................... $53,855,750
81,574,491.................................... $81,903,603
234,155,055.................................... $198,398,150
132,387,446....................................
68,826,963....................................
507,038,678....................................
860,530,108....................................
Receivable for Trust shares sold............................ -- -- -- --
Due from Equitable Life's General Account
(Note 3)................................................. 443,930 94,544 181,937 255,904
------------ ------------ ------------ -------------
Total assets........................................ 126,526,901 53,950,294 82,085,540 198,654,054
------------ ------------ ------------ -------------
LIABILITIES:
Payable for Trust shares purchased......................... 440,784 96,954 173,181 263,793
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)............... 179,001 351,346 445,982 206,805
------------ ------------ ------------ -------------
Total liabilities................................... 619,785 448,300 619,163 470,598
------------ ------------ ------------ -------------
NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS
(NOTE 5)................................................. $125,907,116 $53,501,994 $81,466,377 $198,183,456
============ ============ ============ =============
<CAPTION>
EQUITY SERIES:
-------------------------------------------------------------------
EQ/
T.ROWE PRICE PUTNAM ALLIANCE ALLIANCE
EQUITY GROWTH & GROWTH & EQUITY
INCOME INCOME VALUE INCOME INDEX
FUND FUND FUND FUND
------------- ------------- ------------ --------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $126,393,531....................................
52,884,907....................................
81,574,491....................................
234,155,055....................................
132,387,446.................................... $139,978,924
68,826,963.................................... $74,988,792
507,038,678.................................... $599,468,994
860,530,108................................... $1,153,005,368
Receivable for Trust shares sold............................ -- -- -- --
Due from Equitable Life's General Account
(Note 3)................................................. 1,106,116 672,410 1,904,968 11,149,643
------------ ----------- ------------ --------------
Total assets........................................ 141,085,040 75,661,202 601,373,962 1,164,155,011
------------ ----------- ------------ --------------
LIABILITIES:
Payable for Trust shares purchased......................... 1,106,116 672,410 1,608,787 11,151,657
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)............... 163,834 162,192 742,644 715,187
------------ ----------- ------------ --------------
Total liabilities................................... 1,269,950 834,602 2,351,431 11,866,844
------------ ----------- ------------ --------------
NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS
(NOTE 5)................................................. $139,815,090 $74,826,600 $599,022,531 $1,152,288,167
============ =========== ============ ==============
</TABLE>
- ---------------------
See Notes to Financial Statements.
FSA-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
-------------------------------------------------------------------
MERRILL
LYNCH ALLIANCE
BASIC VALUE COMMON MFS ALLIANCE
EQUITY STOCK RESEARCH GLOBAL
FUND FUND FUND FUND
------------ -------------- -------------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $ 56,223,556............................. $57,472,290
5,604,901,871............................. $7,729,532,779
88,527,561............................. $102,398,515
609,414,934............................. $727,190,716
127,648,223.............................
66,625,462.............................
17,147,883.............................
3,378,240,751.............................
Receivable for Trust shares sold........................... -- -- -- 568,149
Due from Equitable Life's General Account
(Note 3)................................................. 556,978 5,851,659 4,489,476 --
----------- -------------- ------------ -------------
Total assets........................................ 58,029,268 7,735,384,438 106,887,991 727,758,865
----------- -------------- ------------ -------------
LIABILITIES:
Payable for Trust shares purchased.......................... 556,953 5,468,912 4,489,434 --
Due to Equitable Life's General Account
(Note 3)................................................. -- -- -- 600,419
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)............... 119,600 4,142,124 148,866 358,278
----------- -------------- ------------ -------------
Total liabilities................................... 676,553 9,611,036 4,638,300 958,697
----------- -------------- ------------ -------------
NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS
(NOTE 5)................................................. $57,352,715 $7,725,773,402 $102,249,691 $726,800,168
=========== ============== ============ =============
<CAPTION>
EQUITY SERIES (CONTINUED):
------------------------------------------------------------------
T.ROWE MORGAN
PRICE STANLEY
INTER- EMERGING ALLIANCE
ALLIANCE NATIONAL MARKETS AGGRESSIVE
INTERNATIONAL STOCK EQUITY STOCK
FUND FUND FUND FUND
------------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $ 56,223,556.............................
5,604,901,871.............................
88,527,561.............................
609,414,934.............................
127,648,223............................. $130,220,038
66,625,462............................. $73,881,887
17,147,883............................. $16,084,234
3,378,240,751............................. $3,168,974,945
Receivable for Trust shares sold........................... 211,881 -- -- 6,354,007
Due from Equitable Life's General Account
(Note 3)................................................. -- 179,720 115,594 --
------------ ----------- ----------- --------------
Total assets........................................ 130,431,919 74,061,607 16,199,828 3,175,328,952
------------ ----------- ----------- --------------
LIABILITIES:
Payable for Trust shares purchased.......................... -- 179,720 115,594 --
Due to Equitable Life's General Account
(Note 3)................................................. 216,890 -- -- 6,160,056
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)............... 193,242 90,602 3,574,314 670,310
------------ ----------- ----------- --------------
Total liabilities................................... 410,132 270,322 3,689,908 6,830,366
------------ ----------- ----------- --------------
NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS
(NOTE 5)................................................. $130,021,787 $73,791,285 $12,509,920 $3,168,498,586
============ =========== =========== ==============
</TABLE>
- ---------------------
See Notes to Financial Statements.
FSA-4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
ASSET
ALLOCATION
EQUITY SERIES (CONCLUDED): SERIES
----------------------------------------------- ---------------
MFS
WARBURG PINCUS ALLIANCE EMERGING ALLIANCE
SMALL COMPANY SMALL CAP GROWTH CONSERVATIVE
VALUE GROWTH COMPANIES INVESTORS
FUND FUND FUND FUND
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $ 97,621,394............................ $90,331,538
128,288,230............................ $139,300,122
141,554,053............................ $177,252,578
111,402,771............................ $120,069,941
32,776,608............................
739,431,816............................
1,207,545,862............................
10,547,792............................
Receivable for Trust shares sold........................... -- 1,068,050 -- --
Due from Equitable Life's General Account
(Note 3)................................................. 680,223 -- 2,139,886 181,219
----------- ------------ ------------ ------------
Total assets........................................ 91,011,761 140,368,172 179,392,464 120,251,160
----------- ------------ ------------ ------------
LIABILITIES:
Payable for Trust shares purchased......................... 680,223 -- 2,139,886 182,458
Due to Equitable Life's General Account
(Note 3)................................................. -- 1,051,042 -- --
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)............... 128,730 410,448 49,828 205,350
----------- ------------ ------------ ------------
Total liabilities................................... 808,953 1,461,490 2,189,714 387,808
----------- ------------ ------------ ------------
NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS
(NOTE 5)................................................. $90,202,808 $138,906,682 $177,202,750 $119,863,352
<CAPTION>
ASSET ALLOCATION SERIES (CONTINUED):
---------------------------------------------------------------
MERRILL
EQ/ ALLIANCE LYNCH
PUTNAM GROWTH ALLIANCE WORLD
BALANCED INVESTORS BALANCED STRATEGY
FUND FUND FUND FUND
----------- ------------ -------------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $ 97,621,394............................
128,288,230............................
141,554,053............................
111,402,771............................
32,776,608............................ $34,787,837
739,431,816............................ $842,909,418
1,207,545,862............................ $1,322,780,470
10,547,792............................ $11,042,248
Receivable for Trust shares sold........................... -- -- 869,867 --
Due from Equitable Life's General Account
(Note 3)................................................. 344,836 1,901,167 -- 83,668
----------- ------------ -------------- -----------
Total assets........................................ 35,132,673 844,810,585 1,323,650,337 11,125,916
----------- ------------ -------------- -----------
LIABILITIES:
Payable for Trust shares purchased......................... 344,836 1,905,292 -- 83,668
Due to Equitable Life's General Account
(Note 3)................................................. -- -- 728,517 --
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)............... 147,171 687,262 186,147 1,772,681
----------- ------------ -------------- -----------
Total liabilities................................... 492,007 2,592,554 914,664 1,856,349
----------- ------------ -------------- -----------
NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS
(NOTE 5)................................................. $34,640,666 $842,218,031 $1,322,735,673 $ 9,269,567
=========== ============ ============== ===========
</TABLE>
- ---------------------
See Notes to Financial Statements.
FSA-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
FIXED INCOME SERIES:
-----------------------------------------------------------------
ALLIANCE
INTER-
ALLIANCE MEDIATE ALLIANCE ALLIANCE
MONEY GOVERNMENT QUALITY HIGH
MARKET SECURITIES BOND YIELD
FUND FUND FUND FUND
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts............................. $5,255,399 $2,342,433 $3,395,859 $ 20,512,530
---------- ---------- ---------- ------------
Expenses (Note 3):
Asset-based charges................................... 1,481,147 587,870 794,815 2,600,402
Less: Reduction for expense limitation...................... 48,970 7,750 -- --
---------- ---------- ---------- ------------
Net expenses.......................................... 1,432,177 580,120 794,815 2,600,402
---------- ---------- ---------- ------------
NET INVESTMENT INCOME (LOSS)................................ 3,823,222 1,762,313 2,601,044 17,912,128
---------- ---------- ---------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments................... 234,429 470,342 372,734 4,677
Realized gain distribution from
The Trusts.......................................... 3,630 -- 1,620,732 3,909,878
---------- ---------- ---------- ------------
Net realized gain (loss)................................. 238,059 470,342 1,993,466 3,914,555
Change in unrealized appreciation
(depreciation) of investments......................... 121,024 512,287 (486,113) (36,813,923)
---------- ---------- ---------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................................... 359,083 982,629 1,507,353 (32,899,368)
========== ========== ========== ============
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2)....................... $4,182,305 $2,744,942 $4,108,397 $(14,987,240)
========== ========== ========== ============
<CAPTION>
EQUITY SERIES:
---------------------------------------------------------------
EQ/
T. ROWE PUTNAM
PRICE GROWTH & ALLIANCE ALLIANCE
EQUITY INCOME GROWTH & EQUITY
INCOME VALUE INCOME INDEX
FUND FUND FUND FUND
---------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts............................. $2,277,162 $ 643,088 $ 1,653,807 $ 10,632,473
---------- ---------- ----------- ------------
Expenses (Note 3):
Asset-based charges................................... 1,304,543 670,969 6,396,117 11,997,835
Less: Reduction for expense limitation...................... -- -- -- --
---------- ---------- ----------- ------------
Net expenses.......................................... 1,304,543 670,969 6,396,117 11,997,835
---------- ---------- ----------- ------------
NET INVESTMENT INCOME (LOSS)................................ 972,619 (27,881) (4,742,310) (1,365,362)
---------- ---------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments................... (974,087) (339,484) 3,660,147 40,077,379
Realized gain distribution from
The Trusts.......................................... 2,932,028 580,684 48,006,831 339,719
---------- ---------- ----------- ------------
Net realized gain (loss)................................. 1,957,941 241,200 51,666,978 40,417,098
Change in unrealized appreciation
(depreciation) of investments......................... 4,171,888 5,418,025 39,346,894 170,263,193
---------- ---------- ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................................... 6,129,829 5,659,225 91,013,872 210,680,291
---------- ---------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2)....................... $7,102,448 $5,631,344 $86,271,562 $209,314,929
========== ========== =========== ============
</TABLE>
- ---------------------
See Notes to Financial Statements.
FSA-6
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
-----------------------------------------------------------------
MERRILL
LYNCH
BASIC ALLIANCE
VALUE COMMON MFS ALLIANCE
EQUITY STOCK RESEARCH GLOBAL
FUND FUND FUND FUND
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts............................. $ 550,754 $ 42,754,627 $ 249,000 $ 7,924,674
----------- -------------- ----------- ------------
Expenses (Note 3):
Asset-based charges................................... 494,290 95,988,818 735,308 8,877,655
Less: Reduction for expense limitation...................... -- 6,717,477 -- --
----------- -------------- ----------- ------------
Net expenses.......................................... 494,290 89,271,341 735,308 8,877,655
----------- -------------- ----------- ------------
NET INVESTMENT INCOME (LOSS)................................ 56,464 (46,516,714) (486,308) (952,981)
----------- -------------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments................... (1,204,767) 190,070,720 (916,443) 13,674,946
Realized gain distribution from
The Trusts.......................................... 1,908,414 932,028,578 -- 46,107,203
----------- -------------- ----------- ------------
Net realized gain (loss)................................. 703,647 1,122,099,298 (916,443) 59,782,149
Change in unrealized appreciation
(depreciation) of investments......................... 1,021,838 573,857,850 13,393,079 60,932,110
----------- -------------- ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................................... 1,725,485 1,695,957,148 12,476,636 120,714,259
=========== ============== =========== ============
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2)....................... $ 1,781,949 $1,649,440,434 $11,990,328 $119,761,278
=========== ============== =========== ============
<CAPTION>
EQUITY SERIES (CONTINUED):
---------------------------------------------------------------
MORGAN
T. ROWE STANLEY
ALLIANCE PRICE INTER- EMERGING ALLIANCE
INTER- NATIONAL- MARKETS AGGRESSIVE
NATIONAL STOCK EQUITY STOCK
FUND FUND FUND FUND
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts............................. $ 2,332,648 $ 628,616 $ 61,144 $ 14,559,406
----------- ----------- ----------- ------------
Expenses (Note 3):
Asset-based charges................................... 1,702,585 717,829 139,058 43,880,560
Less: Reduction for expense limitation...................... -- -- -- 3,621,990
----------- ----------- ----------- ------------
Net expenses.......................................... 1,702,585 717,829 139,058 40,258,570
----------- ----------- ----------- ------------
NET INVESTMENT INCOME (LOSS)................................ 630,063 (89,213) (77,914) (25,699,164)
----------- ----------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments................... (6,316,417) (2,187,587) (4,762,302) 76,319,984
Realized gain distribution from
The Trusts.......................................... 24,639 677 -- 153,501,697
----------- ----------- ----------- ------------
Net realized gain (loss)................................. (6,291,778) (2,186,910) (4,762,302) 229,821,681
Change in unrealized appreciation
(depreciation) of investments......................... 17,134,710 8,173,937 34,335 (233,439,908)
----------- ----------- ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................................... 10,842,932 5,987,027 (4,727,967) (3,618,227)
=========== =========== =========== ============
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2)....................... $11,472,995 $ 5,897,814 $(4,805,881) $ (29,317,391)
=========== =========== =========== =============
</TABLE>
- ---------------------
See Notes to Financial Statements.
FSA-7
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS (CONCLUDED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
EQUITY SERIES (CONCLUDED):
----------------------------------------------------------------
MFS
WARBURG PINCUS ALLIANCE EMERGING ALLIANCE
SMALL COMPANY SMALL CAP GROWTH CONSERVATIVE
VALUE GROWTH COMPANIES INVESTORS
FUND FUND FUND FUND
------------ ------------ ---------- -----------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts............................. $ 420,391 $ 11,795 $ 2,970 $ 4,213,562
------------ ------------ ----------- -----------
Expenses (Note 3):
Asset-based charges................................... 1,049,204 1,437,474 1,125,210 1,406,739
Less: Reduction for expense limitation...................... -- -- -- --
------------ ------------ ----------- -----------
Net expenses.......................................... 1,049,204 1,437,474 1,125,210 1,406,739
------------ ------------ ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ (628,813) (1,425,679) (1,122,240) 2,806,823
------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments................... (3,319,964) (18,408,722) (4,911,369) 1,336,530
Realized gain distribution from
The Trusts.......................................... -- -- -- 6,357,062
------------ ------------ ----------- -----------
Net realized gain (loss)................................. (3,319,964) (18,408,722) (4,911,369) 7,693,592
Change in unrealized appreciation
(depreciation) of investments......................... (7,312,118) 12,576,541 35,293,322 2,040,567
------------ ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................................... (10,632,082) (5,832,181) 30,381,953 9,734,159
============ ============ =========== ===========
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2)....................... $(11,260,895) $ (7,257,860) $29,259,713 $12,540,982
============ ============ =========== ===========
<CAPTION>
ASSET ALLOCATION SERIES:
-------------------------------------------------------------
MERRILL
EQ/ ALLIANCE LYNCH
PUTNAM GROWTH ALLIANCE WORLD
BALANCED INVESTORS BALANCED STRATEGY
FUND FUND FUND FUND
----------- ------------ -------------- ----------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts............................. $ 634,198 $ 15,542,047 $ 33,629,387 $ 83,000
---------- ------------ ------------ ---------
Expenses (Note 3):
Asset-based charges................................... 287,370 10,042,667 18,391,448 94,329
Less: Reduction for expense limitation...................... -- -- 2,004,680 --
---------- ------------ ------------ ---------
Net expenses.......................................... 287,370 10,042,667 16,386,768 94,329
---------- ------------ ------------ ---------
NET INVESTMENT INCOME (LOSS)................................ 346,828 5,499,380 17,242,619 (11,329)
---------- ------------ ------------ ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments................... 307,112 8,822,060 23,244,711 (103,174)
Realized gain distribution from
The Trusts.......................................... 395,016 67,065,259 110,287,707 --
---------- ------------ ------------ ---------
Net realized gain (loss)................................. 702,128 75,887,319 133,532,418 (103,174)
Change in unrealized appreciation
(depreciation) of investments......................... 1,408,394 40,944,576 42,665,225 648,068
---------- ------------ ------------ ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................................... 2,110,522 116,831,895 176,197,643 544,894
---------- ------------ ------------ ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2)....................... $2,457,350 $122,331,275 $193,440,262 $ 533,565
========== ============ ============ =========
</TABLE>
- ---------------------
See Notes to Financial Statements.
FSA-8
<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>
FIXED INCOME SERIES:
-----------------------------------------------------------------
ALLIANCE
MONEY MARKET ALLIANCE INTERMEDIATE
FUND GOVERNMENT SECURITIES FUND
------------------------------ -----------------------------
1998 1997 1998 1997
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ 3,823,222 $ 3,606,969 $ 1,762,313 $ 1,421,306
Net realized gain (loss) on investments.................. 238,059 236,951 470,342 63,438
Change in unrealized appreciation
(depreciation) of investments......................... 121,024 (78,466) 512,287 431,540
------------ ------------ ----------- -----------
Net increase in net assets from operations............... 4,182,305 3,765,454 2,744,942 1,916,284
------------ ------------ ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 59,238,443 86,657,302 10,106,543 7,536,973
Transfers from other Funds and
Guaranteed Interest Account......................... 99,124,881 47,922,157 23,196,411 8,017,226
------------ ------------ ----------- -----------
Total............................................ 158,363,324 134,579,459 33,302,954 15,554,199
------------ ------------ ----------- -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 25,401,484 16,145,603 5,018,282 3,204,151
Transfers to other Funds and
Guaranteed Interest Account......................... 108,901,266 117,776,744 14,425,062 6,576,233
Withdrawal and administrative charges................. 307,072 297,412 75,927 54,007
------------ ------------ ----------- -----------
Total............................................ 134,609,822 134,219,759 19,519,271 9,834,391
------------ ------------ ----------- -----------
Net increase (decrease) in net assets from
Contractowners transactions........................... 23,753,502 359,700 13,783,683 5,719,808
------------ ------------ ----------- -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... 99,791 (68,437) (40,620) (50,296)
------------ ------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 28,035,598 4,056,717 16,488,005 7,585,796
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 97,871,518 93,814,801 37,013,989 29,428,193
------------ ------------ ----------- -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $125,907,116 $ 97,871,518 $53,501,994 $37,013,989
============ ============ =========== ===========
<CAPTION>
FIXED INCOME SERIES:
----------------------------------------------------------------
ALLIANCE ALLIANCE
QUALITY BOND HIGH YIELD
FUND FUND
---------------------------- -----------------------------
1998 1997 1998 1997
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ 2,601,044 $ 1,622,820 $ 17,912,128 $ 10,021,713
Net realized gain (loss) on investments.................. 1,993,466 249,479 3,914,555 8,751,281
Change in unrealized appreciation
(depreciation) of investments......................... (486,113) 547,099 (36,813,923) (187,263)
----------- ----------- ------------ ------------
Net increase in net assets from operations............... 4,108,397 2,419,398 (14,987,240) 18,585,731
----------- ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 20,999,014 8,725,632 52,878,815 39,249,294
Transfers from other Funds and
Guaranteed Interest Account......................... 46,264,543 14,735,972 114,552,746 81,831,743
----------- ----------- ------------ ------------
Total............................................ 67,263,557 23,461,604 167,431,561 121,081,037
----------- ----------- ------------ ------------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 4,294,846 2,471,399 15,414,754 9,034,492
Transfers to other Funds and
Guaranteed Interest Account......................... 26,129,927 9,009,004 96,757,242 50,004,724
Withdrawal and administrative charges................. 64,190 49,238 269,447 180,111
----------- ----------- ------------ ------------
Total............................................ 30,488,963 11,529,641 112,441,443 59,219,327
----------- ----------- ------------ ------------
Net increase (decrease) in net assets from
Contractowners transactions........................... 36,774,594 11,931,963 54,990,118 61,861,710
----------- ----------- ------------ ------------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... (65,774) (51,466) (32,954) (195,148)
----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 40,817,217 14,299,895 39,969,924 80,252,293
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 40,649,160 26,349,265 158,213,532 77,961,239
----------- ----------- ------------ ------------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $81,466,377 $40,649,160 $198,183,456 $158,213,532
=========== =========== ============ ============
</TABLE>
- ---------------------
See Notes to Financial Statements.
FSA-9
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY SERIES:
--------------------------------------------------------------
T. ROWE PRICE EQ/PUTNAM
EQUITY INCOME GROWTH & INCOME VALUE
FUND(a) FUND(a)
----------------------------- ----------------------------
1998 1997 1998 1997
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ 972,619 $ 213,607 $ (27,881) $ 27,593
Net realized gain (loss) on investments.................. 1,957,941 84,219 241,200 48,562
Change in unrealized appreciation
(depreciation) of investments......................... 4,171,888 3,419,591 5,418,025 743,804
------------ ----------- ----------- -----------
Net increase in net assets from operations............... 7,102,448 3,717,417 5,631,344 819,959
------------ ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 34,984,402 14,253,368 21,041,270 9,287,300
Transfers from other Funds and
Guaranteed Interest Account......................... 70,500,028 49,127,513 31,492,288 21,624,425
------------ ----------- ----------- -----------
Total............................................ 105,484,430 63,380,881 52,533,558 30,911,725
------------ ----------- ----------- -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 4,063,205 461,902 2,208,567 221,732
Transfers to other Funds and
Guaranteed Interest Account......................... 26,010,302 8,775,894 9,702,715 2,466,969
Withdrawal and administrative charges................. 88,752 7,224 53,830 5,138
------------ ----------- ----------- -----------
Total............................................ 30,162,259 9,245,020 11,965,112 2,693,839
------------ ----------- ----------- -----------
Net increase (decrease) in net assets from
Contractowners transactions........................... 75,322,171 54,135,861 40,568,446 28,217,886
------------ ----------- ----------- -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... (94,421) (368,386) (127,918) (283,117)
------------ ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 82,330,198 57,484,892 46,071,872 28,754,728
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 57,484,892 -- 28,754,728 --
------------ ----------- ----------- -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $139,815,090 $57,484,892 $74,826,600 $28,754,728
============ =========== =========== ===========
<CAPTION>
EQUITY SERIES:
--------------------------------------------------------------
ALLIANCE ALLIANCE
GROWTH & INCOME EQUITY INDEX
FUND FUND
------------------------------- ----------------------------
1998 1997 1998 1997
------------- ------------ -------------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ (4,742,310) $ (881,670) $ (1,365,362) $ 785,831
Net realized gain (loss) on investments.................. 51,666,978 22,637,435 40,417,098 15,251,160
Change in unrealized appreciation
(depreciation) of investments......................... 39,346,894 34,617,976 170,263,193 98,430,290
------------- ------------ -------------- -----------
Net increase in net assets from operations............... 86,271,562 56,373,741 209,314,929 114,467,281
------------- ------------ -------------- -----------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 101,906,524 77,902,559 169,623,980 123,805,230
Transfers from other Funds and
Guaranteed Interest Account......................... 162,800,542 159,040,741 637,861,607 497,060,564
------------- ------------ -------------- -----------
Total............................................ 264,707,066 236,943,300 807,485,587 620,865,794
------------- ------------ -------------- -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 30,427,264 15,991,738 55,265,209 26,845,795
Transfers to other Funds and
Guaranteed Interest Account......................... 89,917,684 70,222,768 455,238,354 332,805,482
Withdrawal and administrative charges................. 678,233 387,138 1,207,740 650,256
------------- ------------ -------------- -----------
Total............................................ 121,023,181 86,601,644 511,711,303 360,301,533
------------- ------------ -------------- -----------
Net increase (decrease) in net assets from
Contractowners transactions........................... 143,683,885 150,341,656 295,774,284 260,564,261
------------- ------------ -------------- -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... (817,183) (337,427) (1,687,941) (491,351)
------------- ------------ -------------- -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 229,138,264 206,377,970 503,401,272 374,540,191
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 369,884,267 163,506,297 648,886,895 274,346,704
------------- ------------ -------------- -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $599,022,531 $369,884,267 $1,152,288,167 $648,886,895
============= ============ ============== ============
</TABLE>
- ---------------------
(a) Commenced operations on May 1, 1997.
See Notes to Financial Statements.
FSA-10
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
--------------------------------------------------------------------
ALLIANCE
MERRILL LYNCH BASIC VALUE COMMON STOCK
EQUITY FUND(a) FUND
------------------------------ -------------------------------------
1998 1997 1998 1997
----------- ----------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ 56,464 $ 28,039 $ (46,516,714) $ (40,194,434)
Net realized gain (loss) on investments.................. 703,647 32,936 1,122,099,298 520,414,631
Change in unrealized appreciation
(depreciation) of investments......................... 1,021,838 226,896 573,857,850 776,898,715
----------- ----------- -------------- --------------
Net increase in net assets from
operations............................................ 1,781,949 287,871 1,649,440,434 1,257,118,912
----------- ----------- -------------- --------------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 18,099,811 5,085,307 526,598,693 485,617,488
Transfers from other Funds and
Guaranteed Interest Account......................... 54,374,032 15,531,026 1,219,987,398 981,404,674
----------- ----------- -------------- --------------
Total............................................ 72,473,843 20,616,333 1,746,586,091 1,467,022,162
----------- ----------- -------------- --------------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 1,998,824 146,225 439,741,977 326,957,672
Transfers to other Funds and
Guaranteed Interest Account......................... 31,529,622 3,680,513 1,134,646,060 793,882,977
Withdrawal and administrative
charges............................................. 37,806 3,018 7,821,832 6,730,878
----------- ----------- -------------- --------------
Total............................................ 33,566,252 3,829,756 1,582,209,869 1,127,571,527
----------- ----------- -------------- --------------
Net increase (decrease) in net assets from
Contractowners transactions........................... 38,907,591 16,786,577 164,376,222 339,450,635
----------- ----------- -------------- --------------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... (112,369) (298,904) (12,019,228) (5,291,673)
----------- ----------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 40,577,171 16,775,544 1,801,797,428 1,591,277,874
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 16,775,544 -- 5,923,975,974 4,332,698,100
----------- ----------- -------------- --------------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $57,352,715 $16,775,544 $7,725,773,402 $5,923,975,974
=========== =========== ============== ==============
<CAPTION>
EQUITY SERIES (CONTINUED):
------------------------------------------------------------------
MFS RESEARCH ALLIANCE GLOBAL
FUND(a) FUND
------------------------------- ---------------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ (486,308) $ (44,322) $ (952,981) $ 4,053,343
Net realized gain (loss) on investments.................. (916,443) 156,450 59,782,149 44,106,582
Change in unrealized appreciation
(depreciation) of investments......................... 13,393,079 477,876 60,932,110 7,345,361
------------ ------------ ------------ ------------
Net increase in net assets from
operations............................................ 11,990,328 590,004 119,761,278 55,505,286
------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 26,220,920 9,395,788 73,052,084 89,835,392
Transfers from other Funds and
Guaranteed Interest Account......................... 79,372,885 21,884,490 97,000,214 100,167,043
------------ ------------ ------------ ------------
Total............................................ 105,593,805 31,280,278 170,052,298 190,002,435
------------ ------------ ------------ ------------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 2,234,932 315,298 45,379,156 38,003,491
Transfers to other Funds and
Guaranteed Interest Account......................... 39,937,639 3,913,603 124,416,716 93,151,966
Withdrawal and administrative
charges............................................. 56,352 4,474 1,061,880 1,013,918
------------ ------------ ------------ ------------
Total............................................ 42,228,923 4,233,375 170,857,752 132,169,375
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from
Contractowners transactions........................... 63,364,882 27,046,903 (805,454) 57,833,060
------------ ------------ ------------ ------------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... (280,049) (462,377) (667,287) (280,980)
------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 75,075,161 27,174,530 118,288,537 113,057,366
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 27,174,530 -- 608,511,631 495,454,265
------------ ------------ ------------ ------------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $102,249,691 $27,174,530 $726,800,168 $608,511,631
============ =========== ============ ============
</TABLE>
- ---------------------
(a) Commenced operations on May 1, 1997.
See Notes to Financial Statements.
FSA-11
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
-----------------------------------------------------------------
ALLIANCE T. ROWE PRICE
INTERNATIONAL INTERNATIONAL STOCK
FUND FUND(a)
------------------------------ -----------------------------
1998 1997 1998 1997
------------ ------------- ------------ -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ 630,063 $ 1,841,231 $ (89,213) $ (167,342)
Net realized gain (loss) on investments.................. (6,291,778) 8,984,846 (2,186,910) (1,454,589)
Change in unrealized appreciation
(depreciation) of investments......................... 17,134,710 (15,797,804) 8,173,937 (917,513)
------------ ------------ ----------- -----------
Net increase in net assets from
operations............................................ 11,472,995 (4,971,727) 5,897,814 (2,539,444)
------------ ------------ ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 18,021,919 27,672,360 17,268,615 11,943,016
Transfers from other Funds and
Guaranteed Interest Account......................... 252,313,930 151,532,780 79,807,973 48,742,022
------------ ------------ ----------- -----------
Total............................................ 270,335,849 179,205,140 97,076,588 60,685,038
------------ ------------ ----------- -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 9,618,434 9,154,376 2,262,558 551,644
Transfers to other Funds and
Guaranteed Interest Account......................... 259,822,531 143,958,994 64,643,746 19,727,736
Withdrawal and administrative
charges............................................. 226,908 226,612 65,025 12,207
------------ ------------ ----------- -----------
Total............................................ 269,667,873 153,339,982 66,971,329 20,291,587
------------ ------------ ----------- -----------
Net increase (decrease) in net assets from
Contractowners transactions........................... 667,976 25,865,158 30,105,259 40,393,451
------------ ------------ ----------- -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... (208,473) 8,298 (140,255) 74,460
------------ ------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 11,932,498 20,901,729 35,862,818 37,928,467
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 118,089,289 97,187,560 37,928,467 --
------------ ------------ ----------- -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $130,021,787 $118,089,289 $73,791,285 $37,928,467
============ ============ =========== ===========
<CAPTION>
EQUITY SERIES (CONTINUED):
-----------------------------------------------------------------
MORGAN STANLEY ALLIANCE
EMERGING MARKETS EQUITY AGGRESSIVE STOCK
FUND(b) FUND
---------------------------- ---------------------------------
1998 1997 1998 1997
----------- ------------ -------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ (77,914) $ 15,148 $ (25,699,164) $ (36,023,732)
Net realized gain (loss) on investments.................. (4,762,302) (875,317) 229,821,681 414,890,550
Change in unrealized appreciation
(depreciation) of investments......................... 34,335 (1,097,984) (233,439,908) (79,262,405)
----------- ------------ --------------- --------------
Net increase in net assets from
operations............................................ (4,805,881) (1,958,153) (29,317,391) 299,604,413
----------- ------------ -------------- --------------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 4,268,805 2,087,150 292,963,500 378,453,001
Transfers from other Funds and
Guaranteed Interest Account......................... 58,497,186 17,543,713 837,060,745 1,226,614,217
----------- ------------ -------------- --------------
Total............................................ 62,765,991 19,630,863 1,130,024,245 1,605,067,218
----------- ------------ -------------- --------------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 371,931 38,081 246,890,973 223,777,455
Transfers to other Funds and
Guaranteed Interest Account......................... 55,007,653 10,197,807 1,105,075,546 1,226,219,275
Withdrawal and administrative
charges............................................. 12,342 1,449 5,526,894 5,581,896
----------- ------------ -------------- --------------
Total............................................ 55,391,926 10,237,337 1,357,493,413 1,455,578,626
----------- ------------ -------------- --------------
Net increase (decrease) in net assets from
Contractowners transactions........................... 7,374,065 9,393,526 (227,469,168) 149,488,592
----------- ------------ -------------- --------------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... 1,295,969 1,210,394 63,901 (445,491)
----------- ------------ -------------- --------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 3,864,153 8,645,767 (256,722,658) 448,647,514
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 8,645,767 -- 3,425,221,244 2,976,573,730
----------- ------------ -------------- --------------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $12,509,920 $ 8,645,767 $3,168,498,586 $3,425,221,244
============ ============ ============== ===============
</TABLE>
- ---------------------
(a) Commenced operations on May 1, 1997.
(b) Commenced operations on August 20, 1997.
See Notes to Financial Statements.
FSA-12
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY SERIES (CONCLUDED):
-----------------------------------------------------------------
WARBURG PINCUS ALLIANCE
SMALL COMPANY VALUE SMALL CAP GROWTH
FUND(a) FUND(a)
------------------------------- -------------------------------
1998 1997 1998 1997
------------ ----------- ------------- ---------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ (628,813) $ (233,472) $ (1,425,679) $ (226,153)
Net realized gain (loss) on investments.................. (3,319,964) (398,282) (18,408,722) 2,928,197
Change in unrealized appreciation
(depreciation) of investments......................... (7,312,118) 22,263 12,576,541 (1,564,649)
------------ ------------ ------------- ------------
Net increase in net assets from operations............... (11,260,895) (609,491) (7,257,860) 1,137,395
------------ ------------ ------------- ------------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 25,746,572 17,932,084 43,309,112 15,686,202
Transfers from other Funds and
Guaranteed Interest Account......................... 45,701,935 95,994,086 363,094,583 134,506,874
------------ ------------ ------------- ------------
Total............................................ 71,448,507 113,926,170 406,403,695 150,193,076
------------ ------------ ------------- ------------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 3,085,017 710,649 3,905,019 644,310
Transfers to other Funds and
Guaranteed Interest Account......................... 34,873,684 44,374,048 319,261,827 87,128,302
Withdrawal and administrative charges................. 105,234 13,343 112,019 7,383
------------ ------------ ------------- ------------
Total............................................ 38,063,935 45,098,040 323,278,865 87,779,995
------------ ------------ ------------- ------------
Net increase (decrease) in net assets from
Contractowners transactions........................... 33,384,572 68,828,130 83,124,830 62,413,081
------------ ------------ ------------- ------------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... 13,573 (153,081) (23,520) (487,244)
------------ ------------ ------------- ------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 22,137,250 68,065,558 75,843,450 63,063,232
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 68,065,558 -- 63,063,232 --
------------ ------------ ------------- ------------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $ 90,202,808 $ 68,065,558 $138,906,682 $ 63,063,232
============ ============ ============ ============
<CAPTION>
EQUITY SERIES (CONCLUDED):
---------------------------------
MFS EMERGING
GROWTH COMPANIES
FUND(a)
---------------------------------
1998 1997
------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ (1,122,240) $ (59,318)
Net realized gain (loss) on investments.................. (4,911,369) 410,582
Change in unrealized appreciation
(depreciation) of investments......................... 35,293,322 405,203
------------- -----------
Net increase in net assets from operations............... 29,259,713 756,467
------------- -----------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 45,965,336 10,348,726
Transfers from other Funds and
Guaranteed Interest Account......................... 245,232,174 41,158,325
------------- -----------
Total............................................ 291,197,510 51,507,051
------------- -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 3,422,691 272,079
Transfers to other Funds and
Guaranteed Interest Account......................... 170,609,391 20,257,025
Withdrawal and administrative charges................. 94,296 3,323
------------- -----------
Total............................................ 174,126,378 20,532,427
------------- -----------
Net increase (decrease) in net assets from
Contractowners transactions........................... 117,071,132 30,974,624
------------- -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... (199,446) (659,740)
------------- -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 146,131,399 31,071,351
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 31,071,351 --
------------- -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $177,202,750 $31,071,351
============ ===========
</TABLE>
- ---------------------
(a) Commenced operations on May 1, 1997.
See Notes to Financial Statements.
FSA-13
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
ASSET ALLOCATION SERIES:
-------------------------------------------------------------
ALLIANCE EQ/PUTNAM
CONSERVATIVE INVESTORS BALANCED
FUND FUND(a)
--------------------------- -----------------------------
1998 1997 1998 1997
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ 2,806,823 $ 2,448,726 $ 346,828 $ 129,710
Net realized gain (loss) on investments.................. 7,693,592 3,730,623 702,128 115,430
Change in unrealized appreciation
(depreciation) of investments......................... 2,040,567 3,477,016 1,408,394 602,835
------------ ----------- ----------- -----------
Net increase in net assets from operations............... 12,540,982 9,656,365 2,457,350 847,975
------------ ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 19,140,568 11,365,584 10,044,027 3,699,337
Transfers from other Funds and
Guaranteed Interest Account......................... 16,914,697 8,530,415 24,576,797 15,752,330
------------ ----------- ----------- -----------
Total............................................ 36,055,265 19,895,999 34,620,824 19,451,667
------------ ----------- ----------- -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 8,188,450 7,295,059 975,331 192,650
Transfers to other Funds and
Guaranteed Interest Account......................... 12,810,163 14,511,104 13,658,260 7,250,221
Withdrawal and administrative charges................. 167,275 162,391 20,744 1,654
------------ ----------- ----------- -----------
Total............................................ 21,165,888 21,968,554 14,654,335 7,444,525
------------ ----------- ----------- -----------
Net increase (decrease) in net assets from
Contractowners transactions........................... 14,889,377 (2,072,555) 19,966,489 12,007,142
------------ ----------- ----------- -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... (230,218) (172,151) (204,197) (434,093)
------------ ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 27,200,141 7,411,659 22,219,642 12,421,024
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 92,663,211 85,251,552 12,421,024 --
------------ ----------- ----------- -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $119,863,352 $92,663,211 $34,640,666 $12,421,024
============ =========== =========== ===========
<CAPTION>
ASSET ALLOCATION SERIES:
----------------------------------
ALLIANCE
GROWTH INVESTORS
FUND
----------------------------------
1998 1997
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ 5,499,380 $ 7,374,359
Net realized gain (loss) on investments.................. 75,887,319 38,624,261
Change in unrealized appreciation
(depreciation) of investments......................... 40,944,576 40,925,116
------------ ------------
Net increase in net assets from operations............... 122,331,275 86,923,736
------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions......................................... 90,895,614 96,835,654
Transfers from other Funds and
Guaranteed Interest Account......................... 81,033,459 86,565,969
------------ ------------
Total............................................ 171,929,073 183,401,623
------------ ------------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.................................. 50,079,041 39,593,409
Transfers to other Funds and
Guaranteed Interest Account......................... 81,495,051 76,718,000
Withdrawal and administrative charges................. 1,338,300 1,162,210
------------ ------------
Total............................................ 132,912,392 117,473,619
------------ ------------
Net increase (decrease) in net assets from
Contractowners transactions........................... 39,016,681 65,928,004
------------ ------------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3)......... (840,403) (551,891)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS........................... 160,507,553 152,299,849
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS........................... 681,710,478 529,410,629
------------ ------------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS........................... $842,218,031 $681,710,478
============ ============
</TABLE>
- ---------------------
(a) Commenced operations on May 1, 1997.
See Notes to Financial Statements.
FSA-14
<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>
ASSET ALLOCATION SERIES (CONCLUDED):
--------------------------------------
ALLIANCE
BALANCED
FUND
--------------------------------------
1998 1997
-------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)...................................... $ 17,242,619 $ 23,301,713
Net realized gain (loss) on investments........................... 133,532,418 79,099,392
Change in unrealized appreciation
(depreciation) of investments.................................. 42,665,225 45,961,244
-------------- --------------
Net increase in net assets from operations........................ 193,440,262 148,362,349
-------------- --------------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions.................................................. 76,987,846 84,629,925
Transfers from other Funds and
Guaranteed Interest Account.................................. 168,586,346 112,630,041
-------------- --------------
Total..................................................... 245,574,192 197,259,966
-------------- --------------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits........................................... 107,639,830 96,288,584
Transfers to other Funds and
Guaranteed Interest Account.................................. 202,971,507 170,604,239
Withdrawal and administrative charges.......................... 1,699,980 1,889,094
-------------- --------------
Total..................................................... 312,311,317 268,781,917
-------------- --------------
Net increase (decrease) in net assets from
Contractowners transactions.................................... (66,737,125) (71,521,951)
-------------- --------------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3).................. (1,923,481) (620,223)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS.................................... 124,779,656 76,220,175
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS.................................... 1,197,956,017 1,121,735,842
-------------- --------------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS.................................... $1,322,735,673 $1,197,956,017
============== ==============
<CAPTION>
ASSET ALLOCATION SERIES (CONCLUDED):
----------------------------------
MERRILL LYNCH WORLD
STRATEGY FUND(a)
------------------------------
1998 1997
---------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)...................................... $ (11,329) $ 16,034
Net realized gain (loss) on investments........................... (103,174) 33,737
Change in unrealized appreciation
(depreciation) of investments.................................. 648,068 (153,612)
---------- -----------
Net increase in net assets from operations........................ 533,565 (103,841)
---------- -----------
FROM CONTRACTOWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions.................................................. 1,929,793 1,913,915
Transfers from other Funds and
Guaranteed Interest Account.................................. 7,365,231 8,826,145
---------- -----------
Total..................................................... 9,295,024 10,740,060
---------- -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits........................................... 340,072 156,911
Transfers to other Funds and
Guaranteed Interest Account.................................. 5,454,326 4,913,746
Withdrawal and administrative charges.......................... 10,176 622
---------- -----------
Total..................................................... 5,804,574 5,071,279
---------- -----------
Net increase (decrease) in net assets from
Contractowners transactions.................................... 3,490,450 5,668,781
---------- -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3).................. (179,747) (139,641)
---------- -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACTOWNERS.................................... 3,844,268 5,425,299
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACTOWNERS.................................... 5,425,299 --
---------- -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACTOWNERS.................................... $9,269,567 $ 5,425,299
========== ===========
</TABLE>
- ---------------------
(a) Commenced operations on May 1, 1997.
See Notes to Financial Statements.
FSA-15
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
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. Alliance
Capital Management L.P., an indirect, majority-owned subsidiary of
Equitable Life, manages The Hudson River Trust (HR Trust) and is investment
adviser for all of the investment funds of HR Trust. EQ Financial
Consultants, Inc., an indirect, wholly owned subsidiary of Equitable Life,
manages the EQ Advisors Trust (EQ Trust) and has overall responsibility for
general management and administration of EQ Trust. The Account consists of
twenty-four investment funds (Funds): Alliance Money Market Fund, Alliance
Intermediate Government Securities Fund, Alliance Quality Bond Fund,
Alliance High Yield Fund, T. Rowe Price Equity Income Fund, EQ/Putnam
Growth & Income Value Fund, Alliance Growth & Income Fund, Alliance Equity
Index Fund, Merrill Lynch Basic Value Equity Fund, Alliance Common Stock
Fund, MFS Research Fund, Alliance Global Fund, Alliance International Fund,
T. Rowe Price International Stock Fund, Morgan Stanley Emerging Markets
Equity Fund, Alliance Aggressive Stock Fund, Warburg Pincus Small Company
Value Fund, Alliance Small Cap Growth Fund, MFS Emerging Growth Companies
Fund, Alliance Conservative Investors Fund, EQ/Putnam Balanced Fund,
Alliance Growth Investors Fund, Alliance Balanced Fund and Merrill Lynch
World Strategy Fund. The assets in each fund are invested in shares of a
corresponding portfolio (Portfolio) of a mutual fund, Class 1A or Class 1B
shares of HR Trust or Class 1B shares of EQ Trust (Collectively, the
"Trusts"). Class 1A and 1B shares are offered by the Trust at net asset
value. Both classes of shares are subject to fees for investment management
and advisory services and other Trust expenses. Class 1A shares are not
subject to distribution fees imposed pursuant to a distribution plan. Class
1B shares are subject to distribution fees imposed under a distribution
plan (herein, the "Rule 12b-1 Plans") adopted pursuant to Rule 12b-1 under
the 1940 Act, as amended. The Rule 12b-1 Plans provide that the Trusts, on
behalf of each Fund, may charge annually up to 0.25% of the average daily
net assets of a Fund attributable to its Class 1B shares in respect of
activities primarily intended to result in the sale of the Class 1B shares.
These fees are reflected in the net asset value of the shares. The Trusts
are open-end, diversified investment management companies that invest
separate account assets of insurance companies.
EQFC earns fees from both Trusts under distribution agreements held with
the Trusts. EQFC also earns fees under an investment management agreement
with the EQ Trust. Alliance earns fees under an investment advisory
agreement with the HR Trust.
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. Equitable Life's General
Account is subject to creditor rights. Due to/from Equitable Life's General
Account represents amounts receivable/payable to the General Account is
predominately related to policy-related transactions, premiums, surrenders
and death benefits.
FSA-16
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
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 less liabilities.
Investment transactions are recorded by the Account on the trade date.
Dividends are declared by HR Trust at the end of each quarter and by EQ
Trust in the fourth quarter on the ex-dividend date. Dividends and capital
gain distributions are automatically reinvested on the ex-dividend 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 are distributed by the Trusts 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. Equitable Life retains the right to
charge for any federal income tax incurred which is attributable to the
Account if the law is changed.
3. Asset Charges
The following charges are made directly against the daily net assets of the
Account and are reflected daily in the computation of the accumulation unit
values of the Contracts:
<TABLE>
<CAPTION>
DEATH MORTALITY EXPENSE FINANCIAL
BENEFITS RISKS EXPENSES RISKS ACCOUNTING TOTAL
------------- ------------- ------------- ------------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
EQUI-VEST/
MOMENTUM
CONTRACTS
Alliance Money Market Fund,
Alliance Balanced Fund
Alliance Common Stock Fund 0.05% 0.30% 0.60% 0.30% 0.24% 1.49%
All Other Funds 0.05% 0.30% 0.60% 0.15% 0.24% 1.34%
MOMENTUM PLUS CONTRACTS--ALL
FUNDS -- 0.50% 0.25% 0.60% -- 1.35%
OLD CONTRACTS
Common Stock and Money Market
Funds 0.05% 0.45% 0.16% 0.08% -- .74%
EQUIPLAN CONTRACTS
Common Stock and
Intermediate Government
Securities Funds 0.05% 0.45% 0.16% 0.08% -- .74%
EQUI-VEST SERIES 300 & SERIES 400
CONTRACTS
Alliance Money Market Fund
Alliance Common Stock Fund
Alliance Aggressive Stock Fund
Alliance Balanced Fund -- 0.60% 0.25% 0.50% -- 1.35%
All Other Funds -- 0.60% 0.24%* 0.50% -- 1.34%
</TABLE>
FSA-17
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
3. Asset Charges (Continued)
<TABLE>
<CAPTION>
DEATH MORTALITY EXPENSE FINANCIAL
BENEFITS RISKS EXPENSES RISKS ACCOUNTING TOTAL
------------- ------------- ------------- ------------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
EQUI-VEST SERIES 500 CONTRACTS
All Funds -- 0.70% 0.25% 0.50% -- 1.45%
EQUI-VEST SERIES 600 CONTRACTS
All Funds -- 0.45% 0.25% 0.50% -- 1.20%
</TABLE>
----------
* During 1998, Equitable Life charged EQUI-VEST Series 300 and 400
Contracts 0.24% against the assets of the HR Trust and EQ Trust Funds
for expenses, except as noted. This voluntary expense limitation
discounted from 0.25% to 0.24% 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 Alliance Money Market Fund, the
Alliance Common Stock Fund, the Alliance Aggressive Stock Fund, the
Alliance Balanced Funds and 1% for the Old Contracts and EQUIPLAN
Contracts.
Under the Contracts, the total charges may be reallocated among the various
expense categories. Equitable Life, however, intends to limit any possible
reallocation to include only the expense risks, mortality risks and death
benefit charges.
4. Contributions, Payments, Transfers and Charges
Contributions represent participant contributions under EQUI-VEST,
Momentum, Momentum Plus and EQUI-VEST Series 300 through 600 Contracts (but
excludes amounts allocated to the Guaranteed Interest Account, which are
reflected in the General Account) and participant contributions under other
Contracts (Old Contracts, EQUIPLAN) 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 through 600 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 through 600
Contracts.
FSA-18
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Continued):
Accumulation units issued and redeemed during the periods indicated were:
(Acronym BP refers to total Basis Points charged for that product as
described in Footnote 3)
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Fixed Income Series:
ALLIANCE MONEY MARKET FUND
- --------------------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... 1,229,299 837,383
Momentum Contracts.......................................... 386,247 483,055
Momentum Plus Contracts 135 BP.............................. 503,516 588,908
Momentum Plus Contracts 100 BP.............................. 7,375 10,050
Old Contracts............................................... 42 120,867
EQUI-VEST Contracts Series 300 & 400 135 BP................. 458,194 258,260
EQUI-VEST Contracts Series 500 145 BP....................... 547 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Redeemed -- EQUI-VEST Contracts......................................... 941,797 877,393
Momentum Contracts.......................................... 326,686 415,858
Momentum Plus Contracts 135 BP.............................. 506,664 564,110
Momentum Plus Contracts 100 BP.............................. 10,102 10,333
Old Contracts............................................... 2,025 1,572
EQUI-VEST Contracts Series 300 & 400 135 BP................. 341,437 277,148
EQUI-VEST Contracts Series 500 145 BP....................... 156 --
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND
- ------------------------------------------------
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 5,893 5,215
Momentum Plus Contracts 135 BP.............................. 50,402 29,724
Momentum Plus Contracts 100 BP.............................. 1,592 804
EQUIPLAN CONTRACTS.......................................... 4 49,549
EQUI-VEST Contracts Series 300 & 400 134 BP................. 216,535 105,144
EQUI-VEST Contracts Series 500 145 BP....................... 78 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 4,863 4,851
Momentum Plus Contracts 135 BP.............................. 51,462 31,521
Momentum Plus Contracts 100 BP.............................. 471 813
EQUIPLAN CONTRACTS.......................................... 4,747 2
EQUI-VEST Contracts Series 300 & 400 134 BP................. 103,688 50,075
EQUI-VEST Contracts Series 500 145 BP....................... 45 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-19
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Fixed Income Series (Continued):
ALLIANCE QUALITY BOND FUND
- --------------------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 10,469 7,848
Momentum Plus Contracts 135 BP.............................. 36,968 22,668
Momentum Plus Contracts 100 BP.............................. 444 449
Old Contracts............................................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 483,053 167,788
EQUI-VEST Contracts Series 500 145 BP....................... 146 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 5,361 5,005
Momentum Plus Contracts 135 BP.............................. 27,523 12,495
Momentum Plus Contracts 100 BP.............................. 182 636
Old Contracts............................................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 209,302 80,367
EQUI-VEST Contracts Series 500 145 BP....................... 19 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
ALLIANCE HIGH YIELD FUND
- -----------------------
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 19,540 17,805
Momentum Plus Contracts 135 BP.............................. 45,063 62,992
Momentum Plus Contracts 100 BP.............................. 1,531 1,622
Old Contracts............................................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 976,709 726,147
EQUI-VEST Contracts Series 500 145 BP....................... 387 --
EQUI-VEST Contracts Series 600 120 BP....................... 1 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 11,692 6,772
Momentum Plus Contracts 135 BP.............................. 55,069 42,608
Momentum Plus Contracts 100 BP.............................. 1,524 1,327
Old Contracts............................................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 643,692 338,338
EQUI-VEST Contracts Series 500 145 BP....................... 8 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-20
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Equity Series:
T. ROWE PRICE EQUITY INCOME FUND
- -------------------------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 1,360 --
Momentum Plus Contracts 135 BP.............................. 3,355 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 838,991 554,196
EQUI-VEST Contracts Series 500 145 BP....................... 418 --
EQUI-VEST Contracts Series 600 120 BP....................... 1 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 214 --
Momentum Plus Contracts 135 BP.............................. 628 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 244,081 79,255
EQUI-VEST Contracts Series 500 145 BP....................... -- --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
EQ/PUTNAM GROWTH & INCOME VALUE FUND
- ------------------------------------
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 523 --
Momentum Plus Contracts 135 BP.............................. 2,572 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 431,414 273,498
EQUI-VEST Contracts Series 500 145 BP....................... 407 --
EQUI-VEST Contracts Series 600 120 BP....................... 1 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... -- --
Momentum Plus Contracts 135 BP.............................. 328 --
Momentum Plus Contracts 100 BP.............................. 507 --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 99,601 23,834
EQUI-VEST Contracts Series 500 145 BP....................... -- --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-21
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Equity Series (Continued):
ALLIANCE GROWTH & INCOME FUND
- -----------------------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 52,613 45,474
Momentum Plus Contracts 135 BP.............................. 113,506 116,065
Momentum Plus Contracts 100 BP.............................. 4,425 3,889
Momentum Plus Contracts 90 BP............................... 642 1,441
EQUI-VEST Contracts Series 300 & 400 134 BP................. 1,224,228 1,286,205
EQUI-VEST Contracts Series 500 145 BP....................... 1,401 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 25,771 17,193
Momentum Plus Contracts 135 BP.............................. 87,335 46,155
Momentum Plus Contracts 100 BP.............................. 1,838 2,901
Momentum Plus Contracts 90 BP............................... 38 337
EQUI-VEST Contracts Series 300 & 400 134 BP................. 548,572 462,065
EQUI-VEST Contracts Series 500 145 BP....................... 9 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
ALLIANCE EQUITY INDEX FUND
- --------------------------
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 79,518 --
Momentum Plus Contracts 135 BP.............................. 205,393 --
Momentum Plus Contracts 100 BP.............................. 6,938 --
Momentum Plus Contracts 90 BP............................... 1,097 --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 3,094,562 2,967,392
EQUI-VEST Contracts Series 500 145 BP....................... 2,295 --
EQUI-VEST Contracts Series 600 120 BP....................... 3 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 37,943 --
Momentum Plus Contracts 135 BP.............................. 153,058 --
Momentum Plus Contracts 100 BP.............................. 1,574 --
Momentum Plus Contracts 90 BP............................... 193 --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 1,974,951 1,768,139
EQUI-VEST Contracts Series 500 145 BP....................... 44 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-22
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Equity Series (Continued):
MERRILL LYNCH BASIC VALUE EQUITY FUND
- -------------------------------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 3,082 --
Momentum Plus Contracts 135 BP.............................. 2,932 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 563,336 177,242
EQUI-VEST Contracts Series 500 145 BP....................... 352 --
EQUI-VEST Contracts Series 600 120 BP....................... 1 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... -- --
Momentum Plus Contracts 135 BP.............................. 991 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 263,606 32,592
EQUI-VEST Contracts Series 500 145 BP....................... 10 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
ALLIANCE COMMON STOCK FUND
- --------------------------
Issued -- EQUI-VEST Contracts......................................... 4,199,955 4,383,156
Momentum Contracts.......................................... 171,967 204,382
Momentum Plus Contracts 135 BP.............................. 479,798 545,202
Momentum Plus Contracts 100 BP.............................. 10,617 41,653
Momentum Plus Contracts 90 BP............................... 2,467 6,431
Old Contracts............................................... 19 301,258
EQUIPLAN Contracts.......................................... 4 86,999
EQUI-VEST Contracts Series 300 & 400 135 BP................. 2,035,253 1,968,780
EQUI-VEST Contracts Series 500 145 BP....................... 4,784 --
EQUI-VEST Contracts Series 600 120 BP....................... 2 --
Redeemed -- EQUI-VEST Contracts......................................... 4,354,955 3,930,073
Momentum Contracts.......................................... 169,605 134,959
Momentum Plus Contracts 135 BP.............................. 539,175 354,590
Momentum Plus Contracts 100 BP.............................. 8,027 142,434
Momentum Plus Contracts 90 BP............................... 686 1,552
Old Contracts............................................... 42,795 3,085
EQUIPLAN Contracts.......................................... 14,746 1,986
EQUI-VEST Contracts Series 300 & 400 135 BP................. 992,260 660,995
EQUI-VEST Contracts Series 500 145 BP....................... 56 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-23
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Equity Series (Continued):
MFS RESEARCH FUND
- -----------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 4,266 --
Momentum Plus Contracts 135 BP.............................. 3,956 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 811,244 273,002
EQUI-VEST Contracts Series 500 145 BP....................... 897 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 455 --
Momentum Plus Contracts 135 BP.............................. 1,331 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 327,759 36,730
EQUI-VEST Contracts Series 500 145 BP....................... 11 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
ALLIANCE GLOBAL FUND
- --------------------
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 49,409 67,282
Momentum Plus Contracts 135 BP.............................. 127,169 173,371
Momentum Plus Contracts 100 BP.............................. 2,960 3,421
Momentum Plus Contracts 90 BP............................... 1,062 2,872
EQUI-VEST Contracts Series 300 & 400 134 BP................. 885,709 1,087,193
EQUI-VEST Contracts Series 500 145 BP....................... 509 --
EQUI-VEST Contracts Series 600 120 BP....................... 1 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 40,074 36,989
Momentum Plus Contracts 135 BP.............................. 182,741 151,688
Momentum Plus Contracts 100 BP.............................. 3,546 3,187
Momentum Plus Contracts 90 BP............................... 266 468
EQUI-VEST Contracts Series 300 & 400 134 BP................. 859,826 712,463
EQUI-VEST Contracts Series 500 145 BP....................... 12 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-24
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Equity Series (Continued):
ALLIANCE INTERNATIONAL FUND
- ---------------------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 19,308 23,465
Momentum Plus Contracts 135 BP.............................. 45,097 61,102
Momentum Plus Contracts 100 BP.............................. 1,430 8,513
Momentum Plus Contracts 90 BP............................... 368 1,175
EQUI-VEST Contracts Series 300 & 400 134 BP................. 2,265,890 1,473,483
EQUI-VEST Contracts Series 500 145 BP....................... 149 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 14,348 10,479
Momentum Plus Contracts 135 BP.............................. 43,776 25,904
Momentum Plus Contracts 100 BP.............................. 860 25,384
Momentum Plus Contracts 90 BP............................... 162 387
EQUI-VEST Contracts Series 300 & 400 134 BP................. 2,262,822 1,268,707
EQUI-VEST Contracts Series 500 145 BP....................... 4 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
T. ROWE PRICE INTERNATIONAL STOCK FUND
- --------------------------------------
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 1,408 --
Momentum Plus Contracts 135 BP.............................. 3,038 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 922,463 590,328
EQUI-VEST Contracts Series 500 145 BP....................... 245 --
EQUI-VEST Contracts Series 600 120 BP....................... 1 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 904 --
Momentum Plus Contracts 135 BP.............................. 401 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 640,201 201,762
EQUI-VEST Contracts Series 500 145 BP....................... -- --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-25
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Equity Series (Continued):
MORGAN STANLEY EMERGING MARKETS EQUITY FUND
- -------------------------------------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 453 --
Momentum Plus Contracts 135 BP.............................. 1,191 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 971,105 228,577
EQUI-VEST Contracts Series 500 145 BP....................... 86 --
EQUI-VEST Contracts Series 600 120 BP....................... 1 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... -- --
Momentum Plus Contracts 135 BP.............................. 84 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 863,432 119,707
EQUI-VEST Contracts Series 500 145 BP....................... 2 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
ALLIANCE AGGRESSIVE STOCK FUND
- ------------------------------
Issued -- EQUI-VEST Contracts......................................... 7,874,975 12,306,387
Momentum Contracts.......................................... 567,249 663,082
Momentum Plus Contracts 135 BP.............................. 444,735 574,827
Momentum Plus Contracts 100 BP.............................. 10,329 36,380
Momentum Plus Contracts 90 BP............................... 2,726 9,299
EQUI-VEST Contracts Series 300 & 400 135 BP................. 2,038,278 2,341,814
EQUI-VEST Contracts Series 500 145 BP....................... 1,374 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Redeemed -- EQUI-VEST Contracts......................................... 10,271,285 12,221,170
Momentum Contracts.......................................... 604,014 506,394
Momentum Plus Contracts 135 BP.............................. 567,458 369,618
Momentum Plus Contracts 100 BP.............................. 8,422 107,896
Momentum Plus Contracts 90 BP............................... 1,959 2,386
EQUI-VEST Contracts Series 300 & 400 135 BP................. 1,922,386 1,583,469
EQUI-VEST Contracts Series 500 145 BP....................... 2 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-26
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Equity Series (Continued):
WARBURG PINCUS SMALL COMPANY VALUE FUND
- ---------------------------------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 423 --
Momentum Plus Contracts 135 BP.............................. 2,025 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 612,043 944,293
EQUI-VEST Contracts Series 500 145 BP....................... 327 --
EQUI-VEST Contracts Series 600 120 BP....................... 2 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 61 --
Momentum Plus Contracts 135 BP.............................. 482 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 329,886 367,754
EQUI-VEST Contracts Series 500 145 BP....................... 7 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
ALLIANCE SMALL CAP GROWTH FUND
- ------------------------------
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 28,706 6,275
Momentum Plus Contracts 135 BP.............................. 47,698 8,595
Momentum Plus Contracts 100 BP.............................. 305 --
Momentum Plus Contracts 90 BP............................... 977 466
EQUI-VEST Contracts Series 300 & 400 134 BP................. 3,265,688 1,187,782
EQUI-VEST Contracts Series 500 145 BP....................... 603 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 7,539 139
Momentum Plus Contracts 135 BP.............................. 14,989 743
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... 119 700,040
EQUI-VEST Contracts Series 300 & 400 134 BP................. 2,652,769 --
EQUI-VEST Contracts Series 500 145 BP....................... -- --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-27
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Equity Series (Concluded):
MFS EMERGING GROWTH COMPANIES FUND
- ----------------------------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 5,123 --
Momentum Plus Contracts 135 BP.............................. 8,576 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 2,078,356 424,497
EQUI-VEST Contracts Series 500 145 BP....................... 1,523 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... -- --
Momentum Plus Contracts 135 BP.............................. 1,491 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 1,244,873 168,426
EQUI-VEST Contracts Series 500 145 BP....................... -- --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Asset Allocation Series:
ALLIANCE CONSERVATIVE INVESTORS FUND
- ------------------------------------
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 8,324 8,745
Momentum Plus Contracts 135 BP.............................. 40,973 45,283
Momentum Plus Contracts 100 BP.............................. 1,546 1,777
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 213,369 114,868
EQUI-VEST Contracts Series 500 145 BP....................... 49 --
EQUI-VEST Contracts Series 600 120 BP....................... 1 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 7,000 4,397
Momentum Plus Contracts 135 BP.............................. 45,023 52,105
Momentum Plus Contracts 100 BP.............................. 2,688 1,102
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 105,278 128,454
EQUI-VEST Contracts Series 500 145 BP....................... -- --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-28
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Asset Allocation Series (Continued):
EQ/PUTNAM BALANCED FUND
- -----------------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 442 --
Momentum Plus Contracts 135 BP.............................. 1,376 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 290,577 175,775
EQUI-VEST Contracts Series 500 145 BP....................... 174 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... -- --
Momentum Plus Contracts 135 BP.............................. 116 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 124,887 66,296
EQUI-VEST Contracts Series 500 145 BP....................... -- --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
ALLIANCE GROWTH INVESTORS FUND
- ------------------------------
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 50,095 70,069
Momentum Plus Contracts 135 BP.............................. 148,895 206,206
Momentum Plus Contracts 100 BP.............................. 4,888 3,369
Momentum Plus Contracts 90 BP............................... 685 2,935
EQUI-VEST Contracts Series 300 & 400 134 BP................. 882,636 1,019,421
EQUI-VEST Contracts Series 500 145 BP....................... 744 --
EQUI-VEST Contracts Series 600 120 BP....................... 1 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 38,654 33,111
Momentum Plus Contracts 135 BP.............................. 192,540 138,201
Momentum Plus Contracts 100 BP.............................. 3,629 3,482
Momentum Plus Contracts 90 BP............................... 118 1,446
EQUI-VEST Contracts Series 300 & 400 134 BP................. 624,987 640,400
EQUI-VEST Contracts Series 500 145 BP....................... -- --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-29
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. Contributions, Payments, Transfers and Charges (Concluded):
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31,
----------------------------------------------
1998 1997
----------------- ---------------
Asset Allocation Series (Concluded):
ALLIANCE BALANCED FUND
- ----------------------
<S> <C> <C> <C>
Issued -- EQUI-VEST Contracts......................................... 4,212,025 3,643,409
Momentum Contracts.......................................... 226,716 272,369
Momentum Plus Contracts 135 BP.............................. 155,854 168,722
Momentum Plus Contracts 100 BP.............................. 4,058 15,895
Momentum Plus Contracts 90 BP............................... 487 2,030
EQUI-VEST Contracts Series 300 & 400 135 BP................. 357,343 263,741
EQUI-VEST Contracts Series 500 145 BP....................... 493 --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
Redeemed -- EQUI-VEST Contracts......................................... 5,887,319 5,926,775
Momentum Contracts.......................................... 292,550 277,292
Momentum Plus Contracts 135 BP.............................. 220,244 131,565
Momentum Plus Contracts 100 BP.............................. 3,530 52,839
Momentum Plus Contracts 90 BP............................... 61 1,298
EQUI-VEST Contracts Series 300 & 400 135 BP................. 260,878 156,561
EQUI-VEST Contracts Series 500 145 BP....................... -- --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
MERRILL LYNCH WORLD STRATEGY FUND
- ---------------------------------
Issued -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... 112 --
Momentum Plus Contracts 135 BP.............................. 841 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 85,123 98,231
EQUI-VEST Contracts Series 500 145 BP....................... 25 --
EQUI-VEST Contracts Series 600 120 BP....................... 1 --
Redeemed -- EQUI-VEST Contracts......................................... -- --
Momentum Contracts.......................................... -- --
Momentum Plus Contracts 135 BP.............................. 50 --
Momentum Plus Contracts 100 BP.............................. -- --
Momentum Plus Contracts 90 BP............................... -- --
EQUI-VEST Contracts Series 300 & 400 134 BP................. 53,481 45,952
EQUI-VEST Contracts Series 500 145 BP....................... -- --
EQUI-VEST Contracts Series 600 120 BP....................... -- --
</TABLE>
FSA-30
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
5. Net Assets
Net assets consist of net assets attributable to: (i) Contracts in the
accumulation period, which are represented by Contract accumulation units
outstanding multiplied by net 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>
FIXED INCOME SERIES: EQUITY SERIES:
------------------------------------------------------------ ----------------------------
ALLIANCE
INTER- EQ/PUTNAM
MEDIATE ALLIANCE ALLIANCE T. ROWE GROWTH &
ALLIANCE GOVERNMENT QUALITY HIGH PRICE EQUITY INCOME
MONEY SECURITIES BOND YIELD INCOME VALUE
MARKET FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period ............. 38,523,428 -- -- -- -- --
Net assets attributable
to Old Contracts in
accumulation period ............. 4,312,389 -- -- -- -- --
Net assets attributable
to EQUIPLAN
Contracts in
accumulation period ............. -- 2,616,986 -- -- -- --
Net assets attributable
to Momentum
Contracts in
accumulation period ............. 11,218,510 1,437,192 1,964,317 5,501,246 149,136 65,510
Net assets attributable
to Momentum Plus
Contracts 135 BP in
accumulation period ............. 38,847,043 9,240,280 6,425,658 16,040,479 276,389 175,260
Net assets attributable
to Momentum Plus
Contracts 100 BP in
accumulation period ............. 1,159,113 427,602 179,813 761,000 -- --
Net assets attributable
to Momentum Plus
Contracts 90 BP in
accumulation period ............. -- -- -- -- -- --
Net assets attributable
to EQUI-VEST Series 300
& 400 Contracts in
accumulation period ............. 31,535,332 39,758,609 72,429,089 175,147,544 139,347,246 74,544,834
Net assets attributable
to EQUI-VEST Series 500
Contracts 145 BP in
accumulation period ............. 39,859 3,410 13,160 33,807 42,218 40,895
Net assets attributable
to EQUI-VEST Series 600
Contracts 120 BP in
accumulation period ............. -- -- -- 89 101 101
Net assets attributable
to actuarial reserves,
financial reserves, and
other contract
liabilities
attributable to
Contracts in payout ............. 271,442 17,915 454,340 699,291 -- --
------------ ----------- ----------- ------------ ------------ -----------
$125,907,116 $53,501,994 $81,466,377 $198,183,456 $139,815,090 $74,826,600
============ =========== =========== ============ ============ ===========
</TABLE>
FSA-31
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
5. Net Assets (Continued):
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
---------------------------------------------------------------------------------------------------
MERRILL
ALLIANCE ALLIANCE LYNCH BASIC
GROWTH & EQUITY VALUE ALLIANCE MFS ALLIANCE
INCOME INDEX EQUITY COMMON STOCK RESEARCH GLOBAL
FUND FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period ....... -- -- -- 5,578,588,050 -- --
Net assets attributable
to Old Contracts in
accumulation period ....... -- -- -- 107,448,483 -- --
Net assets attributable
to EQUIPLAN
Contracts in
accumulation period ....... -- -- -- 30,994,430 -- --
Net assets attributable
to Momentum
Contracts in
accumulation period ....... 20,534,526 36,675,445 393,479 191,376,071 536,562 28,455,218
Net assets attributable
to Momentum Plus
Contracts 135 BP in
accumulation period ....... 44,797,660 76,744,192 191,344 299,298,111 264,368 75,882,027
Net assets attributable
to Momentum Plus
Contracts 100 BP in
accumulation period ....... 1,128,819 2,312,294 -- 8,221,702 -- 1,769,643
Net assets attributable
to Momentum Plus
Contracts 90 BP in
accumulation period ....... 297,636 800,229 -- 1,267,407 -- 471,680
Net assets attributable
to EQUI-VEST Series 300
& 400 Contracts in
accumulation period ....... 529,235,127 1,032,108,886 56,734,346 1,468,792,789 101,361,254 619,628,198
Net assets attributable
to EQUI-VEST Series 500
Contracts 145 BP in
accumulation period ....... 143,000 233,384 33,448 486,472 87,507 48,890
Net assets attributable
to EQUI-VEST Series 600
Contracts 120 BP in
accumulation period ....... -- 311 98 206 -- 98
Net assets attributable
to actuarial reserves,
financial reserves and
other contract
liabilities
attributable to
Contracts in payout ....... 2,885,763 3,413,426 -- 39,299,681 -- 544,414
------------ -------------- ----------- -------------- ------------ ------------
$599,022,531 $1,152,288,167 $57,352,715 $7,725,773,402 $102,249,691 $726,800,168
============ ============== =========== ============== ============ ============
</TABLE>
FSA-32
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
5. Net Assets (Continued):
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
---------------------------------------------------------------------------------------------------
T. ROWE MORGAN WARBURG
PRICE STANLEY PINCUS ALLIANCE
ALLIANCE INTER- EMERGING ALLIANCE SMALL SMALL
INTER- NATIONAL MARKETS AGGRESSIVE COMPANY CAP
NATIONAL STOCK EQUITY STOCK VALUE GROWTH
FUND FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period ....... -- -- -- 2,304,985,451 -- --
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 ....... 4,377,889 55,292 25,903 125,948,516 38,050 3,237,317
Net assets attributable
to Momentum Plus
Contracts 135 BP in
accumulation period ....... 10,184,498 261,030 95,457 186,727,114 128,276 4,808,507
Net assets attributable
to Momentum Plus
Contracts 100 BP in
accumulation period ....... 450,353 -- -- 5,101,533 -- 36,371
Net assets attributable
to Momentum Plus
Contracts 90 BP in
accumulation period ....... 114,042 -- -- 911,462 -- 158,152
Net assets attributable
to EQUI-VEST Series 300
& 400 Contracts in
accumulation period ....... 114,319,069 73,451,923 12,381,723 540,090,983 90,009,744 130,505,375
Net assets attributable
to EQUI-VEST Series 500
Contracts 145 BP in
accumulation period ....... 13,485 23,040 6,756 123,823 26,572 52,506
Net assets attributable
to EQUI-VEST Series 600
Contracts 120 BP in
accumulation period ....... -- -- 81 -- 166 87
Net assets attributable
to actuarial reserves,
financial reserves and
other contract
liabilities
attributable to
Contracts in payout ....... 562,451 -- -- 4,609,704 -- 108,367
------------ ----------- ----------- -------------- ----------- ------------
$130,021,787 $73,791,285 $12,509,920 $3,168,498,586 $90,202,808 $138,906,682
============ =========== =========== ============== =========== ============
</TABLE>
FSA-33
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
5. Net Assets (Concluded):
<TABLE>
<CAPTION>
EQUITY SERIES (CONCLUDED): ASSET ALLOCATION SERIES:
------------------------------- ------------------------------------------------------------------
MFS ALLIANCE MERRILL
EMERGING CONSER- ALLIANCE LYNCH
GROWTH VATIVE EQ/PUTNAM GROWTH ALLIANCE WORLD
COMPANIES INVESTORS BALANCED INVESTORS BALANCED STRATEGY
FUND FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period ....... -- -- -- -- 1,097,942,924 --
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 ....... 825,008 3,489,106 55,321 28,639,790 44,449,206 12,249
Net assets attributable
to Momentum Plus
Contracts 135 BP in
accumulation period ....... 763,267 17,445,149 128,104 92,985,008 59,417,722 76,157
Net assets attributable
to Momentum Plus
Contracts 100 BP in
accumulation period ....... -- 576,228 -- 2,373,243 1,662,704 --
Net assets attributable
to Momentum Plus
Contracts 90 BP in
accumulation period ....... -- -- -- 307,598 166,289 --
Net assets attributable
to EQUI-VEST Series 300
& 400 Contracts in
accumulation period ....... 175,456,981 97,305,713 34,439,759 715,666,898 118,465,723 9,178,694
Net assets attributable
to EQUI-VEST Series 500
Contracts 145 BP in
accumulation period ....... 157,390 5,034 17,482 75,836 50,581 2,372
Net assets attributable
to EQUI-VEST Series 600
Contracts 120 BP in
accumulation period ....... 104 103 -- 102 -- 95
Net assets attributable
to actuarial reserves,
financial reserves and
other contract
liabilities
attributable to
Contracts in payout ....... -- 1,042,019 -- 2,169,556 580,524 --
------------ ------------ ----------- ------------ -------------- ----------
$177,202,750 $119,863,352 $34,640,666 $842,218,031 $1,322,735,673 $9,269,567
============ ============ =========== ============ ============== ==========
</TABLE>
FSA-34
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values
Shown below is accumulation unit value information for units outstanding.
<TABLE>
<CAPTION>
ALLIANCE MONEY MARKET FUND -- OLD CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $35.12 $33.52 $32.00 $30.44 $29.43 $28.75 $27.92 $26.47 $24.59 $22.66
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Unit value, end of period....... $36.76 $35.12 $33.52 $32.00 $30.44 $29.43 $28.75 $27.92 $26.47 $24.59
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Number of units outstanding,
end of period (000's)........ 117 119 129 140 147 168 204 246 289 310
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
<CAPTION>
ALLIANCE MONEY MARKET FUND -- EQUI-VEST SERIES 100 AND 200/MOMENTUM** CONTRACTS
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $29.41 $28.28 $27.22 $26.08 $25.41 $25.01 $24.48 $23.38 $21.89 $20.32
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Unit value, end of period....... $30.55 $29.41 $28.28 $27.22 $26.08 $25.41 $25.01 $24.48 $23.38 $21.89
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Number of EQUI-VEST units
outstanding, end of period
(000's)...................... 1,261 973 1,013 1,021 1,000 1,065 1,201 1,325 1,307 1,045
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Number of Momentum units
outstanding, end of
period (000's)............... 367 308 240 188 166 56
======= ======= ======= ======= ======= =======
<CAPTION>
ALLIANCE MONEY MARKET FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
------------------------------------------------- SEPTEMBER 9, 1993*
1998 1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- --------- -------- -------- -------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $116.21 $111.75 $107.55 $103.10 $100.47 $100.00
======== ======== ======== ======== ======== ========
Unit value, end of period........................ $120.76 $116.21 $111.75 $107.55 $103.10 $100.47
======== ======== ======== ======== ======== ========
Number of units outstanding, end of period (000's) 322 325 307 299 474 62
======== ======== ======== ======== ======== ========
<CAPTION>
ALLIANCE MONEY MARKET FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $110.26 $105.65 $100.00
======== ======== ========
Unit value, end of period........................ $114.98 $110.26 $105.65
======== ======== ========
Number of units outstanding, end of period (000's) 10 13 13
======== ======== ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-35
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE MONEY MARKET FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
--------------------------------------- JANUARY 3, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $115.66 $111.21 $107.04 $102.61 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $120.19 $115.66 $111.21 $107.04 $102.61
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 262 146 165 81 63
======== ========= ========= ======== ========
</TABLE>
ALLIANCE MONEY MARKET FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.68
=========
Number of units outstanding, end of period (000's) --
=========
ALLIANCE MONEY MARKET FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.68
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND -- EQUIPLAN CONTRACTS
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
-------- -------- ------- -------- -------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $54.83 $51.34 $49.69 $44.04 $46.25 $42.04 $40.00 $35.17 $33.12 $28.89
======== ======= ======== ======== ======== ======== ======== ======== ======== ========
Unit value, end of period....... $58.81 $54.83 $51.34 $49.69 $44.04 $46.25 $42.04 $40.00 $35.17 $33.12
======== ======= ======== ======== ======== ======== ======== ======== ======== ========
Number of units outstanding,
end of period (000's)........ 45 50 55 50 54 58 66 74 82 91
======== ======= ======== ======== ======== ======== ======== ======== ======== ========
<CAPTION>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND -- MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $118.98 $112.40 $109.80 $ 98.19 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $126.48 $118.98 $112.40 $109.80 $ 98.19
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 11 10 10 7 1
======== ========= ========= ======== ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
FSA-36
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
------------------------------------------------- SEPTEMBER 9, 1993*
1998 1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- --------- -------- -------- -------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $114.78 $108.45 $105.94 $ 94.76 $100.44 $100.00
======== ========= ========= ======== ======== ========
Unit value, end of period........................ $122.00 $114.78 $108.45 $105.94 $ 94.76 $100.44
======== ========= ========= ======== ======== ========
Number of units outstanding, end of period (000's) 76 77 81 88 64 1
======== ========= ========= ======== ======== ========
<CAPTION>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $112.32 $105.75 $100.00
======== ======== =========
Unit value, end of period........................ $119.81 $112.32 $105.75
======== ======== =========
Number of units outstanding, end of period (000's) 4 2 2
======== ======== =========
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND -- EQUI-VEST
SERIES 300 AND 400 CONTRACTS: 134 B.P.
YEARS ENDED DECEMBER 31,
--------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $118.98 $112.40 $109.80 $ 98.19 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $126.48 $118.98 $112.40 $109.80 $ 98.19
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 314 202 146 89 32
======== ========= ========= ======== ========
</TABLE>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND --
EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $103.32
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-37
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND --
EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $103.32
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
ALLIANCE QUALITY BOND FUND -- MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $121.30 $112.65 $108.38 $ 93.87 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $130.07 $121.30 $112.65 $108.38 $ 93.87
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 15 10 7 4 1
======== ========= ========= ======== ========
<CAPTION>
ALLIANCE QUALITY BOND FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
--------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $127.99 $118.87 $114.38 $ 99.07 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $137.23 $127.99 $118.87 $114.38 $ 99.07
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 47 37 28 17 3
======== ========= ========= ======== ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
FSA-38
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE QUALITY BOND FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $117.60 $108.84 $100.00
======== ======== =========
Unit value, end of period........................ $126.54 $117.60 $108.84
======== ======== =========
Number of units outstanding, end of period (000's) 1 1 1
======== ======== =========
<CAPTION>
ALLIANCE QUALITY BOND FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 134 B.P.
YEARS ENDED DECEMBER 31,
--------------------------------------- JANUARY 3, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $121.30 $112.65 $108.38 $ 93.87 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $130.07 $121.30 $112.65 $108.38 $ 93.87
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 557 283 196 135 53
======== ========= ========= ======== ========
</TABLE>
ALLIANCE QUALITY BOND FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $103.62
=========
Number of units outstanding, end of period (000's) --
=========
ALLIANCE QUALITY BOND FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $103.62
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
ALLIANCE HIGH YIELD FUND -- MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------------- JUNE 1, 1994* TO
1998 1997 1996 1995 DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $160.74 $137.53 $113.44 $ 95.88 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $150.42 $160.74 $137.53 $113.44 $ 95.88
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 37 29 18 7 1
======== ========= ========= ======== ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
FSA-39
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE HIGH YIELD FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
------------------------------------------------- SEPTEMBER 9, 1993*
1998 1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- --------- -------- -------- -------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $171.56 $146.80 $121.10 $102.37 $106.74 $100.00
======== ========= ========= ======== ======== ========
Unit value, end of period........................ $160.53 $171.56 $146.80 $121.10 $102.37 $106.74
======== ========= ========= ======== ======== ========
Number of units outstanding, end of period (000's) 100 110 94 70 38 1
======== ========= ========= ======== ======== ========
<CAPTION>
ALLIANCE HIGH YIELD FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
------------------- SEPTEMBER 1, 1996
1998 1997 TO DECEMBER 31, 1996*
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $149.49 $127.46 $100.00
======== ======== =========
Unit value, end of period........................ $140.38 $149.49 $127.46
======== ======== =========
Number of units outstanding, end of period (000's) 5 5 5
======== ======== =========
<CAPTION>
ALLIANCE HIGH YIELD FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 134 B.P.
YEARS ENDED DECEMBER 31,
--------------------------------------- JANUARY 3, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $160.74 $137.53 $113.44 $ 95.88 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $150.42 $160.74 $137.53 $113.44 $ 95.88
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 1,164 831 444 209 99
======== ========= ========= ======== ========
</TABLE>
ALLIANCE HIGH YIELD FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 89.20
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-40
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
ALLIANCE HIGH YIELD FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 89.20
=========
Number of units outstanding, end of period (000's) --
=========
T. ROWE PRICE EQUITY INCOME FUND -- MOMENTUM CONTRACTS
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $130.25
=========
Number of units outstanding, end of period (000's) 1
=========
T. ROWE PRICE EQUITY INCOME FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.39
=========
Number of units outstanding, end of period (000's) 3
=========
T. ROWE PRICE EQUITY INCOME FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.56
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-41
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
T. ROWE PRICE EQUITY INCOME FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.61
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
T. ROWE PRICE EQUITY INCOME FUND -- EQUI-VEST SERIES 100 THROUGH 400 CONTRACTS
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- ---------------------
<S> <C> <C>
Unit value, beginning of period.................. $121.04 $100.00
========= =========
Unit value, end of period........................ $130.25 $121.04
========= =========
Number of units outstanding, end of period (000's) 1,070 475
========= =========
</TABLE>
T. ROWE PRICE EQUITY INCOME FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.00
=========
Number of units outstanding, end of period (000's) --
=========
T. ROWE PRICE EQUITY INCOME FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.12
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-42
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
EQ/PUTNAM GROWTH & INCOME VALUE FUND -- MOMENTUM CONTRACTS
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $128.20
=========
Number of units outstanding, end of period (000's) 1
=========
EQ/PUTNAM GROWTH & INCOME VALUE FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.60
=========
Number of units outstanding, end of period (000's) 2
=========
EQ/PUTNAM GROWTH & INCOME VALUE FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.77
=========
Number of units outstanding, end of period (000's) --
=========
EQ/PUTNAM GROWTH & INCOME VALUE FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.82
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-43
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
EQ/PUTNAM GROWTH & INCOME VALUE FUND -- EQUI-VEST SERIES 100 THROUGH 400 CONTRACTS
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- -----------------------
<S> <C> <C>
Unit value, beginning of period.................. $115.17 $100.00
========= ========
Unit value, end of period........................ $128.20 $115.17
========= ========
Number of units outstanding, end of period (000's) 581 250
========= ========
</TABLE>
EQ/PUTNAM GROWTH & INCOME VALUE FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $100.48
=========
Number of units outstanding, end of period (000's) --
=========
EQ/PUTNAM GROWTH & INCOME VALUE FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $100.60
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
ALLIANCE GROWTH & INCOME FUND -- MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $179.30 $143.37 $121.02 $ 98.86 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $213.81 $179.30 $143.37 $121.02 $ 98.86
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 96 69 41 17 4
======== ========= ========= ======== ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
FSA-44
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE GROWTH & INCOME FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
--------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $179.60 $143.63 $121.25 $ 99.06 $100.00
======== ======== ========= ======== ========
Unit value, end of period........................ $214.14 $179.60 $143.63 $121.25 $ 99.06
======== ======== ========= ======== ========
Number of units outstanding, end of period (000's) 209 183 121 67 9
======== ======== ========= ======== ========
<CAPTION>
ALLIANCE GROWTH & INCOME FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $155.11 $123.61 $100.00
======== ======== =========
Unit value, end of period........................ $185.60 $155.11 $123.61
======== ======== =========
Number of units outstanding, end of period (000's) 6 3 3
======== ======== =========
</TABLE>
ALLIANCE GROWTH & INCOME FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEARS ENDED
DECEMBER 31,
-------------------
1998 1997
-------- --------
Unit value, beginning of period.................. $145.48 $115.81
======== ========
Unit value, end of period........................ $174.26 $145.48
======== ========
Number of units outstanding, end of period (000's) 2 1
======== ========
<TABLE>
<CAPTION>
ALLIANCE GROWTH & INCOME FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 134 B.P.
YEARS ENDED DECEMBER 31,
--------------------------------------- JANUARY 3, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $179.30 $143.37 $121.02 $ 98.86 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $213.81 $179.30 $143.37 $121.02 $ 98.86
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 2,475 1,800 975 498 210
======== ========= ========= ======== ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
FSA-45
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
ALLIANCE GROWTH & INCOME FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $102.73
=========
Number of units outstanding, end of period (000's) 1
=========
ALLIANCE GROWTH & INCOME FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $102.73
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
ALLIANCE EQUITY INDEX FUND -- MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $214.66 $164.12 $135.94 $100.95 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $271.24 $214.66 $164.12 $135.94 $100.95
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 135 94 51 12 1
======== ========= ========= ======== ========
<CAPTION>
ALLIANCE EQUITY INDEX FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
--------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $214.58 $164.08 $135.92 $100.94 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $271.11 $214.58 $164.08 $135.92 $100.94
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 283 231 128 44 3
======== ========= ========= ======== ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
FSA-46
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE EQUITY INDEX FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $170.23 $139.70 $100.00
======== ======== =========
Unit value, end of period........................ $215.84 $170.23 $139.70
======== ======== =========
Number of units outstanding, end of period (000's) 11 5 4
======== ======== =========
</TABLE>
ALLIANCE EQUITY INDEX FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEARS ENDED
DECEMBER 31,
-------------------
1998 1997
-------- --------
Unit value, beginning of period.................. $150.05 $114.21
======== ========
Unit value, end of period........................ $190.44 $150.05
======== ========
Number of units outstanding, end of period (000's) 4 3
======== ========
<TABLE>
<CAPTION>
ALLIANCE EQUITY INDEX FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 134 B.P.
YEARS ENDED DECEMBER 31,
--------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $214.66 $164.12 $135.94 $100.95 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $271.24 $214.66 $164.12 $135.94 $100.95
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 3,805 2,686 1,486 592 47
======== ========= ========= ======== ========
</TABLE>
ALLIANCE EQUITY INDEX FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $103.68
=========
Number of units outstanding, end of period (000's) 2
=========
- ------------------
*Date on which units were made available for sale.
FSA-47
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
ALLIANCE EQUITY INDEX FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $103.69
=========
Number of units outstanding, end of period (000's) --
=========
MERRILL LYNCH BASIC VALUE EQUITY FUND -- MOMENTUM CONTRACTS
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $127.67
=========
Number of units outstanding, end of period (000's) 3
=========
MERRILL LYNCH BASIC VALUE EQUITY FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 98.58
=========
Number of units outstanding, end of period (000's) 2
=========
MERRILL LYNCH BASIC VALUE EQUITY FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 98.75
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-48
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
MERRILL LYNCH BASIC VALUE EQUITY FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 98.80
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
MERRILL LYNCH BASIC VALUE EQUITY FUND -- EQUI-VEST SERIES 100 THROUGH 400 CONTRACTS
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- -----------------------
<S> <C> <C>
Unit value, beginning of period.................. $115.97 $100.00
========= ========
Unit value, end of period........................ $127.67 $115.97
========= ========
Number of units outstanding, end of period (000's) 444 145
========= ========
</TABLE>
MERRILL LYNCH BASIC VALUE EQUITY FUND --
EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 97.80
=========
Number of units outstanding, end of period (000's) --
=========
MERRILL LYNCH BASIC VALUE EQUITY FUND --
EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 97.91
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-49
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE COMMON STOCK FUND -- OLD CONTRACTS
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
-------- -------- --------- -------- -------- --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $316.64 $246.57 $199.66 $151.67 $155.96 $125.72 $122.56 $ 89.56 $97.97 $78.37
======== ======== ========= ======== ======== ========= ======== ======== ======== ========
Unit value, end of period....... $407.19 $316.64 $246.57 $199.66 $151.67 $155.96 $125.72 $122.56 $89.56 $97.97
======== ======== ========= ======== ======== ========= ======== ======== ======== ========
Number of units outstanding,
end of period (000's)........ 264 307 345 387 438 467 525 598 694 780
======== ======== ========= ======== ======== ========= ======== ======== ======== ========
<CAPTION>
ALLIANCE COMMON STOCK FUND -- EQUI-VEST SERIES 100 AND 200/MOMENTUM** CONTRACTS
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
-------- -------- --------- -------- -------- --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $253.68 $199.05 $162.42 $124.32 $128.81 $104.63 $102.76 $ 75.67 $83.40 $67.22
======== ======== ========= ======== ======== ========= ======== ======== ======== ========
Unit value, end of period....... $323.75 $253.68 $199.05 $162.42 $124.32 $128.81 $104.63 $102.76 $75.67 $83.40
======== ======== ========= ======== ======== ========= ======== ======== ======== ========
Number of EQUI-VEST units
outstanding, end of
period (000's)............... 17,231 17,386 16,933 16,292 15,749 13,917 11,841 10,292 9,670 8,645
======== ======== ========= ======== ======== ========= ======== ======== ======== ========
Number of Momentum units
outstanding, end of
period (000's)............... 591 519 403 270 120
======== ======== ========= ======== ========
<CAPTION>
ALLIANCE COMMON STOCK FUND -- EQUIPLAN CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
-------- -------- --------- -------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $342.99 $267.08 $216.27 $164.29 $168.93 $136.10 $132.67 $ 96.95 $106.05 $ 84.83
======== ======== ========= ======== ======== ======== ========= ======== ======== =========
Unit value, end of period....... $441.07 $342.99 $267.08 $216.27 $164.29 $168.93 $136.10 $132.67 $ 96.95 $106.05
======== ======== ========= ======== ======== ======== ========= ======== ======== =========
Number of units outstanding,
end of period (000's)........ 70 85 96 108 119 124 135 144 157 177
======== ======== ========= ======== ======== ======== ========= ======== ======== =========
</TABLE>
- ------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-50
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE COMMON STOCK FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
------------------------------------------------- SEPTEMBER 9, 1993*
1998 1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- --------- -------- -------- -------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $207.00 $162.39 $132.47 $101.38 $105.01 $100.00
======== ========= ========= ======== ======== ========
Unit value, end of period........................ $264.22 $207.00 $162.39 $132.47 $101.38 $105.01
======== ========= ========= ======== ======== ========
Number of units outstanding, end of period (000's) 1,133 1,192 1,039 706 330 12
======== ========= ========= ======== ======== ========
<CAPTION>
ALLIANCE COMMON STOCK FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $161.04 $125.89 $100.00
======== ======== =========
Unit value, end of period........................ $206.28 $161.04 $125.89
======== ======== =========
Number of units outstanding, end of period (000's) 40 37 140
======== ======== =========
</TABLE>
ALLIANCE COMMON STOCK FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEARS ENDED
DECEMBER 31,
-------------------
1998 1997
-------- --------
Unit value, beginning of period.................. $148.44 $115.92
======== ========
Unit value, end of period........................ $190.33 $148.44
======== ========
Number of units outstanding, end of period (000's) 7 5
======== ========
<TABLE>
<CAPTION>
ALLIANCE COMMON STOCK FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
--------------------------------------- JANUARY 3, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $198.12 $155.42 $126.78 $ 97.03 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $252.88 $198.12 $155.42 $126.78 $ 97.03
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 5,808 4,765 3,457 1,989 948
======== ========= ========= ======== ========
</TABLE>
ALLIANCE COMMON STOCK FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $102.87
=========
Number of units outstanding, end of period (000's) 5
=========
- ------------------
*Date on which units were made available for sale.
FSA-51
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
ALLIANCE COMMON STOCK FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $102.87
=========
Number of units outstanding, end of period (000's) --
=========
MFS RESEARCH FUND -- MOMENTUM CONTRACTS
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $140.83
=========
Number of units outstanding, end of period (000's) 4
=========
MFS RESEARCH FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $100.75
=========
Number of units outstanding, end of period (000's) 3
=========
MFS RESEARCH FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $100.92
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-52
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
MFS RESEARCH FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $100.97
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
MFS RESEARCH FUND -- EQUI-VEST SERIES 100 THROUGH 400 CONTRACTS
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- -----------------------
<S> <C> <C>
Unit value, beginning of period.................. $115.01 $100.00
========= ========
Unit value, end of period........................ $140.83 $115.01
========= ========
Number of units outstanding, end of period (000's) 720 236
========= ========
</TABLE>
MFS RESEARCH FUND -- EQUI-VEST SERIES 500 CONTRACTS: 134 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 98.99
=========
Number of units outstanding, end of period (000's) 1
=========
MFS RESEARCH FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 99.10
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-53
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE GLOBAL FUND -- MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
--------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $151.87 $138.00 $122.06 $104.12 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $182.50 $151.87 $138.00 $122.06 $104.12
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 156 147 116 62 16
======== ========= ========= ======== ========
<CAPTION>
ALLIANCE GLOBAL FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
------------------------------------------------- SEPTEMBER 9, 1993*
1998 1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- --------- -------- -------- -------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $154.12 $140.51 $124.30 $106.04 $102.14 $100.00
======== ========= ========= ======== ======== ========
Unit value, end of period........................ $185.78 $154.12 $140.51 $124.30 $106.04 $102.14
======== ========= ========= ======== ======== ========
Number of units outstanding, end of period (000's) 408 464 459 391 223 8
======== ========= ========= ======== ======== ========
<CAPTION>
ALLIANCE GLOBAL FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $128.51 $116.37 $100.00
======== ======== =========
Unit value, end of period........................ $154.96 $128.51 $116.37
======== ======== =========
Number of units outstanding, end of period (000's) 11 12 13
======== ======== =========
</TABLE>
ALLIANCE GLOBAL FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEARS ENDED
DECEMBER 31,
-------------------
1998 1997
-------- --------
Unit value, beginning of period.................. $122.12 $110.47
======== ========
Unit value, end of period........................ $147.40 $122.12
======== ========
Number of units outstanding, end of period (000's) 3 2
======== ========
<TABLE>
<CAPTION>
ALLIANCE GLOBAL FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 134 B.P.
YEARS ENDED DECEMBER 31,
--------------------------------------- JANUARY 3, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $151.87 $138.00 $122.06 $104.12 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $182.50 $151.87 $138.00 $122.06 $104.12
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 3,395 3,369 2,995 2,121 1,305
======== ========= ========= ======== ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
FSA-54
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
ALLIANCE GLOBAL FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 98.37
=========
Number of units outstanding, end of period (000's) --
=========
ALLIANCE GLOBAL FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 98.37
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
ALLIANCE INTERNATIONAL FUND -- MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
----------------------------- SEPTEMBER 1, 1994*
1998 1997 1996 TO DECEMBER 31, 1995
-------- --------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $107.92 $112.82 $104.15 $100.00
======== ========= ========= ========
Unit value, end of period........................ $117.72 $107.92 $112.82 $104.15
======== ========= ========= ========
Number of units outstanding, end of period (000's) 37 32 19 0
======== ========= ========= ========
<CAPTION>
ALLIANCE INTERNATIONAL FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
----------------------------- SEPTEMBER 1, 1994*
1998 1997 1996 TO DECEMBER 31, 1995
-------- --------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $107.89 $112.81 $104.15 $100.00
======== ========= ========= ========
Unit value, end of period........................ $117.68 $107.89 $112.81 $104.15
======== ========= ========= ========
Number of units outstanding, end of period (000's) 87 85 54 3
======== ========= ========= ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
FSA-55
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE INTERNATIONAL FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $108.42 $112.96 $100.00
======== ======== =========
Unit value, end of period........................ $118.67 $108.42 $112.96
======== ======== =========
Number of units outstanding, end of period (000's) 4 3 21
======== ======== =========
</TABLE>
ALLIANCE INTERNATIONAL FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEARS ENDED
DECEMBER 31,
-------------------
1998 1997
-------- --------
Unit value, beginning of period.................. $104.70 $108.98
======== ========
Unit value, end of period........................ $114.73 $104.70
======== ========
Number of units outstanding, end of period (000's) 1 788
======== ========
<TABLE>
<CAPTION>
ALLIANCE INTERNATIONAL FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 134 B.P.
YEARS ENDED DECEMBER 31,
----------------------------- SEPTEMBER 1, 1994*
1998 1997 1996 TO DECEMBER 31, 1995
-------- --------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $107.92 $112.83 $104.15 $100.00
======== ========= ========= ========
Unit value, end of period........................ $117.72 $107.92 $112.83 $104.15
======== ========= ========= ========
Number of units outstanding, end of period (000's) 971 968 763 141
======== ========= ========= ========
</TABLE>
ALLIANCE INTERNATIONAL FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 93.00
=========
Number of units outstanding, end of period (000's) --
=========
ALLIANCE INTERNATIONAL FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 93.00
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-56
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
T. ROWE PRICE INTERNATIONAL STOCK FUND -- MOMENTUM CONTRACTS
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $109.49
=========
Number of units outstanding, end of period (000's) 1
=========
T. ROWE PRICE INTERNATIONAL STOCK FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 98.95
=========
Number of units outstanding, end of period (000's) 3
=========
T. ROWE PRICE INTERNATIONAL STOCK FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 99.11
=========
Number of units outstanding, end of period (000's) --
=========
T. ROWE PRICE INTERNATIONAL STOCK FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 99.16
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-57
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
T. ROWE PRICE INTERNATIONAL STOCK FUND -- EQUI-VEST SERIES 100 THROUGH 400 CONTRACTS
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- -----------------------
<S> <C> <C>
Unit value, beginning of period.................. $ 97.61 $100.00
========= ========
Unit value, end of period........................ $109.49 $ 97.61
========= ========
Number of units outstanding, end of period (000's) 671 387
========= ========
</TABLE>
T. ROWE PRICE INTERNATIONAL STOCK FUND --
EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 94.04
=========
Number of units outstanding, end of period (000's) --
=========
T. ROWE PRICE INTERNATIONAL STOCK FUND --
EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 94.15
=========
Number of units outstanding, end of period (000's) --
=========
MORGAN STANLEY EMERGING MARKETS EQUITY FUND -- MOMENTUM CONTRACTS
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 57.18
=========
Number of units outstanding, end of period (000's) --
=========
MORGAN STANLEY EMERGING MARKETS EQUITY FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 86.23
=========
Number of units outstanding, end of period (000's) 1
=========
- ------------------
*Date on which units were made available for sale.
FSA-58
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
MORGAN STANLEY EMERGING MARKETS EQUITY FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 86.38
=========
Number of units outstanding, end of period (000's) --
=========
MORGAN STANLEY EMERGING MARKETS EQUITY FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 86.42
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
MORGAN STANLEY EMERGING MARKETS EQUITY FUND -- EQUI-VEST SERIES 100 THROUGH 400 CONTRACTS
YEAR ENDED AUGUST 20, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- -----------------------
<S> <C> <C>
Unit value, beginning of period.................. $ 79.41 $100.00
========= ========
Unit value, end of period........................ $ 57.18 $ 79.41
========= ========
Number of units outstanding, end of period (000's) 217 109
========= ========
</TABLE>
MORGAN STANLEY EMERGING MARKETS EQUITY FUND --
EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 81.40
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-59
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
MORGAN STANLEY EMERGING MARKETS EQUITY FUND --
EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 81.49
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
ALLIANCE AGGRESSIVE STOCK FUND -- EQUI-VEST/MOMENTUM** CONTRACTS
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
-------- -------- --------- -------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $90.75 $82.91 $68.73 $52.88 $55.68 $48.30 $50.51 $27.36 $25.86 $18.09
======== ======== ========= ======== ======== ========= ======== ======== ======== =========
Unit value, end of period....... $89.92 $90.75 $82.91 $68.73 $52.88 $55.68 $48.30 $50.51 $27.36 $25.86
======== ======== ========= ======== ======== ========= ======== ======== ======== =========
Number of EQUI-VEST units
outstanding, end of
period (000's)............... 25,634 28,030 27,945 25,821 24,787 21,496 17,986 12,962 9,545 8,134
======== ======== ========= ======== ======== ========= ======== ======== ======== =========
Number of Momentum units
outstanding, end of
period (000's)............... 1,401 1,437 1,281 969 620 258
======== ======== ========= ======== ======== =========
<CAPTION>
ALLIANCE AGGRESSIVE STOCK FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
------------------------------------------------- SEPTEMBER 9, 1993*
1998 1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- --------- -------- -------- -------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $171.96 $157.31 $130.50 $100.49 $105.90 $100.00
======== ========= ========= ======== ======== ========
Unit value, end of period........................ $170.12 $171.96 $157.31 $130.50 $100.49 $105.90
======== ========= ========= ======== ======== ========
Number of units outstanding, end of period (000's) 1,098 1,220 1,070 718 350 12
======== ========= ========= ======== ======== ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-60
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE AGGRESSIVE STOCK FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
-------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $137.72 $125.54 $100.00
======== ======== =========
Unit value, end of period........................ $136.73 $137.72 $125.54
======== ======== =========
Number of units outstanding, end of period (000's) 37 35 109
======== ======== =========
</TABLE>
ALLIANCE AGGRESSIVE STOCK FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEARS ENDED
DECEMBER 31,
-------------------
1998 1997
-------- --------
Unit value, beginning of period.................. $119.41 $108.74
======== ========
Unit value, end of period........................ $118.68 $119.41
======== ========
Number of units outstanding, end of period (000's) 8 7
======== ========
<TABLE>
<CAPTION>
ALLIANCE AGGRESSIVE STOCK FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
-------------------------------------- JANUARY 3, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $163.33 $149.41 $123.95 $ 95.45 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $161.59 $163.33 $149.41 $123.95 $ 95.45
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 3,342 3,226 2,468 1,310 664
======== ========= ========= ======== ========
</TABLE>
ALLIANCE AGGRESSIVE STOCK FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 90.25
=========
Number of units outstanding, end of period (000's) 1
=========
ALLIANCE AGGRESSIVE STOCK FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 90.25
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-61
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
WARBURG PINCUS SMALL COMPANY VALUE FUND -- MOMENTUM CONTRACTS
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $104.82
=========
Number of units outstanding, end of period (000's) --
=========
WARBURG PINCUS SMALL COMPANY VALUE FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 83.08
=========
Number of units outstanding, end of period (000's) 2
=========
WARBURG PINCUS SMALL COMPANY VALUE FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 83.22
=========
Number of units outstanding, end of period (000's) --
=========
WARBURG PINCUS SMALL COMPANY VALUE FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 83.26
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-62
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
WARBURG PINCUS SMALL COMPANY VALUE FUND -- EQUI-VEST SERIES 100 THROUGH 400 CONTRACTS
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- ---------------------------
<S> <C> <C>
Unit value, beginning of period.................. $118.06 $100.00
========= ========
Unit value, end of period........................ $104.82 $118.06
========= ========
Number of units outstanding, end of period (000's) 859 577
========= ========
</TABLE>
WARBURG PINCUS SMALL COMPANY VALUE FUND --
EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 82.78
=========
Number of units outstanding, end of period (000's) --
=========
WARBURG PINCUS SMALL COMPANY VALUE FUND --
EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 82.88
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
ALLIANCE SMALL CAP GROWTH FUND -- MOMENTUM CONTRACTS
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- ---------------------------
<S> <C> <C>
Unit value, beginning of period.................. $125.55 $100.00
========= ========
Unit value, end of period........................ $118.57 $125.55
========= ========
Number of units outstanding, end of period (000's) 27 6
========= ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
FSA-63
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE SMALL CAP GROWTH FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- ---------------------------
<S> <C> <C>
Unit value, beginning of period.................. $125.54 $100.00
========= ========
Unit value, end of period........................ $118.55 $125.54
========= ========
Number of units outstanding, end of period (000's) 41 8
========= ========
</TABLE>
ALLIANCE SMALL CAP GROWTH FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
JULY 13, 1998*
DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $119.25
=========
Number of units outstanding, end of period (000's) --
=========
ALLIANCE SMALL CAP GROWTH FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
JULY 13, 1998*
DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $119.45
=========
Number of units outstanding, end of period (000's) 1
=========
<TABLE>
<CAPTION>
ALLIANCE SMALL CAP GROWTH FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- ---------------------------
<S> <C> <C>
Unit value, beginning of period.................. $125.55 $100.00
========= ========
Unit value, end of period........................ $118.57 $125.55
========= ========
Number of units outstanding, end of period (000's) 1,101 488
========= ========
</TABLE>
ALLIANCE SMALL CAP GROWTH FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 86.93
=========
Number of units outstanding, end of period (000's) 1
=========
- ------------------
*Date on which units were made available for sale.
FSA-64
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
ALLIANCE SMALL CAP GROWTH FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 86.94
=========
Number of units outstanding, end of period (000's) --
=========
MFS EMERGING GROWTH COMPANIES FUND -- MOMENTUM CONTRACTS
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $161.04
=========
Number of units outstanding, end of period (000's) 5
=========
MFS EMERGING GROWTH COMPANIES FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $107.73
=========
Number of units outstanding, end of period (000's) 7
=========
MFS EMERGING GROWTH COMPANIES FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $107.91
=========
Number of units outstanding, end of period (000's) --
=========
MFS EMERGING GROWTH COMPANIES FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $107.96
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-65
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
MFS EMERGING GROWTH COMPANIES FUND -- EQUI-VEST SERIES 100 THROUGH 400 CONTRACTS
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- ---------------------------
<S> <C> <C>
Unit value, beginning of period.................. $121.34 $100.00
========= ========
Unit value, end of period........................ $161.04 $121.34
========= ========
Number of units outstanding, end of period (000's) 1,090 256
========= ========
</TABLE>
MFS EMERGING GROWTH COMPANIES FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $103.41
=========
Number of units outstanding, end of period (000's) 1
=========
MFS EMERGING GROWTH COMPANIES FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $103.53
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
ALLIANCE CONSERVATIVE INVESTORS FUND -- MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
-------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $130.98 $117.25 $112.97 $ 95.10 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $147.17 $130.98 $117.25 $112.97 $ 95.10
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 24 22 18 11 3
======== ========= ========= ======== ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
FSA-66
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE CONSERVATIVE INVESTORS FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
------------------------------------------------- SEPTEMBER 9, 1993*
1998 1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- --------- -------- -------- -------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $128.45 $114.99 $110.81 $ 93.29 $ 98.60 $100.00
======== ========= ========= ======== ======== ========
Unit value, end of period........................ $144.30 $128.45 $114.99 $110.81 $ 93.29 $ 98.60
======== ========= ========= ======== ======== ========
Number of units outstanding, end of period (000's) 121 125 136 129 92 10
======== ========= ========= ======== ======== ========
<CAPTION>
ALLIANCE CONSERVATIVE INVESTORS FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
-------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $122.71 $109.47 $100.00
======== ======== =========
Unit value, end of period........................ $138.35 $122.71 $109.47
======== ======== =========
Number of units outstanding, end of period (000's) 4 5 5
======== ======== =========
<CAPTION>
ALLIANCE CONSERVATIVE INVESTORS FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 134 B.P.
YEARS ENDED DECEMBER 31,
-------------------------------------------------
1998 1997 1996 1995 1994
-------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $130.98 $117.25 $112.97 $ 95.10 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $147.17 $130.98 $117.25 $112.97 $ 95.10
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 661 553 567 491 325
======== ========= ========= ======== ========
</TABLE>
ALLIANCE CONSERVATIVE INVESTORS FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $102.74
=========
Number of units outstanding, end of period (000's) --
=========
ALLIANCE CONSERVATIVE INVESTORS FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $102.74
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-67
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
EQ/PUTNAM BALANCED FUND -- MOMENTUM CONTRACTS
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $125.16
=========
Number of units outstanding, end of period (000's) --
=========
EQ/PUTNAM BALANCED FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.67
=========
Number of units outstanding, end of period (000's) 1
=========
EQ/PUTNAM BALANCED FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.84
=========
Number of units outstanding, end of period (000's) --
=========
EQ/PUTNAM BALANCED FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.89
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-68
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
EQ/PUTNAM BALANCED FUND -- EQUI-VEST SERIES 100 THROUGH 400 CONTRACTS
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- ---------------------------
<S> <C> <C>
Unit value, beginning of period.................. $113.46 $100.00
========= ========
Unit value, end of period........................ $125.16 $113.46
========= ========
Number of units outstanding, end of period (000's) 275 109
========= ========
</TABLE>
EQ/PUTNAM BALANCED FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.05
=========
Number of units outstanding, end of period (000's) --
=========
EQ/PUTNAM BALANCED FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.17
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
ALLIANCE GROWTH INVESTORS FUND -- MOMENTUM CONTRACTS
YEARS ENDED DECEMBER 31,
-------------------------------------- JUNE 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $153.69 $133.40 $120.08 $ 96.31 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $180.63 $153.69 $133.40 $120.08 $ 96.31
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 159 147 110 57 10
======== ========= ========= ======== ========
</TABLE>
- ------------------
*Date on which units were made available for sale.
FSA-69
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
<TABLE>
<CAPTION>
ALLIANCE GROWTH INVESTORS FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
------------------------------------------------- SEPTEMBER 9, 1993*
1998 1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- --------- -------- -------- -------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $155.46 $134.95 $121.49 $ 97.45 $101.99 $100.00
======== ========= ========= ======== ======== ========
Unit value, end of period........................ $182.69 155.46 $134.95 $121.49 $ 97.45 $101.99
======== ========= ========= ======== ======== ========
Number of units outstanding, end of period (000's) 509 553 508 375 188 13
======== ========= ========= ======== ======== ========
<CAPTION>
ALLIANCE GROWTH INVESTORS FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $135.20 $116.95 $100.00
======== ======== =========
Unit value, end of period........................ $159.46 $135.20 $116.95
======== ======== =========
Number of units outstanding, end of period (000's) 15 14 15
======== ======== =========
</TABLE>
ALLIANCE GROWTH INVESTORS FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEARS ENDED
DECEMBER 31,
-------------------
1998 1997
-------- --------
Unit value, beginning of period.................. $126.72 $109.51
======== ========
Unit value, end of period........................ $149.61 $126.72
======== ========
Number of units outstanding, end of period (000's) 2 1
======== ========
<TABLE>
<CAPTION>
ALLIANCE GROWTH INVESTORS FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 134 B.P.
YEARS ENDED DECEMBER 31,
-------------------------------------- JANUARY 1, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $153.69 $133.40 $120.08 $ 96.31 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $180.63 $153.69 $133.40 $120.08 $ 96.31
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 3,962 3,704 3,325 2,113 1,023
======== ========= ========= ======== ========
</TABLE>
ALLIANCE GROWTH INVESTORS FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.93
=========
Number of units outstanding, end of period (000's) 1
=========
- ------------------
*Date on which units were made available for sale.
FSA-70
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
ALLIANCE GROWTH INVESTORS FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $101.93
=========
Number of units outstanding, end of period (000's) --
=========
<TABLE>
<CAPTION>
ALLIANCE BALANCED FUND -- EQUI-VEST/MOMENTUM** CONTRACTS
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
------- -------- -------- -------- -------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $38.66 $34.06 $30.92 $26.18 $28.85 $26.04 $27.17 $19.40 $19.69 $15.80
======= ======== ======== ======== ======== ======== ======= ======= ======== =======
Unit value, end of period....... $45.07 $38.66 $34.06 $30.92 $26.18 $28.85 $26.04 $27.17 $19.40 $19.69
======= ======== ======== ======== ======== ======== ======= ======= ======== =======
Number of EQUI-VEST units
outstanding, end of
period (000's)............... 24,361 26,036 28,319 30,212 32,664 31,259 25,975 21,100 19,423 16,810
======= ======== ======== ======== ======== ======== ======= ======= ======== =======
Number of Momentum units
outstanding, end of
period (000's)............... 986 1,052 1,057 957 776 348
======= ======== ======== ======== ======== ========
<CAPTION>
ALLIANCE BALANCED FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
------------------------------------------------- SEPTEMBER 9, 1993*
1998 1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- --------- -------- -------- -------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $136.14 $120.01 $108.95 $ 92.22 $101.63 $100.00
======== ========= ========= ======== ======== ========
Unit value, end of period........................ $158.63 $136.14 $120.01 $108.95 $ 92.22 $101.63
======== ========= ========= ======== ======== ========
Number of units outstanding, end of period (000's) 375 439 417 336 188 9
======== ========= ========= ======== ======== ========
<CAPTION>
ALLIANCE BALANCED FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
YEARS ENDED
DECEMBER 31,
-------------------- SEPTEMBER 1, 1996*
1998 1997 TO DECEMBER 31, 1996
-------- -------- ------------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $129.97 $114.16 $100.00
======== ======== =========
Unit value, end of period........................ $151.97 $129.97 $114.16
======== ======== =========
Number of units outstanding, end of period (000's) 11 10 48
======== ======== =========
</TABLE>
- ------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-71
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
ALLIANCE BALANCED FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEARS ENDED
DECEMBER 31,
-------------------
1998 1997
-------- --------
Unit value, beginning of period.................. $122.68 $100.00
======== ========
Unit value, end of period........................ $143.60 $122.68
======== ========
Number of units outstanding, end of period (000's) 1 1
======== ========
<TABLE>
<CAPTION>
ALLIANCE BALANCED FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS: 135 B.P.
YEARS ENDED DECEMBER 31,
-------------------------------------- JANUARY 3, 1994*
1998 1997 1996 1995 TO DECEMBER 31, 1994
-------- --------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $135.29 $119.26 $108.26 $ 91.64 $100.00
======== ========= ========= ======== ========
Unit value, end of period........................ $157.63 $135.29 $119.26 $108.26 $ 91.64
======== ========= ========= ======== ========
Number of units outstanding, end of period (000's) 752 655 548 386 289
======== ========= ========= ======== ========
</TABLE>
ALLIANCE BALANCED FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $102.39
=========
Number of units outstanding, end of period (000's) --
=========
ALLIANCE BALANCED FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $102.39
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-72
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Continued):
MERRILL LYNCH WORLD STRATEGY FUND -- MOMENTUM CONTRACTS
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $109.37
=========
Number of units outstanding, end of period (000's) --
=========
MERRILL LYNCH WORLD STRATEGY FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 96.28
=========
Number of units outstanding, end of period (000's) 1
=========
MERRILL LYNCH WORLD STRATEGY FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 96.44
=========
Number of units outstanding, end of period (000's) --
=========
MERRILL LYNCH WORLD STRATEGY FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 96.49
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-73
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
DECEMBER 31, 1998
6. Accumulation Unit Values (Concluded):
<TABLE>
<CAPTION>
MERRILL LYNCH WORLD STRATEGY FUND -- EQUI-VEST SERIES 100 THROUGH 400 CONTRACTS
YEAR ENDED MAY 1, 1997* TO
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------- ---------------------------
<S> <C> <C>
Unit value, beginning of period.................. $103.77 $100.00
========= ========
Unit value, end of period........................ $109.37 $103.77
========= ========
Number of units outstanding, end of period (000's) 84 52
========= ========
</TABLE>
MERRILL LYNCH WORLD STRATEGY FUND -- EQUI-VEST SERIES 500 CONTRACTS: 145 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 94.86
=========
Number of units outstanding, end of period (000's) --
=========
MERRILL LYNCH WORLD STRATEGY FUND -- EQUI-VEST SERIES 600 CONTRACTS: 120 B.P.
JULY 13, 1998*
TO DECEMBER 31, 1998
-----------------------
Unit value, beginning of period.................. $100.00
=========
Unit value, end of period........................ $ 94.96
=========
Number of units outstanding, end of period (000's) --
=========
- ------------------
*Date on which units were made available for sale.
FSA-74
<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 comprehensive
income 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, 1998 and 1997, and the results
of their operations and their cash flows for each of the three years in the
period ended December 31, 1998, 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 method of accounting for long-lived assets in 1996.
/s/PricewaterhouseCoopers LLP
- -----------------------------
PricewaterhouseCoopers LLP
New York, New York
February 8, 1999
F-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
1998 1997
----------------- -----------------
(In Millions)
<S> <C> <C>
ASSETS
Investments:
Fixed maturities:
Available for sale, at estimated fair value............................. $ 18,993.7 $ 19,630.9
Held to maturity, at amortized cost..................................... 125.0 -
Mortgage loans on real estate............................................. 2,809.9 2,611.4
Equity real estate........................................................ 1,676.9 2,495.1
Policy loans.............................................................. 2,086.7 2,422.9
Other equity investments.................................................. 713.3 951.5
Investment in and loans to affiliates..................................... 928.5 731.1
Other invested assets..................................................... 808.2 612.2
----------------- -----------------
Total investments..................................................... 28,142.2 29,455.1
Cash and cash equivalents................................................... 1,245.5 300.5
Deferred policy acquisition costs........................................... 3,563.8 3,236.6
Amounts due from discontinued operations.................................... 2.7 572.8
Other assets................................................................ 3,051.9 2,687.4
Closed Block assets......................................................... 8,632.4 8,566.6
Separate Accounts assets.................................................... 43,302.3 36,538.7
----------------- -----------------
Total Assets................................................................ $ 87,940.8 $ 81,357.7
================= =================
LIABILITIES
Policyholders' account balances............................................. $ 20,889.7 $ 21,579.5
Future policy benefits and other policyholders' liabilities................. 4,694.2 4,553.8
Short-term and long-term debt............................................... 1,181.7 1,716.7
Other liabilities........................................................... 3,474.3 3,267.2
Closed Block liabilities.................................................... 9,077.0 9,073.7
Separate Accounts liabilities............................................... 43,211.3 36,306.3
----------------- -----------------
Total liabilities..................................................... 82,528.2 76,497.2
----------------- -----------------
Commitments and contingencies (Notes 11, 13, 14, 15 and 16)
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.............................................. 3,110.2 3,105.8
Retained earnings........................................................... 1,944.1 1,235.9
Accumulated other comprehensive income...................................... 355.8 516.3
----------------- -----------------
Total shareholder's equity............................................ 5,412.6 4,860.5
----------------- -----------------
Total Liabilities and Shareholder's Equity.................................. $ 87,940.8 $ 81,357.7
================= =================
</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, 1998, 1997 AND 1996
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ----------------- -----------------
(In Millions)
<S> <C> <C> <C>
REVENUES
Universal life and investment-type product policy fee
income...................................................... $ 1,056.2 $ 950.6 $ 874.0
Premiums...................................................... 588.1 601.5 597.6
Net investment income......................................... 2,228.1 2,282.8 2,203.6
Investment gains (losses), net................................ 100.2 (45.2) (9.8)
Commissions, fees and other income............................ 1,503.0 1,227.2 1,081.8
Contribution from the Closed Block............................ 87.1 102.5 125.0
----------------- ----------------- -----------------
Total revenues.......................................... 5,562.7 5,119.4 4,872.2
----------------- ----------------- -----------------
BENEFITS AND OTHER DEDUCTIONS
Interest credited to policyholders' account balances.......... 1,153.0 1,266.2 1,270.2
Policyholders' benefits....................................... 1,024.7 978.6 1,317.7
Other operating costs and expenses............................ 2,201.2 2,203.9 2,075.7
----------------- ----------------- -----------------
Total benefits and other deductions..................... 4,378.9 4,448.7 4,663.6
----------------- ----------------- -----------------
Earnings from continuing operations before Federal
income taxes, minority interest and cumulative
effect of accounting change................................. 1,183.8 670.7 208.6
Federal income taxes.......................................... 353.1 91.5 9.7
Minority interest in net income of consolidated subsidiaries.. 125.2 54.8 81.7
----------------- ----------------- -----------------
Earnings from continuing operations before cumulative
effect of accounting change................................. 705.5 524.4 117.2
Discontinued operations, net of Federal income taxes.......... 2.7 (87.2) (83.8)
Cumulative effect of accounting change, net of Federal
income taxes................................................ - - (23.1)
----------------- ----------------- -----------------
Net Earnings.................................................. $ 708.2 $ 437.2 $ 10.3
================= ================= =================
</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 AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ----------------- -----------------
(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............. 3,105.8 3,105.8 3,105.8
Additional capital in excess of par value..................... 4.4 - -
----------------- ----------------- -----------------
Capital in excess of par value, end of year................... 3,110.2 3,105.8 3,105.8
Retained earnings, beginning of year.......................... 1,235.9 798.7 788.4
Net earnings.................................................. 708.2 437.2 10.3
----------------- ----------------- -----------------
Retained earnings, end of year................................ 1,944.1 1,235.9 798.7
----------------- ----------------- -----------------
Accumulated other comprehensive income,
beginning of year........................................... 516.3 177.0 361.4
Other comprehensive income.................................... (160.5) 339.3 (184.4)
----------------- ----------------- -----------------
Accumulated other comprehensive income, end of year........... 355.8 516.3 177.0
----------------- ----------------- -----------------
Total Shareholder's Equity, End of Year....................... $ 5,412.6 $ 4,860.5 $ 4,084.0
================= ================= =================
COMPREHENSIVE INCOME
Net earnings.................................................. $ 708.2 $ 437.2 $ 10.3
----------------- ----------------- -----------------
Change in unrealized gains (losses), net of reclassification
adjustment.................................................. (149.5) 343.7 (206.6)
Minimum pension liability adjustment.......................... (11.0) (4.4) 22.2
----------------- ----------------- -----------------
Other comprehensive income.................................... (160.5) 339.3 (184.4)
----------------- ----------------- -----------------
Comprehensive Income.......................................... $ 547.7 $ 776.5 $ (174.1)
================= ================= =================
</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, 1998, 1997 AND 1996
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ----------------- -----------------
(In Millions)
<S> <C> <C> <C>
Net earnings.................................................. $ 708.2 $ 437.2 $ 10.3
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Interest credited to policyholders' account balances........ 1,153.0 1,266.2 1,270.2
Universal life and investment-type product
policy fee income......................................... (1,056.2) (950.6) (874.0)
Investment (gains) losses................................... (100.2) 45.2 9.8
Change in Federal income tax payable........................ 123.1 (74.4) (197.1)
Other, net.................................................. (324.9) 169.4 330.2
----------------- ----------------- -----------------
Net cash provided by operating activities..................... 503.0 893.0 549.4
----------------- ----------------- -----------------
Cash flows from investing activities:
Maturities and repayments................................... 2,289.0 2,702.9 2,275.1
Sales....................................................... 16,972.1 10,385.9 8,964.3
Purchases................................................... (18,578.5) (13,205.4) (12,559.6)
Decrease (increase) in short-term investments............... 102.4 (555.0) 450.3
Decrease in loans to discontinued operations................ 660.0 420.1 1,017.0
Sale of subsidiaries........................................ - 261.0 -
Other, net.................................................. (341.8) (612.6) (281.0)
----------------- ----------------- -----------------
Net cash provided (used) by investing activities.............. 1,103.2 (603.1) (133.9)
----------------- ----------------- -----------------
Cash flows from financing activities:
Policyholders' account balances:
Deposits.................................................. 1,508.1 1,281.7 1,925.4
Withdrawals............................................... (1,724.6) (1,886.8) (2,385.2)
Net (decrease) increase in short-term financings............ (243.5) 419.9 (.3)
Repayments of long-term debt................................ (24.5) (196.4) (124.8)
Payment of obligation to fund accumulated deficit of
discontinued operations................................... (87.2) (83.9) -
Other, net.................................................. (89.5) (62.7) (66.5)
----------------- ----------------- -----------------
Net cash used by financing activities......................... (661.2) (528.2) (651.4)
----------------- ----------------- -----------------
Change in cash and cash equivalents........................... 945.0 (238.3) (235.9)
Cash and cash equivalents, beginning of year.................. 300.5 538.8 774.7
----------------- ----------------- -----------------
Cash and Cash Equivalents, End of Year........................ $ 1,245.5 $ 300.5 $ 538.8
================= ================= =================
Supplemental cash flow information
Interest Paid............................................... $ 130.7 $ 217.1 $ 109.9
================= ================= =================
Income Taxes Paid (Refunded)................................ $ 254.3 $ 170.0 $ (10.0)
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1) ORGANIZATION
The Equitable Life Assurance Society of the United States ("Equitable
Life") is 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 subsidiaries, Equitable of Colorado ("EOC"), and, prior
to December 31, 1996, Equitable Variable Life Insurance Company
("EVLICO"). Effective January 1, 1997, EVLICO was merged into Equitable
Life, which continues 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"), in which Equitable Life has a
57.7% ownership interest, and Donaldson, Lufkin & Jenrette, Inc.
("DLJ"), an investment banking and brokerage affiliate in which
Equitable Life has a 32.5% ownership interest. AXA ("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 58.5% at December 31, 1998 (53.4% if
all securities convertible into, and options on, common stock were to be
converted or exercised).
The Insurance 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. It also 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 includes Alliance, the results of DLJ
which are accounted for on an equity basis, and, through June 10, 1997,
Equitable Real Estate Investment Management, Inc. ("EREIM"), a real
estate investment management subsidiary which was sold. Alliance
provides diversified investment fund management services to a variety of
institutional clients, including pension funds, endowments, and foreign
financial institutions, as well as to individual investors, principally
through a broad line of mutual funds. This segment includes
institutional Separate Accounts which provide various investment options
for large group pension clients, primarily deferred benefit contribution
plans, through pooled or single group accounts. DLJ's businesses include
securities underwriting, sales and trading, merchant banking, financial
advisory services, investment research, venture capital, correspondent
brokerage services, online interactive brokerage services and asset
management. DLJ serves institutional, corporate, governmental and
individual clients both domestically and internationally. EREIM provided
real estate investment management services, property management
services, mortgage servicing and loan asset management, and agricultural
investment management.
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") which
require 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.
The accompanying consolidated financial statements include the accounts
of Equitable Life and its wholly owned life insurance subsidiary
(collectively, the "Insurance Group"); non-insurance subsidiaries,
principally Alliance and EREIM (see Note 5); and those partnerships and
joint ventures in which Equitable Life or its subsidiaries has control
F-6
<PAGE>
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,
liabilities and results of operations are presented in the consolidated
financial statements as single line items (see Note 7). Unless
specifically stated, all other footnote disclosures contained herein
exclude the Closed Block related amounts.
All significant intercompany transactions and balances except those with
the Closed Block and discontinued operations (see Note 8) have been
eliminated in consolidation. The years "1998," "1997" and "1996" refer
to the years ended December 31, 1998, 1997 and 1996, respectively.
Certain reclassifications have been made in the amounts presented for
prior periods to conform these periods with the 1998 presentation.
Closed Block
On July 22, 1992, Equitable Life established the Closed Block for the
benefit of certain individual participating policies which were in force
on that date. The assets allocated to the Closed Block, together with
anticipated revenues from policies included in the Closed Block, were
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
Closed Block policyholders and will not revert to the benefit of the
Holding Company. No reallocation, transfer, borrowing or lending of
assets can be made between the Closed Block and other portions of
Equitable Life's General Account, any of its Separate Accounts or 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
Discontinued operations include the Group Non-Participating Wind-Up
Annuities ("Wind-Up Annuities") and the Guaranteed Interest Contract
("GIC") lines of business. An allowance was established for the premium
deficiency reserve for Wind-Up Annuities and estimated future losses of
the GIC line of business. Management reviews the adequacy of the
allowance each quarter and believes the allowance for future losses at
December 31, 1998 is adequate to provide for all future losses; however,
the quarterly allowance review 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 allowance for future losses, 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 allowance
are likely to result (see Note 8).
Accounting Changes
In June 1997, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 131,
"Disclosures about Segments of an Enterprise and Related Information".
SFAS No. 131 establishes standards for public companies to report
information about operating segments in annual and interim financial
statements issued to shareholders. It also specifies related disclosure
requirements for products and services, geographic areas and major
customers. Generally, financial information must be reported using the
basis management uses to make operating decisions and to evaluate
business performance. The Company implemented SFAS No. 131 effective
December 31, 1998 and continues to identify two operating segments to
reflect its major businesses: Insurance and Investment Services. While
the segment descriptions are the same as those previously reported,
certain amounts have been reattributed between the two reportable
segments. Prior period comparative segment information has been
restated.
F-7
<PAGE>
In March 1998, the American Institute of Certified Public Accountants
("AICPA") issued Statement of Position ("SOP") 98-1, "Accounting for the
Costs of Computer Software Developed or Obtained for Internal Use,"
which requires capitalization of external and certain internal costs
incurred to obtain or develop internal-use computer software during the
application development stage. The Company applied the provisions of SOP
98-1 prospectively effective January 1, 1998. The adoption of SOP 98-1
did not have a material impact on the Company's consolidated financial
statements. Capitalized internal-use software is amortized on a
straight-line basis over the estimated useful life of the software.
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. SFAS No. 121 requires long-lived assets and certain
identifiable intangibles be reviewed for impairment whenever events or
changes in circumstances 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.
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 for production of income. Real estate
which management intends to sell or abandon is classified as real estate
held for sale. Valuation allowances on real estate held for sale
continue to be computed using the lower of depreciated cost or estimated
fair value, net of disposition costs. Initial adoption of the impairment
requirements of SFAS No. 121 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 vacated in 1996.
New Accounting Pronouncements
In October 1998, the FASB issued SFAS No. 134, "Accounting for
Mortgage-Backed Securities Retained after the Securitization of Mortgage
Loans Held for Sale by a Mortgage Banking Enterprise," which amends
existing accounting and reporting standards for certain activities of
mortgage banking enterprises and other enterprises that conduct
operations that are substantially similar to the primary operations of a
mortgage banking enterprise. This statement is effective for the first
fiscal quarter beginning after December 15, 1998. This statement is not
expected to have a material impact on the Company's consolidated
financial statements.
In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities," which establishes accounting and
reporting standards for derivative instruments, including certain
derivatives embedded in other contracts, and for hedging activities. It
requires all derivatives to be recognized on the balance sheet at fair
value. The accounting for changes in the fair value of a derivative
depends on its intended use. Derivatives not used in hedging activities
must be adjusted to fair value through earnings. Changes in the fair
value of derivatives used in hedging activities will, depending on the
nature of the hedge, either be offset in earnings against the change in
fair value of the hedged item attributable to the risk being hedged or
recognized in other comprehensive income until the hedged item affects
earnings. For all hedging activities, the ineffective portion of a
derivative's change in fair value will be immediately recognized in
earnings.
SFAS No. 133 requires adoption in fiscal years beginning after June 15,
1999 and permits early adoption as of the beginning of any fiscal
quarter following issuance of the statement. Retroactive application to
financial statements of prior periods is prohibited. The Company expects
to adopt SFAS No. 133 effective January 1, 2000. Adjustments resulting
from initial adoption of the new requirements will be reported in a
manner similar to the cumulative effect of a change in accounting
principle and will be reflected in net income or accumulated other
comprehensive income based upon existing hedging relationships, if any.
Management currently is assessing the impact of adoption. However,
Alliance's adoption is not expected to have a significant impact on the
Company's consolidated balance sheet or statement of earnings. Also,
since most of DLJ's derivatives are carried at fair values, the
Company's consolidated earnings and financial position are not expected
to be significantly affected by DLJ's adoption of the new requirements.
F-8
<PAGE>
In late 1998, the AICPA issued SOP 98-7, "Deposit Accounting: Accounting
for Insurance and Reinsurance Contracts that Do Not Transfer Insurance
Risk". This SOP, effective for fiscal years beginning after June 15,
1999, provides guidance to both the insured and insurer on how to apply
the deposit method of accounting when it is required for insurance and
reinsurance contracts that do not transfer insurance risk. The SOP does
not address or change the requirements as to when deposit accounting
should be applied. SOP 98-7 applies to all entities and all insurance
and reinsurance contracts that do not transfer insurance risk except for
long-duration life and health insurance contracts. This SOP is not
expected to have a material impact on the Company's consolidated
financial statements.
In December 1997, the AICPA issued SOP 97-3, "Accounting by Insurance
and Other Enterprises for Insurance-Related Assessments". SOP 97-3
provides guidance for assessments related to insurance activities and
requirements for disclosure of certain information. SOP 97-3 is
effective for financial statements issued for periods beginning after
December 31, 1998. Restatement of previously issued financial statements
is not required. SOP 97-3 is not expected to have a material impact on
the Company's consolidated financial statements.
Valuation of Investments
Fixed maturities identified as available for sale are reported at
estimated fair value. Fixed maturities, which the Company has both the
ability and the intent to hold to maturity, are stated principally at
amortized cost. The amortized cost of fixed maturities is adjusted for
impairments in value deemed to be other than temporary.
Valuation allowances are netted against the asset categories to which
they apply.
Mortgage loans on real estate are stated at unpaid principal balances,
net of unamortized discounts and valuation allowances. 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.
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 held for sale are computed using the lower of depreciated cost or
current estimated fair value, net of disposition costs. Depreciation is
discontinued on real estate held for sale. Prior to the adoption of SFAS
No. 121, valuation allowances on real estate held for 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 or 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.
F-9
<PAGE>
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.
Net Investment Income, Investment Gains, Net and Unrealized Investment
Gains (Losses)
Net investment income and realized investment gains (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.
Realized investment gains (losses) are determined by specific
identification and are presented as a component of revenue. Changes in
valuation allowances are included in investment gains (losses).
Unrealized investment gains and losses on equity securities and fixed
maturities available for sale held by the Company are accounted for as a
separate component of accumulated comprehensive income, net of related
deferred Federal income taxes, amounts attributable to discontinued
operations, participating group annuity contracts and deferred policy
acquisition costs ("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 25 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 accumulated other comprehensive income in
consolidated shareholder's equity as of the balance sheet date.
F-10
<PAGE>
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, 1998, the expected investment yield, excluding
policy loans, generally ranged from 7.29% grading to 6.5% over a 20 year
period. 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. The effect on the amortization of DAC of revisions to
estimated gross margins is reflected in earnings in the period such
estimated gross margins are revised. The effect on the DAC asset that
would result from realization of unrealized gains (losses) is recognized
with an offset to accumulated comprehensive income in consolidated
shareholder's equity as of the balance sheet date.
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.
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 represents 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,
includes 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 of
participating group annuity contracts and conversion annuities ("Pension
Par") was completed which included management's revised estimate of
assumptions, such as 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.
F-11
<PAGE>
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 related to DI products issued prior to
July 1993. 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 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 Pension Par
and 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 DI and major
medical policies were $938.6 million and $886.7 million at December 31,
1998 and 1997, respectively. Incurred benefits (benefits paid plus
changes in claim reserves) and benefits paid for individual DI and major
medical policies (excluding reserve strengthening in 1996) are
summarized as follows:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Incurred benefits related to current year.......... $ 202.1 $ 190.2 $ 189.0
Incurred benefits related to prior years........... 22.2 2.1 69.1
----------------- ---------------- -----------------
Total Incurred Benefits............................ $ 224.3 $ 192.3 $ 258.1
================= ================ =================
Benefits paid related to current year.............. $ 17.0 $ 28.8 $ 32.6
Benefits paid related to prior years............... 155.4 146.2 153.3
----------------- ---------------- -----------------
Total Benefits Paid................................ $ 172.4 $ 175.0 $ 185.9
================= ================ =================
</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.
At December 31, 1998, participating policies, including those in the
Closed Block, represent approximately 19.9% ($49.3 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 consolidated subsidiaries. Current Federal
income taxes are charged or credited to operations based upon amounts
estimated to be payable or recoverable as a result of taxable operations
for the current year. Deferred income tax assets and liabilities are
recognized based on the difference between financial statement carrying
amounts and income tax bases of assets and liabilities using enacted
income tax rates and laws.
Separate Accounts
Separate Accounts are established in conformity with the New York State
Insurance Law and generally are not chargeable with liabilities that
arise from any other business of the Insurance Group. Separate Accounts
assets are subject to General Account claims only to the extent the
value of such assets exceeds 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 1998, 1997 and 1996, investment results of
such Separate Accounts were $4,591.0 million, $3,411.1 million and
$2,970.6 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.
Employee Stock Option Plan
The Company accounts for stock option plans sponsored by the Holding
Company, DLJ and Alliance in accordance with the provisions of
Accounting Principles Board Opinion ("APB") No. 25, "Accounting for
Stock Issued to Employees," and related interpretations. In accordance
with the Statement, compensation expense is recorded on the date of
grant only if the current market price of the underlying stock exceeds
the option price. See Note 22 for the pro forma disclosures for the
Holding Company, DLJ and Alliance required by SFAS No. 123, "Accounting
for Stock-Based Compensation".
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, 1998
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 14,520.8 $ 793.6 $ 379.6 $ 14,934.8
Mortgage-backed.................... 1,807.9 23.3 .9 1,830.3
U.S. Treasury securities and
U.S. government and
agency securities................ 1,464.1 107.6 .7 1,571.0
States and political subdivisions.. 55.0 9.9 - 64.9
Foreign governments................ 363.3 20.9 30.0 354.2
Redeemable preferred stock......... 242.7 7.0 11.2 238.5
----------------- ----------------- ---------------- -----------------
Total Available for Sale............... $ 18,453.8 $ 962.3 $ 422.4 $ 18,993.7
================= ================= ================ =================
Held to Maturity: Corporate......... $ 125.0 $ - $ - $ 125.0
================= ================= ================ =================
Equity Securities:
Common stock......................... $ 58.3 $ 114.9 $ 22.5 $ 150.7
================= ================= ================ =================
December 31, 1997
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 14,850.5 $ 785.0 $ 74.5 $ 15,561.0
Mortgage-backed.................... 1,702.8 23.5 1.3 1,725.0
U.S. Treasury securities and
U.S. government and
agency securities................ 1,583.2 83.9 .6 1,666.5
States and political subdivisions.. 52.8 6.8 .1 59.5
Foreign governments................ 442.4 44.8 2.0 485.2
Redeemable preferred stock......... 128.0 6.7 1.0 133.7
----------------- ----------------- ---------------- -----------------
Total Available for Sale............... $ 18,759.7 $ 950.7 $ 79.5 $ 19,630.9
================= ================= ================ =================
Equity Securities:
Common stock......................... $ 408.4 $ 48.7 $ 15.0 $ 442.1
================= ================= ================ =================
</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
determines an estimated fair value using a discounted cash flow
approach, including provisions for credit risk, generally based on the
assumption such securities will be held to maturity. Estimated fair
values for equity securities, substantially all of which do not have a
readily ascertainable market value, have 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, 1998 and 1997, securities
without a readily ascertainable market value having an amortized cost of
$3,539.9 million and $3,759.2 million, respectively, had estimated fair
values of $3,748.5 million and $3,903.9 million, respectively.
F-14
<PAGE>
The contractual maturity of bonds at December 31, 1998 is shown below:
<TABLE>
<CAPTION>
Available for Sale
------------------------------------
Amortized Estimated
Cost Fair Value
---------------- -----------------
(In Millions)
<S> <C> <C>
Due in one year or less................................................ $ 324.8 $ 323.4
Due in years two through five.......................................... 3,778.2 3,787.9
Due in years six through ten........................................... 6,543.4 6,594.1
Due after ten years.................................................... 5,756.8 6,219.5
Mortgage-backed securities............................................. 1,807.9 1,830.3
---------------- -----------------
Total.................................................................. $ 18,211.1 $ 18,755.2
================ =================
</TABLE>
Corporate bonds held to maturity with an amortized cost and estimated
fair value of $125.0 million are due in one year or less.
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
concentrations in any single issuer or 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, 1998, approximately 15.1% of the
$18,336.1 million aggregate amortized cost of bonds held by the Company
was considered to be other than investment grade.
In addition, the Insurance Group is an equity investor in limited
partnership interests which primarily invest in securities considered to
be other than investment grade.
Fixed maturity investments with restructured or modified terms are not
material.
Investment valuation allowances and changes thereto are shown below:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Balances, beginning of year........................ $ 384.5 $ 137.1 $ 325.3
SFAS No. 121 release............................... - - (152.4)
Additions charged to income........................ 86.2 334.6 125.0
Deductions for writedowns and
asset dispositions............................... (240.1) (87.2) (160.8)
----------------- ---------------- -----------------
Balances, End of Year.............................. $ 230.6 $ 384.5 $ 137.1
================= ================ =================
Balances, end of year comprise:
Mortgage loans on real estate.................... $ 34.3 $ 55.8 $ 50.4
Equity real estate............................... 196.3 328.7 86.7
----------------- ---------------- -----------------
Total.............................................. $ 230.6 $ 384.5 $ 137.1
================= ================ =================
</TABLE>
F-15
<PAGE>
At December 31, 1998, the carrying value of fixed maturities which are
non-income producing for the twelve months preceding the consolidated
balance sheet date was $60.8 million.
At December 31, 1998 and 1997, 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 $7.0 million (0.2% of total
mortgage loans on real estate) and $23.4 million (0.9% 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 $115.1
million and $183.4 million at December 31, 1998 and 1997, 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 $10.3 million, $17.2 million and $35.5 million in
1998, 1997 and 1996, respectively. Gross interest income on these loans
included in net investment income aggregated $8.3 million, $12.7 million
and $28.2 million in 1998, 1997 and 1996, respectively.
Impaired mortgage loans (as defined under SFAS No. 114) along with the
related provision for losses were as follows:
<TABLE>
<CAPTION>
December 31,
----------------------------------------
1998 1997
------------------- -------------------
(In Millions)
<S> <C> <C>
Impaired mortgage loans with provision for losses.................. $ 125.4 $ 196.7
Impaired mortgage loans without provision for losses............... 8.6 3.6
------------------- -------------------
Recorded investment in impaired mortgage loans..................... 134.0 200.3
Provision for losses............................................... (29.0) (51.8)
------------------- -------------------
Net Impaired Mortgage Loans........................................ $ 105.0 $ 148.5
=================== ===================
</TABLE>
Impaired mortgage loans without 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 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 1998, 1997 and 1996, respectively, the Company's average recorded
investment in impaired mortgage loans was $161.3 million, $246.9 million
and $552.1 million. Interest income recognized on these impaired
mortgage loans totaled $12.3 million, $15.2 million and $38.8 million
($.9 million, $2.3 million and $17.9 million recognized on a cash basis)
for 1998, 1997 and 1996, respectively.
The Insurance Group's investment in equity real estate is through direct
ownership and through investments in real estate joint ventures. At
December 31, 1998 and 1997, the carrying value of equity real estate
held for sale amounted to $836.2 million and $1,023.5 million,
respectively. For 1998, 1997 and 1996, respectively, real estate of $7.1
million, $152.0 million and $58.7 million was acquired in satisfaction
of debt. At December 31, 1998 and 1997, the Company owned $552.3 million
and $693.3 million, respectively, of real estate acquired in
satisfaction of debt.
Depreciation of real estate held for production of income 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 $374.8 million and $541.1 million at
December 31, 1998 and 1997, respectively. Depreciation expense on real
estate totaled $30.5 million, $74.9 million and $91.8 million for 1998,
1997 and 1996, respectively.
F-16
<PAGE>
4) JOINT VENTURES AND PARTNERSHIPS
Summarized combined financial information for real estate joint ventures
(25 and 29 individual ventures as of December 31, 1998 and 1997,
respectively) and for 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,
------------------------------------
1998 1997
---------------- -----------------
(In Millions)
<S> <C> <C>
BALANCE SHEETS
Investments in real estate, at depreciated cost........................ $ 913.7 $ 1,700.9
Investments in securities, generally at estimated fair value........... 636.9 1,374.8
Cash and cash equivalents.............................................. 85.9 105.4
Other assets........................................................... 279.8 584.9
---------------- -----------------
Total Assets........................................................... $ 1,916.3 $ 3,766.0
================ =================
Borrowed funds - third party........................................... $ 367.1 $ 493.4
Borrowed funds - the Company........................................... 30.1 31.2
Other liabilities...................................................... 197.2 284.0
---------------- -----------------
Total liabilities...................................................... 594.4 808.6
---------------- -----------------
Partners' capital...................................................... 1,321.9 2,957.4
---------------- -----------------
Total Liabilities and Partners' Capital................................ $ 1,916.3 $ 3,766.0
================ =================
Equity in partners' capital included above............................. $ 312.9 $ 568.5
Equity in limited partnership interests not included above............. 442.1 331.8
Other.................................................................. .7 4.3
---------------- -----------------
Carrying Value......................................................... $ 755.7 $ 904.6
================ =================
</TABLE>
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Revenues of real estate joint ventures............. $ 246.1 $ 310.5 $ 348.9
Revenues of other limited partnership interests.... 128.9 506.3 386.1
Interest expense - third party..................... (33.3) (91.8) (111.0)
Interest expense - the Company..................... (2.6) (7.2) (30.0)
Other expenses..................................... (197.0) (263.6) (282.5)
----------------- ---------------- -----------------
Net Earnings....................................... $ 142.1 $ 454.2 $ 311.5
================= ================ =================
Equity in net earnings included above.............. $ 59.6 $ 76.7 $ 73.9
Equity in net earnings of limited partnership
interests not included above..................... 22.7 69.5 35.8
Other.............................................. - (.9) .9
----------------- ---------------- -----------------
Total Equity in Net Earnings....................... $ 82.3 $ 145.3 $ 110.6
================= ================ =================
</TABLE>
F-17
<PAGE>
5) NET INVESTMENT INCOME AND INVESTMENT GAINS (LOSSES)
The sources of net investment income are summarized as follows:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Fixed maturities................................... $ 1,489.0 $ 1,459.4 $ 1,307.4
Mortgage loans on real estate...................... 235.4 260.8 303.0
Equity real estate................................. 356.1 390.4 442.4
Other equity investments........................... 83.8 156.9 122.0
Policy loans....................................... 144.9 177.0 160.3
Other investment income............................ 185.7 181.7 217.4
----------------- ---------------- -----------------
Gross investment income.......................... 2,494.9 2,626.2 2,552.5
Investment expenses.............................. (266.8) (343.4) (348.9)
----------------- ---------------- -----------------
Net Investment Income.............................. $ 2,228.1 $ 2,282.8 $ 2,203.6
================= ================ =================
</TABLE>
Investment gains (losses), net, including changes in the valuation
allowances, are summarized as follows:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Fixed maturities................................... $ (24.3) $ 88.1 $ 60.5
Mortgage loans on real estate...................... (10.9) (11.2) (27.3)
Equity real estate................................. 74.5 (391.3) (79.7)
Other equity investments........................... 29.9 14.1 18.9
Sale of subsidiaries............................... (2.6) 252.1 -
Issuance and sales of Alliance Units............... 19.8 - 20.6
Issuance and sale of DLJ common stock.............. 18.2 3.0 -
Other.............................................. (4.4) - (2.8)
----------------- ---------------- -----------------
Investment Gains (Losses), Net..................... $ 100.2 $ (45.2) $ (9.8)
================= ================ =================
</TABLE>
Writedowns of fixed maturities amounted to $101.6 million, $11.7 million
and $29.9 million for 1998, 1997 and 1996, respectively, and writedowns
of equity real estate subsequent to the adoption of SFAS No. 121
amounted to $136.4 million for 1997. In the fourth quarter of 1997, the
Company reclassified $1,095.4 million depreciated cost of equity real
estate from real estate held for the production of income to real estate
held for sale. Additions to valuation allowances of $227.6 million were
recorded upon these transfers. Additionally, in fourth quarter 1997,
$132.3 million of writedowns on real estate held for production of
income were recorded.
For 1998, 1997 and 1996, respectively, proceeds received on sales of
fixed maturities classified as available for sale amounted to $15,961.0
million, $9,789.7 million and $8,353.5 million. Gross gains of $149.3
million, $166.0 million and $154.2 million and gross losses of $95.1
million, $108.8 million and $92.7 million, respectively, were realized
on these sales. The change in unrealized investment gains (losses)
related to fixed maturities classified as available for sale for 1998,
1997 and 1996 amounted to $(331.7) million, $513.4 million and $(258.0)
million, respectively.
For 1998, 1997 and 1996, investment results passed through to certain
participating group annuity contracts as interest credited to
policyholders' account balances amounted to $136.9 million, $137.5
million and $136.7 million, respectively.
F-18
<PAGE>
On June 10, 1997, Equitable Life sold EREIM (other than its interest in
Column Financial, Inc.) ("ERE") to Lend Lease Corporation Limited ("Lend
Lease"), a publicly traded, international property and financial
services company based in Sydney, Australia. The total purchase price
was $400.0 million and consisted of $300.0 million in cash and a $100.0
million note which was paid in 1998. The Company recognized an
investment gain of $162.4 million, net of Federal income tax of $87.4
million as a result of this transaction. Equitable Life entered into
long-term advisory agreements whereby ERE continues to provide
substantially the same services to Equitable Life's General Account and
Separate Accounts, for substantially the same fees, as provided prior to
the sale.
Through June 10, 1997 and for the year ended December 31, 1996,
respectively, the businesses sold reported combined revenues of $91.6
million and $226.1 million and combined net earnings of $10.7 million
and $30.7 million.
In 1996, Alliance acquired the business of Cursitor Holdings L.P. 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
additional consideration to be determined at a later date but currently
estimated to not exceed $10.0 million. 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. The Company recognized an investment gain of $20.6 million
as a result of the issuance of Alliance Units in this transaction. On
June 30, 1997, Alliance reduced the recorded value of goodwill and
contracts associated with Alliance's acquisition of Cursitor by $120.9
million. This charge reflected Alliance's view that Cursitor's
continuing decline in assets under management and its reduced
profitability, resulting from relative investment underperformance, no
longer supported the carrying value of its investment. As a result, the
Company's earnings from continuing operations before cumulative effect
of accounting change for 1997 included a charge of $59.5 million, net of
a Federal income tax benefit of $10.0 million and minority interest of
$51.4 million. The remaining balance of intangible assets is being
amortized over its estimated useful life of 20 years. At December 31,
1998, the Company's ownership of Alliance Units was approximately 56.7%.
F-19
<PAGE>
Net unrealized investment gains (losses), included in the consolidated
balance sheets as a component of accumulated comprehensive income and
the changes for the corresponding years, are summarized as follows:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Balance, beginning of year......................... $ 533.6 $ 189.9 $ 396.5
Changes in unrealized investment gains (losses).... (242.4) 543.3 (297.6)
Changes in unrealized investment losses
(gains) attributable to:
Participating group annuity contracts.......... (5.7) 53.2 -
DAC............................................ 13.2 (89.0) 42.3
Deferred Federal income taxes.................. 85.4 (163.8) 48.7
----------------- ---------------- -----------------
Balance, End of Year............................... $ 384.1 $ 533.6 $ 189.9
================= ================ =================
Balance, end of year comprises:
Unrealized investment gains on:
Fixed maturities............................... $ 539.9 $ 871.2 $ 357.8
Other equity investments....................... 92.4 33.7 31.6
Other, principally Closed Block................ 111.1 80.9 53.1
----------------- ---------------- -----------------
Total........................................ 743.4 985.8 442.5
Amounts of unrealized investment gains
attributable to:
Participating group annuity contracts........ (24.7) (19.0) (72.2)
DAC.......................................... (127.8) (141.0) (52.0)
Deferred Federal income taxes................ (206.8) (292.2) (128.4)
----------------- ---------------- -----------------
Total.............................................. $ 384.1 $ 533.6 $ 189.9
================= ================ =================
</TABLE>
6) ACCUMULATED OTHER COMPREHENSIVE INCOME
Accumulated other comprehensive income represents cumulative gains and
losses on items that are not reflected in earnings. The balances for the
years 1998, 1997 and 1996 are as follows:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Unrealized gains on investments.................... $ 384.1 $ 533.6 $ 189.9
Minimum pension liability.......................... (28.3) (17.3) (12.9)
----------------- ---------------- -----------------
Total Accumulated Other
Comprehensive Income............................. $ 355.8 $ 516.3 $ 177.0
================= ================ =================
</TABLE>
F-20
<PAGE>
The components of other comprehensive income for the years 1998, 1997
and 1996 are as follows:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Net unrealized gains (losses) on investment
securities:
Net unrealized gains (losses) arising during
the period..................................... $ (186.1) $ 564.0 $ (249.8)
Reclassification adjustment for (gains) losses
included in net earnings....................... (56.3) (20.7) (47.8)
----------------- ---------------- -----------------
Net unrealized gains (losses) on investment
securities....................................... (242.4) 543.3 (297.6)
Adjustments for policyholder liabilities,
DAC and deferred
Federal income taxes............................. 92.9 (199.6) 91.0
----------------- ---------------- -----------------
Change in unrealized gains (losses), net of
reclassification and adjustments................. (149.5) 343.7 (206.6)
Change in minimum pension liability................ (11.0) (4.4) 22.2
----------------- ---------------- -----------------
Total Other Comprehensive Income................... $ (160.5) $ 339.3 $ (184.4)
================= ================ =================
</TABLE>
7) CLOSED BLOCK
Summarized financial information for the Closed Block follows:
<TABLE>
<CAPTION>
December 31,
--------------------------------------
1998 1997
----------------- -----------------
(In Millions)
<S> <C> <C>
Assets
Fixed Maturities:
Available for sale, at estimated fair value (amortized cost,
$4,149.0 and $4,059.4)........................................... $ 4,373.2 $ 4,231.0
Mortgage loans on real estate........................................ 1,633.4 1,341.6
Policy loans......................................................... 1,641.2 1,700.2
Cash and other invested assets....................................... 86.5 282.0
DAC.................................................................. 676.5 775.2
Other assets......................................................... 221.6 236.6
----------------- -----------------
Total Assets......................................................... $ 8,632.4 $ 8,566.6
================= =================
Liabilities
Future policy benefits and policyholders' account balances........... $ 9,013.1 $ 8,993.2
Other liabilities.................................................... 63.9 80.5
----------------- -----------------
Total Liabilities.................................................... $ 9,077.0 $ 9,073.7
================= =================
</TABLE>
F-21
<PAGE>
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Revenues
Premiums and other revenue......................... $ 661.7 $ 687.1 $ 724.8
Investment income (net of investment
expenses of $15.5, $27.0 and $27.3).............. 569.7 574.9 546.6
Investment losses, net............................. .5 (42.4) (5.5)
----------------- ---------------- -----------------
Total revenues............................... 1,231.9 1,219.6 1,265.9
----------------- ---------------- -----------------
Benefits and Other Deductions
Policyholders' benefits and dividends.............. 1,082.0 1,066.7 1,106.3
Other operating costs and expenses................. 62.8 50.4 34.6
----------------- ---------------- -----------------
Total benefits and other deductions.......... 1,144.8 1,117.1 1,140.9
----------------- ---------------- -----------------
Contribution from the Closed Block................. $ 87.1 $ 102.5 $ 125.0
================= ================ =================
</TABLE>
At December 31, 1998 and 1997, problem mortgage loans on real estate had
an amortized cost of $5.1 million and $8.1 million, respectively, and
mortgage loans on real estate for which the payment terms have been
restructured had an amortized cost of $26.0 million and $70.5 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,
------------------------------------
1998 1997
---------------- -----------------
(In Millions)
<S> <C> <C>
Impaired mortgage loans with provision for losses...................... $ 55.5 $ 109.1
Impaired mortgage loans without provision for losses................... 7.6 .6
---------------- -----------------
Recorded investment in impaired mortgages.............................. 63.1 109.7
Provision for losses................................................... (10.1) (17.4)
---------------- -----------------
Net Impaired Mortgage Loans............................................ $ 53.0 $ 92.3
================ =================
</TABLE>
During 1998, 1997 and 1996, the Closed Block's average recorded
investment in impaired mortgage loans was $85.5 million, $110.2 million
and $153.8 million, respectively. Interest income recognized on these
impaired mortgage loans totaled $4.7 million, $9.4 million and $10.9
million ($1.5 million, $4.1 million and $4.7 million recognized on a
cash basis) for 1998, 1997 and 1996, respectively.
Valuation allowances amounted to $11.1 million and $18.5 million on
mortgage loans on real estate and $15.4 million and $16.8 million on
equity real estate at December 31, 1998 and 1997, 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 for
production of income. Writedowns of fixed maturities amounted to $3.5
million and $12.8 million for 1997 and 1996, respectively. Writedowns of
equity real estate subsequent to the adoption of SFAS No. 121 amounted
to $28.8 million for 1997.
In the fourth quarter of 1997, $72.9 million depreciated cost of equity
real estate held for production of income was reclassified to equity
real estate held for sale. Additions to valuation allowances of $15.4
million were recorded upon these transfers. Additionally, in fourth
quarter 1997, $28.8 million of writedowns on real estate held for
production of income were recorded.
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>
8) DISCONTINUED OPERATIONS
Summarized financial information for discontinued operations follows:
<TABLE>
<CAPTION>
December 31,
--------------------------------------
1998 1997
----------------- -----------------
(In Millions)
<S> <C> <C>
Assets
Mortgage loans on real estate........................................ $ 553.9 $ 635.2
Equity real estate................................................... 611.0 874.5
Other equity investments............................................. 115.1 209.3
Other invested assets................................................ 24.9 152.4
----------------- -----------------
Total investments.................................................. 1,304.9 1,871.4
Cash and cash equivalents............................................ 34.7 106.8
Other assets......................................................... 219.0 243.8
----------------- -----------------
Total Assets......................................................... $ 1,558.6 $ 2,222.0
================= =================
Liabilities
Policyholders' liabilities........................................... $ 1,021.7 $ 1,048.3
Allowance for future losses.......................................... 305.1 259.2
Amounts due to continuing operations................................. 2.7 572.8
Other liabilities.................................................... 229.1 341.7
----------------- -----------------
Total Liabilities.................................................... $ 1,558.6 $ 2,222.0
================= =================
</TABLE>
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Revenues
Investment income (net of investment
expenses of $63.3, $97.3 and $127.5)............. $ 160.4 $ 188.6 $ 245.4
Investment gains (losses), net..................... 35.7 (173.7) (18.9)
Policy fees, premiums and other income............. (4.3) .2 .2
----------------- ---------------- -----------------
Total revenues..................................... 191.8 15.1 226.7
Benefits and other deductions...................... 141.5 169.5 250.4
Earnings added (losses charged) to allowance
for future losses................................ 50.3 (154.4) (23.7)
----------------- ---------------- -----------------
Pre-tax loss from operations....................... - - -
Pre-tax earnings from releasing (loss from
strengthening) of the allowance for future
losses........................................... 4.2 (134.1) (129.0)
Federal income tax (expense) benefit............... (1.5) 46.9 45.2
----------------- ---------------- -----------------
Earnings (Loss) from Discontinued Operations....... $ 2.7 $ (87.2) $ (83.8)
================= ================ =================
</TABLE>
The Company's quarterly process for evaluating the allowance for future
losses applies the current period's results of the discontinued
operations against the allowance, re-estimates future losses and adjusts
the allowance, 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 a release of allowance in
1998 and strengthening of allowance in 1997 and 1996.
F-23
<PAGE>
In the fourth quarter of 1997, $329.9 million depreciated cost of equity
real estate was reclassified from equity real estate held for production
of income to real estate held for sale. Additions to valuation
allowances of $79.8 million were recognized upon these transfers.
Additionally, in fourth quarter 1997, $92.5 million of writedowns on
real estate held for production of income were recognized.
Benefits and other deductions includes $26.6 million, $53.3 million and
$114.3 million of interest expense related to amounts borrowed from
continuing operations in 1998, 1997 and 1996, respectively.
Valuation allowances amounted to $3.0 million and $28.4 million on
mortgage loans on real estate and $34.8 million and $88.4 million on
equity real estate at December 31, 1998 and 1997, 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
for production of income. Writedowns of equity real estate subsequent to
the adoption of SFAS No. 121 amounted to $95.7 million and $12.3 million
for 1997 and 1996, respectively.
At December 31, 1998 and 1997, problem mortgage loans on real estate had
amortized costs of $1.1 million and $11.0 million, respectively, and
mortgage loans on real estate for which the payment terms have been
restructured had amortized costs of $3.5 million and $109.4 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,
------------------------------------
1998 1997
---------------- -----------------
(In Millions)
<S> <C> <C>
Impaired mortgage loans with provision for losses...................... $ 6.7 $ 101.8
Impaired mortgage loans without provision for losses................... 8.5 .2
---------------- -----------------
Recorded investment in impaired mortgages.............................. 15.2 102.0
Provision for losses................................................... (2.1) (27.3)
---------------- -----------------
Net Impaired Mortgage Loans............................................ $ 13.1 $ 74.7
================ =================
</TABLE>
During 1998, 1997 and 1996, the discontinued operations' average
recorded investment in impaired mortgage loans was $73.3 million, $89.2
million and $134.8 million, respectively. Interest income recognized on
these impaired mortgage loans totaled $4.7 million, $6.6 million and
$10.1 million ($3.4 million, $5.3 million and $7.5 million recognized on
a cash basis) for 1998, 1997 and 1996, respectively.
At December 31, 1998 and 1997, discontinued operations had carrying
values of $50.0 million and $156.2 million, respectively, of real estate
acquired in satisfaction of debt.
F-24
<PAGE>
9) SHORT-TERM AND LONG-TERM DEBT
Short-term and long-term debt consists of the following:
<TABLE>
<CAPTION>
December 31,
--------------------------------------
1998 1997
----------------- -----------------
(In Millions)
<S> <C> <C>
Short-term debt...................................................... $ 179.3 $ 422.2
----------------- -----------------
Long-term debt:
Equitable Life:
6.95% surplus notes scheduled to mature 2005....................... 399.4 399.4
7.70% surplus notes scheduled to mature 2015....................... 199.7 199.7
Other.............................................................. .3 .3
----------------- -----------------
Total Equitable Life........................................... 599.4 599.4
----------------- -----------------
Wholly Owned and Joint Venture Real Estate:
Mortgage notes, 5.91% - 12.00%, due through 2017................... 392.2 676.6
----------------- -----------------
Alliance:
Other.............................................................. 10.8 18.5
----------------- -----------------
Total long-term debt................................................. 1,002.4 1,294.5
----------------- -----------------
Total Short-term and Long-term Debt.................................. $ 1,181.7 $ 1,716.7
================= =================
</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 and expires in September
2000. The interest rates are based on external indices dependent on the
type of borrowing and at December 31, 1998 range from 5.23% to 7.75%.
There were no borrowings outstanding under this bank credit facility at
December 31, 1998.
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 bank credit facility. At
December 31, 1998, there were no borrowings outstanding under this
program.
During July 1998, Alliance entered into a $425.0 million five-year
revolving credit facility with a group of commercial banks which
replaced a $250.0 million revolving credit facility. Under the 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 London
Interbank Offered Rate ("LIBOR") or the Federal Funds Rate. A facility
fee is payable on the total facility. During September 1998, Alliance
increased the size of its commercial paper program from $250.0 million
to $425.0 million. Borrowings from these two sources may not exceed
$425.0 million in the aggregate. The revolving credit facility provides
backup liquidity for commercial paper issued under Alliance's commercial
paper program and can be used as a direct source of borrowing. The
revolving credit facility contains covenants which require Alliance to,
among other things, meet certain financial ratios. As of December 31,
1998, Alliance had commercial paper outstanding totaling $179.5 million
at an effective interest rate of 5.5% and there were no borrowings
outstanding under Alliance's revolving credit facility.
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.
F-25
<PAGE>
The Company has pledged real estate, mortgage loans, cash and securities
amounting to $640.2 million and $1,164.0 million at December 31, 1998
and 1997, respectively, as collateral for certain short-term and
long-term debt.
At December 31, 1998, aggregate maturities of the long-term debt based
on required principal payments at maturity for 1999 and the succeeding
four years are $322.8 million, $6.9 million, $1.7 million, $1.8 million
and $2.0 million, respectively, and $668.0 million thereafter.
10) FEDERAL INCOME TAXES
A summary of the Federal income tax expense in the consolidated
statements of earnings is shown below:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Federal income tax expense (benefit):
Current.......................................... $ 283.3 $ 186.5 $ 97.9
Deferred......................................... 69.8 (95.0) (88.2)
----------------- ---------------- -----------------
Total.............................................. $ 353.1 $ 91.5 $ 9.7
================= ================ =================
</TABLE>
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>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Expected Federal income tax expense................ $ 414.3 $ 234.7 $ 73.0
Non-taxable minority interest...................... (33.2) (38.0) (28.6)
Adjustment of tax audit reserves................... 16.0 (81.7) 6.9
Equity in unconsolidated subsidiaries.............. (39.3) (45.1) (32.3)
Other.............................................. (4.7) 21.6 (9.3)
----------------- ---------------- -----------------
Federal Income Tax Expense......................... $ 353.1 $ 91.5 $ 9.7
================= ================ =================
</TABLE>
The components of the net deferred Federal income taxes are as follows:
<TABLE>
<CAPTION>
December 31, 1998 December 31, 1997
--------------------------------- ---------------------------------
Assets Liabilities Assets Liabilities
--------------- ---------------- --------------- ---------------
(In Millions)
<S> <C> <C> <C> <C>
Compensation and related benefits...... $ 235.3 $ - $ 257.9 $ -
Other.................................. 27.8 - 30.7 -
DAC, reserves and reinsurance.......... - 231.4 - 222.8
Investments............................ - 364.4 - 405.7
--------------- ---------------- --------------- ---------------
Total.................................. $ 263.1 $ 595.8 $ 288.6 $ 628.5
=============== ================ =============== ===============
</TABLE>
F-26
<PAGE>
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>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
DAC, reserves and reinsurance...................... $ (7.7) $ 46.2 $ (156.2)
Investments........................................ 46.8 (113.8) 78.6
Compensation and related benefits.................. 28.6 3.7 22.3
Other.............................................. 2.1 (31.1) (32.9)
----------------- ---------------- -----------------
Deferred Federal Income Tax
Expense (Benefit)................................ $ 69.8 $ (95.0) $ (88.2)
================= ================ =================
</TABLE>
The Internal Revenue Service (the "IRS") is in the process of examining
the Holding Company's consolidated Federal income tax returns for the
years 1992 through 1996. Management believes these audits will have no
material adverse effect on the Company's results of operations.
11) 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. Ceded reinsurance does not relieve the originating insurer
of liability. The effect of reinsurance (excluding group life and
health) is summarized as follows:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Direct premiums.................................... $ 438.8 $ 448.6 $ 461.4
Reinsurance assumed................................ 203.6 198.3 177.5
Reinsurance ceded.................................. (54.3) (45.4) (41.3)
----------------- ---------------- -----------------
Premiums........................................... $ 588.1 $ 601.5 $ 597.6
================= ================ =================
Universal Life and Investment-type Product
Policy Fee Income Ceded.......................... $ 75.7 $ 61.0 $ 48.2
================= ================ =================
Policyholders' Benefits Ceded...................... $ 85.9 $ 70.6 $ 54.1
================= ================ =================
Interest Credited to Policyholders' Account
Balances Ceded................................... $ 39.5 $ 36.4 $ 32.3
================= ================ =================
</TABLE>
Beginning in May 1997, the Company began reinsuring on a yearly renewal
term basis 90% of the mortality risk on new issues of certain term,
universal and variable life products. During 1996, the Company's
retention limit on joint survivorship policies was increased to $15.0
million. Effective January 1, 1994, all in force business above $5.0
million was reinsured. The Insurance Group also reinsures the entire
risk on certain substandard underwriting risks as well as in certain
other cases.
The Insurance Group cedes 100% of its group life and health business to
a third party insurance company. Premiums ceded totaled $1.3 million,
$1.6 million and $2.4 million for 1998, 1997 and 1996, respectively.
Ceded death and disability benefits totaled $15.6 million, $4.3 million
and $21.2 million for 1998, 1997 and 1996, respectively. Insurance
liabilities ceded totaled $560.3 million and $593.8 million at December
31, 1998 and 1997, respectively.
F-27
<PAGE>
12) 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 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 ("ERISA").
Components of net periodic pension cost (credit) for the qualified and
non-qualified plans are as follows:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Service cost....................................... $ 33.2 $ 32.5 $ 33.8
Interest cost on projected benefit obligations..... 129.2 128.2 120.8
Actual return on assets............................ (175.6) (307.6) (181.4)
Net amortization and deferrals..................... 6.1 166.6 43.4
----------------- ---------------- -----------------
Net Periodic Pension Cost (Credit)................. $ (7.1) $ 19.7 $ 16.6
================= ================ =================
</TABLE>
The plan's projected benefit obligation under the qualified and
non-qualified plans was comprised of:
<TABLE>
<CAPTION>
December 31,
------------------------------------
1998 1997
---------------- -----------------
(In Millions)
<S> <C> <C>
Benefit obligation, beginning of year.................................. $ 1,801.3 $ 1,765.5
Service cost........................................................... 33.2 32.5
Interest cost.......................................................... 129.2 128.2
Actuarial (gains) losses............................................... 108.4 (15.5)
Benefits paid.......................................................... (138.7) (109.4)
---------------- -----------------
Benefit Obligation, End of Year........................................ $ 1,933.4 $ 1,801.3
================ =================
</TABLE>
The funded status of the qualified and non-qualified pension plans is as
follows:
<TABLE>
<CAPTION>
December 31,
------------------------------------
1998 1997
---------------- -----------------
(In Millions)
<S> <C> <C>
Plan assets at fair value, beginning of year........................... $ 1,867.4 $ 1,626.0
Actual return on plan assets........................................... 338.9 307.5
Contributions.......................................................... - 30.0
Benefits paid and fees................................................. (123.2) (96.1)
---------------- -----------------
Plan assets at fair value, end of year................................. 2,083.1 1,867.4
Projected benefit obligations.......................................... 1,933.4 1,801.3
---------------- -----------------
Projected benefit obligations less than plan assets.................... 149.7 66.1
Unrecognized prior service cost........................................ (7.5) (9.9)
Unrecognized net loss from past experience different
from that assumed.................................................... 38.7 95.0
Unrecognized net asset at transition................................... 1.5 3.1
---------------- -----------------
Prepaid Pension Cost.................................................. $ 182.4 $ 154.3
================ =================
</TABLE>
The discount rate and rate of increase in future compensation levels
used in determining the actuarial present value of projected benefit
obligations were 7.0% and 3.83%, respectively, at December 31, 1998 and
7.25% and 4.07%, respectively, at December 31, 1997. As of January 1,
1998 and 1997, the expected long-term rate of return on assets for the
retirement plan was 10.25%.
F-28
<PAGE>
The Company recorded, as a reduction of shareholders' equity an
additional minimum pension liability of $28.3 million and $17.3 million,
net of Federal income taxes, at December 31, 1998 and 1997,
respectively, primarily representing the excess of the accumulated
benefit obligation of the qualified pension plan over the accrued
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 $31.8 million,
$33.2 million and $34.7 million for 1998, 1997 and 1996, respectively.
The Company provides certain medical and life insurance benefits
(collectively, "postretirement benefits") for qualifying employees,
managers and agents retiring from the Company (i) on or after attaining
age 55 who have at least 10 years of service or (ii) on or after
attaining age 65 or (iii) whose jobs have been abolished and who have
attained age 50 with 20 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 1998, 1997 and 1996, the Company made
estimated postretirement benefits payments of $28.4 million, $18.7
million and $18.9 million, respectively.
The following table sets forth the postretirement benefits plan's
status, reconciled to amounts recognized in the Company's consolidated
financial statements:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Service cost....................................... $ 4.6 $ 4.5 $ 5.3
Interest cost on accumulated postretirement
benefits obligation.............................. 33.6 34.7 34.6
Net amortization and deferrals..................... .5 1.9 2.4
----------------- ---------------- -----------------
Net Periodic Postretirement Benefits Costs......... $ 38.7 $ 41.1 $ 42.3
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
December 31,
------------------------------------
1998 1997
---------------- -----------------
(In Millions)
<S> <C> <C>
Accumulated postretirement benefits obligation, beginning
of year.............................................................. $ 490.8 $ 388.5
Service cost........................................................... 4.6 4.5
Interest cost.......................................................... 33.6 34.7
Contributions and benefits paid........................................ (28.4) 72.1
Actuarial (gains) losses............................................... (10.2) (9.0)
---------------- -----------------
Accumulated postretirement benefits obligation, end of year............ 490.4 490.8
Unrecognized prior service cost........................................ 31.8 40.3
Unrecognized net loss from past experience different
from that assumed and from changes in assumptions.................... (121.2) (140.6)
---------------- -----------------
Accrued Postretirement Benefits Cost................................... $ 401.0 $ 390.5
================ =================
</TABLE>
Since January 1, 1994, costs to the Company for providing these 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.
F-29
<PAGE>
The assumed health care cost trend rate used in measuring the
accumulated postretirement benefits obligation was 8.0% in 1998,
gradually declining to 2.5% in the year 2009, and in 1997 was 8.75%,
gradually declining to 2.75% in the year 2009. The discount rate used in
determining the accumulated postretirement benefits obligation was 7.0%
and 7.25% at December 31, 1998 and 1997, respectively.
If the health care cost trend rate assumptions were increased by 1%, the
accumulated postretirement benefits obligation as of December 31, 1998
would be increased 4.83%. The effect of this change on the sum of the
service cost and interest cost would be an increase of 4.57%. If the
health care cost trend rate assumptions were decreased by 1% the
accumulated postretirement benefits obligation as of December 31, 1998
would be decreased by 5.6%. The effect of this change on the sum of the
service cost and interest cost would be a decrease of 5.4%.
13) 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, 1998 and 1997, respectively, was $880.9 million and
$1,353.4 million. The average unexpired terms at December 31, 1998
ranged from 1 month to 4.3 years. At December 31, 1998, the cost of
terminating swaps in a loss position was $8.0 million. 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, 1998 of contracts purchased
and sold were $8,450.0 million and $875.0 million, respectively. The net
premium paid by Equitable Life on these contracts was $54.8 million and
is being amortized ratably over the contract periods ranging from 1 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 activities related to derivatives are, by
their nature trading activities which are primarily for the purpose of
customer accommodations. DLJ enters into certain contractual agreements
referred to as derivatives or off-balance-sheet financial instruments
involving futures, forwards and options. DLJ's derivative activities
consist of writing over-the-counter ("OTC") options to accommodate its
customer needs, trading in forward contracts in U.S. government and
agency issued or guaranteed securities and in futures contracts on
equity-based indices, interest rate instruments and currencies and
issuing structured products based on emerging market financial
instruments and indices. DLJ's involvement in swap contracts and
commodity derivative instruments 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 the timing and 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, 1998 and 1997.
F-30
<PAGE>
Fair values 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.
Fair values of policy loans are estimated by discounting the face value
of the loans from the time of the next interest rate review to the
present, at a rate equal to the excess of the current estimated market
rates over the current interest rate charged on the loan.
The estimated fair values for the Company's association plan contracts,
supplementary contracts not involving life contingencies ("SCNILC") and
annuities certain, which are included in policyholders' account
balances, and guaranteed interest contracts are estimated using
projected cash flows discounted at rates reflecting expected current
offering rates.
The estimated fair values for variable deferred annuities and single
premium deferred annuities ("SPDA"), which are included in
policyholders' account balances, are estimated by discounting the
account value back from the time of the next crediting rate review to
the present, at a rate equal to the excess of current estimated market
rates offered on new policies over the current crediting rates.
Fair values for long-term debt are 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 carrying value of short-term
borrowings approximates their estimated fair value.
The following table discloses carrying value and estimated fair value
for financial instruments not otherwise disclosed in Notes 3, 7 and 8:
<TABLE>
<CAPTION>
December 31,
--------------------------------------------------------------------
1998 1997
--------------------------------- ---------------------------------
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.......... $ 2,809.9 $ 2,961.8 $ 2,611.4 $ 2,822.8
Other limited partnership interests.... 562.6 562.6 509.4 509.4
Policy loans........................... 2,086.7 2,370.7 2,422.9 2,493.9
Policyholders' account balances -
investment contracts................. 12,892.0 13,396.0 12,611.0 12,714.0
Long-term debt......................... 1,002.4 1,025.2 1,294.5 1,257.0
Closed Block Financial Instruments:
Mortgage loans on real estate.......... 1,633.4 1,703.5 1,341.6 1,420.7
Other equity investments............... 56.4 56.4 86.3 86.3
Policy loans........................... 1,641.2 1,929.7 1,700.2 1,784.2
SCNILC liability....................... 25.0 25.0 27.6 30.3
Discontinued Operations Financial
Instruments:
Mortgage loans on real estate.......... 553.9 599.9 655.5 779.9
Fixed maturities....................... 24.9 24.9 38.7 38.7
Other equity investments............... 115.1 115.1 209.3 209.3
Guaranteed interest contracts.......... 37.0 34.0 37.0 34.0
Long-term debt......................... 147.1 139.8 296.4 297.6
</TABLE>
F-31
<PAGE>
14) 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 $142.9 million to affiliated real estate
joint ventures; and to provide equity financing to certain limited
partnerships of $287.3 million at December 31, 1998, under existing loan
or loan commitment agreements.
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.
The Insurance Group had $24.7 million of letters of credit outstanding
at December 31, 1998.
15) LITIGATION
Major Medical Insurance Cases
Equitable Life agreed to settle, subject to court approval, previously
disclosed cases involving lifetime guaranteed renewable major medical
insurance policies issued by Equitable Life in five states. Plaintiffs
in these cases claimed that Equitable Life's method for determining
premium increases breached the terms of certain forms of the policies
and was misrepresented. In certain cases plaintiffs also claimed that
Equitable Life misrepresented to policyholders that premium increases
had been approved by insurance departments, and that it determined
annual rate increases in a manner that discriminated against the
policyholders.
In December 1997, Equitable Life entered into a settlement agreement,
subject to court approval, which would result in creation of a
nationwide class consisting of all persons holding, and paying premiums
on, the policies at any time since January 1, 1988 and the dismissal
with prejudice of the pending actions and the resolution of all similar
claims on a nationwide basis. Under the terms of the settlement, which
involves approximately 127,000 former and current policyholders,
Equitable Life would pay $14.2 million in exchange for release of all
claims and will provide future relief to certain current policyholders
by restricting future premium increases, estimated to have a present
value of $23.3 million. This estimate is based upon assumptions about
future events that cannot be predicted with certainty and accordingly
the actual value of the future relief may vary. In October 1998, the
court entered a judgment approving the settlement agreement and, in
November, a member of the national class filed a notice of appeal of the
judgment. In January 1999, the Court of Appeals granted Equitable Life's
motion to dismiss the appeal.
Life Insurance and Annuity Sales Cases
A number of lawsuits are pending as individual claims and purported
class actions against Equitable Life and its subsidiary insurance
companies Equitable Variable Life Insurance Company ("EVLICO," which was
merged into Equitable Life effective January 1, 1997) and The Equitable
of Colorado, Inc. ("EOC"). These actions involve, among other things,
sales of life and annuity products for varying periods from 1980 to the
present, and allege, among other things, sales practice
misrepresentation primarily involving: the number of premium payments
required; the propriety of a product as an investment vehicle; the
propriety of a product as a replacement of an existing policy; and
failure to disclose a product as life insurance. Some actions are in
state courts and others are in U.S. District Courts in varying
jurisdictions, and are in varying stages of discovery and motions for
class certification.
F-32
<PAGE>
In general, the plaintiffs request an unspecified amount of damages,
punitive damages, enjoinment from the described practices, prohibition
against cancellation of policies for non-payment of premium or other
remedies, as well as attorneys' fees and expenses. Similar actions have
been filed against other life and health insurers and have resulted in
the award of substantial judgments, including material amounts of
punitive damages, or in substantial settlements. Although the outcome of
litigation cannot be predicted with certainty, particularly in the early
stages of an action, The Equitable's management believes that the
ultimate resolution of these cases should not have a material adverse
effect on the financial position of The Equitable. The Equitable'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
Equitable's results of operations in any particular period.
Discrimination Case
Equitable Life is a defendant in an action, certified as a class action
in September 1997, in the United States District Court for the Northern
District of Alabama, Southern Division, involving alleged discrimination
on the basis of race against African-American applicants and potential
applicants in hiring individuals as sales agents. Plaintiffs seek a
declaratory judgment and affirmative and negative injunctive relief,
including the payment of back-pay, pension and other compensation.
Although the outcome of litigation cannot be predicted with certainty,
The Equitable's management believes that the ultimate resolution of this
matter should not have a material adverse effect on the financial
position of The Equitable. The Equitable's management cannot make an
estimate of loss, if any, or predict whether or not such matter will
have a material adverse effect on The Equitable's results of operations
in any particular period.
Alliance Capital
In July 1995, a class action complaint was filed against 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 original complaint was dismissed
in 1996; on appeal, the dismissal was affirmed. In October 1996,
plaintiffs filed a motion for leave to file an amended complaint,
alleging the Fund failed to hedge against currency risk despite
representations that it would do so, the Fund did not properly disclose
that it planned to invest in mortgage-backed derivative securities and
two Fund advertisements misrepresented the risks of investing in the
Fund. In October 1998, the U.S. Court of Appeals for the Second Circuit
issued an order granting plaintiffs' motion to file an amended complaint
alleging that the Fund misrepresented its ability to hedge against
currency risk and denying plaintiffs' motion to file an amended
complaint containing the other allegations. Alliance believes that the
allegations in the amended complaint, which was filed in February 1999,
are without merit and intends to defend itself vigorously against these
claims. While the ultimate outcome of this matter cannot be determined
at this time, Alliance's management does not expect that it will have a
material adverse effect on Alliance's results of operations or financial
condition.
DLJSC
DLJSC is a defendant along with certain other parties in a class action
complaint involving the underwriting of units, consisting of notes and
warrants to purchase common shares, of Rickel Home Centers, Inc.
("Rickel"), which filed a voluntary petition for reorganization pursuant
to Chapter 11 of the Bankruptcy Code. The complaint seeks unspecified
compensatory and punitive damages from DLJSC, as an underwriter and as
an owner of 7.3% of the common stock, for alleged violation of Federal
securities laws and common law fraud for alleged misstatements and
omissions contained in the prospectus and registration statement used in
the offering of the units. DLJSC is defending itself vigorously against
all the allegations contained in the complaint. Although there can be no
assurance, DLJ's management does not believe that the ultimate outcome
of this litigation will have a material adverse effect on DLJ's
consolidated financial condition. Due to the early stage of this
litigation, based on the information currently available to it, DLJ's
management cannot predict whether or not such litigation will have a
material adverse effect on DLJ's results of operations in any particular
period.
F-33
<PAGE>
DLJSC is a defendant in a purported class action filed in a Texas State
Court on behalf of the holders of $550 million principal amount of
subordinated redeemable discount debentures of National Gypsum
Corporation ("NGC"). The debentures were canceled in connection with a
Chapter 11 plan of reorganization for NGC consummated in July 1993. The
litigation seeks compensatory and punitive damages for DLJSC's
activities as financial advisor to NGC in the course of NGC's Chapter 11
proceedings. Trial is expected in early May 1999. DLJSC intends to
defend itself vigorously against all the allegations contained in the
complaint. Although there can be no assurance, DLJ's management does not
believe that the ultimate outcome of this litigation will have a
material adverse effect on DLJ's consolidated financial condition. Based
upon the information currently available to it, DLJ's management cannot
predict whether or not such litigation will have a material adverse
effect on DLJ's results of operations in any particular period.
DLJSC is a defendant in a complaint which alleges that DLJSC and a
number of other financial institutions and several individual defendants
violated civil provisions of RICO by inducing plaintiffs to invest over
$40 million in The Securities Groups, a number of tax shelter limited
partnerships, during the years 1978 through 1982. The plaintiffs seek
recovery of the loss of their entire investment and an approximately
equivalent amount of tax-related damages. Judgment for damages under
RICO are subject to trebling. Discovery is complete. Trial has been
scheduled for May 17, 1999. DLJSC believes that it has meritorious
defenses to the complaints and will continue to contest the suits
vigorously. Although there can be no assurance, DLJ's management does
not believe that the ultimate outcome of this litigation will have a
material adverse effect on DLJ's consolidated financial condition. Based
upon the information currently available to it, DLJ's management cannot
predict whether or not such litigation will have a material adverse
effect on DLJ's results of operations in any particular period.
DLJSC is a defendant along with certain other parties in four actions
involving Mid-American Waste Systems, Inc. ("Mid-American"), which filed
a voluntary petition for reorganization pursuant to Chapter 11 of the
Bankruptcy Code in January 1997. Three actions seek rescission,
compensatory and punitive damages for DLJSC's role in underwriting notes
of Mid-American. The other action, filed by the Plan Administrator for
the bankruptcy estate of Mid-American, alleges that DLJSC is liable as
an underwriter for alleged misrepresentations and omissions in the
prospectus for the notes, and liable as financial advisor to
Mid-American for allegedly failing to advise Mid-American about its
financial condition. DLJSC believes that it has meritorious defenses to
the complaints and will continue to contest the suits vigorously.
Although there can be no assurance, DLJ's management does not believe
that the ultimate outcome of this litigation will have a material
adverse effect on DLJ's consolidated financial condition. Based upon
information currently available to it, DLJ's management cannot predict
whether or not such litigation will have a material adverse effect on
DLJ's results of operations in any particular period.
Other Matters
In addition to the matters described above, the Holding Company 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.
16) 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 1999 and the succeeding four years are $98.7 million, $92.7
million, $73.4 million, $59.9 million, $55.8 million and $550.1 million
thereafter. Minimum future sublease rental income on these noncancelable
leases for 1999 and the succeeding four years is $7.6 million, $5.6
million, $4.6 million, $2.3 million, $2.3 million and $25.4 million
thereafter.
F-34
<PAGE>
At December 31, 1998, the minimum future rental income on noncancelable
operating leases for wholly owned investments in real estate for 1999
and the succeeding four years is $189.2 million, $177.0 million, $165.5
million, $145.4 million, $122.8 million and $644.7 million thereafter.
17) OTHER OPERATING COSTS AND EXPENSES
Other operating costs and expenses consisted of the following:
<TABLE>
<CAPTION>
1998 1997 1996
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Compensation costs................................. $ 772.0 $ 721.5 $ 704.8
Commissions........................................ 478.1 409.6 329.5
Short-term debt interest expense................... 26.1 31.7 8.0
Long-term debt interest expense.................... 84.6 121.2 137.3
Amortization of policy acquisition costs........... 292.7 287.3 405.2
Capitalization of policy acquisition costs......... (609.1) (508.0) (391.9)
Rent expense, net of sublease income............... 100.0 101.8 113.7
Cursitor intangible assets writedown............... - 120.9 -
Other.............................................. 1,056.8 917.9 769.1
----------------- ---------------- -----------------
Total.............................................. $ 2,201.2 $ 2,203.9 $ 2,075.7
================= ================ =================
</TABLE>
During 1997 and 1996, the Company restructured certain operations in
connection with cost reduction programs and recorded pre-tax provisions
of $42.4 million and $24.4 million, respectively. The amounts paid
during 1998, associated with cost reduction programs, totaled $22.6
million. At December 31, 1998, the liabilities associated with cost
reduction programs amounted to $39.4 million. The 1997 cost reduction
program included costs related to employee termination and exit costs.
The 1996 cost reduction program included restructuring costs related to
the consolidation of insurance operations' service centers. Amortization
of DAC in 1996 included a $145.0 million writeoff of DAC related to DI
contracts.
18) 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 financial
condition of a stock life insurance company would support the payment of
dividends to its shareholders. For 1998, 1997 and 1996, statutory net
income (loss) totaled $384.4 million, $(351.7) million and $(351.1)
million, respectively. Statutory surplus, capital stock and Asset
Valuation Reserve ("AVR") totaled $4,728.0 million and $3,907.1 million
at December 31, 1998 and 1997, respectively. No dividends have been paid
by Equitable Life to the Holding Company to date.
At December 31, 1998, the Insurance Group, in accordance with various
government and state regulations, had $25.6 million of securities
deposited with such government or state agencies.
The differences between statutory surplus and capital stock determined
in accordance with Statutory Accounting Principles ("SAP") and total
shareholders' equity on a GAAP basis are primarily attributable to: (a)
inclusion in SAP of an AVR intended to stabilize surplus from
fluctuations in the value of the investment portfolio; (b) future policy
benefits and policyholders' account balances under SAP differ from GAAP
due to differences between actuarial assumptions and reserving
methodologies; (c) certain policy acquisition costs are expensed under
SAP but deferred under GAAP and amortized over future periods to achieve
a matching of revenues and expenses; (d) Federal income taxes are
generally accrued under SAP based upon revenues and expenses in the
Federal income tax return while under GAAP deferred taxes are provided
for timing differences between recognition of revenues and expenses for
financial reporting and income tax purposes; (e) valuation of assets
under SAP and GAAP differ due to different investment valuation and
depreciation methodologies, as well as the deferral of interest-related
realized capital gains and losses on fixed income investments; and (f)
differences in the accrual methodologies for post-employment and
retirement benefit plans.
F-35
<PAGE>
19) BUSINESS SEGMENT INFORMATION
The Company's operations consist of Insurance and Investment Services.
The Company's management evaluates the performance of each of these
segments independently and allocates resources based on current and
future requirements of each segment. Management evaluates the
performance of each segment based upon operating results adjusted to
exclude the effect of unusual or non-recurring events and transactions
and certain revenue and expense categories not related to the base
operations of the particular business net of minority interest.
Information for all periods is presented on a comparable basis.
Intersegment investment advisory and other fees of approximately $61.8
million, $84.1 million and $129.2 million for 1998, 1997 and 1996,
respectively, are included in total revenues of the Investment Services
segment. These fees, excluding amounts related to discontinued
operations of $.5 million, $4.2 million and $13.3 million for 1998, 1997
and 1996, respectively, are eliminated in consolidation.
The following tables reconcile each segment's revenues and operating
earnings to total revenues and earnings from continuing operations
before Federal income taxes and cumulative effect of accounting change
as reported on the consolidated statements of earnings and the segments'
assets to total assets on the consolidated balance sheets, respectively.
<TABLE>
<CAPTION>
Investment
Insurance Services Elimination Total
--------------- ----------------- --------------- ----------------
(In Millions)
<S> <C> <C> <C> <C>
1998
Segment revenues..................... $ 4,029.8 $ 1,438.4 $ (5.7) $ 5,462.5
Investment gains..................... 64.8 35.4 - 100.2
--------------- ----------------- --------------- ----------------
Total Revenues....................... $ 4,094.6 $ 1,473.8 $ (5.7) $ 5,562.7
=============== ================= =============== ================
Pre-tax operating earnings........... $ 688.6 $ 284.3 $ - $ 972.9
Investment gains , net of
DAC and other charges.............. 41.7 27.7 - 69.4
Pre-tax minority interest............ - 141.5 - 141.5
--------------- ----------------- --------------- ----------------
Earnings from Continuing
Operations......................... $ 730.3 $ 453.5 $ - $ 1,183.8
=============== ================= =============== ================
Total Assets......................... $ 75,626.0 $ 12,379.2 $ (64.4) $ 87,940.8
=============== ================= =============== ================
1997
Segment revenues..................... $ 3,990.8 $ 1,200.0 $ (7.7) $ 5,183.1
Investment gains (losses)............ (318.8) 255.1 - (63.7)
--------------- ----------------- --------------- ----------------
Total Revenues....................... $ 3,672.0 $ 1,455.1 $ (7.7) $ 5,119.4
=============== ================= =============== ================
Pre-tax operating earnings........... $ 507.0 $ 258.3 $ - $ 765.3
Investment gains (losses), net of
DAC and other charges.............. (292.5) 252.7 - (39.8)
Non-recurring costs and expenses..... (41.7) (121.6) - (163.3)
Pre-tax minority interest............ - 108.5 - 108.5
--------------- ----------------- --------------- ----------------
Earnings from Continuing
Operations......................... $ 172.8 $ 497.9 $ - $ 670.7
=============== ================= =============== ================
Total Assets......................... $ 67,762.4 $ 13,691.4 $ (96.1) $ 81,357.7
=============== ================= =============== ================
</TABLE>
F-36
<PAGE>
<TABLE>
<CAPTION>
Investment
Insurance Services Elimination Total
--------------- ----------------- --------------- ----------------
(In Millions)
<S> <C> <C> <C> <C>
1996
Segment revenues..................... $ 3,789.1 $ 1,105.5 $ (12.6) $ 4,882.0
Investment gains (losses)............ (30.3) 20.5 - (9.8)
--------------- ----------------- --------------- ----------------
Total Revenues....................... $ 3,758.8 $ 1,126.0 $ (12.6) $ 4,872.2
=============== ================= =============== ================
Pre-tax operating earnings........... $ 337.1 $ 224.6 $ - $ 561.7
Investment gains (losses), net of
DAC and other charges.............. (37.2) 16.9 - (20.3)
Reserve strengthening and DAC
writeoff........................... (393.0) - - (393.0)
Non-recurring costs and
expenses........................... (22.3) (1.1) - (23.4)
Pre-tax minority interest............ - 83.6 - 83.6
--------------- ----------------- --------------- ----------------
Earnings (Loss) from
Continuing Operations.............. $ (115.4) $ 324.0 $ - $ 208.6
=============== ================= =============== ================
</TABLE>
20) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The quarterly results of operations for 1998 and 1997 are summarized
below:
<TABLE>
<CAPTION>
Three Months Ended
------------------------------------------------------------------------------
March 31 June 30 September 30 December 31
----------------- ----------------- ------------------ ------------------
(In Millions)
<S> <C> <C> <C> <C>
1998
Total Revenues................ $ 1,470.2 $ 1,422.9 $ 1,297.6 $ 1,372.0
================= ================= ================== ==================
Earnings from Continuing
Operations before
Cumulative Effect
of Accounting Change........ $ 212.8 $ 197.0 $ 136.8 $ 158.9
================= ================= ================== ==================
Net Earnings.................. $ 213.3 $ 198.3 $ 137.5 $ 159.1
================= ================= ================== ==================
1997
Total Revenues................ $ 1,266.0 $ 1,552.8 $ 1,279.0 $ 1,021.6
================= ================= ================== ==================
Earnings from Continuing
Operations before
Cumulative Effect
of Accounting Change........ $ 117.4 $ 222.5 $ 145.1 $ 39.4
================= ================= ================== ==================
Net Earnings (Loss)........... $ 114.1 $ 223.1 $ 144.9 $ (44.9)
================= ================= ================== ==================
</TABLE>
Net earnings for the three months ended December 31, 1997 includes a
charge of $212.0 million related to additions to valuation allowances on
and writeoffs of real estate of $225.2 million, and reserve
strengthening on discontinued operations of $84.3 million offset by a
reversal of prior years tax reserves of $97.5 million.
F-37
<PAGE>
21) INVESTMENT IN DLJ
At December 31, 1998, the Company's ownership of DLJ interest was
approximately 32.5%. 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.
Summarized balance sheets information for DLJ, reconciled to the
Company's carrying value of DLJ, are as follows:
<TABLE>
<CAPTION>
December 31,
------------------------------------
1998 1997
---------------- -----------------
(In Millions)
<S> <C> <C>
Assets:
Trading account securities, at market value............................ $ 13,195.1 $ 16,535.7
Securities purchased under resale agreements........................... 20,063.3 22,628.8
Broker-dealer related receivables...................................... 34,264.5 28,159.3
Other assets........................................................... 4,759.3 3,182.0
---------------- -----------------
Total Assets........................................................... $ 72,282.2 $ 70,505.8
================ =================
Liabilities:
Securities sold under repurchase agreements............................ $ 35,775.6 $ 36,006.7
Broker-dealer related payables......................................... 26,161.5 26,127.2
Short-term and long-term debt.......................................... 3,997.6 3,249.5
Other liabilities...................................................... 3,219.8 2,860.9
---------------- -----------------
Total liabilities...................................................... 69,154.5 68,244.3
DLJ's company-obligated mandatorily redeemed preferred
securities of subsidiary trust holding solely debentures of DLJ...... 200.0 200.0
Total shareholders' equity............................................. 2,927.7 2,061.5
---------------- -----------------
Total Liabilities, Cumulative Exchangeable Preferred Stock and
Shareholders' Equity................................................. $ 72,282.2 $ 70,505.8
================ =================
DLJ's equity as reported............................................... $ 2,927.7 $ 2,061.5
Unamortized cost in excess of net assets acquired in 1985
and other adjustments................................................ 23.7 23.5
The Holding Company's equity ownership in DLJ.......................... (1,002.4) (740.2)
Minority interest in DLJ............................................... (1,118.2) (729.3)
---------------- -----------------
The Company's Carrying Value of DLJ.................................... $ 830.8 $ 615.5
================ =================
</TABLE>
F-38
<PAGE>
Summarized statements of earnings information for DLJ reconciled to the
Company's equity in earnings of DLJ is as follows:
<TABLE>
<CAPTION>
1998 1997
---------------- -----------------
(In Millions)
<S> <C> <C>
Commission, fees and other income...................................... $ 3,184.7 $ 2,430.7
Net investment income.................................................. 2,189.1 1,652.1
Dealer, trading and investment gains, net.............................. 33.2 557.7
---------------- -----------------
Total revenues......................................................... 5,407.0 4,640.5
Total expenses including income taxes.................................. 5,036.2 4,232.2
---------------- -----------------
Net earnings........................................................... 370.8 408.3
Dividends on preferred stock........................................... 21.3 12.2
---------------- -----------------
Earnings Applicable to Common Shares................................... $ 349.5 $ 396.1
================ =================
DLJ's earnings applicable to common shares as reported................. $ 349.5 $ 396.1
Amortization of cost in excess of net assets acquired in 1985.......... (.8) (1.3)
The Holding Company's equity in DLJ's earnings......................... (136.8) (156.8)
Minority interest in DLJ............................................... (99.5) (109.1)
---------------- -----------------
The Company's Equity in DLJ's Earnings................................. $ 112.4 $ 128.9
================ =================
</TABLE>
22) 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 has elected to continue to
account for stock-based compensation using the intrinsic value method
prescribed in APB No. 25. Had compensation expense for the Holding
Company, DLJ and Alliance Stock Option Incentive Plan options been
determined based on SFAS No. 123's fair value based method, the
Company's pro forma net earnings for 1998, 1997 and 1996 would have
been:
<TABLE>
<CAPTION>
1998 1997 1996
--------------- --------------- ---------------
(In Millions)
<S> <C> <C> <C>
Net Earnings:
As reported............................................. $ 708.2 $ 437.2 $ 10.3
Pro forma............................................... 678.4 426.3 3.3
</TABLE>
The fair values of options granted after December 31, 1994, used as a
basis for the above pro forma disclosures, were estimated as of the
dates of grant using the Black-Scholes option pricing model. The option
pricing assumptions for 1998, 1997 and 1996 are as follows:
<TABLE>
<CAPTION>
Holding Company DLJ Alliance
------------------------------ ------------------------------- ----------------------------------
1998 1997 1996 1998 1997 1996 1998 1997 1996
--------- ---------- --------- ---------- -------------------- ---------------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dividend yield...... 0.32% 0.48% 0.80% 0.69% 0.86% 1.54% 6.50% 8.00% 8.00%
Expected volatility. 28% 20% 20% 40% 33% 25% 29% 26% 23%
Risk-free interest
rate.............. 5.48% 5.99% 5.92% 5.53% 5.96% 6.07% 4.40% 5.70% 5.80%
Expected life
in years.......... 5 5 5 5 5 5 7.2 7.2 7.4
Weighted average
fair value per
option at
grant-date........ $22.64 $12.25 $6.94 $16.27 $10.81 $4.03 $3.86 $2.18 $1.35
</TABLE>
F-39
<PAGE>
A summary of the Holding Company, DLJ and Alliance's option plans is as
follows:
<TABLE>
<CAPTION>
Holding Company DLJ Alliance
----------------------------- ----------------------------- -----------------------------
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Price of Price of Price of
Shares Options Shares Options Units Options
(In Millions) Outstanding (In Millions) Outstanding (In Millions) Outstanding
--------------- ------------- --------------- ------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance as of
January 1, 1996........ 6.7 $20.27 18.4 $13.50 9.6 $ 8.86
Granted................ .7 $24.94 4.2 $16.27 1.4 $12.56
Exercised.............. (.1) $19.91 - (.8) $ 6.82
Expired................ - - -
Forfeited.............. (.6) $20.21 (.4) $13.50 (.2) $ 9.66
--------------- ------------- ---------------
Balance as of
December 31, 1996...... 6.7 $20.79 22.2 $14.03 10.0 $ 9.54
Granted................ 3.2 $41.85 6.4 $30.54 2.2 $18.28
Exercised.............. (1.6) $20.26 (.2) $16.01 (1.2) $ 8.06
Forfeited.............. (.4) $23.43 (.2) $13.79 (.4) $10.64
--------------- ------------- ---------------
Balance as of
December 31, 1997...... 7.9 $29.05 28.2 $17.78 10.6 $11.41
Granted................ 4.3 $66.26 1.5 $38.59 2.8 $26.28
Exercised.............. (1.1) $21.18 (1.4) $14.91 (.9) $ 8.91
Forfeited.............. (.4) $47.01 (.1) $17.31 (.2) $13.14
--------------- ------------- ---------------
Balance as of
December 31, 1998...... 10.7 $44.00 28.2 $19.04 12.3 $14.94
=============== ============= ===============
</TABLE>
F-40
<PAGE>
Information about options outstanding and exercisable at December 31,
1998 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
--------------------------------------- ----------------- ---------------- ------------------- ---------------
Holding
Company
----------------------
<S> <C> <C> <C> <C> <C>
$18.125 -$27.75 3.7 5.19 $20.97 3.0 $20.33
$28.50 -$45.25 3.0 8.68 $41.79 -
$50.63 -$66.75 2.1 9.21 $52.73 -
$81.94 -$82.56 1.9 9.62 $82.56 -
----------------- -------------------
$18.125 -$82.56 10.7 7.75 $44.00 3.0 $20.33
================= ================= ================ ==================== ==============
DLJ
----------------------
$13.50 -$25.99 22.3 7.1 $14.59 21.4 $15.05
$26.00 -$38.99 5.0 8.8 $33.94 -
$39.00 -$52.875 .9 9.4 $44.65 -
----------------- -------------------
$13.50 -$52.875 28.2 7.5 $19.04 21.4 $15.05
================= ================== ============== ===================== =============
Alliance
----------------------
$ 3.03 -$ 9.69 3.1 4.5 $ 8.03 2.4 $ 7.57
$ 9.81 -$10.69 2.0 5.3 $10.05 1.6 $10.07
$11.13 -$13.75 2.4 7.5 $11.92 1.0 $11.77
$18.47 -$18.78 2.0 9.0 $18.48 .4 $18.48
$22.50 -$26.31 2.8 9.9 $26.28 - -
----------------- -------------------
$ 3.03 -$26.31 12.3 7.2 $14.94 5.4 $ 9.88
================= =================== ============= ===================== =============
</TABLE>
F-41
<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 - PricewaterhouseCoopers LLP;
- Statements of Assets and Liabilities for the Year Ended
December 31, 1998;
- Statements of Operations for the Year Ended December 31, 1998;
- Statements of Changes in Net Assets for the Years Ended
December 31, 1998 and 1997;
- Notes to Financial Statements;
2. The Equitable Life Assurance Society of the United States:
- Report of Independent Accountants - PricewaterhouseCoopers LLP;
- Consolidated Balance Sheets as of December 31, 1998 and 1997;
- Consolidated Statements of Earnings for Years Ended
December 31, 1998, 1997 and 1996;
- Consolidated Statements of Equity for Years Ended
December 31, 1998, 1997 and 1996;
- Consolidated Statements of Cash Flows for Years Ended
December 31, 1998, 1997 and 1996; 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.
C-1
<PAGE>
3. (a) Sales Agreement, dated as of July 22, 1992, among
Equitable, Separate Account A and Equitable Variable
Life Insurance Company, as principal underwriter for the
Hudson River Trust, incorporated herein by reference to
Exhibit 3(b) to Registration Statement File No. 2-30070,
filed electronically on July 10, 1998.
(b) Distribution and Servicing Agreement among Equico
Securities, Inc., (now EQ Financial Consultants, Inc.),
Equitable and Equitable Variable Life Insurance Company,
dated as of May 1, 1994 incorporated herein by reference
to Exhibit 3(c) to Registration Statement 2-30070
refiled electronically on July 10, 1998.
(c) Distribution Agreement by and between The Hudson River
Trust and Equico Securities, Inc. (now EQ Financial
Consultants, Inc.), dated as of January 1, 1995,
incorporated herein by reference to Exhibit 3(d) to
Registration Statement No. 2-30070, refiled
electronically on July 10, 1998.
(d) Sales Agreement among Equico Securities, Inc. (now EQ
Financial Consultants, Inc.), Equitable and Equitable's
Separate Account A, Separate Account 301 and Separate
Account No. 51 dated as of January 1, 1995, incorporated
by reference to Exhibit 3(e) to Registration Statement
No. 2-30070 refiled electronically on July 10, 1998.
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, refiled electronically on
August 19, 1998.
(a)(1) Form of Variation of Exhibit 4(a) for use in connection
with the Ohio Alternative Retirement Program, previously
filed with this Registration Statement File No. 33-58950
on November 25, 1998.
(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, refiled electronically
on August 19, 1998.
(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, refiled
electronically on August 19, 1998.
(a) Form of Variation of Exhibit 5 for use in connection
with Ohio Alternative Retirement Program, previously
filed with this Registration Statement, File No.
33-58950 on November 25, 1998.
6. (a) By-Laws of Equitable, as amended November 21, 1996,
previously filed with this Registration Statement on
Form N-4 (File No. 33-58950 on May 1, 1997.
(b) Copy of the Restated Charter of Equitable, as amended
January 1, 1997, previously filed with this Registration
Statement on Form N-4 (File No. 33-58950 on May 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, refiled electronically on August 19, 1998.
10. (a) Consent of PricewaterhouseCoopers LLP.
(b) Powers of Attorney
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, refiled
electronically on August 19, 1998.
(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,
refiled electronically on August 19, 1998.
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 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
Francoise Colloc'h Director
AXA
23, Avenue Matignon
75008 Paris, France
Henri de Castries Director
AXA
23, Avenue Matignon
75008 Paris, France
Joseph L. Dionne Director
The McGraw-Hill Companies
1221 Avenue of the Americas
New York, NY 10020
Denis Duverne Director
AXA
23, Avenue Matignon
75008 Paris, France
Jean-Rene Fourtou Director
Rhone-Poulenc S.A.
25 Quai Paul Doumer
92408 Courbevoie Cedex,
France
Norman C. Francis Director
Xavier University of Louisiana
7325 Palmetto Street
New Orleans, LA 70125
C-4
<PAGE>
POSITIONS AND
NAME AND PRINCIPAL OFFICES WITH
BUSINESS ADDRESS EQUITABLE
- ---------------- ---------
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
Warburg Dillion Read LLC
535 Madison Avenue
New York, NY 10028
Mary R. (Nina) Henderson Director
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
George T. Lowy Director
Cravath, Swaine & Moore
825 Eighth Avenue
New York, NY 10019
C-5
<PAGE>
POSITIONS AND
NAME AND PRINCIPAL OFFICES WITH
BUSINESS ADDRESS EQUITABLE
- ---------------- ---------
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
Peter J. Tobin Director
St. John's University
8,000 Utopia Parkway
Jamaica, NY 11439
Dave H. Williams Director
Alliance Capital Management Corporation
1345 Avenue of the Americas
New York, NY 10105
OFFICER-DIRECTORS
- -----------------
*Michael Hegarty President, Chief Operating
Officer and Director
*Edward D. Miller Chairman of the Board,
Chief Executive Officer
and Director
* Stanley B. Tulin Vice Chairman of the Board,
Chief Financial Officer and Director
OTHER OFFICERS
- --------------
*Leon Billis Executive Vice President
and Chief Information Officer
*Harvey Blitz Senior Vice President
*Kevin R. Byrne Senior Vice President and Treasurer
*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
*Jerome S. Golden Executive Vice President
James D. Goodwin Vice President
*Edward J. Hayes Senior Vice President
*Mark A. Hug Senior Vice President
*Donald R. Kaplan Vice President and Chief Compliance
Officer and Associate General
Counsel
*Michael S. Martin Executive Vice President and Chief
Marketing Officer
*Douglas Menkes Senior Vice President and
Corporate Actuary
*Peter D. Noris Executive Vice President and Chief
Investment Officer
*Anthony C. Pasquale Senior Vice President
*Pauline Sherman Senior 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 Senior Executive Vice President and
Chief Distribution Officer
*Naomi Weinstein Vice President
*Maureen K. Wolfson Vice President
C-7
<PAGE>
Item 26. Persons Controlled by or Under Common Control with the Insurance
Company or Registrant.
Separate Account No. A of The Equitable Life Assurance Society of the
United States (the "Separate Account") is a separate account of Equitable.
Equitable, a New York stock life insurance company, is a wholly owned subsidiary
of The Equitable Companies Incorporated (the "Holding Company"), a publicly
traded company.
The largest stockholder of the Holding Company is AXA which as of March
31, 1999 beneficially owned 58.3% of the Holding Company's outstanding common
stock. AXA is able to exercise significant influence over the operations and
capital structure of the Holding Company and its subsidiaries, including
Equitable. AXA, a French company, is the holding company for an international
group of insurance and related financial services companies.
C-8
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
The Equitable Companies Incorporated (l991) (Delaware)
Donaldson, Lufkin & Jenrette, Inc. (1993) (Delaware) (41.8%) (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)
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. (2.7% limited partnership
interest)
ACMC, Inc. (1991) (Delaware)(s)
Alliance Capital Management L.P. (1988) (Delaware)
(39.3% 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)
Equitable BJVS, Inc. (1992) (California)
Equitable Rowes Wharf, Inc. (1995) (Massachusetts)
Camelback JVS, Inc. (1995) (Arizona)
ELAS Realty, Inc. (1996) (Delaware)
100 Federal Street Realty Corporation (Massachusetts)
Equitable Structured Settlement Corporation (1996) (Delaware)
Prime Property Funding II, Inc. (1997) (Delaware)
Sarasota Prime Hotels, Inc. (1997) (Florida)
ECLL, Inc. (1997) (Michigan)
Equitable Holdings LLC (1997) (New York) (into which Equitable Holding
Corporation was merged in 1997)
EQ Financial Consultants, Inc. (l97l) (Delaware) (a) (b)
ELAS Securities Acquisition Corp. (l980) (Delaware)
100 Federal Street Funding Corporation (Massachusetts)
EquiSource of New York, Inc. (1986) (New York) (See
Addendum A for subsidiaries)
Equitable Casualty Insurance Company (l986) (Vermont)
EREIM LP Corp. (1986) (Delaware)
EREIM LP Associates (1%)
EML Associates (.02%)
Six-Pac G.P., Inc. (1990) (Georgia)
Equitable Distributors, Inc. (1988) (Delaware) (a)
(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 Holdings, LLC (cont.)
Equitable JVS, Inc. (1988) (Delaware)
Astor/Broadway Acquisition Corp. (1990) (New York)
Astor Times Square Corp. (1990) (New York)
PC Landmark, Inc. (1990) (Texas)
Equitable JVS II, Inc. (1994) (Maryland)
EJSVS, Inc. (1995) (New Jersey)
Donaldson, Lufkin & Jenrette, Inc. (1985 by EIC; 1993 by EQ and
EHC) (Delaware) (34.4%) (See Addendum B(1) for
subsidiaries)
JMR Realty Services, Inc. (1994) (Delaware)
Equitable Investment Corporation (l97l) (New York)
Stelas North Carolina Limited Partnership (50% limited
partnership interest) (l984)
Equitable JV Holding Corporation (1989) (Delaware)
Alliance Capital Management Corporation (l991) (Delaware) (b)
(See Addendum B(2) for subsidiaries)
Equitable Capital Management Corporation (l985)
(Delaware) (b)
Alliance Capital Management L.P. (1988)
(Delaware) (14.8% limited partnership interest)
EQ Services, Inc. (1992) (Delaware)
EREIM Managers Corp. (1986) (Delaware)
ML/EQ Real Estate Portfolio, L.P.
EML Associates, L.P.
(a) Registered Broker/Dealer (b) Registered Investment
Advisor
C-11
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM A - SUBSIDIARY
OF EQUITABLE HOLDINGS, LLC
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 of Puerto Rico, Inc. (1997) (Puerto Rico)
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>
AXA GROUP CHART
The information listed below is dated as of January 1, 1999; percentages
shown represent voting power. The name of the owner is noted when AXA
indirectly controls the company.
AXA INSURANCE AND REINSURANCE BUSINESS HOLDING
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Assurances IARD France 100% by AXA France Assurance
AXA Assurances Vie France 88.1% by AXA France Assurance
and 11.9% by AXA Collectives
AXA Courtage IARD France 100% by AXA France Assurance
and AXA Global Risks
AXA Conseil Vie France 100% by AXA France Assurance
AXA Conseil IARD France 100% by AXA France Assurance
AXA Direct France 100% by AXA
Direct Assurances IARD France 100% by AXA Direct
Direct Assurances Vie France 100% by AXA Direct
Tellit Vie Germany 100% by AKA-CKAG
Axiva France 100% by AXA France Assurance
and AXA Conseil Vie
Juridica France 100% by AXA France Assurance
AXA Assistance France France 100% by AXA Assistance SA
AXA Collectives France AXA France Assurance, AXA
Assurances IARD and AXA
Courtage IARD Mutuelle
Societe Beaujon France 100% by AXA
Lor Finance France 99.3% by AXA
Jour Finance France 100% by AXA Conseil and
by AXA Assurances IARD
Financiere 45 France 99.8% by AXA
Mofipar France 99.9% by AXA
NSM Vie France 40.1% by AXA France Assurance
Saint Georges Re France 100% by France Assurance
AXA Global Risks France 100% owned by AXA France
Assurance, AXA Courtage
Assurance Mutuelle, and AXA
Assurances IARD Mutuelle
Argovie France 94% by Axiva
AXA Assistance SA France 76.8% by AXA and 23.2% by AXA
France Assurance
S.P.S. Reassurance France 69.9% by AXA Reassurance
AXA Participations France 50% by AXA, 25% by AXA Global
Risks and 25% by AXA Courtage
IARD
Colisee Excellence France 100% by Financiere Mermoz
Financiere Mermoz France 100% by AXA
C-14
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Assistance SA France 76.8% by AXA and 23.2% by AXA
France Assurance
S.P.S. Reassurance France 69.9% by AXA Reassurance
AXA Participations France 50% by AXA, 25% by AXA Global
Risks and 25% by AXA Courtage
IARD
Colisee Excellence France 100% by Financiere Mermoz
Financiere Mermoz France 100% by AXA
AXA France Assurance France 100% by AXA
Thema Vie France 99.6% by Axiva
AXA-Colonia Konzern AG (AXA-
CKAG) Germany 39.7% by Vinci BV, 25.6% by
Kolnische Verwaltungs and
9.4% by AXA
Finaxa Belgium Belgium 100% by AXA
AXA Belgium Belgium 86.1% by Royale Belge and 13.9%
by Parcolvi
De Kortrijske Verzekering Belgium 99.8% by AXA Belgium
Juris Belgium 100% owned by AXA Belgium
Royale Belge Belgium 51.2% by AXA Holdings Belgium,
44.5% by AXA and 3.2% by AKA
Global Risks
Royale Belge 1994 Belgium 97.8% by Royale Belge and 2%
by UAB
UAB Belgium 100% by Royale Belge
Ardenne Prevoyante Belgium 99.4% by Royale Belge
GB Lex Belgium 55% by Royale Belge, 25% by
Royale Belge 1994, 10% by
Juridica and 10% by AXA
Conseil IARD
Royale Belge Re Belgium 100% by Royale Belge
Parcolvi Belgium 100% by Vinci Belgium Holding
BV
Vinci Belgium Belgium 99.5% by Vinci BV
Finaxa Luxembourg Luxembourg 100%
AXA Assurance IARD Luxembourg Luxembourg 100% by AXA Holding Luxembourg
AXA Assurance Vie Luxembourg Luxembourg 100% by AXA Holding Luxembourg
Royale UAP Luxembourg 100% by AXA Holding Luxembourg
Paneurolife Luxembourg 90% by different companies of
the AXA Group
Paneurore Luxembourg 100% by different companies of
the AXA Group
Crealux Luxembourg 100% by Royale Belge
Futur Re Luxembourg 100% by AXA Global Risks
AXA Holding Luxembourg Luxembourg 100% by Royale Belge
AXA Aurora Spain 30% owned by AXA and 40%
by AXA Participations
Reaseguros Aurora Vida SA de Spain 97% owned by Aurora Iberica SA
Seguros y Reaseguros de Seguros y Reaseguros and
1.5% by AXA
Hilo Direct Seguros y Reaseguros Spain 71.4% by AXA Aurora
Ayuda Legal Spain 88% by AXA Aurora Iberica SA de
Seguros y Reaseguros and 12% by
Aurora Vida
AXA Aurora Iberica SA de Spain 99.8% by AXA Aurora
Seguros y Reaseguros
AXA Assicurazioni Italy 83.7% owned by AXA, 12% by
Grupo UAP Italiana, 2.2% by
AXA Conseil Vie and 2.1%
by AXA Collectives
Eurovita Italy 30% owned by AXA Assicurazioni,
19% by AXA Conseil Vie and 19%
by AXA Collectives
Gruppo UAP Italia (GUI) Italy 97% by AXA Participations and
3% by AXA Collectives
UAP Vita Italy 62% by AXA
Allsecures Vita Italy 100% by AXA
AXA Equity & Law Plc U.K. 99.9% by AXA
AXA Equity & Law Life U.K. 100% by Sun Life Holdings Plc
Assurance Society
Sun Life lle de Man U.K. 100% owned by Sun Life
Assurance
AXA Global Risks U.K. 51% owned by AXA Global
Risks (France) and 49% by
AXA Courtage IARD
Sun Life and Provincial U.K. 71.6% by AXA and AXA
Holdings (SLPH) Equity & Law Plc
Sun Life Corporation Plc U.K. 100% by AXA Sun Life Holdings
Plc
Sun Life Assurance Society Plc U.K. 100% by AXA Sun Life Holdings
Plc
AXA Provincial Insurance U.K. 100% by SLPH
English & Scottish U.K. 100% by AXA UK
AXA UK U.K. 100% by AXA
Servco U.K. 100% by AXA Sun Life Holdings
Plc
AXA Sun Life Plc U.K. 100% by AXA Sun Life Holdings
Plc
AXA Leven The Nether- 100% by Nieuw Rotterdam
lands Verzekeringen
AXA Nederland BV The Nether- 55.4% by Royale Belge and 38.9%
lands by Gelderland BV
UNIROBE Groep BV The Nether- 100% by UAP Nieuw Rotterdam
lands Holding
AXA Levensverzekeringen The Nether- 100% by UAP Nieuw Rotterdam
lands Verzekeringen
AXA Schade The Nether- 100% by UAP Nieuw Rotterdam
lands Verzekeringen
Societe Generale d'Assistance The Nether- 100% by AXA Assistance Holding
lands
Gelderland BV The Nether- 100% by Royale Belge
lands
AXA Zorg The Nether- 100% by UAP Nieuw Rotterdam
lands Verzekeringen
Vinci BV The Nether- 100% by AXA
lands
AXA Portugal Companhia de Portugal 96.2% by different companies
Serguros SA of the AXA Group
AXA Portugal Companhia de Portugal 87.6% by AXA Conseil Vie and
Serguros de Vida SA 7.5% by AXA Participations
AXA Compagnie d' Assurances Switzerland 100% by AXA Participations
AXA Compagnie d' Assurances Switzerland 95% by AXA Participations
sur la Vie
AXA Al Amane Assurances Morocco 52% by AXA Participations and
15% by Empargne Croissance
AXA Canada Inc. Canada 100% by AXA
Empargne Croissance Morocco 99.3% by AXA Al Amane
Assurances
Colonia Nordstern Leben Germany 50% by AXA-CKAG and 50% by
Colonia Nordstern Versicherungs
Kolnische Verwaltungs Germany 67.7% by Vinci BV, 23% by AXA
Colonia Konzern AG and 8.8% by
AXA
Sicher Direkt Versicherung Germany 50% by AXA Direct and 50% by
AXA-CKAG
AXA Colonia Krankenversicherung Germany 51% by AXA-CKAG, 39.6% by AXA
Colonia Lebenversicherung and
12% by Deutsche
Arzleversicherung
Colonia Nordstern Versicherungs Germany 100% by AXA-CKAG
C-15
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA non life Insurance Cy. Ltd. Japan 100% by AXA Direct
AXA Life Insurance Japan 100% by AXA
Dongbu AXA Life Korea 50% by AXA
Insurance Co. Ltd.
Sime AXA Berhad Malaysia 30% owned by AXA and
AXA Reassurance
AXA Insurance Investment Singapore 88.7% by AXA and 11.41% by AXA
Holdings Pte Ltd Courtage IARD
AXA Life Insurance Singapore 100% owned by AXA
AXA Insurance Hong Kong 82.5% owned by AXA Investment
Holdings Pte Ltd and 17.5%
by AXA
National Mutual Asia Ltd Hong Kong 53.8% by National Mutual
Holdings, Ltd and 20% by Detura
The Equitable Companies U.S.A. 43% by AXA, Financiere 45
Incorporated 3.2%, Lorfinance 6.4%, AXA
Equity & Law Life Association
Society 4.1% and AXA
Reassurance 2.9% and 0.4% by
Societe Beaujon
The Equitable Life Assurance U.S.A. 100% owned by The Equitable
Society of the United States Companies Incorporated
(ELAS)
National Mutual Holdings Ltd Australia 42.1% by AXA and 8.9% by
AXA Equity & Law Life
Assurance Society
The National Mutual Life Australia 100% owned by National Mutual
Association of Australasia Holdings Ltd
National Mutual International Australia 100% owned by National Mutual
Holdings Ltd
Australian Casualty & Life Ltd Australia 100% owned by National Mutual
Holdings Ltd
National Mutual Health Australia 100% owned by National Mutual
Insurance Pty Ltd Holdings Ltd
Detura Hong Kong 75% by National Mutual Holdings
AXA Insurance Pte Ltd Singapore 100% by AXA Insurance
Investment Holdings Pte Ltd
AXA Reinsurance Asia Pte Ltd Singapore 100% by AXA Reassurance
C-16
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Reassurance France 100% owned by AXA, AXA
Assurances IARD and AXA Global
Risks
AXA Re Finance France 79% owned by AXA Reassurance
AXA Cessions France 100% by AXA
AXA Reinsurance U.K. Plc U.K. 100% owned by AXA Re U.K.
Holding
AXA Re U.K. Company Limited U.K. 100% owned by AXA Reassurance
AXA Reinsurance Company U.S.A. 100% owned by AXA America
AXA America U.S.A. 100% owned by AXA Reassurance
AXA Gobal Risks US U.S.A. 96.4% by AXA Global Risks and
3.6% by Colonia Nordstern
Versicherungs AG
AXA Re Life Insurance Company U.S.A. 100% owned by AXA America
C.G.R.M. Monaco 100% owned by AXA Reassurance
Nordstern Colonia Osterreich Austria 88.5% by Colonia Nordstern
Versicherungs and 11.5% by
Colonia Nordstern Leben
Royale Belge International Belgium 100% by Royale Belge
Investissement
AXA Holding Belgium Belgium 75% by AXA, 17.7% by AXA Global
Risks and 7.4% by Various
Companies of the Group
Assurances de la Poste Belgium 50% by Royale Belge
Assurances de la Poste Vie Belgium 50% by Royale Belge
AXA Asset Management LTD U.K. 91% by AXA Investment Managers
and 9% by National Mutual
Funds Management
AXA Sun Life Holdings Plc U.K. 100% by SLPH
C-17
<PAGE>
AXA FINANCIAL BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Compagnie Financiere de Paris France 100% AXA and the Mutuelles
(C.F.P.)
AXA Banque France 98.7% owned by Compagnie
Financiere de Paris
AXA Credit France 65% owned by Compagnie
Financiere de Paris
AXA Gestion FCP France 100% owned by AXA Investment
Managers Paris
Sofapi France 100% owned by Compagnie
Financiere de Paris
Soffim Holding France 100% owned by Compagnie
Financiere de Paris
Sofinad France 100% by Compagnie
Financiere de Paris
Banque des Tuileries France 100% by Compagnie
Financiere de Paris
Banque de marches et d'arbitrage France 18.5% by AXA and 8.2% by AXA
Courtage IARD
AXA Investment Managers France 100% by various companies
AXA Investment Managers Paris France 100% owned by AXA Investment
Managers
Colonia Bausbykasse Germany 66.7% by AXA-CKAG and 31.1% by
Colonia Nordstern Leben
Banque IPPA Belgium 99.9% by Royale Belge
Royal Belge Investissement Belgium 100% by Royale Belge
ANHYP Belgium 98.8% by Royale Belge
AXA Sun Life Asset Management U.K. 66.7% owned by SLPH and 33.3%
by AXA Asset Management Ltd.
C-18
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Alliance Capital Management U.S.A. 57.7% held by ELAS
Donaldson Lufkin & Jenrette U.S.A. 70.9% owned by Equitable
Holdings Corp. and ELAS
National Mutual Funds Australia 100% owned by National
Management (Global) Ltd Mutual Holdings Ltd
C-19
<PAGE>
AXA REAL ESTATE BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
S.G.C.I. France 100% by AXA
Transaxim France 100% owned by Compagnie
Parisienne de Participations
Compagnie Parisienne de France 100% owned by Sofinad
Participations (C.P.P.)
Monte Scopeto France 100% owned by Compagnie
Parisienne de Participations
Colisee Jeuneurs France 99.9% by Colisee Suresnes
Colisee Delcasse France 100% by Colisee Suresnes
Colisee Victoire France 99.7% by S.G.C.I.
Colisee Suresnes France 100% by Various Companies and
the Mutuelles
Colisee 21 Matignon France 99.4% by S.G.C.I. and 0.6% by
AXA
C-20
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Colisee Saint Georges France 100% by SGCI
AXA Millesimes France 92.9% owned by AXA and the
Mutuelles
AXA Immobiller France 100% by AXA
C-21
<PAGE>
OTHER AXA BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
C-22
<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 41.8% interest in
Donaldson, Lufkin & Jenrette, Inc. and Equitable Holdings, LLC's
34.4% 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.; and (d) as noted for certain subsidiaries of Alliance Capital
Management Corp. of Delaware, Inc.
4. 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 Hudson River Trust
EQ Advisors Trust
Separate Accounts
5. This chart was last revised on March 15, 1999.
C-23
<PAGE>
Item 27. Number of Contractowners
------------------------
As of February 26, 1999, there were 75,039 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 for its Separate Account A, Separate Account
No. 301, Separate Account I and Separate Account FP. EQ
Financial's principal business address is 1290 Avenue of
the Americas, NY, NY 10104.
(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 1290 Avenue of the
Americas, New York, NY 10104 and the AMA Building, 135 West 50th
Street, New York, NY 10020 and 200 Plaza Drive Secaucus, NJ
07096.
Item 31. Management Services
-------------------
C-24
<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. This representation applies
to all contracts sold pursuant to this Registration
Statement, including those sold on the terms
specifically described in the prospectuses contained
herein, or any variations therein, based on supplements,
endorsements, data pages or riders to any contract, or
prospectus, or otherwise.
Although 403(b) Contracts are not currently offered under this
Registration Statement, they may be in the future. In such event, the Registrant
hereby represents that it intends to rely 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 will comply
with the provisions of paragraph (1)-(4) of that letter.
C-25
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Registrant certifies that it meets the requirements of
Securities Act Rule 485(b) for effectiveness of this amendment to the
Registration Statement and has caused this amendment to the Registration
Statement to be signed on its behalf, in the City and State of New York, on the
30th day of April, 1999.
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 Depositor has caused this amendment to the Registration
Statement to be signed on its behalf, in the City and State of New York, on the
30th day of April, 1998.
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:
Michael Hegarty President, Chief Operating Officer and
Director
Edward D. Miller Chairman of the Board, Chief Executive
Officer and Director
PRINCIPAL FINANCIAL OFFICER:
Stanley B. Tulin Vice Chairman of the Board, Chief
Financial Officer and Director
PRINCIPAL ACCOUNTING OFFICER:
/s/ Alvin H. Fenichel Senior Vice President and Controller
- ---------------------
Alvin H. Fenichel
April 30, 1998
DIRECTORS:
Francoise Colloc'h Donald J. Greene George T. Lowy
Henri de Castries John T. Hartley Edward D. Miller
Joseph L. Dionne John H.F. Haskell, Jr. Didier Pineau-Valencienne
Denis Duverne Michael Hegarty George J. Sella, Jr.
Jean-Rene Fourtou Mary R. (Nina) Henderson Peter J. Tobin
Norman C. Francis W. Edwin Jarmain Stanley B. Tulin
Dave H. Williams
By: /s/ Maureen K. Wolfson
--------------------------
Maureen K. Wolfson
Attorney-in-Fact
April 30, 1998
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. TAG VALUE
- ----------- ---------
10(a) Consent of PricewaterhouseCoopers LLP. EX-99.10a
10(b) Powers of Attorney. EX-99.10b
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 11 to the Registration
Statement No. 33-58950 on Form N-4 (the "Registration Statement") of (1) our
report dated February 8, 1999 relating to the financial statements of Separate
Account A of The Equitable Life Assurance Society of the United States for the
year ended December 31, 1998, and (2) our report dated February 8, 1999 relating
to the consolidated financial statements of The Equitable Life Assurance Society
of the United States for the year ended December 31, 1998, 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 references to us under the
heading "Custodian and Independent Accountants" in the Statement of Additional
Information and "About our Independent Accountants" in the prospectus.
PricewaterhouseCoopers LLP
New York, New York
April 30, 1999
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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 16th day
of February, 1999.
/s/ Henri de Castries
---------------------
Henri de Castries
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 10th day
of February, 1999.
/s/ Joseph L. Dionne
--------------------
Joseph L. Dionne
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 6th day
of February, 1999.
/s/ Denis Duverne
-----------------
Denis Duverne
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 18th day
of February, 1999.
/s/ F. COLLOC'H
---------------
F. COLLOC'H
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 8th day
of February, 1999.
/s/ Jean Rene Fourtou
---------------------
Jean Rene Fourtou
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 8th day
of February, 1999.
/s/ Norman C. Francis
---------------------
Norman C. Francis
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 15th day
of February, 1999.
/s/ Donald J. Greene
--------------------
Donald J. Greene
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 11th day
of February, 1999.
/s/ John T. Hartley
-------------------
John T. Hartley
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 10th day
of February, 1999.
/s/ John H.F. Haskell, Jr.
--------------------------
John H.F. Haskell, Jr.
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 10th day
of February, 1999.
/s/ Michael Hegarty
-------------------
Michael Hegarty
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 10th day
of February, 1999.
/s/ Mary R. (Nina) Henderson
----------------------------
Mary R. (Nina) Henderson
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 5th day
of February, 1999.
/s/ W. Edwin Jarmain
--------------------
W. Edwin Jarmain
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 5th day
of February, 1999.
/s/ George T. Lowy
------------------
George T. Lowy
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 10th day
of February, 1999.
/s/ Edward D. Miller
--------------------
Edward D. Miller
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 22th day
of February, 1999.
/s/ Didier Pineau Valencienne
-----------------------------
Didier Pineau Valencienne
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 5th day
of February, 1999.
/s/ George J. Sella, Jr.
------------------------
George J. Sella, Jr.
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 25th day
of March, 1999.
/s/ Peter J. Tobin
------------------
Peter J. Tobin
58017/36
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 10th day
of February, 1999.
/s/ Stanley B. Tulin
--------------------
Stanley B. Tulin
59838v2
<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 Jerome S. Golden, Mark A. Hug, James D. Goodwin, Pauline Sherman,
Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary
P. Breen 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, 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 hand this 7th day
of February, 1999.
/s/ Dave H. Williams
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Dave H. Williams
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